The World Bank 1818 H Street N.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 2014 H.E. Naglaa EI-Ehwani Minister of International Cooperation Ministry of International Cooperation Cairo, Arab Republic of Egypt Re: Egypt: Loan Agreement for the Wind Power Development Project (7927-EG) Amendment to the Loan Areement Excellency: We refer to the Loan Agreement ("the Agreement"), dated November 4, 2010, between the Arab Republic of Egypt ("Borrower") and the International Bank for Reconstruction and Development ("Bank"), for the Wind Power Development Project ("the Project"). We also refer to the letter dated January 19, 2014, from the Ministry of International Cooperation (MoIC), requesting an amendment to the Agreement. We are pleased to inform you that the Bank concurs with your request, and consequently the Agreement is amended as set forth below. 1. The objective of the Project set out in Schedule 1 to the Agreement is amended in its entirety to read as follows: "The objective of the Project is to develop business models and required transmission facilities for scaling-up wind power in Egypt, and increase transmission capacity in targeted areas." 2. Two new sub-components are added to Part A (Transmission Infrastructure) of the Project in Schedule I to the Agreement to read as follows: "5. Extension and reinforcement of the national 220 kV network along the Suez Gulf Coastal area. 6. Upgrading and rehabilitation of 232km of five existing and old 220 kV OHTLs with high temperature INVAR thermal conductors." 3. The table in Section IV.A.2 of Schedule 2 to the Agreement is amended in its entirety to read as follows: -2- Category Amount of the Loan Percentage of Expenditures Allocated to be Financed (expressed in USD) (1) Works and goods under Parts A.1, A.5 and A.6 of 70,000,000 100% the Project (2) Premia for Interest Rate 0 Amount due under Section Caps and Interest Rate 2.07 (c) of this Agreement Collars (3) Unallocated 0 TOTAL AMOUNT 70,0000 4. The Closing Date in Section IV.B.2 of Schedule 2 to the Agreement is amended to read as December 31, 2017. 5. Paragraph 11 of the Appendix to the Agreement is amended in its entirety to read as follows: "11. "Environmental and Social Management Plan" or "ESMP" means the Borrower's environmental and social management plan for the Project prepared in accordance with the ESIA and provided to the Bank on March 28, 2010, as such framework has been updated and provided to the Bank on June 10, 2014, and as it may be further updated from time to time by agreement between the Borrower and the Bank, setting forth the mitigating, monitoring and institutional measures to be taken during the implementation and operation of the Project to offset or reduce adverse environmental impacts to levels acceptable to the Bank." 6. Paragraph 12 of the Appendix to the Agreement is amended in its entirety to read as follows: "12. "ESIA" means the Borrower's environmental and social impact assessment for the Project provided to the Bank on March 28, 2010, as such assessment has been updated and provided to the Bank on June 10, 2014, and as it may be further updated from time to time by agreement between the Borrower and the Bank, setting forth the matters to be addressed in the ESMP regarding mitigating, monitoring and institutional measures to be taken during the implementation and operation of the Project to offset or reduce adverse environmental impacts to levels acceptable to the Bank." 7. Paragraph 16 of the Appendix to the Agreement is amended in its entirety to read as follows: " 16. "Resettlement Policy Framework" or "RPF" means the Borrower's resettlement policy framework for the Project provided to the Bank on March 28, 2010, as such framework has been updated and provided to the Bank on June 10, 2014, and as it -3- may be further updated from time to time by agreement between the Borrower and the Bank, setting forth the rules, procedures and guidelines for the acquisition of land and/or other assets from persons affected by the Project (if any), and/or the resettlement and rehabilitation of such persons (if any), and the compensation thereof." Except as specifically amended by this amendment letter, all other provisions of the Agreement remain in full force and effect. Please confirm your agreement to the foregoing by signing the form of confirmation set forth below and returning one fully executed original of this amendment letter to us and retaining one original for your records. This amendment letter shall become effective as of the date of countersignature. Yours sincerely, INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Hartwig Schafer Director Egypt, Yemen and Djibouti Country Department Middle East and North Africa Region AGREED: ARAB REPUBLIC OF EGYPT By __________ Authorized Representative Name: /L / L Title: _____________p Date:. 3 / A0 1/1041