OFFICIAL c                           -
DOCUME TS
The World Bank                                      1818 H Street N. .          (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
June 30, 2016
Hon. Patrick Pruaitch, MP
Minister for Treasury
Department of Treasury
Vulupindi Haus 4th Floor
P.O. Box 542
Waigain, 131 NCD
Papua New Guinea
Dear Minister,
Independent State of Papua New Guinea: Credit No. 5201-PG
PNG Energy Sector Development Project
Amendment to the Financing Agreement
We refer to the financing agreement ("Financing Agreement") between the Independent State of Papua
New Guinea ("Recipient") and the International Development Association ("Association") dated
May 29, 2013 for the abovementioned project. We also refer to your letter dated April 21, 2016, requesting
the Association make some amendments to the Financing Agreement, and our letter in response dated
May 23, 2016.
We are pleased to inform you that the Association concurs with your request, and proposes to amend the
Financing Agreement, as set out below:
"b)    Institutional and Strategy Development
(i)    Strategic environmental and social assessment of the policies to be
developed under Part 1 (a) of the Project;
(ii)   Development of a rural electrification strategy for the Recipient, including
inter alia (A) initial data to define resources and demand for rural
electrification; (B) an analysis of alternative models of community and rural
electrification initiatives, including cost structure, as input to the process for
developing tariffs for electricity supply; and (C) a methodology for
screening social and environmental aspects of rural electrification
initiatives; and
(iii)  Development of a natural gas master plan for the Recipient, including inter
alia: review of relevant existing policies, plans and studies; analysis of
natural gas demand; storage and transport needs, and markets; and
assessment of natural gas infrastructure, social and environmental impacts,
and methods to increase access to natural gas, particularly in rural areas."
1. Section I.A.2 of Schedule 2 to the Financing Agreement is amended to read as follows:
"2. The Recipient shall cause the Project Implementing Entity to establish no later than three
(3) months after procuring the Naoro Brown Project Developer and thereafter maintain, or cause the
Naoro Brown Project Developer to maintain, until completion of the Project, two (2) expert panels
(the Social and Environmental Expert Panel and the Dam Safety Expert Panel) on the basis of terms
RCA 248423. n.. WUI 64145 0:FAX (202) 477-6391


Independent State of Papua New Guinea     -2-                                June 30, 2016
of reference satisfactory to the Association which shall be responsible for providing feedback
respectively on social and environmental issues and dam safety issues related to the preparation of
the Naoro-Brown Hydropower Project."
2. The Closing Date specified in Section IV.B.2 of Schedule 2 to the Financing Agreement is extended
to July 31, 2019.
Please confirm your agreement to the amendments set out above by having an authorized representative
of the Recipient sign and date the form of confirmation set forth below, and returning one fully countersigned
original of this letter to the Association. Upon receipt by the Association of the copy of this letter
countersigned on behalf of the Recipient, this amendment letter shall become effective as of the date of the
countersignature.
Sincerely,
Mona Sur
Acting Country Director
Timor-Leste, Papua New Guinea
& Pacific Islands
East Asia and Pacific Region
AGREED:
INDEPENDENT STATE OF PAPUA NEW GUINEA
O
By:
Authorized Representative