OFFICAL BOCUMENTS The World Bank 18 treet N.W. (202) 473-1000 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Washington, D.C. 20433 Cable Address: INTBAFRAD INTERNATIONAL DEVELOPMENT ASSOCIATION U.S.A. Cable Address: INDEVAS February 19, 2013 Hon. Don Polye Minister of Treasury Ministry of Treasury P.O. Box 542 Waigani N.C.D. PAPUA NEW GUINEA Papua New Guinea: Education for All - Fast Track Initiative (EFA-FTI) Catalytic Trust Fund No. TF098729 Reading Education (READ PNG) Project Amendment to the Grant Agreement Honorable Minister, We refer to the Grant Agreement (the "Agreement") for the Papua New Guinea: Education for All - Fast Track Initiative (EFA-FTI) Catalytic Trust Fund Grant - Reading Education (READ PNG) Project (the "Project") dated March 3, 2011, between the Independent State of Papua New Guinea (the "Recipient") and the International Bank for Reconstruction and Development ("IBRD") and the International Development Association (the "Association") (collectively, the "World Bank"). We refer also to your letter dated August 29, 2012 requesting the World Bank to make changes to the Agreement so as to reflect changes to the administration of the Recipient's revenue laws. We are pleased to inform you that the World Bank concurs with your request. Accordingly, the paragraph under the withdrawal table in Section 3.01 of the Annex is amended to read as follows: "Pursuant to the Loans and Assistance (International Agencies) Act, Chapter No. 132 of the Revised Laws of Papua New Guinea (the "Act"), and by this Agreement with the World Bank, the Recipient confirms that any persons, income, matter or thing that is directly engaged in and directly forms part of this Agreement with the World Bank, is exempt from any tax, duty, or imposition under the revenue laws administered by the Commissioner General of the Internal Revenue Commission and the Commissioner of the Customs Department. If any change is made to the Act that will affect this exemption from tax, duty or imposition under the project, the Recipient shall notify the World Bank in writing." Unless the context otherwise requires and except where otherwise defined in this amendment letter, all capitalized terms contained herein shall have the meanings assigned to them in the Agreement. All terms of the Agreement not hereby amended shall remain in full force and effect. RCA 248423. L) WUI 64145 L3 FAX (202) 477-6391 Hon. Don Polye -2- February 19, 2013 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 amendment letter, and returning it to the World Bank. This amendment letter shall become effective on the date of the Recipient's countersignature. Sincerely, Franz R. Drees-Gross Country Director Timor-Leste, Papua New Guinea and Pacific Islands East Asia and Pacific Region AGREED: INDEPEND A F PAPUA NEW GUINEA Autho ri ad Rp rsj tv NameA4 Title_ __ Date_ _ _ _ Cc: Hon. Don Polye -3- February 19, 2013 Cc: Hon. Charles Abel, Minister for National Planning and District Development Hon. James Marape, Minister for Finance Dr. Peter Ga'allah Kora, Secretary for Department of National Planning and Monitoring Mr. Simon Tosali, Secretary for Treasury Mr. Stephen Gibson, Secretary for Finance Mr. Manasupe Zurenuoc, Chief Secretary to Government Mr. Reichert Thanda, Acting First Assistant Secretary, Foreign Aid Division Mrs. Linda Taman-Ako, Acting Assistant Secretary, Multilateral Branch Mr. Martin Pomat, Senior Aid Coordinator, World Bank Desk Mr. John Uware, FAS, Financial Management Division, Department of Treasury Mr. Damien Horiambe, Assistant Secretary, Loans Execution Division, FMD, Ms. Roselyn Irum, Acting Assistant Secretary, Accounting and Settlements, FMD Ms. Lia Kenehe, Senior Financial Analyst- World Bank, FMD Cleared with and bcc: Marjorie Mpundu, Country Lawyer, LEGES;