. OFFICIAL 7Z DOCIUMENTS Department Qsm for International UKaid Development from the BH e 7 March 2013 Ms. Susan McAdams Director Multilateral Trusteeship and Innovative Financing Concessional Finance and Global Partnerships World Bank 1818 H Street N.W. Washington, D.C. 20433 United States Transfer of Funds from the Multi-Donor Trust Fund TF054545 to the Debt Service Trust Fund for the Palestinian Authority (TFNo. 072025) Dear Ms. McAdams, We refer to the Arrangement between the Government of the United Kingdom of Great Britain and Northern Ireland, through its Department for International Development ("DFID"), and the International Bank for Reconstruction and Development and the International Development Association (collectively, the "Bank") concerning the Multi-Donor Trust Fund for the Public Financial Management Reform Program in Cambodia (TF No.054545), dated May 12, 2005 (the "Administration Agreement"). By this letter, and further to our communication dated January 22, 2013, we kindly request the Bank to transfer an amount of One Million Four Hundred Thousand United States Dollars (USD 1,400,000) from the TF054545 to the Debt Service Trust Fund for the Palestinian Authority (TF No. 072025) (the "Debt Service Trust Fund"), to be administered by IDA, in order to provide debt relief to the Palestinian Authority on credits financed by the Trust Fund for Gaza and West Bank ("TFGWB", established by Resolution No. 93-11 and IDA No. 93-7 as amended) and administered by IDA. The Donor understands that other donors are also expected to contribute to the Debt Service Trust Fund. We agree that from the date of this Transfer Instruction until February 29 2016, IDA, as Administrator of the Debt Service Trust Fund, shall use funds transferred to the Debt Service Trust Fund and any investment income earned on such funds to repay any amounts due on any TFGWB credits outstanding as of the date of this letter in such manner as IDA may, in its discretion, determine. We also kindly request that any remaining balance of DFID's contribution funds in TF054545, in addition to the funds transferred to the Debt Service Trust Fund, be returned to DFID in accordance with the provisions stipulated in the Administration Agreement. Such transfer shall be made promptly following the acknowledgment of the receipt of this letter. Please acknowledge receipt of this letter by signing, dating, and returning to us the enclosed copy of this letter. Sincerely, DEPARTMENT FOR INTERNATIONAL DEVELOPMENT UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND Jim Carpy Deputy Head of DFID Vietnam ACKNOWLEDGED: INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION Date: 3_ 1__ __Z __ Susan McAdams Director Multilateral Trusteeship and Innovative Financing