OFFICIAL -TF o bo The World Bank I OCUMEW S INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION o December 20, 2012 1I.E. Veaceslav Negruta Minister of Finance Ministry of Finance Chisinau, Moldova Multi-Donor Trust Fund Grant for Technical Assistance Support to Public Administrai ion Reform of Moldova Project (TF056601) Amendment to the Grant Agreement Excellency: We refer to the Mult -Dor,or Trust Fund Grant Agreement (the "Grant Agreement") between the Republic of M:ldova (the "Recipient") and the International Development Association (the "Associatior"), acting as administrator of grant funds ("Contributions") provided by Sweden and the Government of the Netherlands (the "Donors"), dated June 29, 2006, as amended, for the above-referenced Project. Pursuant to the Recipicnt's letter dated September 14, 2012 requesting: (a) an extension of the Project's Closing Date; znd (b) additional funds from the existing Contributions to finance ihe implementation of additional activities under the Project, we are pleased to inform you that The Association hereby agrees to establish December 31, 2013 as the later date for purposes of Section 4.3 (c) of the Grant Agieement and amend the terms of said Grant Agreement as follows: I. The first paragraph of the 3rant Agreement is amended to reflect the increased Grant amount not exceeding the equivalent of eleven million four hundred fifty thousand United States dollars (US$11,450,000). 2. Paragraph 1.1 of the A nnex to the Grant Agreement is hereby amended to include a new ;ubparagraph (iv) under Part A (a), and replaced in its entirety to read as follows: ' (a)Institutional Reorganizaticn: Provision of technical assistance to: (i) conduct a government- wvide functional review of the central public administration entities; (ii) further develop the legal framework on the organization of public administration; (iii) build capacity of the CPAR unit of the Recipient's State Chancellery; and (iv) develop a program for improving the quality, transparency and efficiency of administrative public services delivered at the central and sub- national tiers of the Governmeit. 3. Paragraph 2.1 of the Annex to the Grant Agreement is hereby amended and replaced in i's entirety to read as follows: -'2.1. The Recipient shall: (a) cary out the Activities with due diligence and efficiency, and in accordance with the provisio is o- the Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants, dated October 15, -2- (006 and revised January 2011; (t) promptly provide the funds, facilities, services and other :esources required for that purpo;e; (c) furnish all information covering the Activities and the use of he proceeds of the Grant as the iAssociation shall reasonably request; (d) from time to time exchange iews with the Association's repieseniatives on the progress and results of the Activities; (e) take all -ecessary measures required to enable the Association to visit the territory of the Recipient for :urposes related to the Grant; ar d (f) cause all consulting services, goods, training and incremental :perating costs, financed out of the proceeds of the Grant to be used exclusively for the purposes of i- Grant. Without limitation on he fcregoing, the Recipient shall, if the Association shall so request, :repare and furnish to the Association promptly upon completion of the Activities a report, in form md substance satisfa-tory to the kssociation, on the results and impact of the Activities. 4. Paragraph 4.2 of the Annex to the Grant Agreement is hereby amended and replaced in s entirety to read as follows: 4.2. The table below sets forth the Categories of items to be financed out of the proceeds of ilie Grant, the allocation of the amounts of the Grant to each Category, and the percentage of xpenditures for itens to be fine nced in each Category: Category Amount of the Grant % of Expenditures to Allocated be Financed (in U.S. dollars) (I) Consultants' services, 8,570,000 100% including audit (2) Goods 1,500,000 100 % (3) Training 1,200,000 100% (4) Incremental Operating 180,000 100% Costs (5) Unallocated 0 TOTAL AMOUNT 11.450,000 For purposes of this paragraph, :he terms: (a) "Incremental Operating Costs" means expenditures incurred by the Recipient on z,ccount of management of Grant im)lementation including office supplies, communication, local transportation, training, and suci other expenditures as may be agreed upon by the Association. (b) "Training" mee ns expenditures incurred by the Recipient in connection with the carrying out of training aclivities under the Activities, including reasonable costs of transportation, accommodation, per diem and interpretation services and cost of study tours, workshops , and any other train ng related costs as may be agreed upon by the Association." -3- Please confirm the Recipient's agreement with the foregoing by having an authorized official of the Recipient sign and date the enclosed copy of this Amendment Letter, and returning it to the Association. The amendment shall become effective upon receipt by the Association of ii original countersiDned copy cfthi,, Amendment Letter. Please note that the final restructuring paper dated December 13, 2012, will be disclosed on the Association's external website. Sincerely, Paolo Belli Acting Director Ukraine, Belarus, Moldova Buro-e and Central Asia Region AGREED: REPUBLIC OF MOLDOVA Name: ____e__ x?&A_ Fitle: i tw,_e_ F'qqi , [)ate: kec-e('01!,42, ar ___1