0OCUMNTS The World Bank 181dH Street N.W. (202) 473-1000 INTERNATIONAL EANK FOR RECONSTRUC ION AND DEMAPM 4'shington, D.C. 20433 Cable Address: INTBAFRAD INTERNATIONAL DEVELOPMENT ASSOCIAl ION U.S.A. Cable Address: INDEVAS December 20, 2012 Ms. Berenice Muraille flead of Cooperaticn and Dev,lopment Delegation of the European Commission to Vietnam K3B Ly Thuong Kiet fIanoi, Socialist Republic of Vietnam Re: Administration Agreement for European Community Grant for Support for Public Financial Management Modernization in Vietnam (TFO 71094) - Amendmen! to the Adninistration Agreement Dcar Ms. Muraille: We refer to the Trust Fund Administration Agreement dated March 2, 2009 (-Administration Agreement"), enlered into between the European Union, represented by the Commission of the Europ-an 'Jnion (the "Commission") and the International Bank for Reconstruction and Development ("IBRD") and the International Development Association ("IDA") (collectively the "Bank"), as amended on January 6, 2011, for the above-mentioned Trust Fund. We also refer to the -ecent communications between the Bank and the Donor regarding the introduction of several amendments to the Administration Agreement. We are pleased to in orm you that the Bank proposes to amend the Administration Agreement as follows: 1. Article 3 of the Administration Agreement is amended to read as follows: "Article 3 Completion date It is expected that an amoun. of the trust fund equal to the Grant funds will be fully utilized in accordance with the provisions of this Administration Agreement by December 31, 2013 (the Completion Date). The Bank shall only disburse the Grant funds (ie., the European Community's pro rata share of the funds remaining in the trust fund, including any investment inccme added thereto), for the purposes of this Administration Agreement after such date upcn the prior written approval of the Commission." RCi, 248423. U WUI 64145 Q FAX (202) 477-6391 -2- 2. Paragraph I of Annex 1 to the Administration Agreement is amended to read as follows: "1. Objectives: The project development objective of this MDTF is to support Vietnam tc strengthen its capacities for: (a) increased coordination and transparency in PFM; (b) mproved revenue mobilization; and (c) effective and efficient public expenditure management.". 3. Paragraph 3 of Annex 2 to the Administration Agreement is amended to read as fllows: "3. Administrative Cost Recovery In order to assi,.t in the defrayment of the costs of administration and other expenses incurred by ihe Bank under this Agreement, the Bank may, following deposit of the Contribution by the Donor, deduct from the total Contribution of the Donor and retain for the Bank's own account an amount equal to 1.7 % of the Contribution. In additi)n, actual managing unit costs up to a maximum of USD 501,848 would also be charged.". 4. Paragraph 8 1 of Anne- 2 to the Administration Agreement is amended to read as fII ows: "8.1. It is expected that the Contribution funds will be fully disbursed by the Bank in accordance with the provisions of this Agreement by June 30, 2014. The Bank shall only disburse Contribution funds for the purposes of this Agreement after such date with the wrilten approval of the Donors.". All other provisions of the Administration Agreement shall remain in full force. Please indicate your concurrence with the foregoing by countersigning and dating th.- form of confirmation on the 'wo original copies of this letter of amendment and returning one countersigned original to us. This amendment to the Administration Agreement will become effective as of the date of countersignature of this letter. Sincerely, INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTIERNATIC NAL DEVELOPMENT ASSOCIATION Victoria Kwakwa Country Director East Asia and Pacific Region -3- AGREED: E LRO N UNION, represented by the CDC) IS ION OF THE EL ROPEAN UNION N 3me: nefefi Å r Date: Åz 20-Lz,