IOFF~IIAL 4_ 4 The World Bank 1818 H Street N.W. (202) 477-1234 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Washington, D.C. 20433 Cable Address: INTBAFRAD INTERNATIONAL DEVELOPMENT ASSOCIATION U.S.A. Cable Address: INDEVAS April 3, 2014 H.E. Dr. Mohammed Saed Al-Sadi Minister of Planning and International Cooperation Ministry of Planning and International Cooperation P. O. Box 175 Sana'a, Republic of Yemen YEMEN: Power Sector Project Amendment to the Financing Agreement (Credit No.4172-YEM) Excellency: We refer to the Development Credit Agreement (the "Agreement") for the above- mentioned Project, dated July 11, 2006, between the Republic of Yemen (the Borrower) and the International Development Association (the Association). We also refer to your letter dated March 18, 2014, requesting specific amendments to the Agreement. We are pleased to inform you that the Association accedes to your request and proposes to amend the Agreement as set forth in this letter (the Amendment). 1. Section 1.02 of the Agreement is amended by: (a) deleting the word, "and" at the end of subparagraph (j); (b) deleting the period "." at the end of subparagraph (k) and inserting a semi- colon ";"; (c) and inserting subparagraphs (1) and (m), respectively, to read as follows: "(1)" "Original Grant Amount" means an amount of thirty five million Special Drawing Rights (SDR 35,000,000) referred to in Section 2.01 of this Agreement; and" "(m)" "Reduced Grant Amount" means an amount of thirty one million five hundred thousand Special Drawing Rights (SDR 31,500,000) referred to in Section 2.01 of this Agreement." 2. Section 2.01 of the Agreement is amended to read as follows: "Section 2.01." "The Association agrees lend to the Borrower, on the terms and conditions set forth or referred to in this Agreement, an amount in various currencies equivalent to thirty one million five hundred thousand Special Drawing Rights (SDR 31,500,000), which consists of an amount equivalent to thirty five million Special Drawing Rights (SDR 35, 000,000) ("Original Credit Amount"), as reduced by an amount equivalent to three million five hundred thousand Special Drawing Rights (SDR 3,500,000) ("Reduced Credit Amount")." 3. Schedule 2 to Agreement (Project Description) is amended by deleting Part B.3 and B.4, respectively, and renumbering Part B.5 as B.3 and Part B.6 as B.4, respectively. 2 4. The table set forth in Section paragraph I of Schedule 1 to the Agreement as restated in table 2 in the Annex to this Amendment ("Original Grant Amount"), is replaced with the table 1 ("Reduced Grant Amount") set forth in the Annex to this Amendment. All other provisions of the Agreement, except as herein amended, shall remain in full force and effect. Please indicate agreement to the foregoing, on behalf of the Borrower, by countersigning and dating the form of confirmation on the two original copies of this letter provided and returning one original, as countersigned, to us. Upon receipt by the Association of the copy of this letter countersigned by the Recipient this Amendment shall become effective as of the date of its countersignature. Sincerely, INTERNATIONAL DEVELOPMENT ASSOCIATION Hartwig Schafer Director Yemen, Egypt and Djibouti Country Department Middle East and North Africa Region CONFIRMED: REPUBLIC OF YEMEN Authorized Representat%e , Name:A( Y4/A()I P) 4~) A - Title: $4,1:0j,rs oro'f 1' 0i"'i( 1 ~ Date: 7/4/ 2 3 cM Eng. AbdulMajeid Saleh Eddehbali Acting Managing Director Public Electricity Corporation P. 0. Box 178 Sana'a Republic of Yemen 4 Annex "SCHEULE 1" Withdrawal of the Proceeds of the Credit TABLE 1 REDUCED CREDIT AMOUNT A. General 1 . The table below sets forth the Categories of items to be financed out of the proceeds of the Credit, the allocation of the amounts of the Credit to each Category and the percentage of expenditures for items so to be financed in each Category: Category Amount of the Grant Percentage of Allocated (Expressed in Expenditures to be SDR) Financed (1) Works 27,603,650,000 70% (2) Goods 1,566,350,000 100% (3) Consultant's services under: 100% (a) Parts A.1, A.2 and A.3 of the 1,240,000 Project. (b) Other Parts of the Project 1,030,000 (4) Training 60,000 100% (5) Unallocated 0 TOTAL AMOUNT 31,500,000 TABLE 2 ORIGINAL GRANT AMOUNT Category Amount of the Grant Percentage of Allocated (Expressed in Expenditures to be SDR) Financed (1) Works 25,390,000 70% (5) Goods 4,400,000 100% 5 (3) Consultant's services under: 100% (c) Parts A.1, A.2 and A.3 of the 1,240,000 Project. (d) Other Parts of the Project 1,390,000 (4) Training 60,000 100% (5) Unallocated 2, 520,000 TOTAL AMOUNT 35,000,000 6 Cleared with and bec: E. Mwenda (LEGAM); Kassem, Brahim (CTRLA) Bcc: Zakout, Sharhan, Handal (MNCYE); Ahmad, Cormier, Liporaci (MNSSD); Alkan, Gupta, James (MNCA3); El Husseini (MNC03); wbdocs