OFFICIAL THE WORLD BANK h NoTS Tel.: (54-11) 4316-9700 /44 IBRD IDA I woRLoaAsoioup D M Fax: (54-11) 4313-1233 atin America & the Caribbean Ciudad Aut6noma de Buenos Aires June 3, 2019 His Excellency Benigno L6pez Minister of Finance Ministry of Finance Chile 128 Asuncion, Paraguay Re: REPUBLIC OF PARAGUAY: Loan No. 8316-PY (Additional Financing for the Sustainable Agriculture and Rural Development Project) Amendment to the Loan Agreement Excellency: Please refer to the Loan Agreement between the International Bank for Reconstruction and Development (the "Bank") and the Republic of Paraguay (the "Borrower"), dated December 6, 2013 for the above-captioned Project, as amended to date (the "Loan Agreement"). Capitalized terms used in this letter ("Amendment Letter") and not defined herein have the meaning ascribed to them in the Loan Agreement. In response to your letter M.H. No. 257 to the Bank, dated March 18, 2019, and as a result of our recent conversations on the subject, I am pleased to inform you that the Bank concurs with your request and therefore proposes to amend the Loan Agreement as follows: 1. The title of Part 5 of Schedule 1 to the Loan Agreement is hereby amended to read as follows: "Part 5. Project Manazement, Monitoring and Evaluation, and Technical Assistance" 2. The following paragraph (e) is added to Part 5 of Schedule 1 to the Loan Agreement: "(e) Provision of technical assistance to analyze and prepare possible interventions to strengthen community organizations and facilitate access to markets of Small-Scale Farmers and Indigenous Communities within the Project Area." 3. The following Section M is added to Section I of Schedule 2 to the Loan Agreement: "M. Beginning on June 28, 2019, and thereafter throughout Project implementation, the Borrower shall promptly notify the Bank of any 2 incident or accident related to or having an impact on the Project which has, or is likely to have, a significant adverse effect on the environment, the affected communities, the public or workers, including, explosions, spills, any workplace accidents that result in death, serious or multiple injury, pollution, any violent labor unrest, any dispute between the Borrower or security forces (assigned to protect the Project) and local communities, any case of gender-based violence and violence against minors, or any incidents in or related to international waterways. The notification shall include sufficient detail regarding the incident or accident, indicating any measures that have been taken or are planned to be taken to address it, if any (including information provided by any contractor and supervising entity), all in accordance with the Operational Manual." 4. The table in Section IV.A.2 of Schedule 2 to the Loan Agreement is hereby amended to read in its entirety as set forth in Attachment I to this Amendment Letter. Please confirm your agreement with the foregoing amendment by signing and dating this Amendment Letter in the spaces provided below. The provisions set forth in this Amendment Letter shall become effective as of the date of the countersignature and all other provisions of the Loan Agreement, except as amended through this Amendment Letter, shall remain in full force and effect. 3 This Amendment Letter shall be executed in two counterparts, each of which shall be an original. Upon confirmation, please return one fully executed original to us. Please also note that the restructuring paper dated May 31, 2019 will be disclosed on the Bank's external website. Very truly yours, INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By Jesk . ntschel irector Argen na, Paraguay and Uruguay Latin America and the Caribbean Region AGREED: REPUBLIC F P GUAY By: ufhori z resentative Benigne L6pz Name: Ministre Title: __ ___________ __ Dte:2 8 JUN 2019 Date: 4 Attachment I Amount of the Loan Percentage of Expenditures Allocated to be financed Category (expressed in USD) (inclusive of Taxes) (1) Goods, works non-consulting 1,200,000 100% services, consultants' services, Operating Costs and Training and/or Workshops for Part 1 of the Project (2) Goods, works, non-consulting 29,850,000 100% services, consultants' services, Operating Costs and Training and/or Workshops for Part 2 of the Project (3) Goods, works, non-consulting 64,000,000 100% services, consultants' services and Community Grants under Part 3 of the Project (4) Goods, works, non-consulting 800,000 100% services, consultants' services and Training and/or Workshops for Part 4 of the Project (5) Goods, works, non-consulting 3,900,000 100% services, consultants' services, Operating Costs and Training and/or " Workshops for Part 5 of the Project (6) Unallocated 0 (7) Front-end Fee 250,000 Amount payable pursuant to Section 2.03 of this Agreement in accordance with Section 2.07 (b) of the General Conditions TOTAL AMOUNT 100,000,000