~OFFICA The World Bank i @*ft 1q.W. (202) 477-1234 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Washington, D.C. 20433 Cable Address: INTBAFRAD INTERNATIONAL DEVELOPMENT ASSOCIATION U.S.A. Cable Address: INDEVAS April 18, 2012 Mr. Sergei Storchak Deputy Minister of Finance -wi-i ECCQ Ministry of Finance Ilyinka, 9 Moscow, 10397 Russian Federation Re: Russian Federation- Loan No. 4849-RU (Judicial Reform Support Project) Amendment to the Loan Agreement Dear Mr. Storchak: We refer to the Loan Agreement dated July 17, 2007, between the International Bank for Reconstruction and Development (the "Bank") and the Russian Federation (the "Borrower") for the Judicial Reform Support Project (Loan No. 4849-RU), as amended from time to time (hereinafter the "Loan Agreement"). We also refer to your letter, dated February 22, 2012 requesting an amendment to the Loan Agreement ("Amendment Letter"). We are pleased to inform you that the Bank concurs with your request and amends the Loan Agreement as follows: 1. A new paragraph 4 is added to Section I of Schedule 2 to the Loan Agreement as follows: "4. (a) The Borrower, through the PIU, shall: (i) by not later than January 31, 2013, or such other date as agreed with the Bank, sign the contracts for remaining procurement of goods with contract duration of 12 months or more; and (ii) by not later than September 30, 2013, or such other date as agreed with the Bank, sign all other contracts for activities included in the procurement plan agreed upon between the Borrower and the Bank; and (b) if the Borrower, through the PIU, shall have failed to sign any of the contracts referred to above by the respective due dates, the Bank may, at its sole discretion, determine that the amount of the Loan pertaining to the unsigned contracts will not be required under the Project, and, without further notice to the Borrower, cancel such amount from the Loan Account." 2. A new paragraph 5 is added to Section I of Schedule 2 to the Loan Agreement as follows: "5. Not later than June 30, 2012, the Borrower, through the PIU, shall adopt the revised Project Operational Manual, approved by TAMC, satisfactory to the Bank." 3. The table at paragraph 2 of Section IIIC of Schedule 2 of the Loan Agreement is amended as follows: Procurement Method (a) Quality Based Selection (b) Least Cost Selection (c) Selection Based on Consultant's Qualifications (d) Selection of Individual Consultants, including Single-Source Selection (e) Single Source Selection 4. Paragraph I of Section IVA of Schedule 2 of the Loan Agreement is amended to read as follows: "The Borrower may withdraw the proceeds of the Loan in accordance with the provisions of this Section, and such additional instructions as the Bank shall specify by notice to the Borrower to finance Eligible Expenditures as set forth in the table in paragraph 2 below. As per the provisions of Section 2.04(a) of the General Conditions, the Borrower may, for purposes of the Project, open and maintain one or more designated accounts." 5. The table at paragraph 2 of Section WA of Schedule 2 of the Loan Agreement is amended as follows: Amount of the Loan Percentage of Expenditures to Allocated be financed Category (expressed in USD) (1) Goods, technical services and 48,722,751.94 29% consultants' services for the Project (2) Operating Costs of BEA (in 726,248.06 29% memoriam) (3) Operating Costs of FER 551,000.00 29% under the Project TOTAL AMOUNT 50,000,000 6. Section IV B of Schedule 2 of the Loan Agreement is amended as follows: "1. Notwithstanding the provisions of Part A of this Section no withdrawal shall be made: (a) for payments made prior to the date of the Loan Agreement; and (b) for payments under Category (2) where the expenses were incurred on or after December 20, 2011. 2. The Closing Date is March 30, 2014" 7. A new paragraph I is added to the Appendix to the Loan Agreement, and subsequent paragraphs are renumbered, as follows: "1. "BEA" means the entity defined in paragraph 13(a) of this Appendix." 8. A new paragraph 5 is added to the Appendix to the Loan Agreement and subsequent paragraphs renumbered accordingly: "5. "FER" means the entity defined in paragraph 13(b) of this Appendix." 9. Paragraph 7 (formerly paragraph 5) of the Appendix to the Loan Agreement is deleted and replaced with the following: "7. "IAMC" means the interagency management council, established by the Borrower for the purposes of overall Project steering and coordination pursuant to Section 5.01 of this Agreement." Consequently, all references to "IACC" in the Loan Agreement are hereby amended mutatis mutandis to read "IAMC". 10. Paragraph 12 (formerly paragraph 10) of the Appendix to the Loan Agreement is amended as follows: "12. "Operating Costs" means incremental operating costs incurred by the PIU on account of Project implementation, management and monitoring, including staff salaries and consultancy costs, social charges, training, dissemination of Project related information, office rent and utilities, office equipment and supplies, office and equipment insurance, maintenance and repair, vehicle maintenance and repair, travel, communication, translation and interpretation, bank charges, audit, and other miscellaneous costs directly associated with the Project, all based on periodic budgets acceptable to the Bank." 11. Paragraph 10 of the Appendix to the Loan Agreement (formerly paragraph 8) is amended as follows: "10. "MOED" means the Ministry of Economic Development of the Borrower or any successor thereto." Consequently, all references to "MOEDT" in the Loan Agreement are hereby amended mutatis mutandis to read "MOED". 12. Paragraph 13 of the Appendix to the Loan Agreement (formerly paragraph 11) is amended as follows "13. "Project Implementing Unit" and the acronym "PIU" mean: (a) Up to and including December 19, 2011: the Bureau of Economic Analysis (BEA), an independent non-commercial legal entity, established as a foundation and registered with the Borrower's Ministry of Justice on August 9, 1996 pursuant to Registration Certificate No. UR-31; (b) From December 20, 2011: Non-Commercial Foundation for Enterprise Restructuring and Financial Institutions Development (FER), a legal entity organized and established pursuant to the law of the Borrower on non-commercial organizations, and operating on the basis of its Charter dated July 5, 1996, as amended on June 2, 1997 and June 10, 2003, and was selected by the Borrower to assist MOED and Project beneficiaries in the implementation of the Project and which is a party to the Project Implementation Agreement entered into on December 6, 2011." 13. Paragraph 16 of the Appendix to the Loan Agreement (formerly paragraph 14) is amended as follows: "16. "Project Implementation Agreement" means the agency agreement to be entered into between the Borrower, represented by the MOF and the MOED, and the PIU pursuant to Section 5.01 of this Agreement." 14. Paragraph 20 of the Appendix to the Loan Agreement (formerly paragraph 18) is amended as follows: "20. Technical Services" means expenses for the following types of activities: (a) Project- related study tours, training courses, seminars, workshops and other training activities, not included under goods and consultants' services, and includes costs of training materials, space and equipment rental, travel, accommodation and per diem costs of trainees (including civil servants, judges, justices, and other court staff) and trainers; and (b) organizing, and providing technical support for implementation of Project activities, including workshops, study tours, round table discussions, conferences and other events." 15. Paragraph 21 of the Appendix (formerly paragraph 19) is deleted in entirety. 16. The attachment to Supplemental Letter 2 is hereby replaced by the attachment at Annex I to this Amendment Letter. All the terms and conditions of the Loan Agreement that have not been amended hereby shall remain unchanged and in full force and effect. Please confirm the Borrower's agreement with the foregoing amendments to the Loan Agreement by countersigning and dating both copies of this Amendment Letter and returning one of the countersigned copies to us. Upon receipt by the Bank of the copy of this Amendment Letter countersigned by you, this Amendment Letter will become effective as of the date of the countersignature. Sincerely, INTERNATIO L BANK FOR RECONSTRUCTI DEVELOPMEN ic ael Rutkowski C untry Director Russia Europe and Central Asia Region AGREED: RUSSIAN FEDERATION By: Title: Deputy Minister of Finance Date: V , Attachment Results Framework and Monitoring RUSSIAN FEDERATION: JUDICIAL REFORM SUPPORT PROJECT Project Development Objective (PDO): The objective of the project is to assist the Russian Federation to strengthen judicial transparency and efficiency of selected courts through the implementation of information systems and judicial training. PDO Level Results D=Dropped Unit of Measure Baseline Cumulative Target Values** Frequency Data Source/ Responsibility Indicators* c=continue Methodology for Data in atrs3 = ewYR 1 YR 2 YR 3 YR4 YR 5 YR 6 YR7 Cleto 0 N= New Collection U R=Revised (2008) (2009) (2010) (2011) (2012) (2013) (2014) Component One: 0 Periodic surveys show D Percent of N/A N/A N/A Annual Surveys JD improved private sector and respondents public ratings for judicial expressing transparency and efficiency satisfaction for (a) arbitrazh courts (AC) with judicial and (b) courts of general jurisdiction (CGJ) transparency and efficiency Component Two: 0 R Percent Zero Zero Zero Zero Zero Zero 50% 100% Quarterly Quarterly JD and FER Judicial decisions and case (Number of percent percen percent percent percent percent reports statistics in all CGJs CGJ with t financed by JRSP Package functioning B.3.1.1 are published JRSP-financed electronically. information systems from package B.3.1.1 publishing decisions, as % of target number of CGJ to be financed by package B.3.1.1) Component Two O D Percent Zero Zero TBC TBC TBC [Actual [Actual [Actual Annual Annual SAC, FER Judicial decisions and (Number of AC data] data] data] reports case statistics in all with arbitration courts (A) functioning financed by the JRSP are JRSP-financed published electronically information systems publishing decisions, as % of target number of AC to be financed byJRSP) Component Two O1 C Number Zero Zero Zero Zero Zero Zero [Actual [Actual Annual Annual JD and FER Public access to (Average data] data] reports information on CGJ number of hits functioning (for CGJs per information with information kiosks kiosk per year) financed by JRSP package B.3.1.1) Component Three: XEI R Cumulative Zero Zero Zero 175 2,900 3,500 5,500 7,000 Annual JD reports JD and FER Training of'judicial staff of number of AC and CGJ increases their judicial staff of technological proficiency. AC and CGJ trained on ICT programs INTERMEDIATE RESULTS Intermediate Result indicator [ R Completion First survey N/A N/A First Second Third Fourth Annual Survey Reports FER One: of surveys completed in survey survey survey survey' Availability of data from periodic 2010 and surveys of users ofjudicial services data on transparency, efficiency, access, available quality and satisfaction Research and analysis on D introduction of modern information and communication technologies in judicial systems and on further integration of the RF judicial system Creation, implementation and dissemination of common case D management standards, guidelines and processes The development of indicators to assess and periodically report on the D performance of the judicial system Human capital development needs D and strategy analysis to inform policy and strategy update(s) Intermediate Results indicator Two New information services for N Percent Zero Zero Zero Zero Zero Zero 40% 100% Annual JD Reports JD, FER court visitors are available (Number of courts with installed information panels andlor information kiosks for visitors as % of target number of courts to be financed by JRSP Package B.3.1.1) Intermediate Results indicator [ N Percent Zero Zero Zero Zero Zero 50% 100% Annual JD Reports JD, FER Three (Number of New facilities for distance ourts with participation in court hearings videoconfere are functional in courts ncing facilities as % of target number of courts to be financed by JRSP Package B.2.3.1) Intermediate Result indicator E One: D * For CGJ and JD: Reduction in average time to prepare for publication of judicial decisions by 20% Intermediate Result indicator [ D Two: * For CGJ and JD: Periodic surveys of CGJ Judges and staff show increasing satisfaction with use of new ICT systems compared to 2006/2007 baseline * For CGJ and JD: Periodic surveys of CGJ judges and staff show increasing satisfaction with use D of mobile capabilities Notes on Core Sector Indicators: 1. "The number of direct project beneficiaries, of which female (percentage)" is a core indicator. This will be a new indicator. The term "direct project beneficiaries" means the total number of judges and non-judicial staff in courts financed by the JRSP. The baseline information and end-project target data will be made available by FER by June 30, 2012. 2. "The number of manpower trained under the project (number of people)" is a core sector indicator for Information Technology. This is already included in the indicators above.