OFFICIAL m
DOCUMENTS
THE WORLD BANK
IBRD* IDA I WORLDBANKGROUP
Ethiopia Country Office
Africa Avenue, Bole Road                                                   Tel: (251-11) 5176000
Addis Abeba, Ethiopia                                                      Fax: (251-11) 6627717
September 21, 2016
Ref: WB/CD/364/09/21/2016
H.E. Ato Abdulaziz Mohammed
Minister
Ministry of Finance and Economic Cooperation
Addis Ababa
Dear Ato Abdulaziz,
Subject: Federal Democratic Republic of Ethiopia: Irrigation and Drainage Project
(Credit No. 4333-ET)
Amendment to the Financing Agreement
We refer to the Financing Agreement dated July 13, 2007 ("Original Financing Agreement"),
between the Federal Democratic Republic of Ethiopia ("Recipient") and the International
Development Association ("Association"), for the Irrigation and Drainage Project ("Project"), as
amended through the date of this letter. Further, we refer to the letter dated November 16, 2015
from the Recipient's Ministry of Finance and Economic Cooperation requesting certain
amendments to the Project.
Accordingly, we propose to amend the Original Financing Agreement in respect of the
provisions below:
1.    The development objective of the Project in Schedule 1 is amended to read as follows:
"The objective of the Project is to improve access to irrigation and drainage services and
build farmers' capacity in irrigated agriculture in the Project Area."
2.    Part 1(c) of Schedule 1 (Project Description) is amended to read as follows:
"(c)  Providing support for conducting, and implementing the recommendations of,
environmental and social impact assessments, and resettlement action plans,
relating to Project investments in hydraulic infrastructure in the Project Area, and
for the Ribb Dam."
3.    The table in paragraph 2 of Section IV.A of Schedule 2 is deleted in its entirety and
replaced by the following table:


H.E. Ato Abdulaziz Mohammed         -2-                     September 21, 2016
Amount of the          Percentage of
Financing               Expenditures to be
Allocated              Financed
(expressed in SDR)     (inclusive of Taxes)
(1) Goods and equipment  1,772,000             100% of foreign
expenditures and 90% of
local expenditures
(2) Civil works         45,218,000             95%
(3) Consultants' services  8,771,685.01        90%
and audits
(4) Training            1,500,000              100%_
(5) Grants              500,000                100% of goods, works, and
services under Grants
(6) Operating Costs     1,080,000              40%
(7) Refund of Project   392,051.10             Amount payable pursuant to
Preparation Advance                         Section 2.07 of the General
Conditions
(8) Unallocated         0
Amount Cancelled (as of  6,366,263.89
September 30, 2008)
TOTAL AMOUNT            65,600,000
4.    Paragraph 16 of the Appendix is amended to read as follows:
"16. "Environmental and Social Management Framework" and "ESMF" mean the
environmental and social management framework prepared by the Recipient for
the purpose of implementing the Project, issued on February 21, 2007, and as
may be amended from time to time, referred to in paragraph C.1 of Section I of
Schedule 2 to this Agreement, setting forth, inter alia, guidelines, procedures,
timetable and other specifications designed to offset adverse environmental and
social impacts related to Project activities, or to reduce them to acceptable levels,
or to enhance positive impacts, including principles and guidelines for pest
management and the safe handling of pesticides, and for minimizing any
potential related adverse impacts."
All the terms and conditions of the Original Financing Agreement that have not been
amended hereby shall remain unchanged and in full force and effect.


H.E. Ato Abdulaziz Mohammed          -3-                      September 21, 2016
Please indicate your agreement with the foregoing amendments to the Original
Financing Agreement on behalf of the Recipient by countersigning and dating two (2) original
copies of this letter and returning one countersigned original to us. Upon receipt by the
Association of the countersigned copy, these amendments shall become effective as of the date
of the countersignature.
Sincerely,
INTERNATIONAL DEVELOPMENT ASSOCIATION
Carolyn Turk
Country Director for Ethiopia, Sudan and South Sudan
Africa Region
AGREED:
FEDERAL DEMOCRATIC REPUBLIC OF ETHIOPIA
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