Banco Mundial - BIRD BANCO INTERNACIONAL PARA RECONSTRUÇÃO IBRD - The World Bank E DESENVOLVIMENTO INTERNATIONAL BANK FOR RECONSTRUCTION SCN – Quadra 2 – Lote A AND DEVELOPMENT Ed. Corporate Financial Center, salas 702/703 1818 H Street, N.W., 70712-900 - Brasília – DF, BRASIL Washington, D.C. 20433, U.S.A. Tel.: 55 61 - 3329-1000 – Fax: 3329-1010 Phone: 1 202 - 473-1000 www.bancomundial.org.br Fax: 1 202 - 477-6391 www.worldbank.org CONFORMED COPY January 12, 2011 His Excellency Mr. Cícero de Carvalho Monteiro Secretary Secretaria do Desenvolvimento Urbano State of Bahia Av Tancredo Neves,450, 34º Andar - Ed Suarez Trade 41820-020, Salvador, BA Brazil Re: Brazil: Loan No. 7344–BR (Bahia Poor Urban Areas Integrated Development Project – Viver Melhor II) Amendment to the Loan Agreement Excellency: Please refer to the Loan Agreement dated April 7, 2006 (the Loan Agreement), entered into between the State of Bahia (the Borrower) and the International Bank for Reconstruction and Development (the Bank). Please note that capitalized terms used in this letter (Amendment Letter) and not defined herein have the meaning ascribed to them in the Loan Agreement. We are pleased to inform you that the Bank agrees with your request to amend the Loan Agreement, as confirmed by the Guarantor on August 11, 2010 through COFIEX Recommendation No. 595, and proposes to amend the Loan Agreement so as to extend the Project Closing Date and reallocate funds and adjust percentage of Bank financing between Categories of disbursements. • Section 2.03: The Closing Date shall read January 31, 2012. • Schedule 1. The table in paragraph A.1 is replaced to read in its entirety as set forth in Annex 1 to this Amendment Letter. Please note that it is the Bank’s policy to make publicly available this Amendment Letter and any information related thereto, after this Amendment Letter has become effective and the Borrower has given its consent to such disclosure. The Borrower, by countersigning this Amendment Letter, confirms its consent to such disclosure. Secretary Monteiro -2- January 12, 2011 Please confirm your agreement with the foregoing amendment by signing and dating the two originals of this letter in the spaces provided below. Upon confirmation, please return one fully executed original to us. The provisions set forth in this amendment letter shall become effective as of the countersignature date and upon receipt by the Bank of one fully executed original of this amendment letter. Sincerely, INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By /s/ Makhtar Diop Director Brazil Country Management Unit Latin America and the Caribbean Region AGREED: STATE OF BAHIA By: /s/ Cícero de Carvalho Monteiro Authorized Representative Name: Cícero de Carvalho Monteiro Secretary Date: January 26, 2011 Copied to: Ministério de Fazenda Esplanada dos Ministérios, Bl. P, 5º Andar 70048900, Brasília, DF Brazil Facsimile: (55-61) 3412-1740 Companhia de Desenvolvimento Urbano do Estado da Bahia Av. Edgar Santos, 936 40210-720 Salvador, Bahia Brazil Facsimile: (55-71) 3371-0856 Secretaria da Fazenda do Estado da Bahia - SEFAZ Av. Luis Viana Filho, 2ª Avenida, 260 – CAB 41746-900, Salvador, Bahia Brazil Facsimile: (55-71) 3115-2408 Secretary Monteiro -3- January 12, 2011 Secretaria do Planejamento do Estado da Bahia Av. Luis Viana Filho, 2ª Avenida, 250 – CAB 41746-900, Salvador, Bahia Brazil Facsimile: (55-71) 3115-3945 SEAIN - Secretaria de Assuntos Internacionais do Ministério do Planejamento, Orçamento e Gestão Esplanada dos Ministérios - Bloco K - 5º andar 70040-906 Brasília, DF Brazil Facsimile: (55-61) 2020-5006 Secretary Monteiro -4- January 12, 2011 Annex 1 Withdrawal of the Proceeds of the Loan Amount of the Loan Allocated % of (Expressed in Expenditures Category Dollars) to be Financed (1) Goods and non-consultants’ 1,565,413 80% services (2) Works 33,166,381 100% (3) Consultants’ services 14,440,966 85% and training (4) Front-end fee 123,240 Amount due under Section 2.04 of this Agreement (5) Premia for Interest 0 Amount due Rate Caps and Interest under Section Rate Collars 2.09 (c) of this Agreement _________ TOTAL 49,296,000 ======== Secretary Monteiro -5- January 12, 2011 Cleared w&bcc: Messrs./Mmes.: C. Portelo (LEGLA); T. de Abreu (CTRDM); B. Utria (LCC5C) Bcc: Messrs./Mmes.: R. Pastor, C. De Oliveira, C. Portela (LEGLA); M. Diop, T. Lettieri, W. Pedrosa (LCC5C); G. Chen, T. Samad, E. Monteiro (LCSUW); S. Wahba, P. Amiri (LCSSD); WBDocs Drafter: De Oliveira with input from Portelo, x30053