OFFICIAL 0-?-, DOCUMENTS Ct 3 The World Bank E-32, Agargaon, Sher-e-Bangla Nagar Tel.: (880-2) 5566-7777 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT G.P.O. Box 97, Dhaka 1207 Fax.: (880-2) 5566-7778 INTERNATIONAL DEVELOPMENT ASSOCIATION Bangladesh www.worldbank.org.bd December 23, 2015 Senior Secretary Mohammad Mejbahuddin Economic Relations Division Ministry of Finance Block 8, Room No. 3 Sher-e Bangla Nagar Dhaka, Bangladesh Dear Senior Secretary Mejbahuddin: Bangladesh: Emergency 2007 Cyclone Recovery and Restoration Project (IDA Credits No. 4819-BD and No. 5342-BD) - Amendment to the LegalAgreements We refer to the following agreements ("Agreements") for the above-mentioned Project between the People's Republic of Bangladesh ("Recipient") and the International Development Association ("Association): (i) the Financing Agreement for the Additional Credit No. 4819 dated November 11, 2010, as amended; and (ii) the Financing Agreement for the Additional Credit No. 5342 dated June 9, 2014. We also refer to the letter dated December 14, 2015 from the Economic Relations Division, Ministry of Finance, requesting us to reallocate the proceeds of both credits. Following agreements reached between the Recipient and the Association, we propose to amend the Agreements as follows: I. Financing Agreement for the Additional Credit No. 4819 1. The following terms of the table in paragraph 2 of Section IV.A of Schedule 2 shall be amended as follows: Amount of the Percentage of Expenditures to be Credit Allocated Financed Category (expressed in SDR) (inclusive of Taxes) (1) Goods, works, 7,842,000 100% consultants' services and Incremental Operating Costs under Part A of the Project (through FAO) (2) Goods, works, consultants' services and Incremental Operating Costs, including training: (a) under Part B and D.5 33,219,000 100% (LGED) 3,466,000 100% (b) under Part C and D.4 (BWDB) 2,738,000 100% (c) under Part D.1, D.2 and D.3 (DMB) 1,941,000 100% (d) under Parts E and F. 1 (3) Goods, works, NIL NIL consultants' services, Incremental Operating Costs, including training for emergency support under Part F.2 of the Project (4) Unallocated 194,000 100% TOTAL AMOUNT 49,400,000 2. The following terms of the table in paragraph 2 of Section IV.A of Schedule 2 shall be amended as follows: "Incremental Operating Costs" means the reasonable costs required for the day-to-day coordination, administration and supervision of Project activities, including leasing and/or routine repair and maintenance of vehicles, equipment, facilities and office premises, fuel, office supplies, utilities, consumables, communication expenses, translation, printing, photocopying and postal expenses, bank charges, advertising expenses, insurance, costs of clearing, forwarding, inspection, survey and transportation of goods, Project-related meeting expenses, and Project-related travel, providing that payment is made using the Bank system; excluding salaries, travel and daily allowances and honorarium of officials of the Recipient's civil service and/or other honorarium of any other nature." "Training" means the reasonable costs required for the participation of personnel involved in training activities, workshops and study tours under the Project which have been approved by the Association in writing on annual basis, including: (a) travel, hotel, and subsistence costs for training, workshop and study tour participants provided that such allowances are paid directly to the eligible recipient using the banking system; (b) costs associated with rental of training and workshop facilities, preparation and reproduction of training and workshop materials, costs of academic degree studies, and other costs directly related to training course, workshop or study tour preparation and implementation, but excluding salaries of consultants and honorarium of any other nature." II. Financing Agreement for the Additional Credit No. 5342 3. The following terms of the table in paragraph 2 of Section IV.A of Schedule 2 shall be amended as follows: Category Amount of the Credit Allocated Percentage of Expenditures to be (expressed in SDR) Financed (inclusive of Taxes) (1) Goods, works, non- 46,811,000 100% consulting services, consultants' services Training, Incremental Operating Costs, Resettlement Compensation required under Part B of the Project (2) Goods, works, non- 43,476,000 100% consulting services and consultants' services, Training, Incremental Operating Costs, Resettlement Compensation required under Parts C and D4 of the Project (3) Goods, works, non- 700,000 100% consulting services and consultants' services, Training, Incremental Operating Costs, Resettlement Compensation required under Parts E and F of the Project (4) Emergency Expenditures NIL NIL under Part F.2 of the Project (5) Unallocated 113,000 NIL TOTAL AMOUNT 91,100,000 4. The following definitions set forth in Section I of the Appendix shall be amended as follows: "Incremental Operating Costs" means the reasonable costs required for the day-to-day coordination, administration and supervision of Project activities, including leasing and/or routine repair and maintenance of vehicles, equipment, facilities and office premises, fuel, office supplies, utilities, consumables, communication expenses, translation, printing, photocopying and postal expenses, bank charges, advertising expenses, insurance, costs of clearing, forwarding, inspection, survey and transportation of goods, Project-related meeting expenses, , and Project-related travel, providing that payment is made using the Bank system; excluding salaries, travel and daily allowances and honorarium of officials of the Recipient's civil service and/or other honorarium of any other nature." "Training" means the reasonable costs required for the participation of personnel involved in training activities, workshops and study tours under the Project which have been approved by the Association in writing on annual basis, including: (a) travel, hotel, and subsistence costs for training, workshop and study tour participants provided that such allowances are paid directly to the eligible recipient using the banking system; (b) costs associated with rental of training and workshop facilities, preparation and reproduction of training and workshop materials, costs of academic degree studies, and other costs directly related to training course, workshop or study tour preparation and implementation, but excluding salaries of consultants and honorarium of any other nature." Except as specifically amended by this Amendment Letter, all other provisions ofthe Agreements shall remain unchanged and in full force and effect. The Association will disclose this Amendment Letter and related information in accordance with the Association's Policy on Access to Information. By entering into this Amendment Letter, the Recipient consents to disclosure of this Amendment Letter and related information. Please confirm your acceptance to the foregoing by signing and dating the two originals, retaining one original for your records and returning the other original to the Association. Upon receipt by the Association of the original Amendment Letter countersigned by you, this Amendment Letter will become effective as of the date of this Amendment Letter. Very truly yours, INTERNATIONAL DEVELOPMENT ASSOCIATION By Iffath A. Sharif Acting Country Director AGREED: PEOPLE'S REPUBLIC 0 ANGLADESH By: Auth l presentative Name: Mohammad Melbahuddin St.I. Swealary Economic Relationo Title:MIy of Finance cc: Mr. Mohammad Shafiqul Azam, Secretary, Planning Division, Ministry of Planning Mr. Abdul Malek, Secretary, Local Government Division, Ministry of Local Government, Rural Development and Cooperatives Dr. Zafar Ahmed Khan, Secretary, Ministry of Water Resources Mr. Md. Shah Kamal, Secretary, Ministry of Disaster Management and Relief Mr. S.M. Golam Faruk, Member (Physical Infrastructure), Planning Commission Mr. Kazi Shofiqul Azam, Additional Secretary, Economic Relations Division, Ministry of Finance Mr. Shyma Prasad Adhikari, Chief Engineer, Local Government Engineering Department (LGED) Mr. Md. Ismail Hossain, Director General, Bangladesh Water Development Board (BWDB) Mr. Md. Reaz Ahmed, Director General, Department of Disaster Management (DDM) Mr. Md. Nazrul Islam, Project Director, ECRRP-PCMU Mr. Abdur Rashid Khan, Project Director, ECRRP-LGED Mr. Md. Habibur Rahman, Project Director, ECRRP-BWDB Mr. M. Khalid Mahmood, Project Director, ECRRP-DDM