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