THE WORLD BANK 1R WZ KGROUP Adylbek A. Kasymaliev DO CU M ENTS June 23, 2017 Minister of Finance Ministry of Finance Bishkek KYRGYZ REPUBLIC Dear Mr. Kasymaliev, Re: Kyrgyz Republic: Health Results-Based Financing Pilot Project Amendment Letter to the Grant Agreement (TF013310) We refer to the Multi-Donor Trust Fund for Health Results Innovation Grant Agreement for Health Result-Based Pilot Project between the Kyrgyz Republic (the Recipient) and the International Development Association (the Association), acting as administrator of the Multi-Donor Trust Fund for Health Results Innovation dated December 30, 2013 (the Grant Agreement). We also refer to the letter of the Minister of Finance, dated December 9, 2016 requesting the Association to restructure the Project and to make certain amendments to the Grant Agreement in view of the proposed restructuring. The capitalized terms used in this amendment letter and not defined herein have the meanings ascribed to them in the Grant Agreement. We hereby propose to amend the Grant Agreement as follows: 1. Part 1 of Schedule 1 to the Grant Agreement shall be amended to include a new paragraph (b) to read as follows: "(b) Conducting a pay-for-performance pre-pilot scheme at the primary health care level, including financing of the performance-based payments against the performance score." Consequently, the current paragraph (b) shall become paragraph (c). 2. Section I.B in Schedule 2 to the Grant Agreement shall be amended to read as follows (modifications are shown in italics): "B. Participating Provider Agreements To facilitate the carrying out of Part I of the Project, the Recipient shall make part of the proceeds of the Financing allocated from time to time to Category 1 of the table set forth in Section IV.A.2 of this Schedule available to Participating Providers under agreements between MHIF and each of the Participating Providers ("Participating Provider Agreements"), under terms and conditions approved by the Association and based on the guidelines set forth in the Project Operational Manual, including but not limited to the following provisions." 3. Section II.A. 1 (b) shall be amended to read as follows (modifications are shown in italics): "4(b) The performance indicators referred to above in sub-paragraph (a) consist of the following: (ii The proportion of eligible rayon hospitals that received the authorized performance-based payments within two weeks after the MHIF's receipt of RBF payment to its bank account; (ii) The proportion of quarterly peer verification records for Groups 1 and 2 rayon hospitals submitted to MHIF within 30 days after the end of the quarter; (iii) The number of counter-verifications carried out for a subset of Group 1 rayon hospitals (20) and Group 2 rayon hospitals (20) every six (6) months; and (iv) The completion of Impact Evaluation surveys in accordance with the schedule set forth in the Project Operations Manual." 4. Section IV.B.1 (b) in Schedule 2 to this Grant Agreement shall be deleted. All the terms and conditions of the Legal Documents that have not been amended hereby shall remain unchanged and in full force and effect. Please confirm your agreement to the foregoing amendments on behalf of the Recipient, by signing, dating and returning two originals of this amendment letter and returning one fully signed original to us. The provisions of this amendment letter will become effective on the date upon which the Recipient dispatches to the Association notice that the execution and delivery of this amendment on behalf of the Recipient have been duly authorized or ratified. Sincerely, INTERNATIONAL DEVELOPMENT ASSOCIATION ByJ? L_j_ Sascha Djumena Acting Regional Director Central Asia CONFIRMED AND AGREED: KYRGYZ REPUBLIC By: * Z- Authorized Iepresentative Name: ? Kl q-1 Title: Ive__er______ Date: YO-0 - O/