Supplemental Letter No. 2(A) TURKIYE HALK BANKASI A.$. May 6, 2013 International Bank for Reconstruction and Development 1818 H Street, N.W. Washington, D.C. 20433 United States of America Re: Loan No.8242-TR GEF Grant Agreement No. TF014580 (Small and Medium Enterprises Energy Efficiency Project) Performance Monitoring Indicators Dear Sirs and Mesdames: We refer to: (1) Section II.A of Schedule 2 to the Loan Agreement of even date herewith between the Tirkiye Halk Bankasi A.$ (the Borrower) and the International Bank for Reconstruction and Development (the Bank); and (2) Section II.A of Schedule 2 of the GEF Grant Agreement of even date herewith between the TOrkiye Halk Bankasi A.$ (the Recipient) and the Bank, acting as an Implementing Agency of the Global Environment Facility, all for the above-referenced Project. We hereby confirm that the indicators set forth in the attachment to this letter shall serve as a basis for the Borrower/Recipient to monitor and evaluate the progress of the Project and the achievement of the objectives thereof. Very truly yours, TURKiYE HALK BAN SI A.$. By: Authorized Represe tative By: Author ed Representative Attachment to Supplemental Letter No. 2 Results Framework Project Development Objective Indicators Cumulative Target Values Responsibility Unit of Dt ore o Indicator Name Core Measure Baseline YRI YR2 YR3 YR4 YR5 Frequency Data Source! for MeaureMethodology Data Collection Estimated Sub-Borrowers, energy savings GWh/Year 0 0 53 114.0 186.0 307.0 Semi- Commission- Borrowers (from project annual ing reports investments) Associated GHG reductions Tons of Semi- fo rections Tons a of0 0 26.4 57.3 93.60 154.4 annua Sub-Borrowers Borrowers from project CO2e/year annual investments Intermediate Results Indicators Cumulative Target Values Responsibility Unit of FeunyDt ore o Indicator Name Core Measure Baseline YRI YR2 YR3 YR4 YR5 Fata Source! for Measure Methodology Data Collection Volume of bank Amount funding: lines of (USD 0 18.0 39.0 63.0 90.0 121.0 Semi Borrowers Borrowers . annual credit - SME million) Amount (USD 0 34.9 75.7 123.7 204.1 292.6 semi- Borrowers Borrowers EE investments million) annual Number of EESei Number 0 30 65 105 150 200 Semi- Borrowers Borrowers loans given annual Number of loans given using Number 0 3 10 19 30 45 Semi- alternative annual Borrowers Borrowers business models No of active x Semi- loan accounts - Number 0 24 52 84 120 160 Borrowers Borrowers SME annual SME Percentage of project- supported Percentage 0 100 100 100 100 100 Annual Borrowers Borrowers mnstitutions that are reporting on this indicator Portfolio at Risk \~semi- PotME aiPercentage 0 0 0 1.0 2.0 2.0 semu- Borrowers Borrowers - SME annual Percentage of project- supported Percentage 0 100 100 100 100 100 Annual Borrowers Borrowers institutions that are reporting on this indicator Percentage of active loans to Percentage 0 15 20 25 25 25 Semi- women-owned annual Borrowers Borrowers businesses EE investments F Amount Midterm, Borrowers, using the EE (USD 0 0 30 90 150 225 at ICR Registered Borrowers, screening tool million) Stage user survey MENR_GDRE Final set of Final set of Policy and Set of draft amendmen amendmen MENR, institutional Diagnostic recommen ts ts Semi- GDRE, amendments to Text n/a n/a assessment submitted submitted annual Consultant MENR, GDRE improve EE completed prepared for for approval/a approval/a Reports doption doption Borrowers, Number of .MENR SMEs attending Semi- MENowrs Number 0 600 1400 2400 3600 4000 S GDRE, Borrowers, awareness annual MENR GDRE Consultant MERG E raising activities Reports Notes: Estimated energy savings is currently not a Bank Core Indicator but has been proposed to OPCS as a core indicator for EE and is expected to be adopted shortly. Alternative business models would include energy efficient equipment leasing, ESCOs, and cash flow-based financing. Women-owned businesses would include all credit line sub-borrowers with at least 30% of the company shares owned by women.