OFFICIAL DOCUMENTS THE WORLD BANK IBRD* IDA I WORLD BANK GROUP April 27, 2022 Dr. MacDonald M. Mwale Secretary of the Treasury Ministry of Finance Capital City Lilongwe 3 Malawi RE: Republic of Malawi -Additional Financing for the Southern Africa Trade and Transport Facilitation (Phase 2) Project (Credit No. 6974-MW and Grant No. D895-MW) Reinstatement of the Financing Azreement and Extension of the Effectiveness Deadline Honorable Secretary, We refer to the Financing Agreement, dated December 15, 2021, between the Republic of Malawi (the "Recipient") and the International Development Association (the "Association"), for the above-referenced Project (the "Financing Agreement"). The defined terms used in this letter and not defined herein shall have the meanings given to them in the Financing Agreement. According to Section 5.03 of the Financing Agreement, the Effectiveness Deadline is ninety days after the Signature Date. Since the Financing Agreement did not become effective on time, it lapsed. We are glad to inform you that after considering the reasons for the delay in meeting the Effectiveness Deadline, the Association agrees to: 1. Reinstate the Financing Agreement as of its original Signature Date; and 2. Retroactively extend the period within which the Financing Agreement must become effective and has established July 15, 2022, as the later date for purpose of Section 10.03 of the General Conditions. This extension of the Effectiveness Deadline is being provided to ensure that proper due diligence by the Association can be carried out on the evidence provided by the Recipient in relation to meeting the Additional Condition of Effectiveness set forth in Article V; 5.01 (b), related to the recruitments to the Project Implementation Team of one (1) manager and four (4) environmental and social safeguards specialists, all under terms of reference and with qualifications and experience acceptable to the Association. THE WORLD BANK -2- Please indicate your agreement to the foregoing, on behalf of the Recipient, by countersigning and dating the forn of confirmation on the two original copies of this letter and returning one original, as countersigned, to us. Upon receipt by the Association of the countersigned copy of this letter, this letter shall become effective as of the date of its countersignature. Sincerely, Boutheina Guermazi Director of Regional Integration Africa and Middle East and North Africa CONFIRMED AND AGREED: REPUBLIC OF MALAWI By: Name: Title: IV\ Tflj Date: -3- Cc: Mr. Hastings Chiudzu Principal Secretary Ministry of Transport and Public Works Mr. Nations Msowoya Acting Director of Debt and Aid Management Ministry of Finance Eng. Francis Dimu Acting Chief Executive Officer Roads Authority Mr. Stewart Malata Chief Executive Officer Road Fund Administration Mr. Taufila Nyamadzabo Executive Director for Malawi The World Bank Group