OFFICIAL                               44
The World Bank
                                            DOCUMENTS            4
                                                          1818 HSkeet N.W.                (202) 477-1234
INTERNATIONAL BANK FOR RECONSTRUCTION AND                 _WV4WQA
                                                           W     tn, D.C. 20433           Cable Address: INTBAFRAD
INTERNATIONAL   DEVELOPMENT ASSOCIATION                   U.S.A.                          Cable Address: INDEVAS




                                                                                            May 29, 2014




        H.E. Dr. Mohammed Saed Al-Sadi
        Minister of Planning and International Cooperation
        Ministry of Planning and International Cooperation
        Sana'a, Republic of Yemen



                       Subject: Republic of Yemen: JSDF - Biogas Digester Project (TF099469)
                       Amendment to the Grant Agreement and Cancellation of Grant Proceeds


       Excellency:

                We refer to the Grant Agreement, dated April 23, 2012 ("Grant Agreement"), between
       the Republic of Yemen ("Recipient") and the International Development Association ("World
       Bank"), acting as administrator of grant funds provided by Japan under Japan Social
       Development Fund ("JSDF"), for the above-referenced Project, as amended ("Project"). We also
       refer to your letter, dated April 24, 2014, requesting the early closing of the Project and
       cancellation of the uncommitted amount of the Grant proceeds.

              We are pleased to inform you that the World Bank concurs with your request, and
       consequently the Grant Agreement is amended as set forth below:

       1.         Section 3.03 of the Annex to the Grant Agreement is amended to read as follows:

                  "3.03. Withdrawal Period. The closing date referred to in Section 3.06 (c) of the
                  Standard Conditions is June 30, 2014."

       2.      In view of the foregoing, and in accordance with the provisions of Section 4.01 of the
       Standard Conditions for Grants Made by the World Bank out of various Funds applicable to the
       Grant Agreement, the World Bank hereby cancels, as of April 30, 2014, the undisbursed balance
       amount of the Grant equal to US$1,982,393. Consequently, the withdrawal table set forth in
       Section 3.01 of the Annex to the Grant Agreement has been revised as follows:
           Category                                   Amount of the Grant        Percentage of
                                                      Allocated (expressed     Expenditures to be
                                                      in US$)                Financed (inclusive of
                                                                                    Taxes)

           Goods, works, consultants'                     499,327                    100%
           services, including audit, training
           and incremental operating costs

          Amount Cancelled as of                      1,982,393
          April 30, 2014

          Original Amount                            2,481,720



        Please note that a final statement and details of the Grant Accounts will be sent to you
separately, after the closing date.

       Except as specifically amended by this amendment letter, all other provisions of the
Grant Agreement remain in full force and effect.

         Please confirm your agreement to the foregoing by signing the form of confirmation set
forth below and returning one fully executed original of this letter to us and retaining one original
for your records.

                                          Yours sincerely,
                             INTERNATIONAL DEVELOPMENT ASSOCIATION




                                        CI gijHartwig Schafer
                                              Country Director
                                        Yemen, Egypt and Djibouti
                                    Middle East and North Africa Region

AGREED:
REPUBLIC OF YEMEN



    Authorized Representative               .

Name:    /I o.   , , -'
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