THE WORLD BANK IBRD *IDA I WORLDBANKGROUP OFFICIAL T-FIoq fi DOCUMENTS

ROGIER VAN DEN BRINK Acting Country Director, East Asia and Pacific Region

Public Disclosure Authorized September 24, 2015

Mr. Cesar Purisima Secretary of Finance Department of Finance 6/F Department of Finance Building Bangko Sentral ng Pilipinas Complex Roxas Boulevard, Manila

Dear Secretary Purisima:

PHILIPPINES:Integrated Persistent Organic PollutantsManagement Project Public Disclosure Authorized (GEF Grant No. TF095839) - Amendment to the Grant Agreement

We refer to the Grant Agreement between the Republic of the Philippines (the "Recipient") and the International Bank for Reconstruction and Development (the "World Bank"), acting as an implementing agency of the Global Environment Facility, dated June 28, 2010, as amended thereof (the "Grant Agreement") for the above-referred project (the "Project").

We also refer to the letter dated June 26, 2015, requesting the restructuring of the Project, which requires certain amendments to the Grant Agreement. We are pleased to inform you that the World Bank concurs with the request, and accordingly amends the Grant Agreement as set forth below:

1. Parts I and 2 of Schedule I to the Grant Agreement are deleted in their entirety Public Disclosure Authorized and replaced by the following:

"Part 1: StrenLthenina Rezulatory Framework and Capacity Buildine for POPs Monitoring

(a) Carrying out a review of the Recipient's laws and regulations related to POPs management and monitoring, revisions of such laws and regulations to make them consistent with the Stockholm Convention on POPs management, and creation of the requisite legal framework for the adoption and implementation of the technical guidelines and standards.

(b) Development of a program for monitoring the exposure to POPs including carrying out of surveys and sampling of targeted groups to better understand exposure pathways overall exposure to POPs in the territory of the Recipient. Public Disclosure Authorized (c) Carrying out: (i) a review of the status of implementation of the Stockholm Convention in order to outline activities that will need to be pursued in the future to scale up Project initiatives, fill gaps, address unanticipated issues and tackle approaches to new POPs chemicals; and (ii) a market assessment on waste electrical and electronic equipment.

26F One Global Place, 5th Avenue corner 25th Street, Bonifacio Global City, Taguig City 1634, Philippines Telephone: (632) 4652500 | Facsimile: (632) 4652505 Secretary Cesar Purisima 2 September 24, 2015

(d) Capacity building on laboratory analysis of perfluorooctanesulfonic acid (PFOS), polybrominated diphenyl ethers (PBDEs) and other POPs.

Part 2: Reduction of Releases of Unintentionally Produced Persistent Organic Pollutants

(a) Conduct a PCDD/PCDF inventory.

(b) Development and implementation of interventions to reduce solid waste burning at disposal sites and households through advocacy programs, enforcement of burning ordinances, and improvements to infrastructure.

(c) Preparation and implementation of solid waste management action plans and monitoring of their outcomes.

(d) Development of training materials and case studies, and provision of training and organization of dissemination workshops using the results of the demonstration interventions and studies described in the preceding paragraphs of this Part 2.

2. Sub-paragraph (d) of Part 3 of Schedule I to the Grant Agreement is deleted in its entirety and replaced by the following:

"(d) Enhancement of the Recipient's regulators' capacity for monitoring and enforcement of PCB management through the provision of technical assistance and training."

3. Paragraph I of Section II.A of Schedule 2 to the Grant Agreement is deleted in its entirety and replaced by the following:

"1. The Recipient shall monitor and evaluate the progress of the Project and prepare Project Reports in accordance with the provisions of Section 2.06 of the Standard Conditions and on the basis of the indicators set forth in Project Implementation Plan. Each Project Report shall cover the period of one calendar semester, and shall be furnished to the World Bank not later than one month after the end of the period covered by such report."

4. Paragraph 4 of Section II.B of Schedule 2 to the Grant Agreement is deleted in its entirety and the remaining paragraphs are renumbered accordingly.

5. Paragraph I of Section IV.B of Schedule 2 to the Grant Agreement is deleted in its entirety and replaced by the following:

"1. Notwithstanding the provisions of Part A of this Section no withdrawal shall be made for payments made:

(a) prior to the date of this Agreement; and

(b) under Category (2), unless DENR has submitted to the World Bank: (i) a National Expenditure Plan (NEP) issued by the Recipient's Department of Budget and Management showing specific line item for the budget support to Part 4 of the Project; and (ii) proof of approval of the General Appropriations Act (GAA) for the fiscal year the NEP is issued." Secretary Cesar Purisima 3 September 24 , 2015

6. Section V of Schedule 2 to the Grant Agreement is deleted in its entirety and replaced by the following:

"The Recipient shall utilize the counterpart funds referred to in paragraph 1 (b) of Section IV.B of Schedule 2 to this Agreement for the purposes of site remediation activities under Part 4 of the Project in the Philippine Air Force area in Clark Freeport Zone."

7. Annex 1 to Schedule 2 (Performance Indicators) is deleted in its entirety and the remaining annex is renumbered accordingly.

Except as specifically amended by this amendment letter, all other provisions of the Grant Agreement shall remain in full force and effect.

Please confirm your agreement to the foregoing on behalf of the Recipient by countersigning and dating the corresponding form of confirmation set forth below, and returning one fully countersigned original of this letter to us. Upon receipt of duly countersigned original of this letter by the authorized representative of the Recipient, this amendment letter shall become effective as of the date of the countersignature.

Sincerely,

Rogie Acting Country Director, Philippines East Asia and Pacific Region

CONFIRMED: REPUBLIC OF THE PHILIPPINES

By:

Name: CIrM1 V - 90po

Title: 5 *

Date: oeA .2 * 028472 Secretary Cesar Purisima 4 September 24 , 2015 cc: Hon. , Secretary for Socio-Economic Planning and Director General, National Economic and Development Authority Hon. , Secretary, Department of Budget and Management Mr. Roberto Tan, National Treasurer and Officer-in-Charge, International Finance Group, Department of Finance Mr. Rolando Tungpalan, Deputy Director General, National Economic and Development Authority Ms. Laura Pascua, Undersecretary, Department of Budget and Management Ms. Analiza Rebuelta-Teh, Undersecretary, Department of Environment and Natural Resources Mr. Manuel D. Gerochi, Undersecretary for Policy, Planning, and Foreign- Assisted Programs, Department of Environment and Natural Resources Mr. Rommel R. Abesamis, Assistant Secretary for Foreign-Assisted Projects, Undersecretary, Department of Environment and Natural Resources Ms. Stella Laureano, Director, Department of Finance Mr. Roderick Planta, Director, National Economic and Development Authority Ms. Violeta Corpuz, Director, National Economic and Development Authority Mr. Jonathan Uy, Director, National Economic and Development Authority Ms. Mercedita Sombilla, Director, National Economic and Development Authority Ms. Teresita Salud, Director, Department of Budget and Management Mr. John Narag, OIC for Bilateral Assistance Division, International Finance Group, Department of Finance Atty. Jonas Leones, Undersecretary and concurrent OIC-Director, Environmental Management Bureau Mr. Edwin Domingo, Director, Foreign Assistance and Special Projects Office, Department of Environment and Natural Resources Dr. Eva Ocfemia, Assistant Director, Environmental Management Bureau Mr. Renato Cruz, Chief, Environmental Quality Division, Environmental Management Bureau Mr. Leonard Faller, Project Management and Coordination Specialist, IPOPS, Project Management Office Mr. Antonio Silveira, Executive Director for the Philippines, World Bank Group Mr. Rosalia de Leon, Alternate Executive Director for the Philippines, World Bank Group Ms. Michelle Durham-Kissoon, Advisor to the Executive Director for the Philippines, World Bank Group