The World Bank . +93 0700 27-6002 INTERNATIONAL BANK FOR RECONSTRUCTION AND ELOPMENT Wazir Akbar Khan WBGN: 5232 + Extension INTERNATIONAL DEVELOPMENT ASSOCIATION Kabul, Afghanistan WBGN Fax. 5232+350 May 13, 2012 H.E. Hazrat Omar Zakhilwal Minister of Finance Ministry of Finance Islamic Republic of Afghanistan Kabul, Afghanistan Excellency: Re: Afghanistan Reconstruction Trust Fund Grant Agreement (TF093962) Second Education Quality Improvement Project (EQUIP II) Third Amendment - Increase of Grant Amount 1. I refer to the Afghanistan Reconstruction Trust Fund Grant Agreement dated April 14, 2009 (the "Grant Agreement") between the Islamic Republic of Afghanistan (the "Recipient") and the International Development Association, in its capacity as the administrator of the Afghanistan Reconstruction Trust Fund (the "ARTF") for the Second Education Quality Improvement Project ("EQUIP-1l" or the "Project"), as amended by letters dated June 27, 2010 and July 24, 2011. 2. I further refer to the proposal recently approved on March 19, 2012 by the ARTF's Management Committee, providing additional funds for the financing of EQUIP-II in the amount of twenty three million United States Dollars (US$23,000,000). 3. I am therefore pleased to propose that the Grant Agreement be amended as follows: (i) Section 3.01 of the Grant Agreement is hereby amended to read: "The Administrator 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 one hundred fifty eight million United States Dollars ($158,000,000) (the "Grant") to assist in the financing the Project." (ii) The table in paragraph A. 1 of Section IV of Schedule 2 to the Grant Agreement is hereby amended to read: Percentage of Amount of the Grant Expenditures to be Allocated Financed Category (Expressed in USD) (Inclusive of Taxes) (1) Goods, works, consultants' 158,000,000 100% services, School Grants, training and Incremental Operating Costs* for the Project TOTAL AMOUNT 158,000,000 H.E. Hazrat Omar Zakhilwal -2- May 13, 2012 4. Unless the context otherwise required, and except where otherwise defined in this amendment letter, all capitalized terms contained herein shall have the meaning given to them in the Grant Agreement. 5. All terms and conditions of the Grant Agreement that have not been amended pursuant to this amendment letter shall remain unchanged and in full force and effect. 6. Please confirm your agreement to the amendment set out above by signing, or arranging for an authorized representative of the Recipient to sign, the form of confirmation set out below, returning one fully executed original of this amendment letter to us at your earliest convenience and retaining one original for your records. Upon receipt by the International Development Association of this countersigned copy, this amendment shall become effective as of the date of the countersignature. Sincerely, INTERNATIONAL DEVELOPMENT ASSOCIATION (Acting as Administrator of the Afghanistan Reconstruction Trust Fund) Rob J. Saum Country Director fo Afghanistan and Buhtan South Asia Region CONFIRMED and AGREED: ISLAMIC RE LIC OF AFGIKNI Signature: Name: \sg e 0 Of Title: Mfic~TM OF tii& Date: tq\m 0 (Q0la H.E. Hazrat Omar Zakhilwal -3- May 13, 2012 cc: H.E. Farooq Wardak, Minister of Education, Ministry of Education Dr. Mohammad Mustafa Mastoor, Deputy Minister of Finance, MOF Mr. Ahmad Javed Jalali, Director General Budget, Ministry of Finance Dr Sayed Hamidullah, Deputy Minister, Administration and Finance, MOE Mohammad Sarwar Azizi, Chief of Staff & Senior Technical Advisor to the Minister, MOE Mr. Ziaulhaq Safi, Financial Management Director, MOE Mr. Abdul Hanifi, Procurement Director, MOE Dr. Seddiq Weera, EQUIP Director and Senior Advisor to the Minister, MOE Ms. Susan Wardak, Senior Policy Advisor & General Director of Teacher Education, MOE Dr. Amir Mohammad, EQUIP Regional Coordinator, MOE Mr. Sid Ahmed Dib, Executive Director for Afghanistan, The World Bank Mr. Samiullah Ibrahimi, Advisor to Executive Director, The World Bank H.E. Hazrat Omar Zakhilwal -4- May 13, 2012 Cleared with and bcc: , Shen (TACT/CTRTF); Anthony Cholst (SASAA); Zhao (SAC01) bcc: Messrs./Mmes.: Afghanistan CMU (SACO 1); Zhu (SARVP); O'Brien (SARDE); Van Tilburg (LEGES); Redaelli (SASEP); Kabul Procurement (SARPS); Narayan, Farooq (SARFM); Dar, de Silva, Farahi, Haidary, Qurishi, Graitge (SASHD) Institutional File: WBDocs