OffiCtAL The World Bank OJ FkC NA INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVE OU U nia enn th Kaunda, 1224 Tel: (258-21) 482300 INTERNATIONAL DEVELOPMENT ASSOCIATION P.O. Box 4053 Fax: (258-21) 492893 - - --- ffa ,'iambique May 24, 2012 H.E. Aiuba Cuereneia Minister of Planning and Development Ministry of Planning and Development Maputo Republic of Mozambique Excellency: REPUBLIC OF MOZAMBIQUE: Market-led Smallholders Development in the Zambezi Valley (Credit No. 41980 MOZ) Project Restructuring: Amendment and Extension of Closing Date In response to your letter dated March 10, 2012 requesting a restructuring of the above-referenced project, I am pleased to inform you that the International Development Association (the Association) concurs with the request. The changes approved for the project restructuring cover the following areas: (i) adjusting the end-of-project target for the performance indicator on Savings and Loans Groups to a more realistic level (now 6,000 members enrolled); (ii) revising the Financing Agreement to reflect the remapping of the project implementing agency to the Ministry of State Administration; (iii) reallocating financing proceeds to cover increased project coordination costs; and (iv) extending the closing date. Accordingly, the Association hereby reallocates the credit proceeds as set out in the table contained in the attachment to this letter, which replaces the table in Section IV, paragraph 2 of the Financing Agreement between the Republic of Mozambique and the Association dated August 6, 2006. Further, the Association has established September 30, 2013, as the later date for purposes of Section IV.B, paragraph 2 of the above-referred Financing Agreement, in order to reflect the full integration of the IDA funding with the co- funding provided by the Global Environmental Fund for the same project. H.E. Aiuba Cuereneia - 2 - May 24, 2012 Please confirm your agreement with the above amendments to the Financing Agreement by signing, dating, and returning to us one original copy of this Amendment Letter and retaining one original copy for your records. Upon receipt by the Association of the copy of this letter countersigned by you, this Amendment Letter will become effective as of the date of the countersignature. Sincerely, Laurence Cl Country Director Angola, Mozambique, Sdo Tom6 and Principe Africa Region AGREED AND CONFIRMED: Name: a~ CQ.e-e viq Title: _ _ _is_ _ Date:)/- X, 9Q C H.E. Aiuba Cuereneia - 3 - May 24, 2012 Annex Revised disbursement table - Market-led Smallholders project, Credit No.41980MOZ Category of Expenditure Allocation (SDR) Percentage of Expenditures to be financed (1) Goods, consultants' services, operating costs and 4,740,000 100% training for Component 1 except for Component 1 (d) (2) Works goods, consultants' services and operating 2,700,000 100% costs for Component 2, except for Component 2 (d) (3) for Component 3: a) subproject grants for all project districts and 2,100,000 100% Provinces b) Consultant's services except for Component 3 (c) 700,000 100% (4) Goods, consultant services including audits, 3,500,000 100% training and operating costs for Component 4, except for component 4 (e), (f) and (g). (5) Refund for Project Preparation Advance 260,000 Amount payable pursuant to Section 2.07 of the General Conditions TOTAL AMOUNT 14,000,000 H.E. Aiuba Cuereneia - 4 - May 24, 2012 cc: H.E. Carmelita Namashalua Minister Ministry of State Administration H.E. Manuel Chang Minister Ministry of Finance H.E. Josd Pacheco Minister Ministry of Agriculture H.E. Ernesto Goveia Gove Governor Bank of Mozambique Ms. Isaltina Lucas National Director of Treasury Ministry of Finance Mr. Adriano Ubisse National Director of Investment and Cooperation Ministry of Planning and Development Mr. Olegdrio Banze Deputy National Director for Promotion of Rural Development Ministry Of State Administration Ms. Cdndida Moiane National Director of Planning and Institutional Development Ministry Of State Administration Ms. Lucia Luciano Acting National Director of Economy Ministry of Agriculture Ms. Albertina Alage Acting National Director of Agrarian Extension Ministry of Agriculture Mr. Luis Tobela National Directorate of Investment and Cooperation Ministry of Planning and Development H.E. Aiuba Cuereneia - 5 - May 24, 2012 Cleared with and bcc: Michael Morris (AFTAR); Teresa McCue (CTRLA) bcc: Messrs/Mmes: K. Mcconnell-Brooks, M. Morris, P. Verissimo, P. Arlindo, A. Bila (AFTAR); L. Clarke, J. Factora, L. Matsinhe, C. Faias (AFCS2); L. Rose (AFTHE); 1. Imparato (AFTUW); L. Gxaba (AFTEN); C. Sagna (AFTCS); D. Bronselaer, A. Chamuço, A. Malate (AFTPC); F. Saleem, J. Tinga, E. Langa (AFTFM); 1. Velev, M. Sawyer, G. Soko (AFCMZ); WBDocs