THE WORLD BANK New Delhi Office Telephone: 24617241 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT 70 Lodi Estate Cable Address: INTBAFRAD INTERNATIONAL DEVELOPMENT ASSOCIATION New Delhi - 110 003 Mailing Address: P.O. Box 416 India Facsimile: 24619393 December 9, 2010 Mr. Venu Rajamony CONFORMED COPY Joint Secretary (MI) Department of Economic Affairs Ministry of Finance Government of India Room no# 39B, North Block New Delhi Dear Mr. Rajamony: India: Punjab Rural Water Supply and Sanitation Project (Cr. 4251-IN) Amendment to the Financing Agreement We refer to the Financing Agreement between India (the Recipient) and the International Development Association (the Association) dated February 26, 2007. We also refer to the letter dated July 15, 2010, from Department of Economic Affairs, Ministry of Finance, Government of India, requesting some amendments to some sections of the Financing Agreement. We are pleased to inform you that the Association, after due consideration, has agreed to amend the Financing Agreement as follows: I. The table in Schedule 2 --Section IV. A paragraph 2 to the Financing Agreement is amended as set forth in the attachment to this Amendment Letter. Part C of the Project in Schedule 1 is amended to read as follows: "1. Construction and upgradation of rural water supply schemes in about 3,0(X) habitations in Punjab which are not covered or are only partially covered by such schemes. 2. Carrying out a program aimed at achieving sustained quality improvements in rural water supply services, consisting of the provision of goods and works to support the upgradation of existing single village and multi village rural water supply schemes, including the provision and installation of bulk water meters in multi-village water supply schemes. 3. Provision of goods and equipment for implementation of comprehensive sanitation in 100 villages including construction of sewerage and sewage treatment, rehabilitation of ponds and sullage drainage system to maximize environmental sanitation benefits." 3. The Closing Date in Schedule 2 Section IV. 13 paragraph 2 is amended to read December - 31, 2013. Headquarters: Washington, D.C., 20433, U.S.A. /s/ Anna Wellenstein /s/ Venu Rajamony Mr. Venu Rajamony - 3 - December 9, 2010 Attachment SCHEDULE 1 Withdrawal of the Proceeds of the Financing Amount of the Credit Percentage of Allocated (Expressed Expenditures to be Category in SDR) Financed ( I ) Goods, services and operating 24,200,000.00 100% of Eligible costs for Eligible Project Project Expenditures Activities under Parts A and B of the Project (2) Goods and works for Eligible 50,400,000.00 85% of Eligible Project Activities under Parts Project Expenditures C.1 and C.2 of the Project (2)(i)Goods and works for Eligible 12,000,000.00 66% of Eligible Project Activities under Parts Project Expenditures C.1 and C.2 of the Project (3) Goods and works for Eligible 16,904,518.43 85% of Eligible Project Activities under Part Project Expenditures C.3 of the Project (3)(i) Goods and works for Eligible 595,481.57 66% of Eligible Project Activities for first five Project Expenditures Pilot Schemes under C2(b) and C.3 of the Project TOTAL AMOUNT 104,100,000.00 Note: Category 2(i) and 3(i) will be dysfunctional once the reallocation amendment is completed. All future disbursement for Parts C.1 and C.2 will he directly charged to Category 2, and that of Part C.3 will he directly charged to Category 3. Mr. Venu Rajamony -4- December 9, 2010 cc: Mr. Nilaya Mitash, Director, Department of Economic Affairs, MoF, North Block, New Delhi Mr. Soumya Chattopadhyay, Under Secretary, Department of Economic Affairs, MoF, North Block, New Delhi Mr. Arun Kumar Misra, Secretary, Department of Drinking Water Supply, MoRD, New Delhi Mr. Vijay Bhaskar, Joint Secretary, & Mission Director, Rajiv Gandhi National Drinking Water Mission, New Delhi Mr. S. C. Agrawal, Chief Secretary, Govt. of Punjab, Chandigarh Mr. Karan Bir Singh Sidhu, Principal Secretary, Finance Department, Govt. of Punjab, Chandigarh Mr. P.S. Aujla, Secretary, Department of Water Supply and Sanitation, Govt. of Punjab, Chandigarh Mr. S. R. Aggarwal, Program Director, State Program Management Cell, Mohali, Punjab