OFFMCAL DOCUMENTS The World Bank Hill Park, ppper Hill Road INTERNATIONA. EANK FOR RECONSTRUCTION AND DEVELOPWEN1- . ..o x30577-00100 Tel: (254-20) 3226000 INTERNATIONAi. DEVELOPMENT ASSOCIATION Nairobi, Kenya Fax: (254-20) 3226382 November 27, 2012 Honorable Robinson Njeru G 'thae \4inister of Finance \4inistry of Financ. Treasury Building Nairobi, Kenya Honorable Ministe;: Re: Cr. 46 7-KE (Kenya Youth Empowerment Project) Amendwen to the Financing Agreement We refer to Financing Agree -nent (Agreement) for the above-mentioned Project (3ted May 20, 2010, between the Republic of Kenya (the Recipient) and the International Development Association (the Association). We also refer to your letter dated December 14, 2011 to the AssociatidlA re lues ing a cancellation of Part 1 "Labor Intensive Works and Social Services " of the Project. We are pleased to inforn1 you that the Association concurs with your request and hereby amends the Agreement by: (a) removing Part I of the project from the Project DoscriDtion, (b) removing all references to Part I of this project throughout the Agreement and (c) cancelling the proceeds of the Financing allocated to this part of the prcject, as follows: I. Section 2.01 is amended by deleting the words "thirty eight million seven hundred thousand" and the numbers "3 3,700,000" and are replacing them with "eleven million and twenty thousand" and "11 020,000" respectively. 2. Section 3.01 of the Agreement is amended by deleting the following words "Part 1 of the Project through the Office Df the Prime Minister (OPM) ayd the Implementing Line Ministries" 3. Section 5.01 (b) of the Ngreement is amended by deleting the following words "DPM" and "each of the Imp ementing Line Ministries" and replacing the word "have" w th "has." 4 Section 6.01 of the Agreement is amended by deleting the words "Deputy Prime Minister and Ministe,r for Finance" and replacing them with "Minister responsible for Finance." 5 Section 6.02 of the Agr-ement is amended by deleting the following words "Deputy Prime Minister and" 6. Schedule 1 (Project De;criplion) to the Agreement is revised as follows: H,,ii. Robinson Njeru Githae - 2 - November 27, 2012 (a) Paragraph I is a-nended by deleting the words "increase access to youth targeled temporary employment programs and to" (b) Part I of the Prcject is deleted in its entirety. (c) Part , (b) of the Proj -ct is amended by substituting the words "Parts I and 2" with "Part 2." 7. Section I of Schedule 2 (Implementation Arrangements) to the Agreement is revised as follows: (a) Section LA is amended by deleting the words "OPM" (b) Sections L.A (2) and (3) are deleted in their entirety. (c) Section L.A (4) s renumbered as Section 1.A (2). (d) Section 1.B (5) is deleted in its entirety. (e) Sections 1.C, LD (8), 1.D (9), 1.E, 1.F (10), and 1.F (11) are renumbered as Sections 1.B, 1.C, .D (1), 1.D (2), i.E (1) and i.E (2) respectively. (f) A new section 1.B (2) has been added and reads as follows: " The Recipient shall not later than July 31, 2012 strengthen KEPSA's implementation -apacity by recruiting additional staff comprising a project officer, c ffice assistant and an internship assistant with skills and experience under terms of reference satisfactory to the Association. (g) The new Sectior 1.D is amended by deleting the words "Disclosure of Information and' and Section LD (2) is deleted in its entirety and replaced with th- fol owing: " In Implementing Part 3 (b) of the Project, the Recipient shall ensure that the Project Impl -menting Entity provides the social auditors selected by MOYAs information pertaining to the implementation of Part 2 of the Project and exte it to which this part of the Project meets the requirements of the KYEP Department Operations Manual." (h) Section 1.F (Saf,-guards) is deleted in its entirety. (i) Section G (15) 1Data Management and Auditing) is renumbered as Section 1.F. 8. Section II of Schedule 2 (Project Monitoring, Reporting and Evaluation) to the Agreement is amended as follows: (a) Section II.A.I (z) is amended by renumbering it as Section II.A.1 and deleting the wor is "set forth in sub-paragraph (b) of this paragraph" and replacing them with the words "satisfactory to the Association." (b) Section II.A.1 (1:) is deleted in its entirety. f m. Robinson Njeru Githae - 3 - November 27, 2012 9. The Table ir Section I (Withdrawal of the Proceedings of the Financing) of Schedule 2 to the A areement i: amended as set forth in the attachment to this Agreement. 10. Section IV.B.1 of ScheJule 2 to the Agreement is amended by adding a semi cclon and the letter a ":(a)" aft:-r the words "be made", and deleting the words in paragraph (b) and replacing them with the following: " $650,000 may be made for payments made pricr to the dale of this Agreement, but on or after January 1, 2012 for Operating Costs. 11. The Appendix (Definitions) is amended as follows: (a) Paragraph "a" i! rev sed by deleting the period (.) after the words "October 15, 2006" and adding the following words" and revised in January 2011." (b) Paragraph "b" i:; deleted in its entirety. (c) Paragraph "c" i. now renumbered as paragraph "b". (d) Paragraph "d" i: deleted in its entirety." (e) The former parz graph "e" is now renumbered as paragraph "c". (f) Paragraphs "f" and "g" are deleted in their entirety. (g) Paragraph "h" is now renumbered as paragraph "d". (h) Paragraphs "i" ' j", "k" and "l" are deleted in their entirety. (i) Paragraphs "in" and "n" are renumbered as paragraphs "e" and "f' respectively. (j) Paragraph "o" i!. deleted in its entirety. (k) Paragraph "p" i. renimbered as paragraph "g". (1) Paragraphs "q", "r", "s", and "t" are deleted in their entirety. (in) Paragraphs "u", "v", "w", "x" and "y" are renumbered as paragraphs "h", "'i", "'j'", "k" an[ "l" respectively. (n) The new paragraph I is amended by substituting the words "Parts 1 and 2 of the Project" with "Part 2 of the Project." (o) Paragraph "z" is deleted in its entirety and paragraphs "aa" and "bb" are renumbered as "m" and "n" respectively. (p) Paragraph "cc" and 'dd" are deleted in their entirety. (q) A new paragrap 1 "o" is added and reads as follows: ""Operating Csts" means the reasonable and necessary expenses incur-ed by the Recipient with respect to project implementation, management and monitoring, including salaries and benefits, communication, editing, printing and publication, translation, workshops, vehicle operatio 1 and maintenance, costs of utilities and supplies (rent, telephones, transport, airtime), local travel costs and field trip expenses, and electronic fies for stipends, but excluding any salaries and social charges of the Recip ent's civil or public servants." (r) Paragraphs "cc" and "dd" are deleted in their entirety and paragraphs "ee", "ff" are renumbored as paragraphs "p" and "q" respectively. I- on. Robinson Njeru Githae -4- November 27, 2012 (s) Paragraph "gg' is deleted in its entirety and paragraph "hh" and "ii" are renumbered as paragraphs "s" and "t" respectively. (t) Paragraphs "jj", "kk" and "ll" are deleted in their entirety. (u) Paragraph "mn." is renumbered as "u" and amended by deleting the words "selection of stbprcjects and youth under the KKV program." (v) Paragraph "nn" is renumbered as "y" and substituting the words "Section L.F (10)" with the words Section I.E. (w) Paragraph "oo" "pp " and "qq" are deleted in their entirety. (x) Paragraph "rr" is renumbered as paragraph "v" and (y) Paragraph "ss" is deleted in its entirety. All the terms and cond tions of the Agreement, as amended hereby, shall remain in full force and effect. Please confirm your agreement to the foregoing amendment by signing, dating and returning to us the attached copy of this letter. This amendment will become effective as of date of countersignature upon receipt by the Association of the countersigned copy of this letter. Sincerely, INTERNATIONAL DEVELOPMENT ASSOCIATION Johannes Zutt Country Director for Kenya Africa Region CONFIRMED REPUBLIC OF KENYA B y: C ~ Authorized Representative Ti-.e: _ Date: ______ -l hn. Robinson Njeru Githae - 5 - November 27, 2012 Attachment SCHEDULE 1 Withdriwai of the Proceeds of the Credit 1 . The table below sets forth the Categories of items to be financed out of the proceeds of the Credit, the all )cation of the amounts of the Credit to each Category and the percentage of expenditures for items to be financed in each Category: Amount of the Percentage of Category Credit Expenditures Allocated to be (expressed in Financed SDR) (Inclusive of Taxes) 1.Cancelled amount as of D ,cemriber 14, 2011 for 27,680,000 100% Part I of the Project 2. Goods, works, consultant services , internship 10,080,000 100% stipends and Operating Co:ts for Part 2 of the Project 3. Goods, works, consu tant services and 940,000 100% Operating Costs for Part 3 ofthe Project Subtotal 11,020,000 Original Credit Amount 38,700,000