OFFICIAL
IDOCUMENTS;
The World Bank                               E-32, Agargaon, Sher-e-Bangla Nagar  Tel.: (880-2) 5566-7777
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT  G.P.O. Box 97, Dhaka 1207  Fax.: (880-2) 5566-7778
INTERNATIONAL DEVELOPMENT ASSOCIATION        Bangladesh                   www.worldbank.org.bd
March 6, 2016
Mr. Abdullah Akbar
Agreement Officer
Office of Acquisition and Assistance
USAID/Bangladesh
Madani Avenue
Dhaka 1212
Bangladesh
Dear Mr. Akbar:
Supplemental Agreement between the United States Agency for International
Development and the International Development Association regarding the
Bangladesh Health Sector Development Program Single-Donor Trust Fund
USAID Grant No. AID-388-IO-12-00001
(Trust Fund No. TF072548 Parallel to Original Trust Fund No. TF071781)
1.   Reference is made to the Administration Agreement between the United States
Agency for International Development (the "Donor") and the International Development
Association (the "Bank" and together with the Donor, the "Parties" and each a "Party"),
regarding the Bangladesh Health Sector Development Program Single-Donor Trust Fund
No. TF071781effective as of February 5, 2012, as amended (the "Administration
Agreement").
2.  In connection with the Administration Agreement, and in support of the Bangladesh
Health Sector Development Program, the Bank acknowledges that the Donor agrees,
subject to Legislative appropriations, to provide a contribution in the amount of one million
six hundred thousand United States Dollars (US$1,600,000) (the "Contribution") in
accordance with the terms of this Supplemental Agreement (the "Supplemental
Agreement").
3.  In order to apply the Bank's new cost recovery provisions, the Bank has established a
new parallel trust fund account (Trust Fund No. TF072548) (the "Parallel Account") for
purposes of receiving contributions for the Bangladesh Health Sector Development
Program Single-Donor Trust Fund, which will be administered in parallel with the original
trust fund account (Trust Fund No. TF071781) (the "Original Account"), both of which
accounts constitute the Bangladesh Health Sector Development Program Single-Donor
Trust Fund.


Mr. Abdullah Akbar                 -2-                         March 6, 2016
4.   The Donor shall deposit the Contribution in the currency specified in Section 2 above
into such bank account designated by the Bank promptly following effectiveness of this
Supplemental Agreement and submission of a payment request by the Bank.
5.   When making a deposit, the Donor shall instruct its bank to include in its deposit
details information (remittance advice) field of its SWIFT deposit message, information
indicating: the amount deposited, that the deposit is made by the Donor for Trust Fund No.
TF072548 (the Bangladesh Health Sector Development Program Single-Donor Trust
Fund), and the date of the deposit (the "Deposit Instructions"). In addition, the Donor shall
provide a copy of the Deposit Instructions to the Bank's Accounting Trust Funds Division
by e-mail sent to tfremitadvice@worldbank.org or by fax sent to (202) 614-1315.
6.  The Parallel Account, including with respect to the Contribution funds and any other
funds contributed thereto, shall be governed by the terms of the Administration Agreement,
except that the revisions specified in the Schedule attached to this Supplemental Agreement
shall apply.
7.  At the date of Bank's signature of this Supplemental Agreement, the Indirect Rate (as
defined in the Schedule to this Supplemental Agreement) is 17%.
8.   For clarity, (a) all terms of the Administration Agreement, as such terms may be
amended from time to time, shall remain the same and apply to the funds in the Parallel
Account; and (b) all funds in the Original Account shall be governed by the Administration
Agreement, as such terms may be amended from time to time, without regard to this
Supplemental Agreement.
9.   The Bank shall disclose this Supplemental Agreement in accordance with the Bank's
Policy on Access to Information. By entering into this Supplemental Agreement, the Donor
consents to such disclosure.
10. Each of the Parties represents, by confirming its agreement below, that it is authorized
to enter into this Supplemental Agreement and act in accordance with these terms and
conditions. The Parties are requested to sign and date this Supplemental Agreement, and
upon possession by the Bank of this fully signed Supplemental Agreement, this
Supplemental Agreement shall become effective as of the date of the last signature.
INTERNATIONAL DEVELOPMENT ASSOCIATION
By:                                             Date: March 6, 2016
Name: Martin Rama
Title: Acting Country Director


Mr. Abdullah Akbar                  -3-                        March 6, 2016
UNITED STATES AGENCY FOR INTERNATIONAL DEVELOPMENT
By: 69AP        A   4~.                   Date:  MOA-i A  91?_61b,'
Name: A6.tJ,(1a 4k<bar
Title: 01O/{eev
Schedule
Revisions to the Administration Agreement for Purposes of the Parallel Account Only
(A) Section F.2 of Attachment I to the Administration Agreement is hereby eliminated
and replaced with the following:
"2. Cost Recovery Arrangement
The Bank shall, as administrator of the Trust Fund, enter into one or more grant agreements
(the "Grant Agreements") with recipient (the "Recipients") consistent with the purposes of
this Agreement and on the terms and conditions set forth in the Grant Agreement. For
Recipient-executed activities, the Bank shall calculate a fee each time funds (the "Grant
Amount") from the Trust Fund become committed under a Grant Agreement. Such
commitment shall occur when such Grant Agreement is fully countersigned (the
"Calculation Date"). The fee so calculated by the Bank shall be based on the cumulative
total of funds from the Trust Fund committed under all Grant Agreements that have been
fully countersigned on or prior to the Calculation Date (the "Cumulative Grant Total").
The calculated fee shall depend on where the Cumulative Grant Total stands as the Grant
Amount is added and shall be determined in accordance with the following schedule:
(i)  5% of any portion of the Grant Amount that results in a Cumulative Grant Total
below or equal to US$ 50 million or equivalent; plus
(ii) 4% of any portion of the Grant Amount that results in a Cumulative Grant Total
above US$ 50 million or equivalent and below or equal to US$ 500 million or equivalent;
plus
(iii) 3% of any portion of the Grant Amount that results in a Cumulative Grant Total
above US$ 500 million or equivalent and below or equal to US$ 1 billion or equivalent;
plus
(iv) 2% of any portion of the Grant Amount that results in a Cumulative Grant Total
above US$ 1 billion or equivalent.
Following each Calculation Date, the Bank shall deduct from the trust fund account, TF No.
TF072548, and retain for its own account, the fee as set forth above. Grant Amounts may
not exceed the balance of uncommitted funds in such account net of the related fee."


Mr. Abdullah Akbar                  -4-                         March 6, 2016
(B) The second paragraph under Section B of Attachment 2 to the Administration
Agreement is hereby substituted with the following:
"The following eligible expenditures categories may be used to finance Bank-executed
activities:
(a)  staff costs (excluding short term consultants and temporaries, and also excluding
extended term consultants and temporaries);
(b) extended term consultants and temporaries;
(c)  short-term consultants and temporaries;
(d) contractual services;
(e)  media, workshops, conferences and meetings;
(f) travel expenses; and
(g) equipment and office premises lease cost.
For purposes of the above expenditure categories: (i) "staff costs (excluding short term
consultants and temporaries, and also excluding extended term consultants and
temporaries)" includes salaries, benefits and indirect rates charged to the Trust Fund as
applicable under Bank policies and procedures; (ii) "extended term consultants and
temporaries" includes fees, benefits and indirect rates charged to the Trust Fund as
applicable under Bank policies and procedures; and (iii) "short term consultants and
temporaries" includes fees and indirect rates charged to the Trust Fund as applicable under
Bank policies and procedures.
The "Indirect Rate" means the indirect rate, defined as a percentage of personnel costs and
available at the World Bank's Donor center secure website, as such rate may be revised
from time to time by the Bank and applied to this Trust Fund, in accordance with its
policies and procedures."