THE WORLD BANK IBRD *IDA I WORLD BANKGROUP 03-Dec-2 021 Ms. Fatima Yasmin Secretary Economic Relations Division Ministry of Finance Sher-e Bangla Nagar Dhaka, Bangladesh Dear Secretary Yasmin: Bangladesh: Low Income Community Housing Support Project (Credit No. 5780-BD) Amendment to the Financing Agreement We refer to the: (a) Financing Agreement between the People's Republic of Bangladesh ("Recipient") and the International Development Association ("Association"), dated June 30, 2016, as amended ("Financing Agreement"); (b) Project Agreement between the International Development Association ("Association") and Palli Karma-Sahayak Foundation ("PKSF" or "Project Implementing Entity"), dated June 30, 2016 ("Project Agreement"); and (c) Project Agreement between the International Development Association ("Association") and the National Housing Authority ("NHA" or "Project Implementing Entity"), dated June 30, 2016 ("Project Agreement"), for the above-mentioned Project ("Project"). We also refer to your letters dated March 23, 2021, and August 18, 2021, requesting for partial cancellation and restructuring of the Project. We are pleased to inform you that the Association, after due consideration, proposes to amend the Financing Agreement as follows: Cancellation: 1 In view of the foregoing and in accordance with the provision of Section 7.01 of the General Conditions (as defined in the Financing Agreement), the Bank hereby cancels as of August 18, 2021, four million two hundred and twenty-eight thousand five hundred Special Drawing Rights (SDR 4,228,500) of the Credit. The commitment charges on the total amount cancelled cease to accrue from August 18, 2021. The withdrawal table set forth in Section IV.A.2. of Schedule 2 to the Financing Agreement has been revised accordingly and attached to this letter as Annex-. Part 3 of Schedule I to the Financing Agreement is amended to read as follows: Part 3: Shelter Support and Lending (a) Shelter Lending Line of Credit. Establishment of a credit line to provide Sub-loans to Beneficiaries with the purpose of financing Sub-projects. n Technical Assistance. Provision of technical assistance to PKSF and POs to develop housing m:crofinance products lending products. c) Risk Manauement Support Fund (RMSF). Establishment of a revolving fund held and managed by PKSF xith the purpose of providing Emergency Cash Loans to Active Project Borrowers who are adversely affected by Covid-19 pandemic or any such crisis or natural disaster." 1818 H Street NW - Washington, DC 20433 USA -2- 3. Section I.A.1 of Schedule 2 to the Financing Agreement is amended to read as follows: "1. To facilitate the carrying out of Parts 1, 2 ,4 and 5 of the Project, the Recipient shall make part of the proceeds of the Financing allocated to Parts 1, (except for Part 1(b) which shall be financed by the Recipient), 2, 4 and 5 of the Project available to NIIA under a subsidiary grant agreement between the Recipient and NHA ("NHA Subsidiary Agreement"), under terms and conditions approved by the Association, which shall include the obligation of the Recipient to on-grant to NIA, out of the proceeds of the Financing, an amount not to exceed the equivalent of nineteen million twenty one thousand five hundred Special Drawing Rights (SDR 19,021,500), or such other amount as shall be agreed from time to time in writing with the Association." 4. Section I.A.2 of Schedule 2 to the Financing Agreement is amended to read as follows: "2. To facilitate the carrying out of Part 3 of the Project, the Recipient shall make part of the proceeds of the Financing allocated to Part 3 of the Project available to PKSF under a subsidiary agreement between the Recipient and PKSF ("PKSF Subsidiary Agreement"), under terms and conditions approved by the Association, which shall include the obligation of the Recipient to provide to PKSF, out of the proceeds of the Financing, a total amount not to exceed the equivalent of thirteen million fifty thousand Special Drawing Rights (SDR 13,050,000), or such other amount as shall be agreed from time to time in writing with the Association, to be divided in three components: (a) on-lend component in an amount not to exceed the equivalent of eleven million six hundred thousand Special Drawing Rights (SDR 11,600,000) for financing costs associated with Shelter Lending Line of Credit (more fully described under Part 3 (a) of Schedule 1); (b) on-grant component in an amount not to exceed the equivalent of one million Special Drawing Rights (SDR 1,000,000) for financing costs associated with Technical Assistance (more fully described under Part 3 (b) of Schedule 1); and (c) on-lend component in an amount not to exceed four hundred and fifty thousand Special Drawing Rights (SDR 450,000) for financing costs associated with RMSF (more fully described under Part 3 (c) of Schedule 1)." 5. Section IV.B. 1(a) of Schedule 2 to the Financing Agreement is amended to read as follows: "(a) prior to the date of this Agreement, except that withdrawals up to an aggregate amount not to exceed: (i) SDR 370,000 may be made for payments made prior this date but on or after July 1, 2015 (but in no case made more than twelve (12) months prior to the date of this Agreement), for Eligible Expenditures under Category (3); and (ii) SDR 27,850 may be made for payments made prior to this date but on or after July 1, 2015 (but in no case made more than twelve (12) months prior to the date of this Agreement), for Eligible Expenditures under Category (1)." 6. Section IV.B. 2 of Schedule 2 to the Financing Agreement is amended to read as follows: "2. The Closing Date is December 31, 2022." 7. The indicators referred to in Section ll.A of Schedule 2 to the Financing Agreement (the "Results Framework") have been revised. The revised Results Framework is attached to this letter as Annex-IL. 8. Section I of Appendix to the Financing Agreement is amended to revise existing paragraphs 5, 8, 50 and 51 as follows: -3- "5. "CLOM" means the credit line operational manual referred to in Section LB to the schedule to the PKSF Project Agreement, containing detailed arrangements and procedures for the carrying out of Parts 3(a) and 3(c) of the Project, including inter alia, (a) the criteria to select Beneficiaries; (b) the Designated Municipalities to be targeted; (c) the procedures to select and appraise Shelter Support Sub-projects and end-use or provision of Emergency Cash Loans to Active Borrowers, including the eligibility criteria and excluded activities set out in the EMF; and (d) the model form of a Sub-loan Agreement; as such manual maybe revised from time to time with the written consent of the Association, 8. "Designated Municipalities" means: (a) with respect to NHA, the cities of Sirajganj, and Comilla; and (b) with respect to PKSF, the cities of Sirajganj, and Comilla and up to ten (10) additional cities to be selected by written agreement between PKSF and the Association and in accordance with the selection criteria set forth in the CLOM; and "Designated Municipality" means one of the Designated Municipalities. 50. "Sub-loan" means a loan to be made or proposed to be made by a PO out of the proceeds of the Financing for purposes of financing a Shelter Support Sub-project or an Emergency Cash Loan under Part 3 of the Project; and "Sub-loans" means, collectively, all such loans. 51. "Sub-loan Agreement" means an Agreement to be entered between a PO and Beneficiary for purposes of providing a Sub-loan for the purposes of financing a Shelter Support Sub-project or provision of an Emergency Cash Loan meeting the criteria set out in the CLOM to finance qualifying activities under Part 3 of the Project." 9. Section I of the Appendix to the Financing Agreement is amended to add new paragraphs 1, 11, and 43, and the subsequent paragraphs are renumbered accordingly: "1. "Active Project Borrowers" means Beneficiaries who have an outstanding loan balance with a PO& 11. "Emergency Cash Loan" means a personal loan offered by a PO from RMSF, with or without collateral, to eligible Active Project Borrowers for financing working capital needs of an ongoing business, micro-enterprise or costs associated with an income-generation activity or meeting unexpected expenses with the intention of helping the Beneficiary to overcome his/her financial instability and thereby be able to service their payment obligations in respect of all Sub-loans. 43. "RMSF" or "Risk Management Support Fund" means a perpetual fund held and managed by PKSF for providing Emergency Cash Loans to Active Project Borrowers who are adversely affected by Covid-19 pandemic or any such crisis or natural disasters." Except as specifically amended by this Amendment Letter ("Amendment Letter"), all other provisions of the Financing Agreement shall remain in full force and effect. The Bank will disclose this Amendment Letter and related information in accordance with the World Bank's Policy on Access to Information. By entering into this Amendment Letter, the Recipient consents to disclosure of this Amendment Letter and related information. -4- Please confirm your agreement to the foregoing by signing the form of confirmation set forth below, and returning one fully executed original of this Amendment Letter to us and retaining one original for your records. This Amendment Letter shall become effective as of the date of the last signature of this Amendment Letter, upon receipt by the Bank of the duly countersigned original of this Amendment Letter, other than the cancellations, which shall become effective as of the date of the respective cancellation. Very truly yours, INTERNATIONAL DEVELOPMENT ASSOCIATION By Mercy Miyang Tembon Country Director for Bangladesh & Bhutan South Asia Region AGREED: PEOPLE'S REPUBLIC OF BANGLADESH By: Authorized Representative Name: /tbdul Baki onmoReLatons Divis,on RM,n,try of Ftnance Title: - r 1fv Rapco' a lc f "ae s Date: 09-2-2(- - -5- Annex-I Revised Disbursement Table Percentage of Amount of the Financing Expenditures to be Allocated Financed Category (expressed in SDR (inclusive of Taxes) (1) Works, goods, non- 18,393,394 100% consulting services, consultants' services, Incremental Operating Costs, and Training under Parts I (except for 1(b)), 2, 4 and 5 of the Project (2) Sub-loans under Part 3(a) of the Project (a) First Phase 1,100,000 100% (b) Second Phase 4,350,000 100% (c) Third Phase 6,150,000 100% (3) Works, goods, non- 1,000,000 100% consulting services, consultants' services, Incremental Operating Costs, and Training under Part 3(b) of the Project (4) Project Preparation 628,106 100% Advance (5) Sub-loans under Part 3(c) 450,000 100% of the Project Cancelled as of August 18, 4,228,500 2021 TOTAL AMOUNT 36,300,000 � 4уΡ,� �'V Q� �-= � Gf� � � � � � � � � д ш �л о4 �п cr ,� > � т �? 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