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. HUseyin Aydin Director General and Chief Executive Officer Mr. Bilgehan Kuru Executive Vice President Ms. Bilge Levent Department Head, Financial Markets Turkiye Cumhuriyeti Ziraat Bankasi A.$. Ataturk Bulvari No. 8 Ulus, Ankara Turkey Dear Sirs: Re: Loan. No. 8244-TU (Small and Medium Enterprises Energy Efficiency Project) Amendments to the Loan Agreement We refer to the Loan Agreement between T[irkiye Cumhuriyeti Ziraat Bankasi A.$. (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 related Supplemental Letter No. 2(C) are amended as follows: A. Loan Agreement 1. Schedule 2, Section I.A.5(e) (i) is amended to read as follows: "(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." 2 B. Supplemental Letter No. 2(C): Performance Monitoring Indicators With reference to the provisions of Schedule 2, Section I.A of the Loan Agreement, the performance monitoring indicators for the Project set out in the Supplemental Letter No. 2(C) 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.M. Zutt Country Director Turkey Country Unit Europe and Central Asia Region AGREED: TURKIYE CUMHURIYETI ZIRAAT ANKASI A.$. By: N ame: Il" vl Title: Date: 1~A 7 'A03\ W1 ANNEX 1 Amendment to Supplemental Letter No. 2(C) Results Framework Project Development Objective Indicators I Cumulative I aroet Values Indicator Name Core Baselini YRI YR2 YR3 YR4 YR5 YR6 YR7 Frequency Data Source! Responsibility for IndcatrNme Cre easure Cueulati3 e YR5tYR6 Sequ Methodology Data Collection .Sub-Borrowers, Projected lifetime x MWh/Year 0 0 0 1,100,000 2,000,000 5.000,000 6,800,000 7,500,000 Semi- Commissioning Borrowers energy savings annual rorts reports Associated GHGTosfSei reductions from Tons of 0 0 0 31,500 57,300 93,600 190,000 220,000 Semi- Sub-Borrowers Borrowers reuton rmCO2e/year I anual project investments Intermediate Results Indicators Cumulative Target Values eu e__nit of' I YR _ _ YR Y_5_Y_--Y61 Frequency Data Source/ Responsibility for Indicator a Core asure Baseline YRI YR2 YRV YR4 YRS YR6 ethodology Data Collection Volume of bank Amount Semi- funding: lines of (USD 0 0 0 20.0 63.0 90.0 95.0 106.0 annual Borrowers Borrowers credit - SME million) I I Amount I Total value of EE (USD 0 0 0 36.8 123.7 204.1 190.0 230.0 semi Borrowers Borrowers investments annual million) Number of EE Number 0 0 0 39 105 150 191 200 Semi- Borrowers Borrowers loans given annual Number of loans given using Number 0 0 0 0 5 10 56 60 Semi- Borrowers Borrowers alternative business annual model- 4 No of active loan /Semi- Ncooati loan X Number 0 0 0 38 80 120 135 160 Semi- Borrowers Borrowers accounts -SME annual 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 X 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- wien-oned tPercentage 0 0 0 0 2 5 0 0 anul- Borrowers Borrowers women-owned annual 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 MENRGDRE screening tool million) Stage survey Policy and Final set of institutional Diagnostic Set of draft amendment MENR, GDRE, amendments to Text n/a n/a n/a assessment recommendat f annual Consultant MENR, GDRE improve EE completed ions prepared apprv 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.