OFFICIAL DOCUMENTS The World Bank Nepal Country Office INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Lal Durbar Telex: 2228 INDEVA NP INTERNATIONAL DEVELOPMENT ASSOCIATION Yak & Yeti Hotel Complex Telephone: 4226792, 4439571 Kathmandu, Nepal Cable Address: INTBAFRAD KATHMANDU Postal Address: P.O. Box 798 December 20, 2013 Mr. Shanta Raj Subedi Secretary Ministry of Finance Singha Durbar, Kathmandu Nepal Dear Mr. Subedi: NEPAL: Zoonoses Control Project (TF012273) Amendment to the European Commission Avian And Human Influenza Trust Fund Grant Agreement We refer to the Grant Agreement for the Zoonoses Control Project between Nepal (the "Recipient") and the International Bank for Reconstruction and Development and the International Development Association (collectively the "World Bank"), acting as administrator of the European Commission Avian and Human Influenza Trust Fund, dated July 5, 2012 (the "Grant Agreement"). We also refer to you letter dated September 4, 2013 requesting the World Bank to amend the Grant Agreement to include an additional activity to be financed by the Grant, and reallocate funds between Categories to cover the expenses related to said activity. We are pleased to inform you that the World Bank concurs with your request, and hereby amends the Grant Agreement as set out below in this letter of amendment (the "Letter of Amendment"). I. In Schedule 1 of the Grant Agreement,, a new activity is added as follows: "Part F. Compensations to Eligible Poultry Farmers Provide cash and in-kind compensations for culled birds to affected poultry farmers to contain the spread of priority zoonotic diseases, namely Avian Flu, Leptospirosis, Brucellosis, Taxoplasmosis, Cysticercosis, and Hydatidosis." 2. In Schedule 2, Section I., sub-paragraph A.3 is amended to read as follows: (a) The Recipient, through DoLS, shall: (i) implement the Project in accordance with the provisions of the Operations Manual; and (ii) not assign, amend, abrogate, or waive, or permit to be assigned, amended, abrogated, or waived, said Manual, or any provision thereof so as to affect materially and adversely, in the opinion of the World Bank, implementation of the Project. (b) For the purposes of Part F of the Project, the Recipient, through DoLS, shall make the cash compensations available to eligible poultry farmers in accordance with the Operations Manual. Mr. Shanta Raj Subedi 2 December 20, 2013 3. The table in Section IV of Schedule 2 to the Grant Agreement is amended as indicated in the Attachment to this Letter of Amendment. 4. In the Appendix to the Grant Agreement, the definition of "Operations Manual" is amended to read as follows: "9. "Operations Manual" means the Operations Manual for the Project dated April 2012 and approved by the Recipient and the World Bank, setting out, inter alia, details of all procedures, guidelines, timetables and criteria required for the carrying out of the Project, including the selection and eligibility criteria of poultry farmers and the amount and transfer mechanisms of cash compensations to said farmers, and the procurement, financial, administrative, operational, and monitoring, evaluation and reporting arrangements, as the same may be amended from time to time with the agreement of the World Bank." Unless the context requires otherwise, the capitalized terms used in this Letter of Amendment have the meanings ascribed to them in the Standard Conditions or in the Grant Agreement. All other terms and conditions of the Grant Agreement shall remain in full force and effect. Please confirm your agreement with the foregoing by signing two originals of this Letter of Amendment and returning one fully executed original to the World Bank. Please retain the other original for your records. This Letter of Amendment shall enter into effect as of April 4, 2013, upon countersignature of this Letter of Amendment by the authorized representative of the Recipient and receipt of the said letter by the World Bank. Sincerely, Johannes Zutt Country Director AGREED AND CONFIRMED: NEPAL By Authorized Representative Name: Mackv.. Ru;maoy- /V\o-a- " Title: 01A Eec-reyrlq Date: 90 c, e&P ber 2,ot2 Mr. Shanta Raj Subedi 3 December 20, 2013 Attachment Percentage of Amount of the Expenditures Grant Allocated to be Financed 'Category (expressed in (exclusive of Taxes)* USD) 1. Goods 4,238,000 100% 2. Works 769,000 100% 3. Consultants' services 2,093,000 100% 4. Training 1,217,000 100% 5. Operating Costs 797,000 100% 6. Cash Compensations 886,000 100% under Part F of the Project TOTAL AMOUNT 10,000,000 *Note: The Grant will not finance local taxes, duties and anti-viral drugs. For the purposes of this paragraph, the term "Cash Compensations" means cash transfers to eligible poultry farmers, whereby eligibility and amount of cash transfers to said farmers are determined in accordance with the Operations Manual."