Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698842082172.pdf (Sierra Leone)
Frn 36 !
CREDIT n-UMBER 6078-SL GRANT NUMBER 535O.SL Financing Agreement (Additional Financing for the Public Pinancial Managcment Improvement and Consolidation Project and Amcndments to the Original Financing Agrcement) bctrvecn REPT]BI,IC OF SIERRA LEONE and INTERNATIONAL DEVELOPMENT ASSOCIATION Datcd -Jrr1 ZT ,20t7 {r \ t,,7 I I l'zll :ri {fn a ( ( CREDIT NUMBER 6O78.SL GRANT NUMBER 535O.SL FINANCINC AGREEMENT ?- + fu t l AGREEMENT dated , 20t 7, entered inro between the REPUBLIC OF SIERRA LEONE ("Recipient") and the INTERNATIONAL DEVELOPMENT ASSOCIATION ("Association") for the purpose of providing additional financing for activities related to the Original Proj ect (as defined in the Appendix to this Agreement).
The Recipient and the Association hereby agree as follorvs: t.0 t t,02 2.01 2.02 2.03 ARTICLE I - GENERAL CONDITIONS; DEFINITIONS The Genelal Conditions (as defined in the Appendix to this Agreement) constitute an integml part ofthis Agreement.

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.
AIITICLE ll - FII-ANCING The Association agrees to extend to the Recipient, on the terms and conditions set forth or refered to in this Agreement, a credit in an amount equivalent to seven rnillion three hundred thousand Special Drarving Righr (SDR 7.300.000) (variously, "Credit" and "Financing"), to assist in financing the project desoibed in Schedule I to this Agreement ("Project").

The Recipient may withdraw the proceeds of the Financing in accordance with Section tV of Schedule 2 to this Ageement.
The Maxirnum Commitment Charge Rate payable by the Recipient on the Unwithdrawn Financing Balance shall be one-halfofone percent (l /2 of lo/o) per annum.

2.04.

The Service Charge payable by the Recipient on the Withdmwn Credit Balance shall be equal to three-fourths ofone percent (3/4 of l%) per annum.

2.05.

The Payment Dates are March l5 and September l5 in each year.

2.06.
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.

II-y -,) ARTICLE III - PROJECT i.01.

The Recipient declares its commitment to the objectives ofthe Projecl.

To this end, the Recipient through the Ministry of Finance and Economic Development ("lr4oFED") shall carry out lhe Project in accordance with the provisions of Article IV ofthe Ceneral Conditions.

3.02.
3.02.

Without limitation upon the provisions ol Section 3.01 of this Agreement, and except as the Recipient and the Associalion shall otherwise agree, the Recipient shall ensure that the Project is canied out in accordance wilh the provisions of Schedule 2 to this Agreement.

ARTICLE IV - REMEDIES OF THE ASSOCIATION 4.0 I .


The Additional Events of Suspension consist of the following: (a) (b) as a resull ofevents which have occurred after the date ofthis Agreement, a situation has arisen which shall make it improbable that the Program, or a significant part of it, rvill be carried out; and the AfDB has exercised any remedies under the Co-financing Agreement.
or agreed with the Recipient on any actions, that could materially and adversely affect the ability of the Recipient to: (i) perform its obligations under this Agreement; and./or (ii) successfully carry out the Project.

ARTICLE IV- EFFECTIVENESS; TERMINATION 5.01.

The Addilional Condition ofEffectiveness consist ofthe following: 5.02 5.03.

(a) The Recipient has revised and adopted the Project lmplementation Manual in accordance rvith paragraph B. I of Schedule 2 to this Agreement.
The Effectiveness Deadline is the date ninety (90) days after the date of this Agreement.

For purposes ofSection 8.05(b) ofthe General Conditions, the date on which the obligations ofthe Recipient under this Agreement (other than lhose providing for payment obligations) shall terminate is lwenty years aftff the date of this Agreement.

ARTICLE V _ REPRESENTATIVE; ADDRESSES 6.01.

The Recipient's Representative is its minister responsible for finance.

N fuhr 6.02.
N fuhr 6.02.

The Rccipicnt's Address is Ministry ofFinance and Economic Developmenl Treasury Building George Street Freetown, Siena Leone Facsimile: 232 22 228 472 6.0i.

The Association's Addless is International Development Associalion l8l8 H Street, N.W.

Washington, D.C.20433 United States of America Cable TNDEVAS Washington, D.C.
Telex: Facsimile: 248423 (MCD t-202477-6391 \\K Ny -4- AGREED at Fae€To dav and vear first above written- f.t N =fe<(A__t-er'*.E_, as of the REPUBLIC OF SIERRA LEONE By: \W"V, Authorized Representative Name: fiaHolu L. l+(6fr) Tirle: n I }Itsr6( INTERNATIONAL DEVELOPMENT ASSOCIATION By: Represenlative Name: ?

gW{L WULU Title SCHEDULE I Project Description The objective ofthe Project is to improve the public financial managernent system and accountability in the use ofgovernment finance.
The Project consists ofthe following pans: Part l. Strelgthening Budgct.

Finsncial.

Procurement and Taxation Systems Carrying out of a program of actions designed to improve the Recipient's overall budget planning at the national and local levels, and strengthen systems and procedures for accounting, reporting, public procurement and revenue management, in particular: (a) Budgel Pldnning, Credibilily and Framework Formulalion.
Strengthening budgetary planning at the national and Iocal levels, lhrough, inter qlia: (i) (ii) Strengthening the institutional and technical capacities of the Budget Bureau on: (A) the GRP v7 budget execution processes and functions to generate budget repons for nunagement reporting and end-user reporting; planning, implementation, and monitoring ofactivity-based budgeting; and (B) new planning and execution modules of IFMIS performance budgeting software.
Strengthening the framework and fonnulation for medium term budgeting, including, inter qlia: (A) migration to a CFS20|4 compliant budget classification; (B) recalibrating the Eudget Bureau's classification systems; developing and implementing a training program for MDAs and Local Councils; (C) facilitating the reconfiguration of the budget module; and (D) integration of budget planning and execution in an integrated IFMIS.
(iii) Strengthening budgetary planning through: (A) configuration, testing, and quality review of the GRP v7 appropriations and budget modules; (B) integration of GRI' contract management sub-module with appropriations.

budgeting, and other general ledge functionalities; (C) introduction of contract management and managernent of multi-year commitrnent control and arrears; and (D) decentralization ofbudget execurlon processes by lvlDAs in enhancing timelines and effectiveness in budget execution.
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ser!^les ,(rosr,rpe lecruqcal Jo uorsr^ord eql q8noJql lle tuogeculsselJ oEpnq jo uoltuzluouueq 'oqD nrut '8ulpnlrur 'Surla8pnq uual tunlpaui roJ sllcunoC lsco.I Jo ,(ltcedsc eqt SuluaqlEuurg (nl) ^\ou -9 7 (iii) Strengthen financial management capacity of local councils through: (A) upgrade of PETRA software to perform "Procure to Pay" functions.
including commitment control; (B) revamp existing PETRA infrastructure; (C) scaling up ofcadastral system for enhanced tevenue mobilization; (D) development of property cadaster management manual and provision of tmining to valuators, chief administrators, and Valuation Committee members; (E) provision of training to build the capacity of local councils in the collection and accounting for revenues; (F) training in the use of the citizens' budget template; (G) training in collection and accounting for revenue and mid+erm expenditure reviews; and (H) training in use of IFMTS for use as financial management systeln, including to generate budget execution reports.
(c) Public ond Electronic Ptocuremenl S]srerr.

Strengthening public procurement and contract management functions.
in particular: (i) ( ii) Establishment ofa centralized public and electronic procurement (e-procurement) system for use by all MDAs, including a centralized view of all suppliers registered or blacklisted for all classes (goods, consultancies and services covering manufactures and suppliers); online advertising ofbidding opportunities; online shonlisting, comments, and corrections and approvals; online submission ofbids; online sealing ofvirtual tender box; online bid opening, evaluation, and approvals; issuance of purchase/work orders online; contract award publications; and data collection and dissemination.
Enhancing the institutional capacity of the public procuremenl function, through, inter qlia: (A) designing and implementing a procurement capacity building strategy for delivery ofappropriate training: (B) implementing a procurement training program for stakeholders, including, practitioners, the priyate sector.
intemal auditors and civil society organizations; (C) development and adoption ofa strategy for provision ofthe training to MDAs in the use of the e-procurement system, including a comprehensive training calendar; (D) designing a freely accessible website/online portal for advertising contracts and publishing NPPA's revierv reports; and (E) operationalizing the procurement directorate in MoFED, all through the provision of technical advisory services.
non-consulting services, training, operating costs and the acquisition ofgoods for the purpose.

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Sullceluoc usdo ue Surploq Surpnlcur'suals,(s luaura8EuEur lJsrluos Surueq6uaJls (lll) (p) il -9- (ii) of technical advisory services.

non-consulting services, training and acquisition ofgoods for the purpose.
Strengthening the Recipient's extemal audit function and systems, in particular: (A) development of a comprehensive trdining progranr for auditors in collaboration with the University ofSierra Leone; (B) supporting professional training and certification of Audit Service Sierra Leone's C'ASSL") staff; (C) supporting operationalization of the ASSL; and (D) design and implementation of audil management information systems, all through the provision of technical advisory services, non- consulting services, training, operating costs and acquisition of goods.
(iiD Strengthening the Recipient's legislative's and public oversight over PFM, in particular: the operational capacity and effectiveness of the Public Accounts Comminee, lhe Public Finance Committee, and the Transparency and Accountability Committee, respectively, all through the provision of technical advisory services, non-consulting services, training, operating costs and acquisition ofgoods for the purpose.
(b) Opetr/Rig Dntu tnd NSA Enhancing the Rccipient's accountability and oversight of resource expenditure, service delivery, and PFM through: (i) Open and Big Data Applicarion.lntegrating open dala Big Data.

and beneficiary feedback into PFM processes and service delivery opcrations.
This will be done through: (A) designing, piloting, and scaling up uses of Big Data for enhanced service delivery; (B) service delivery surveys and quality feedback mechanisms; (C) enhanced grievance redress mechanisms (CRMs) in service delivery operations of key sectors, including education, health, land, and water; and (D) implementation of ODRA recommendations, including: piloting the use of open data applications for improved governnrent efficiency, support to Covernment's Open Data Portal, developing sectoral data dashboards, incentivizing the public disclosure of existing govemment datasets, sensitization campaigns around open data, and introducing a provision for open data by default.
( ii) Access to ldonnqtion.
Ensuring full and effective implementation of the Right to Access Information (RAl) Act, including: (A) identi$ing and training RAI officcrs in MDAs; (B) promoting NF - l0 - proactive disclosure ofinfonnation; (C) popularizing the RAI Actt (D) engaging in demand-side data and information trainings: (E) piloting and scaling up records management good practices within MDAs and related activities to improve data retention; and (F) harmonizing digital records management and related regulations with the RAI Act.
(iii) Support to Non-State lcroru.

Developing the analytical and dissemination capacities of non-state actors ("NSAs") for advocacy with a yiew to promoting transparency and external accountability over PFM.

through.
inrer a/ia: (A) strengthening the institutional and technical capacity ofthe NSA Secretariat for coordination of NSA activities; (B) enhancing the technical and institutional capacities of NSAs for adyocacy, oversight, and accountability; (C) facilitating access to and understanding of PFM documents and reports and citizen participation in budget discussions; and (D) provision ofsub-grants to NSAs ("NSA Sub- Grants") including joumalists and media outlets for Subprojects designed to promote social accountability in PFM.
Part 3.

PFM Reform Coordinatio n and Proiect iltanrsement (a) (b) Strengthening the capacity of the Project Management Unit for Project implementation, coordination and oversight, including, inter qliq, fiduciary (procurement and financial management) aspects, monitoring and evaluation and reporting arrangements, all through provision technical advisory services, non-consulting services, training, Operating Costs and acquisition ofgoods for the purpose.
Strengthening the capacity of the PFMR Directorate for, among others.

monitoring and evaluating overall PFM reforms, all through the provision of technical advisory services.

non-consulting services, training, Operating Costs and acquisition ofgoods for the purpose.
\- -lt- SCHEDULE 2 Project Execution Scction I. Im rrlementatio Arransements Ministry of Finance and Economic Development ("MoFED") (a) The Recipient shall designate, at all times during the implementation of the Project, the MoFED Io be responsible for prompt and efTicient oversight and implementation ofactivities under the Project, and shall take all actions including the provision of funding, personnel and other resources necessary to enable said MoFED to implement said Project.
(b) Project Management Unit (i) Without limitation upon the provisions of paragraph (A) immediately above, the Recipient shall maintain, at all times during the implementation ofthe Project, a Project Management Unit, within MoFED, with a composition (including, inter qliq, a Project manager, a senior intemational procurement specialist, two local procurenrent specialists, a financial management specialist and a monitoring and evalualion specialist), mandate, terms ofreference and resources satisfactory to the Association.
(ii) The Project Management Unit shall be responsible for ensuring prompt and ellicient day to day coordination, implementation, management and communication of Project activities and results, including: (A) fiduciary elements of Project implementation (financial management and procurement); (B) preparing the proposed annual work plan and budget; (C) ensuring the implementation of the Annual Work Plan and Budget; (D) preparing and consolidating periodic progress reports; (E) monitoring and evaluation of Project activities; (F) liaising with other stakeholders on issues related to Project implementation; and (G) providing administrative support to implementing agencies, all in accordance with the Project lmplementation Manual.
PFM Reforms Steering Committee Without limitation upon the provisions of paragraph I immediately above, the Recipient shall maintain, at all times during the implementation ofthe Project, the PFM Reforms Steering Committee.

with a composition.

mandate, terms of reference and resources satisfactory to the Association, to be responsible for, r',r/d/' I \N9 -12- a/ia, providing strategic oversight and policy guidance on mafiers relating to the Project.

3.
3.

PFM Technical Management Committee Without limitation upon the provisions ofparagraphs I and 2 immediately above.

the Recipient shall maintain, at all times during the implementation ofthe Project.

a PFM Technical Management Committee, rvith a composition, mandate, tenns of reference and resources satisfaclory to the Association.

to be responsible for providing quality assurance on technical aspects ol the Project.
The PFM Technical Management Committee shall be responsible for: (a) revierving and endorsing for subsequent approval by the PFM Refonns Steering Comminee, the Project's proposed annual work plan and budget and ensuring its consistency rvith the Project Implemenlation Manual; (b) reviewing the periodic Project reports and financial reports referred to in Seclion Il of this Schedule 2 prior to transmission to the PFM Reforms Steering Committee; (c) facilitating coordination of Project activities and removal ofany obstacle(s) to the implementation ofthe Project; and (d) monitoring and evaluating impacts of Project activities.
4 IFMIS Project Management Implcmentation Coordination Team Without limitation upon the provisions of pamgraphs l, 2 and 3 immediately aboye, the Recipient shall maintain, at all times during the implementation of the Project, an IFMIS Project Management lmplementation Coordination Team, with a composition.

mandate, Lerms of relerence and resources satisfactory to the Association, to be responsible fot, inter alia, day to day implementation.
coordination and management ofactivities under Part I (bXi) ofthe Project.

To this end, the Recipient shall, through MoFED, not later than two (2) months after the Effective Date, appoint in accordance with the provisions of Section III of this Schedule 2. and thereafler maintain at all times during Project implementation.

an IFMIS project manager, with qualifications.

experience and terms of reference satisfadory to the Association.

5.
5.

Audit Sen,icc ofSierra Leonc Without limitation upon the provisions of paragraphs 1, 2, 3 and 4 immediately above, the Recipient shall designate, at all times during the implenlentation ofthe Project, the Audit Service ofSiena Leone, with a composition, mandate, terms of reference and resources satisfactory to the Association, to be responsible for audit ofthe Project, subject to the provisions of Section ll.B.5 below.

N Wr l].
Implementation Arrangemcnts Project Implementation Manuali NSA Sub-Grants Manual (a) The Recipient shall update and thereafter maintain, throughoul project implementation, the Project Implementation Manual, in accordance with terms of reference acceptable to the Association, which it shall furnish to the Association for review before adopting and which shall include provisions on the lollowing matters: (i) arrangements on financial management, setting forth the detailed policies and procedures for financial management under the Project; (ii) procurement management procedures; (iii) institutional administration, coordination and day to day execution of Project activities; (iv) monitoring and evaluation; (v) reporting; (vi) infomation, education and communication of Project activities; and (vii) such other technical and organizational arrangements and procedures as shall be required for the Project.
(b) The Recipient shall maintain, throughout project implementation, the NSA Sub-Grant Manual.

(c) (d) The Recipient shall ensure that the Project is can ied out in accordance with the Project Implementation Manual and the NSA Sub-Grants Manual, respectively; provided, however, that in case of any conflict between the provisions ofthe Project Implementation Manuai and the NSA Sub-Grants Manual, respectively, and the provisions ofthis Agreement, the provisions ofthis Agreenent shall prevail.
Except as the Association shall otherwise agree, the Recipient shall not amend, abrogate or rvaive any provision of the Project Implementation Manual and the NSA Sub-Grants Manual, respectively.

2.
2.

Annual WoIk Plan and Budget (a) The Recipient shall prepare and fumish to the Association not later than November i0 of each Fiscal Year during the implementation of the Project, a work plan and budget containing all activities prcposed to be included in the Project during the following Fiscal Year, and a proposed financing plan lor expenditures required for such activities, sefting forth the proposed amounts and sources offinancing.
(b) Each such ploposed work plan and budget shall specify any training activities that may be required under the Project, including: (i) the type ot training; (ii) the purpose of the training; (iii) the personnel to be tninedl (iv) the ;nstitution or individual who will conduct the training; (v) the location and duration ofthe training; and (yi) the cost ofthe training.
N qery - l.l - (c) (d) (e) The Recipient shall afford the Association a reasonable opportunity to exchange views with the Recipient on each such proposed work plan and budget and thereafter ensure that the Project is implemented with due diligence during said following Fiscal Year in accordance with such work plan and budget as shall have been approved by the Association ("Annual Work Plan and Budget").
The Recipient shall not make or allow to be made any change to the approved Annual Work Plan and Budget without prior approval in writing by the Association.

The Association shall, on the basis ofthe Annual Work Plan and Budget, determine the list of expenditures to be financ€d out of the combined proceeds of the Financing ("Annual Work PIan Expenditures") and the percentage ofthe Annual Work Plan Expenditures which may be financed out ofthe proceeds ofthe Financing.
C. Anti-Corruption The Recipient shall ensure that the Project is carried out in accordance with the provisions of the Anti-Corruption Guidelines.
t) l. Subprojects under Part 2(b)(iii)(D) ofthe Projcct; NSA Sub-Grants Eligibility.ln order to ensure the proper implementation ofPart 2(bXiii)(D) ofthe Project, the Recipient shall, through the NSA Secretariat, make NSA Sub-Grants to NSAS for Subprojects in accordance with eligibility criteria and procedures acceptable to the Association, which shall include, inter alia,the following: (a) the Recipient, through the NSA Secretariat, has determined on the basis ol an appraisal carried out in accordance with guidelines acceptable to the Association, and elaborated in the NSA Sub-Crants Manual.
that: (i) (ii) the proposed NSA; (A) is a legal entity.

rvith the organization.
management, technical capacity and financial resources necessary to carry out the proposed Subproject; and (B) has prepared a satisfactory financing plan and budget, and a satisfactory implementation plan for the proposed Subproject; and the proposed Subproject is technically feasible, and financially and economically sound; and (b) the: (i) aggregate amount of all NSA Sub-Crants made in a given Fiscal Year to NSAs shall not exceed the limit set out in the Annual Work Plan and Budget; and (ii) maximum amoun!
oi each NSA Grant lor a )1- We - t5 - Subproject shall not exceed 100 percent ofthe total estirnated cost ofthe Subproject rninus the amount ofother funds allocated to finance such cost.

2.
NSA G rant Agrccmcnt (a) The Recipient shall make each NSA Grant to a NSA under a Crant Agreement on terms and conditions satislactory 10 the Association, as further described in the NSA Sub-Crants Manual, which shall include the following: (i) (ii) (iii) the amount ofthe NSA Crant shall not exceed the total estimated cost of the Subproject; and the proceeds of the NSA Grant shall be made available to a NSA on non-reimbursable grant terms; a description of the Subproject and the applicable rates for the services included thereunder; the NSA shall be required to: (A) carry out the Subproject with due diligence and efficiency and in accordance with sound technical, financial, administrative, and environmental praclices; (B) ensure rhat the resources required for lhe Subproject are provided promptly as needed; (C) procure goods, non-consulling services, services and other Eligible Expenditures required for the Subproject in accordance rvith Section III of this Schedule; (D) maintain policies and procedures adequate to enable it to monitor and evaluate, in accordance with indicators acceptable to the Association, the progress of the Subproject and the achievement of its objectives; and (E)(i) maintain a financial management system and prepare financial statements in accordance with consistently applied accounting standalds acceptable to the Association, both in a manner adequate to reflect the operations, resources and expenditures related to the Subproject; and (ii) at the request of the Association or the Recipient.
have such records audited by independent auditors acceptable to the Association, in accordance with consistently applied auditing standards acceptable to the Association, and promptly furnish the records as so audited to the Recipienl and the Association; (iv) the NSA shall be required to carry oul the Subproject in accordance with the provisions ofthe Anti-Corruption Cuidelines; (v) the NSA shall be required to carry out the Subproject in accordance with the provisions olthe NSA Sub-Crants Manual; I $s W ry 4 'suoqlpuoc laauag aql Jo 60', uoqcas Jo suolsl^oJd aql qll/{ acuBpjocss ul uels(s luaule8euDtu lErsueuu u peurElurEr.u aq ol esnBJ Jo ureluleur IIEqs lualdl3eu aqJ $!pnv puE slJodru lBlruBulJ'luauc8EuBl^J lElruEulc 'B 'UOd r{ons Fq paJa^oc Pou:d aql Jo pue oqt raup qtuou euo uprll ral?l lou uollelcossv eql ol paqsruJnJ cq lJuqs puE '.relsaucs ftpuelpc 3uo Jo poued eql ra^os lleqs uodau lcafoJd qJeS uollElcossv eql ol alqeldaf,3e sJotBJlpur Jo srs€q eqt uo pue suolllpuoJ l?rauec aqtJo 80', uolpasJo suorsl^ord 3ql qll^\ eJuepjorcE ur suodau lJaford aredoJd puE lJefoJd aql Jo ssalSoJd eql el?nlE^a pup Jolluoru llEqs luardrcau aqJ qrodau tralord 'V @'lluollras Jo3reqt uo!sr^ord ,(ue Jo 'PauorlueueroJs aql 'pe^rE^1 Jo 'palESolqe 'papuaure 'pauilss?
eq ol llr]lrad ro 'e^le^\ Jo'eleSorqu 'puaure'uArsse lou IIEI1S tuald!JeU aql'aaJ8e as}^uaq}o Ileqs uorlel.ossV aql se ldacxe 'puu IuEJC-qnS VSN aqlJo sasodJnd aqt qslduroccz ot pue (luouraar8y luerg ySN oql Japun suopeSl;qo st13o iuz uuo3:ad o1 arnpe3 S.VSN aql uodn 'u^lErprl uel{l lu€rg-qns VSN aql Jo lunouu ,r{l Jo ued ,(ue :o llE Jo punJel B ulqqo Jo 'luergnns VSN ,qtJo spoacord aql esn ol VSN e$ Jo lq8u aql Jl8uluual ro pu.dsns ol lqAH ,ql 'Surpnl3ur) uorl?lJossv eql Jo asoql pue slseJelul slr lcalord ol sp Jeuu€u q3ns u1 tuauaa:8y 1uu9 VSN orl repun s1q3g sl1 aslcraxa 11zqs luardrcel aq1 ^\ (q) puE :tuaurear8v luBro VSN aql.ropun suopeSrlqo s1r 1o ,{uu urroJrad ot VSN or{t ,tq e.rn1re.1 uodn 'eq ,{eu ase3 aqt sD 'u^\urpr{lr^\ uaql tuerD-qns VSN or{l Jo lunourp aqlJo ued Iue ro IIBJo punJ D urEtqo ro 'luBrgnns VSN al.llJo sPeacoJd aql osn ot vsN oqlJo lqSu eql elEulurel ro puedsns (J) puE :VSN equo uorllpuoi lzlruEuU pu" 'uoltuedo 'uolleJNlulurpE aql AulprE8ar lsanbar ,(lqeuosear lleqs 'uouEloossv aql lo 'll sp uorl?uloJur IIE urslqo (B):slueunJop puE sploral lue,rala:,(ue puE SoaJaql suoueredo eql 1ca[oJdqns eql ur papnlcul salls puE spoo8 aql'lsenbar os llEr.ls uort?lcossv aqlJl 'uo!lB!cossV aql qlt^\ ,(putofro J;as1r ,(q tradsu; (y) :o11q8r.r aql a,rer; 11uqs tuardrcal oqr (l!^) pu?
:tJefoJdqns eql JoJ ,{la^rsnlrxe prsn oq ll?qs IUDJC VSN aql 3o spaaco:d aqlJo lno pa3uuuu eq ol sarnllpuadxA elgr8rlg reqlo puB saa!^Jas lslurllnsuof, 'secl^Jas Sutllnsuor-uou 'spooi oql (l.r) - 91 - -17- 2.

The Recipient shall prepare and fumish to the Association not later than forty-five (45) days after the end of each calendar quaner, interim unaudited financial reports for the Project covering the quarter, in form and substance satislactory to the Association.
The Recipient shall haye its Financial Statements audited in accordance with the provisions of Section 4.09(b) of the General Conditions.

Each audit of the Financial Statements shall cover the period of one Fiscal Year of the Recipient.

The audited Financial Statements for each such period shall be furnished to the Association not Iater than six months after the end olsuch period.

4.
4.

Other Rcyi$v(s)i Project Managcment Unit Without limitation upon the provisions of paragraph 3 immediately above, the Recipient shall undertake quarterly reviews of the PMU's financial management activities under tenns and conditions satisfactory to the Association, and fumish said reviews' findings to the Association not later than sixty (60) days after the end ofthe period to which said quafierly review(s) relates.
j Audit Service Sierra Leone Without limitation upon the provisions ofparagraph 4 immediately above, in order to assist the Audit Service Siera Leone in preparing an audit of its Financial Statements for Part 2(axii) of the Project, in each Fiscal Year during Project irnplementation, starting with Fiscal Year 2017, the Recipient shall, no later than six (6) months after the Effective Date, appoint an Extemal Auditor, in accordance with the provisions of Section III of this Schedule.
The audited Financial Statements for each such period shall be fumished to the Association not later than six (6) months after the end ofsuch period.

SectionllL Procurement All goods, works, non-consulting services and consulting seryices required for the Project and to be financed out ofthe proceeds ofthe Financing shall be procured in accordance with the requirements set forth or referred to in the Procurement Regulations and the provisions ofthe Procurement Plan.

Section lV.
Section lV.

Withdrawal of the Procecds of the Financinq A. L N Ceneral The Recipient may withdraw the proceeds ofthe Financing in accordance with the provisions of Article II ofthe Cenerai Conditions.
this Section, and such additional inslructions as the Association shall specify by notice to the Recipient (including the "Disbu$emcnt Guidelines for Investment Project Financing" dated February 201 7, as revised from time to time by the Association and as made applicable to \M9 - t8 - this Agreement pursuant to such instructions), to finance Eligible Expenditures as set lorth in the table in paragraph 2 belorv.
The lollowing table specifies the categories of Eligible Expenditures that may be financed out ofthe proceeds ofthe Financing ("Category"), the allocations ofthe amounts ofthe Financing to each Category, and the percentage ofexpenditures to be financed for Eligible Expenditures in each Category: Categon' ( l)(a) Goods, non-consulting services, consultants' services, Training and Operating Costs under Parts r, 2(bxi), (bxii), (b)(iii)(A) (b)(iiiXB) and (bxiiixc).
(2)(a) NSA Sub-Crants under Part 2(b)(iii)(D) of the Project TOTAL AMOUNT I I I I I Amount of thc Financing Allocated (cxprcsscd in SDR) 7.000.000 i00.000 7.300,000 Percentagc of Expcnditures to be Financed (inclusive of Tarcs) Such percentage of Annual Work Plan Expenditures as the Association may determine for each Fiscal Year and communicate to the Recipient Such percentage of Annual Work Plan Expenditures as the Association may determine for each Fiscal Year and communicate to the Recipient u Withdrawal Conditions; Withdrswal Period Notwithstanding the provisions of Part A of this Section, no rvithdrawal shall be made for payments made prior to the date ofthis Agreement.
The Closing Date is March i 1.2020.

4F- Wry -19- SCHEDULE 3 Repayment Schedule Date Paynent Due On each September l5 and March 15, commencing September I 5, 2023 to and including March 15.

2055 I Principal Amount ofthc i Credit repayable I I (expressed as a | percentage)* | I I l.56250/o I v \N'y -20 - APPENDIX Section I. Definitions l. ,) ,l 5 6 ,7 8 9 t0.

ll "African Deyelopment Bank" means the African regional development bank.
"Annual Work Plan and Budget" means the program ofactivities agreed each year between the Recipient and the Association for inclusion in the Project and financing in accordance with Section I.B.2 ofSchedule 2 to this Agreement during the lollowing Fiscal Year, as the same may be revised from tjme to time, all in accordance rvith the provisions olthe said Section.

"Annual Work Plan Expenditures" means the Annual Work Plan Expenditures refened to in Section I.8.2(e) olSchedule 2 to this Agreement.
"Anti-Corruption Commission" means the Recipient's commission established and operating pursuant to the Anti-Coruption Act Number l2 of2008, ofthe Iaws ofthe Recipient.

"Anti-Corruption Cuidelines" means the "Guidelines on Prcventing and Combating Fraud and Coruption in Projects Financed by IBRD Loans and IDA Credits and Grants", dated October 15, 2006 and revised in January 20ll and as of July l,2016.
-ASYCUDA+-f" mearrs an earlier version of the Automated System for Customs Data issued by the United Nations ConFerence for Trade and Development.

"ASYCUDA World" means the latest version of the Automated System for Customs Data issued by the United Nations Conference for Trade and Development.

"Audit Service Siena Leone" or "ASSL" means the Recipient's Audit Service established and operating pursuant to Part II ofthe Audit Service Act (2014) ofthe larvs ofthe Recipient, as amended to date.
"Bank of Sierra Leone" means the cenral bank of the Recipient established and operating pursuant to the Bank of Sierra Leone Act Number 3 of2000 ofthe lau's olthe Rccipient.

as amended to date.

"Big Data" means any voluminous amount of structured, semi-structured and unstructured data that has the potential to be mined for information.

"Budget Bureau" means the unit vvithin MoFED responsible for preparation ofthe national budget.

4r- I - 2l - I2 ri.
4r- I - 2l - I2 ri.

l:1 I5 I6 "Category" means a category set forth in the table in Section IV.A.2 of Schedule 2 to this Agreement.

"Co-financier" means the following financier.

other than the Association, who intends to provide financing to the Project, narnely, the African Development Bank.

"Co-financing" means, for purposes of pamgraph I I of the Appendix to the General Conditions.

an aggregate amount of not less than three million five hundred thousand Dollars ($3,500,000).
to be provided by the Co-financier to assist in financing the Project.

"Co-financing Agreement" means the agreement entered into b€tween Recipient and AfDB providing for the Co-financing for the Project.

the *CS-DRMS" rneans the Commonwealth Secretariat Debt Recording and Management System.

17.

"DTIS" means the Recipient's Domestic Tax Infornralion Systenr.

t8.

l9 20.

21.

"Econonric Policy Research Unit" means the unit within MoFED responsible for macro-economic fi scal policy.
"External Auditor" means the auditor appointed by Parliament in accordance with the provisions of Section l6 ofthe Audit Service Act Number I of I998 ofthe laws ofthe Recipient, as amended to date.

"Fiscal Year" means the Recipient's fiscal year commencing January I and ending December 3l ofeach year.

"General Conditions" rneans the "lnternational Developnrent Association Generul Conditions for Credits and Grants", dated July 31.

2010.
2010.

"CFS20l4' means the Government Financial Statistics Manual (2014) issued by the International Monetary Fund- providing a framework designed to produce statistics that enable policy makers and analysts to study developments in the financial operations and financial position ofgovemment.
*CFS200l" means the Government Finance Statistics Manual 2001, an internationally recognized statistical reporting framework aimed at helping national authorities to strengthen their capacity to formulate fiscal policy and monitor fiscal developments and developed by the Intemational Monetary Fund.

24.

"CRP v7" means the Covemment Resource Planning Vcrsion 7 of FreeBalance Solution.

\\.d W) -22- 25 ?6.

2'7 .

28.

?9.

i0 il.


"lFMIS" nreans the Recipient's integrated financial management information system.

"IFMIS Project Management Implementation Coordination Team" means the Recipient's committee referred to in Section I.A.4 ofSchedule 2 to this Agreement.

"lPSAS" means lntemational Public Sector Accounting Standards.

"lTAS" means the Recipient's Integrated Taxation Administration System.
"Local Council" or "LC" means a local council established and operating pursuant to the Local Covernment Act Number I of 2004 of the laws of the Recipient, as amended from time to time, and any successor thereto, and "Local Councils" or "LCs" means, collectively, all such Local Councils.

"Macro-Fiscal Steering Group" means the macro-fiscal steering group within MoFED.

"MDAs" means the Recipient's ministries, departments and agencies, and "MDA" means any such individual MDA.

32.
32.

"MoE" means the Recipient's Ministry ofEducation, or any successor thereto "MoFED" means the Recipient's Ministry ol Finance Deyelopment, or any successor thereto.

and Econornic "Multi-lateral Projects Division" or "MPD" means the division within MoFED responsible for coordinating donor funded projects.

'NPPA" means the National Public Procurement Authority established and operating puRuant 1o Section 3 ofthe Public Procurement Act.

"NRA" means the National Revenue Authoritv.


"NSA" means a non-state actor established and or"rur,n, under the laws of the Recipient as a not-for-profit legal entity, and'NSAs" means, collectiyely, two or more such non-state aclors.

"NSA Crant Agreement" means the agreement refened to in Section 1.D.2 of Schedule 2 to this Agreement.

"NSA Sub-Crant" means a sub-grant made to a NSA under Parr Z(bXiiiXD) ofthe Project.
"NSA Sub-Grant Manual" means the manual dated August 12, 2016, for the provision ofNSA Sub-Crants for Subprojects under Part 2(bXiiiXD) ofthe Project 35 36.

37.

38.

39 40.

4f- M 23 4t 42 l4 45 46.

"NSA Sccretariat" means the secretariat within MoFED responsible lbr coordinating non-state actoB' activities.

"ODRA" means the World Bank's Open Data Readiness Assessrnent diagnostic and action plan.
"Operating Costs" means tlre incremental expenses incurred on account of Project implementation, based on an Annual Work Plan and Budgel approved by the Association pursuant to Section I.8.2 ofSchedule 2 to this Agreement, on account ofoffice equipment and supplies, vehicle operation and maintenance, maintenance of equipment, comrnunication and insuranc'e costs, office administralion costs, utilities, rental, consumables, accommodation, travel and per dien, excluding the salaries ofthe Recipient's civil servants.
"Original Financing Agreement" means the financing agreement for a Public Financial Management Improvement and Consolidation Project between the Recipient and the Association, dated January 17,2014, as amended to the date of this Agreement (Credit No.

5350-SL).

"Original Project" means the Project desoibed in Schedule I to the Original Financing Agreernent.
"Parliament" means the Recipient's parliamenl established and operating pursuant to Chapter VI ofthe Constitution ofthe Recipient Act Number 6 of l99l ofthe laws ofthe Recipient, as amended to date.

47.

"PDMD" means the Public Debt Management Division within MoFED ,r8.

*PETRA" means the internationally recognized integrated software solutions package.

19.
19.

"PFM" means Public Financial Management "PFM Reforms Steering Committee" means the Recipient's committee referred to in Section I.A.2 ofSchedule 2 to this Agreement.

"PFM Technical Management Comnrittee" means the Recipient's committee referred to in Section 1.A.3 of Schedule 2 to this Agreement.

"PFMR Directorate" means the directonte within MoFED responsible for coordinating PFM reforms in the Recipient's territory.
"Procurenrent Plan" rneans the Recipient's procurement plan for the Project, dated May 3,2017 and provided for under Section IV ofthe Procurement Regulations, as the same may be updated from time to time in agreement with the Bank.

50 51.

52.

53.

\ \-y 2l 5'1.

"Procurement Regulations" means the "World Bank Procurement Regulations for Borrowers under Investmenl Project Financing", dated July 1,2016.
"Program" means the document of the Recipienl entitled Public Finonciul lvlanagement ReJbrm Strateg,- 20 I 1- I 7 dated June 201 3.

"Project Implementation Manual" means the manual, in form and substance satisfactory to the Association.

referred to in Section I.B.l of Schedule 2 to this Agreement; as such manual may be amended from time to time with written agreement of the Association.

"Project Management Unit" means tlle Recipient's unit referred to in Section I.A.
1(b) of Schedule 2 to this Agreement.

"Project Steering Comrnittee" means the Recipient's contmittee refencd to in Section I.A.2 of Schedule 2 to this Agreement.

"Public Accounts Committee" means the committee established and operating in Parliament pursuant to Section 93 ofthe Constitution ofthe Recipient Act Number 6 of l99l ofthe laws ofthe Recipienl, as amended to date.
"Public Finance Comminee" means the Committee established and operating in Parliament pursuant to Section 9i ofthe Constitution ofthe Recipient Act Nur.nber 6 of l99l ofthe larvsofthe Recipienl, as amended todate.

"Public Investment Management Unit" means lhe public investment management unit within MoFED.

"Prrblic Procurement Act" means the Public Procurement Act Number l4 of 2004 ofthe laws ofthe Recipient, as amended to date.

56.

57 58.

59 60 6t.

62 63.

"RAI" means Right to Access Information.


64 65.

"Subproject" means a specific development project carried out or to be carried out by a NSA under Pan 2(b)(iii)(D) ofthe Project and llnanced or to be financed out of the proceeds of the Financing through a NSA Sub-Grant; and "Subprojects" means.

collectively, two or more such subprojects.
"Training" means the costs associated with trainin8, workshops, seminan and conferences based on an Annual Work PIan and Budget approved by the Association pursuant to Section LB.2 of Schedule 2 to this Agreement, for reasonable expenditures (other than expenditures for consultants'services), including: (i) local and intemational travel, room, board and per dien expenditves incuned by traineB and trainees in connection with their training and by non- consultant training facilitators; (ii) couBe fees; (iii) training facility rentals: and /tl,- -25- (iv) training material preparation, acquisition, reproduction and distribution expenses, 66 "Transparency and Accountability Committee" nreans the Committee established and operating in Parliament pursuant to Section 9i of the Constitution of the Recipient Act Number 6 of l99l ofthe laws ofthe Recipient, as amended to date.
6'1.

"TSA" means Treasury Single Account 68.

69 "University of Sierra Leone" means the university established and operating pursuant to Section 3 ofthe Universities Act Number I of2005 ofthe laws ofthe Recipient as amended to date, or any successor thereto.

"Valuation Comrrittee" means the committee responsible for rnanaging the policy aspect of propefiy cadastre for each Local Council.

S€ction II.
S€ction II.

Amendments to the Orisinal Financinq Agreement The Original Financing Agreement is amended as lollows: l. Project Description.

The Project description in Schedule I is arnended and restated to read as follows: The objective ofthe Project is to improve the public financial management system and accountability in the use ofgovernment finance.
The Project consists ofthe following parts: Part l Strengthening Budget, Financial, Procurement and Taxation Systems Carrying out ofa program ofactions designed to improve the Recipient's overall budget planning at the national and local levels, and strengthen systems and procedures for accounting, reporting, public procurement and revenue management, in panicular: (a) Budgel Pkn,ing, Credibility snd Fromew.

)rk Formuldion.
)rk Formuldion.

Strengthening budgetary planning at the national and Iocal Ievels, through, inter oliq', (i) Strengthening the institutional and tcchnical capacities of the Budget Bureau on: (A) the GRP y7 budget execution processes and lunctions to generate budget reports for management reporting and end-user reporting; planning.

implernentation, and monitoring ofactivity-based budgeting; and (B) new planning and execution modules of IFMIS performance budgeting software.
\s 26 (ii) Strengthening the framework and formulation for medium term budgeting, including, inter alia'.

(A) migalion to a GFS2OI4 compliant budget classification; (B) recalibrating the Budget Bureau's classification systems; developing and implementing a training program for MDAs and Local Councils; (C) facilitating the reconfiguration of the budget module; and (D) integration of budget planning and execution in an integrated IFMIS.
(iii) Strengthening budgetary planning through: (A) configuration, testing, and quality review of the GRP v7 appropriations and budget modules; (B) integration ol GRP contract managcment sub-module with appropriations, budgeting.

and other general Iedge functionalities; (C) introduction of contract management and management of multi-year commitment control and arrears; and (D) decentralization ofbudget execution processes by MDAs in enhancing timelines and effectiveness in budget execution.
(iv) Strengthening lhe capacity of Local Councils for medium term budgeting, including, inter olia, harmonization of budget classification, all through the provision of technical advisory services and training; and strengthening Local Councils' budget execution, in particular: (A) development of migration plans for the new (cenral) budg,et classification, (B) developraent ofMTEF budgeting for local government, and (C) assessment of budgets againsl perfonnance and capacity building pertaining to budget through, provision of technical advisory services, training, non- consulting services, financing of operating costs and acquisition ofgoods for the purpose.
(b) lFMl9Accounting and Repo ing S/s/errrs.

Strengthening financial systems, controls.

accounting and reporting, in particular: (i) lmplementation of IFMIS with a view to improving budget preparation and execution.
cash management and financial reporting, including: (A) procurement of updated Version 7 of IFMIS (B) rolling out of IFMIS to remaining MDAs, as well as local councils and on-budget donor funded projects; (C) development and implementation of a disaster recovery plan for the IFMIS; (D) establishment of the IFMIS interface with other govemment systems, including, among others, Bank of Siena Leone, the debl management system (CS-DRMS), and customs and tax systems (ASYCUDA World and ITAS); (E) communication and change management; (F) establishment of a business continuity stmtegy and disaster recovery site: (C) development ofcomprehensive training strategy for technical lll, - 2'7 - (ii) and suppoft staff; and (H) establishment of a data center, all through the provision of technical advisory services, non- consulting services, training, operating costs and acquisition of goods for the purpose.
lmproving accounting and reporting lunctions (including collection ofrevenues and public expendilures incurred) to ensure consistency with national and international accounting standards, laws and regulations, in particular: (A) enhancement and lurther adoption oITSA; (B) implementation ol'an electronic document management systern; (C) implementation of an electronic funds transfer system; (D) strcngthening compliance with IPSAS; (E) undertaking a comprehensive review of budgeting and accounting procedures; (F) defining business processes in the roll- out of IFMIS; and (C) inrproving accuracy of goyemnlent's financial statements.
(iii) Strcngthen financial management capacity of local councils through: (A) upgrade of PETRA software to perform ''Procure to Pay" functions, including commitment control; (B) revamp existing PETRA infrastructurc; (C) scaling up ofcadastral systern for enhanced revenue mobilization; (D) development of propefty cadaster management manual and provision of training to valuators, chief administrators, and Valuation Committee members; (E) provision of tr"ining to build the capacity ol local councils in the collection and accounting for revenues; (F) training in the use of the citizens' budget template; (C) training in collection and accounting for rcyenue and mid-term expenditure reviews; and (H) training in use of IFMIS for use as financial management system, including to generate budget execution reports.
(c) Public orrd Electronic Procuremenl Syslenr.
Strengthening public procurement and contract management functions, in particular: (i) Establishment ofa centralized public and electronic procurement (e-procurement) system For use by all MDAs, including a centralized view of all suppliers registered or blacklisted for all classes (goods, consultancies and services covering manufactures and suppliers); online advertising ofbidding opporlunities; online shortlisting, comments, and corrections and approvals; online submission ofbids; online sealing ofvinual tender box; online bid opening, evaluation, and approvals; issuance of purchase/work orders online; contract award publications; and data collection and dissemination.
$s -28- ( ii) Enhancing the institutional capacity of the public procurement function, through.

inter alio'.

(A) designing and implementing a procurement capacity building strategy for delivery ofappropriate training; (B) implementing a procurement tmining program for stakeholden, including, practitioners, the private sector, internal auditors and civil society organizations; (C) development and adoption ofa strategy for provision ofthe training to MDAs in the use of the e-procurement syslem.
including a comprehensive training calendar; (D) designing a freely accessible website/online portal for advertising contracts and publishing NPPA's review reports; and (E) operationalizing lhe procurement directorate in MoFED, all through the provision of technical advisory services, non-consulting services, training, operating costs and the acquisition ofgoods for the purpose.
(iii) Strengthening conract management systems, including holding an open contracting assessment and establishment of open data module within e-Procurement system to publish structured open data on each ofthe contracting processes, all through provision of technical advisory seryices, non-consulting services, training, operating costs and acquisition olgoods for the purpose.
Revenue Manogemenl Syslens ond Relorm of Legal Fromevork, Strengthening tax and customs administration systems and improving the efficiency and connectivity between revenue systems (lTAS, ASYCUDA World, and reconciliation systems) and PFM systems, including, among othen: (i) acquisition and installation of a robust ofF-the-shelf ta\ administration system that interfaces with IFMIS; (ii) acquisition and installation of ASYCUDA World; (iii) supporting initial establishment of a resource revenues unit; (iv) provision ofsupport for reforms to existing application laws associated with ITAS to support changes to business process and tax administration procedures; and (y) strengthening the technical capacity of NRA staff to effectively manage implemented systems and acquisition of infraslructure for the purpose.
(d) Part 2.

Improving PFM OYersight and Accountability Systems Carrying out a program of activilies designed to strengthen the Recipient's PFM audit and oversight and accountability systems, in parlicular: (a) Slrengthening Audit ond A'ersight.

Strengthening financial control, improving accountability systems and practices, and enhancing independent and public oversight in the management and use of public finances.
in particular: 41,- Ur 29 (i) (ii) Developing an effective, independent, and objective internal audil function.

through, i ler aliq'.
(A) carrying out of internal audit needs assessment and developing risk-based intemal audit; (B) developing standard operating procedures manual and templates; (C) rolling out the internal audil function to all MDAs; (D) designing and implementing a training program for inlernal auditors in MDAs, including on computer assisted audit techniques; (E) designing and implementing certification courses on intemal audit; (F) providing professional training and certification to MoFED intemal audit staff and internal auditors across MDAs; (C) strengthening intemal audit committees.
including through training on role and functions of committees; (H) carrying out an audit of the MoE's payroll; and (l) carrying out an audit ofthe Civil Service payroll, all through the provision of technical advisory serviccs, non-consulting services, training and acquisition ofgoods for the purpose.
the Recipient's external audit function and systems, Strength€ning in particular: (A) development of a comprehensive training program for auditors in collaboration with the University olSierra Leone; (B) supporting professional training and ceflification of Audit Service Sierra Leone's C'ASSL) staff; (C) suppofiing operationalization of the ASSL; and (D) design and implementation of audit management information systems, all through the provision of technical advisory services, non- consulting services, training, operating costs and acquisition of goods.
(iii) Strengthening the Recipient's legislative's and public oversight over PFM, in padicular: the operational capacity and effectiveness of the Public Accounts Committee, the Public Finance Committee, and the Transparency and Accountability Comminee.

respectively, all through the provision of technical advisory services, non-consulting services, training, operating costs and acquisition ofgoods for the purpose.
(b) Opcn/Big Dtttu and NSA Enhancing the Recipient's accountabiliry and oversight of resource expenditure, service delivery.

and PFM through: (i) Open and Big Datct Applicotion.lntegrating open data.

Big Data.

and beneficiary feedback into PFM processes and service delivery operations.
This will be done through: (A) designing, piloting, and scaling up uses ol Big Data for enhanced service delivery; N W -i0- (B) service delivery surveys and quality feedback mechanisms; (C) enhanced grievance redress mechanisms (GRMs) in service delivery operations of key secto6, including education, health, land, and water; and (D) implementation of ODRA recommendations, including: piloting the use of open data applications for improved government efficiency, support to Government's Open Data Portal.
developing sectoral data dashboards, incentivizing the public disclosure of existing govemment datasets, sensitization campaigns around open data- and introducing a provision for open data by default.

Access to Informatior.
Ensuring full and effective implementation of the Right to Access Inlonnation (RAl) Act, including: (A) identifying and raining RAI offrcers in MDAs: (B) prornoting proactive disclosure ofinfonnation; (C) popularizing the RAI Act; (D) engaging in demand-side data and information trainings; (E) piloting and scaling up records management good practices within MDAs and related activities to improve data retention; and (F) harmonizing digital records management and related regulations with the RAt Act.
(ii) (iii) Sltpport to Non-State lclors.

Developing the analytical and disse,nination capacities of non-state actors ("NSAs') for advocacy with a yiew to promoting transparency and external accountability over PFM.
through, r)?rer a/la: (A) strengthening the institutional and technical capacity ofthe NSA Secretariat for coordination ofNSA activities; (B) enhancing the technical and institutional capacities of NSAS for advocacy, oversight, and accountability; (C) facilitating access to and understanding of PFM documents and reports and citizen participation in budget discussions;and (D) provision ofsub-grants to NSAs ("NSA Sub- Grants") including joumalists and media outlets for Subprojects designed to promote social accountability in PFM.
Part 3.

PFM Reform Coordination and Proiect lvlanagement (a) Strengthening the capacity of the Project Management Unit for Ploject implementation, coordination and oversight, including, inter olia, fiduciary (procurement and financial management) aspects, monito ng and evaluation and reporting arrangements, ali through provision technical advisory services, non-consulting services, training, Operating Costs and acquisition ofgoods for the purpose.
(b) Strengthening the capacity ofthe PFMR Directorate for, among others, monitoring and evaluating overall PFM relonns.

all through the provision L4t 0u i -3t- of technical advisory services, non-consulting services, training' Operating Costs and acquisition ofgoods for the purpose.

2 Implementation Arrangements (a) The reference to Part 2(a)(i) olthe Project in Section 1.A.4 ofSchedule 2 is replaced by a reference to Part l(b)(i).
(b) The reference to Part 2(d) ofthe Projecl in Section t.A.5 ofSchedule 2 is replaced by a reference to Part 2(a)(ii).

(c) The references to Part 2(e)(iixD) of the Project in Section I.A.5 and Section I.D of Schedule 2 is replaced by a reference to Pan 2(bXiiiXD).

(d) The references to Part 2(d) ofthe Project in Section II.B.5 of Schedule 2 is replaced by a reference to Part 2(axii).

Withdrawals of the Proceeds of the Financing.
Section IV.A.2 is amended to read a-s follows: The following table specifies the categories of Eligible Expenditures that may be financed out ofthe proceeds ofthe Financing ("Category"), the allocations ofthe amounts ofthe Financing to each Calegory, and the percentage ofexpenditures to be financed for Eligible Expenditures in each Category: Amount of the Financing Allocated (expresscd in SDR) 7,400,000 Category (l ) Goods, non-consulting seryices, consultants' services, Training and Operating Costs under Parts l, 2(axi) and (iii), (b)(i), (ii) and (iiiXA), (B) and (C), and i ofthe Proj ect (2) NSA Sub-Grants under Paft z(bxiiiXD) olthe Project 90,000 I I Percentage of Expcnditures to be Financed (inclusive ofTaxes) Such percentage of Annual Work Plan Expenditures as the Association may determine for each Fiscal Year and communicate to the Recipient I I Such percentage of Annual Work Plan Expenditures as the Association may determine for each Fiscal Year and communicate to the Recipient fs -32- 4 r0.000 (3) Goods, non-consulting services, consultants' services, Training and Operating Costs under Part 2(axii) ofthe Project Such percentage of Annual Work Plan Expenditures as the Association may determine for each Fiscal Year and communicate to the Recipient TOTAL AMOUNT 7.900,000 1 Closing Date.
Section IV.B.2 is amended to read as follows: ryk- I3,!i .J +l \l it (\ i 1tr7 i\