29-Nov-2021
                                                               ______________________, 2021


Honorable Abdirahman Duale Beileh
Minister of Finance
Ministry of Finance and Planning
Villa Somalia
Mogadishu, Somalia



                  Somalia: Recurrent Cost and Reform Financing Project
                      SMPF Grant Nos. TF0A0534 and TF0A6971
                           Amendment to the Grant Agreement

Excellency:

        We refer to the Grant Agreement (“Agreement”) between the Federal Republic of
Somalia (“Recipient”) and the International Development Association (“World Bank”) acting as
administrator of the Somalia Multi-Partner Fund (SMPF) dated June 29, 2015, as amended;
related to above mentioned Project. We also refer to your letter dated November 1, 2021,
requesting the World Bank to amend certain provisions of the Agreement.

        The capitalized terms used in this amendment letter (“Amendment Letter”) and not
defined herein have the meaning ascribed to them in the Agreement, as applicable.

       We are pleased to inform you that the World Bank agrees to your request and proposes to
amend the Agreement as follows:

1.      The table set forth in Section IV.A.2 of Schedule 2 to the Grant Agreement is amended as
        set forth in the Annex to this Amendment.

        All the other provisions of the Agreement, except as herein amended, shall remain in full
force and effect.
                                              -2-


         Please indicate agreement to the foregoing, on behalf of the Recipient, by countersigning
and dating the form of confirmation on the two original copies of this letter and returning one
original, as countersigned, to us. Upon receipt by the World Bank of the copy of this letter
countersigned by the Recipient, this Amendment shall become effective as of the date of its
countersignature.

                                            Sincerely,

                    INTERNATIONAL DEVELOPMENT ASSOCIATION
                   (acting as administrator of the Somalia Multi-Partner Fund)




                            By: ____________________________
                                         Keith Hansen
                   Country Director for Kenya, Rwanda, Somalia and Uganda
                               East and Southern Africa Region




CONFIRMED:

FEDERAL REPUBLIC OF SOMALIA

By:




________________________________
Authorized Representative
         Abdirahman Duale Beileh
Name: __________________________
         04-Dec-2021
Date:   __________________________
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                                                                                   ANNEX

          Category                Amount of the Grant   Amount of the Grant   Percentage of the
                                  TF0A0534 Allocated    TF0A6971 Allocated    Expenditures to be
                                   (expressed in USD)    (expressed in USD)       Financed

(1) Salaries for Eligible Civil     42,123,381.90          28,501,594.37      100% of the amount
    Servants and Eligible Staff                                                   disbursed
    and Young Graduates,
    Eligible       Non-Salary
    Recurrent Costs, goods,
    non-consulting services,
    consultants’      services,
    consultants’      services,
    Training and Operating
    Costs under Part A, B.2,
    C.1 and D.1 of the Project

(2) Sub-Project Grants for            8,876,618.10         6,498,405.63             100%
    Salaries for Eligible Civil
    Servants and Eligible Staff
    and Young Graduates,
    Eligible        Non-Salary
    Recurrent Costs, goods,
    non-consulting services,
    consultants’      services,
    Training and Operating
    Costs under Part B.1, C.2
    and D.2 of the Project

TOTAL AMOUNT                           51,000,000           35,000,000