ALEXANDER KREMER Country Manager, Lao PDR East Asia and Pacific Region 16-May-2024 ______________ H.E. Santiphab PHOMVIHANE Minister of Finance Ministry of Finance 23 Singha Road P.O. Box 46 Vientiane, Lao PDR Lao PDR: Lao Road Sector Project 2 (Original Credit No. 5920-LA) (Additional Credit No. 6515-LA) Amendment to the Financing Agreement Excellency: We refer to the Financing Agreement dated January 28, 2020, between the Lao People’s Democratic Republic (“Recipient”) and the International Development Association (“Association”), providing additional financing and amending and restating the original agreement for the Lao Road Sector Project 2 (“Project”). We also refer to your letter dated March 27, 2024, requesting for restructuring of the Project. We are pleased to inform you that the Association concurs with your request and proposes to amend the Financing Agreement as set forth below: 1. Paragraph 2.3 (b) of Schedule 1 to the Financing Agreement is amended to read as follows: “(b) for financing by the Association to: (i) carry out annual field survey to include necessary data in the road management information system for risk-based planning; (ii) strengthen MPWT’s capacity in data collection and supervision of climate resilient road works in the provinces, including road improvement and maintenance of NR13S; (iii) facilitate the provision of small boats to flood-prone villages along NR13S for emergency use to rescue villagers during flooding; and (iv) prepare feasibility study and environmental and social management framework for the proposed follow up project (climate resilience road connectivity improvement project (CRRCIP).” 2. The Results Framework agreed further to Section II (Project Monitoring, Reporting and Evaluation) of Schedule 2 to the Financing Agreement is revised to include new corporate scorecard indicator and is attached as Annex to this Amendment Letter. The World Bank Group Office, Xieng Ngeun Village, Chao Fa Ngum Road Chanthabouly District, Vientiane Capital, Lao PDR / Phone: (856-21) 266200/ Fax: (856-21) 266299 Except as specifically amended in this Amendment Letter, all other terms and conditions of the Financing Agreement shall remain in full force and effect. The Association will disclose this Amendment Letter and related information on this Financing Agreement in accordance with the World Bank’s Policy on Access to Information. By entering into this Amendment Letter, the Recipient consents to disclosure of this Amendment Letter and related information. Please confirm your agreement to the foregoing on behalf of the Recipient by countersigning and dating the form of confirmation set forth below. Upon receipt by the Association of the countersigned original of this Amendment Letter, this Amendment Letter shall become effective as of the date of the countersignature of this Amendment Letter. Sincerely, INTERNATIONAL DEVELOPMENT ASSOCIATION ______________________ Alexander Kremer Country Manager, Lao PDR East Asia and Pacific Region AGREED: LAO PEOPLE’S DEMOCRATIC REPUBLIC By ____________________________ Authorized Representative Santiphab Phomvihane Name _____________________________ Minister of Finance Title _____________________________ 20-Jun-2024 Date _____________________________ The World Bank Group Office, Xieng Ngeun Village, Chao Fa Ngum Road Chanthabouly District, Vientiane Capital, Lao PDR / Phone: (856-21) 266200/ Fax: (856-21) 266299 Cc: Ministry of Public Works and Transport - H.E. Mr. Ngampasong Muongmany, Minister - H.E. Mr. Litta Khatiya, Vice Minister - Dr. Bounta Onnavong, Director General, Department of Transport - Ms. Vanh Dilaphan, Director General, Department of Planning and Finance - Mr. Siriphone Inthirath, Director General, Public Work and Transport Institute (PTI) Ministry of Planning and Investment - Mme. Sisomboun Ounavong, Director General, International Cooperation Department Ministry of Finance - Mr. Soulivath Souvannachoumkham, Director General, Department of Debt Management - Mr. Vongkhamheng Vongthachack, Director General, External Finance Department Ministry of Foreign Affairs - Mr. Somboun Sihanath, Director General, Department of Economic Affairs. The World Bank - Mr. Wempi Saputra, Executive Director for Lao PDR, Board of Executive Directors - Ms. Ha Thanh Khuong, Senior Advisor to Executive Director Asian Infrastructure Investment Bank (AIIB) - Ms. Jin Wang, Senior Investment Operations Specialist – Transport Nordic Development Fund (NDF) - Ms. Siv Ahlberg, Program Manager The World Bank Group Office, Xieng Ngeun Village, Chao Fa Ngum Road Chanthabouly District, Vientiane Capital, Lao PDR / Phone: (856-21) 266200/ Fax: (856-21) 266299 Annex Results framework COUNTRY: Lao People's Democratic Republic Lao Road Sector Project 2 (LRSP2) Project Development Objectives(s) The Project Development Objective (PDO) is to improve climate resilience and strengthen maintenance systems for a reliable road network in Lao PDR, and to provide immediate and effective response in case of an Eligible Crisis or Emergency. Project Development Objective Indicators by Objectives/ Outcomes RESULT_FRAME_T BL_ PD O Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 6 7 8 9 To strengthen maintenance systems Preparation and implementation of three-year rolling climate resilient No Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes road maintenance plans, on annual basis (Yes/No) To improve reliable road connectivity in Lao PDR Share of total provincial and district road network in Project 50.00 50.00 55.00 60.00 65.00 65.00 65.00 65.00 65.00 65.00 65.00 area in good and fair condition (Percentage) Share of rural 56.00 56.00 56.00 57.00 57.00 57.00 57.00 57.00 57.00 57.00 57.00 population with The World Bank Group Office, Xieng Ngeun Village, Chao Fa Ngum Road Chanthabouly District, Vientiane Capital, Lao PDR / Phone: (856-21) 266200/ Fax: (856-21) 266299 RESULT_FRAME_T BL_ PD O Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 6 7 8 9 access to an all- season road (National) (Percentage) Share of rural population with access to an all- 53.00 53.00 55.00 56.00 57.00 57.00 57.00 57.00 57.00 57.00 57.00 season road in project area (Percentage) People benefiting from improved access to sustainable 0.00 0.00 609,000.00 700,000.00 1,000,000.00 1,600,000.00 1,600,000.00 1,600,000.00 2,134,000.00 2,134,000.00 2,134,000.00 transport infrastructure and services (Number) Action: This indicator has been Revised Female beneficiaries 0.00 0.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 50.00 (Percentage) To improve climate resilience Kilometers of road improved with climate resilient 0.00 0.00 0.00 232.00 290.00 597.00 597.00 655.00 655.00 655.00 655.00 measures and receive The World Bank Group Office, Xieng Ngeun Village, Chao Fa Ngum Road Chanthabouly District, Vientiane Capital, Lao PDR / Phone: (856-21) 266200/ Fax: (856-21) 266299 RESULT_FRAME_T BL_ PD O Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 6 7 8 9 maintenance (Kilometers) PDO Table SPACE Intermediate Results Indicators by Components RESULT_FRAME_T BL_ IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 6 7 8 9 Climate Resilient Road Maintenance Length of road receiving climate resilient periodic 0.00 0.00 0.00 232.00 290.00 597.00 597.00 655.00 655.00 655.00 655.00 maintenance (Cumulative) (Kilometers) Length of road receiving routine PBC 1 0.00 0.00 0.00 1,305.00 1,305.00 1,595.00 1,902.00 1,960.00 1,960.00 1,960.00 1,960.00 maintenance (Kilometers) Share of women participating in paid jobs related to the 0.00 0.00 5.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 10.00 implementation of road work contracts (Percentage) Grievances registered related to 0.00 0.00 75.00 80.00 80.00 80.00 80.00 80.00 80.00 80.00 80.00 delivery of project The World Bank Group Office, Xieng Ngeun Village, Chao Fa Ngum Road Chanthabouly District, Vientiane Capital, Lao PDR / Phone: (856-21) 266200/ Fax: (856-21) 266299 RESULT_FRAME_T BL_ IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 6 7 8 9 benefits addressed (%) (Percentage) Kilometers of roads where road safety audit was performed and 0.00 0.00 0.00 0.00 290.00 348.00 655.00 655.00 655.00 655.00 655.00 recommendations were considered (Kilometers) Kilometers of NR13 S transferred to performance-based 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 58.00 58.00 58.00 maintenance phase under OPBRC (Kilometers) Community participation in monitoring of PBC No Yes routine maintenance contracts (Yes/No) Institutional Strengthening Data on road condition and vulnerability to natural hazard No No Yes Yes Yes Yes Yes Yes Yes Yes Yes collected for preparation of three-year rolling plan (Yes/No) The World Bank Group Office, Xieng Ngeun Village, Chao Fa Ngum Road Chanthabouly District, Vientiane Capital, Lao PDR / Phone: (856-21) 266200/ Fax: (856-21) 266299 RESULT_FRAME_T BL_ IO Indicator Name PBC Baseline Intermediate Targets End Target 1 2 3 4 5 6 7 8 9 Updated Road Safety Strategy and No No No No Yes Yes Yes Yes Yes Yes Yes Action Plan (Yes/No) Climate Resilient Road Improvement and Maintenance for NR13 South Roads rehablitated 0.00 0.00 0.00 0.00 20.00 30.00 40.00 58.00 58.00 58.00 58.00 (CRI, Kilometers) Roads rehabilitated - 0.00 0.00 0.00 0.00 20.00 30.00 40.00 58.00 58.00 58.00 58.00 rural (CRI, Kilometers) Roads rehabilitated - 0.00 0.00 non-rural (CRI, Kilometers) Number of beneficairies benefitting from the 0.00 0.00 0.00 0.00 4,500.00 4,500.00 4,500.00 4,500.00 4,500.00 4,500.00 4,500.00 provision of boats during flooding (Number) IO Table SPACE The World Bank Group Office, Xieng Ngeun Village, Chao Fa Ngum Road Chanthabouly District, Vientiane Capital, Lao PDR / Phone: (856-21) 266200/ Fax: (856-21) 266299