The World Bank 1, Dniprovskly Uzviz (380-44) 490-66-71 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT KyIV 01010 (380-44) 490-66-72 INTERNATIONAL DEVELOPMENT ASSOCIATION Ukraine (380-44) 490-66-73 REGIONAL OFFICE UKRAINE, BELARUS AND MOLDOVA OFFICIAL DOCUMENTS Date: December 14,2020 H.E. Sergii Marchenko Minister of Finance Ministry of Finance of Ukraine 12/2 Hrushevskogo Str. Kyiv 01008 Ukraine Re: Loan No. 8404-UA (Social Safety Nets Mpdernization Project) Amendment to the Loan A m ent Excellency: We refer to the Loan Agreement ("Loan Agreement") between.Ukraine ("Borrower") and the International Bank for Reconstruction and Development ("Bank") dated July 9, 2014, for the above- referenced Project. We are pleased to inform you that pursuant to our recent discussions the Bank agrees to amend the Loan Agreement as follows: 1. Schedule 1 of the Loan Agreement is hereby amended to read in its entirety as set forth in the Annex 1 to this Amendment Letter. 2. Section IV.B.3 of Schedule 2 to the Loan Agreement is hereby amended to read in its entirety as follows: "3. The Closing Date is August 31, 2024." 3. With reference to the provisions of Section II.A of Schedule 2 to the Loan Agreement, the Borrower hereby confirms to the Bank that the indicators set forth in Annex 2 to this Amendment Letter shall serve as a basis for the Borrower to monitor and evaluate the progress of the Project and the achievement of the objectives thereof. Except as specifically amended in this Amendment Letter, all other provisions of the Loan Agreement remain in full force and effect. Please confirm the agreement of the Borrower to the amendments set out above by countersigning and dating the confirmation set forth below and returning one fully signed original of this letter of amendment to us. Upon receipt by the Bank of the copy of this Amendment Letter duly countersigned by the authorized representative of the Borrower, this Amendment Letter shall become effective as of the date above written. Very truly yours, INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By , Klavdiya Maksymenko Acting Regio Country Director ern Europe pe and Central Asia AGREED: By:RAINE Name: / Title:¾&/& Date: -2- Annex 1 SCHEDULE 1 Project Description The objectives of the Project are: (a) to improve the performance of the Borrower's social assistance and social services system for low-income households; and (b) and provide income support to households affected by the economic impact of the COVID-19 pandemic. The Project consists of the following parts: The Project consists of the following parts: Part 1. Improving Social Assistance Provision to the Most Vulnerable Provision of financing of Payments under the EEP in support of the expansion of the GMI Program, in accordance with the provisions set forth in Section III of Schedule 2 to this Agreement, specifically in the following four key areas: (a) increased access of the extreme poor to the GMI Program; (b) improved administration of social benefits and social services; (c) enhanced provision of family-based care to support orphans, children deprived of parental care, families in need and vulnerable families; and (d) introduction of temporary social assistance measures to mitigate the impact of COVID-19 pandemic on the welfare of vulnerable groups. Part 2. Supportive Investments for Institutional Strengthening for Administration of Social Assistance and Social Services 2.1. Strengthening institutions and improving information management through: (a) transformation of the management information system (MIS) into a web-based system; (b) application software development to include modules aimed to automate business processes for social services delivery, automate business processes for social inspection activities, and improve automation of processes used for full and comprehensive accounting of data regarding orphans, children deprived of parental care and children in difficult living conditions, as well as to modernize the unified state registry of privileged citizens, and development of an integrated information security system; (c) provision of hardware and standard software, office equipment, furniture and installation of local area network for MOSP, selected governmental bodies of all levels responsible for social protection of the population, families and children, centers for social services for families, children and youth, offices for children affairs, territorial centers, resident homes, centers for rehabilitation of the disabled and centers for the homeless; and (d) training of local level social workers of the above offices and institutions to operate the new MIS and on the new models for social work. -3- 2.2. Developing, establishing and implementing mechanisms to strengthen oversight and controls through: (a) support for revisions in legislation and regulations related to the status of the Borrower's social inspectorate and its investigative powers, recovery of over-payments and sanctions policy; (b) development of operational manuals for the social inspectors; (c) training of social inspectors; (d) assistance in conducting thematic inspections of risk-prone social assistance program; (e) development of a risk-profiling system and assistance in conducting thematic inspections using an adequate risk-profiling system; (f) establishment of a hot-line to serve as a channel of redress; and (g) provision for the social inspectorate of the necessary office equipment, vehicles, furniture and hardware. 2.3. Developing new business models for administering benefits and services through: (a) development of an institutional framework for outsourcing services; (b) development of service delivery standards for administration of benefits and services and social patronage of families in difficult living conditions; and (c) development of options to support the beneficiaries' graduation agenda, through development of activation measures. 2.4. Improving communications, promotion and outreach through supporting the development and implementation of a communications and outreach strategy to support the expansion of GMI Program and the child de-institutionalization reform. 2.5. Project coordination and management through provision of Project implementation support, including technical assistance to manage and monitor financial management and procurement, implementation of deinstitutionalization plans and service outsourcing in selected oblasts, and financing of Training and Operating Costs. Part 3. Supportive Investments for Increasing Provision of Family-based Care to Support Orphans Children Deprived of Parental Care, Disabled Children and Vulnerable Families in Selected Oblasts 3.1 Implementation of investments for: (a) childcare de-institutionalization by providing orphans and children deprived of parental care and disabled children with a family environment through foster care, adoption and placement in family-type homes; (b) transformation of residential institutions; and -4- (c) purchasing of new services from private and non-governmental providers for vulnerable families, through financing of goods, services, vehicles, equipment and furniture for family homes and internats, as well as training and retraining of social workers. 3.2 Technical assistance for the design and implementation of transformation plans for transforming residential care into family-based care in selected Oblasts. -5- � _ акi °о'~а�s�ы' йо йо о о � ��AU и� и� � � Я рΡQ в°4,�,O.�ia и� ���i и�� �� �рΡ,�'n�. b �10у0од �. ��> �,�> ,�> д�Ui'�#,�� и� ¢� � а� а� `� �а� С � � аgg � � � � � � W �А °� о^ о.-, 'н0� �°`�1 N°�у pN �"' � � �. 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