THE WORLD BANK IBRD IDA I WORLDBANKGROUP FFICIAL p v 1O DOCUMENTS December 7, 2015 H.E. Sim6n Lizardo M6zquita Minister of Finance Ministry of Finance Av. Mexico No. 45 Gazcue Santo Domingo, Dominican Republic Re: Dominican Republic Health Sector Reform Second Phase APL (PARSS 2) Loan No. 7777-DO Amendment to the Loan Agreement Excellency: We refer to the above-referenced Loan Agreement between the Dominican Republic ("Borrower") and the International Bank for Reconstruction and Development ("Bank") dated October 30, 2009 ("Loan Agreement"). We also refer to your letter dated October 7, 2015 requesting a reallocation of funds of the above-mentioned Project. In view of the above and our recent discussions relative to the percentage of the Borrower's counterpart funds, the Bank proposes to amend the Loan Agreement to (a) reduce counterpart funding; and (b) reallocate funds from Category 1 to Category 3. Accordingly, the Loan Agreement is amended as follows: The table under Section IV.A.2 of Schedule 2 to the Loan Agreement is hereby amended and replaced in its entirety to read as follows: Amount of the Loan Percentage of Expenditures Category Allocated to be financed (expressed in USD) (inclusive of Taxes) (1) Capitation Transfers 8,670,658 100% under Part A of the Project (2) Goods, Non-consultant 7,000,000 83% Services, consultants' services, Training and Operating Costs under Part B of the Project (3) Goods, Non-consultant 14,653,092 85% Services, consultants' services (including audits), Training and Operating Costs under Part C of the Project (4) Goods, Non-consultant 100,000 100% Services, consultants' services, Training and Operating Costs under Part D of the Project H.E. Sim6n Lizardo Mzquita - 2 - December 7, 2015 Amount of the Loan Percentage of Expenditures Category Allocated to be financed (expressed in USD) (inclusive of Taxes) (5) Front-end Fee 76,250 Amount payable pursuant to Section 2.03 of this Agreement in accordance with Section 2.07 (b) of the General Conditions (6) Premia for Interest Rate 0 Amount payable pursuant to Caps and Interest Rate Section 2.07 (c) of this Collars Agreement TOTAL AMOUNT 30,500,000 All other terms and conditions of the Loan Agreement remain in full force and effect. Please confirm your agreement with the foregoing amendment, on behalf of the Borrower, by signing and dating this letter in the spaces provided below. This amendment letter shall be executed in two counterparts each of which shall be an original and one of which shall be returned to us. In order to use the proceeds of the Loan Agreement to finance expenses that had been originally planned to be financed by counterpart funds from the Borrower from January 19, 2010 (the Effective Date of the Loan Agreement), the provisions set forth in this amendment letter shall become effective as of January 19, 2010, upon receipt by the Bank of one fully executed original of this letter. Please also note that the Restructuring Paper dated December 4, 2015, a copy of which is enclosed herewith, will be disclosed on the Bank's external website as per the Bank's policy on Access to Information. Very truly yours, INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By _ Karin Kemper Acting Country Director Caribbean Country Management Unit Latin America and the Caribbean Region AGREED: DOMINICAN IEPUBLIC By: Title: Of 4 O r44-Ce Date: t*YL03, 1 Enclosure