OFFICIAL Lo?04-0 n~CMENTS The World Bank ~1 tree 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 December 15, 2016 Mr. Sergei Storchak Deputy Minister Ministry of Finance 9 Ilyinka Street Moscow 109097 Russian Federation Re: Russian Federation Forest Fire Response Project Loan No. 8197-RU Amendment No. I to the Loan Agreement Dear Mr. Storchak: We refer to the Loan Agreement ("Loan Agreement") between the Russian Federation ("Borrower") and the International Bank for Reconstruction and Development ("Bank") dated July 8, 2013 for the Forest Fire Response Project ("Project"). We also refer to your letter dated October 3, 2016 requesting several modifications to the Project. In view of the above and our recent discussions, the Bank proposes to amend the Loan Agreement to: (a) modify the scope of the Project; (b) extend the Closing Date; and (c) modify the percentage of expenditures to be financed. Accordingly, the Loan Agreement is amended as follows: 1. Schedule I to the Loan Agreement is hereby amended and replaced in its entirety by the version attached to this Amendment Letter. 2. The table in paragraph 2 of Section IV.A of Schedule 2 to the Loan Agreement is hereby amended and replaced in its entirety to read as follows: Amount of the Loan Percentage of Category Allocated Expenditures to be (expressed in USD) Financed (1) Goods, works, Technical Services and consultants' 35,000,000 45.90% services for the Project (2) Operating Costs 5,000,000 100% TOTAL AMOUNT 40,000,000 Mr. Sergei Storchak - 2 - 15th December 2016 3. Paragraph 2 of Section IV.B of Schedule 2 to the Loan Agreement is hereby amended and replaced in its entirety to read as follows: "2. The Closing Date is December 31, 2019." 4. Paragraph 21 of the Appendix to the Loan Agreement is hereby amended and replaced in its entirety to read as follows: "21. "Targeted Protected Areas" include the following protected areas: Meshcherskiy National Park, Okskiy Nature Reserve, and Meshchera National Park in the Central Federal Okrug; Bastak National Reserve, Bureinskiy National Reserve, Zeiskiy National Reserve, Anyuiskiy National Park, Bolonskiy National Reserve, Bolshekhekhtsirsky National Reserve, Shantarskie Ostrova National Park, and Komsomolskiy National Reserve in the Far East Federal Okrug; Stolby National Reserve, Sayano-Shushenskiy National Reserve, Shushenskiy Bor National Park, Azas National Reserve, Ubsunurskaya Kotlovina (Ubsunur Hollow) National Reserve, and Alkhanay National Park in the Siberian Federal Okrug; Kerzhensky National Reserve, Buzulukskiy Bor National Park, Bolshaya Kokshaga National Reserve, Mari Chodra National Park, Mordovskiy National Reserve, Smolnyi National Park, Samarskaya Luka National Park and Zhigulevskiy National Reserve in the Volga Federal Okrug. All other terms and conditions of the Loan Agreement remain in full force and effect. Capitalized terms used in this letter (the "Amendment Letter") and not defined herein have the meaning ascribed to them in the Loan Agreement. Please confirm your agreement with the foregoing amendment, on behalf of the Borrower, by signing and dating this Amendment Letter in the space provided below. This Amendment Letter shall be executed in two counterparts each of which shall be an original and one of which shall be returned to us. The provisions set forth in this Amendment Letter will become effective as of the date of the countersignature, upon receipt by the Bank of one fully executed original of this Letter Amendment. Please also note that the Restructuring Paper dated 15f December, 2016, a copy of which is enclosed herewith, will be disclosed on the Bank's external website as per the Bank's policy on Access to Information. Very truly yours, INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By __ Andras Horvai Country Director for the Russian Federation Europe and Central Asia Region Mr. Sergei Storchak - 3 - 15th December 2016 AGREED: RUSSIAN FEDERA By - 7 S-ergei Stor; Deputy *ster of F ce of the Russian Federation n D e ber 2, 2016 Enclosures Mr. Sergei Storchak - 4 - 15th December 2016 SCHEDULE 1 Project Description The objectives of the Project are to improve forest fire prevention and suppression in select forest ecosystems, including Targeted Protected Areas, and to enhance forest management in pilot regions. The Project consists of the following parts: Part 1: Enhancing forest fire prevention, management, and control A. Strengthen forest fire detection and response in Selected Pilot Regions of the forest fund, including through: (i) the development of fire prevention plans; (ii) the improvement of fire prediction and early detection systems; and (iii) the modernization of fire-fighting systems and equipment. B. Strengthen fire detection and response in Targeted Protected Areas, including through: (i) the development of improved fire forecasting and early detection systems; (ii) the development of fire preparedness and management plans; (iii) the upgrading of fire- fighting systems, infrastructure, and equipment; and (iv) the carrying out of a public awareness campaign. C. Provision of support for the preparation of related follow-up operations. Part 2: Building Forestry and Protected Area (PA) Management Capacity A. Build capacity to manage forests, including through the development of improved forest renewal and improved forest pathology approaches. B. Build capacity to manage targeted protected areas, including through: (i) the development of improved planning and institutional arrangements for fire management in PAs; (ii) preparation of guidelines on fire safety, fire preparedness planning and wildfire damage assessment; (iii) development of an integrated forest fire management information system for PAs; and (iv) training in forest fire management. C. Provision of support for the preparation of related follow-up operations. Part 3: Project Management Provision of support to the PIU for implementation of the Project through the financing of operating costs.