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


                                                                                           CONFORMED COPY


                                                                                                     July 21, 2011

        Mr. Bo Sundstrom
        Team Leader
        EU Delivery and Results Team
        DFID
        1 Palace Street
        London SW1E 5HE
        UNITED KINGDOM

                    Amendment to the Trust Fund Administration Arrangement between the Department for
                    International Development of the Government of the United Kingdom of Great Britain and
                    Northern Ireland and the International Bank for Reconstruction and Development and the
                    International Development Association concerning the Multi-Donor Trust Fund for Public
                    Expenditure Management and Peer-assisted Learning (PEMPAL) in the Europe and Central
                    Asia Region (TF 070664)

        Dear Mr. Sundstrom:

               We refer to the Trust Fund Administration Arrangement (the “Arrangement�) between the
        Department for International Development of the Government of the United Kingdom of Great Britain
        and Northern Ireland (the “Donor�) and the International Bank for Reconstruction and Development
        (“IBRD�) and the International Development Association (“IDA�) (collectively the “Bank�) concerning
        the Public Expenditure Management and Peer-assisted Learning (PEMPAL) in the Europe and Central
        Asia Region Multi-Donor Trust Fund (the “Trust Fund�) (TF070664) dated October 27, 2006, as
        amended from time to time. We also refer to the understanding reached between the Donor and the Bank
        to amend certain provisions of the Arrangement.

               Therefore, the Arrangement is hereby amended by replacing Part C of Annex 1 to the
        Arrangement in its entirety with the following:

        “C.         Categories of Expenditures

        The categories of expenditure eligible for financing from the contribution are as follows:

              (1)   Associated Overheads
              (2)   Consultant Fees
              (3)   Contractual Services
              (4)   Extended Term Consultants
              (5)   Temporary Staff Costs
              (6)   Staff Costs without Indirects
              (7)   Travel Expenses
              (8)   Media and Workshop Costs
              (9)   Field Benefits

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The foregoing expenditures may include the financing of taxes.�

        Except as specifically amended herein, all other provisions the Arrangement remain in full force
and effect.

         Please confirm your agreement with the foregoing amendment, on behalf of the Donor, by
signing, dating, and returning to us the enclosed copy of this Amendment Letter. Upon receipt by the
Bank of the copy of this Amendment Letter countersigned by you, this amendment will become effective
as of the date of the countersignature.

                                               Sincerely,

         INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT
                 INTERNATIONAL DEVELOPMENT ASSOCIATION


                                      By /s/ Theodore O. Ahlers
                                        Acting Vice President
                                    Europe and Central Asia Region



AGREED:

GOVERNMENT OF THE UNITED KINGDOM OF
GREAT BRITAIN AND NORTHERN IRELAND
DEPARTMENT FOR INTERNATIONAL DEVELOPMENT

By /s Bo Sundstrom
Authorized Representative
Title: Head of Delivery and Results, Europe Department, DFID

Date: July 28, 2011




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