The World Bank INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION 1818 H Street N.W. Washington, D.C. 20433 U.S.A. (202) 477-1234 Cable Address: INTBAFRAD Cable Address: INDEVAS CONFORMED COPY January 31, 2003 H.E. Ljerka Maric Minister of Treasury of BiH Institutions Trg Bih 1 71000 Satajevo Bosnia and Herzegovina Re: Japanese Grant for the Preparation of the Social Sector Adjustment Credit II (Grant Number TF026524) Amendment to the Japanese Grant Agreement Excellency: Pursuant to the Request on Reallocation of Components and Activities under the abovereferenced Japanese Grant Agreement (TF026524) between the Bosnia and Herzegovina and the International Development Association (the Association) dated January 19, 2001 and countersigned on January 24, 2001 (the Japanese Grant Agreement) approved by the Government of Japan on October 7, 2002, we are pleased to inform you that the Association has agreed to amend the said Japanese Grant Agreement as follows: 1. Sections (a), (b), (c) and (d) of paragraph 1.1 of the Annex to the Japanese Grant Agreement are amended to read: “(a) Social Assistance (US$160,841); Provision of technical assistance to: (i) develop social and child protection reform policy, including the legal framework; (ii) develop policy and implementation guidelines for collaboration between public and non-governmental organizations (NGOs) and private sectors in provision of social protection and associated services; and (iii) provide support on developing resource allocation mechanisms for social and child protection. (b) Veteran’s benefits (US$85,100); Provision of technical assistance to review and develop with local counterparts proposed amendments to existing veterans’ benefit laws and policies in both Entities of the Recipient. (c) Unemployment Benefits and Social Insurance (US$76,009); Provision of technical assistance to: (i) conduct detailed sustainability analysis of employment programs, simulated under various assumptions on registered unemployment and revenues; and (ii) review of management structure and operational procedures in employment offices and support development of reforms of both as needed. (d) Disability Programs (US$156,900); -2Provision of technical assistance to: (i) prepare a comprehensive review of existing programs, including simulation of their sustainability under various reform and fiscal scenarios; and (ii) review of existing disability assessment and categorization procedures in civilian and military disability programs, develop guidelines which would bring practices into line with international standards.” 2. Attachment to the Japanese Grant Agreement is revised to read: “Consultants' Services 1. Consultants' services shall be procured in accordance with the relevant provisions of Statement 15.00 of the Bank's Administrative Manual, dated December 2002 (the Administrative Manual), Sections I and IV of the "Guidelines: Selection and Employment of Consultants by World Bank Borrowers" published by the Bank in January 1997 and revised in September 1997, January 1999 and May 2002 (the Consultant Guidelines), paragraph 1 of Appendix 1 thereto, Appendix 2 thereto, and the following provisions of this Attachment. 2. Services for disability programs, unemployment benefits and social insurance technical assistance shall be procured under contracts awarded in accordance with the provisions of paragraphs 3.1 and 3.7 of the Consultant Guidelines (Selection Based on Consultants' Qualifications. 3. Services for veterans’ benefits, social assistance and labor market analysis shall be procured under contracts awarded to individual consultants in accordance with the provisions of paragraphs 5.1 through 5.3 of the Consultant Guidelines.” Please confirm your agreement to the foregoing amendment by signing, dating and returning to us the attached copy of this letter. This amendment shall become effective upon our receipt of the countersigned copy of this amendment letter. Sincerely, INTERNATIONAL DEVELOPMENT ASSOCIATION By /s/ Joseph K. Ingram Country Manager Bosnia and Herzegovina Europe and Central Asia Region CONFIRMED: BOSNIA AND HERZEGOVINA By: /s/ Ljerka Maric Authorized Representative Date: 2/7/2003 cc: H. E. Dr. Mila Gadzic, Minister of Foreign Trade and Economic Relations