The World Bank 1 S (202) 473-1000 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Washington, D.C. 20433 Cable Address: INTBAFRAD INTERNATIONAL DEVELOPMENT ASSOCIATION U.S.A. Cable Address: INDEVAS Date: Ms. Christine Lynch Manager, Bretton Woods Unit International Financial Institutions Division Multilateral and Global Programs Branch Foreign Affairs, Trade and Development Canada 200 Promenade du Portage, Gatineau, QC CANADA KIA 0G4 Amendment to the Trust Fund Administration Arrangement between the Government of Canada, acting through the Canadian International Development Agency and the International Bank for Reconstruction and Development and the International Development Association concerning the Public-Private Infrastructure Advisory Facility (PPJA F) Multi Donor Trust Fund II (TF 053980) Dear Ms. Lynch: I. We refer to the Administration Arrangement between the Government of Canada, acting through the Canadian Development Agency (the "Donor") and the International Bank for Reconstruction and Development ("IBRD") and the International Development Association ("IDA") (collectively, the "Bank"), concerning the Public-Private Infrastructure Advisory Facility (PPIAF) Trust Fund II (TF 053980) (the "Trust Fund") dated March 22, 2005, as amended (the "Administration Arrangement"). 2. Pursuant to the recent discussions between the Donor and the Bank, the Bank proposes to amend the Administration Arrangement to reduce the administrative cost recovery percentage applicable to Contributions made by the Donor after the effective date of this amendment from two percent (2%) to one percent (1%). Accordingly, Section 5 of Annex 2 to the Administration Arrangement is hereby amended to read as follows: "5. Administrative Cost Recovery In order to assist in the defrayment of the costs of administration and other expenses incurred by the Bank under this Arrangement, the Bank may, following deposit of Contribution funds, deduct from such funds and retain for the Bank's own account an amount equal to one percent (1%) of the Contributions." 3. For the avoidance of doubt, the reduced percentage mentioned in the preceding paragraph will only apply to future contributions made by the Donor, and will not apply to pending installments mentioned in the Administration Arrangement or any other supplemental contribution amendments which were signed before the effective date of this amendment, with the exception of any recently signed supplemental contribution amendments which explicitly provide otherwise. -2- 4. All other terms of the Administration Arrangement will remain the same. 5. The Bank will disclose this Amendment and related information on this Trust Fund in accordance with the World Bank's policy on Access to Information. By entering into this Amendment, the Donor consents to disclosure of this Amendment and related information on this Trust Fund. 6. We propose that this letter will constitute an amendment to the Administration Arrangement between the Bank and the Donor. Please confirm your acceptance to the foregoing, on behalf of the Donor, by signing and dating the two originals, retaining one original for your records and returning the other original to the Bank. Upon receipt by the Bank of the original amendment countersigned by you, this amendment will become effective as of the date of the countersignature. It is understood that this amendment is not an international treaty. It is an administrative arrangement between the Bank and the Donor. Sincerely, INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION Jose Luis Irigoyen Director Transport, Water, Information and Communication Technologies Sustainable Development Network CONFIRMED AND AGREED: THE GOVERNMENT OF CANADA, ACTING THROUGH THE CANADIAN INTERNATIONAL DEVELOPMENT AGENCY (CIDA) By: Date: Christine Lynch Manager, Bretton Woods Unit International Financial Institutions Division Multilateral and Global Programs Branch Foreign Affairs, Trade and Development Canada