OFFICIAL DOCUMENTS i The World Bank ' ons I i tww. ' (202) 473-1000 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Washington, D.C. 20433 Cable Address: INTBAFRAD INTERNATIONAL DEVELOPMENT ASSOCIATION U.S.A. Cable Address: INDEVAS May 1, 2014 Hon. Kaifala Marrah Minister of Finance and Economic Development Ministry of Finance and Economic Development George Street, Freetown Sierra Leone Honorable Minister: Re: SIERRA LEONE - Pay and Performance Project IDA Credit Number 5122-SL Amendment to the Financing Agreement We refer to the Financing Agreement (the Agreement) dated June 26, 2012 for the above- referenced Project between the Republic of Sierra Leone ("Recipient") and the International Development Association ("Association"). We also refer to your letter dated March 04, 2014 requesting for amendments to the Financing Agreement. We are pleased to inform you that the Association hereby agrees to your request and proposes to amend the Agreement as follows: 1. The table under Section IV.A.2 of Schedule 2 to the Agreement is amended to read as set forth in the Attachment I to this amendment letter. 2. Schedule 4 to the Agreement is amended to read as set forth in the Attachment 2 to this amendment letter. 3. Section IV.B.5 of Schedule 2 to the Agreement is amended to read as follows: 5. "The Closing Date is October 31, 2016." All other provisions of the Agreement, except as herein amended, shall remain in full force and effect. I Hon. Kaifala Marrah -2- Please confirm your agreement with the foregoing amendments to the Agreement, on behalf of the Recipient, by countersigning and dating the two original copies of this letter and returning one countersigned and dated original to us. Upon receipt by the World Bank of the copy of this letter of amendment countersigned and dated by you, this letter of amendment will become effective as of the date of the countersignature. Sincerely, INTERNATIONAL DEVELOPMENT ASSOCIATION 'usup5ha B. Crookes Country Director for Sierra L ne Africa Region AGREED: REPUBLIC OF SIERRA LEONE By: Name: Title: I[(v Date: _ _ _ _ _ _ _ _ _ _ _ _ _ Hon. Kaifala Marrah -3- ATTACHMENT 1 Category Amount of Percentage of Date on or after which the Credit Expenditures Withdrawal may be Made Allocated to be (expressed in Financed SDR) (inclusive of Taxes) (1) Eligible Expenditures Program under Part I of the Project: (a) First Withdrawal 2,634,648 100% July 15, 2012 or Effective Date if said Effective Date is later than July 15, 2012 (b) Second Withdrawal 1,634,649 100% six months after First Withdrawal (c) Third Withdrawal 645,161 100% one year after Second Withdrawal (d) Fourth Withdrawal 1,290,323 100% one year after Third Withdrawal (e) Fifth Withdrawal 2,258,065 100% one year after Fourth Withdrawal (f) Sixth Withdrawal 1,246,831 100% one year after Fifth Withdrawal (2) Goods, non-consulting 1,290,323 100% n/a services, consultants' services, Operating Costs, and Training under Part 2 of the Project TOTAL AMOUNT 11,000,000 ATACHMENT 2 SCHEDULE 4 Disbursement Linked Indicators ACTIONS TO BE ACTIONS TO BE ACTIONS TO BE COMPLETED FOR COMPLETED FOR C TN TO C TN TO COMPLETED FOR DISBURSEMENT DISBURSEMENTS IN DISBURSEMENTS IN COMPLETED FOR COMPLETED FOR DISBURSEMENTS IN LINKED YA0YER1DISBURSEMENTS IN DISBURSEMENTS INYER LIKDYEARO0 YEAR 1 YEAR 2 YEAR 3 YEAR 3 INDICATOR (THROUGH JUNE 30, (JULY 1, 2012 THROUGH (CALENDAR YEAR 2013 (CALENDAR 2014) (CALENDAR 2015) 2012) DECEMBER 31,2012) (1) Pay reform 1.1) HRMO conducted have bee evaluaedvin and completed a and cmpleed ahave been evaluated in accordance with a Job Remuneration Evaluation Scheme and Survey. assigned to a Pay and Grading Structure approved by the CSSC. (1.3) 100 % of Civil Servants in Grade six and above paid according to the Pay and Grading approved Pay (2) Recruitment (2. 1) The appropriate (2.3) At least 60% of Priority (2.4) At least 80% of Priority (2.5) At least 90 % of priority (2.6) LTA Mainstreaming open, competitive Vacancies have been Vacancies have been filled vacancies have been filled Policy and Action Plan and staffing and merit-based filled in accordance with in accordance with the in accordance with the have been implemented. Recruitment the Annual Recruitment Annual Recruitment Plans Annual Recruitment Plans Procedures have Plans and the approved and the approved and the approved been designed by Recruitment Procedures. Recruitment Procedures. Recruitment Procedures. HRMO and approved by CSSC. 2.2) Seven staff have been recruited to PSC and trained to manage recruitments Hon. Kaifala Marrah -5- April 21, 2014 and selection. (3.1) Appropriate guidelines (3.2)._All Pilot Ministries (3.4) At least 75% of the (3) Performance for Performance Contract have completed one annual annual Performance management management for Civil cycle of the Performance Reports for Civil Servants Servants in Grade 11 and Appraisal Process for Civil in Grade 11 and above in above in all Ministries Servants in Grade 11 and Pilot Ministries are of have been prepared by above. appropriate quality. HRMO and approved by CSSC. (3.3) Supervisors in pilot Ministries at Central, Regional and District level trained in performance appraisal skills