OFFICIAL DOCUMENTS OFFICIAL THE WORLD BANK DOCUMENTS 3RD.I*A WORLDBANKGROUP FARIS H. HADAD-ZERVOS Country Director for Maldives, Nepal, and Sri Lanka South Asia Region August 18, 2021 Mr. Madhu Kumar Marasini Secretary Ministry of Finance Government of Nepal Singha Durbar, Kathmandu. Dear Mr. Marasini: Re: Credit No. 5706-NP/Credit No. 6164-NP/Credit No. 6530-NP (Earthquake Housing Reconstruction Project) Amendment to Financing Agreements We refer to the following Financing Agreements between Nepal ("Recipient") and the International Development Association ("Association"): (a) Amended and Restated Financing Agreement ("Original Financing Agreement") dated May 22, 2019 (Credit No. 5706-NP), (b) Financing Agreement ("Additional Financing Agreement") dated January 21, 2018, as amended (Credit No. 6164-NP), and (c) Financing Agreement ("Second Additional Financing Agreement") dated February 6, 2020, as amended (Credit 6530-NP), all for the above-referenced Project ("Project"). We also refer to letter from the Ministry of Finance dated May 19, 2021, requesting a restructuring of the Project, which requires certain amendments to the Agreements. We are pleased to inform you that, after due consideration, the Association accedes to the request and hereby proposes to amend the Agreements as follows: Original Financing Agreement (Credit No. 5706-NP): 1. Part 1.1 of Schedule 1 to the Original Financing Agreement shall be deleted in its entirety and replaced as follows: "1.1 Provision of Housing Grants to approximately 66,336 Participating Household Beneficiaries in Targeted Areas for the reconstruction of multi-hazard resilient core housing units." 2. Part 2 of Schedule I to the Original Financing Agreement is deleted in its entirety and replaced as follows: "Part 2: Disaster Risk Management Systems a) Provision of training to, among others, engineers, and masons on multi-hazard resistant constructions. Mr. Madhu Kumar Marasini -2- August 18, 2021 b) Provision of training and technical assistance on topics related to enhancing resilience in Nepal. c) Provision of technical guidance for the implementation, quality assurance, analysis of survey data, and development of a disaster preparedness plan. d) Provision of technical assistance and training to Local Governments and their elected officials inter alia, on: (i) multi-hazard resistant construction, (ii) Nepal building codes; (iii) NRA's procedural requirements, and (iv) NDRRMA's procedural requirements. e) Development of a mechanism to transfer records, including reconstruction-related records to Local Governments and District Coordination Committees (DCCs). f) Development of a road map for transfer of necessary records in soft and hard form to concerned Provincial Governments, Local Governments and DCCs. g) Integration of the Local Governments in disaster risk management and transfer of records be to build capacities for disaster risk management and to strengthen the federal structure. h) Carrying out structural integrity assessment of social infrastructure." 3. The following new definitions are incorporated in alphabetical order in the Appendix, and the terms are renumbered in accordance with such insertions: 'District Coordination Committee' or its acronym 'DCC' means the Recipient's local level entity responsible for oversight and coordination of all activities within the district municipalities, and 'District Coordination Committees' or acronym 'DCCs' means the plural thereof. 'National Disaster Risk Reduction and Management Authority' or its acronym 'NDRRMA" means the authority established in November 16, 2019, through the Act made to Amend and Consolidate the Laws Relating to Disaster Risk Reduction and Management (Act No. 45, dated October 22, 2017)." Additional Financing Agreement (Credit 6164-NP) 4. Schedule I to the First Additional Financing Agreement shall be deleted in its entirety and replaced as follows: "Project Description The objective of the Project is to restore affected houses with multi-hazard resistant core housing units in Targeted Areas and to enhance the Recipient's ability to improve long- term disaster resilience. The Project consists of the Original Project and the following additional activity: Provision of Housing Grants to approximately 124,385 Participating Household Beneficiaries in Targeted Areas for the reconstruction of multi-hazard resilient core housing units (in addition to the 66,336 Participating Household Beneficiaries covered by the Original Project)." Mr. Madhu Kumar Marasini -3- August 18, 2021 5. The withdrawal table in Section III.A of Schedule 2 to the Additional Financing Agreement is deleted in its entirety and replaced as set forth in Attachment A to this letter. Second Additional Financinl Agreement (Credit No. 6530-NP) 6. Schedule I to the Second Additional Financing Agreement shall be deleted in its entirety and replaced as follows: "Project Description The objective of the Project is to restore affected houses with multi-hazard resistant core housing units in Targeted Areas and to enhance the Recipient's ability to improve long- term disaster resilience. The Project consists of the Original Project (with the modification that the terms "NDRRMA and" shall be added before the term "NRA" in the first sentence of Part 3 of Schedule I to the Original Financing Agreement) and the following additional activity: Provision of Housing Grants to approximately 123,396 Participating Household Beneficiaries in Targeted Areas for the reconstruction of multi-hazard resilient core housing units. (in addition to the 66,336 Participating Household Beneficiaries covered by the Original Project and the 124,385 Participating Household Beneficiaries covered by the First Additional Financing Project)." 7. Section I.A. of Schedule 2 to the Second Additional Financing Agreement is deleted in its entirety and replaced as follows: "A. Section I.A, I.B, I.D, I.E and L.G (Implementation Arrangements) of Schedule 2 to the Original Financing Agreement and the Definitions in the Appendix to the Original Financing Agreement, as amended (other than the reference to the General Conditions in Section 1.D.(b)(v), which shall be renumbered as "Section 8.02, 8.03 or 8.06" and the terms "Consultants Guidelines", "Procurement Guidelines" and "Public Procurement Act"), are hereby incorporated by reference and shall apply, mutatis mutandis, to this Agreement, and the Recipient undertakes to comply with the provisions thereof to the same extent as it such provisions had been set out in full in this Agreement, with the following modifications: NDRRMA shall be included as an additional Project Implementing Entity by adding the tenrs "NDRRMA and" before the term "NRA" in the first sentence of Section I.A.3 of Schedule 2 to the Original Financing Agreement and Section I.B.1 of Schedule 2 to the Original Financing Agreement." 8. The withdrawal table in Section III.A. of Schedule 2 to the Second Additional Financing Agreement is deleted in its entirety and replaced as set forth in Attachment B to this letter. Except as specifically amended in this letter of amendment, all other provisions of the Financing Agreement shall remain unchanged and in full force and effect. The Association will disclose this letter of amendment and related information in accordance with the World Bank's Policy on Access to Information. By entering into this letter of amendment, the Recipient consents to such disclosure. Mr. Madhu Kumar Marasini -4- August 18, 2021 Please confirm your agreement to the foregoing on behalf of the Recipient by countersigning and dating the corresponding form of confirmation set forth below and returning one fully countersigned original of this letter of amendment to us. The above amendment to the Agreement shall become effective as of the date of countersignature upon receipt by the Association of a copy of this letter of amendment duly countersigned by the authorized representative of the Recipient. Sincerely, INTERNATIONAL DEVELOPMENT ASSOCIATION Faris H. Hadad-Zervos Country Director for Maldives, Nepal, and Sri Lanka AGREED NEPAL e By: _ _ _ Name: Dhani Ram Sharma Title: Joint Secretary Date: Mr. Madhu Kumar Marasini -5- August 18, 2021 Attachment A Credit 6164-NP Category Amount of the Credit Percentage of Allocated (expressed in Expenditures to be SDR) Financed (inclusive of Taxes) (1) Goods, works, non-consulting services, 8,723,000 100% consultants' services, Incremental Operating Costs, and Workshops and Training (2) Housing Grants for First Tranche, 104,304,000 100% of amounts disbursed Second Tranche and Third Tranche (3) Emergency Expenditures for the CER 0 Component (4) Housing Grants for Second Tranche 100,573,000 83.33% of the amounts and Third Tranche disbursed TOTAL AMOUNT 213,600,000 Attachment B Credit No. 6530-NP Category Amount of the Credit Percentage of Allocated (expressed in Expenditures to be SDR) Financed (inclusive of Taxes) (1) Goods, works, non-consulting services, 6,000,000 100% consulting services, Workshops and Training under Parts 2 (a), (d), (e), (f) and (g) and Incremental Operating Costs under Part 3 of the Project (2) Housing Grants for Second Tranche 91,000,000 83.33% of the amounts and Third Tranche disbursed (3) Emergency Expenditures for the CER 0 Component (4) Housing Grants for Third Tranche 38,000,000 33.33% of the amounts disbursed Mr. Madhu Kumar Marasini -6- August 18, 2021 Category Amount of the Credit Percentage of Allocated (expressed in Expenditures to be SDR) Financed (inclusive of Taxes) (5) Goods, works, non-consulting services, 10,000,000 100% consulting services, Workshops and Training under Parts 2 (b), (c) and (h) and Incremental Operating Costs under Part 3 of the Project TOTAL AMOUNT 145,000,000