OFFICIAL A The World Bank Docum"TaIt. (202) 473-1000 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Washington, D.C; 20433 Cable Address: INTBAFRAD INTERNATIONAL DEVELOPMENT ASSOCIATION 1 A Cable Address: INDEVAS July17, 2012 H. E. Ridvan Bode Minister Ministry of Finance Bulevardi "Deshmoret e Kombit" Tirana, Albania Re: ALBANIA: IDA Credit No. 3513-ALB, Social Services Delivery Project IBRD Loan No. 7690-AL, Additional Financing for the Social Services Delivery Project Amendments to the Loan Agreement and Reallocations of Credit and Loan Proceeds Excllency: 1. We refer to: (a) the Development Credit Agreement for the captioned Project dated July 3, 2001, between Albania and the Intrnational Development Association ("IDA"), as amended ("Credit Agreement"); and (b) the Loan Agreement for the captioned Project, dated April 7, 2009, betveen Albania and the International Bank for Reconstruction and Development ("IBRD") ("Loan Agreement"). We refer also to your letters both dated March 28, 2012, requesting a reallocation of Credit and Loan funds and the restructuring of various project activities under the captioned Project. 2. 1 am pleased to inform you that IDA and IBRD concur with your requests. Accordingly, the IDA and IBRD amends Part E, paragraph 2 of Schedule I to the Loan Agreement to read as fol ows: "'2. Development of the SII and the Central Registry of Contributors and Beneficiaries ('Central Registry'), through the provision of goods and services, including: (a) the full digitalization of records of past work histories; (b) setting up an archive system of contributions and benefits history to facilitate benefit awards; (c) the development of a new reporting system on pension contributions; (d) the development of an integrated software system for the management of the Central Registry; (e) the development of an information technology network among S11's regional offices, S11's headquarters, anc other key institutions; and (f) office furniture for SII's and the Central Registry's offices." 3. Additionally, IDA and IBRD hreby reallocate the proceeds of the Credit allocated in the table in paragraph I of Part A of Schedule I to the Credit Agreement and the proceeds of the Loan allocated in the table in paragraph 2 of Section IV.A of Schedule 2 to the Loan Agreement as set out Attachments I and 2, respectively, to this letter. Sincerely, Lilia Burunciuc Acting Country Director and Regional Coordinator f or Southeast Europe Europe and Central Asia Region ACREED: AlB3AI By Abth ized Re sentativc Narie: Dar.: 2 Attachment 1 (IDA Credit 3513-ALB) Amount of the Credit Allocated % of (Expressed in Expenditures Category SDR Equivalent to be Financed (1) Works (a) for Part C.1 1,367,866.05 85% of the Project (b) other than Part C.1 811,186.00 75% of the Project (2) Goods (a) for Part C.1 1,196,357.29 100% of foreign of the Project expenditures, 100% of local (b) other than Part C.1 952,303.66 expenditures (ex-factory cost) and 85% of local expenditures for other items procured locally (3) Consultants' Services and Training 2,567,976.00 100% (a) for Part C.1 of the 70,499.00 100% Project (b) other than Part C. 1 of 325,529.00 100% the Project (4) Incremental 608,283.00 90% Operating Costs (5) Unallocated 0 TOTAL 7,900,000 3 Attachment 2 (IBRD Loan 7690-AL) Amount of the Loan Percentage of Allocated Expenditures to Category (Expressed in USD) be Financed () Goods and Works under Part E 4,518,175 80% of the Project (2) Consultants' Services and 454,325 100% Training under Part E of the Project (3) Incremental Operating Costs 15,000 100% under Part E.5 of the Project (.1) Premia for Interest Rate Caps and Amount payable Caps and Interest Rate Collars pursuant to Section 2.07(c) of this Agreement in accordance with Section 4.05(c) of the General Conditions (5) Front-end Fee 12,500 Amount payable pursuant to Section 2.03 of this Agreement in accordance with Section 2.07(b) of the General Conditions TOTAL AMOUNT 5,000,00) 4