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CREDIT NUMBER 5266-CV

FINANCING AGREEMENT

(Transport Sector Reform Project)

between

RIPUI LIC OF CAPE VERDE

and

11ITERNATIONA] DEVELOPMENT ASSOCIATION

Dted -J .-I 1, 2013

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CREDIT NUMBER 5266-CV

FIN kNCING AGREEMENT

AGREMENT daied uo 1!\f 2013, entered into betweenREPUBLIC OF CAPE 'fERDE U("Recipient") and INTERNATIONALDEVELOPMENT ASSOCIATIC N ("Association"). The Recipient and the Associationhereby agree as follows:

ARTICLE I - GE qERAL CONDITIONS; DEFINITIONS

1.01. The 3eneral Condition! (as defined in the Appendix to this Agreement)const tute an integral part of this Agreement.

1.02. Unless the conti,xt req iires otherwise, the capitalized terms used in thisAgrelment have :he mea iings ascribed to them in the General Conditions or inthe Appendix to thiis Agrc ement.

AR'I ICLE II - FINANCING

2.01. The Association igres t> extend to the Recipient, on the terms and conditionsset forth :r refer -ed to iii this Agreement, a credit in an amount equivalent totwelve million sever hundred thousand Special Drawing Rights(SDR 12,700,000i (variot sly, "Credit" and "Financing") to assist in financing theproje9t described in Schedule 1 to this Agreement ("Project").

2.02. The F-ecipient mt.y with raw the proceeds of the Financing in accordance withSecticn IV of Sch edt le 2 'o this Agreement.

2.03. The Iaximum Commitment Charge Rate payable by the Recipient on theUnwi hdrawn Financing Ilalance shall be one-half of one percent (1/2 of 1%) perannurm.

2.04. The Service Char ge payable by the Recipient on the Withdrawn Credit Balanceshall be equal to three-fot rths of one percent (3/4 of 1%) per annum.

2.05. The Payment Dats are Jt ne 15 and December 15 in each year.

2.06. The principal an ou it o'the Credit shall be repaid in accordance with therepayment schedi le set fc rth in Schedule 3 to this Agreement.

2.07. The Payment Curency is Euro.

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ARTI CLE III - PROJECT

3.01. The Re- ipient declare!; its -ommitment to the objective of the Project. To thisend, the Re-ipient ,hall car y out the Project in accordance with the provisions ofArticle V of the Goneral C )nditions.

3.02. Withou limitation upon the provisions of Section 3.01 of this Agreement, andexcept as the Recipient an( the Association shall otherwise agree, the Recipientshall ersure that the Project is carried out in accordance with the provisions ofSchedu e 2 to this Agrcemeift.

ARTICLE ) V -- REMEDIES OF THE ASSOCIATION

4.01. The A4ditional Event of Suspension consists of the following, namely thatResolut on No. 33,'2005 v hich established FAMR shall have been amended,suspend ed, abrogaled or N,aived so as to materially and adversely affect theability c f FAMR to perforrr any of its respective obligations under the Project.

ARTICLE V -- EFFECTIVENESS; TERMINATION

5.01. The Effectiveness De .dlin: is the date ninety (90) days after the date of thisAgreement.

5.02. For purmoses of Se tioi 8.C5(b) of the General Conditions, the date on which theobligati:ns of the R eci )ien under this Agreement (other than those providing forpayment obligations) shall terminate is twenty (20) years after the date of thisAgreement.

ARTICLE VI - I EPRESENTATIVE; ADDRESSES

6.01. The ReCipient's Representative is the minister at the time responsible for financeand planning.

6.02. The Recipient's Addre:,s is:

Minister of Finance and PlanningMinistry of Fir ance and PlanningAvenida Aiilc ar C ibralC.P. 30, Pr4iiaCabo Verd(

Cable: Telex: Facsimile:

COORDENACAO 608 MCECV (238) 61 38 97

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6.03. The Association'3 Aidre;s is:

Internati ina Dei elopment Association1818 H E,treet, N W.Washing :on. D.C. 20433United S ate3 of kmerica

Cable: Telex: Facsimile:

INDEVA S 248423 (MCI) 1-202-477-6391Washing on, D.C.

AGREED at Dis rici of 1 olumbia, United States of America, as of the day andyear first aboie wN ritten.

REPUBI IC OF CAPE VERDE

Ey

Authorized Representative

Name: t4%jj% Aq. FqtAna, Lima A t-F

Title: Gb A c&4y

INTERN kTIONAL DEVELOPMENT ASSOCIATION

By

Authorized epresentative

Name: VYO. sog We

Title: Co Wr H tb lY ae er

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SCHEDULE 1

I roject Description

The ob jective of t)e Projoct is to support the Recipient's efforts to improveefficiency and managemet of it national road assets and lay the groundwork fortransport sector SOE reforsti.

The Pr ject consisti. of the oilowing parts:

Part A: Road Aoset Preservaticn

I. Carrying out, undl:r :he erms of performance-based maintenance contracts(PBMC) or selected r )ads in the islands of Santo AntAo, Maio, Fogo and SdoNicolau of: (a) r habilita ion works; and (b) routine maintenance includingemergency works a id ieinforcement.

2. Monito ing and eva lual ion of PBMC performance.

3. Carrying out of smOll-5 cale rehabilitation works on the national road network, asemergency :epairs t at are i ot covered under PBMC.

Part B:Institutioal Strengtl eni igaiid Project Management

Ensure ihe preservai:ior of t e Recipient's road assets including through:

I. the develop -nent anJ operat ionalization of a road and bridge management systemthrough the yearly collecti n and analysis of data relating to the condition ofbridges and roads;

2. the strengthening of the in .titutional capacity of entities under the aegis of theMIEM, inc.uding tie [E aid FAMR, through the carrying out of capacity-building activities;

3. the pro ision of st pport to the Recipient to enforce legislation on axle loadcontrol 1hroigh, intr a(ia, tie provision of weighbridges; and

4. the provision of suppoit to he PCU including through the financing of Training,Operating Costs anc tho pre )aration of audits required under the Project.

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Part C: Road Sofety

Suppon the Recipi nt n thr execution of the 2011-2020 National Road SafetyPlan, inluding through:

1I the development arid iple nentation of a road safety action plan;

. the dev lopment ani inple: nentation of an accident database and monitoring andevaluation (M&E) ystzm;

2. the devlopment of a n itior al road safety observatory;

1. the draf:ing of a hi hw iy code for the Recipient;

5. the enforcement of -oad saf :ty controls through the provision of radars for speedlimit enforcements ind alcc hol breath analyzers;

6. the enh ncement of DGMT and IE's institutional capacity in the area of roadsafety, including ro d engineering standards to improve road safety; and

7. the carrying out of .warene s raising campaigns on road safety.

P'art D: Inter-island Transp rt Strategy

Support to improve the: (a) juality of inter-island sea and air transport services;(b) management of por:s an I airports; and (c) efficiency of transport SOEs,including through:

1. the strengthening o1F SOE ownership and oversight functions through, inter alia,the carr ring out of nst tutic nal capacity-building activities and the preparation ofperformance agreei ien :s be tween the MOFP and each of TACV, ENAPOR andASA, tl e monitori!ig )f SOE performance, the review of audit reports, and themonitoring of fiscal risks;

2. laying the groundw )rk for I he concession of sea transport services, delegation ofport/airport activiti s to the private sector, improvement of the financial situationof TA_V, ENAPOR and ASA, through the carrying out of studies and theprovision of technical assist mnce; and

3. support to DECM thr)ugh the provision of advisory services to redefine itscurricul im and the Iro-isio 1 of teaching material specific to the maritime sector.

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SCHEDULE 2

.>roject Execution

Section I. Impleren ation Arrangements

A. Instituional Arra ige men :s

Project Coordin tion Unit (CU1)

(a) The Recipint shal maintain the PCU throughout the implementation ofthe Project, wiih fu ictions and resources satisfactory to the Association.

(b) Without liflitation to the provisions of paragraph (a) above, the PCUsha.1 havw espcnsibility for the day-to-day coordination andmanagemer t cf th, Project, including overall responsibility for, interalia: (i) ens irir g tir iely implementation of the Project in accordance withthe PIM; (1i) ?rep tring Annual Work Plans and Budgets and annualProcureme t lans (iii) overseeing Project activities under its directresponsibil ty and those under the responsibility of other agenciesinvolved in Project implementation; (iv) managing Project finances; (v)maintaining co isoli dated Project accounts; (vi) ensuring adherence to theSafeguard )ocume its by all agencies involved in the implementation ofthe Project; (vii) developing and maintaining a system of monitoring thePro ect's kly perf rmance indicators; and (viii) ensuring coordinationmong ager cie; inv Dlved in Project implementation, as needed.

(c) Without lirfitation to the provisions of paragraph (a) above, the PCUshall be hdaded b, a Project coordinator who shall be assisted by aPro ect accouni ant.

B. Performnance-base( I 'Maintenance Contracts

To faciltate the imp lenient tion of Part A. I of the Project, the Recipient, throughIE, shal enter into, anc thei eafter maintain throughout the implementation of theProject, a numbeA of P rformance-based Maintenance Contracts (each a"PBMC '), in form and sub 3tance satisfactory to the Association, with a privatesector contractor (.aci a "Contracting Entity") selected in accordance withSection III of Schelulc 2 to this Agreement, pursuant to which the ContractingEntity shall implem mt Part A.1 of the Project.

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C. Implenentation A rra ngei ients

Project Implement tiotn Ma iual (PIM)

(a) The Recipint shall carry out the Project, and cause it to be carried out, inaccordance wiih th, Project Implementation Manual, provided, however,thal, in the event o'any conflict between the provisions of the PIM andthose of thi; A greei nent, the provisions of this Agreement shall prevail.

(b) Except as t ie Asso:iation shall otherwise agree in writing, the Recipientshall not antend or vaive any provision of the PIM.

2. Annual Work Plan and Bu Igets

The Rec ipient shall prepare and adopt, not later than November 30 of each FiscalYear during the m,np emeitation of the Project, or such later date as theAssociation may ag ee. an n unual work plan and budget ("Annual Work Plan andBudget'), ii form anc sul stance satisfactory to the Association, containing adescription of all al:tivities (and associated budgeted costs) to be carried out inthe following Fisca Year, oxcept that for the first year of implementation of theProject, it shall coler the )eriod from the Effective Date up to and includingDecember 31, 2013

D). Monito ing Consu taiits

The Recipient shall engage, in accordance with the provisions of Section III ofSchedule 2 to thi, Agree nent, and thereafter maintain, no more than fourMonitoring Consul Iant3, as agreed between the Recipient and the Association,whose terms of ref rence, lualifications and experience shall be satisfactory tothe Association, to moaitor and evaluate the Contracting Entities' performance,and ensure the acOievemei t of each PBMC requirement within the stipulatedtime anj budget, an d the qt ality of the final delivery of works under Part A.1(a)of the Project.

E. Anti-Corruption

The Recipient shall en:;ure :hat the Project is carried out in accordance with theprovisions cf the Ar ti-Corn ption Guidelines.

1F. Safeguard Instrulner ts

I1. The Rec ipicnt shall ensure :hat the Project is carried out in accordance with theSafegua-d Documeits. To t iat end, the Recipient shall ensure that the followingactions ire taken in a manner acceptable to the Association:

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(a) if an ESNP, othe- than the ESMP disclosed in the territory of theRecipient nd at tl e Association's Infoshop on April 3, 2013, shall berequired fqr any Iroject activity on the basis of the ESMF: (i) suchESMP sha 1 be pr -pared in accordance with the requirements of theESMF, pre! approv d by the Association, disclosed locally and furnishedto tie Assol:iat ion; md (ii) said activity shall be carried out in accordancewith such FSN/P, a approved by the Association; and

(b) if a RAP s iali be required for any Project activity on the basis of theRPF: (i) sa d RAP hall be prepared in accordance with the requirementsof the RPV, pre-a )proved by the Association, disclosed locally andfurnished tv the As sociation; and (ii) no works under said activity shallcommence int I all measures required to be taken under said RAP, priorto the initia ior of s iid works, shall have been taken.

2. Without limitation to ts o her reporting obligations under this Agreement andunder Section 4.08 of the C eneral Conditions, the Recipient shall include, in theProject RepDrts ref rred to n Section II.A of this Schedule, adequate informationon the implement tion of said Safeguard Documents, giving details of: (a)measures taken in iurthera ice of said Safeguard Documents; (b) conditions, ifany, whlich interferp oi thrt aten to interfere with the smooth implementation ofsaid Safeguard Do uments and (c) remedial measures taken or required to betaken to address sach coi ditions and to ensure the continued efficient andeffective implemeniation of said Safeguard Documents.

3. The Recipient shall ensure that all terms of reference for any technical assistance,studies and analyti al vorb under the Project shall be fully consistent with theAssociation's envir onn- enta land social safeguard policies.

Section H. Proect M nitnmimr, Reporting and Evaluation

A. Project Reports

The Recipient shall mcnitoi and evaluate the progress of the Project and prepareProject Teports in qcordan :e with the provisions of Section 4.08 of the GeneralConditions and on the bas s of indicators acceptable to the Association. EachProject Report shaO1 c*ver the period of one calendar semester, and shall befurnished to the As ociatior not later than one month after the end of the periodcovered by such report.

B. Financial Managetaeint, Financial Reports and Audits

The Reqipient shalli maintain or cause to be maintained a financial managementsystem in accorda ice wit i the provisions of Section 4.09 of the GeneralConditiQns.

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2. Withouf limitation )n Ihe p -ovisions of Part A of this Section, the Recipient shallprepare and furnis to the iLssociation as part of the Project Report not later thanone month after tlie end cf each calendar quarter, interim unaudited financialreports for the Proj ct -ove ing the quarter, in form and substance satisfactory tothe Association.

3. The Recipient shal! ha ie it, Financial Statements audited in accordance with theprovisicns Df Sect on 4.05(b) of the General Conditions. Each audit of theFinancial Statemerts shall cover the period of one fiscal year. The auditedFinancial S:atemen s f)r e ch such period shall be furnished to the Associationnot later than six (6 month: after the end of such period.

Section III. Procurei nt

A. General

1 . Goods, Works a d Non consulting Services. All goods, works and non-consulting services req jired for the Project and to be financed out of the proceedsof the Financing sh ill e pi ocured in accordance with the requirements set forthor referred to in Se tion I o 'the Procurement Guidelines, and with the provisionsof this Section.

2. Consul,ants' Services Al consultants' services required for the Project and tobe finarced out of t e proc eds of the Financing shall be procured in accordancewith th- requirem nts set forth or referred to in Sections I and IV of theConsult nt Guideliles, and vith the provisions of this Section.

3. Definitions. The caritali.,ed terms used below in this Section to describeparticul r procurer ent me hods or methods of review by the Association ofparticulhr contracts re er to the corresponding method described in Sections IIand III of :he Pro :uremen t Guidelines, or Sections II, III, IV and V of theConsult,nt Guidelit es, as th e case may be.

B. Particular VethoOs of Procurement of Goods, Works and Non-consultingServices

International Co upetiti e Bidding. Except as otherwise provided inparagraph 2 below, goods, vorks and non-consulting services shall be procuredunder contracts awarded on the basis of International Competitive Bidding.

2. Other Miethods or Procurement of Goods, Works and Non-consultingService. The folko wir g me thods, other than International Competitive Bidding,may be used for picurem nt of goods, works and non-consulting services forthose coItrafts spec fled in 1 he Procurement Plan:

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Procu eni ent Me thodJ

(a) National Competi ive Bidding (NCB) (*)

(b) Shopping

(c) Direct Co1itractinj

(d) Linited Ir terniatio ial Bidding

(*) Additional Pr,)ced ures for National Competitive Bidding

(a) Standard 1id ling Documents: All standard bidding documents to beused for th : Projec shall be found acceptable to the World Bank beforetheir use do ring the implementation of Project.

(b) Eligibility: No resti iction based on nationality of bidders and/or origin ofgoods shall ap )ly , nd foreign bidders shall be allowed to participate in[NC B with( ut app ication of restrictive conditions, such as, but notlimited to, I eing do niciled in Cape Verde.

(c) IDomestic !'referer ce: No domestic preference, nor any other kind ofreferential tre:atmi!nt, shall be given to domestic bidders and/or to

lomestically manul ctured goods.

(d) Bid prepa ation time: Bidders shall be given at least thirty (30) daysfrom the d rte of in vitation to bid or the date of availability of bidding0ociments, whiche'er is later, to prepare and submit bids.

(e) Extension if Validity of Bids: Any extension of bid validity, if justifiedby -xcepti nal cir umstances, shall be requested in writing from allbidders befi ire :he [ id validity expiration date, and it shall cover only the

inimum period required to complete the evaluation and award of theontract.

(f) Cancellati n cf Bilding Process and Disclosure of Bids: In case ofcancellatio of a bidding process and re-bidding, the bids submitted inthe cancelkd Hiddi ig process shall not be disclosed to the public andshall not be male a-ailable to public consultation during the new biddingprocess.

(g) Bid Evaluation and Award of Contract: A contract shall be awarded tohe substan ially re ponsive and lowest evaluated bidder provided that

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such biddr rieet, the qualification criteria specified in the biddingdocuments No scoring system shall be allowed for the evaluation ofbids. No I egotiati:ns shall be permitted, and a bidder shall neither bereqjired ror pernitted, as a condition of award, to undertakeresponsibil ties for work not stipulated in the bidding documents orotherwise t1 modif, the bid as originally submitted.

(h) Frqiud aid Coi ruption: In accordance with the ProcurementGuidelines, each bi iding document and contract shall include provisionsstating the Nold E ank's policy to sanction firms or individuals found tohave enga ed in f aud and corruption as set forth in the ProcurementGuidelines.

(i) Inspection and Audit Rights: In accordance with the ProcurementGuidelines, each bi Iding document and contract shall include provisionsstating the World I lank's policy with respect to inspection and audit ofaccounts, r cords a: id other documents relating to the bid submission andcontract pej for nan(e.

C. Particular Method s of Prc curement of Consultants' Services

1 Quality- and C st- >ase I Selection. Except as otherwise provided inparagraph 2 beloo', const Itants' services shall be procured under contractsawarded on the basis of Qu, lity- and Cost-based Selection.

2. Other M1ethods of Proct rement of Consultants' Services. The followingmethods, other th n Qua ity- and Cost-based Selection, may be used forprocurement of cor sul ants' services for those contracts which are specified inthe Procurement Plhn:

Procurement Mel hod

(a) Selection Uased or Consultants' Qualifications

(b) Least-Cosj Selection

(c) Single Sot rce Seltction

(d) Individual Co isult ints

(e) Se.ection Lascd on a Fixed Budget

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). Review by the Ass )ciatioin of Procurement Decisions

The Pr urement P an shal set forth those contracts which shall be subject to theAssocijion's Prior Review. All other contracts shall be subject to Post Reviewby the ssociation.

Section IV. AiLIdraw ilof the Proceeds of the Financing

A. General

1 The Recipient may wi:hdr, w the proceeds of the Financing in accordance withthe provisions of Article I of the General Conditions, this Section, and suchadditional instructi(ns Es th. Association shall specify by notice to the Recipient(including the "Wcrld Ban- Disbursement Guidelines for Projects" dated May2006, as revised frc m lime to time by the Association and as made applicable tothis Agrerrent purtuant to ;uch instructions), to finance Eligible Expenditures asset fortly in paragraph 2 belk w.

2. The following table specifi s the categories of Eligible Expenditures that may befinanced out of the pro,eed of the Financing ("Category"), the allocations of theamounts of the Fina nci ig tc each Category, and the percentage of expenditures tobe financed for Eligibk Exr enditures in each Category:

Amount of the Percentage ExpenditureCredit

Components Allocated in SDR to be Financed

Goods, works, except for works 12,700,000 100%under Part A, 1(b) of the Pro ect,Training, Workshops an St idyTours, consultants' servii,es,non-consulti0g services lindOperating Costs

Total Amount 12,700,000

B. Withdrawal Condi tions; V 7ithdrawal Period

Notwithstanding the pr)visi)ns of Part A of this Section, no withdrawal shall bemade for payments nac e pr or to the date of this Agreement.

2 The Closing Date is Jur e 30, 2019.

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SCHEDULE 3

R !payment Schedule

Date Paymimt Due Principal Amount of the Creditrepayable

-(expressed as a percentage)*On each June 1 and December 15:

commencing December If, 2023, o and 1%including June 15, 2033commencing December 15, 20-3, t and including 2%June 15, 2053

* The percentages represent tfe percentage of the principal amount of the Credit to berepaid, except as the Association may otherwise specify pursuant to Section 3.03(b) ofthe General Conditions.

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APPENDIX

Section I. Definition

I. "Annual Work Plaii and B Lidget" means the Recipient's work plan and budgetprepared annually for the P -oject in accordance with Section I.C.2 of Schedule 2to this Agreement.

2. "Anti-Corruption Giuidelir es" means the "Guidelines on Preventing andCombatOng Fraud aiid Corr iption in Projects Financed by IBRD Loans and IDACredits !nd Grants"', dated October 15, 2006, and revised in January 2011.

3. "ASA" means Aerc poi tos < Seguranqa Airea, the airports and air safety agencyestablished further :0 Decree No. 3/2001 of June 4, 2001, and published in theBoletim Oficial No. 16, (IS brie).

4. "Boletith Ofcial" mr ears the Recipient's Official Gazette.

5. "Category" means ca :egoi y set forth in the table in Section IV of Schedule 2 tothis Agreement.

6. "Consultant Guidelne," m,-ans the "Guidelines: Selection and Employment ofConsultants under IBFD loans and IDA Credits and Grants by World BankBorrowers" dated Jinuary 2)11.

7. "Contracting Entity" mean; a private sector contractor that shall enter into aPBMC with the Recipicnt.

8. "DECM"m'eans Depariame, to de Engenharia e Cidncias do Mar, the departmentof engineering and naritim, sciences within the Recipient's University of CapeVerde.

9. "DGMT" means D,recgdo 'eral de Mobilidade e Transportes, the Recipient'sgeneral directorate 16r imobi ity and transport.

10. "Displaced ?ersons" m.-ans persons who, on account of an involuntary taking ofland under the Project, had or would have their: (a) standard of living adverselyaffected; or (b) rig it, title or interest in any house, land (including premises,agricultural and gra zin:, lar d) or any other fixed or movable asset acquired orpossessed, Lemporarily or permanently; or (c) access to productive assetsadversely affected, temporai ily or permanently; or (d) business, occupation, workor place of esidence. or habitat adversely affected, temporarily or permanently;and "Displaced Person' me, ns any of the Displaced Persons.

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11. "ENAPOR" means Erapre, a Nacional de Administraqdo dos Portos, the entityresponsible for the adriinis ration of the Recipient's ports, established further toDecree No.4/2001, dated . une 4, 2001, and published in the Boletim OficialNo. 16, (I S6rie) .

12. "Environmental and IEocia Management Framework" or "ESMF" means theframewprk, disclos ed n th- territory of the Recipient and at the Association'sInfoshop on April 3, 2013, n form and substance satisfactory to the Association,setting out modaltie:; to be followed in assessing the potential adverseenvironmental and social inpact associated with activities to be implementedunder the Project, a!id ihe n easures to be taken to offset, reduce, or mitigate suchadverse,impact.

13. "Environmental anc Sccial Vanagement Plan" or "ESMP" means the Recipient'splan, disclosed in tie territc ry of the Recipient and in the Association's Infoshopon April 3, 2013, salisfactory in substance to the Association, prepared inaccordance with th, ESMI, setting out appropriate mitigation, monitoring andinstitutional measui es desiEned to mitigate potential adverse environmental andresettlemeni impact s, cffsel them, reduce them to acceptable levels or enhancepositive imacts, as the s;.me may be amended from time to time with theagreement of the Assoc ation; and this term shall include such otherenvironmental and !ocial mn agement plans, acceptable to the Association, to beprepared in accord nce wit i the provisions of Section I.F. 1(a) of Schedule 2 tothis Agreement.

4. "FAMR' means Fundo Aulonomo de Manutengdo Rodovidria, the Recipient'sroad fund, established iurth:r to Resoluqdo no 33/2005, dated July 25, 2005, andpublished in the Boietir Of ial Nr.30 (I Serie).

5. "Fiscal Year" mean. th, Re, ipient's fiscal year from January 1 to December 31.

6. "General Conditio is" me ins the "International Development AssociationGeneral Conditions for Crec its and Grants", dated July 31, 2010.

17. "IE" moans Instituro de j,stradas, the Recipient's road agency, establishedfurther to Resoluqdc no 10/2 )03, dated June 3, 2003, and published in the BoletimOficial Nr. 15 (I S6rie)

18. "MC" or "Monitoriig o:omultant" means the consultant selected in accordancewith the provisions of Secti )n III of Schedule 2 to this Agreement referred to inSection I.D of Schedule 2 to this Agreement.

19. "MIEM" means MVinitiric das Infra-estruturas e Economia Maritima, theRecipient's Ministry of Infr, structure and Maritime Economy.

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20. "MOFP" rmeans Mvinistir o das Finanqas e Planeamento, the Recipient'sMinistry of Financt an I Ph nning.

I 1. "Operating Costs" means ti e incremental expenses, which would not exist absentthe Project, incuned on ccount of Project implementation and based on theAnnual Work Plan .nd Budget approved by the Association pursuant toSection I.C.2 of Scliedule ' to this Agreement, on account of office, salaries forincremental office suplbort <taffduring Project implementation period, equipmentand supplies, vehicle opetation and maintenance, maintenance of equipment,communicaLion anc in ;urai ce costs, office administration costs, utilities, rental,consumables, accommodati )n, banking charges, advertising expenses, travel andper diem , but excluding sah ries of the Recipient's civil servants.

22. "PBMC" or "Performance -based Maintenance Contract" means a multi-yearmaintenance contrict ente red into by IE and a Contracting Entity, whichobligates the Contricti rig Entity to carry out, as a single package, all phases ofroad rehabilitation and mi intenance work, from design and programming toexecution of such works, <n the islands of Santo Ant5o, Maio, Fogo and SdoNicolau.

23. "PCU" means Project coordinating unit.

24. "Procurement Guidolin,-s" r ieans the "Guidelines: Procurement of Goods, Worksand Non-coisulting Se -vice s under IBRD Loans and IDA Credits and Grants byWorld 3ank Borrowers" dai ed January 2011.

25. "Procurement Plan" n eans the Recipient's procurement plan for the Project,dated Marc) 18, 2113, and referred to in paragraph 1.18 of the ProcurementGuidelioes and para gra)h 1 25 of the Consultant Guidelines, as the same shall beupdated from time t) time ii accordance with the provisions of said paragraphs.

26. "PIM" or "Project Im letr entation Manual" means the manual, in form andsubstance acceptab e to th. Association, adopted by the Recipient to ensureeffective implementati:)n (f the Project, containing detailed guidelines andprocedures in the aras of n onitoring and evaluation, procurement, coordination,social and environnmenial s;.feguards, financial management, administrative andaccounting procedures. anc such other administrative, financial, technical andorganizational arrangement, and procedures as shall be required for the effectiveimplementalion of the Froje :t.

27. "Resettlement Policy framework" or "RPF" means the Recipient's frameworkdisclosed in the tenritory ol the Recipient and at the Association's Infoshop onApril 9, 2013, in form and ;ubstance satisfactory to the Association, setting outguidelines, procedu -es, timtables and other specifications for the provision of

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compensatiDn, rehabilitatio i and resettlement assistance to Displaced Persons, asamended from time to :ime with the prior written consent of the Association.

18. "Safeguard Docunment;" reans one or more of the following documents: theEnvironmental anc Social Management Framework, the Resettlement PolicyFramework, the EnN iron nental and Social Management Plans and theResettlement Actio i Plans; each a "Safeguard Document"..

29. "Resettlement ActIon PlEn" or "RAP" means the Recipient's document,acceptable to the Associat on, prepared and disclosed in accordance with theResettlement Polic,, Fiame work, which, inter alia: (i) contains a census surveyof Displaced Perscons and valuation of assets; (ii) describes compensation andother resett ement assi;tance to be provided, consultation to be conducted withDisplaced Persons tboit acceptable alternatives, institutional responsibilities forthe implem-ntation and procedures for grievance redress, and arrangements formonitoring and ev ilu,tion and (iii) contains a timetable and budget for theimplementation of s ucf me,.sures.

30. "SOE" means a staie-ownei enterprise, and this term includes TACV, ENAPORand ASA, a 1 of which )einl; state-owned enterprises.

31. "TACV" means "I,anipor es Aireos do Cabo Verde", the Recipient's nationalairline established in 958 which was designated as the national carrier andbecame a public comrany in 1983, further to Decree-Law No. 21/2000 datedMay 15, 2000, publ shed in the Boletim Official No. 14, (I S6rie).

32. "Training, Workshcps and 3tudy Tours" means the Recipient's costs associatedwith the training, works hop:, and study tour participation of personnel involved inProject activities, a sp -cifi, d in the Annual Work Plan and Budget approved bythe Association pursuant tc Section I.C.2 of Schedule 2 to this Agreement, forreasonable expenditurcs ((ther than expenditures for consultants' services),including travel and subsi: tence costs for training, workshop and study tourparticipants, costs issociati:d with securing the services of trainers, rental oftraining anc works iop fac lities, preparation and reproduction of training andworkshop traterials and ot er costs directly related to training course, workshopor study tou- prepar ition an I implementation.