t e World Bank 1818 H Street N. 77-1234 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Washington, D.C a e Address: INTBAFRAD INTERNATIONAL DEVELOPMENT ASSOCIATION U.S.A. L-- ---4aeble Address: INDEVAS May 27, 2014 Mr. Peng Hao Governor, Qinghai Province Project Management Office of Xining Flood & Watershed Management Project Xining Water Affairs Bureau No.9 Wusidajie Street Xining, Qinghai 810001 People's Republic of China RE: Xining Flood and Watershed Management Project Loan Number 7712-CN Amendment to Project Agreement Dear Sir: We refer to the Loan Agreement between the People's Republic of China (the Borrower) and the International Bank for Reconstruction and Development (the Bank) dated August 11, 2009, (the Loan Agreement) and the Project Agreement of the same date between the Bank and Qinghai Province, (the Project Agreement) for the Xining Flood and Watershed Management Project (the Project). We also refer to the letter dated February 24, 2014, from the Borrower's International Department, Ministry of Finance, requesting certain amendments to the Loan Agreement relating to reallocation, increase in disbursement percentage, changes to the Parts of the Project, results framework and extension of closing date. We are pleased to inform you that the Bank concurs with the request, and accordingly amends the Loan Agreement as provided in the letter of even date herewith from the Bank to the Borrower (the Letter of Amendment of the Loan Agreement), and the Project Agreement is amended as set forth below subsequent to the request. Annex 1 is amended to read as set forth in the Annex to this amendment letter. Except as specifically amended in this letter, all other terms and conditions of the Project Agreement shall remain in full force and effect. Please confirm your agreement to the foregoing on behalf of the Qinghai Provinceby countersigning and dating the corresponding form of confirmation set forth below, and returning one fully countersigned original of this letter to us. The above amendment to the Project Agreement shall become effective as of the date of this letter upon receipt by the Bank of: (i) a duly countersigned original of this letter by the RCA 248423. L WUI 64145 L FAX (202) 477-6391 -2- 1 authorized representative of Qinghai Province; and (ii) a duly countersigned original of the Letter of Amendment of the Loan Agreement of the same date by the authorized representative of the Borrower. Yours sincerely, Mara Warwick Acting Country Director, China East Asia and Pacific Region CONFIRMED: QINGHAI PROVINCE By: Authorized Repres ntative Name: L4 Title: 6,-e -Jq I/e' v Date: 0/ CC: Ms. Zou Jiayi Director-General International Department Ministry of Finance Sanlihe Beijing 100820 People's Republic of China AN-3- ANNEX ANNEX 1 Results Framework Use of Project Outcome PDO Project Outcome Indicators fojetOo Information Improve the protection of property and safety of people from flood events and bring KPI 0.1: The number of population about sustainable utilization of protected from flooding reaches 426,300 land and water resources by the end of project completion. Track annual progress in withinXiningMunicipality KPI 0.2: The annual reduction of urban achieving PDO and through the provision of a wastewaterdirectly discharged into rivers recommend adjustment in greater level of flood protection in Xining totals 2.38 million tons by the flood and watershed and enhanced flood of project completion management to improve management; improved KPI 0.3:The annual reduction of soil project quality, efficiency, wastewater collection; improved erosion amounts to 898,000 tons by the of and sustainability soil and water conservation in project completion catchments; and institutional strengthening and capacity pbuilding.rotctd_fomflodig_races2630 Ineredae utomsIntermediate Outcome Use of Intermediate byteIndicators Outcome Monitoring KPI 1.1: Proportion of uhe length of dikes built or rehabilitated to that planned. KPI 0.2:The proportion of the landscapes Outcome 1: Improvement of and green belts created 9800 tons by thk flood controlcapacity and KPI 1.3:Completion of the flood warning Tracges an mke protection of human life and and forecasting system in Xining and Tckan nu proec i property in Xining city and three three counties. ncesavi PDOng counties KPI 1.4: The area protected fromemenat flooding. KPI 1.5: The total economic value of the areas protected from flooding. KPI 2.1:Length of wastewater collection Track progress and make Outcome2: Reduction of sewage networks built/upgraded. changes in the project if discharge into rivers KPI 2.2:Percentage of wastewater necessary during collected by the network. implementation Outcome3: Strengthening the Track progress and make capacity for sustainable aoi ndroortion are aped changes in the project if propilrerosioniriduction and water management and development of conservation measures necessary during watersheds implementation KPI 1.2:The poportionoofehe landscape Outcome 4: Capacity building of KPI 4. 1: Number of project staff trained. Tcngress d theproei project management and KPI 4.2: Number of farmerswho attend nes in g implementation skills training organized by the project. teei otaoin threelecounties. -4- Indicators Definition Computation Method and/or Formula KPI 0.1 Population protected from flooding. Draw on contour maps the areas protected from 1: 100 The population protected from flooding under the 1:100 flood protection standard in Xining, under the 1:50 standard in Datong and Huangyuan counties, and fosnuangongCunty under the 1:30 standard in Huangzhong Daw ohn conture mapslathe living in the protected areas according to the census and population growth. KPI 0.2 Reduction of urban wastewaterdirectly According to the actual discharged into rivers in Xining. measure of the wastewater collected by the wastewater Urban wastewater includes both domestic and industrial wastewater generated in project areas. The total the project or the increase amount directly discharged to rivers is in wastewater flows measred.measured at the inlet of measured. wastewater treatment plants which receive wastewater from wastewater collection systems built by the project. KPI 0.3 Reduction of soil erosion by the of projectthe current level of erosion. Soil erosion is when the soil is blown Prio mont t away by the wind or washed away by the r c O o osion e rain as a result of project The reduction will be achieved through intervention. project interventions such as vegetation recovery, tree planting, terracing and structures (check dams) -5- Arrangements for Results Monitoring Target Values Data Collection and Reporting Indicators of Project Baseline Frequency Data Responsibility Output 2008 2009 2010 2011 2012 2013 2014 2015 and Collection for Data Reports Instruments Collection KPI 0.1: The number of population protected from flooding reaches Annual Water 414,300 persons by the 0 43.1 141.3 231.6 317.3 345.2 405 426.3 Annual report Resources end of project Bureau /PMO completion. (1,000 persons) KPI 0.2: The annual reduction of urban wastewater directly Water discharged into rivers 0 363 518 750 1,453 1,956 2,266 2,385 Annual Annual Resources in Xining totals 2.38 report Bureau /PMO million tons by the of project completion (1,000 tons) KPI 0.3: The annual reduction of soil erosion amounts to Annual Water 898,000 tons by the of 0 144 431 647 802 898 898 898 Annual report Resources repo|t Bureau /PMO project completion (1,000 tons) Indicators of intermediate result KPI 1.1: Proportion of Annual Water dikes constructed or 0 22 40 68 91 93 95 100 Annual report resources rehabilitated (%)bureauPMO KPI 1.2: The Water proportin of theAnnualWae proportion of the 0 11 29 40 72 83 90 100 Annual report resources landscapes and green report bureau/PMO belts created - - -6- KPI 1.3: Completion of the flood warning and Not Not Not Not Under Under Annual Water forecasting system in Completed Completed Annual resources Xinngandtheestarted started started started construction construction report bralM Xining and three bureau/PMO counties. KPI 1.4: The area Annual Water protected from 0 7.84 12.84 21.06 28.84 33.27 33.98 35.77 Annual resources flooding (km2) report bureau/PMO KPI 1.5: The total economic value of the Annual Water areas protected from 0 1,140 2,070 3,440 4,650 5,310 5,425 5,710 Annual report resources flooding (RMB bureau/PMO million) KPI 2.1: Length of Water wastewater collection 0 1.3 17.4 8.3 24.35 19.25 11.19 4.31 Annual Annualresources networks report bureaulPMO built/upgraded (km). KPI 2.2: Percentage of Annual Water wastewater collected 0 1.8 25.8 37.4 72.4 82 95 100 Annual resources by the network (%) report bureau/PMO KPI 3.1: Proportion of the area applied soil Annual Water erosion reduction and 0 16 48 72 90 95 100 100 Annual resources water conservation report bureau/PMO measures (%) KPI 4.1: Number of project staff trained resoural pjech yea (prsons 0 472 496 536 542 282 0 0 Annual Annual resources each year (persons report bureau/PMO year) KPI 4.2: Number of farmers who attend 0 560 560 700 525 350 0 0 Annual Annual resources skills training each report bureau/PMO year (persons / year) --- --- - -- -