The World Bank New Delhi Office Phone: +911141479301/+911149247601 INT&ATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT 70 Lodi Estate Mailing Address: P.0 Box 416 INTERNATIONAL DEVELOPMENT ASSOCIATION O pF CO'lAL DOCUMENTS February 20, 2017 Mr. Raj Kumar Joint Secretary Department of Economic Affairs Ministry of Finance Government of India Room No. 40B, North Block New Delhi 110001 Dear Mr. Kumar: India: Second Technical / Engineering Education Quality Improvement Project (TEQIP II) (Credit No. 4685-IN) - Amendment Letter to the Financing Agreement We refer to the Financing Agreement between India ("Recipient") and the International Development Association ("Association"), dated July 14, 2010, as amended ("Financing Agreement) with respect to the above reference project ("Project"). Terms not otherwise defined herein shall have the meanings assigned to them in the Financing Agreement. The purpose of this Amendment Letter is to reflect the most recent modifications that are needed in the Financing Agreement, which have been confirmed by DEA via email dated November 22, 2016: a) Provision of technical assistance to AICTE: Based upon the recommendations of the EFC meeting (April 19, 2016) and subsequent correspondences between DEA and MHRD (May 12, 2016), new activities are being added under TEQIP II, including provision of technical assistance to AICTE. b) Financing Ratio: Based upon the Government of India's new arrangements for co- financing with State Governments, the MHRD confirmed during the Joint Review Mission (March 1-14, 2016) reflected in the letter sent by Mr. Onno Ruhl dated April 22, 2016 with the findings of the Joint Review Mission, that it was decided that the new center-state funding pattern for TEQIP II was 50%:50%. Subsequently, MHRD has informed DEA that the first release under the new funding pattern was made on December, 17, 2016, and therefore, said funding pattern is being modified accordingly. c) Extension of Closing Date: Based upon DEA's letter dated September 6', 2016 the Closing Date of the Project is being extended until March 31, 2017. Consequently, the Financing Agreement is hereby amended as set forth below: 1. Schedule 1, Part B of the Financing Agreement is hereby amended to read as follows: "Part B: Improving Education System Management 1. Strengthening the education sector's capacity through, inter alia: (a) the establishment of quality assurance practices and the promotion of effective governance in Participating States; (b) the establishment of a task force responsible for strategic planning of technical education HeadquarterL Washington DC Q USA Mr. Raj Kumar -2- February 20, 2017 in Participating States; (c) the establishment of curriculum development cells and the enhancement of management practices in universities affiliated with Project institutions; (d) the sharing of best practices with non-Participating Institutions; and (e) the organizing of professional development programs for policy planners and administrators. 2. Improving the education system's management, monitoring and evaluation capacity of Participating States, Participating Institutions and the IT through, inter alia: (a) the establishment and operation of Project management units at the national and State levels; (b) the establishment of an education management information system; (c) the carrying out of stakeholder satisfaction surveys, performance and fiduciary audits, and impact assessment studies; and (d) the carrying out of implementation and impact reviews of Institutional Development Subprojects. 3. Provision of technical assistance for AICTE to strengthen sector governance, management, accountability mechanisms and performance, including through: (a) the development and implementing of engineering students assessment of learning outcomes, and (b) curriculum review and reforms." 2. The Table in Schedule 1, Section IV.A.2 of the Financing Agreement is hereby replaced in its entirety and amended to read as follows: Amount of the Percentage of Expenditures Financing Allocated to be Financed Category (expressed in SDR) (inclusive of Taxes) (1) Goods, works, 134,630,000 60% until December 16, 2015 consultants' services, and training (including 50% from December 17, workshops) and operating 2015' to the Closing Date costs for the Project; and specified in Section IV.B.2. Institutional Development of Schedule 2 to the Subprojects Financing Agreement. Cancelled as of December 51,770,000 30, 2013 TOTAL AMOUNT 186,400,000 3. Section IV.B.2 of Schedule 2 is hereby amended to read as follows: "The Closing Date is March 31, 2017". 4. A new definition is added to the definitions listed in the Financing Agreement's Appendix as number I and all subsequent definitions are hereby renumbered accordingly: Withdrawal applications processed as of December 17, 2015 to date shall be adjusted against future withdrawal applications in order to accurately account for the appropriate central-state funding pattern applicable to the Project. Mr. Raj Kumar -3- February 20, 2017 "1. All India Council for Technical Education" and the acronym "AICTE" mean the statutory national body, established and operating under the All India Council of Technical Education Act 1987, with the mandate to promote the quality of technical education in India through planned and coordinated development, and the regulation and maintenance of norms and standards". Except as specifically provided in this Amendment Letter, all other provisions of the Financing Agreement, shall remain in full force and effect. Please confirm the Recipient's agreement with the foregoing amendment by countersigning and duly dating the confirmation form set forth herein below, and returning one fully signed original of this letter of amendment to us. This Amendment Letter shall become effective as of the date of the latest countersignature upon the Association's receipt of the duly countersigned original. With regards, Yours sincerely, INTERNATIONAL DEVELOPMENT ASSOCIATION Junaid Kamal Ahmad Country Director, India AGREED: INDIA By______________ IName ~ .rH~~/~~crt' itof Eco. Aif-ifS Title m wwo,ot. of India ;{ fcA/New Deihi Date Mr. Raj Kumar -4- February 20, 2017 Copy to: Mr. Subhash Chandra Garg, Executive Director (India), the World Bank Mr. Neeraj Mittal, Senior Advisor to the Executive Director (India), World Bank Mr. Saurabh Vijay, Advisor to Executive Director (India), the World Bank Mr. Bhaskar Dasgupta, Director (MI), Department of Economic Affairs, Ministry of Finance Mr. Jasvinder Singh, Jt. Controller - Aid, Accounts and Audit, Department of Economic Affairs, Ministry of Finance Mr. R. Subrahmanyam, Additional Secretary (TE) & TEQIP National Project Director, Department of Higher Education, Ministry of Human Resource Development Ms. Tripti Gurha, Director, Department of Higher Education, Ministry of Human Resource Development