The World Bank 1818 H Street N.W. (202) 477-1234 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Washington, D.C. 20433 Cable Address: INTBAFRAD INTERNATIONAL DEVELOPMENT ASSOCIATION U.S.A. Cable Address: INDEVAS 19-Dec-2020 ______________________ Honorable Samuel D. Tweah Jr. Minister Ministry of Finance and Development Planning Monrovia, Liberia Re: Republic of Liberia: Public Sector Modernization Project (Credit No. 5359-LR) / (Grant No. TF0A1263) First Amendment to the Financing Agreement First Amendment to the Grant Agreement Honorable Minister: We refer to the Financing Agreement, dated April 8, 2014, between the Republic of Liberia (“Recipient”) and the International Development Association (“Association”) (“Financing Agreement”) and the Grant Agreement, dated December 19, 2016, between the Association and the Recipient (“Grant Agreement”, collectively with the Financing Agreement, the “Agreements”), for the above-mentioned Project. We also refer to your letter, dated September 1, 2020, requesting specific modifications to the Agreements. Please note that the capitalized terms used in this letter (“Amendment Letter”) and not defined herein have the meanings ascribed to them in the Agreements. We are pleased to inform you that the Association proposes to amend the Agreement in respect with the provisions below: Financing Agreement (5359-LR) 1. All references to Disbursement-Linked Indicator(s) or DLI(s) are hereby replaced throughout the entire Financing Agreement with Performance Based Condition(s) or PBC(s). 2. The table under Section IV.A.2 of Schedule 2 is hereby amended to read as set forth in Attachment 1 of this Amendment Letter. -2– 3. Section IV.B.5 of Schedule 2 is hereby amended to read as follows: “5. The Closing Date is February 28, 2021.” 4. Schedule 3 is hereby amended to read as set forth in Attachment 2 to this Amendment Letter. Grant Agreement TF0A1263 5. All references to Disbursement-Linked Indicator(s) or DLI(s) are hereby replaced throughout the entire Grant Agreement with Performance Based Condition(s) or PBC(s). 6. Section 3.01 is hereby amended to read as follows: “3.01. The World Bank agrees to extend to the Recipient, on the terms and conditions set forth or referred to in this Agreement, a grant in an amount equal to eight million one hundred sixty eight thousand and five hundred eighty seven United States Dollars ($8,168,587) (“Grant”) to assist in co-financing the Project. 7. The table under Section IV.A.2 of Schedule 2 is hereby amended to read as set forth in Attachment 3 of this Amendment Letter. 8. Section IV.B.5 of Schedule 2 is hereby amended to read as follows: “5. The Closing Date referred to in Section 3.06 (c) of the Standard Conditions is February 28, 2021.” 9. Schedule 3 is hereby amended to read as set forth in Attachment 4 to this Amendment Letter. Please confirm your agreement with the foregoing amendments by signing and dating this Amendment Letter in the spaces provided below. All other provisions of the Agreements, except as herein amended, shall remain in full force and effect. This Amendment Letter shall be executed in two counterparts, each of which shall be an original and shall become effective upon receipt by the Association of one countersigned original of this Amendment Letter. Sincerely, INTERNATIONAL DEVELOPMENT ASSOCIATION ______________________ Khwima Nthara Country Manager for Liberia West and Central Africa Region -3– CONFIRMED: REPUBLIC OF LIBERIA By: ________________________________ Authorized Representative Name: Samuel D. Tweah Jr. Title: Minister of Finance and Development Planning 22-Dec-2020 Date: _______________________________ -4– Attachment 1 “Category Amount of the Percentage of Expenditures to Credit Allocated be Financed (expressed in SDR) (inclusive of taxes) (1) Goods, non-consulting 1,400,000 Such percentage as determined services, and consultants’ by the Association based on services, Training and Annual Work Plan and Budget Operating Costs under Part D of the Project (2) Eligible Expenditures Program Up to 100% of EEPs for achieved under Parts A, B and C of the DLI as referenced in Schedule 4 Project to this Agreement. TOTAL AMOUNT 1,400,000” -5– Attachment 2 “Schedule 4 Performance Based Conditions (PBC) Table Component PBCs Amount Allocated (SDR) 1. Pay Civil Service Agency has prepared and submitted a pay - management strategy for cabinet approval by June 30, 2014 (PBC 1) Participating ministries have assigned at least 30 percent - of P1-4 and E1-4 grade civil servants into approved pay grades by December 31, 2019 (PBC 2) Participating ministries have assigned at least 30 percent - of TAS 1-3 grade civil servants into approved pay grades by December 31, 2019 (PBC 3) 2. Payroll Discrepancy between current payroll (salary) and - management personnel listing at no more than 8 percent by December 31, 2019 (PBC 4) All participating ministries have issued employment - appointment letters to all their staff on personnel listing by June 30, 2018 (PBC 5) None of the participating ministry has supplementary - payroll by December 31, 2019 (PBC 6) 3. Improved Participating ministries have completed one annual cycle - performance of the performance appraisal process for P & E grade civil servants by June 30, 2018 (PBC 7) TOTAL - -6– Attachment 3 “Category Amount of the Percentage of Expenditures to Grant Allocated be Financed (expressed in USD) (inclusive of taxes) (1) Goods, non-consulting 4,308,587 Such percentage as determined services, and consultants’ by the Association based on services, Training and Annual Work Plan and Budget Operating Costs under Part D of the Project (2.a) Eligible Expenditures 680,000 100% Program under Parts A, B and C of the Project First Withdrawal (Pro memoria) (2) Eligible Expenditures Program 3,180,000 Up to 100% of EEPs for under Parts A, B and C of the achieved PBCs as referenced in Project Schedule 3 to the Grant Agreement TOTAL AMOUNT 8,168,587 -7– Attachment 4 “Schedule 3 Performance Based Conditions (PBC) Table Component PBCs Amount Allocated (US$) 4. Pay Civil Service Agency has prepared and submitted a pay 680,000 management strategy for cabinet approval by June 30, 2014 (PBC 1) $680,000 (FULLY DISBURSED) Participating ministries have assigned at least 30 percent 530,000 of P1-4 and E1-4 grade civil servants into approved pay grades by December 31, 2019 (PBC 2) Participating ministries have assigned at least 30 percent 530,000 of TAS 1-3 grade civil servants into approved pay grades by December 31, 2019 (PBC 3) 5. Payroll Discrepancy between current payroll (salary) and 530,000 management personnel listing at no more than 8 percent by December 31, 2019 (PBC 4) All participating ministries have issued employment 530,000 appointment letters to all their staff on personnel listing by June 30, 2018 (PBC 5) None of the participating ministry has supplementary 530,000 payroll by December 31, 2019 (PBC 6) 6. Improved Participating ministries have completed one annual cycle 530,000 performance of the performance appraisal process for P & E grade civil servants by June 30, 2018 (PBC 7) TOTAL 3,860,000