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The World Bank                                   1818 H4treet N.W.       (202) 473-1000
INTERNATIONAL BANK FOR RECONSTRUCTION AND DE VE -     iton, D.C. 20433   Cable Address: INTBAFRAD
INTERNATIONAL DEVELOPMENT ASSOCIATION            U.S.A.                  Cable Address: INDEVAS
June 27, 2012
Dr. Mohammad Mustafa Mastoor
Depu:y Minister of Finance
Ministry of Finance
Islamic Republic of Afghanistan
Dear Dr. Mastoor:
Re: Afghanistan Urban Water Sector Project
Amendment to Financing Agreement (Grant No. H225-AF)
We refer to the Financing Agreement for the Urban Water Sector Project (the
"Pro,ect") dated July 5, 2006 between the Islamic Republic of Afghanistan (the "Recipient")
and the International Development Association ("Association) as amended to date
("Firancing Agreement") .
We a-so refer to the letter from the Ministry of Finance dated February 20, 2012, requesting
the Association to extend the Closing Date of the Project, and to the letter dated June 4, 2012
from Afghanistan Urban Water Supply and Sewerage Corporation.
I am pleased to inform you that the Association concurs with your request, and
accordingly, proposes to amend the Firancing Agreement as follows:
1. Section IV.B.2 of Schedule 2 shall be amended to read:
"2.       The Closing Date is June 30, 2014"; and
2. The table in Section IV.A.2 of Schedule 2 shall be replaced with the table
included in the Attachment to this letter.
Except as specifically amended by this letter, all other existing provision of the Grant
Agreement, as amended, shall remain in full force and effect.
Please confirm your agreement to the amendments set out above by signing and
dating the form of confirmation on the enclosed two copies of this Amendment Letter and


Dr. Mhammad Mustafa Mastoor          2                            June 27, 2012
returning one copy to us. This Amendment Letter shall take effect as of the date of counter-
signature.
Sincerely,
INTERNATIONAL DEVELOPMENT ASSOCIATION
Robert J. S
Country Director for Afghanistan
South Asia Region
CONFIRMED and AGREED:
on behalf of the
ISLAMIC REPUBLIC OF AFGHANISTAN
By:
Nam:X
Title:  \
Date:   3r


Dr. Mohammad Mustafa Mastoor                3                                 June 27, 2012
Attachment
Amount of
Category                      the Grant         Percentage of Expenditures to be Financed
Allocated         (inclusive of taxes)
(e:pressed in
SDR)
i ) Goods, works, consultants'                   100%
s rvices and training under Part 1  4,990,000
of the Project, and audit costs
12) Operations and maintenance                   45% of expenses incurred in FY2010 (March 21,
costs including salaries of non-  4,428,000      2009 to March 20, 2010) within the limit of
managerial staff under                           US$1.6 million equivalent, 40% of expenses
Part 2(i) of the Project                        incurred in FY201I1 (March 21, 2010 to March
20, 2011) within the limit of US$1.5 million
equivalent, 40% expenses incurred within the
limit of US$ 2.0 million equivalent per year in
FY2012 (March 21, 2011 to March 20, 2012),
FY2013 (March 21, 2012 to March 20, 2013)and
FY2014 (March 21, 2013 to March 20, 2014),
and US$0.5 million equivalent for the first
quarter of FY2015 (March 21, 2014 to June 30,
2014).
'.3) Salaries of managerial staff                100% of expenses incurred within the limit of
inder Part 2 (ii) of the Project  1,259,000      US$400,000 equivalent per year in FY2010,
FY2011 and FY2012, and US$1.0 million
equivalent per year in FY2013 and FY2014, and
US$ 250,000 for the first quarter of FY2015
(until June 30, 2014)
4) Bonuses of managerial staff                  100% of expenses incurred within the limit of
under Part 2 (iii) of the Project  342,000       US$100,000 equivalent per year in FY2010,
FY201 1 and FY2012, and US$ 200,000
equivalent per year in FY2013 and FY2014, and
US$ 50,000for the first quarter of FY2015 (until
June 30, 2014).
i'5) Unallocated
1,217,000
(6) Amounts Cancelled on May 30,  15,664,000
2010
TOTAL AMOUNT                   27,900,000