Page 1 RCA 248423. \09 WUI 64145 \09 FAX (202) 477-6391 The World Bank 1818 H Street N.W. (202) 473-1000 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Washington, D.C. 20433 Cable Address: INTBAFRAD I NTERNATIONAL DEVELOPMENT ASSOCIATION U.S.A. Cable Address: INDEVAS CONFORMED COPY October 6, 2010 His Excellency Gheorghe Ialomi ianu Minister of Public Finance Bucharest, Romania Dear Mr. Minister: Judicial Reform Project (Loan No. 4811-RO) Amendment to the Loan Agreement We refer to the Loan Agreement between Romania (the Borrower) and the International Bank for Reconstruction and Development (the Bank) (the Loan Agreement), for the above-referenced Project, dated January 27, 2006. We also refer to your letter dated August 5, 2010 requesting certain amendments to the Loan Agreement. We hereby propose to amend the Loan Agreement as follows: 1. In Article II, Section 2.03 is amended to read as follows (modifications are shown in italics ): “The Closing Date shall be March 31, 2013 , or such later date as the Bank shall establish. The Bank shall promptly notify the Borrower of such later date.” 2 . In Article V – Remedies of the Bank , two new Sections 5.03 and 5.04 are added to read as follows: “Section 5.03. In the event of failure by the Borrower to implement any of the actions and measures set forth in the Annex to Schedule 5, the Bank may, upon notice to the Borrower, cancel a corresponding portion of the Unwithdrawn Loan Balance with respect to the expenditures related to a specific action or measure. The amounts subject to cancellation shall be determined by the Bank based on the estimates provided in the Annex to Schedule 5, and shall reflect the amounts of expenditures which will not be required for completion of Project activities due to the failure of the Borrower to implement a respective action in the Annex.” Page 2 -2- “Section 5.04. The provisions of Section 5.03 do not limit the Bank's right to exercise any of the remedies provided in Sections 7.02 (Suspension) and Section 7.03 (Cancellation by the Bank) of the General Conditions". Page 3 -3- 3. The Table set forth in paragraph 1 of Schedule 1 is amended in order to operate the reallocations of the proceeds of the Loan, as requested. Accordingly, the revised table in paragraph 1 of the Schedule 1 of the Loan Agreement is indicated in Attachment 1 to this letter. 4. Schedule 2 is amended as follows: 4.1. Part A.1 is amended as follows (modifications are shown in italics ): “1. Rehabilitation, construction and equipment of about eighteen (18) court buildings throughout the Borrower’s territory, through the provision of works, services and goods.” 4.2. Part C.2 is amended as follows: “2. Improving the information technology and technical standards of courts through the provision of goods and consultants’ services.” 4.3. Part D.2 is amended as follows (modifications are shown in italics ): “2. Strengthening the capacities of MOJ in the areas of capital investment planning, judicial statistics, budget planning and legal drafting , through the provision of advisory services, goods and training of the personnel of MOJ. Provision of the advisory services and training to DIEFP for the purposes of Project implementation. 4.4. Part D.5 is amended as follows (modifications are shown in italics ): “5. Strengthening the capacities of the relevant judicial and administrative institutions in the areas of budget planning and management through the provision of advisory services and training of personnel.” 5. In Schedule 4, Sections I.A and I.B are amended to apply the revised “Guidelines: Procurement under IBRD Loans and IDA Credits” (the Procurement Guidelines) and, respectively “Guidelines: Selection and Employment of Consultants by World Bank Borrower (the Consultant Guidelines), dated May 2004, Revised October 1, 2006 and May 1, 2010. The revised Procurement Guidelines and Consultant Guidelines are provided separately. 6. In Schedule 5, Part A, a new paragraph (f) is added to read as follows: “(f) The Borrower shall ensure that the MoJ and SCM shall dully implement all the actions and the measures set forth in the Annex to Schedule 5, in accordance with the timetable provided in this Annex.” Annex to Schedule 5 is added as provided in Attachment 2 to this letter. Page 4 -4- Please confirm your agreement with the foregoing, on behalf of Romania, by signing, dating and returning to us the enclosed copy of this letter. The amendment will become effective upon receipt of the countersigned copies of this letter. Sincerely, /s/ Peter C. Harrold Director Central Europe and the Baltic Countries Europe and Central Asia AGREED: ROMANIA By /s/ Bogdan Alexandru Dragoi Authorized Representative Title Secretary of State Date October 18, 2010 Page 5 -5- ATTACHEMENT 1 SCHEDULE 1 Withdrawal of the Proceeds of the Loan Category Amount of the Loan Allocated (expressed in EUR) Percentage of Expenditures to be financed (1) Civil Works 6,634,077.19 85% (2) Goods, including supply and installation of information systems 149,937.34 100% (3) Consultants’ Services and audits 2,318,998.75 100% (4) Design and construction supervision services under Part A of the Project 1,857,768.03 (5) Training and study tours 0 (6) Unallocated 0 (7) Civil Works, Goods, including supply and installation of information systems, Consultants’ Services and audits, Design and construction supervision services under Part A of the Project, Training and study tours 99,039,218.69 100% Total 110,000,000.00 Page 6 -6- Page 7 R C A 2 4 8 4 2 3 . \09 W U I 6 4 1 4 5 \09 F A X ( 2 0 2 ) 4 7 7 - 6 3 9 1 A T T A C H E M E N T 2 A n n e x t o S C H E D U L E 5 R o m a n i a J R P T a b l e o f A c t i o n s / M e a s u r e s f o r P r o j e c t E x t e n s i o n A . M E A S U R E S R E L A T E D T O C O M P O N E N T I – C O U R T R E H A B I L I T A T I O N M e a s u r e / A c t i o n T i m e l i n e t o b e m e t E s t i m a t e d a m o u n t s 1 t o b e c a n c e l l e d i f t h e s e m e a s u r e s / a c t i o n s a r e n o t m e t 2 1 . C i v i l w o r k s c o n t r a c t s s i g n e d f o r T u l c e a T r i b u n a l , A r g e T r i b u n a l a n d P i t e t i C o u r t o f A p p e a l . ( W o r l d B a n k w i l l r e c e i v e a c o p y o f t h e s i g n e d c o n t r a c t i n a w e e k a f t e r s i g n i n g ) N o l a t e r t h a n S e p t e m b e r 3 0 , 2 0 1 0 · T u l c e a – 5 , 0 0 3 , 0 1 0 . 2 4 E u r o ( 2 1 , 0 1 2 , 6 4 3 R O N ) 3 · A r g e s – 7 , 8 1 8 , 6 2 5 E u r o ( 3 2 , 8 3 8 , 2 2 5 R O N ) · P i t e s t i – 2 , 7 7 5 , 5 6 5 . 9 6 E u r o ( 1 1 , 6 5 7 , 3 7 7 R O N ) 2 . C i v i l w o r k s c o m p l e t e d f o r S l i t e F I C ( p h y s i c a l s t a t u s ) . ( W o r l d B a n k w i l l r e c e i v e a w r i t t e n c o n f i r m a t i o n f r o m D I E F P t h a t t h e r e s p e c t i v e c i v i l w o r k s p r o j e c t w a s c o m p l e t e d ) N o l a t e r t h a n S e p t e m b e r 3 0 , 2 0 1 1 · S l i t e – 1 9 5 , 4 5 0 . 8 1 E u r o ( 8 2 0 , 8 9 3 . 4 0 R O N ) 4 3 . A t l e a s t 5 0 % ( p h y s i c a l s t a t u s ) i m p l e m e n t a t i o n o f c i v i l w o r k s 1 T h e a m o u n t s a r e e s t i m a t e d a m o u n t s a t t h e d a t e o f t h i s a m e n d m e n t l e t t e r a n d t h e y m a y b e s u b j e c t o f c h a n g e s a s a g r e e d b y t h e B o r r o w e r a n d t h e B a n k . 2 T h e c a n c e l l a t i o n a p p l i e s t o t h e a m o u n t s ( e i t h e r e n t i r e c o n t r a c t v a l u e s , e i t h e r e s t i m a t e d p a y m e n t s l e f t t o b e p e r f o r m e d a t t h e t i m e l i n e s ) c o r r e s p o n d i n g t o e a c h c o u r t s e p a r a t e l y . T h e e v e n t u a l c a n c e l l a t i o n o f “ e s t i m a t e d p a y m e n t s l e f t t o b e p e r f o r m e d ” w i l l n o t a f f e c t t h e p a y m e n t s p e r t a i n i n g t o t h e o n - g o i n g c o n t r a c t . 3 T h e a m o u n t s r e p r e s e n t e n t i r e c o n t r a c t a m o u n t s . 4 T h e a m o u n t r e p r e s e n t s e s t i m a t e d p a y m e n t s l e f t t o b e p e r f o r m e d a t t h e e n v i s a g e d t i m e l i n e . T h e e v e n t u a l c a n c e l l a t i o n o f t h e ” e s t i m a t e d p a y m e n t s l e f t t o b e p e r f o r m e d ” w i l l n o t a f f e c t t h e p a y m e n t s p e r t a i n i n g t o t h e o n - g o i n g c o n t r a c t . Page 8 - 8 - f o r O r s o v a , I a l o m i t a , S u c e a v a – b a s e d o n a p r o f e s s i o n a l a s s e s s m e n t b y a W o r l d B a n k s u p e r v i s i o n m i s s i o n N o l a t e r t h a n J a n u a r y 3 1 , 2 0 1 1 5 · O r s o v a – 9 4 8 , 7 2 3 . 3 5 E u r o ( 3 , 9 8 4 , 6 3 8 . 0 5 R O N ) 6 · I a l o m i t a – 7 3 9 , 7 9 6 . 6 8 E u r o ( 3 , 1 0 7 , 1 4 6 . 0 2 R O N ) · S u c e a v a – 7 0 7 , 3 4 0 . 5 9 E u r o ( 2 , 9 7 0 , 8 3 0 . 4 8 R O N ) 4 . W o r k s c o m p l e t e d ( p h y s i c a l s t a t u s ) a t V a t r a D o r n e i , M a r a m u r e s , V i s e u l d e S u s a n d B o l i n t i n V a l e ( W o r l d B a n k w i l l r e c e i v e a w r i t t e n c o n f i r m a t i o n f r o m t h e D I E F P t h a t t h e r e s p e c t i v e c i v i l w o r k s p r o j e c t s w e r e c o m p l e t e d ) N o t l a t e r t h a n J a n u a r y 3 1 , 2 0 1 1 · V a t r a D o r n e i – 2 2 5 , 3 6 0 . 7 2 E u r o ( 9 4 6 , 5 1 5 . 0 0 R O N ) 7 · M a r a m u r e s – 1 6 6 , 1 3 9 . 9 1 E u r o ( 6 9 7 , 7 8 7 . 6 2 R O N ) · V i s e u l d e S u s – 1 3 0 , 4 6 9 . 0 5 E u r o ( 5 4 7 , 9 7 0 . 0 0 R O N ) · B o l i n t i n V a l e – 1 3 1 , 2 1 8 . 5 8 E u r o ( 5 5 1 , 1 1 8 . 0 0 R O N ) B . P O L I C Y R E F O R M R E L A T E D M E A S U R E S M e a s u r e / A c t i o n T i m e l i n e t o b e m e t A m o u n t s t o b e c a n c e l l e d i f t h e s e m e a s u r e s / a c t i o n s a r e n o t m e t 1 . C o n t r a c t s i g n e d f o r r e v i s e d a s s i g n m e n t r e g a r d i n g t h e O p t i m i z a t i o n o f c o u r t p r o c e d u r e s . N o l a t e r t h a n A p r i l 1 , 2 0 1 1 9 0 0 , 0 0 0 . 0 0 E u r o 8 5 C i v i l w o r k s a r e e x p e c t e d t o b e c o m p l e t e d n o l a t e r t h a n A p r i l 2 0 1 1 . T h e r e f o r e , p h y s i c a l c o m p l e t i o n o f a p p r o x i m a t e l y 5 0 % o f t h e s e p r o j e c t s b y J a n u a r y 3 1 , 2 0 1 1 , s h o u l d r e a s o n a b l y i n d i c a t e t h a t t h e c i v i l w o r k p r o j e c t s w i l l b e c o m p l e t e d a s c o m m i t t e d . 6 T h e a m o u n t r e p r e s e n t s e s t i m a t e d p a y m e n t s l e f t t o b e p e r f o r m e d a t t h e e n v i s a g e d t i m e l i n e . T h e e v e n t u a l c a n c e l l a t i o n o f “ e s t i m a t e d p a y m e n t s l e f t t o b e p e r f o r m e d ” w i l l n o t a f f e c t t h e p a y m e n t s p e r t a i n i n g t o t h e o n - g o i n g c o n t r a c t . 7 T h e a m o u n t r e p r e s e n t s e s t i m a t e d p a y m e n t s l e f t t o b e p e r f o r m e d a t t h e e n v i s a g e d t i m e l i n e . T h e e v e n t u a l c a n c e l l a t i o n o f “ e s t i m a t e d p a y m e n t s l e f t t o b e p e r f o r m e d ” w i l l n o t a f f e c t t h e p a y m e n t s p e r t a i n i n g t o t h e o n - g o i n g c o n t r a c t . 8 T h e a m o u n t r e p r e s e n t s e n t i r e e s t i m a t e d a s s i g n m e n t a m o u n t – a s p r o v i d e d i n t h e P r o c u r e m e n t P l a n . A s t h e o p t i m i z a t i o n i s u n d e r r e s t r u c t u r i n g a n d r e v i s i o n o f b u d g e t e s t i m a t i o n , t h e e x a c t a m o u n t t o b e c a n c e l l e d i f t h e c o n d i t i o n a l i t y w i l l n o t b e m e t , s h a l l b e t h e v a l u e o f t h e s i g n e d c o n t r a c t . Page 9 - 9 - ( W o r l d B a n k w i l l r e c e i v e a c o p y o f t h e s i g n e d c o n t a c t w i t h i n a w e e k a f t e r s i g n i n g ) 2 . A d o p t i o n b y t h e S C M o f t h e r e v i s e d s y l l a b u s f o r N S C . 9 ( W o r l d B a n k w i l l r e c e i v e a w r i t t e n c o n f i r m a t i o n f r o m D I E F P t h a t t h e r e v i s e d s y l l a b u s h a s b e e n a d o p t e d ) N o l a t e r t h a n J a n u a r y 3 1 , 2 0 1 1 4 8 7 , 6 7 5 . 0 0 E u r o 1 0 3 . C o n t r a c t s i g n e d f o r t h e p r o c u r e m e n t o f c o m p r e h e n s i v e R e s o u r c e M a n a g e m e n t S y s t e m ( R M S ) . ( W o r l d B a n k w i l l r e c e i v e a c o p y o f t h e s i g n e d c o n t a c t w i t h i n a w e e k a f t e r s i g n i n g t h e c o n t r a c t ) N o l a t e r t h a n J a n u a r y 3 1 , 2 0 1 1 1 5 , 6 9 4 , 3 7 6 . 8 7 E u r o ( 6 5 , 9 1 6 , 3 8 2 . 8 2 R o n ) 1 1 4 . S i g n i n g o f t h e c o n t r a c t t o p u r c h a s e t h e e x a m s o f t w a r e f o r t h e N I M . 1 2 ( W o r l d B a n k w i l l r e c e i v e a c o p y o f t h e s i g n e d c o n t a c t w i t h i n a w e e k a f t e r s i g n i n g ) N o l a t e r t h a n J u n e 3 0 , 2 0 1 1 2 0 , 0 0 0 . 0 0 E u r o 1 3 5 . C o n t r a c t s i g n e d f o r p r e p a r a t i o n o f t h e e n f o r c e m e n t o f t h e n e w 4 C o d e s , a s o n e o f t h e m o s t i m p o r t a n t o b j e c t i v e o f t h e S t r a t e g y f o r t h e D e v e l o p m e n t o f J u s t i c e a s a P u b l i c S e r v i c e 2 0 1 0 - 2 0 1 4 ” ( W o r l d B a n k w i l l r e c e i v e a c o p y o f t h e s i g n e d c o n t a c t w i t h i n a w e e k a f t e r s i g n i n g ) N o l a t e r t h a n J a n u a r y 3 1 , 2 0 1 1 1 , 6 7 3 , 6 0 0 . 0 0 E u r o 1 4 N o t e : T h e e x c h a n g e r a t e u s e d t o c o n v e r t t h e a m o u n t s o f c o n t r a c t s s i g n e d i n l o c a l c u r r e n c y : 1 E u r o = 4 . 2 R O N 9 T h e t i t l e o f t h e a s s i g n m e n t i n t h e P r o c u r e m e n t P l a n r e l a t e d t o t h i s c o n d i t i o n a l i t y i s – “ T e c h n i c a l a s s i s t a n c e – s y l l a b u s d r a f t i n g f o r N S C c u r r i c u l a a n d t r a i n i n g i n 4 n e w a r e a s ” . 1 0 T h e a m o u n t r e p r e s e n t s t h e c o n t r a c t v a l u e . T h e e v e n t u a l c a n c e l l a t i o n o f “ e s t i m a t e d p a y m e n t s l e f t t o b e p e r f o r m e d ” w i l l n o t a f f e c t t h e p a y m e n t s p e r t a i n i n g t o t h e o n - g o i n g c o n t r a c t . 1 1 T h e c o n t r a c t c a n b e s i g n e d n o l a t e r t h a n J a n u a r y 3 1 , 2 0 1 1 i f t h e L o a n A g r e e m e n t i s a m e n d e d b y t h i s d a t e a n d t h a t w o r k c o u l d b e c o m p l e t e w i t h i n t h e e x t e n d e d d u r a t i o n o f t h e L o a n A g r e e m e n t . 1 2 T h e s o f t w a r e s h a l l b e o w n e d b y N a t i o n a l I n s t i t u t e o f M a g i s t r a c y ( N I M ) a n d s h a l l b e u s e d f o r o r g a n i z i n g a t l e a s t p r e - L S A T e x a m i n a t i o n s p r e p a r e d a n d c o n d u c t e d b y N I M 1 3 T h e a m o u n t s r e p r e s e n t e n t i r e e s t i m a t e d a s s i g n m e n t a m o u n t – a s p r o v i d e d i n t h e P r o c u r e m e n t P l a n 1 4 T h e a m o u n t s r e p r e s e n t e n t i r e e s t i m a t e d a s s i g n m e n t a m o u n t – a s p r o v i d e d i n t h e P r o c u r e m e n t P l a n . 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