OFFICIAL DOCUMENTS THE WORLD BANK IBRD* IDA | WORLDBANKGROUP Ethiopia Country O ffice IR D O M M(RU e:(5 -1 160 Africa Avenue, Bale Road Tel: (251-11) 5176000 Addis Abeba, Ethiopia Fax: (251-11) 6627717 October 31, 2017 Ref: WB/CD/422/10/27/2017 H.E. Dr Abraham Tekeste Minister of Finance and Economic Cooperation Ministry of Finance and Economic Cooperation Addis Ababa, Ethiopia Dear Dr. Abraham, Re: IDA Financing 4976 -ET (Additional Financing for Irrigation and Drainage Project Additional Instructions: Disbursement) We refer to the Financing Agreement dated September 15, 2011 ("Additional Financing Agreement"), between the Federal Democratic Republic of Ethiopia ("Recipient") and the International Development Association ("Association") to provide additional financing for the Irrigation and Drainage Project ("Project"), as amended through the date of this letter. Further, we refer to your letter dated August 31, 2017, requesting that funds from the captioned Credit be used to finance resettlement compensation and livelihood restoration under the Project, as well as your letter dated October 23, 2017, requesting that funds from the captioned Credit be used to finance cash payments for monetized livelihood restoration. And we also refer to the individual letter titled Additional Instructions: Disbursement ("Disbursement Letter") dated September 15, 2011 for the aforementioned IDA Financing 4976 -ET. After due consideration, the Bank agrees to your request. Accordingly, 1. Article II, Section (vi) "Advances" is amended to read as follows: * Ceiling (Subsection 6.1): USD 12,000,000. 2. Article IV, Other disbursement Instructions the following text is added: * For category 10, cash compensation for resettlement and livelihood restoration, the following supporting documents will need to be provided: (i) Report with detail list of beneficiaries showing the approved amount, beneficiary name, bank account, amount disbursed into the beneficiary accounts and date of deposit; (ii) Evidence from the bank for transferring the resources to the individual bank accounts (bank advice or a report from the bank showing list of accounts into which the deposits were made.); and (iii) Sheets: one for cash compensation and one for livelihood restoration cash payment, where the beneficiaries sign confirming that they have received the money into their bank accounts. These sheets need to be checked and approved by the woreda officials. All other sections of referenced DL remain unchanged. Sincerely, INTERNATIONAL DEVELOPMENT ASSOCIATION Carolyn Turk Country Director for Ethiopia, Sudan and South Sudan Africa Region 2 3 Amended by: Margaret Png (Legal) Cleared by: Margaret Png (Legal); Abebe Zerihun SOO (AFCE3) BCC: Carolyn Turk, Richard Spencer, Nataliya Mylenko, Anne Margreth Bakilana, Abebe Zerihun, Fasika Gebremeskel, Bethlehem Teka (AFCE3); Nicole Klingen (AFCET); Hayalsew Yilma (GFA13); Habab Taifour, Wambui G. Gichuri (GWAO8); Xiaokai Li (GWAO1); Samuel Lule Demsash, Chukwudi H. Okafor (GSU07); Dereje Agonafir (GENO 1); Maiada Mahmoud Abdel Fattah Kassem (WFALA); Meron Tadesse (GG025); Nathalie S. Munzberg (OPSES); Ayalew Kebede (GGO01); Margaret Png (LEGAM); Teklu Tesfaye (GFA13); WBDocs