Maryam Salim
Country Director for Eritrea, Ethiopia, South Sudan, and Sudan                                  Tel: (251 11) 5176000
Eastern and Southern Africa Region                                                              Fax: (251 11) 6627717




                                                                                                      28-Aug-2024
                                                                                               Date:______________


     Reference No. WB/CD/067/08/27/2024


     H.E Ato Ahmed Shide
     Minister
     Ministry of Finance
     Addis Ababa


     Dear Ato Ahmed,


                            Ethiopia: Credit Number 7463-ET and Grant Number E2720-ET
                              Ethiopia Digital ID for Inclusion and Services Project (P179040)
                                        Amendment to the Financing Agreement

              We refer to the Financing Agreement (“Financing Agreement”) between the Federal Democratic
      Republic of Ethiopia (“Recipient”) and the International Development Association (“Association”) dated
      December 21, 2023, for the Ethiopia Digital ID for Inclusion and Services Project (P179040). We further
      refer to: (i) your letter, dated August 7, 2024 (ref I.F.R.E. 4/2/762) requesting the restructuring of the Project
      in order to amend the definition of the term “Operating Costs.”

              We are pleased to inform you that the Association concurs with your request and proposes to amend
      the definition of the term “Operating Costs” in the Financing Agreement by adding an item number (x), as
      follows: (x) reimbursement of Registration Partners’ incremental costs incurred on account of
      registration, issuance and distribution of physical and digital IDs to Ethiopian residents .” The full text
      of the amended definition of the term “Operating Costs” is included in the Annex to this Amendment Letter.

            Except as specifically amended in this Amendment Letter, all other provisions of the Financing
      Agreement shall remain unchanged and in full force and effect.
   H.E Ato Ahmed Shide                            -2-


       Please confirm your agreement to the foregoing on behalf of the Recipient by signing and dating
this Amendment letter. Upon receipt by the Association of the duly countersigned original of this letter,
the amendments herein shall become effective as of the date of the countersignature.




                                              Very truly yours,

                         INTERNATIONAL DEVELOPMENT ASSOCIATION




                                   By: __________________________
                                               Juliana Victor
                    Acting Country Director for Eritrea, Ethiopia, South Sudan, and Sudan
                                    Eastern and Southern Africa Region


   AGREED:

   FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA




   By: _________________________________
          H.E. Ato Ahmed Shide
   Name: ______________________________
           Minister of Finance Ethiopia
   Title: _______________________________
          01-Sep-2024
   Date: _______________________________
H.E Ato Ahmed Shide                              -3-




                                                 ANNEX

                Amended and Restated Definition of the term “Operating Costs”
                             under the Financing Agreement


   ““Operating Costs” means recurrent costs of the Project, including: (i) operation and maintenance
   of vehicle, repairs, fuel and spare parts; (ii) computer maintenance, including hardware and software;
   (iii) communication costs and shipment costs (whenever these costs are not included in the cost of
   goods); (iv) small office supplies; (v) rent and maintenance for office facilities; (vi) utilities and
   insurances; (vii) travel and per diem costs for technical staff carrying out supervisory and quality
   control activities; (viii) bank fees and miscellaneous; (ix) salaries of support staff for the Project, but
   excluding salaries of the Recipient’s civil servants; and (x) reimbursement of Registration Partners’
   incremental costs incurred on account of registration, issuance and distribution of physical and
   digital IDs to Ethiopian residents.”
H.E Ato Ahmed Shide                           -4-



CC:   H.E. W/ro. Muferiat Kemil
      Minister
      Ministry of Labor and Skills

      H.E. Dr. Yeshurun Alemayehu
      State Minister
      Minister of Innovation and Technology

      H.E. Ms. Semereta Sewasew
      State Minister
      Ministry of Finance

      H.E. Dr. Teshale Berecha
      State Minister TVET
      Ministry of Labor and Skills

      H.E. Nigussu T. Gebreamanuel
      State Minister for Employment
      Ministry of Labor and Skills

      Ato Yodahe Zemichael
      Executive Director, National ID Program
      Prime Minister’s Office

      Ato. Berhanu Anbessa
      A/Head International Financial Institutions Cooperation Division,
      Ministry of Finance
      Addis Ababa

      Mr. Floribert Ngaruko
      Executive Director
      World Bank
      Washington DC