The World Bank New Delhi Office Phone : +911141479301/+911149247601 INTE'RNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT 70 Lodi Estate Mailing Address: P.0 Box 416 iN1 ERNATIONAL DEVELOPMENT ASSOCIATION New Delhi - 110 003 J India OFFICIAL September 15, 2017 DOCUMENTS Mr. Shekhar Prasad Singh Chief Secretary Government of Telangana Telangana Secretariat Hyderabad Dear Mr. Singh: INDIA: Capacity Building for Industrial Pollution Management Project Loan No. 7924-IN, Credit No. 4755-IN Amendment to the Telangana Project Agreement and Supplemental Letter (Indicators) We refer to: (i) the Loan Agreement between India ("Borrower") and the International Bank for Reconstruction and Development ("Bank") dated July 22, 2010 as amended on May 24, 2016 ("Loan Agreement"); (ii) the Financing Agreement of even date as amended on May 24, 2016 ("Financing Agreement") between the Borrower and the International Development Association ("Association") ("Bank" and "Association" collectively referred to as "World Bank") for the financing of the Capacity Building for Industrial Pollution Management Project ("Project"); (iii) the Project Agreement dated May 24, 2016 ("Telangana Project Agreement") between the World Bank and the State of Telangana; and (iv) the supplemental letter of even date regarding performance monitoring indicators agreed further to the Telangana Project Agreement. Prl SeCy /Secy D ,We further refer to: (i) the Borrower's letter dated August 10, 2017 from the Department kconomic Affairs and the discussions between the Borrower, Andhra Pradesh, Telangana. West Bengal and the World Bank, relating to the changes necessary for the implementation of the Project. We are pleased to inform you that the World Bank concurs with the request and proposes to amend the Telangana Project Agreement as follows: 22 SEP 20}7 i). 22 f4 in The attachment to the supplemental letter regarding performance indicators agreed further in Section II.A.1 of the Schedule to the Telangana Project Agreement is amended to read as set forth in the Attachment to this letter of amendment. Unless the context otherwise requires and except where otherwise defined in this letter of amendment, all capitalized terms contained herein shall have the meanings assigned to them in the Loan Agreement, the Financing Agreement, the IBRD General Conditions or the IDA General Conditions. All other provisions of the Telangana Project Agreement, except as amended herein, remain unchanged. Please confirm your agreement with the foregoing amendment by countersigning and duly dating the confirmation form set forth herein below, and returning one fully signed original of this letter of amendment to us and retaining one original for your records. Upon receipt by the World Bank of the: (i) duly countersigned original of this letter; (ii) duly countersigned originals of the HeadquarterU Washington DC L. USA Mr. Shekhar Prasad Singh - 2 - September 15, 2017 amendment letter to the Loan Agreement and the Financing Agreement; and (iii) amendment letter(s) to the Andhra Pradesh and West Bengal Project agreements and the accompanying supplemental letter regarding performance monitoring indicators, this letter shall become effective. Very truly yours, INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVEL PT ASSOCIATION By HWam Abdo Acting Country Director, India AGREED: STATE OF TELANGANA By N am e- $ A-R- ( A1 4~V -: . , Title rrn Date- hadSer Attachment Key Performance Indicators for roject Monitoring PDO Level Indicators* UoM Baseline Status FY Frequency Data sources and Responsibility Description / comments o June 2017 2017 -18 methodology for data U collection PDO Indicator: E Yes /No No Technical Yes Annual Review of technical MoEF&CC Three basic studies on Framework for the Committee studies and Inventory, establishment of NPRPS has recommendations Methodological and comprising inventory of recommended Policy & Institutional polluted sites, remediation to MoEF &CC studies are completed. methodologies, and policy and Regulatory reviews developed PDO Indicator: Z Ha 0 0 16.3 Semi Review of technical MoEF&CC Pilot sub-projects in Contaminated Land Managed Annual inspection report Andhra Pradesh (4.2 ha) or dump sites closed under upon completion of and West Bengal (12.10 the project works ha) PDO Indicator: 0 Score 0 1 3 Annual Assessment by MoEF&CC Assessed based on three Capacity of technical staff of independent aspects of capacity. the participating agencies experts 1. Preparation strengthened to prepare, 2. Implementation implement and monitor 3. Monitoring remediation plans PDO Indicator: Direct project 2 Number 0 0 183,362 Annual Independent MoEF&CC Total project beneficiaries (number) of (%) (45%) Assessment beneficiaries from pilot which female (%) sub-projects (Kadapa - 25669, Dhapa - 131,693) Intermediate results Component 1: Strengthening of Environmental Institutions - Building Capacity for addressing pollution remediation IR Indicator: Inventory of I Yes /No No Yes Yes Annual Review of technical MoEF&CC Inventory study has Polluted Sites in India studies and been approved by developed recommendations MoEF& CC. IR Indicator: Methodologies D Yes /No No Yes Yes Annual Review of technical MoEF&CC Methodology study has for remediation of polluted studies and been approved by sites in India developed I recommendations MoEF& CC. IR Indicator: E Yes /No No No Yes Annual Review of technical MoEF&CC Draft Guide lines as part National Guidelines for the studies and of Methodology have remediation of polluted sites recommendations developed _ -- 2-- been approved by MoEF& CC IR Indicator: l Yes /No No Yes Yes Annual Review of technical MoEF&CC Policy options as an Policy options for remediation studies and output of the legal and of polluted sites developed recommendations regulatory review study based on a review of existing have been identified legislations and international experiences IR Indicator: Li Number 26 70 76 Semi- Reports from the MoEF&CC Laboratory capacity Number of parameters that annual laboratories of the increased from 26 to 76 can be analyzed by the two pollution laboratories of Andhra control boards on Pradesh, Telangana and West the parameters Bengal Pollution Control analyzed Boards, increased IR Indicator: 0i Yes /No No No Yes Semi- Report on staff MoEF&CC Online network of State annual accessing network Pollution Control Boards for for information on remediation established remediation Component 2: Investments in Priority Remediation and Environmental Improvements IR Indicator: 0 Percentage 0 100 100 Semi- Review of technical MoEF&CC Remediation Plans for Remediation plans prepared annual studies and all the pilots prepared based on risk based approach recommendations and ready for implementation in all the three participating states IR Indicator: L Yes/No No No Yes Annual Review of technical MoEF&CC Post remediation Post-remediation monitoring reports on post- monitoring system as system with appropriate remediation recommended in the infrastructure and approved monitoring TEP approved indicators established for all remediation plan, is the three pilot sites by the established. completion of remediation works IR Indicator: 0 Number 0 0 17238 Annual Independent MoEF&CC Total estimated from People with reduced direct Assessment pilot sub-projects exposure to pollution from (Kadapa - 12420, and sites remediated by the Dhapa - 4818) project