THE WORLD BAN
IBRD*IDAI w  f   tCIAL
MR. ULRICH ZACHAU
Country Director, South East Asia
(Brunei, Cambodia, Lao PDR, Malaysia, Myanmar, Thailand)  DOCUMNT
East Asia and Pacific Region
February 20, 2017
H.E. U Kyaw Win
Union Minister
Ministry of Planning and Finance
Building No. 1
Nay Pyi Taw, Myanmar
Excellency:
Re: Essential Health Services Access Project
(IDA Credit No. 5542-MM)
Amendment to the Financing Agreement
We refer to the Financing Agreement dated February 5, 2015, as amended to date,
between the Republic of the Union of Myanmar (the Recipient) and the International
Development Association (the Association) for the Essential Health Services Access
Project.
Further to our consultation and agreement to remove the requirement for procuring
a firm as the independent Disbursement Linked Indicators (DLI) verification agent and to
allow the partial advancing of DLI funds prior to their verification, as reflected in our last
Aide-Memoire and Management Letter dated December 22, 2016, the Association hereby
proposes to amend the above-mentioned Financing Agreement as follows:
1.    Section I.E.1 of Schedule 2 to the Financing Agreement shall be amended to read
as follows:
"1.   The Recipient shall appoint or designate an independent verification agent,
with terms of reference and qualifications satisfactory to the Association,
for the purpose of carrying out independent verifications of the status of
achievement of all DLI Targets in accordance with the verification protocol
and procedures set out in the Project Operations Manual."
2.    Section IV.B.3 of Schedule 2 to the Financing Agreement shall be amended to read
as follows:
"3.   Notwithstanding the provisions of Part B.1 (b) of this Section, the Recipient
may withdraw as an advance under Category (1):
(a)   a first advance in an amount equivalent to 50% of the total DLI
Values against the DLI Targets which are set to be achieved during
a given Fiscal Year; and


H.E. U Kyaw Win                     -2-                 ebruary 20, 2017
(b)   a further advance in an amount equivalent to the remaining 50% of
the total DLI Values against the DLI Targets which are set to be
achieved during such Fiscal Year; provided however that if any of
the DLI Targets for such Fiscal Year, in the opinion of the
Association, are not achieved or are only partially achieved by the
relevant DLI Target Achievement Date, then: (a) the amount of the
further advance for any subsequent Fiscal Year shall be reduced by
an amount corresponding to the amount of the DLI Value(s) (or
portion of such amount as applicable) of the unachieved or partially
unachieved DLI Target(s); or (b) in the case any DLI Target(s)
remaining unachieved or partially unachieved after the Closing
Date, the Recipient shall refund to the Association the amount of all
advances made under this paragraph 3 (a) and (b) corresponding to
the amount of the DLI Value(s) (or portion of such amount as
applicable) of the unachieved or partially unachieved DLI Target(s),
promptly upon notice thereof by the Association. Except as
otherwise agreed with the Recipient, the Association shall cancel the
amount so refunded."
Except as specifically amended herein, all other provisions in the Financing
Agreement shall remain unchanged and in full force and effect.
Please confirm your agreement with the amendments set out above by
countersigning the enclosed copy of this letter. Upon receipt by the Association of the
countersigned copy of this letter, the amendments shall become effective as of the date of
countersignature.
Very truly yours,
INTERNATIONAL DEVELOPMENT ASSOCIATION
Ulrich Zachau
AGREED:
THE REPUBLIC OF THE UNION OF MYANMAR
By:
Authorized Representative
Name:
Title:         (Si Si Pyone)
Date:      Deputy Director General
Treasury DepDrteent
Ministry of Planning and Finance