OFFICIAL DOCUMENTS The World Bank 1818 H Street N.W. (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 'S(JkV Q , ,2017 H. E. Louis Paul Motaze Minister of Economy, Planning and Regional Development Ministry of Economy, Planning and Regional Development Yaounde Republic of Cameroon Re: Republic of Cameroon: Equity and Quality for Improved Learning Project (TF016665) Amendment to the Grant Agreement Excellency: We refer to the Grant Agreement between the Republic of Cameroon ("Recipient") and the International Bank for Reconstruction and Development, acting as Trustee of the Global Partnership for the Education Fund ("World Bank"), dated March 11, 2014 ("Agreement"), as amended on December 14, 2015 for the above referenced project ("Project"). Please note that the capitalized terms used in this letter ("Amendment Letter") and not defined herein have the meaning ascribed to them in the Agreement or Standard Conditions as applicable. We also refer to your letter dated April 5, 2017 requesting for the restructuring of the Project. We are pleased to inform you that the World Bank accepts your request and proposes, through this Amendment Letter, to further amend the Agreement as follows: I. Part 1(b) of Schedule I to the Agreement is hereby amended to read as follows: "(b) (i) Provision of quality, low-cost and durable: (A) textbooks; and (B) teachers' guides, readers and stationaries for a cohort ofstudents for the duration oftheirfirst through third grades in the Recipient's public schools; and (ii) carrying out ofa program ofproper-and- intended use awareness campaigns for said teaching and learning materials;" 2. Section I.E.2 of Schedule 2 to the Agreement is hereby amended to read as follows: "2. The Recipient shall cause said Third-Party Verification Agents to carry out, throughout Project implementation, once every semester, verification exercises of the Project activities, including CTP-related activities; the distribution of textbooks under Part I (b) (i) (A) including focus group surveys, spot checks, verification of data provided and records kept by the Recipient, printing and distribution ofsaid textbooks; and assessments of the quality of education service delivery provided under the Project activities, including the efficacy and accuracy of the student performance testing, teacher training and performance evaluation, all as further detailed in the Project Implementation Manual." 3. Section IV.A.2 of Schedule 2 to the Agreement is hereby amended to read as follows: 1 "2. The following table specifies the categories of Eligible Expenditures that may be financed out of the proceeds of the Grant ("Category"), the allocations of the amounts of the Grant to each Category, and the percentage of expenditures to be financed for Eligible Expenditures in each Category: Amount of the Grant Percentage of Expenditures Category Allocated (expressed in to be Financed USD) (inclusive of Taxes) (1) Salaries under Part 29,376,000 100% 1(a) of the Project (2) Goods for Part 9,219,804 100% 1 (b) (i) (A) of the Project (3) Goods, non- 10,910,996 100% consulting services, consultants 'services, Training and Operating Costs under Parts, 1(b)(ii), 1 (c) , 1 (d) , 1 (e) , 1 (f) and 2 of the Project (4) Unallocated 0 (5) Goods under Part 3,793,200 100% 1 (b) (i) (B) of the Project TOTAL AMOUNT 53,300,000" 4. Section V.A.2 of Schedule 2 to the Agreement is hereby amended to read as follows: "2. Unless otherwise agreed with the World Bank, the Recipient shall: (a) in addition to the Regular Allocation for the CTP, ensure that its FY2015 budget is comprised, in part, of the September through December salary for the First Cadre; (b) in addition to the Regular Allocation for the CTP, ensure that its FY2016 budget is comprised, in part, ofthe January through August salary for the First Cadre and the September through December salary for the Second Cadre; 2 SCHEDULE 3 Amount of Financing Amount Amount of Disbursement Allocated in of Financing "Disbursement-Linked Indicators Actions to be completed Category 2015/16 Financing Allocated in (in USD) Allocated 2017/18 in (in USD) 2016/17 (in USD) I Letter from MINEDUB confirming the * Government budget includes salary budget commitments for: (i) ongoing CTP; commitments for 4 months (September- (ii) Project CTs; and (iii) list from December) and for 8 months (January-August) MINEDUB/ DRH with the names and * MINEDUB creates MINFOPRA list A, and unique contract reference numbers for the MINFOPRA list B teachers who have been newly converted * MrNEDUB has applied the agreed objective /Recruitcd targeting criteria for selecting mares des parents to be converted to contract teachers and (1) Salaries under Part 3,329,280 3,231,360 3,231,360 for recruiting new ENIEG graduates as contract I(a) of the Project teachers where necessary (33%) (33%) (33%) 2. Finalized technical verification report of * Third party technical verification for technical the Project CTs satisfactory to the Bank by compliance August and Finalized financial audit report * Financial audit of the Project CT of the Project CTs including SIGIPES & (1) Salaries under 6,658,560 6,462,720 6,462,720 ANTILOPE reports satisfactory to the Part 1(a) World Bank, by August of the Project (67%) (67%) (67%) 5 Amount of Financing Amount of Financing Disbursement Allocated in Allocated in 2017/18 Disbursement-Linked Indicators Actions to be completed Category 2015/16 (in USD) (in USD) 3. Government provides a written guarantee/ Government budget to include 100% financing undertaking that the: (i) 2013 Approved for primary grades 1,2 and 3 Booklist for primary grades 1, 2 & 3 will remain constant during each of the Project Note: The Project will finance according to the implementation years; and (ii) same following criteria: (a) for primary grade I textbooks textbooks/titlcs selected during the first year the unit prices will not exceed USS3.00; (b) for (2) Goods for Part 1,143,090 955,333 of the Project will remain constant during the primary grade 2 textbooks the unit price will not I(b)(i)(A) of the Project implementation period exceed US$3.50; (c) for primary grade 3 textbooks Project (40%) (40%) the unit price will not exceed US$4.20; and (d) reading books unit price will not exceed US$2.25. Should the unit cost exceed the Project specified ceiling price, Government would finance the difference. If, however, the unit cost is below the Project specified ceiling price, Government would ensure that more textbooks are produced and supplied to public primary schools. 4. Finalized technical verification report of *Third party technical verification to review All textbooks have reached public primary schools in publishing, printing, and distribution of technical compliance time for the academic year. (2) Goods for Part 1,714,635 1,432,999 5. Finalized financial audit report of * (b)(i)(A) of the publishing, printing, and distribution of Ptcjectchnicalcompli textbooks, statistics, inventory/data *Financial audit of the institutional capacity of All textbooks have reached public primary schools 30 satisfactory to the World Bank MINEDUB days afterthe start ofthe academic year. [95% of60%] (2) Goods for Part 1,571,74 1,361,349 5 (b)(i)(A) of the Project All teaching and learning materials have reached public primary schools 60 days after the start of the academic year. (90% of 60%L_ (2) Goods for Part 1,428,863 1,289,699 1(b)(i)(A) of the Project All teaching and leaing materials have reached primary schools 90 days after the start of the academic year. 000 0.001, 6 (c) in addition to the Regular Allocation for the CTP, ensure that its FY2017 budget is comprised, in part, of the January through August salary for the Second Cadre and the September through December salary for the Third Cadre; and (d) in addition to the Regular Allocation for the CTP, ensure that its FY2018 budget is comprised, in part, of the January through August salary for the Third Cadre." 5. Section V.B of Schedule 2 to the Agreement is hereby amended to read as follows: "B. Textbooks Financing 1. The Recipient shall maintain the 2013 approved booklistforfirst, second and third grades throughout the Project implementation period and, to that end, shall undertake to so maintain said approved booklist ("Approved Booklist Undertaking"). 2. MINEDUB, acting on behalf of the Recipient, shall cause to be published and distributed, the textbooks referred to in Part l(b)(i)(A) and the teachers' guides, readers and stationaries referred to in Part I(b)(i)(B) of the Project as further detailed in the Project Implementation Manual. 3. Notwithstanding the provisions of paragraph 2 above: (a) the Recipient shall ensure that the textbooks referred to in Part 1(b)(i)(A) are distributed to beneficiary schools, not later than the first day of each academic year; and (b) in cases where said textbooks have been distributed, (i) after the first day of each academic year but not later than thirty (30) days thereafter, the Recipient shall be reimbursed at only 95% of the total allocated Eligible Expenditure; (ii) after thirty (30) days but not later than ninety (90) days following the first day of each academic year, the Recipient shall be reimbursed at only 90% of the total allocated Eligible Expenditure; and (iii) after ninety (90) days following the first day of each academic year, the Recipient shall not be reimbursed. (c) For the purposes of academic year 2016-2017, notwithstanding the provisions of paragraphs 3(a) and 3(b) above, the Recipient shall ensure that the textbooks referred to in Part 1(b)(i) (A) are distributed to beneficiary schools by June 30, 2017" 6. Schedule 3 to the Agreement is hereby deleted in its entirety and replaced with the revised table set forth in the Annex to this Amendment Letter. Please confirm your agreement with the foregoing amendment by signing and dating this Amendment Letter in the spaces provided below. All other provisions of the Agreement, except as amended herein, shall remain in full force and effect. 3 This Amendment Letter shall be executed in two counterparts each of which shall be an original and shall become effective upon receipt by the World Bank of one countersigned original of this Amendment Letter. Sincerely INTERNATIONAL BANK FO UCTION AND DEVELOPMENT Co ron AGREED: REPUBLI CAMEROON By: S~ Date:> 1f LE MINISTRE 4