[ OFFICIAL THE Level 19, 14 Martin Place O LOUMI SYDNEY NSW 2000 WORLD AUSTRALIA BANK Telephone (61-2) 9223 7773 Franz R Drees-Gross Country Director Timor-Leste, Papua New Guinea & Pacific Islands East Asia and Pacific Region January 15, 2013 Honourable Minister Rick Nelson Houenipwela Minister of Finance and Treasury Ministry of Finance and Treasury P.O. Box 26 Honiara, Solomon Islands Solomon Islands: PRIF Multi-Donor Trust Fund to prepare the Tina River Hydropower Development Project- Grant No. TF096372 Letter of Amendment Honourable Minister: We refer to the Grant Agreement (the "Agreement") for the preparation of the Tina River Hydropower Development Project (the "Project") dated March 18, 2010, as amended on December 20, 2011, between the Solomon Islands (the "Recipient") and the International Bank for Reconstruction and Development and the International Development Association (collectively, the "World Bank"), acting as administrator of grant funds provided under the Pacific Region Infrastructure Facility ("PRIF") multi-donor trust fund. We proposed to amend the Agreement to increase the amount of available Grant funds by an additional one million two hundred twenty two thousand United States dollars (US$ 1, 222,000) and extend the closing date to June 30, 2014. The increase in Grant funds reflects additional contributions received from PRIF. 1. The first paragraph of the Agreement is amended by revising the aggregate value of the Grant funds not to exceed two million nine hundred fifteen thousand and nine hundred sixty eight United States dollars (US$ 2,915,968) ("Grant") on the terms and conditions set forth or referred to in said Agreement. 2. The table in paragraph 3.-1 of the Annex to the Agreement is replaced by the table attached below Hon. Rick Nelson Houenipwela 2 January 15, 2013 Category Amount of the Grant Percentage of Allocated Expenditures to be (expressed in USD) Financed (inclusive of Taxes) Goods, Consultants' 2,915,968 100% Services, and Incremental Operating Costs TOTAL AMOUNT 2,915,968 3. The revised Closing Date, as per Section 3.03 of the Agreement, is June 30, 2014. Except as specifically indicated in this amendment letter, all terms and conditions of the Grant Agreement, as amended, shall remain in full force and effect. This Letter of Amendment shall become effective on the date of the Recipient's countersignature. Sincerely, Franz R. Drees-Gross Country Director Timor-Leste, Papua New Guinea and Pacific Islands East Asia and Pacific Region AGREED: SOLOMON ISLANDS By Authorized Representative Name Title Date