OFFICIAL DOCUMENTS CREDIT NUMBER 6331-CV Financing Agreement (Education and Skills Development Enhancement Project) between REPUBLIC OF CABO VERDE and INTERNATIONAL DEVELOPMENT ASSOCIATION CREDIT NUMBER 6331-CV FINANCING AGREEMENT AGREEMENT dated as of the Signature Date between REPUBLIC OF CABO VERDE ("Recipient") and INTERNATIONAL DEVELOPMENT ASSOCIATION ("Association"). The Recipient and the Association hereby agree as follows: ARTICLE I - GENERAL CONDITIONS; DEFINITIONS 1.01. The General Conditions (as defined in the Appendix to this Agreement) apply to and form part of this Agreement. 1.02. Unless the context requires otherwise, the capitalized terms used in this Agreement have the meanings ascribed to them in the General Conditions or in the Appendix to this Agreement. ARTICLE II - FINANCING 2.01. The Association agrees to extend to the Recipient, on the terms and conditions set forth or referred to in this Agreement a credit in an amount equivalent to seven million two hundred thousand Special Drawing Rights (SDR 7,200,000) (variously, "Credit" and "Financing"), to assist in financing the project described in Schedule I to this Agreement ("Project"). 2.02. The Recipient may withdraw the proceeds of the Financing in accordance with Section III of Schedule 2 to this Agreement. 2.03. The Maximum Commitment Charge Rate is one-half of one percent (1/2 of 1%) per annum on the Unwithdrawn Financing Balance. 2.04. The Service Charge is three-fourths of one percent (3/4 of 1%) per annum on the Withdrawn Credit Balance. 2.05. The Payment Dates are June 15 and December 15 in each year. 2.06. The principal amount of the Credit shall be repaid in accordance with the repayment schedule set forth in Schedule 3 to this Agreement. 2.07. The Payment Currency is Dollar. -2- ARTICLE III - PROJECT 3.01. The Recipient declares its commitment to the objective of the Project. To this end, the Recipient shall: (i) carry out the overall coordination and fiduciary aspects of the Project, through its Ministry of Finance (UGPE); (ii) carry out the implementation of the technical aspects of Parts 1 and 3.1 of the Project, through its Ministry of Education; (iii) carry out the implementation of the technical aspects of Part 3.2 of the Project, through its Secretariat of State for Innovation and Vocational Training of the Ministry of Finance; and, (iv) carry out the implementation of the technical aspects of Part 2 of the Project, through the Fund, all in accordance with the provisions of Article V of the General Conditions and Schedule 2 to this Agreement. ARTICLE IV - EFFECTIVENESS; TERMINATION 4.01. The Additional Conditions of Effectiveness consist of: (a) the adoption by the Recipient of a Project Implementation Manual in form and substance satisfactory to the Association; and (b) the adoption by the Recipient of a Fund Procedures. Manual, in form and substance satisfactory to the Association. 4.02. The Effectiveness Deadline is the date ninety (90) days after the Signature Date. 4.03. For purposes of Section 10.05 (b) of the General Conditions, the date on which the obligations of the Recipient under this Agreement (other than those providing for payment obligations) shall terminate is twenty (20) years after the Signature Date. ARTICLE V - REPRESENTATIVE; ADDRESSES 5.01. The Recipient's Representative is its minister responsible for finance. 5.02. For purposes of Section 11.01 of the General Conditions: (a) the Recipient's address is: Minister of Finance Ministry of Finance Avenida Amilcar Cabral C.P. 30, Praia Cabo Verde; and -3- (b) the Recipient's Electronic Address is: E-mail: Carla.Cruz(mf gov.cy or Hernani.trigueiros@mf.gov.cv 5.03. For purposes of Section 11.01 of the General Conditions: (a) the Association's address is: International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America; and (b) the Association's Electronic Address is: Telex: Facsimile: 248423 (MCI) 1-202-477-6391 -4- AGREED as of the Signature Date. REPUBLIC OF CABO VERDE By Authorized Representative Name: e V§, Title: _ _ _ it-ArQi Date: INTERNATIONAL DEVELOPMENT ASSOCIATION By ( Auth rized Representative Name: ZOu L Title: C(0 M,ye) / Date: 249' K cpo? -5- SCHEDULE1 Project Description The objective of the Project is to strengthen foundational skills in education and improve the relevance of training programs to the Recipient's strategic development plan. The Project consists of the following parts: Part 1: Support to the Basic Education Reform Support to the implementation of selected priority areas of the Recipient's Education Strategy Plan through, inter alia: (a) revision of curriculum and pedagogical practices, in line with the basic education reform; (b) establishment and operationalization of a student assessment system; (c) support to basic education teachers; and (d) empowering actors of the education system with more autonomy and responsibility. Part 2: Support to Demand-Based Training Financing Schemes 2.1. Provision of Skills Development Grants to Eligible Beneficiaries to support the elaboration and delivery of training programs for the development of priority skills to service the tourism and ICT sectors. 2.2. Provision of Scholarships to Eligible Individuals to participate in selected training programs. Part 3: Support to the Education and Skills Development Reforms and Project Management 3.1. Support to the Recipient's Ministry of Education in the implementation of education sector reform, including, inter alia: (a) development of specific training modules to build socioemotional skills for grades 7 and 8 students; (b) support to the secondary education reform; (c) elaboration of an in-service teacher training and professional development strategy; and (d) capacity building for the planning, implementation and monitoring of the school infrastructure plan. 3.2. Support to: (a) the restructuring and operationalization of the Fund in order to implement activities under Part 2, including inter alia through the adoption of a sustainable model for student financing in terms and conditions acceptable to the Association; and (b) the elaboration of a skills development strategy including inter alia: (i) the design of a sustainable financing scheme for skills development, (ii) support the Cabo Verde Bolsa Global program; and (iii) the development of a human capital projection model. -6- 3.3. Provision of support for Project management and implementation, including for, inter alia, coordination, procurement, financial management, external audit, independent verification and monitoring and evaluation activities and financing of Incremental Operating Costs. -7- SCHEDULE 2 Project Execution Section I. Implementation Arran2ements A. Institutional Arrangements Unidade de Gestdo de Projetos Especiais (UGPE) 1. The Recipient shall maintain, throughout Project implementation, the UGPE within the Ministry of Finance, composed of key staff, with qualifications and under terms of reference acceptable to the Association, including inter alia, one Project manager, one dedicated accountant, one procurement officer, one financial management specialist and any other specialists as may have been agreed with the Association, as further detailed in the PIM. The UGPE shall be responsible for overall Project coordination, including, inter alia, ensuring coordination with key stakeholders, managing the Project's fiduciary and, independent verification aspects, and monitoring and evaluation of Project implementation, as further detailed in the PIM. 2. Without limitation to the above, the Recipient shall no later than three (3) months after the Effective Date: (a) have installed and customized a computerized accounting software, satisfactory to the Association; (b) have appointed a dedicated accountant referred to in paragraph I above; and, (c) sign an agreement with an external auditor and an independent verification agent, under terms and substance satisfactory to the Association, for purposes of Section II.B. 1 of Schedule 2. Ministry of Education 3. The Recipient shall ensure that, throughout Project implementation, its Ministry of Education has adequate resources and staffing, with qualifications and experience acceptable to the Association, to carry out its responsibilities under Parts I and 3.1. of the Project, as further detailed in the PIM. 4. The Recipient, through its Ministry of Education, shall be responsible for the implementation of the technical aspects of Parts 1 and 3.1. of the Project. -8- Fund 5. The Recipient shall ensure that the Fund, restructured in accordance with Part 3.2 of the Project, is maintained, throughout Project implementation, with a structure, functions, responsibilities, and staffing acceptable to the Association, and in accordance with the Recipient's applicable laws. 6. The Recipient, through the Fund, shall be responsible for the implementation of the technical aspects of Part 2 of the Project, as further detailed in the PIM and the Fund Procedures Manual. Ministry of Finance 7. The Recipient, through its Secretariat of State for Innovation and Vocational Training of the Ministry of Finance, shall be responsible for the implementation of the technical aspects of Part 3.2 of the Project. Feedback mechanism 8. The Recipient shall maintain, throughout Project implementation, and publicize the availability of a feedback mechanism, in form and substance satisfactory to the Association, to receive feedback and hear and determine fairly and in good faith all complaints raised in relation to the Project, and take all measures necessary to implement the determinations made by such mechanism in a manner satisfactory to the Association. B. Project Implementation Manual (PIM) and Fund Procedures Manual 1. The Recipient shall carry out the Project in accordance with the requirements set forth in the PIM, which shall include detailed guidelines, methods and procedures for the implementation of the Project, including: (i) administration and coordination; (ii) budget and budgetary control; (iii) disbursement procedures and banking arrangements; (iv) financial, procurement and accounting procedures; (v) internal control procedures; (vi) accounting system and transaction records; (vii) reporting requirements; (viii) external audit and independent verification arrangements; (ix) corruption and fraud mitigation measures; (x) detailed procedures, eligibility, selection criteria and flow of funds for Scholarships and Skills Development Grants under Part 2; and (xi) such other arrangements and procedures as shall be required for the effective implementation of the Project. 2. The Recipient shall carry out the Project in accordance with the Fund Procedures Manual, which shall include detailed guidelines, activities, procedures (including detailed procedures, eligibility, and selection criteria for Scholarships and Skills -9- Development Grants), responsibilities, budgeting (costs and fees, if any), procurement, and reporting for the implementation of Part 2 of the Project. 3. The Recipient shall not assign, amend, abrogate or waive any provision of the PIM or the Fund Procedures Manual without prior approval of the Association. In case of any conflict between the terms of the PIM or the Fund Procedures Manual and those of this Agreement, the terms of this Agreement shall prevail. C. Technical Assistance 1. The Recipient shall ensure, that: (a) all consultancies related to technical assistance, design and capacity building under the Project, the application of whose results could have environmental, social and health and safety implications, shall only be undertaken pursuant to terms of reference reviewed and found satisfactory by the Association; and (b) such terms of reference shall require the technical assistance, design and capacity building activities to take into account the requirements of the applicable Safeguards Policies and EHS Guidelines. Section II. Project Monitorin2, Reportin2 and Evaluation A. The Recipient shall furnish to the Association each Project Report not later than forty-five (45) days after the end of each calendar semester, covering the calendar semester. B. DLI Audit, DLI Progress Report, DLI Audit Report 1. In implementing Part 1 of the Project, the Recipient shall: (a) no later than thirty (30) days after the end of each calendar semester, or by such later date as agreed with the Association, prepare and furnish to the Association an interim unaudited DLI Progress Report satisfactory to the Association; (b) no later than sixty (60) days after the end of each calendar semester, or by such later date as agreed with the Association: (i) carry out an independent DLI verification which shall, inter alia, certify the extent to which the DLIs for the pertinent calendar semester covered by the DLI Audit have been met and the eligibility of the EEPs; and (ii) prepare and furnish to the Association a complete DLI Audit Report satisfactory to the Association, including all the findings and results from the DLI Audit, as well as any additional certifications from the DLI Audit as the Association may reasonably request. -10- Section III. Withdrawal of the Proceeds of the Financing A. General Without limitation upon the provisions of Article II of the General Conditions and in accordance with the Disbursement and Financial Information Letter, the Recipient may withdraw the proceeds of the Financing to finance Eligible Expenditures in the amount allocated and, if applicable, up to the percentage set forth against each Category of the following table: Amount of the Percentage of Credit Allocated Expenditures to be Category (expressed in SDR) Financed (inclusive of Taxes) (1) EEPs under Part I of the 4,610,000 100% up to the DLI Project amount in Schedule 4 of this Agreement (2) (a) Skills Development Grants 720,000 100% under Part 2.1 of the Project (b) Scholarships under Part 2.2 of the Project 720,000 (3) Goods, non-consulting 1,150,000 100% services, consulting services, training and Incremental Operating Costs under Part 3 of the Project TOTAL AMOUNT 7,200,000 B. Withdrawal Conditions; Withdrawal Period 1. Notwithstanding the provisions of Part A above, no withdrawal shall be made for: (a) payments made prior to the Signature Date; (b) payments under Category (1) with respect to each DLI met and for which a withdrawal request has been submitted, unless the Recipient has furnished evidence satisfactory to the Association, and following the requirements set forth in the PIM, that payment for EEP have been made -11- by the Recipient in accordance with the Recipient's applicable legal framework and the PIM; and, (c) payments under Category (2)(b), unless Recipient and the Fund has implemented Part 3.2(b)(i) of the Project, in form and substance satisfactory to the Association. 2. Without limitation to the provisions set forth in Section III.B. 1. of this Schedule, each withdrawal under Category (1) shall be made in the amount specified in the "DLI Amount" row of table in the Schedule 4 to this Agreement, subject to submission to the Association of evidence acceptable to the Association in its form and content and following the requirements set forth in the PIM, confirming the achievement of the respective DLI (and for which a withdrawal request has been submitted). 3. In connection with the foregoing, if the Association determines, based on the evidence referred to in Section III.B. 1(b) above that a DLI has not been met or has partially been met, the proportion of the corresponding DLI Amount shall be reduced in proportion to the respective degree of DLI Achievement in accordance with the formula set forth in the PIM, and any unwithdrawn balance of the withdrawal request for said Year in respect of such unmet or partially met DLI shall remain available for the subsequent withdrawal, or may be cancelled. 4. Notwithstanding the foregoing, if the Association determines, at any time and at its sole discretion, that any portion of the amounts disbursed by the Recipient under Category (1) was made for reimbursement of expenditures that are not eligible under the EEPs or not in compliance with the provisions of paragraphs 1(b) and paragraph 2 of this Section, the Recipient shall promptly refund any such amount to the Association as the Association shall specify by notice to the Recipient. 5. The Closing Date is January 31, 2023. -12- SCHEDULE 3 Repayment Schedule Principal Amount of the Credit repayable Date Payment Due (expressed as a percentage) * On each June 15 and December 15: commencing December 15, 2028, to and 1% including June 15, 2038 Commencing December 15, 2038, to and 2% including June 15, 2058 * The percentages represent the percentage of the principal amount of the Credit to be repaid, except as the Association may otherwise specify pursuant to Section 3.05 (b) of the General Conditions. -13- SCHEDULE 4 Disbursement Linked Indicators Table for Category 1 DLI Description, Targets, Verification Baseline FY 2019 FY 2020 FY 2021 FY 2022 FY Protocol, Disbursement Formula and 2023 Amount DLI 1 Target Materials for Materials for Materials for grades 2 and 6 grades 3 and 7 grades 4 and 8 Teaching materials No available in 22 available in 22 available in 22 No No for grades 1-8 in delegations delegations delegations Math, Portuguese, Science and Verification Independent Independent Independent Teaching materials Protocol verification verification verification for Foreign agent and agent and agent and Languages for Ministry of Ministry of Ministry of grades 5-8 Education Education Education developed and confirm all basic confirm all basic confirm all basic distributed, as per education education education the new schools in 22 schools in 22 schools in 22 curriculum and the delegations have delegations have delegations have PIM received said received said received said materials. materials. materials. Disbursement $45,000 per $31,500 per $31,500 per Formula delegation delegation delegation disbursed upon disbursed upon disbursed upon verified verified verified -14- DLI Description, Targets, Verification Baseline FY 2019 FY 2020 FY 2021 FY 2022 FY Protocol, Disbursement Formula and 2023 Amount availability in all availability in all availability in all basic education basic education basic education schools in 21 schools in 21 schools in 21 delegations of delegations of delegations of said materials. said materials. said materials. $55,000 per $38,500 per $38,500 per delegation delegation delegation disbursed upon disbursed upon disbursed upon availability of verified verified said materials in availability of availability of the 22nd said materials in said materials in delegation 22nd delegation. 22nd delegation. DLI Amount US$1.0 million US$0.7 million US$0.7 million 0 0 expressed in SDR DLI 2 Target Operationalizati Disaggregated on of student results of National No assessment unit No learning No No Standardized in the Ministry assessment by Learning of Education, school, and Assessment with an guidelines to Conducted in organigram, improve Primary Schools, terms of teaching and reference, learning -15- DLI Description, Targets, Verification Baseline FY 2019 FY 2020 FY 2021 FY 2022 FY Protocol, Disbursement Formula and 2023 Amount as defined in the budget, work communicated to PIM program and all schools. staff in place. Verification Independent (a) Independent Protocol verification verification agent confirms agent reviews that (a) revised learning legal texts assessment and related to the analysis of Ministry of disaggregated Education results. (b) organigram Independent include verification establishment of agent and said unit, (b) Ministry of terms of Education reference for confirm through said unit and spot checks in work program selected basic have been education adopted by schools (sample Ministry of to be agreed with Education to the the Association), satisfaction of that the Association, disaggregated (c) a budget has results have been been allocated to disseminated. -16- DLI Description, Targets, Verification Baseline FY 2019 FY 2020 FY 2021 FY 2022 FY Protocol, Disbursement Formula and 2023 Amount said unit for FY and that schools 2019, and (d) have received key staff of said guidelines on the unit have been use of the appointed, assessment results to improve teaching and learning. Disbursement .100% of DLI 100% of DLI Formula amount amount disbursed upon disbursed upon verified verified establishment of dissemination of student results to assessment unit schools. DLI Amount US$0.5 million 0 US$1.0 million 0 expressed in SDR DLI 3 Target New 450 grades 1 and 900 grades 2 and 900 grades 3 and 900 grades 4 and curriculum 5 primary 6 primary 7 primary 8 primary Number of and teacher trained teacher trained teacher trained teacher trained No teachers trained in professional new curriculum, as development defined in the PIM programs created -17- DLI Description, Targets, Verification Baseline FY 2019 FY 2020 FY 2021 FY 2022 FY Protocol, Disbursement Formula and 2023 Amount Verification Independent Independent Independent Independent Protocol verification verification verification verification agent to confirm agent to confirm agent to confirm agent to confirm the professional the professional the professional the professional development development development development program for the program for the program for the program for the new curriculum new curriculum new curriculum new curriculum and ensure that it and ensure that it and ensure that it and ensure that it clearly identifies clearly identifies clearly identifies clearly identifies the scope, the scope, the scope, the scope, content, delivery content, delivery content, delivery content, delivery methods, and methods, and methods, and methods, and outcomes, as outcomes, as outcomes, as outcomes, as satisfactory to satisfactory to satisfactory to satisfactory to the Association. the Association, the Association, the Association. Independent Independent Independent Independent verification verification verification verification agent to confirm agent to confirm agent to confirm agent to confirm the number of the number of the number of the number of teachers trained teachers trained teachers trained teachers trained on the new on the new on the new on the new curriculum curriculum curriculum curriculum through the through the through the through the evaluation evaluation evaluation evaluation reports prepared reports prepared reports prepared reports prepared by the by the by the by the -18- DLI Description, Targets, Verification Baseline FY 2019 FY 2020 FY 2021 FY 2022 FY Protocol, Disbursement Formula and 2023 Amount delegations at delegations at delegations at delegations at the end of the end of the end of the end of training sessions training sessions training sessions training sessions and consolidated and consolidated and consolidated and consolidated by the Ministry by the Ministry by the Ministry by the Ministry of Education. of Education. of Education. of Education. Independent Independent Independent Independent verification verification verification verification agent and agent and agent and agent and Ministry of Ministry of Ministry of Ministry of Education Education Education Education confirm through confirm through confirm through confirm through spot checks in spot checks in spot checks in spot checks in selected basic selected basic selected basic selected basic education education education education schools (sample schools (sample schools (sample schools (sample to be agreed with to be agreed with to be agreed with to be agreed with the Association), the Association), the Association), the Association), that all teachers that all teachers that all teachers that all teachers of Grades I and of Grades 2 and of Grades 3 and of Grades 4 and 5 have been 6 have been 7 have been 8 have been trained in the trained in the trained in the trained in the new curriculum. new curriculum. new curriculum. new curriculum. Disbursement DLI amount DLI amount DLI amount DLI amount Formula disbursed= disbursed= disbursed=(Num disbursed=(Num (Number of (Number of ber of Grades 3 ber of Grades 4 -19- DLI Description, Targets, Verification Baseline FY 2019 FY 2020 FY 2021 FY 2022 FY Protocol, Disbursement Formula and 2023 Amount Grades 1 and 5 Grades 2 and 6 and 7 teachers and 8 teachers teachers teachers trained/900)*0.4 trained/900)*0.4 trained/450)*0.3 trained/900)*0.4 up to a up to a up to a up to a maximum of maximum of maximum of maximum of US$0.4 m US$0.4 m US$0.3 m US$0.4 m DLI Amount US$0.3 million US$0.4 million US$0.4 million US$0.4 million expressed in SDR DLI 4 Target No Design of Allocation of Sharing of implementation- budget based on evaluation of Results-based ready pilot design, pilot report and No management instruments for a with signed review by system piloted in results-based performance independent four pilot management contracts and verification delegations and pilot, including budget allocated agent identified schools, manual, template to identified as defined in the performance schools PIM contracts and identified schools for piloting Verification Independent Independent Independent Protocol verification verification verification agent to confirm agent to confirm agent to confirm that said pilot that (a) that said has been performance evaluation report -20- DLI Description, Targets, Verification Baseline FY 2019 FY 2020 FY 2021 FY 2022 FY Protocol, Disbursement Formula and 2023 Amount designed and is contracts and has been ready to be school conducted by the implemented performance Ministry of through: (a) a plans have been Education and to report, including signed, and (b) review the description of corresponding report. the pilot, budget has been implementation allocated to the plan, and related four pilot costs have been delegations and produced; (b) identified instruments for schools. pilot implementation, including an operational manual, template for performance contracts with delegations and school development plans have been produced; and (c) all schools for the pilot have been identified -21- DLI Description, Targets, Verification Baseline FY 2019 FY 2020 FY 2021 FY 2022 FY Protocol, Disbursement Formula and 2023 Amount and their relevant staff trained. Disbursement 100% of DLI 100% of DLI 100% of DLI Formula amount amount amount disbursed upon disbursed upon disbursed upon verified design verified verified of said signature of dissemination of instruments and performance said evaluation implementation contracts and report. of training for allocation of the the pilot. budget in the four pilot delegations. DLI Amount US$0.25 million US$0.5 million 0 US$0.25 million expressed in SDR TOTAL US$6.4million SDR 4,610,000 -22- APPENDIX Section I. Definitions 1. "Anti-Corruption Guidelines" means, for purposes of paragraph 5 of the Appendix to the General Conditions, the "Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants", dated October 15, 2006, and revised in January 2011 and as of July 1, 2016. 2. "Category" means a category set forth in the table in Section III.A of Schedule 2 to this Agreement. 3. "Disbursement Linked Indicator" or "DLI" means a set of indicators specified in Schedule 4 to this Agreement and in the PIM (as hereinafter defined). "Disbursement Linked Indicators" or "DLIs" means the sets of indicators specified in Schedule 4 to this Agreement and in the PIM taken collectively. 4. "EEPs" means a set of defined expenditures for salaries and Incremental Operating Costs, acceptable to the Association, incurred by the Recipient in connection to Part 1 of the Project. 5. "EHS Guidelines" means the World Bank Group Environmental, Health and Safety Guidelines published on www.ifc.org/ehsguidelines, as said guidelines are updated from time to time. 6. "Eligible Beneficiaries" means public and private training providers eligible to receive Skills Development Grants under Part 2.1 of the Project, following selection procedures set out in the PIM and the Operational Manual. "Eligible Beneficiary" means any of the Eligible Beneficiaries taken separately. 7. "Eligible Individuals" means those students receiving Scholarships under Part 2.2 of the Project. 8. "FY" means the calendar year of the Recipient. 9. "Fund" means the "Fund for the Promotion of Employment and Training Skills Development Fund" (Fundo de PromoVdo do Emprego e da FormaVdo), a fund without legal personality ("fundo autonomo") within the Recipient's Ministry of Finance, established pursuant to Regulatory Decree No. 4/2012, published in the Recipient's Official Gazette dated February 29, 2012, and its restructured successor thereto, as described in Part 3.2 and regulated by Law 109/VIII/2016 establishing the legal framework of autonomous funds, published in the Recipient's Official Gazette I Series, No 5, dated January 28, 2016. -23- 10. "General Conditions" means the "International Development Association General Conditions for IDA Financing, Investment Project Financing", dated July 14, 2017. 11. "Incremental Operating Costs" means the reasonable incremental costs, as shall have been approved by the Association, incurred by the Ministry of Finance and Ministry of Education, on account of Project administration, implementation, monitoring and supervision consisting of vehicle operation and maintenance, communication and insurance costs, banking charges, office rental expenses, freight charges, office (and office equipment) maintenance, utilities, printing, non- durable goods, travel cost and per diem for Project staff for travel linked to the implementation, monitoring and supervision of the Project (but excluding consultants' services and salaries of officials of the Recipient's civil service). 12. "Fund Procedures Manual" means the manual of procedures to be adopted by the Recipient for the implementation of Part 2 of the Project, as described in Schedule 2 Section I.B.2 of this Agreement, as the same may be amended from time to time with the prior written agreement of the Association. 13. "PIM" means the manual to be adopted by the Recipient for the implementation of the Project, as described in Schedule 2 Section I.B of this Agreement, as the same may be amended from time to time with the prior written agreement of the Association. 14. "Procurement Regulations" means, for purposes of paragraph 87 of the Appendix to the General Conditions, the "World Bank Procurement Regulations for IPF Borrowers", dated July 2016, revised November 2017. 15. "Safeguard Policies" means, the Operational Policies (Ops) and Bank Procedures (BPs) of the Bank, namely OP/BP 4.01 (Environmental Assessment), OP/BP 4.04 (Natural Habitats), OP/BP 4.09 (Pest Management), OP/BP 4.10 (Indigenous Peoples), OP/BP 4.11 (Physical Cultural Resources), OP/BP 4.12 (Involuntary Resettlement), OP/BP 4.36 (Forests), and OP/BP 4.37 (Safety of Dams); they can be found at https://policies.worldbank.org. 16. "Scholarships" means financing provided directly or indirectly to Eligible Individuals to cover training fees and other related costs including living costs during the training period, for purposes of Part 2.2 of the Project. 17. "Signature Date" means the later of the two dates on which the Recipient and the Association signed this Agreement and such definition applies to all references to "the date of the Financing Agreement" in the General Conditions. 18. "Skills Development Grants" or "Grants" means grants awarded to public and private training providers to support the elaboration and delivery of training -24- programs for priority job profiles, covering costs related to small equipment, consumable and consultancy services, for purposes of Part 2.1. of the Project. 19. "UGPE" means Unidade de Gestao de Projetos Especiais, a unit established within the Ministry of Finance pursuant to Resolugao 81/2017 of July 28, 2017, and referred to in Section I.A.2 of Schedule 2 to this Agreement.