OFICiAL DOCUMENTS The World Bank 1818 H Street N.W. (202) 477-1234 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Washington, D.C. 20433 Cable Address: INTBAFRAD INTERNATIONAL DEVELOPMENT ASSOCIATION U.S.A. Cable Address: INDEVAS July 11, 2016 Mr. L Minh Hung Governor State Bank of Vietnam Hanoi Socialist Republic of Vietnam Dear Governor Hung, Subject: Results-based Rural Water Supply and Sanitation under the National Target Program Amendment to the Financing Agreement (Credit No. 5176 -VN) We refer to the Financing Agreement dated February 22, 2013 between the Socialist Republic of Vietnam ("Recipient") and the International Development Association ("Association") ("Agreement"), for the Results-based Rural Water Supply and Sanitation under the National Target Program. We further refer to the letters dated April 17, 2015 and June 15, 2016 from Mr. Ha Hai An, Deputy Director General, International Cooperation Department, State Bank of Vietnam, on behalf of the Recipient, requesting certain modifications to the Agreement. We are pleased to inform you that the Association concurs with your request and to give effect to such request agrees to amend the Agreement as follows: 1. The second paragraph of Schedule I to the Agreement is amended to read as follows: "The Program consists of the following activities under the NTP to be carried out in the Participating Provinces from January 1, 2013 to December 31, 2018 in accordance with the Prime Minister Decision Number 1256/TTg-QHQT dated August 23, 2012:" 2. Paragraph 2 of Section IV.A of Schedule 2 to the Agreement is amended to read as follows: The following table specifies: (a) each category ("Category") setting forth a particular DLI; (b) each DLR to be achieved on the basis of said DLI; and (c) the amount of the financing allocated to each DLR, which may be drawn upon achievement of said DLR (up to a specified aggregate amount), subject to the provisions of Part B of this Section: DLI Disbursement Linked Disbursement Linked Amount of Financing Category Indicator Result Allocated (expressed in SDR) DLI 1.1 Period I Period 1 1,972,500 First DLI: First DLR: 1.1 Intentionally left 1.1 Intentionally left blank. 1.2 Number of blank. newly constructed Improved Household 1.2 At least 11000 new Sanitary L2Hines. 1HSLs. -1- Governor L Minh HLmg July 11, 2016 DLI 1.2 Period I Period 1 3,287,500 Second DLI: Second DLR: 2.1 Intentionally left 2.1 Intentionally left blank. blank. 2.2 Number of people 2.2 At least 250,000 new with access to commune- people. wide sanitation. DLI 1.3 Period 1 Period 1 1,643,750 Third DLI: Third DLR: 3.1 Number of Provincial 3.1 Eight (8) Provincial Annual Plans approved Annual Plans, one for each by Participating Participating Province; Provinces; and and 3.2 Number of program 3.2 Nine (9) Program reports disclosed to the reports (one for each public. Participating Province and one consolidated Program report from MARD) are completed in 2013. DLI 2.1 Period 2 Period 2 11,437,270 First DLI: First DLR: 1.1 Number of New 1.1 At least 51,541 new Functioning Water FWSCs; and Supply Connections; and 1.2 At least 15,000 new 1.2 Number of newly IHSLs. constructed Improved Household Sanitary Latrines. DLI 2.2 Period 2 Period 2 3,287,500 Second DLI: Second DLR: 2.1 Intentionally left 2.1 Intentionally left blank. blank. 2.2 Number of people 2.2 At least 250,000 new with access to commune- people. wide sanitation. DLI 2.3 Period 2 Period 2 1,643,750 Third DLI: Third DLR: Number of Provincial Eight (8) Provincial -2- Governor L Minh HLmg July 11, 2016 Annual Plans approved Annual Plans, one for each by Participating Participating Province; Provinces; and Number and of program reports disclosed to the public. Nine (9) Program reports (one for each Participating Province and one consolidated Program report from MARD) are completed in 2014. DLI I Number of New During Period 3 to and 47,307,230 Functioning Water including Period 6 Supply Connections (NFWSC) 288,459 NFWSCs DLI II Number of newly During Period 3 to and 17,500,000 constructed Improved including Period 6 Household Sanitary Latrines (IHSL) 100,000 new IHSLs DLI III Number of people with During Period 3 to and 12,750,000 water supply connections including Period 6 from Sustainable Water Systems. 850,000 people DLI IV Number of people with During Period 3 to and 19,375,000 access to commune-wide including Period 6 sanitation. 775,000 people DLI V Number of Communes During Period 3 to and 4,720,500 where schools and health including Period 6 clinics have maintained hygienic status. 150 Communes DLI VI Number of Provincial By Period 6, thirty- 6,575,000 Annual Plans approved two (32) Provincial by Participating Annual Plans, one for Provinces; and Number each Participating of Program Reports Province; and thirty- disclosed to the public. six (36) Program Reports, one for each Participating Province and one consolidated Program Report from MARD); and each Period, during Period 3 to and including Period 6, eight (8) Provincial Annual -3- Governor L Minh HLmg July 11, 2016 Plans (one for each Participating Province) and nine (9) Program Reports (one for each Participating Province and one consolidated Program ______ ______________Report from MARD). TOTAL AMOUNT Report_from_MARD)._T_131,500,000 3. Section IV.A of Schedule 2 to the Agreement is amended by inserting a new paragraph 3 as follows: "3. Any results, achieved during Period 3 to and including Period 6, shall be allocated to corresponding DLIs I, II, III, IV, V and VI only." 4. Paragraph 3(a) of Section IV. B of Schedule 2 to the Agreement is amended to read as follows: "(a) If the Association is satisfied that any of the DLRs corresponding to DLIs I, II, III, IV and V has been partially achieved by the end of the respective Period corresponding to said DLR, then the Association may, at any time, by notice to the Recipient, decide in its sole discretion, to authorize the withdrawal of such portion of the amount of the Financing then allocated to said DLR which corresponds, in the opinion of the Association, to the extent of achievement of said DLR for which the actual amount disbursed for each disbursement cycle will be equal to the target achieved multiplied by the total amount of Financing proceeds allocated to such DLR, divided by the total target amount." 5. Paragraph 3(b) of Section IV. B of Schedule 2 to the Agreement is amended to read as follows: "(b) Disbursement for DLI VI shall be done on an annual basis whereby a quarter of the Financing proceeds allocated for said DLI shall be disbursed only if all targets for the relevant Period are achieved; namely, eight (8) Provincial Annual Plans (one for each Participating Province) and nine (9) Program Reports (one for each Participating Province and one consolidated Program report from MARD) disclosed to the public." 6. Paragraph 3(c) of Section IV. B of Schedule 2 to the Agreement is deleted in its entirety. 7. Paragraph 4 of Section IV. B of Schedule 2 to the Agreement is amended to read as follows: "The Closing Date is July 31, 2019." 8. Paragraph 4 of Section I of the Appendix to the Agreement is amended to read as follows: "4. "Commune Wide Sanitation" means a Commune which meets hygienic sanitation criteria for individual households and addresses clean water and hygienic sanitation for schools and clinics, as defined in the Operational Manual". -4- Governor L Minh HLmg July 11, 2016 9. Paragraph 8 of Section I of the Appendix to the Agreement is amended to read as follows: "8. "Functioning Water Supply Connections" or "FWSCs" means water supply connections which provide water in accordance with the criteria set forth in the Operational Manual." 10. Paragraph 10 of Section I of the Appendix to the Agreement is amended to read as follows: "10. "Improved Household Sanitary Latrines" or "IHSLs" means household latrines which meet hygienic sanitation criteria for individual households, as defined in the Operational Manual. ]1. A new definition is added as paragraph 22 of Section I of the Appendix to the Agreement to read as follows, and the existing paragraph 22 and subsequent paragraphs of Section I of the said Appendix are renumbered accordingly: "22. "Period 6" means the calendar year of 2018 starting on January 1, 2018 and ending on December 31, 2018." 12. Paragraph 28 (originally numbered as paragraph 27) of Section I of the Appendix to the Agreement is amended to read as follows: "28. "Respective Period" means either of Period 1, Period 2, Period 3, Period 4, Period 5 or Period 6." 13. Paragraph 30 (originally numbered as paragraph 29) of Section I of the Appendix to the Agreement is amended to read as follows: "30. "Sustainable Water Systems" means those water systems which, two years after the start of operation (defined by the month in which the first water is supplied, billed and paid for by customer households), satisfy the criteria which are set forth in the Operational Manual with respect to clean water, system management and connections, revenue from tariffs and non-revenue water." Except as specifically amended herein, all other provisions of the Agreement remain in full force and effect. Please confirm your agreement with this amendment by countersigning, dating and returning to us the enclosed copy of this letter. Upon receipt by the Association of the countersigned copy of this letter, this amendment shall become effective as of the date of the countersignature. Sincerely Yours, INTERNATIONAL DEVELOPMENT ASSOCIATION By Acting Country Director for Vietnam East Asia and Pacific Region -5- Governor L6 Minh HLmg July 11, 2016 CONFIRMED: SOCIALIST REPUBLIC OF VIETNAM By: _ Name: Title: DALL4 C \vmfl0 Date: 91 g 204 -6-