OFFICIAL DOCUMENTS THE WORLD BANK 41 Kazybek Bi Str. Bldg. A, 4h floor Tel. +7 (727) 3778220 IBRD* IDA I WORLD BANKGROUP Almaty, 050010 Fax +7 (727) 3778276 Republic of Kazakhstan Central Asia Regional Office August 18, 2014 Mr. Abdusalom Kurbonov Minister Ministry of Finance Dushanbe Republic of Tajikistan Re: Tajikistan: Grant No. H726-TJ Social Safety Net Strengthening Project Amendment to the Financing Agreement Dear Mr. Kurbonov: We refer to the Financing Agreement (the Agreement) between the Republic of Tajikistan (the "Recipient") and the International Development Association (the "Association"), dated July 13, 2011. We also refer to request of your Ministry of May 22, 2014 to amend the Agreement. We are pleased to inform you that the Association concurs with your request. With regard to your request to extend the closing date of the Grant, we are pleased to confirm that the Association has established June 30, 2016 as the later date for purposes of Section IV.B.2 of Schedule 2 to the Financing Agreement. Further to your request, and in line with the latest changes within the Government, the Association agrees to amend the Agreement as follows: 1. Schedule 1, Project Description, to the Agreement is hereby restated as follows: "SCHEDULE 1 Project Description The objective of the Project is to assist the Recipient in improving its capacity to plan, monitor and manage social assistance for the poor through the development of a national registry of social protection and the provision of training, equipment and related items for improving said capacity. The Project consists of the following parts: Part A: Establishing the National Registry of Social Protection and Supporting Development of the Targeted Social Assistance Program This component consists of the following subparts: 1. Establishing a National Registry of Social Protection (NRSP) for administering Targeted Social Assistance (TSA) program, including: (i) determining eligibility for benefits; (ii) registering for benefit, (iii) managing payments; and (iv) monitoring, planning and budgeting of the TSA benefits. The activities will include assessing system requirements; developing system specifications; developing the software and database; installing the hardware; establishing an NRSP data center; implementing the new NRSP system to be accessible and operable at the central, regional and district levels; providing training in NRSP operation; and providing for NRSP system maintenance. 2. Developing policy, legal, administrative, and institutional framework for operation and rollout of the TSA program, including (i) strengthening capacity of the SASP; (ii) developing a legal and regulatory framework to enable the administration of the TSA benefits, (iii) preparing various operational procedures, manuals, methodology, and guidelines for the new program; (iv) establishing, improving and rehabilitating physical facilities of SASP in Dushanbe to enable SASP to operate the TSA program, including data center to host the NRSP; (v) establishing at least one regional data processing center on a pilot basis; (vi) developing and initiating implementation of a national roll-out strategy for the TSA program. To support the above-identified activities, the Project will finance (i) procurement of goods, including computers and other hardware and office equipment, communications equipment, stable electricity supply and Internet connection, office furniture and vehicles, (ii) contracting of consulting services for development of the NRSP software and database, household surveys, legal and operational documents for the TSA program, and provision of other technical advisory and operational services in support of development and rollout of the TSA program, (iii) minor works to strengthen existing physical infrastructure as specified in Subpart A(2) above, and (iv) Operating Costs. Part B: Capacity-Building for Launching and Initiating the Rollout of the Targeted Social Assistance Program Designing and implementing training programs, workshops and seminars for management and staff on social protection policies, service delivery and modernization reforms, and specific guidelines and procedures of the TSA program, in order to build the capacity of MLSPP (until August 31, 2014), MHSPP (after September 1, 2014), MoF and community stakeholders to launch and implement a nation-wide system of the TSA as well as to maintain and operate said system, including the NRSP. This component will also finance activities of public awareness campaign, including preparation and dissemination of all required training, awareness materials, and Operating Costs. Part C: Project Implementation Support Providing support for overall management and coordination of the Project and for carrying out fiduciary responsibilities, including procurement, financial reporting and accounting activities, audit, other reporting for the Project and Project's Operating Costs. 2. Part A, Institutional Arrangements, of Section I of Schedule 2 to the Agreement is replaced in its entirety with the following: The Recipient shall carry out the Project in accordance with the following institutional arrangements: 1. As of September 1, 2014, the Recipient, through MHSPP, shall carry out the Project in accordance with the requirements, criteria, organizational arrangements and operational procedures set forth in POM and shall not assign, amend, abrogate or waive any provisions of POM without prior approval of the Association. 2. At all times during the implementation of the Project, the Recipient shall establish PCG and maintain it with a composition, resources and terms of reference satisfactory to the Association. 3. The Recipient, through MHSPP, shall take, or cause to be taken, all measures necessary to ensure that Project activities will not involve land acquisition and that no human resettlements will be displaced as a result of the Project activities. 4. By no later than August 31, 2014, the MHSPP shall hire Financial Management and Procurement consultants, to be responsible for fiduciary aspects of the Project implementation as part of the fiduciary team of the MHSPP, as set forth in the POM. 5. By no later than September 30, 2014, the MHSPP shall sign a contract to procure, install and adapt automated accounting software system for the Project needs satisfactory to the Association. 6. By no later than August 31, 2014, the Recipient shall amend the POM to reflect the new institutional arrangements implemented by virtue of the amendment of the Financing Agreement. Such amendment will be subject to prior review and satisfaction by the Association. 7. By no later than July 31, 2014, the Recipient shall amend the Procurement Plan to reflect the revised implementation plan and schedule. Such amendment will be subject to prior review and satisfaction by the Association. 3. Part A, Project Reports, of Section II of Schedule 2 to the Agreement is amended as follows: The Recipient shall monitor and evaluate the progress of the Project and prepare Project Reports in accordance with the provisions of Section 4.08 of the General Conditions and on the basis of indicators agreed with the Association. Each Project Report shall cover the period of six months, and shall be furnished to the Association not later than forty five (45) days after the end of the period covered by such report. 4. Paragraph 2 of Part A, General, of Section IV of Schedule 2 of the Agreement is hereby amended as follows: Category Amount of the Financing Percentage of Allocated (expressed in Expenditures to be SDR) Financed (inclusive of Taxes) (1) Goods, Works, 2,100,000 100% Consultants' Services and Non- consulting Services for the Project, Training and Operating Costs TOTAL AMOUNT 2.100,000 For the purpose of this Schedule: (a) the term "Operating Costs" means incremental operating costs incurred by the MLSPP and PCG prior to August 31, 2014, and MHSPP after September 1, 2014 on account of Project implementation, audit, management and monitoring, including minor office renovation, equipment maintenance and repair, office supplies for the operation, vehicle maintenance and repair, local travel, communication, internet connectivity, translation and interpretation, bank charges, social charges with the exclusion of social charges assessed on salaries of the civil servants, and other miscellaneous costs directly associated with the Project, all based on periodic budgets acceptable to the Association, and; (b) the term "training" means expenditures for Project related study tours, training courses, seminars, workshops and other training activities not included under goods or service providers' contracts, including costs of training materials, space and equipment rental, travel and per diem costs of trainees and trainers. 5. Section I, Definitions, Appendix to the Agreement is restated in its entirety as follows: Section I. Definitions 1. "Anti-Corruption Guidelines" means the "Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants", dated October 15, 2006 and revised in January 2011. 2. "Category" means a category set forth in the table in Section IV of Schedule 2 to this Agreement. 3. "Consultant Guidelines" means the "Guidelines: Selection and Employment of Consultants under IBRD Loans and IDA Credits and Grants by World Bank Borrowers" published by the Bank in January 2011. 4. "EOP" means the Recipient's Executive Office of the President, or any successor thereto. 5. "General Conditions" means the "International Development Association General Conditions for Credits and Grants," dated July 31, 2010. 6. "MHSPP" means the Recipient's Ministry of Health and Social Protection of Population, or any successor thereto. 7. "MLSPP" means the Recipient's Ministry of Labor and Social Protection of Population, or any successor thereto. 8. "MoF" means the Recipient's Ministry of Finance, or any successor thereto. 9. "PCG" means the Recipient's Project Coordinating Group established and operating within EOP, until August 31, 2014; and from September 1 2014 within MHSPP and representing MHSPP as set forth in the POM. 10. "POM" means the Project Operational Manual to be adopted by the Recipient pursuant to Section 4.01 of this Agreement, and as amended pursuant to the Amendment to the Financing Agreement, and which shall include the Financial Management Manual and the Procurement Manual. 11. "Procurement Guidelines" means the "Guidelines: Procurement of Goods, Works and Non-consulting Services under IBRD Loans and IDA Credits and Grants by World Bank Borrowers" published by the Bank in January 2011. 12. "Procurement Plan" means the Recipient's procurement plan for the Project, dated May 4, 2011, and as amended pursuant to the Amendment to the Financing Agreement and referred to in paragraph 1.18 of the Procurement Guidelines and paragraph 1.25 of the Consultant Guidelines, as the same shall be updated from time to time in accordance with the provisions of said paragraphs. 13. "SASP" means recipient's State Agency for Social Protection established under MHSPP and responsible for administration of the TSA program. All sections of the Agreement that have not been amended hereby shall remain unchanged and in full force and effect. Please confirm your agreement with the foregoing by signing and dating the confirmation on the enclosed copy of this Amendment Letter and returning it to the Association. This Amendment Letter shall become effective upon the date of its countersignature. Very truly yours, INTERNATIONAL DEVELOPMENT ASSOCIATION By_ Saroj Kumar Jha Regional Director Central Asia AGREED: REPUBLIC OF TAJIKIS By: 7 Name: ____________&o \C/ Title: ___ __ __ __ __ Date: .e tevb o2Y