The World Baik COUNTRY OFFICE BOSNIA AND HERZEGOVINA NA vi a 1 B/17 tel (387 33) 251 500 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMEN] 4 fax (387 33) 226 945 INTERNATIONAL DE'VELOPMENT ASSOCIATION Os ovina http://www.worldbank.ba December 4, 2012 Mr. Pelle Persson CoL.nselor Swedish International Development Cooperation Agency Feihadija 20 71000 Sarajevo Bosnia and Herzegovina Supplemental Contribution. 4mendment to the Administration Agreement between the Swedish International Develcpment Cooperation Agency and the International Bank for Reconstruction and Deveiopment and the International Development Association concerning the Water Quality Protection Project, City of Mostar Trust Fund (TF07161,F/SIDA Contribution 55060008) De3r Mr. Persson, 1. We refer to the Adtr inisiration Agreement between the Swedish International Development Cooperation Agency ("Sida" or the "Donor") and the International Bank for Reconstruction and Develormert and the International Development Association (collectively, the "World Bank"), regarding the Water Quality Protection Project, City of Mostar Trust Fund (the "Trust Fund") (TFO71611) effective as of December 9, 2010 (the "A.-ninistration Agreement"), as amended. 2. We are pleased to ackr owledge, on behalf of the World Bank, the intention of the Donor to make a supplemental co-tribution to the Trust Fund in the amount of Swedish Kronor fifteen million (SEK 15,000,000) (the "Supplemental Contribution") by means of this Amendment. 3. The Supplemental Contribution will finance the activities detailed in Annex 1 attached hereto, which forms an integral part of this Amendment. The Supplemental Contribution shall be used to fi ance the following categories of expenditures: goods, works, consultants' services, incremen al oDerating costs, and the World Bank fee. Notwithstanding the foregoing, and so long as tlere is no change in the overall objectives or characteristics of the Supplemental Contribution, the World Bank may reallocate the Supplemental Contribution funds between such categories of expenditures in accordance with the World Bank's applicable policies and procedures on reallocation, without the need to obtain the Donor's approval for any such reallocation. 4. The Donor shall depoit the Supplemental Contribution into such bank account des.: gnated by the World Bank promptly following countersignature of this Amendment by the Donor and submission of a payment request by the World Bank. 5. When making the deposit, the Donor shall instruct its bank to include in its payment details information (remittanc advice) field of its SWIFT payment message, information incicating: the amount paid, tht the payment is made by Donor for TF07161 1 Water Quality Protection Project, City of Mo;tar Trust Fund, and the date of the deposit. In addition, the Donor shall provide a copy of :he Donor's deposit instruction to the World Bank's Accounting Trust Funds Division by e-mail sent to tfremitadvice@worldbank.org or by fax ser.:. to (202) 614-1315. 6. Immediately upon receipt of the Supplemental Contribution funds, the World Bank will convert such funds into United States Dollars. 7. Furthermore, notwithstanding Section 3 of the Standard Provision, Administration Cost Recovery to the Adminisiration Agreement, in order to assist in the defrayment of the cost.s of administration and other expenses incurred by the World Bank under this Amendment, the World Bank may. following deposit of the Supplemental Contribution by the Donor, deduct from the Supplemental Contribution and retain for the World Bank's own account an amount equal to fivc per-ent (5%) of the Supplemental Contribution. 8. The Supplemental Conribution funds may be used to finance expenditures for the Pro ect commencing on the date of countersignature of this Amendment. 9. The first sentence of Section 3.01 of the Administration Agreement is hereby amended to read as follows: "The Grant funds may te used to finance expenditures for the Project commencing on the date of countersign a :ure of this Agreement and ending on August 31, 2015. 10. All other terms of the A iministration Agreement shall remain the same. 11. The World Bank will d sclose this Amendment and related information on this Trust Fund in accordance with the WVorld Bank Policy on Access to Information. By entering into this Amendment, the Donor corsents to disclosure of this Amendment and related inf-rmation on this Trust Fund. 12. Please confirm your u der3tanding to the foregoing, on behalf of the Donor, by signing, dating, and returning t us one of the enclosed originals of this Amendment. Upon receipt by the World Bank of the original of this Amendment countersigned by you, this Amendment will become effective as of the countersignature. Sincerely, International Bank for Reconstruction and Development International Development Association Anabela Abreu Country Manager CONFIRMED AND AGREE ): SiNeden, represented by the Swedish International Development Cooperation Agency Byl: Narre: 70 Titl,-: __________ ___ ANNEX 1 ACTIVITIES TO BE FINANCED BY THE SIDA SUPPLEMENTAL CONTRIBUTION The following activities will be fina-ced by the supplemental contribution: (i) Zivinice Wastewater Treatment Plant, Phase 1. Financing of part of phase 1 of the plant, including biological wastewater and sludge treatment facilities. The facility will include activated sludge basins with aeration equipment for biological trealnient and sludge stabilization, a final settling tank, equipped with scraper bric.ge and sludge storage and drying facilities. A laboratory will be installed for surveying the quality of the effluent and controlling the operation param(ters. (ii) Technical Assistance and Capacity Building. Supporting enhanced management and o 'eration capacity of the utility staff, improving their financial and operational performance and customer service orientation. A feasibility study developed when the Water Quality Protection Project was prepared identif ed the need to increase the manpower and capacity at the utility, reduce echnical problems such as leakage and losses, introduce computerized as 3et rmanagement system, management information system and customer inform atiort system, and improve planning and safety culture. (iii) SIDA grant allcations: Zivinice Wastewater 'r-eatrent Plant, Phase 1. SEK 11,400,000 Works and Goods Zivinice Wastewater T -eatment Plant, Phase 1. SEK Services: supervision Technical Assistance a-d Capacity Building. SEK 1,550,000 Services World Bank fee SEK 750,000 5% Total SEK 15,000,000