OFFICIAL DOCUMENTS The World Bank 1818 H Street N.W. (202) 473-1000 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Washington, D.C. 20433 Cable Address: INTBAFRAD INTERNATIONAL DEVELOPMENT ASSOCIATION U.S.A. Cable Address: INDEVAS March 15, 2018 Mr. Osman Arslan General Manager and Board Member Mr. Recep GUleg Head of Department international Banking and Structured Finance Tbrkiye Halk Bankasi A.$. Barbaros Mahallesi. $ebboy Sokak No: 4 34746 Ataehir-Istanbul Turkey Dear Sirs: Re: Loan. No. 8242-TU (Small and Medium Enterprises Energy Efficiency Project) Amendments to the Loan Agreement We refer to the Loan Agreement between Tirkiye Halk Bankast A.$. (the Borrower) and the International Bank for Reconstruction and Development (the Bank) dated May 6, 2013, as amended (the Loan Agreement) for the Small and Medium Enterprises Energy Efficiency Project (the Project). We also refer to the letter dated March 7, 2018, requesting and confirming on behalf of the Borrower, certain restructuring of the Project and requesting various amendments to the Loan Agreement. We are pleased to inform you that the Bank hereby agrees to your request. Consequently, the Loan Agreement and the related Supplemental Letter No. 2(A) are hereby amended as follows: A. Loan Agreement 1. Schedule 2, Section I.A.5(e) (i) is amended to read as fol!ows: "(e) Ensure that: (i) not more than twenty-seven and one-half percent (27.5%) of the Loan proceeds shall be made available, through Sub-loans to Sub-project Sponsors that are Mid-cap Companies;". 2. Schedule 2, Section 1.A.5 (f) is deleted in its entirety. 3. Schedule 2, Section IV.B.2 is amended to read as follows: "2. The Closing Date is September 30, 2019." B. Supplemental Letter No. 2(A): Performance Monitoring Indicators With reference to the provisions of Schedule 2, Section II.A of the Loan Agreement, the performance monitoring indicators for the Project set out in the Supplemental Letter No. 2(A) dated May 6, 2013, and signed by the Bank and the Borrower are hereby amended to read as set forth in Annex I to this Amendment Letter. Except as specifically amended herein, all the other terms and conditions of the Loan Agreement shall remain in full force and effect. Please confirm your agreement to the foregoing amendments to the Loan Agreement and the amended performance monitoring indicators on behalf of the Borrower, by signing and dating the confirmation on the enclosed copy of this amendment letter and returning it to us. Upon receipt by the Bank of said duly countersigned original amendment letter, said amendments will come into force and effect as of the date of countersignature by the Borrower. Sincerely, INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Johannes C. . Zutt Country Director Turkey Country Unit Europe and Central Asia Region AGREED: TORKIYE HAL BANKASI A.$. By: Name: Ofr' Title: ke-ATQA rM xr:ee 5 Date: ZIo /Q I ANNEX 1 Amendment to Supplemental Letter No. 2(A) Results Framework Project Development Objective Indicators Cumulative Target Values Indicator Name Core 1 nit of Baseline YRI YR2 YR3j YR4 YR5 YR6 YR7 Frequency Data Source! Responsibility for Measure_Methodology Data Collection Projected lifetime Semi- Sub-Borrowers, eeg MWh/Year 0 0 0 1,100,000 2,000,000 5,000,000 6,800,000 7,500,000 Commissioning Borrowers energy savings annual reports Associated GHG Tons of reductions from Tons 0 0 0 31,500 57,300 93f600 190,000 220,000 annual Sub-Borrowers Borrowers project investments CO2e/yir Intermediate Results Indicators Cumulative Target Values lndicator Name Core Lnit of Baseline YRI YR2 YR3 YR4 YR5 YR6 YR7 'reqUencY Data Source Responsibility for Measure Methodology Data Collection Volume of bank Amount funding: lines of (USD 0 0 0 20.0 63.0 90.0 95.0 106.0 Semi- Borrowers Borrowers credit - SME million) a Total value of EE Amount semi- investments (USD 0 0 0 36.8 123.7 204.1 190.0 230.0 annual Borrowers Borrowers million) Number of EE Semi- loans given Number 0 0 0 39 105 150 191 200 annual Borrowers Borrowers Number of loans given using Semi- alternative business Number 0 0 0 0 5 10 56 60 annual Borrowers Borrowers models No of active loan Semi- accounts -SME Number 0 0 0 38 80 120 135 160 annual Borrowers Borrowers Percentage of project-supported institutions that are Percentage 0 100 100 100 100 100 100 100 Annual Borrowers Borrowers reporting on this indicator Portfolio at Risk - semi- SME Percentage 0 0 0 1.0 2.0 2.0 2.0 2.0 annual Borrowers Borrowers Percentage of project-supported institutions that are Percentage 0 100 100 100 100 100 100 100 Annual Borrowers Borrowers reporting on this indicator Percentage of active loans to Semi- women-owned Percentage 0 0 0 0 2 5 0 0 annual Borrowers Borrowers businesses EE investments Amount Midterm, Borrowers, Borrowers, using the EE (USD 0 0 0 9 20 40 12.0 12.0 at ICR Registered user Borre screening tool million) Stage survey MENR GDRE Policy and Final set of institutional Diagnostic Set of draft amendment MENR, GDRE, amendments to Text n/a n/a n/a assessment recommendat s submitted Semi- Consultant MENR, GDRE improve EE completed ions prepared approvral/ad annual Reports programming option Number of SMEs Borrowers, personnel attending Number 0 0 0 65 250 500 726 750 Semi- MENR GDRE, Borrowers, awareness raising annual Consultant MENR GDRE activities Reports Notes: Alternative business models would include energy efficient equipment leasing, ESCOs, and cash flow-based financing. Women-owned businesses would include all credit line sub-borrowers with at least 30% of the company shares owned by women.