MARIANNE FAY
Director
Bolivia, Chile, Ecuador and Peru



                                                                                         27-May-2021




          Msc. Andrea Scacco Carrasco
          Mayor of Ibarra
          Municipality of Ibarra
          Calle García Moreno 6-31
          Ibarra, Ecuador

                     Subject:        Republic of Ecuador: Loan No. 8579-EC
                                     Transport Infrastructure Improvement Project
                                     Second Amendment to the Loan Agreement

          Excellency:

                   We refer to the Loan Agreement between the Municipality of Ibarra (“Borrower”) and the
          International Bank for Reconstruction and Development (“Bank”) for the Transport Infrastructure
          Improvement Project (“Project”) dated December 22, 2016 (“Loan Agreement”) as amended. The
          capitalized terms used in this letter (“Amendment Letter”) and not defined herein have the meaning
          ascribed to them in the Loan Agreement.

                 We also refer to letter from the Borrower dated March 30, 2021 (ALC-UGP-MITCI-2021-
          109-O) requesting a slight modification in scope of Part 1(b) of the Project, certain reallocations
          between expenditures Categories, as well as an extension of the Closing Date to June 30, 2022.

                 I am pleased to inform you that after careful consideration of the modifications requested
          by the Borrower, the Bank has acceded to the said request and proposes to amend the Loan
          Agreement as follows (changes are shown in italics and bold):

          1.       The description of Part 1 activity in Schedule 1 to the Loan Agreement is hereby amended
          to read as follows:

                     “Part 1: Improve mobility in the city

                     Provision of support for infrastructure investments in the City of Ibarra, including: (i) the
                     construction of a four lane Ring Boulevard in the City of Ibarra, comprising of: (a) the
                     Northern Segment (approximately 9.5 km), and (b) the Southern Segment (approximately
                     12.0 km); (ii) the redesign (as needed) and supervision of any associated work; and (iii)
                     evaluation and preparation of investments to improve the connection between the
                     northern part of Ring Boulevard and the center of the City of Ibarra to the Yahuarcocha
                     Lagoon area.”
                                                 2


2.    The table set forth under Section IV.A.2 of Schedule 2 to the Loan Agreement is hereby
amended to read as follows:

                         Category                Amount of the Loan           Percentage of
                                                      Allocated            Expenditures to be
                                                 (expressed in USD)             financed
                                                                           (exclusive of VAT)
         (1) Goods, works, consultants’
             services and non-consulting
                                                      22,383,476.76                100%
             services, under Part 1.1(i)(a) of
             the Project
         (2) Goods, works, consultants’
             services and non-consulting
                                                      22,788,704.76                60%
             services, under Part 1.1(i)(b) of
             the Project
         (3) Goods, works, consultants’
             services and non-consulting
                                                       3,027,111.14                100%
             services under Part 2 of the
             Project
         (4) Goods, consultants’ services,
             Incremental Operating Costs and
                                                       3,120,142.34                100%
             Training under Parts 3 and 4 of
             the Project
         (5) Land Compensation Payments                1,180,565.00                100%
         TOTAL AMOUNT                                 52,500,000.00


3.      Section IV.B.2 of Schedule 2 to the Loan Agreement is hereby amended to read as follows:

        “2.     The Closing Date is June 30, 2022.”

         In light of the above changes to the Loan Agreement, the Borrower and the Bank have also
mutually agreed that relevant adjustments to the Project monitoring indicators, disbursement and
cost estimates and implementation schedule will be reflected accordingly in the Project Operational
Manual, pursuant to Section I.A of Schedule 2 to the Loan Agreement.

         Please confirm your agreement with the foregoing, on behalf of the Borrower, by signing
and dating this Amendment Letter in the spaces provided below. The provisions set forth in this
Amendment Letter shall become effective on the date of last signature, upon receipt by the Bank
of a fully executed Amendment Letter.
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       Please also note that the Restructuring Paper dated May 26, 2021 that reflects the above
changes will be disclosed on the Bank’s external website.


                                          Sincerely,

      INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT



                         _____________________________________
                                        Marianne Fay
                                          Director
                              Bolivia, Chile, Ecuador and Perú



CONFIRMED AND AGREED:

MUNICIPALITY OF IBARRA



By: _________________________
     Authorized Representative
           Elizabeth Andrea Scacco Carrasco
Name: _______________________
              Alcaldesa de Ibarra
Title: ________________________
           27-may.-2021
Date: ________________________




cc:    H.E. Mr. Simón Cueva, Minister of Economy and Finance
       Mr. Juan Carlos Alvarez, Resident Representative of Ecuador to The World Bank