THE WORLD BANK I BANK DUNIA Stefan G. Koeberle Country Director, Indonesia OFFICIAL Letter No. CD-168/PAMSIMAS/VI/2012 D M S June 5, 2012 Ms. Jacqui De Lacy Head of AusAID Indonesia AusAID Australian Embassy Jakarta I. HR Rasuna Said Kay. C 15-16 Jakarta 12940 Indonesia Dear Ms. De Lacy: zv C Re: Amendment No. 3 to the Administration Agreement (AusAID Agreement No. 50416 and World Bank TFO 71266) between the Government of Australia, acting through the Australian Agency for International Development and the International Bank for Reconstruction and Development /International Development Association for the Support for the Third Water Supply and Sanitation for Low Income Communities Project (PAMSIMAS) 1. We refer to the Administration Agreement between the Government of Australia, acting through the Australian Agency for International Development, (the "Donor") and the International Bank for Reconstruction and Development (the "Bank"), regarding the Support for the Third Water Supply and Sanitation for Low Income Communities Project (PAMSIMAS) Trust Fund (the "Trust Fund") (TFO71266) dated May 18, 2009, and amended on June 4, 2010 and December 7, 2011 (the "Administration Agreement"). 2. We are pleased to acknowledge, on behalf of the Bank, the intention of the Donor to make a supplemental contribution to the Trust Fund in the amount of fifteen million Australian Dollars (AUDI 5,000,000) (the "Supplemental Contribution"). With this Supplemental Contribution, the total amount allocated by the Donor to the Trust Fund will now aggregate to fifty four million five hundred thousand Australian Dollars (AUD54,500,000) (the "Contribution"). 3. The Donor shall deposit the Supplemental Contribution into such bank account designated by the Bank, following submission of a payment request by the Bank, in installments in accordance with the following schedule: - promptly following countersignature of this Agreement by the Donor AUDI1,000,000 - on or before July 30, 2012 AUD4,000,000 4. When making such deposit, the Donor shall instruct its bank to include in its payment details information (remittance advice) field of its SWIFT payment message, information indicating: the amount paid, that the payment is made by the Donor for the TF 071266 Support for the Third Water Supply and Sanitation for Low Income Communities Project (PAMSIMAS), and the date of the deposit. In addition the Donor shall provide a copy of the deposit instruction to the Bank's Accounting Trust Funds Division by e-mail sent to tfremitadvice@o,worldbank.org or by fax sent to (202) 614-1315. 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 Ms. Jacqui De Lacy 2 of 4 June 5, 2012 Australian Agency for International Development 5. Immediately upon receipt of the Contribution funds, the Bank will convert such funds into United States Dollars. 6. Furthermore, notwithstanding Article 6 (Cost Recovery) of the Administration Agreement, in order to assist in the defrayment of the costs of administration and other expenses incurred by the Bank under this Agreement, the Bank may, following deposit of the Supplemental Contribution by the Donor, deduct from the Supplemental Contribution and retain for the Bank's own account an amount equal to two percent (2%) of the Supplemental Contribution. In addition, costs for program administration up to a maximum of 1.6% of the Contribution will be charged to the Trust Fund on an actual basis. If the contributions increase beyond what was originally expected at the time of counter- signature of this Amendment, and the administrative costs increase as a result, the Donor acknowledges that an additional administrative fee may be applied to such new contributions. 7. Additionally, pursuant to recent discussions between the Bank and the Donor, the Bank proposes to amend Section 3.01 of Article 3 of the Administration Agreement to extend the end disbursement date as follows: "Section 3.01 The Contribution funds may be used to finance expenditures for the Project commencing on the date of this Agreement and ending on September 30, 2014. The Bank may make disbursements of the Contribution funds for up to six (6) months after such latter date for expenditures incurred on or before such date, in accordance with the Bank's applicable policies and procedures. The Bank shall only disburse the Contribution funds after March 31, 2015 with the written approval of the Donor." 8. Additionally, pursuant to recent discussions between the Bank and the Donor, the Bank proposes to amend Section 5.01 of Article 5 of the Administration Agreement to reflect the new office responsible for coordination for the Donor as follows: Section 5.01 The offices responsible for coordination of all matters related to this Administration Agreement are: For the Donor: For the Bank: Anne Joselin George Soraya Manager, Infrastructure Lead Municipal Engineer Australian Agency for International World Bank Office Jakarta Development Jakarta Stock Exchange Building, Tower 2 Australian Embassy Jl. Jenderal Sudirman Kay. 52-53 Jl. H.R. Rasuna Said Kay C 15-16 Jakarta 12190 Indonesia Jakarta 12940 Indonesia Tel: +62 21 5299 3058 Tel: +62 21 2922 6872 Fax: +62 21 5299 3111 Fax: +62 21 2902 1474 E-mail: gsorayaa)worldbank.org E-mail: anne.joselina'ausaid.gov.au 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 Ms. Jacqui De Lacy 3 of4 June 5, 2012 Australian Agency for International Development 9. Additionally, pursuant to recent discussions between the Bank and the Donor, the Bank proposes to amend Component I in Section I (Activities) of the Annex to the Administration Agreement to reflect an increase in the number of community facilitators trained as follows: "Component 1- Community Empowerment and Local Institutional Development Provision of technical assistance to support the implementation of Parts A and B of the Original Project, including: (a) program-specific training to about 2,000 community facilitators in the field, through the selection recruitment, and training of a cadre of central trainers, headed by a master trainer responsible for the training of about 52 provincial trainers, who in turn deliver the training to the community facilitators; (b) the provision of technical training expertise to support the training of trainers in Methodology for Participatory Assessment/Participatory Hygiene and Sanitation Transformation (MPA/PHAST) and Community Led Total Sanitation Program (CLTS). Component I will be Recipient-Executed." 10. Additionally, pursuant to recent discussions between the Bank and the Donor, the Bank proposes to amend Component 2 in Section I (Activities) of the Annex to the Administration Agreement to reflect support for Parts C and D.2 of the Original Project as follows: "Component 2 - Village Incentives Grants Support for the implementation of Parts C and D.2 of the Original Project through the provision of grants to Participating Villages that meet or exceed predetermined project performance criteria based on the achievement of component specific objectives of hygiene, community mobilization and contribution, and water supply and sanitation coverage under a replication program, to be applied to support complementary activities in view of the scaling up and expansion of such replication program. The term "Participating Villages" has the meaning given to it in the Original Project. Component 2 will be Recipient-Executed." 11. Additionally, pursuant to recent discussions between the Bank and the Donor, the Bank proposes to amend Section I (Activities) of the Annex to the Administration Agreement to reflect the addition of a new component, Component 7, as follows: "Component 7 - Bank Executed Activities for Implementation Support Technical assistance to include capacity building service to deepen and strengthen Bank intervention and advice in the area of community empowerment and local government involvement. Component 7 will be Bank-Executed." 12. All other terms of the Administration Agreement shall remain the same. ISEB Tower 2. JL 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 Ms. Jacqui De Lacy 4 of4 June 5. 2012 Australian Agency for International Development 13. It is the Bank's policy to make publicly available the Agreement and any information related thereto, including this Amendment. By confirming below, the Donor consents to disclosure of this Amendment after it has become effective. Please confirm your acceptance to the foregoing, on behalf of the Donor, by signing and dating the two originals, retaining one original for your records and returning the other original to the Bank. Upon receipt by the Bank of the original Amendment countersigned by you, this Amendment will become effective as of the date of the countersignature. Sincerely, INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION Stefan G. Koeberle Country Director, Indonesia CONFIRMED AND AGREED: The Government of Australia acting through the Australian Agency for International Development By: Name: CLE I Title: Ve&AA LNf Date: 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