OFFICIAL DOCUMENTS AMENDMENT No 1 to the Administration Agreement for Part II Europe 2020 Programmatic Single-Donor Trust Fund (No. TF072824) (EC Contract No. 2017.CE.16.BAT.048) 1. The European Union, represented by the EUROPEAN COMMISSION (the "Donor"), which is represented for the purposes of signing this amendment by Eric von Breska, Director, Directorate-General Regional and Urban Policy, Directorate Policy, of the one part, and 2. The INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (the "Bank"), represented for the purposes of the signature of this amendment by Arup Banerji, Regional Director, European Union Countries, on the other part. Having regard to the above-mentioned Administration Agreement no 2017.CE.16.BAT.048 signed on 20 September 2017. Whereas the Donor has informed the Bank of its intention to amend the above-mentioned Administration Agreement for the following reason: the need to include in the activities to be performed by the Bank ten additional countries: Austria, Belgium, Denmark, Finland, France, Germany, Ireland, Luxembourg, Netherland, Sweden, increasing the amount of the EU contribution and thus update the indicative timeline of outputs, the installments and revise the indicative budget for the activities. HAVE AGREED AS FOLLOWS: Article 1 Paragraphs 1 and 3 of the Administration Agreement are modified to read as follows: 1.1. Article 1 of the Administration agreement is replaced by the following Article: The International Bank for Reconstruction and Development (the "Bank") acknowledges that the European Commission (the "Donor ", and together with the Bank, the "Parties" and each a "Party") agrees to provide the sum ofseven million and nine hundred and thirty thousand and eight hundred and sixty five Euros (C7,930,865) (the "Contribution") for the Part II Europe 2020 Programmatic Single-Donor Trust Fund, (No. 072824) (the "Trust Fund') in accordance with the terms of this Administration Agreement. The estimated total budget of the Trust Fund is seven million and nine hundred and thirty thousand and eight hundred and sixty five Euros (C7,930,865). The indicative budget set out in Annex 5 shall be used for monitoring purpose only and shall not be binding. 1.2. Article 3 of the Administration Agreement is replaced by the following Article: The Donor shall deposit the Contribution in accordance with the following schedule and in the currency specified in Section 1 above ("Contribution Currency") into such bank account designated by the Bank (each amount deposited hereinafter referred to as an "Instalment") upon submission ofa payment request by the Bank: (A) Promptly following countersignature - F 1, 500, 000, -1- (B) E 1, 200,000 subject to the disbursement of 70% of the preceding instalment, (C) E 2,500, 000 subject to the disbursement of 70% of the preceding instalment, (D) 1,500,000 subject to the disbursement of 70% of the preceding instalment (E) 1 900, 000 subject to the disbursement of 70% of the preceding instalment (F) f 330,865 subject to the disbursement of 70% of the preceding instalment. The pe 8oduforbpaymet o the istalment of 7%othprcdns shall be 60 days. The period for payment of the balance shall be 90 days. Article 2 Article 2 of Annex 1 to the Administration Agreement is replaced by the following: 2. Activities: The European Commission's Directorate General for Regional and Urban Policy (DG REGIO) has expressed an interest in ensuring that the Bank provides technical assistance in the framework of the Trust Fund with the specific objective of increasing the availability of comparable indicators on firms'performance and the business environment at the state and sub-national regional levels in selected EU Member States. With this aim, building on the consolidated World Bank Enterprise Surveys (ES) experience, the Bank will collect primary firm-level data to develop comparable indicators covering several aspects of the business environment. This will include: * Collecting primary firm-level data in selected EU countries. Namely, the countries included in the project are: Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Portugal, Romania, Slovakia, Spain and Sweden. * In particular, the survey will cover 120 to 200 firms in each nomenclature of territorial units for statistics (NUTSlor NUTS2) level, depending on the size of the country. The indicative sample size for each country was jointly agreed between DG REGIO and the Bank and any modifications would need to be consulted and agreed between the two parties. The data collected as a result of the activities described above will complement an ongoing effort conducted by the Bank in cooperation with EBRD and EIB to collect ES data for all countries included in the Europe and Central Asia Region as defined by the Bank. Methodology for data collection The Bank will collect data following the ES global methodology as described above. The questionnaire will be tailored to, among others, cover speciic topics ofinterest ofDG REGIO, including state capture and regulations to be agreed with the Bank. The additional questions will be defined in cooperation between the Bank and DG REGIO. -2- For each aspect of the business environment covered by the ES, the Bank will compute key indicators based on survey responses. The indicators will be posted on the ES website and can be disaggregated by sub-groups ofthe population (e.g. industry/region/size); compared across individual countries and groups of countries based on income level or regional location; compared over time for the same country (when previous ES data are available). In order to facilitate public access of information, the survey data will be posted in an anonymized form on the ES website. A brief country profile describing the main results of the survey will be produced and made available on the ES website for each country included in the survey. Table 1: Indicative sample size in the EU countries included in the project Samplel NUTS Nr of aggregated Samplel # interviews Countries level regions NUTS2 region per country FIRST GROUP OF COUNTRIES Bulgaria 2 6 120 720 Croatia 2 2 200 400 Cyprus 2 1 240 240 Czech Rep.* 2 8 4 200 800 Estonia 2 1 360 360 Greece 1 4 150 600 Hungary 2 7 120 840 Italy 1 5 150 750 Latvia 2 1 360 360 Lithuania 2 1 360 360 Malta 2 1 240 240 Portugal** 2 7 150 1050 Romania 2 8 120 960 Slovakia 2 4 120 480 Spain 1 7 150 1050 Total # interviews* 9,210 SECOND GROUP OF COUNTRIES Austria 1 3 200 600 Belgium 1 3 200 600 Denmark 2 5 200 1,000 Finland**** 2 4 200 800 France 1 9 120 1,080 Germany 1 16 120 1,920 Ireland 2 3 200 600 LWembourg 2 1 360 360 Netherlands 1 4 200 800 Sweden 1 3 200 600 Total # interviews* 8,360 * In Czech Rep. NUTS2 will be aggregated in 4 groups based on the following criteria: 1: Praha (Prague) CZ01 and Stfednif echy (Central Bohemia) 2: Jihoz6pad (Southwest) CZO3 and SeverozApad (Northwest) CZO4 3: Severovchod (Northeast) CZ05 and Jihovchod (Southeast) CZO6 4: Stfednf Morava (Central Moravia) CZO7 and Moravskoslezsko CZO8 -3- ** In Portugal the total sample of 1,050 firms will be allocated in 6 groups as the Regiio Aut6noma dos Agores and the Regiio Aut6noma da Madeira will be merged in one single group for the purpose of sample design ***ES data for Poland and Slovenia will be collected as a part of an ongoing effort conducted by the WBG in cooperation with EBRD and EIB. The sample in Poland will include 1,200 firms (200 firms in each NUTS1); and the sample in Slovenia will include 400 firms (200 firms per each NUTS 2). Adding the sample for Poland and Slovenia will bring the number of interviews for the FIRST GROUP OF COUNTRIES to a total of 10,810 **** excl. Aland Indicative outputs and timeline (for each round of measurement) Activities Outputs Timfame Amend the existing Effectiveness agreement signed PREPARATORY ACTIVITIES Preparatory phase including: * Finalization of the questionnaire * Procurement to hire consulting completed firms for data collection FIRST GROUP OF COUNTRIES Organization of the fieldwork * Acquisition of sampling frames * Finalization of sample design * Finalization of the script for completed computer assisted data collection * Organization of training sessions for local data collection teams Preparatory phase including: * Finalization of the questionnaire * Procurement to hire consulting E + 3 months firms for data collection SECOND GROUP OF COUNTRIES Organization of the fieldwork * Acquisition of sampling frames * Finalization of sample design * Finalization of the script for E + 6 months computer assisted data collection Organization of training sessions for local data collection teams DATA COLLECTION Training sessions Completed FIRST GROUP OF Fieldwork E+6 COUNTRIES * Actual data collection in the 10 countries * Quality control I Training sessions E + 9 months -4- Activities Outputs Timeframe SECOND GROUP Fieldwork E + 21 months OF COUNTRIES * Actual data collection in the 10 countries * Quality control POST DATA COLLECTION Post data collection activities including E+ 11 FIRST GROUP OF * Computation of indicators COUNTRIES * Finalization of the country profiles * Publication of the data Post data collection activities including E + 23 months SECOND GROUP * Computation of indicators OF COUNTRIES * Finalization of the country profiles * Publication of the data Article 3 Section 6.1 of the Annex 2 to the Administration Agreement is replaced by the following: "It is expected that the funds deposited in the Trust Fund will be fully disbursed by the Bank by December 31, 2020 (the "End Disbursement Date"). The Bank shall only disburse funds deposited in the Trust Fund for the purposes of this Administration Agreement (other than returns to Donor) after such date to the extent such date is changed in accordance with amendments made to the Administration Agreement(s) ofthe Donor. Following the End Disbursement Date, the Bank shall return any remaining balance of the Trust Fund to the Donor in the Holding Currency in the manner specified in its respective Administration Agreement on a pro rata basis with regard to the totalfunds deposited in the Trust Fund by such Donor relative to the totalfunds deposited in the Trust Fund by the Donor, all calculated as Holding Currency amounts. Article 4 Annex 5 'Indicative Budget' to the Administration Agreement is replaced by the Annex 5 attached to this amendment. Article 5 All other terms and conditions of the Agreement, except as amended herein, remain unchanged. Article 6 The present amendment shall form an integral part of the Administration Agreement. It shall enter into force on the date on which it is signed by the last party. -5- SIGNATURES For the Bank, For the Donor, Arup Banerji Eric von Breska Regional Director Director European Union DG REGIO Signature: Signature: Date: pZO, 239 Date: CLA. A QOAS In duplicate in English. -6- ANNEX 5 INDICATIVE BUDGET FOR THE ACTIVITIES SET FORTH IN ANNEX 1 TO THIS ADMINISTRATION AGREEMENT Expenditure Category Amount in Euro Staff and individual consultant services 390,000 Cost of travel 76,000 Cost of training and workshop 100,000 Other services including translation 6,968,322 Sub-total 7,534,322 Administration fee (5%) 396,543 Total 7,930,865 The amount estimated for personnel is calculated taking into account different levels of expertise estimated to be required for carrying out the activities described in Annex 1. The World Bank Group entity may transfer amounts between categories of the indicative budget. This does not require an amendment of the Administration Agreement if the Action is carried out as described in the Annex 1. -7-