May 28, 2020 Mr. Sameer Kum ar Khare Additional Secretary Department of Economic Affairs (DEA) Ministry of Finance Governm ent of India North Block New Delhi 110 001 Dear Mr. Khare: Re: Credit Number 5696-IN Bihar Kosi Basin Development Project Cancellation - Amendment to the Financing Agreement We refer to the Financing Agreement between India ("Recipient") and the International Development Association ("World Bank") dated January 20, 2016 ("Financing Agreement"), and to the Project Agreement between the World Bank and the State of Bihar ("Project Implementing Entity") ("Project Agreement"), of the same date, pursuant to which the World Bank has extended the above captioned Credit ("Credit") for the Bihar Kosi Basin Development Project ("Project"). We also refer to the letter from the Department of Economic Affairs, Ministry of Finance F.No.12/4/2018-FB.V, dated March 14, 2020, requesting the cancellation of forty four million United States Dollars (USD 44,000,000) of the Credit. In view of the foregoing, and in accordance with the provisions of Section 6.01 of the Association's General Conditions for Credits and Grants dated July 31, 2010, as modified, applicable to the Financing Agreement, the World Bank hereby cancels as of March 14, 2020, forty four million United States Dollars (USD 44,000,000) of the Credit. Said cancellation necessitates certain revisions to the withdrawal table set forth in the Financing Agreement. Therefore, the withdrawal table set forth in Section IV.A.2 of Schedule 2 to the Financing Agreement has been revised accordingly and the revised withdrawal table is attached to this letter as Annexure 1. The commitment charges on the total amount cancelled cease to accrue from March 14, 2020. In addition, said cancellation necessitates certain changes to Sub-Component 2.1, 2.2 and 2.3 of Component 2 of the Project, as agreed in the Aide Memoire of the Mid-Term Mission dated November 18- 22, 2019. As a result, the Project Development Objective ("PDO"), the Financing and Project Agreements, and the Results Framework, need to be revised. We are pleased to inform you that the World Bank concurs with the above, and accordingly the Financing Agreement is amended as set forth below: India Country Office, 70 Lodi Estate, New Delhi 110 003, India P.O. Box 416, Phone: +911141479301 / +911149247601 Mr. Sameer Kumar Khare -2- May 28, 2020 1. The PDQ in Schedule 1 is amended to read as follows: "The objective of the Project is to enhance resilience and connectivity to minimize impacts from floods in the Targeted Districts in the Kosi River Basin and to enhance Bihar's capacity to respond promptly and effectively to an Eligible Crisis or Emergency." 2. Component 2 of Schedule 1 is amended to read as follows: "Component 2: Enhancing Agricultural Productivity and Competitiveness Increase the agricultural production and productivity by expanding farmers' access to, and adoption of, innovative farm technologies and practices, and extending their linkages to market infrastructure, through: 1. Intensification and Diversification ofAgricultural Production Systems: Providing Matching Grants to Farmer Interest Groups for financing their Business Plans for increased agricultural productivity, intensification, diversification and competitiveness, through: (a) demonstration and dissemination of use of new technologies; and (b) improved agricultural inputs and practices. 2. Strengthening of Agricultural Value Chain: (a) Mobilizing Farmer Interest Groups to form Producer Organizations; and (b) providing Matching Grants to Producer Organizations for establishing Agricultural Business Centers, including financing the respective ABC Business Plans for produce aggregation and the development of value-added activities. 3. Institutional Development and Market-led Extension: Strengthening the institutional capacity of the AFRD in the Targeted Districts in order to promote the: (a) convergence among state- and centrally-sponsored interventions in the agricultural sector; (b) inter-departmental coordination at district, block and village levels; ( c) sectoral transformations from production-centered extension systems to market-oriented ones; ( d) field-tests and scale-up of climate-resilient agricultural practices; ( e) analysis of value chains, market conducts and farmers' commercial options; and ( f) establishment of partnerships with allied services such as financial institutions and insurance providers". 3. Sections 1.4 "ATMA" and I.19 "DOA" of the Appendix to the Financing Agreement are deleted and the remaining Sections are renumbered accordingly. 4. Existing Section I.29 of the Appendix to the Financing Agreement is amended to read as follows: "29. "Implementing Agencies" means, collectively, the AFRD, BRPNNL, RWD and WRD, and/or their respective successors." 5. Existing Section I.35 of the Appendix to the Financing Agreement is amended to read as follows: "35. "Matching Grant Agreement" means the written agreement to be entered into by the AFRD and the individual FI Gs or POs, as the case may be, for the provision of a Matching Grant for the financing of a Business Plan or an ABC Business Plan, pursuant to Section I.D .2 of the Schedule to the Project Agreement and the Operations Manual." Mr. Sameer Kumar Khare -3- May 28, 2020 6. The Results Framework of the Project is revised accordingly and is set forth in Annexure II. Except as specifically amended by this Amendment Letter, all other provisions of the Financing Agreement shall remain unchanged and in full force and effect. The World Bank will disclose this Amendment Letter and related information in accordance with the World Bank's Policy on Access to Information. By agreeing to this Amendment Letter, the Recipient consents to disclosure of this Amendment Letter and related information. Please confirm your agreement to the foregoing by signing and dating two originals, retaining one original for your records and returning the other original to the World Bank. This Amendment Letter shall become effective as of the date of the last countersignature ofany of: (a) this Amendment Letter; or (b) the Project Agreement Amendment Letter, upon receipt by the World Bank of the duly countersigned originals of the Amendment Letters, other than the cancellation, which shall become effective as of the date of the cancellation. Yours sincerely, INTERNATIONAL DEVELOPMENT ASSOCIATION ~ By__,, --- Junaid Kamal Ahmad Country Director, India AGREED: INDIA are,\AS ' <{'eprgsgptajyggq,7R./Same@! @HUF""_za /Addl. SecretafY arq€ iI+. { Finance paver mer /Minist_'',anomic Affairs Name: ,jf farm+ /Dep artment 0! ,} 4dia affa ",/Government J ass ""&siview boll Title: Date: Enclosures: Annexure I -Revised Withdrawal Schedule Annexure II- Revised Results Framework Mr. Sameer Kumar Khare -4- May 28, 2020 cc: Ms. Aparna S., Executive Director (India), the World Bank Mr. Santosh Dattatraya Vaidya, Senior Advisor to Executive Director, the World Bank Government of India Mr. Hanish Chhabra, Deputy Director, Department of Economic Affairs, Government of India Mr. Sukhbir, Controller of Aid Accounts and Audit, Department of Economic Affairs, Ministry of Finance, Government of India Mr. Sanjeev Kumar Jindal, Joint Secretary (Disaster Management), Ministry of Home Affairs, Government of India Government of Bihar Mr. Arun Kumar Singh, Development Commissioner, Government of Bihar Mr. Manish Kumar Verma, Principal Secretary, Department of Planning and Development and Project Director, Bihar Aapada Punarwas Evam Punarnirman Society Mr. Sunil Kumar, Dy. Project Director, Bihar Aapada Punarwas Evam Punarnirman Society Mr. Tripurari Sharan, Additional Chief Secretary, Water Resources Department, Government of Bihar Mr. S. Sidharth, Principal Secretary, Department of Finance, Government of Bihar Mr. Vinay Kumar, Secretary, Rural Works Department, Government ofBihar Mr. Amrit Lal Meena, Principal Secretary, Road Construction Department, Government of Bihar Mr. Jitendra Srivastav, Chairman, Bihar Rajya Pul Nirman Nigam Limited Mr. Sudhir Kumar, Principal Secretary, Department of Agriculture, Government of Bihar Mr. K. K. Pathak, Principal Secretary, Minor Water Resources Department, Government of Bihar Ms. N. Vijayalakshmi, Secretary, Department of Animal and Fish Resources Department, Government of Bihar Mr. Adesh Titarmare, Director, Department of Agriculture, Government of Bihar Mr. Sameer Kumar Khare -5- May 28, 2020 Cleared with: Zoe Kolovou, LEG ES and Victor Ordonez, WF ACS bee: SARVP Core Front Office Team; India CMU General; John A. Roome; Sameh Naguib Wahba; Christoph Pusch; Deepak Singh; Keisuke Iyadomi; Anup Karanth; Mehul Jain; Peeyush Ramawtar Sekhsaria; India DRM; Stephanie H. Tam; Harjot Kaur; Anindo Kumar Chatterjee; Rumita Chowdhury; Satya Priya; Manzoor Ul Haque Khan; Edward William Bresnyan; Shouvik Moitra; Obaidullah Hidayat; Heenaben Y atin Doshi; Puneet Kapoor; prabirjoardar@gmail.com; murahariv64@hotmail.com; Radha Raju; Sumit Gulati; Heather Sophia Fernandes Annexure I Attachment to the World Bank's Letter dated May 28, 2020 Credit Number 5696-IN Revised Withdrawal Table Category Amount of the Credit Percentage of Expenditures to Allocated be Financed (expressed in USD) (inclusive of Taxes) ( 1) Goods, works, non- consulting services, consultants' services, Matching Grants, Operating 206,000,000 67% Costs, and Training under Components 1, 2, 3 and 5 of the Project (2) Emergency Expenditures under Component 4 of the 0 Project (3) Cancelled as of March 14, 44,000,000 2020 TOTAL AMOUNT 250,000,000 Annexure II Attachment to the World Bank's Letter dated May 28, 2020 Credit Number 5696-IN Revised Results Framework Project Development Objective Indicators Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 6 7 Area protected by improved flood protection measures 0.00 0.00 0.00 500.00 1,000.00 2,000.00 3,000.00 4,500.00 4,500.00 (Hectare(Ha)) Increased access of the population, to markets by roads and bridges in good and fair condition 100.00 103.00 107.00 110.00 115.00 120.00 120.00 120.00 120.00 by 20 percent (Percentage) Of which female farmers/excluded 46.00 52.00 53.00 55.00 57.00 60.00 60.00 60.00 60.00 farmers (Number) Intermediate Results Indicators by Components Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 6 7 Improving Flood Risk Management 1 Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 6 7 Km of embankment strengthened 0.00 0.00 0.00 0.00 10.00 20.00 30.00 45.00 45.00 (Kilometers) Enhancing Agricultural Productivity and Competitiveness Direct project beneficiaries (Number) 0.00 0.00 0.00 2.00 3.00 5.00 7.00 10.00 7,000,000.00 Female beneficiaries 46.00 46.00 (Percentage) Farmers organized in FIGs (Percentage) 10.00 25.00 25.00 25.00 25.00 25.00 25.00 25.00 35.00 Female FIG Farmers 2.00 10.00 (Percentage) Farmers who have adopted an improved agriculture technology 0.00 0.00 100.00 500.00 1,500.00 3,000.00 promoted by the project (Number) Farmers who have adopted an improved agriculture technology 0.00 0.00 50.00 300.00 1,000.00 1,500.00 promoted by the project - female (Number) Augmenting Connectivity New bridges constructed (Number) 0.00 5.00 10.00 30.00 50.00 55.00 58.00 58.00 58.00 Roads constructed, Rural (Kilometers) 0.00 20.00 70.00 150.00 350.00 380.00 400.00 400.00 400.00 People with access to linking roads and bridges in good and fair 0.00 50,000.00 120,000.00 3,000,000.00 5,000,000.00 650,000.00 7,000,000.00 7,000,000.00 7,000,000.00 condition (Number) 2 Indicator Name DLI Baseline Intermediate Targets End Target 1 2 3 4 5 6 7 Share of rural population, women farmers and socially 0.00 2.00 4.00 8.00 12.00 20.00 22.00 25.00 25.00 excluded farmers, with access to an all-season road (Percentage) Contingent Emergency Response WRD staff trained to use flood management 0.00 0.00 0.00 100.00 150.00 200.00 200.00 200.00 200.00 technologies (Number) 3