The W6rid Bank (202) 473-1000 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENI D Ck 20433 Cable Address: INTBAFRAD INTERNATIONAL DEVELOPMENT ASSOCIATION Cable Address: INDEVAS June 28, 2012 H.E. Hazrat Omar Zakhilwal Minister of Finance Ministry of Finance Kabul Islamic Republic of Afghanistan Re: Afghanistan Reconstruction Trust Fund Grant Agreement Second Public Financial Management Reform Project (TF010024) Amendment - Increase of Grant Amount Excilency, 1. I refer to the Afghanistan Reconstruction Trust Fund Grant Agreement dated August 9, 2011 (the "Grant Agreement") between the [slamic Republic of Afghanistan (the "Recipient") and the International Development Association, in its capacity as the administrator of the Afghanistan Reconstruction Trust Fund (the "ARTF") for the Second Public Financial Management Reform Project ("Project"). 2. I further refer to the proposal recently approved on May 29, 2012 by the ARTF's Management Committee, providing additional funds for the financing of the Project in the amount of thirteen million United States Dollars (US$13,000,000). 3. I am therefore pleased to propose that the Grant Agreement be amended as follows: (i) Section 3.01 of the Grant Agreement is hereby amended to read as follows: "The Administrator agrees to extend to the Recipient, on the terms and conditions set forth or referred to in this Agreement, a grant in an amount equal to seventy three million United States Dollars ($73,000,000) ("Grant") to assist in financing the Project." (ii) The table in paragraph 2 of Section IV of Schedule 2 to the Grant Agreement is hereby amended to read as follo ws: Percentage of Amount of the Expenditures to be Grant Allocated Financed Category (expressed in USD) (inclusive of Taxes) Goods, non-consulting services, consultants' services, Incremental Operating Costs and 73,000,000 100% Training and Workshops under the Project TOTAL AMOUNT 73,000,000 -2- 4. Unless the context otherwise required, and except where otherwise defined in this ame idment letter, all capitalized terms contained herein shall have the meaning given to them in the Grar Agreement. 5. All terms and conditions of the Grant Agreement that have not been amended pursuant to this amendment letter shall remain unchanged and in full force and effect. 6. Please confirm your agreement :o the amendment set out above by signing, or arranging for an authorized representative of the Recipient to sign, the form of confirmation set out below, returning one fully executed original of this amendment letter to us at your earliest convenience and retaining one original for your records. Upon receipt by the International Development Association of this countersigned copy, this amendment shall become effective as of the date of the countersignature. Sincerely, INTERNATIONAL DEVELOPMENT ASSOCIATION (acting as Administrator of the Afghanistan Reconstruction Trust Fund) Robert . aum Country Directo or Afghanistan South Asia Region CONFIRMED and AGREED: ISLAMIC REPUBLIC OF AFGHANISTAN Signature: Narie: Title: -bpi)A1~ Date: 0 1- ,V