OFFICIAL THE WORLD BANK ANK GROUP OFFICE IBR -IDAI ORLBAKGRUPDOCUM ENTSoad,,Iaing Township Yangon, Myanmar, 11051 ELLEN GOLDSTEIN Director for Myanmar, Cambodia and Lao PDR East Asia and Pacific Region Ref: WB/084-May- 18 Date: May 15, 2018 H.E. Dr. Somdy Douangdy Deputy Prime Minister and Minister of Finance Ministry of Finance 23 Singha Road P.O. Box 46 Vientiane, Lao PDR Excellency: Re: Lao PDR: Early Childhood Education Project (IDA Grant No. H910-LA and IDA Credit No. 5370-LA) Amendments to the Financing Agreement We refer to the Financing Agreement dated May 14, 2014 between the Lao People's Democratic Republic ("Recipient") and the International Development Association ("Association") for the above-referenced Project, as amended. We also refer to your letter dated April 27, 2018 requesting the Association to extend the Closing Date of the Project and to reallocate the proceeds of the IDA Credit and IDA Grant among certain Categories. Accordingly, the Association proposes to amend the Financing Agreement as follows: 1. The withdrawal table set forth in Section IV.A.2 of Schedule 2 shall be amended to read as follows: Category Amount of the Grant Amount of the Credit Percentage of Allocated (expressed Allocated (expressed Expenditures to be in SDR) in SDR) Financed (inclusive of Taxes) (1) Goods, works, non- 2,500,000 5,840,000 100% consulting services, consultants' services, Training and Incremental Operating Costs for the Project (2) CCDG Grants 500,000 100,000 100% of the amount disbursed (3) National School 3,560,000 0 100% of the amount Meals Program Grants disbursed (4) Construction Grants 2,230,000 3,160,000 100% of the amount disbursed (5) VEDC Grants 310,000 100% of the amount disbursed (6) Unallocated 0 0 TOTAL AMOUNT 9,100,000 9,100,000 Tel: +95 (1) 654 824 Fax: +95 (1) 654 825 H.E. Mr. Somdy Douangdy - 2 - May 15, 2018 2. The Closing Date in Section IV.B.2 of Schedule 2 shall be amended to read as follows: "2. The Closing Date is December 31, 2020." Except as specifically amended by this letter, all other provisions of the Financing Agreement shall remain unchanged and in full force and effect. Please confirm your agreement with the amendments set out above by countersigning, dating and returning to us the enclosed copy of this letter. Upon receipt by the Association of the countersigned copy of this letter, the amendments shall become effective as of the date of countersignature. Very truly yours, INTERNATIONAL DEVELOPMENT ASSOCIATION By_ Ellen Goldstein Country Director Myanmar, Cambodia and Lao PDR East Asia and Pacific Region AGREED: LAO PEOPLE'S DEMOCRATIC REPUBLIC Authorized Representative Name: Srndy DOUANGDY Title: dAi sr oacaflu Date: 31 MAY 2011 Tel: +95 (1) 654 824 Fax: +95 (1) 654 825