OFFICIAL THE WORLD BANK DOCUMENTS Street 15, House 238 I WORLDBANKGROUP Wazir Akbar Khan Afghanistan Country Office Kabul, Afghanistan Tel: (0093) 701133414 October 05, 2020 H. E. Abdul Hadi Arghandiwal Acting Minister of Finance Ministry of Finance Islamic Republic of Afghanistan Kabul, Afghanistan Excellency: Re: Afghanistan Strategic Grain Reserve Project - IDA Grant No. D2070 AF & JSDF Grant No. TF0A6345-AF (Cancellation of Undisbursed balance and closure of JSDF Grant & Advancement of Closing Date for IDA Grant) We refer to the Financing Agreement between Islamic Republic of Afghanistan ("Recipient") and the International Development Association ("Association") dated July 12,2017 and the Letter Agreement between Islamic Republic of Afghanistan (" Recipient") and the International Development Association ("World Bank" or "Association") acting as administrator of grant funds provided by Japan ("Donor") under the Japan Social Development Fund ("JSDF") dated May 15,2018 for the subject project. We also refer to your letter dated September 14, 2020 requesting cancellation of the undisbursed balance of the JSDF Grant No. TF0A6345. In view of the foregoing, and in accordance with the provision of Section 4.01 of the Standard Conditions for Grants Made by World Bank out of various Funds applicable to above- mentioned Letter Agreement, the World Bank hereby cancels, an amount of US$9,686,895 as of September 14, 2020. With the cancellation of the undisbursed funds under the JSDF Grant TF0A6345, all project activities and related procurements have been dropped. Hence, the World Bank has established September 14, 2020 as the later date for the purposes of Section 3.03 of Article III to the Letter Agreement. The four (4) months grace period under the JSDF Grant TF0A6345 is rescinded and the grant account is hereby closed as of September 14, 2020. The withdrawal table set forth in Section 3.01 of Article III to the Letter Agreement has been revised and the final disbursement status is attached to this letter. Additionally, the Association has established August 31,2020 as the later date for the purposes of Section IV.B.2 of Schedule 2 to the Financing Agreement. H. E. Abdul Hadi Arghandiwal 2 October 05, 2019 Please confimn your agreement to the foregoing on behalf of the Recipient by countersigning and dating the form of confirmation set forth below and returning one fully countersigned original of this Letter to us and retaining one original for your records. Sincerely, Henry G. R. Kerali Country Director for Afghanistan South Asia gion AGREED ISLAMIC REPUBLIC O AFGHANIST AN By: Authorized R -sentatv e Name: _ Title: I L mF47lci Date: cc: H.E. Nasir Ahmad Durani, Minister of Agriculture, Irrigation and Livestock, MAIL Mr. Abdul Habib Zadran, Deputy Minister of Finance, MoF Mr. Hashmatullah Ghafoori, Deputy Minister for Irrigation & Natural Resources, MAIL Mr. Mahboobullah Nang, Acting Deputy Minister for Agriculture & Livestock, MAIL Mr. Ghulam Hazrat Halimi, Project Director, SGR, MAIL Mr. Habib Daftani, Coordinator for the World Bank & ARTF Portfolio, MoF Mr. Shahid Ashraf Tarar, Executive Director for Afghanistan, the World Bank Mr. Zia-Ur-Rahman Haleemi, Advisor to the Executive Director, the World Bank H. E. Abdul Hadi Arghandiwal 3 October 05, 2019 Annex JSDF Grant No. TF0A6345 Revised Withdrawal Table Amount of Percentage of Grant Allocated Expenditures to be Category (expressed in Financed USD) (inclusive of Taxes) (1) Goods for the Proect. 0.00 100% (2) Works for the Project 0.00 100% (3) Consulting Services for the Project 0.00 100% Amount cancelled as of September 14, 2020 9,686,895 TOTAL AMOUNT 9,686,895