OFFICIAL C2ppl g; O The World Bank COGUMONTIet N.W. (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 7 .23 ,2015 Mr. Muhammad Saleem Sethi Secretary Economic Affairs Division Government of Pakistan Islamabad Re: Islamic Republic of Pakistan: KP/FATA/Balochistan Multi-Donor Trust Fund Governance Support Project for KP, FATA and Balochistan - TFO10510 Amendment to the KP, FATA and Balochistan Multi-Donor Trust Fund Restated and Amended Grant Agreement Dear Mr. Sethi: We refer to the KP, FATA and Balochistan Multi-Donor Trust Fund Restated and Amended Grant Agreement (the "Grant Agreement"), dated September 12, 2012, between the Islamic Republic of Pakistan (the "Recipient") and the International Bank for Reconstruction and Development and the International Development Association (collectively, the "World Bank"), acting as administrator of the KP / FATA / Balochistan Multi-Donor Trust Fund, and the Project Agreement dated October 11, 2011 between the World Bank and Khyber Pakhtunkhwa, the Project Agreement dated October 11, 2011 between the World Bank and the Federally Administered Tribal Areas, and the Project Agreement dated September 12, 2012, between the World Bank and the Province of Balochistan, (collectively, the "Project Implementing Entities"), for the above-referenced Project (the "Project"). We also refer to the Economic Affairs Division's letters dated August 26, 2013 and August 29, 2014, requesting the World Bank to provide second additional financing (the "Second Additional Financing") to scale-up the scope of activities under the Project. We are pleased to inform you that, after due consideration, the World Bank agrees with your request, and hereby proposes to amend the Grant Agreement as set forth below. Capitalized terms used but not defined in this amendment letter have the meanings given to them in the Grant Agreement and the Standard Conditions, as applicable. 1. Article III, Section 3.01 of the Grant Agreement is amended to increase the total Grant amount to date as follows: "3.01. The World Bank agrees to extend to the Recipient, on the terms and conditions set forth or referred to in this Agreement, a grant in an amount equal to twelve million seven hundred fifty thousand Dollars ($12,750,000) (the "Grant") to assist in financing the Project." 2. Schedule 2, Section II.A: the indicators set forth in paragraph 1(b) are replaced and the revised indicators are attached (Attachment 1) to this amendment letter. 3. Schedule 2, Section IV: The disbursement table set forth in paragraph A.2 is replaced and the revised table is attached (Attachment 2) to this amendment letter. Except as specifically amended by this amendment letter, all other provisions of the Grant Agreement remain in full force and effect. Please confirm your agreement to the foregoing by signing the form of confirmation set forth below and returning one fully executed original of this amendment letter to us and retaining one original for your records. Upon receipt by the World Bank of the countersigned copy, this amendment letter shall become effective as of the date of the countersignature. Sincerely, INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION ACTING AS ADMINISTRATOR OF THE KP / FAT / BALOCHISTAN MULTI-DONOR TRUST FU Rachid enmessaou Country Director, Pakist n South Asia Region AGREED ISLAMIC REPUBLIC OF PAKISTAN Name: Title: MUAMMAD SAI FEM SFTHI Secretary Date: Economic Affairm Division Islamabad 2 Attachment I Results Framework and Monitoring Project Development Objectives Current Project Development Objective - To strengthen the capacity of government departments in Khyber Pakhtunkhwa (KP), FATA and Balochistan to help support efficient delivery of the PCNA program in KP and FATA and related development programs in Balochistan. Results Core sector indicators are considered: Yes Results reporting level: Project Level Project Development Objective Indicators Status Indicator Name Core Unit of Measure Baseline Actual(Current) End Target New Number of grievances Number Value 0.00 159.00 200.00 addressed by Peshawar High Date I l-Oct-201 I 19-Jan-2015 30-Jun-2015 Court Comment e-Citizen The average grievance number redressal disposed per mechanism month. newly established New Number of grievances Number Value 15.00 29.00 30.00 addressed by KP Ombudsman Date 1-Oct-201 I 19-Jan-2015 30-Jun-2015 Comment The unit is The average average number number disposed per disposed per month. month. New Number of grievances Number Value 82.00 100.00 150.00 addressed by Balochistan Date 12-Sep-2012 19-Jan-2015 30-Jun-2015 Ombudsman Comment The unit is The average average number number disposed per disposed per month. month. New Average Processing Time for Hours Value 145.00 145.00 120.00 Public Services (hours) Date 1-Oct-201 1 03-Feb-2014 30-Jun-2015 Comment The indicator The indicator The indicator measures the measures the measures the hours taken for number of hours number of hours delivery of taken for delivery taken for Domicile of Domicile delivery of Certificate in Certificate in KP Domicile KP, following Certificate in the KP establishment of the Right to Services Commission. New Total number of transactions X Number Value 0.00 51288.00 55000.00 for the main public service Sub Type targeted by the project Supplemental New Proportion of funds directed to I Percentage Value 0.00 1.00 1.00 priority sectors increased based Date 1-Sep-2012 27-Nov-2014 30-Jun-2015 on citizen consultations in Balochistan Comment The number The number The number indicates the indicates the indicates the 2 effect (or not) effect (or not) on effect (or not) on budget budget policy on budget policy policy measured by I measured by 1 measured by I percentage point percentage point percentage target of the total target of the point target of percentage of the total percentage the total budget allocated of the budget percentage of to the priority allocated to the the budget sectors (health priority sectors allocated to the and education) attributable to priority sectors attributable to the the citizen (health and citizen consultations education at consultations. least) attributable to the citizen consultations New Reduction of the number of Number Value 150.00 70.00 65.00 days (average) from proposal Date 11-Oct-20 11 27-Nov-2014 30-Jun-2015 to start of implementation of programs under the Rapid Comment Days Days Days Response Facility New Average Processing Time for Hours Value 5768.00 760.00 750.00 Public Services (hours) Date 02-Jan-2012 27-Nov-2014 30-Jun-2015 Comment Value Value measures Value measures measures the the average time the average time average time to appellate to appellate to appellate decisions by decisions by decisions by FATA Tribunal FATA Tribunal FATA Tribunal in comparison with the prior appellate system. New Total number of transactions X Number Value 200.00 773.00 800.00 for the main public service Sub Type targeted by the project Supplemental New Investments mobilized in Amount(USD) Value 0.00 1.40 1.50 targeted development sectors Date 11-Oct-201 I 27-Nov-2014 30-Jun-2015 responding to the PCNA program in KP and FATA Comment 10-year PCNA US$ billion US$ billion program launched in 2010 with a target value of US$ 2.8 billion of investments. Sub Type Supplemental Intermediate Results Indicators Status Indicator Name Core Unit of Measure Baseline Actual(Current) End Target New Governance frameworks to Number Value 0.00 0.00 2.00 lead reforms developed Date I 1-Oct-2012 27-Nov-2014 30-Jun-2015 Comment The indicator (i) KP and measures the FATA development developed of long-term (ii) Governance Balochi Framework stan designed Programs. New Participants in consultation Number Value 0.00 1000.00 2000.00 4 activities during project Date I 1-Sep-2012 27-Nov-2014 30-Jun-2016 implementation (number) Comment GSP targets citizen engagement in reform activities to contribute to the PCNA strategic objective 1 of citizen trust restoration. New Participants in consultation Number Value 0.00 100.00 200.00 activities during project iletioitiesdurng prfee Sub Type Date 11-Sep-2012 28-Nov-2014 30-Jun-2015 implementation - female Breakdown Comment KP, FATA, KP, FATA, and and Balochistan are Balochistan highly are highly conservative conservative societies with societies with negligible level negligible of females level of involvement in females development. involvement in development. New Direct project beneficiaries Number Value 0.00 1000.00 2000.00 Date 11-Sep-2012 27-Nov-2014 30-Jun-2015 Comment Estimated number of beneficiaries of the PCNA program. 5 New Female beneficiaries Percentage Value 0.00 100.00 200.00 Sub Type Supplemental Revised Number of monitoring systems Yes/No Value No No Yes developed Date I l-Oct-201 1 14-Jun-2014 30-Jun-2015 Comment (i) M&E 2 systems in KP units working in and FATA KP and FATA (ii) 1st PCNA Monitoring Report produced in KP and FATA. Revised Number of donors/CSOs Yes/No Value No Yes Yes participating in Development Date 11-Oct-201 I 14-Jun-2014 30-Jun-2014 Forums hosted by KP Comment Donors, CSOs Development included. 5 Partners Forum Forums held by including KP and 4 by government, FATA. donors, CSOs meeting for KP and FATA 6 Attachment 2 Category Amount of the Percentage of Grant Allocated Expenditures to be (expressed in Financed USD) (inclusive of Taxes) (1) Goods, non-consultant services, consultant services, Training and Workshops, and Incremental Operating Costs for activities under Part A.1 through A.4 of the 2,525,000 100 % Project carried out by Khyber Pakhtunkhwa (2) Goods, non-consultant services, consultant services, Incremental Operating Costs and Training and Workshops for activities under Part B of the Project 2,675,000 100% carried out by Khyber Pakhtunkhwa (3) Goods, non-consultant services, consultant services, Training and Workshops, and Incremental Operating Costs for activities under Part A.1 through A.4 of the 2,325,000 100% Project carried out by FATA (4) Goods, non-consultant services, consultant services, Incremental Operating Costs and Training and Workshops for activities under Part B of the Project 3,225,000 100% carried out by FATA (5) Goods, non-consultant services, consultant services, Training and Workshops, and Incremental Operating Costs for activities under Part A.2 through A.5 of the 1,330,000 100% Project carried out by Balochistan (6) Goods, non-consultant services, consultant services, Incremental Operating Costs and Training and Workshops for activities under Part B of the Project 670,000 100% carried out by Balochistan TOTAL AMOUNT 12,750,000