OFFICIAL DOCUMENTS THE WORLD BANK IBRD * IDA I WORLD BANK GROuP MS. ELLEN GOLDSTEIN Country Director Myanmar, Cambodia and Lao PDR East Asia and Pacific Region L) 1 , 20 17 Pham Tuan Phan 3 Chief Executive Officer Mekong River Commission Office of the Chief Executive Officer Office of the Secretariat in Vientiane 184 Fa Ngoum Road, Unit 18 P. O. Box 6101 Ban Sithane Neua, Sikhottabong District Vientiane 01000 Lao PDR RE: Mekong River Commission: Mekong Integrated Water Resources Management Project (Grant No. H762) Amendment to Financing Agreement Dear Dr. Pham Tuan Phan: We refer to the Financing Agreement (the Financing Agreement) dated April 4, 2012 between the Mekong River Commission (the Recipient) and the International Development Association (the Association) for the above-referenced project (the Project). We also refer to your letter, dated May 30, 2017, requesting the restructuring of the Project, which requires certain amendments to the Financing Agreement. On the basis of the foregoing, we are pleased to inform you that the Association concurs with the request and proposes to amend the Financing Agreement as follows: (a) Schedule I to the Financing Agreement is deleted in its entirety and replaced by the Schedule I set forth in Annex I to this letter. (b) Item (iv) of sub-paragraph 3 (a) of Part A of Section I of Schedule 2 to the Financing Agreement is deleted in its entirety and replaced by the following: Dr. Pham Tuan Phan Page 2 A ,2017 "(iv) the performance indicators for Part 1 of the Project as set forth in the Project Implementation Plan; and" (c) Sub-paragraph 3 of Part A of Section I of Schedule 2 to the Financing Agreement ("In the event of any conflict between the provisions of the Project Implementation Plan and those of this Agreement, the latter shall prevail.") is renumbered sub-paragraph 4, and the remaining sub-paragraphs are re-numbered accordingly. (d) Sub-paragraph 6 (a) (originally sub-paragraph 5 (a)) of Part A of Section I of Schedule 2 to the Financing Agreement is deleted in its entirety and replaced by the following: "(a) carry out jointly with the Association, no later than June 30, 2015, or such later date as the Association may notify to the Recipient, a midterm review to assess the status of the Project, as measured against the performance indicators set forth in the Project Implementation Plan. Such review shall include an assessment of the following: (i) overall progress in implementation of the Project; (ii) results of monitoring and evaluation activities; (iii) progress on procurement, disbursement and financial management; (iv) implementation arrangements; and (v) the need to make any adjustments to the Project and any reallocation of funds to improve performance;" (e) Part A of Section II of Schedule 2 to the Financing Agreement is deleted in its entirety and replaced by the following: "The Recipient shall monitor and evaluate the progress of Part I of the Project and prepare Project Reports in accordance with the provisions of Section 4.08 of the General Conditions and on the basis of indicators acceptable to the Association and set forth in the Project Implementation Plan. Each Project Report shall cover the period of one (1) calendar semester, and shall be furnished to the Association not later than forty-five (45) days after the end of the period covered by such report." (f) The table set forth in paragraph 2 of Part A of Section IV of Schedule 2 to the Financing Agreement is deleted in its entirety and replaced by the table set forth in Annex 2 to this letter. Except as specifically amended this letter, all other terms and conditions of the Financing Agreement shall remain in full force and effect. Dr. Pham Tuan Phan Page 3 ,2017 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. This amendment letter shall become effective upon receipt by the Association of a duly countersigned original of this letter by the authorized representative of the Recipient. Yours sincerely, Ellen Goldstein - Country Director Myanmar, Cambodia, Lao PDR East Asia and Pacific Region CONFIRMED: MEKONG RIVER COMMISSION By: /Autho d R presentative Name: Title: Date: Dr. Pham Tuan Phan Page 4 ,2017 Annex 1 Revised Schedule I The objective of the Project is to improve water resource and fisheries management in selected areas of the LMB. The Project constitutes the first phase of the Program. The Project consists of the following parts: Part 1: Regional Water Resources Management 1. Support the MRC in: facilitating IWRM dialogue between the Recipient, the Kingdom of Cambodia, the Kingdom of Thailand and the Socialist Republic of Vietnam; and implementing pilot activities that address urgent IWRM trans-boundary issues. 2. Support the MRC in assessing and establishing an approach for environmental impact risk and disaster risk assessment in the LMB. 3. Support the MRC in facilitating dialogue on and communication of IWRM principles to different stakeholders, including inter alia: governments, private sector, civil society and local communities. 4. Support the MRC in, inter alia: (a) implementing this Part I of the Project, and facilitating the implementation of Parts 2 and 3 of the Project to maintain the coherence and consistency of the activities in the LMB; and (b) the preparation of the second phase of the Program. Part 2: National Water Resources Management I. Improving the legal and regulatory regime for water resource management, through, inter alia, revisions of existing legislation on water resources and development of priority implementing regulations for water resources management. 2. Improving water quality management through, inter alia, the establishment of a national water quality laboratory, undertaking water quality and eco-system health monitoring, and the dissemination of water quality information to improve water resources management. 3. Improving analytical capacity for water resources management, through, inter alia: (a) developing computer modelling systems and undertaking water resources assessment studies in priority river basins; (b) developing GIS-based computer decision support systems in priority river basins to support water resources planning and management activities; (c) establishing a national water resources information system; and (d) the construction of a national water resources information center. 4. Improving the collection, analysis, and dissemination of hydrological and meteorological information, through, inter alia: (a) the construction of hydro-met observation stations; (b) the construction of an early warning center and provincial office buildings; and (c) facilitating information dissemination for improved water resources management. 5. Support MONRE in the monitoring, administration, and oversight of Parts 2 and 3 of the Project. Dr. Pham Tuan Phan Page 5 ,2017 Part 3: River Basin and Aquatic Resources Management 1 (a) Supporting river basin management, through, inter alia: (i) preparing river basin management plans, including integrated flood plain plans in priority river basins; (ii) implementing priority management actions and undertaking pilot projects under the river basin management plans; and (iii) improving the capacity of MONRE water resources management agencies. (b) Supporting sustainable irrigation and flood management, through, inter alia: (i) upgrading existing irrigation schemes and flood gates in the Recipient's Xebangfai and Xebanghiang river basins; (ii) providing technical assistance to water user associations; supporting the adoption of system of rice intensification practices; and (iii) improving the capacity of MAF's irrigation agencies. 2. Improving the management of critical habitats for aquatic resources in the Recipient's provinces of Champasak, Sekong and Attapeu through, inter alia: (a) establishing community-based fisheries management organizations; (b) developing and implementing local fishery management plans; (c) supporting alternative livelihood activities for reduced reliance on capture fisheries; (d) constructing small-scale village level infrastructure; and (e) improving the capacity of MAF's fishery agencies. Dr. Pham Tuan Phan Page 6 ,2017 Annex 2 Revised Withdrawal Table Percentage of Amount of the Grant Expenditures to be Allocated Financed Category (expressed in SDR) (inclusive of Taxes) (1) Goods, Works, 2,387,000 100% Incremental Operating Costs and Training and Workshops under Part I of the Project (2) Consultants' services under 2,388,000 100% Part I of the Project (3) Management Fee under 525,000 100% Part I of the Project TOTAL AMOUNT 5,300,000