THE WORLD BANK IBRD IDA I WORLDBANKGROUP OFFICIAL January 19, 2018 H.E. Mr. Somdy Douangdy DOCUMENTS Deputy Prime Minister Minister of Finance Ministry of Finance 23rd Singha Road Saysettha District Vientiane, Lao PDR Re: Lao People's Democratic Republic: Second Trade Development Facility Project MDTF Grant No. TF014189 and MDTF Grant No. TF0A3946 Amendment to Grant Agreement Excellency: We refer to the Grant Agreement, as amended ("Agreement") dated March 28, 2013, between the Lao People's Democratic Republic and the International Development Association ("World Bank"), acting as administrator of the Second Trade Development Facility Multi Donor Trust Fund ("Trust Fund") for the Second Trade Development Facility Project ("Project"). The World Bank proposes to amend the Agreement to increase the amount of the Grant made available to the Recipient by an additional one million two hundred thousand United States Dollars (U.S.$1,200,000) under the Trust Fund account No. TFOA3946. This increase reflects additional contributions received from the Trust Fund donors in accordance with Article III, Section 3.03 of the Agreement. Accordingly, the Agreement is amended as set out below: 1. Article III, Section 3.01 of the Agreement is amended to increase the Grant amount by one million two hundred thousand Unites States Dollars (U.S.$1,200,000) as follows: "3.01. The World Bank agrees to extend to the Recipient, on the terms and conditions set forth or referred to in this Agreement, a grant in an amount not exceeding twelve million four hundred thousand United States Dollars (U.S. $12,400,000) ("Grant") to assist in financing the Project." 2. The withdrawal table in Section IV.A.2 of Schedule 2 to the Agreement is amended as stated in the Attachment to this letter of amendment. Except as specifically amended by this letter of amendment, all other provisions of the Agreement shall remain unchanged and in full force and effect. 1818 H Street NW - Washington, DC 20433 USA Lao People's Democratic Republic -2- Grant No. TFO14189 and TF0A3946 Please confirm your agreement with the amendments set out above by countersigning, dating and returning to us the enclosed copy of this letter of amendment. Upon receipt by the World Bank of the countersigned copy of this letter of amendment, this letter of amendment shall become effective as of the date of countersignature. Sincerely, INTERNATIONAL DEVELOPMENT ASSOCIATION By Ellen Goldstein Country Director Myanmar, Cambodia and Lao PDR East Asia and Pacific Region AGREED: LAO PEOPLE'S DEMOCRATIC REPUBLIC By: Authorized Representative Name: ThIpphakone CHANTHAVONGSA Title: Date: 5 MAR 2018 Lao People's Democratic Republic -3- Grant No. TF014189 and TF0A3946 Attachment Revised Grant Withdrawal Schedule (Section IV.A.2 of Schedule 2 to the Agreement) Category Amount of the Amount of the Percentage of Grant TF014189 Grant TF0A3946 Expenditures to be Allocated (expressed in Allocated (expressed in Financed USD) USD) (inclusive of Taxes) (1) Goods, non- 9,068,400 2,500,000 60% from TF014189 consulting services, and 20% TF0A3946 consultants' services, until IDA Grant No. Incremental Operating H819-LA has been Costs, and Training for fully disbursed the Project except under Part B. .(b) of the Project 60% from TF014189 and 40% TFOA3946 after IDA Grant No. H819-LA has been fully disbursed 100% from TFOA3946 after IDA Grant No. H819-LA and TFO14189 has been fully disbursed (2) Matching Grants 831,600 0 80% from TFO 14189 under Part B.1.(b) of and until IDA Grant the Project No. H819-LA has been fully disbursed 100% from TF014189 after IDA Grant No. H819-LA and has been fully disbursed TOTAL AMOUNT 9,900,000 2,500,000