OFFICIAL ca
DOCUMENTS
THE WORLD BANK
IR*IDA I WORLDBANKGROUP
Ethiopia Country OfficeIBD-DAIWRDMKOU
Africa Avenue, Bole Road5176000
Addis Abeba, Ethiopia                                                     Fax: (251-11) 6627717
September 21, 2016
Ref: WB/CD/365/09/21/2016
H.E. Ato Abdulaziz Mohammed
Minister
Ministry of Finance and Economic Cooperation
Addis Ababa
Dear Ato Abdulaziz,
Subject: Federal Democratic Republic of Ethiopia: Additional Financing for Irrigation
and Drainage Project (Credit No. 4976-ET)
Amendment to the Financing Agreement
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"), for the purpose of providing additional
financing for the Irrigation and Drainage Project ("Project"). We also 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 Additional 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.    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 Expenditures to
Category             Financing Allocated  be Financed
(expressed in SDR)   (inclusive of Taxes)
(1) Goods and                       0      100% of foreign expenditures
equipment                                 and 90% of local expenditures
(2) Civil works            31,300,000     95%
(3) Consultants'                    0     90%
services and audits
(4) Training                        0      100%
(5) Grants                          0      100% of goods, works, and
services under Grants
(6) Operating Costs                 0     70% for expenditures incurred
before June 30, 2014, 50% for
expenditures incurred before
June 30, 2015 and 40%
thereafter
(7) Refund of Project               0     Amount payable pursuant to
Preparation                             Section 2.07 of the General
Advance                                 Conditions
(8) Unallocated                     0
(9) Management              5,800,000      100% for expenditures incurred
Services                                  before June 30, 2014; 80% for
expenditures incurred before
June 30, 2015; and 50%
thereafter
TOTAL AMOUNT               37,100,000
3.    Paragraph 5 of the Appendix is amended to read as follows:
"5.   "Original Financing Agreement" means the financing agreement for the
Irrigation and Drainage Project between the Recipient and the Association, dated
July 13, 2007, (Credit number 4333-ET), as amended through September 21,
2016."


H.E. Ato Abdulaziz Mohammed         -3-                      September 21, 2016
All the terms and conditions of the Additional Financing Agreement that have not been
amended hereby shall remain unchanged and in full force and effect.
Please indicate your agreement with the foregoing amendments to the Additional
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
AIM D FIID
By:                                   State Min'ster
Name:
Title:
Date: n_____            i____A_