IOFFICIA~ "i "I .z DOCUMENTS The World Bank INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Zambia World Bank Country Office Tel: (260-1) 252811 INTERNATIONAL DEVELOPMENT ASSOCIATION Pyramid Plaza, Plot #746 Church Road Fax: (260-1) 254283 P.O. Box 35410, Lusaka, ZAMBIA February 12, 2014 THE WORLD BANK Honourable Alexander B. Chikwanda, MP Minister of Finance Ministry of Finance 2 4 FEB 2014 Lusaka ZAMBIA COUNTRY OFFICE Dear Honourable Chikwanda, Zambia Results Based Financing Project (TF 095772) Amendment to the Grant Agreement We refer to the Grant Agreement (the Agreement) for the above-mentioned Project, dated December 30, 2010, between the Republic of Zambia (the Recipient) and the International Development Association ("World Bank") acting as administrator of the Multi- Donor Trust Fund for Health Results Innovation. We also refer to your letter dated June 4, 2013, requesting for the reallocation of Grant proceeds and the financing of operating costs. We are pleased to inform you that the World Bank concurs with your request and proposes to amend the Agreement as follows- 1. The table set forth in Section IV. A. 2 of Schedule 2 to the Agreement is deleted in its entirety and replaced with the table set forth in the Annex to this letter. 2. The Appendix to the Agreement is amended by- (i) Introducing the following definition immediately after paragraph 6- "7. " Operating Costs" means reasonable recurrent Project expenditures, based on an annual budget previously approved by the Association, that would not have been incurred by the Recipient absent the Project, including: (a) office equipment and supplies; (b) office utilities and reasonable communications expenses; (c) office rental expenses; (d) Project's vehicles maintenance costs, fuel and spare parts; (e) travel expenses and per diems for official Project staff (excluding salaries of Recipient's civil servants); and (f) operation and maintenance of office equipment, financed with the proceeds of the Financing, all needed for the implementation and supervision of the Project. (ii) Renumbering the current paragraphs "7"- "9" as paragraphs "8" - "10" respectively. Honourable Alexander B. Chikwanda, MP -2- February 12, 2014 All other provisions of the Agreement, except as herein amended, shall remain in full force and effect. Please indicate your agreement with the foregoing amendment by countersigning on the two original copies of this letter and returning one original countersigned copy to us. Upon receipt by the World Bank of this countersigned copy, this amendment shall become effective as of the date of its countersignature. Sincerely INTERNATIONAL DEVELOPMENT ASSOCIATION Kundh r adiresan Country Director Zambia, Zimbabwe and Malawi Africa Region CONF D: REP BLIC OF ZAM A By:--- .A A44A t orized Representative Name: _________ Title: kaWZ4 o , Date: _______'.VA Honourable Alexander B. Chikwanda, MP -3- February 12, 2014 Annex Category Amount of the Grant Allocated Percentages of Expenditures (expressed in USD) be Financed ( inclusive of Taxes) (1) Consultants Services financed 100 % of amounts disbursed through Results-Based Payments 5,300,000 under Part (1) (a) of the Project (2) Goods under Part 1(b) of the 2,050,000 100% Project (3) Goods, non-consulting services, 100% consultants' services and Training under Part B of the Project (4) Operational Costs 1,500,000 100% 16,760,000.00 Honourable Alexander B. Chikwanda, MP -4- February 12, 2014 Cc: Honourable Dr. Joseph Kasonde Minister of Health Ministry of Health Lusaka Dr. Roland Msiska Secretary to the Cabinet Cabinet Office Lusaka Mr. Fredson Yamba Secretary to the Treasury Ministry of Finance Lusaka Mr. Felix Nkulukusa Permanent Secretary - Economic Management and Finance Ministry of Finance Lusaka Ms. Pamela C. Kabamba Permanent Secretary - Budget and Economic Affairs Ministry of Finance Lusaka Dr. Davy Chikamata Permanent Secretary Ministry of Finance Lusaka Dr. Elizabeth Chizema Director of Public Health Ministry of Health Lusaka