s' OFFICIAL DOCUMENTS The World Bank E-32, Agargaon, Shere-Bangla Nagar, Dhaka 1207, Bangladesh Phone: (880-2) 5566-7777, Facsimile: (880-2) 5566-7778 Rajashree S. Paralkar Acting Country Director for Bangladesh, Bhutan and Nepal December 31, 2016 Senior Secretary Mohammad Mejbahuddin Economic Relations Division (ERD) Ministry of Finance Block 8, Room 3 Sher-e-Bangla Nagar Dhaka Dear Senior Secretary Mejbahuddin: Health Sector Development Program BHSDP MDTF Grant No. TF011556 and USAID Trust Fund Grant Number TF012281and Parallel USAID Trust Fund Grant Number TFOA2917 - Amendment to the Giant Agreement We refer to the Grant Agreement dated March 28, 2012, between the People's Republic of Bangladesh (the "Recipient") and the International Development Association (the "World Bank"), acting as administrator of the Bangladesh Health Sector Development Program Multi-Donor Trust Fund, and the USAID Support to the Bangladesh Health Sector Development Program (HSDP) Trust Fund, for the above-mentioned Project (the Grant Agreement); as amended. Taking into account that as a result of the Additional Financing for the IDA Credit processed in July 2016, the mode of financing for HSDP shifted from "input based" to a DLI-based funding modality using an Eligible Expenditure Program, but the funding modality under the USAID trust fund remained "input based"; the remaining USAID resources need to be used to finance expenditures incurred under the former input-based modality. Therefore, the Bank and the USAID have agreed to allow the USAID portion of the funds of the Grant Agreement (US$1.48 million) to be allocated as 100% retroactive financing, as a means to reimburse the government for eligible expenses incurred under the eight Operations Plans which USAID is supporting. Accordingly, the World Bank proposes to amend the Grant Agreement as follows: Section IV. B of Schedule 2 to the Grant Agreement (after the table of disbursement in paragraph 2 of Section IV.A of Schedule 2 as amended on October 3, 2016) is hereby amended to read as follows: "B. Withdrawal Conditions; Withdrawal Period 1. Notwithstanding the provisions of Part A of this Section, no withdrawal shall be made for: (a) payments made prior to the date of this Agreement, except withdrawals made for payments made prior to this date but on or after March 9, 2016, for Category (1) Eligible Expenditures under the Project corresponding to TF0A2917 (US$1,478,552). Senior Secretary Mohammad Mejbahuddin -2- December 31, 2016 (b) For Eligible Expenditures under a contract which any other international institution or agency, or the Association, shall have financed, or agreed to finance under any other agreement. 2. The Closing Date referred to in Section 3.06(c) of the Standard Conditions is December 31, 2016". Except as specifically amended by this letter of amendment, all other provisions of the Grant Agreement shall remain unchanged and in full force and effect. The World Bank will disclose this letter of amendment and related information in accordance with the World Bank's policy on Access to Information. By entering into this letter of amendment, the Recipient consents to such disclosure. Please confirm your agreement to the foregoing on behalf of the Recipient by countersigning and dating the corresponding form of confirmation set forth below, and returning one fully signed original of this letter to us. Upon receipt by the World Bank of the copy of this letter of amendment duly countersigned by the authorized representative of the Recipient, the above amendments to the Grant Agreement shall become effective as of the date of countersignature. Sincerely, INTERNATIONAL DEVELOPMENT ASSOCIATION By Rajashree S. Para11i CONFIRMED: PEOPLE'S REPUBLIC OF BANGL ESH By: 5 P. Z- Name: Shah Md. Amini Hag Additional Secretary Economic Relations Division Title: Mlnlstry of Finance Go7t. of the Peoples Republic of Bangladesh Date: .23 1 DL-K 2i1 4 cc: Mr. Subhash Chandra Garg, Executive Director for Bangladesh, World Bank Mr. Muhammad Musharraf H. Bhuiyan, Alternate Executive Director for Bangladesh, World Bank Mr. Md. Sirazul Islam, Secretary, Ministry of Health and Family Welfare Mr. Kazi Shofiqul Azam, Additional Secretary, Economic Relations Division, Ministry of Finance Dr. AE Md. Muhiuddin Osmani, Joint Chief (Planning Wing), Ministry of Health and Family Welfare