THE WORLD BANK I BANK DUNIA OFFICIAL q1o9/ Stefan G. Koeberle D G M N ~ / Country Director, Indonesia DOCUMENS Letter No. CD-195/PNPM/VI/2012 June 22, 2012 Mr. Rahmat Waluyanto Director General of Debt Management Ministry of Finance Jalan Lapangan Banteng Timur 2-4 Jakarta 10710 Dear Mr. Waluyanto: Re: Indonesia: Amendment No. 2 to the PNPM Support Facility Trust Fund (PSF) - PNPM Generasi Project - TFO97410 (Second Additional Financing Amendment) I refer to the grant agreement ("Original Grant Agreement"), dated August 16, 2010 as amended through June 6, 2011 (the "First Additional Financing Amendment"), between the Republic of Indonesia (the "Recipient") and the International Bank for Reconstruction and Development (the "World Bank") acting as administrator of grant funds under the Support Facility for the National Program for Community Empowerment ("PSF") (TF070967 and TFO71562), for the PNPM Generasi Project (the "Project"). The Project provides grant financing for the Recipient's Program for National Community Empowerment, or Program Nasional Pemberdayaan Masyarakat Mandiri, ("PNPM") related to health and education-related activities under the PNPM Program for a Bright and Healthy Generation, or PNPM Mandiri Perdesaan Generasi Sehat dan Cerdas) ("PNPM Generasi"). The Grant Agreement provided for a grant in the amount of ten million two hundred thousand United States Dollars (US$10,200,000) (the "Original Grant") financed out of PSF TF070967. The First Additional Financing Amendment provided for an additional grant in the amount of twenty eight million one hundred twenty three thousand United States Dollars (US$28,123,000), also financed out of PSF TF070967 (the "First Additional Financing Grant"). I refer also to: (i) the letter from the Ministry of Finance dated June 13, 2012, requesting additional financing in the amount of thirty five million United States Dollars (US$35,000,000) to be financed out of PSF TF070967 to support Project activities in the existing Kecamatan and an additional 50 Kecamatan together with related amendments and an extension of the Closing Date; and (ii) the endorsement of the PSF Joint Management Committee on April 10, 2012 for the requested second additional financing. The World Bank has considered the request, and on the basis of the endorsement of the PSF Joint Management Committee described above, agrees to amend the Grant Agreement as set out below (the "Second Additional Financing Amendment"). Capitalized terms used but not defined in this Second Additional Financing Amendment have the meanings given to them in the Grant Agreement, as amended. Except as specifically provided for in this agreement, all of the terms and conditions set out in the Grant Agreement, as amended by the First Additional Financing Amendment, shall apply to this Second Additional Financing ISEB Tower 2, JI. Jend. Sudirman Kay. 52-53, Jakarta 12190 * Telephone: (62-21) 5299 3000 * Facsimile: (62-21) 5299 3110 P.O. Box 1324/JKT, Jakarta 10013 * Telex: IBRDIA 60086 * Headquarters: The World Bank, Washington DC, USA Mr. Rahmat Waluyanto 2 of 12 June 22, 2012 Ministry of Finance Amendment. References to "Grant" in the Grant Agreement shall, except as the context otherwise requires, include the Original Grant, the First Additional Financing Amendment and this Second Additional Financing Amendment. References to "this Agreement" shall mean the Grant Agreement together with the First Additional Financing Amendment and this Second Additional Financing Amendment. A. Provision of the Second Additional Financing Grant 1. The World Bank agrees to extend to the Recipient on the terms and conditions referred to in the Grant Agreement, as amended by the First Additional Financing Amendment and this Second Additional Financing Amendment, an additional financing grant (the "Second Additional Financing Grant") in an amount not to exceed thirty five million United States Dollars (US$35,000,000) to assist in financing the Project. The total Grant amount, as of the date of this Second Additional Financing Amendment, including the Original Grant, the First Additional Financing Grant, and this Second Additional Financing Grant, shall not exceed seventy three million three hundred twenty three thousand United States Dollars (US$73,323,000). 2. This Grant is funded out of the Support Facility for the National Program for Community Empowerment ("PSF") (TF070967) for which the World Bank receives periodic contributions from the Donors. In accordance with Section 3.02 of the Standard Conditions (as defined below), the World Bank's payment obligations in connection with this Agreement are limited to the amount of funds made available to it by the Donors under the abovementioned trust fund, and the Recipient's right to withdraw the Grant proceeds is subject to the availability of such funds. B. Extension of the Closing Date. The Bank has established December 31, 2013 as the later date for the purposes of paragraph 2 of Section IV.B of Schedule 2 to the Grant Agreement. C. Amendments Reflecting the Terms and Conditions of the Second Additional Financing Grant 1. Standard Conditions. Section 1.01 of the Grant Agreement, as amended by paragraph 3 of the First Additional Financing Amendment, and as such Section 1.01 applies to the Second Additional Financing Grant, is amended by replacing the date of the Standard Conditions of "July 31, 2010", with the date of the current Standard Conditions of "February 15, 2012". 2. Schedule 2 and Appendix. (a) The Recipient and the World Bank agree that, as of and from the date of countersignature by the Recipient of a copy of this Second Additional Financing Amendment, following receipt by the World Bank of such countersigned copy: Schedule 2 and the Appendix to the Original Grant Agreement, as amended by the First Additional Financing Amendment, are further amended and restated in their entirety as set out in Attachment I and Attachment 2, respectively, to this Second Additional Financing Amendment. ISEB Tower 2, JI. Jend. Sudirman Kay. 52-53, Jakarta 12190 * Telephone: (62-21) 5299 3000 * Facsimile: (62-21) 5299 3110 P.O. Box 1324/JKT, Jakarta 10013 * Telex: IBRDIA 60086 * Headquarters: The World Bank, Washington DC, USA Mr. Rahmat Waluyanto 3 of 12 June 22, 2012 Ministry of Finance (b) Except as provided in such Attachments to this Second Additional Financing Amendment, the terms and conditions set out or referred to in the Original Grant Agreement, as amended by the First Additional Financing Amendment, apply to the Project until the date of countersignature by the Recipient of this Second Additional Financing Amendment and receipt by the World Bank of such countersigned copy. (c) The amendment and restatement in such Attachments recognize that, while the Original Grant Agreement incorporated by reference the arrangements for the Third National Program for Community Empowerment set out in the Loan Agreement, dated July 9, 2010, between the Republic of Indonesia, as Borrower, and the Bank (PNPM Rural III Loan Agreement - Loan Number 7867), current PNPM operations, including the Project, now follow the adjustments made for the Fourth National Program for Community Empowerment set out in the Loan Agreement, dated July 27, 2011, between the Borrower and the Bank (PNPM Rural IV Loan Agreement - Loan Number 8079). Please confirm your agreement to the foregoing by signing and dating all three enclosed copies of this letter in the space provided and returning one signed copy to us. The above amendment will become effective as of the date of the later date of countersignature of this letter by the Recipient. Sincerely yours, Stefan G. Koeberle Country Director, Indonesia CONFIRMED: REPUBLIC OF INDONESIA By: Name: Rahmat Waluyant. Title: DG ef Debt Management Date: July , 2012 ISEB Tower 2, J. Jend. Sudirman Kay. 52-53, Jakarta 12190 * Telephone: (62-21) 5299 3000 * Facsimile: (62-21) 5299 3110 PO. Box 1324/JKT, Jakarta 10013 * Telex: IBRDIA 60086 * Headquarters: The World Bank, Washington DC, USA Mr. Rahmat Waluyanto 4 of 12 June 22, 2012 Ministry of Finance ATTACHMENT 1 to Amendment No. 2 to the PNPM Support Facility Trust Fund (PSF) - PNPM Generasi Project - TF097410 (Second Additional Financing Amendment) AMENDMENT AND RESTATEMENT OF SCHEDULE 2 TO THE GRANT AGREEMENT SCHEDULE 2 Project Execution Section I. Institutional and Implementation Arrangements A. Provisions of the PNPM Rural IV Loan Agreement Applicable to the Project 1. Incorporation by Reference. The provisions of the PNPM Rural IV Loan Agreement which are incorporated by reference in this Agreement constitute an integral part of this Agreement and shall remain in full force and effect notwithstanding the closing date of the PNPM Rural IV Loan Agreement, which may occur prior to the Closing Date. 2. Modifications. Unless the context otherwise requires, in provisions of the PNPM Rural IV Loan Agreement which are incorporated by reference in this Agreement: (a) the term "this Annex" shall be read as "Annex 1 to Schedule 2 to the PNPM Rural IV Loan Agreement"; (b) the term "Bank" shall be read as "World Bank"; (c) the term "Borrower" shall be read as "Recipient"; (d) the term "Eligibility Criteria" shall be read as "Eligibility Criteria and Generasi Eligibility Criteria"; (e) the term "Kecamatan Grant" shall be read as "Generasi Kecamatan Grant"; (f) the terms "Loan" and "Loan Account" shall be read as "Grant" and "Grant Account"; (g) the terms "any Pilot and Special Program" and "such Pilot and Special Program" shall be read as "this Project"; (h) the term "this Schedule" shall be read as "Schedule 2 to the PNPM Rural IV Loan Agreement"; and (i) the terms "any Supplemental Manual", "any applicable Supplemental Manual", "each Supplemental Manual" and "such Supplemental Manual" shall be read as "the PNPM Generasi Manual Supplement". 3. Except as may be otherwise agreed in writing between the Recipient and the World Bank, any amendments made by written agreement between the Recipient and the World Bank to any of the provisions of the PNPM Rural IV Loan Agreement which are incorporated by reference in this Agreement shall automatically constitute a corresponding amendment to such provisions in this Agreement. ISEB Tower 2, JI. Jend. Sudirman Kay. 52-53, Jakarta 12190 * Telephone: (62-21) 5299 3000 * Facsimile: (62-21) 5299 3110 P.O. Box 1324/JKT, Jakarta 10013 * Telex: IBRDIA 60086 * Headquarters: The World Bank, Washington DC, USA Mr. Rahmat Waluyanto 5 of 12 June 22, 2012 Ministry of Finance B. Institutional Arrangements 1 . The institutional arrangements described in Section I.A of Schedule 2 to the PNPM Rural IV Loan Agreement constitute an integral part of this Agreement and are incorporated by reference herein. 2. In addition to the institutional arrangements set out in the preceding paragraph 1, the Recipient shall: (a) at the National level, (i) maintain, until the completion of the Project, a dedicated PNPM Generasi Secretariat, with a mandate, staff composition, filled staff positions and terms of reference acceptable to the Recipient and the World Bank, to be responsible for the management and monitoring of the Project; (ii) ensure that the PNPM Generasi Secretariat shall be provided with adequate resources, and supported by qualified personnel in adequate numbers as needed to accomplish the objectives of the Project; (iii) ensure that the appointment letter (surat keputusan) for the PNPM Generasi Secretariat is issued in a timely manner in each fiscal year of Project implementation; and (iv) ensure that the Project is supported by National Specialists, in such numbers and with such terms of reference and qualifications as may be acceptable to the Recipient and the World Bank, who shall oversee the quality of Project implementation in the Provinces and shall report to the National Management Consultant Team Leader under the PNPM Rural IV Loan Agreement; (b) at the Province level, (i) appoint Provincial Specialists for the Project in such numbers and with such terms of reference and qualifications as may be acceptable to the Recipient and the World Bank, to oversee the quality of Project implementation in each Province; (ii) ensure that such Provincial Specialists report to the respective Provincial Coordinator under the PNPM Rural IV Loan Agreement; and (iii) ensure that the appointment letter (surat keputusan) for each Provincial Satker identifies a person responsible for Project implementation; (c) at the Kabupaten level, (i) appoint an additional Facilitator and financial management consultant for the Project in each Kabupaten to work within the same team as Facilitators provided under the PNPM-Rural IV Loan Agreement, in each case with such terms of reference and qualifications as may be acceptable to the Recipient and the World Bank; and ISEB Tower 2, JI. Jend. Sudirman Kay. 52-53, Jakarta 12190 * Telephone: (62-21) 5299 3000 * Facsimile: (62-21) 5299 3110 PO. Box 1324/JKT, Jakarta 10013 * Telex: IBRDIA 60086 * Headquarters: The World Bank, Washington DC, USA Mr. Rahmat Waluyanto 6 of 12 June 22, 2012 Ministry of Finance (ii) ensure that the appointment letter (surat keputusan) for each Kabupaten Satker identifies a person responsible for Project implementation; and (d) at the Kecamatan level, appoint an additional Facilitator for Project to work within the same team as the Facilitators provided under the PNPM Rural IV Loan Agreement of the Project on such terms of reference and with qualifications as may be acceptable to the Recipient and the World Bank. C. Implementation Arrangements 1 . The implementation arrangements described in Section I.B of Schedule 2 to the PNPM Rural IV Loan Agreement constitute an integral part of this Agreement and are incorporated by reference herein; provided, however, that: (a) in paragraph I thereof, for the purposes of the Project, sub-paragraph (b) of such paragraph 1 shall be read as: "adopt and thereafter apply in implementation of the Project, the PNPM Generasi Manual Supplement, acceptable to the Recipient and the World Bank, giving details of the Generasi Eligibility and Selection Criteria for the selection of Sub-projects and the terms and conditions of governing the Generasi Kecamatan Grants, including the terms and conditions set forth in this Schedule"; and (b) except where explicitly noted in the PNPM Generasi Manual Supplement, the PNPM-Rural Manual, Annexes, and supplements apply to the Project. 2. (a) The Eligibility and Selection Criteria described in paragraphs 1(a), 2, 3, 4, 5 and 7 of Section A of Annex I to Schedule 2 to the PNPM Rural IV Loan Agreement constitute an integral part of this Agreement and are incorporated by reference herein. (b) The Recipient shall ensure that the additional Generasi Eligibility and Selection Criteria shall be at all times acceptable to the Recipient and the World Bank, set out in the PNPM Generasi Manual Supplement and include the list of Project Kecamatan. 3. (a) All paragraphs of Section B of Annex 1 to Schedule 2 to the PNPM Rural IV Loan Agreement, which sets out the Sub-project review and selection process, constitute an integral part of this Agreement and are incorporated by reference herein. (b) The Recipient shall ensure that the additional Sub-project review and selection procedures applicable to the Project shall be at all times acceptable to the Recipient and the World Bank, set out in the PNPM Generasi Manual Supplement and include: commitment to improving selected health and education indicators related to antenatal and maternal care, immunizations, nutrition, and primary and junior secondary school enrolment and attendance. 4. (a) All paragraphs of Section C of Annex 1 to Schedule 2 to the PNPM Rural IV Loan Agreement, which sets out the required terms and conditions of Sub-project Agreements, constitute an integral part of this Agreement and are incorporated by reference herein. ISEB Tower 2, JI. Jend. Sudirman Kay. 52-53, Jakarta 12190 * Telephone: (62-21) 5299 3000 * Facsimile: (62-21) 5299 3110 P.O. Box 1324/JKT, Jakarta 10013 * Telex: IBRDIA 60086 * Headquarters: The World Bank, Washington DC, USA Mr. Rahmat Waluyanto 7 of 12 June 22, 2012 Ministry of Finance (b) The Recipient shall ensure that the additional terms and conditions of Sub-project Agreements applicable to the Project shall be at all times acceptable to the Recipient and the World Bank, set out in the PNPM Generasi Manual Supplement and include: that the Beneficiary shall implement, monitor and evaluate the progress of the Sub- project in accordance with the PNPM Generasi Manual. D. Environmental and Social Safeguards 1. The environmental and social safeguards described in Section I.C of Schedule 2 to the PNPM Rural IV Loan Agreement constitute an integral part of this Agreement and are incorporated by reference herein. E. Anti-Corruption The Recipient shall ensure that the Project is carried out in accordance with the provisions of the Anti-Corruption Guidelines and the Better Governance Action Plan. F. Donor Visibility and Visit 1. The Recipient shall take or cause to be taken all such measures as the World Bank may reasonably request to identify publicly the support of the donors to the PSF for the Project. 2. For the purposes of Section 2.09 of the Standard Conditions, the Recipient shall, upon the World Bank's request, take all measures required on its part to enable the representatives of the donors to the PSF to visit any part of the Recipient's territory for purposes related to the Project. Section II. Project Monitoring, Reporting and Evaluation A. Project Reports; Completion Report 1. The Recipient shall monitor and evaluate the progress of the Project and prepare Project Reports in accordance with the provisions of Section 2.06 of the Standard Conditions and on the basis of the indicators agreed with the World Bank. Each Project Report shall cover the period of one calendar quarter, and shall be furnished to the World Bank not later than forty- five (45) days after the end of the period covered by such report. B. Financial Management; Financial Reports; Audits 1. The Recipient shall ensure that a financial management system is maintained in accordance with the provisions of Section 2.07 of the Standard Conditions. 2. The Recipient shall ensure that interim unaudited financial reports for the Project are prepared and furnished to the World Bank not later than forty-five (45) days after the end of each calendar quarter, interim unaudited financial reports for the Project covering the quarter, in form and substance satisfactory to the World Bank. ISEB Tower 2, J. Jend. Sudirman Kay. 52-53, Jakarta 12190 * Telephone: (62-21) 5299 3000 * Facsimile: (62-21) 5299 3110 P.O. Box 1324/JKT, Jakarta 10013 * Telex: IBRDIA 60086 * Headquarters: The World Bank, Washington DC, USA Mr. Rahmat Waluyanto 8 of 12 June 22, 2012 Ministry of Finance 3. The Recipient shall have its Financial Statements audited in accordance with the provisions of Section 2.07(b) of the Standard Conditions. Each audit of the Financial Statements shall cover the period of one (1) fiscal year of the Recipient. The Recipient shall ensure that the audited Financial Statements for each such period shall be: (a) furnished to the World Bank not later than six (6) months after the end of such period; and (b) made publicly available in a timely fashion and in a manner acceptable to the World Bank. Section III. Procurement A. General 1. Goods, Works and Non-consulting Services. All goods, works and non-consulting services required for the Project and to be financed out of the proceeds of the Grant shall be procured in accordance with the requirements set forth or referred to in Section I of the Procurement Guidelines, and with the provisions of this Section. 2. Consultants' Services. All consultants' services required for the Project and to be financed out of the proceeds of the Grant shall be procured in accordance with the requirements set forth or referred to in Sections I and IV of the Consultant Guidelines and with the provisions of this Section. 3. Definitions. The capitalized terms used below in this Section to describe particular procurement methods or methods of review by the Bank of particular contracts refer to the corresponding method described in Sections II and III of the Procurement Guidelines, or Sections II, III, IV and V of the Consultant Guidelines, as the case may be. B. Particular Methods of Procurement of Goods, Works and Non-consulting Services 1. International Competitive Bidding. Except as otherwise provided in paragraph 2 below, goods, works and non-consulting services shall be procured under contracts awarded on the basis of International Competitive Bidding. 2. Other Methods of Procurement of Goods, Works and Non-consulting Services. The following methods, other than International Competitive Bidding, may be used for the procurement of goods, works and non-consulting services which are specified in the Procurement Plan: (a) National Competitive Bidding, subject to the following additional procedures set out in Annex 2 to Schedule 2 to the PNPM Rural IV Loan Agreement; (b) Shopping; (c) Direct Contracting; and (d) Community Participation using procurement procedures in the Operations Manual acceptable to the World Bank, as amended from time to time with the World Bank's prior written concurrence. C. Particular Methods of Procurement of Consultants' Services 1. Quality- and Cost-based Selection. Except as otherwise provided in paragraph 2 below, consultants' services shall be procured under contracts awarded on the basis of Quality- and Cost-based Selection. 2. Other Methods of Procurement of Consultants' Services. The following methods, other than Quality- and Cost-based Selection, may be used for the procurement of consultants' services for those assignments which are specified in the Procurement Plan: (a) Quality ISEB Tower 2, JI. Jend. Sudirman Kay. 52-53, Jakarta 12190 * Telephone: (62-21) 5299 3000 * Facsimile: (62-21) 5299 3110 RO. Box 1324/JKT, Jakarta 10013 * Telex: IBRDIA 60086 * Headquarters: The World Bank, Washington DC, USA Mr. Rahmat Waluyanto 9 of 12 June 22, 2012 Ministry of Finance Based Selection; (b) Selection based on Consultants' Qualifications; (c) Least Cost Selection; (d) Selection under a Fixed Budget; (e) Single-source selection of consulting firms; (f) Procedures set forth in paragraphs 5.2 and 5.3 of the Consultant Guidelines for the Selection of Individual Consultants; and (g) Single- source procedures for the Selection of Individual Consultants. D. Review by the World Bank of Procurement Decisions The Procurement Plan shall set forth those contracts which shall be subject to the World Bank's Prior Review. All other contracts shall be subject to Post Review by the World Bank. Section IV. Withdrawal of Grant Proceeds A. General 1. The Recipient may withdraw the proceeds of the Grant in accordance with the provisions of: (a) Article III of the Standard Conditions; (b) this Section; and (c) such additional instructions as the World Bank may specify by notice to the Recipient (including the "World Bank Disbursement Guidelines for Projects" dated May 2006, as revised from time to time by the World Bank and as made applicable to this Agreement pursuant to such instructions), to finance Eligible Expenditures as set forth in the table in paragraph 2 below. 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 Percentage of of the Grant Expenditures to be Allocated Financed Category (expressed in (inclusive of Taxes) USD) (1) Generasi Kecamatan Grants 100% of Generasi 60,733,000 Kecamatan Grant amount disbursed (2) Consultants services and training and 9,962,000 100% workshops* for facilitation support under Part 2 of the Project (3) Consultants services, non-consultants 2,390,000 100% services, and training and workshops* for training and capacity building under Part 3 of the Project (4) Goods and incremental operating costs* 238,000 100% TOTAL AMOUNT 73,323,000 ISEB Tower 2, JI. Jend. Sudirman Kay. 52-53, Jakarta 12190 * Telephone: (62-21) 5299 3000 * Facsimile: (62-21) 5299 3110 P.O. Box 1324/JKT, Jakarta 10013 * Telex: IBRDIA 60086 * Headquarters: The World Bank, Washington DC, USA Mr. Rahmat Waluyanto 10 of 12 June 22, 2012 Ministry of Finance *For the purposes of this Table: (i) "training and workshops" means Project-related training and workshops conducted in the territory of the Recipient, including purchase and publication of materials, rental of facilities, course fees, and travel and subsistence of trainees; (ii) "non- consultants services" means the reasonable cost of services, including printing, arising under the Project and procured in accordance with the Procurement Guidelines; and (iii) "incremental operating costs" means reasonable costs arising under the Project on account of local contractual support staff salaries; travel and other travel-related expenditures; equipment rental and maintenance; vehicle operation, maintenance and repair; office rental and maintenance; materials and supplies; and utilities and communications expenses, but excluding salaries and honoraria of officials and staff of the Recipient. B. Withdrawal Conditions; Withdrawal Period 1. Notwithstanding the provisions of Part A of this Section no withdrawal shall be made for payments made prior to the date of the Original Grant Agreement. 2. The Closing Date referred to in Section 3.06 (c) of the Standard Conditions is December 31, 2013. ISEB Tower 2, J. Jend. Sudirman Kay. 52-53, Jakarta 12190 * Telephone: (62-21) 5299 3000 * Facsimile: (62-21) 5299 3110 P.O. Box 1324/JKT, Jakarta 10013 * Telex: IBRDIA 60086 * Headquarters: The World Bank, Washington DC, USA Mr. Rahmat Waluyanto 11 of 12 June 22, 2012 Ministry of Finance ATTACHMENT 2 to Amendment No. 2 to the PNPM Support Facility Trust Fund (PSF) - PNPM Generasi Project - TF097410 (Second Additional Financing Amendment) AMENDMENT AND RESTATEMENT OF APPENDIX - DEFINITIONS 1. The following capitalized terms have the meanings set out below. (a) "Directorate for Empowerment of Community Social and Cultural Institutions" means the Directorate for Empowerment of Community Social and Cultural Institutions (Pemberdayaan Adat dan Sosial Budaya Masyarakat) in the Ministry of Home Affairs, or any successor thereto. (b) "Generasi Eligibility and Selection Criteria" means the additional eligibility and selection criteria for Generasi Kecamatan Grants made using the proceeds of the Grant and meeting the requirements set out in the PNPM Generasi Manual and paragraph 2 of Section I.C of Schedule 2 to this Agreement. (c) "Generasi Kecamatan Grant" means a grant made or to be made out of the proceeds of the Grant for the purposes of Part I of the Project and meeting the requirements set out in this Agreement, the Project Manual and the PNPM Generasi Manual, and "Generasi Kecamatan Grants" means more than one Generasi Kecamatan Grant. (d) "National Specialist" means a technical or social specialist financed by the proceeds of the Grant and assigned to work with Villages to facilitate their participation in Generasi activities under the Project and reporting to the National Management Consultant Team Leader, and "National Specialist" means more than one National Specialist. (e) "PNPM Rural IV Loan Agreement" means the Fourth National Program for Community Empowerment in Rural Areas, which is the subject of a Loan Agreement, between the Republic of Indonesia and the International Bank for Reconstruction and Development dated July 27, 2011 (Loan No. 8079-ID), as the same may be amended from time to time in accordance with its terms. (f) "PNPM Generasi" means PNPM Mandiri Perdesaan Generasi Sehat dan Cerdas ("PNPM Mandiri Perdesaan Generasi"), or PNPM for a Healthy and Bright Generation, the community development activities of PNPM focused on health and education-related millennium development goals which are the subject of this Project. (g) "PNPM Generasi Manual Supplement" means the manual, dated May 10, 2012 2meeting the requirements of paragraph 1(a) of Section I.C of Schedule 2 to this Agreement, as such manual may be amended or updated from time to time with the prior written agreement of the World Bank and the Recipient. (h) "PNPM Generasi Secretariat" means Secretariat established in the Directorate for Empowerment of Community Social and Cultural Institutions (Pemberdayaan Adat dan Sosial Budaya Masyarakat Sosbud) and referred to in paragraph 2(a) of Attachment I to Amendment No. 3 to the Grant Agreement. 2 Drafting note for GOI: The manual must be finalized at or prior to negotiations. ISEB Tower 2, JI. Jend. Sudirman Kay. 52-53, Jakarta 12190 * Telephone: (62-21) 5299 3000 * Facsimile: (62-21) 5299 3110 RO. Box 1324/JKT, Jakarta 10013 * Telex: IBRDIA 60086 * Headquarters: The World Bank, Washington DC, USA Mr. Rahmat Waluyanto 12 of 12 June 22, 2012 Ministry of Finance (i) "Procurement Plan" means the Recipient's procurement plan for the Project, dated December 13, 2011, and referred to in paragraph 1.16 of the Procurement Guidelines and paragraph 1.24 of the Consultant Guidelines, as the same shall be updated from time to time in accordance with the provisions of said paragraphs. (j) "Provincial Specialist" means a technical or social specialist financed by the proceeds of the Grant and assigned to work at the Province level with villages to facilitate their participation in Generasi activities under the Project, and reporting to the Provincial Coordinator, and "Provincial Specialist" means more than one Provincial Specialist. 2. The capitalized terms used in the sections of the PNPM Rural IV Loan Agreement which have been incorporated by reference into this Agreement have the meanings given to them in the Appendix to the PNPM Rural IV Loan Agreement, with the modifications set out in paragraph 2 of Schedule 2 to this Agreement. ISEB Tower 2, J. Jend. Sudirman Kay. 52-53, Jakarta 12190 * Telephone: (62-21) 5299 3000 * Facsimile: (62-21) 5299 3110 P.O. Box 1324/JKT, Jakarta 10013 * Telex: IBRDIA 60086 * Headquarters: The World Bank, Washington DC, USA