S.-CM uidn THE Level 19, 14 Martin Place WLI.ITAI .~CML Building WORLD SYDNEY NSW 2000 BANK AUSTRALIA Telephone (61-2) 9223 7773 Fax (61-2) 9235 6593 April 16, 2013 H.E. Emilia Pires Minister of Finance Ministry of Finance Palacio do Governo Edificio 5, 1. Andar, Dili DEMOCRATIC REPUBLIC OF TIMOR-LESTE RSR-MDTF Grant No. TF099833 (Recipient Executed) Timor-Leste Social Protection Administration Project Letter of Amendment Excellency: We refer to the Grant Agreement (the "Agreement"), dated October 25, 2011, for the Timor-Leste Social Protection Administration Project (the "Project") between the Democratic Republic of Timor-Leste ("Recipient") and the International Bank for Reconstruction and Development and the International Development Association (collectively, the "World Bank"), acting as administrator of grant funds provided by various donors ("Donors") under the Rapid Social Response Multi-Donor Trust Fund, as amended to date. Pursuant to your letter No. 00001/V/GMF/2012 dated 8 August 2012, the World Bank hereby agrees to amend Article 1.02 (i) of the Annex of the Agreement to read as follows: (i) "Incremental Operating Costs" means incremental expenses incurred by the Recipient on account of Project implementation, support and management and reasonably related thereto, as included in an annual budget approved by the World Bank, including salaries of contracted administrative support staff; advertising for Project-related positions; public announcements related to the Project activities; translation and interpretation; costs associated with Project meetings (including inter alia facility rental, coffee breaks, printing); communications; utilities; stationery; domestic and international travel cost; conveyance and subsistence; vehicle rentals and equipment, and maintenance contracts, but excluding salaries of the Recipient's officials and civil servants." In addition to this change, the World Bank suggests to amend Article 1.02 (iv) of the Annex of the Agreement to read as follows: (iv) " "Training and Workshops" means reasonable expenditures incurred by the Recipient in connection with the holding of training and workshops under the Project as shall have been agreed with the World Bank, including the international and 2 domestic travel costs and per diem of trainers and trainees, and the rental of facilities and the production and/or acquisition and distribution of training materials." All terms of the Agreement not hereby amended shall remain in full force and effect. Please confirm the Recipient's agreement to the foregoing by having an authorized official of the Recipient sign and date the enclosed copy of this Letter of Amendment, and returning it to the World Bank. This Letter of Amendment shall become effective as of October 31, 2011, on the date of the Recipient's countersignature. Sincerely, Franz Drees-Gross Country Director Timor-Leste, Papua New Guinea and Pacific Islands East Asia and Pacific Region AGREED: Democratic Republic of Timor-Leste By 5Ajjj TI-T VtfWS.~ 2CAEO 6" Authorized Representative Title V% - n t E itlartc Date &LG -kfw%L - 2oT c.c. Minister Isabel Guterres, Minister of Social Solidarity, RDTL Santina Viegas-Cardoso, Vice-Minister of Finance, RDTL