THE WOR M18
IBRD* IDA I WORLD ANKG"MAL       TFr
DOCUVA-      n.    February 24, 2016
His Excellency
Mr. Ivan Acosta
Minister of Finance and Public Credit
Ministry of Finance and Public Credit
Managua, Nicaragua
Re: NICARAGUA- Grant No. TF015143. Education Sector Strategy Support Project.
Amendment No. 1 to the Grant Agreement
Excellency:
Please refer to the Grant Agreement (the Grant Agreement), dated September 17, 2013
between the Republic of Nicaragua (the Recipient) and the International Development Association
(the Association) acting as administrator of the Nicaragua Education Sector Strategy Multi-Donor
Trust Fund (the Trust Fund) for the above referenced Project. Please note that capitalized terms
used in this letter (Amendment Letter) and not defined herein have the meaning ascribed to them
in the Grant Agreement.
The Association has received the letter No. MHCP-DM-E-0882-02-16 dated February 17,
2016, requesting the amendment of the Grant Agreement for the purpose of: (a) extending the
Closing Date from February 28, 2016 to August 5, 2017; and (b) modifying a few of the current
staffing arrangements of the Project.
We are pleased to inform you that pursuant to the letter of request, the Association hereby
agrees to amend the Grant Agreement as follows:
1.    Section I.A.2. of Schedule 2 to the Grant Agreement is hereby amended to read as follows:
"Not later than 30 days after the Effective Date, appoint and, thereafter, maintain, at all times
during Project implementation, competent personnel required for Project implementation, in
adequate numbers and with sufficient resources, including, but not limited to, a procurement
coordinator, financial management coordinator, two procurement specialists, a senior
international procurement advisor, two financial management specialists, six procurement
management specialists, and one social safeguards specialist, all with terms of reference,
qualifications and experience acceptable to the Association, asfurther detailed in the Operational
Manual."
2.    The Closing Date referred to in Section IV.B.2. of Schedule 2 to the Grant Agreement is
extended from February 28, 2016 to August 5, 2017.


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Minister Ivan Acosta                                           February 26, 2016
3.    In addition, as you are aware, as per the loss in the Euro-Dollar exchange rate, there is a
funding shortfall in the amount available to the Association from the Trust Fund provided
to it by the Donor in Dollar equivalent for the purposes of the Grant.
In view of the foregoing, and in accordance with the provisions of Section 3.02 of the
Standard Conditions for Grants Made by the World Bank out of various Funds applicable to the
Grant Agreement, the Association hereby cancels, as of the date of this Amendment Letter, an
amount of the Grant equal to two million sixty three thousand nine hundred ninety-four United
States Dollars (USD 2,063,994). As of the date of this Amendment Letter, the total Grant amount
has been revised to USD 31,322,614.
The withdrawal table set forth in Section IV.A.2 of Schedule 2 to the Grant Agreement has
been revised accordingly and the revised withdrawal table is attached to this Amendment Letter.
Except as specifically amended in this Amendment Letter, all other terms and conditions
of the Grant Agreement shall remain in full force and effect.
Please confirm your agreement with the foregoing amendment by signing, dating and
returning to us the enclosed copy of this Amendment Letter. This Amendment Letter will be
executed in two counterparts, each of which shall be an original. The provisions of this
Amendment Letter will become effective upon the receipt by the Association of a countersigned
original of the Amendment Letter.
Sincerely,
INTERNATIONAL DEVELOPMENT ASSOCIATION
By
J. fumber    pez
Di tr
Cen IAmerica
Latin America and the Caribbean Region
AGREED:
REPUBLIC OF     IC     GUA
By:
(Authori    epresentative)
Title: i1w-)' 4yo
Date:   240 ct6re O\


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Minister Ivan Acosta                                                February 26, 2016
ANNEX
Revised Withdrawal Table
Amount of the Grant      Percentage of
Allocated (expressed   Expenditures to be
Category                    in USD)                Financed
(inclusive of Taxes)
(1) Works, goods, non-consulting
Services, consultant's services,
Operating Costs and Training for  31,322,614               100%
Parts 2 and 4 of the Project
Cancellation as of February XX, 2016     2,063,994
TOTAL AMOUNT                             33,386,608