THE WORLD BANK IBRD * IDA I WORLD BANKGROUP OFFICIAL Tahseen Sayed Regional Director, Caribbean DOCUM ENTS Latin America and the Caribbean Region September 28, 2017 The Honourable Gaston Browne Prime Minister and Minister of Finance Ministry of Finance and Corporate Governance New Government Office Complex Queen Elizabeth Highway St. John's, Antigua and Barbuda Re: Antigua and Barbuda: Loan No. 8269-AG Public and Social Sector Transformation Investment Project Financing Amendment and Cancellation Excellency: We refer to the Loan Agreement ("Loan Agreement") between Antigua and Barbuda ("Borrower") and the International Bank of Reconstruction and Development ("Bank") dated August 14, 2013, for the Public and Social Sector Transformation Investment Project, pursuant to which the Bank has extended the above captioned Loan. We also refer to your letter dated July 19, 2017 requesting the cancellation of an amount of the above-captioned Loan, and to your letter dated August 9, 2017 concurring to close the Project on September 30, 2017. In view of the above and our recent discussions, the Iank proposes to modify the Loan Agreement as follows: (a) advance the Closing Date; (b) reallocate funds between categories of expenditure; and (c) cancel the amount of $7,011,441.32. A. Amendment Accordingly, the Loan Agreement is hereby amended as follows: 1. Paragraph 2 of Section IV.B of Schedule 2 to the Loan Agreement is hereby amended and replaced in its entirety to read as follows: "2. The Closing Date is September 30, 2017." 1818 H Street N.W., Washington, D.C 2()433 Q FAX (202) 522-0742 C Phone (202) 473-1238 Email: tsayed@worldbank.org The Hon. Gaston Browne -2- September 28, 2017 2. The table under Paragraph 2 of Section IV.A of Schedule 2 to the Loan Agreement is hereby amended and replaced in its entirety by Annex 1 to this letter. Please confirm your agreement with the foregoing amendment, on behalf of the Borrower, by signing and dating this letter in the space provided below. This amendment shall be executed in two counterparts each of which shall be an original and one of which shall be returned to us. The provisions set forth in this letter will become effective as of the date of the countersignature, upon receipt by the Bank of one fully executed original of this letter. B. Notifications Furthermore, in accordance with the provisions of Section 7.01 of the General Conditions for Loans, applicable to the Loan Agreement, the Bank hereby cancels, as of July 21, 2017, the amounts allocated to the Categories set forth in Section IV.A.2. of Schedule 2 to the Loan Agreement, as follows: an amount equal to $2,921,236.00 from Category (1); an amount equal to $1,670,317.00 from Category (2); an amount equal to $2,226,993.98 from Category (3); and an amount equal to $192,894.34 from Category (5). All other terms and conditions of the Loan Agreement remain in full force and effect. Please also note that the Restructuring Paper dated September 28, 2017, a copy of which is enclosed herewith, will be disclosed on the Bank's external website as per the Bank's policy on Access to Information. Finally, we would like to inform you that there are advances made to the Designated Account, in the amount of $605,818.50, for which no supporting documentation has been submitted to the Bank. Any unutilized balance from the Designated Account for which supporting documentation has not been submitted, the Borrower shall refund an equivalent amount to the Bank before the Disbursement Deadline Date (January 30, 2018). In accordance with the current practice of the Bank, further submissions of supporting documentation in respect of Eligible Expenditures incurred by the Closing Date (September 30, 2017) and paid or to be paid from the Designated Account must be received by the Bank by close of business on January 30, 2018. Sincerely, INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By Tahseen Sayed The Hon. Gaston Browne -3- September 28, 2017 AGREED: ANTIGUA AND BARBUDA By:0 zed Representa7tie Title: / -' Date: - / Enclosure cc: Senator The Honourable Lennox Weston, Minister of State, Ministry of Finance Mr. Whitfield Harris, Financial Secretary, Ministry of Finance Ms. Rasona Davis, Deputy Financial Secretary, Ministry of Finance Ms. Alison S. Goodwin, Interim Project Coordinator, Project Management Unit Ms. Christine Hogan, Executive Director, The World Bank Group Ms. Peteranne T. Donaldson, Alternate Executive Director, The World Bank Group The Hon. Gaston Browne -3- September 28, 2017 AGREED: ANTIGUA ANP4!rARBUDA THE P By: Autho Representative SEP 29~a Title: ,*r. ,,, Date: 2!7 Enclosure cc: Senator The Honourable Lennox Weston, Minister of State, Ministry of Finance Mr. Whitfield Harris, Financial Secretary, Ministry of Finance Ms. Rasona Davis, Deputy Financial Secretary, Ministry of Finance Ms. Alison S. Goodwin, Interim Project Coordinator, Project Management Unit Ms. Christine Hogan, Executive Director, The World Bank Group Ms. Peteranne T. Donaldson, Alternate Executive Director, The World Bank Group The Hon. Gaston Browne -4- September 28, 2017 Annex 1 Amount of the Loan Percentage of Category Allocated Expenditures to be (expressed in USD) financed (inclusive of Taxes) (1) Consultants' services, non- 443,764.00 100% consulting services and Operating Costs for Parts 1 and 2 of the Project (2) Goods, non-consulting 397,545.64 100% services, works, consultants' services, Training, and Operating Costs under Parts 3, 4(c), 4(d) and 4(e) of the Project (3) Sub-project Expenditures under 481,006.02 100% of Unit Costs Parts 4(a) and 4(b) of the Project incurred pursuant to the corresponding Sub-project Agreements under Parts 4(a) and 4(b) of the Project (4) Goods, non-consulting 1,252,137.36 100% services, consultants' services, Training, Project audits, and Operating Costs under Part 5 of the Project (5) Refund of the Preparation 389,105.66 Amount payable pursuant Advance to Section 2.07 (a) of the General Conditions (6) Front-end Fee 25,000.00 Amount payable pursuant to Section 2.03 of this Agreement in accordance with Section 2.07 (b) of the General Conditions (7) Amount Cancelled (as of July 7,011,441.32 21, 2017) TOTAL AMOUNT 10,000,000.00