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j )OFFICIAL TFOt10l DOCUMENTS The World Bank Tel (Office): 02-236-6500 INTERNATIONAL BANK FOR RECON:;

TRLICTIOr AND DEVELOPMENT Fax (Office): 02-236-6543 INTERNATIONAL DEVELOPMENT ASSOC ATION Mariam Sherman, Country Directcr msherman@wodbank.

org P.O. Box 54842, Jerusdlem February 28,

2013 Mr. Junya Matsuura Anbassador for Palestinian Af'

air;

Representative of Japan to the Pal:stinian Authority Trust Fund Administration Arrangement between the Government of Japan and the Internaticnal'

3ankfor Reconstruction and Development and the International Dowelopment Association for the contribution to the Palestinian Recovery and )evelopment Plan Multi-Donor Trust Fund ( PRDP-TF )- Trusl Fund I o. TF071607 (Successor to TF 071011) Dear Mr. Matsuura: We are pleascd to acbnowledl,e on behalf of the International Bank for Reconstruction aid Development ( IBRD I and the International Development Association ( IDA ) ((:,llectively, the Bank ) the in:ention of the Government of Japan (the Donor ) to make available as a grant the sun -quivalent to ten million US Dollars ($ 10,000,000) (the Contribution ) to the Pales,:inian Recovery and Development Plan Multi-Donor Trust Fund (,PRDP-TF ) for the West BE.nk and 11aza (the Project ) in line with the terms and conditions s:,ecified in this Arraigement (the Arrangement ) and the Standard Provisions Applicable to the Palestinian Recovery and De,lelor ment Plan Multi-Donor Trust Fund ( PRDP-TF ) for the Vest Bank and Gaza (the Standtrd P -ovision ) attached hereto as Annexl . The Donor tray from time to time make one or more additional contributions (each a Supplemental Contr,bution '

to the PRDP-TF, by completing and submitting to the Bank a contribution letter in the fonnat as rroposed in Annex

3 to this Arrangement ( Contribution Letter ). By issuing the call o funds r,-ferred to in the Contribution Letter ( Call of Funds ), the Bank will be deemed to (i) a.knowle ige, on behalf of the Bank, the intention of the Donor to r:ake a Supplemen:al Conribitior and (ii) consent to administer such Supplemental Contribution under the terms and conditions in the Annexes to this Arrangement. In response to the Call of Funds sent by the Bank, a id upon receipt of the Supplemental Contribution into the account designated by the Ba ik i.nder the Call of Funds, the term Contribution or '

Contribution funds will be .eeried to include such Supplemental Contribution. The Contribution wil'

be usec to finance the activities and the categories of expenditure i-i Section

1 (Objeclives) and Secticn

2 (Eligible Expenditures) of the Standard Provisions Applicable to the Palestinian Ilecoveri and Development Plan Multi-Donor Trust Fund ( PRDP- TF ) for the West Bank and 3aza (t ie Standard Provisions ) attached hereto as Annex I and subject to Annex

2 (Items not eligible for financing under the PRDP-TF). Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized -2- The Contribution will be edmiiiistered by the Bank on behalf of the Donor in line with the terms of this Arrangement ind the :tandard Provisions. The Standard Provisions constitute an integral part ofthis Arrangerient. The Donor will deposit the Cor tribution into such bank account designated in a payment request by the Bank promptly iollowini countersignature of this Arrangement by the Donor and su:.mission of a paymernt reque:.t b'

i the Bank. When making the dep osil, the Donor will instruct its bank to include in its payment details information (remittance zdvic.-) field of its SWIFT payment message, information incicating: the amount paid, ihat the payment is made by Donor for TF071607 (Palestinian Recovery and Development P an Mull i-Donor Trust Fund (Successor to TFO7 1011)), and the dale ofthe deposit. In addition, the Do ior will provide a copy of the Donor'

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