OFFICIAL DOCU MENT The World Bank 1818 H Stree N.W. 2) 473-1000 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Washington, b Ule Address: INTBAFRAD INTERNATIONAL DEVELOPMENT ASSOCIATION U.S.A. Cable Address: INDEVAS February 7, 2013 His Excellency Daniel Chitoiu Vice Prime Minister Minister of Public Finance Ministry of Public Finance Bucharest, Romania Re: ROMANIA: Knowledge Economy Project (Loan No. 4809-RO) Third Amendment to the Loan Agreement Excellency, 1. We refer to the Loan Agreement between Romania (the "Borrower") and International Bank for Reconstruction and Development (the "Bank") dated December 8, 2005, as amended, with respect to the above-captioned Project ("Loan Agreement"). Please note that capitalized terms used in this letter (the "Amendment Letter") and not defined herein have the meaning ascribed to them in the Loan Agreement. 2. We also refer to your letter dated January 23, 2013 wherein a request is made to: (a) amend the Loan Agreement; and (b) cancel nineteen million five hundred ninety-five thousand four hundred thirty-six Dollars and forty-five cents (U.S. $ 19,595,436.45) from the Loan (pursuant to the provisions of Section 7.01 (Cancellation by the Borrower) of the General Conditions for Loans). 3. We are pleased to inform you that the Bank concurs with your request and hereby amends the Loan Agreement as follows: (a) Paragraph 2 (g) of Schedule I to the Loan Agreement is hereby amended to read in its entirety as follows: "(g) the term "Incremental Operating Costs" means the incremental operating costs incurred by the PMU on account of the Project implementation comprising: salaries of staff (other than the salaries of the civil servants); communication (including postage and internet); procurement related advertising costs; local transportation; fuel; operating, maintenance and insurance costs for vehicles; rent of the office accommodation; refurbishment and rehabilitation of offices including equipment; office supplies, maintenance and insurance of the office equipment; Project related travel and per diem allowances including accommodation and local transportation; banking charges; training of PMU staff; and the archiving of Project documents." (b) The table in Paragraph I of Schedule I to the Loan Agreement is amended to reflect the cancellation by the Borrower in the amount of nineteen million five hundred ninety-five thousand four hundred thirty-six Dollars and forty-five cents (U.S. $ 19,595,436.45). Consequently, the revised table is hereby replaced to read in its entirety as set forth in the Annex to this Amendment Letter. Phone (202) 473-0655 Fax (202) 522-2566 H.E. Daniel Chitoiu 2 February 7, 2013 (c) Part B.2 of Schedule 2 to the Loan Agreement is revised to read in its entirety as follows: "2. Provision of consultants' services to government authorities for the development of an integrated network for citizen status information and documentation." 4. Schedule 3, the Amortization Schedule, is being revised by the Bank as a result of the cancellation, and the revised figures will be sent to you promptly following the signing of this Amendment Letter. 5. The revised Supplemental Letter No.2 on Performance and Monitoring Indicators is provided separately. 6. All other provisions of the Loan Agreement except as amended through this Amendment Letter shall remain in full force and effect. 7. Please confirm your agreement with the foregoing amendment by signing and dating two originals of this Amendment Letter in the spaces provided below. This Amendment Letter shall become effective as of the date of countersignature, upon receipt by the Bank of one fully executed original of this Amendment Letter. 8. Please also note that the approved Restructuring Paper dated February 1, 2013 will be disclosed on the Bank's external website. Sincerely, INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Ismail Radwan Acting Country Director Central Europe and the Baltic Countries Europe and Central Asia Region AGREED: ROMANIA By: Authorized Representative Name: CLAUDIU GRIGORAS DOLTU Title: SECRETARY OF STATE Date: FEBRUARY 19, 2013 H.E. Daniel Chitoiu 3 February 7, 2013 ANNEX Amount of the Loan Allocated % of Expenditures "Cate2ory (Expressed in Dollars) to be Financed (1) Goods 23,114,222.00 100 % of foreign expenditures, 100% of local expenditures (ex- factory cost) and 80% of local expenditures for other items procured locally (2) Operating Costs 0 100% (3) Consultants' Services and 3,766,412.00 85% of foreign expenditures and Audits 75% of local expenditures (4) Dissemination, Monitoring 2,152,940.97 85% of foreign expenditures and and Evaluation 75% of local expenditures (5) Training 6,602,804.67 100% (6) Grant Facility 1,392,191.34 100% (7) Incremental Operating Costs 1,808,829.00 75% (8) Refunding of Project 1,464,038.47 Amounts due pursuant to Section Preparation Advance 2.02 (c) of this Agreement (9) Unallocated 0 (10) Goods, Consultants' 103,125.10.00 100% of all expenditures incurred Services and Audits, after September 9, 2011. Dissemination, Monitoring and Evaluation, Training, Grant Facility and Incremental Operating Costs Cancelled as of January 23, 19,595,436.45 2013 TOTAL AMOUNT 60,000,000.00"