Selected Project Covenants (1) Loan Agreement: Article IV: Subloan Section 4.02 (d): The Qualified Sub borrower shall carry out and operate the Qualified Subproject in compliance with ADB’s safeguards requirements and the ESMS as specified in Schedule 3 of this Loan Agreement Schedule 3: Execution of Project; Financial Matters Safeguards and Social Issues: Para 7: The Borrower shall ensure that each Qualified sub borrower ensures that (a) all land and rights-of way required for subprojects are obtained in a timely manner, (b) the provisions of the environmental management plan (EMP), RP and/or IPP are implemented in accordance with the requirements of the ESMS, (c) all compensation and resettlement assistance is given to the affected persons prior to their dispossession and displacement and commencement of civil works, (d) EMP, RP, and/or IPP are updated upon completion of the detailed design and submitted to NCRPB for approval prior to commencement of civil works, (e) adequate staff and resources are committed to supervising and monitoring implementation of the EMP, RP, and/or IPP, and (f) if a subproject causes significant (Category E1/S1) environment, involuntary resettlement, or indigenous peoples impacts in accordance with ESMS, a qualified and experienced external expert acceptable to ADB and the Borrower is engaged by the Qualified Sub borrower to monitor and evaluate results of implementation of EMP, RP, and/or IPP and forward semiannual report to ADB and Borrower SR 3: Objectives: To design and implement projects in a way that fosters full respect for Indigenous Peoples’ identity, dignity, human rights, livelihood systems, and cultural uniqueness so that they receive culturally appropriate social and economic benefits, do not suffer adverse impacts as a result of projects, and can participate actively in projects that affect them Scope and Triggers: The Indigenous Peoples safeguards are triggered if a project directly or indirectly affects the IP or their territories or natural or cultural resources that Indigenous Peoples own, use, occupy, or claim as an ancestral domain or asset. Indigenous Peoples is used in a generic sense to refer to a distinct, vulnerable, social and cultural group possessing the following characteristics in varying degrees: (i) self-identification as members of a distinct indigenous cultural group and recognition of this identity by others; (ii) collective attachment to geographically distinct habitats or ancestral territories in the project area and to the natural resources in these habitats and territories; (iii) customary cultural, economic, social, or political institutions that are separate from those of the dominant society and culture; and (iv) a distinct language, often different from the official language of the country or region.

Selected Project Covenants (2) Framework Financing Agreement (FFA) Schedule 3 – Implementation Framework: E. Safeguards  Para 12 (ii): NCRPB will ensure adequate staff and expertise to implement the ESMS. NCRPB will ensure ESMS implementation and will prepare and submit annual reports on the implementation status of the ESMS. Corrective action plans (CAP) will be agreed on by NCRPB and ADB if the ESMS is not functioning properly. NCRPB will ensure implementation of any agreed CAP  Para 12 (iii): Each sub borrower is required by NCRPB to ensure that (a) all land and rights-of way required for subprojects are obtained in a timely manner, (b) the provisions of the environmental management plan (EMP), RP and/or IPP are implemented in accordance with the requirements of the ESMS, (c) all compensation and resettlement assistance is given to the affected persons prior to their dispossession and displacement and commencement of civil works, (d) EMP, RP, and/or IPP are updated upon completion of the detailed design and submitted to NCRPB for approval prior to commencement of civil works, (e) adequate staff and resources are committed to supervising and monitoring implementation of the EMP, RP, and/or IPP, and (f) a qualified and experienced external expert acceptable to ADB and NCRPB is engaged by the sub borrower to monitor and evaluate results of implementation of EMP, RP, and/or IPP and forward reports to ADB and NCRPB as required

Selected Project Covenants (3) Facility Administration Manual (FAM): Chapter VII. Safeguards Para 48. Functions of Environment and Social Management Cell (ESMC) Maintain and update ESMS Screen, categorize and review sub project Ensure to avoid/ minimized impacts Ensure required safeguards document prepared Set loan conditionality to include safeguards requirements fulfilled (no award of civil works contracts until compensation paid) Monitor subprojects to ensure compliance Provide training and capacity building to sub borrowers Provide information to ADB Assist external ESMS auditors to conduct annual audits Ensure monitoring and reporting requirement are undertaken Chapter VIII. Performance Monitoring, Evaluation, Reporting and Communication Para 75. Safeguards monitoring. Monitoring and reporting of safeguards compliance are described in detail in the ESMS. Annual ESMS Audit will also be undertaken by an independent auditor engaged by NCRPB

Project References Loan Agreement (LA) Framework of Financing Agreement (FFA) Facility Administration Manual (FAM) Environment and Social Management System (ESMS) ADB SPS (2009) ADB Accountability Mechanism (2012)