Da!a Q *~~ , ADDENDUM NO. 2 TO THE AGREEMENT FOR ADVISORY SERVICES on Romania: Climate Change and Low Carbon Green Growth Program This addendum is made the 20 day of 6 2015, between the Ministry of Environment, Waters and Forests (the "Recipient") and the INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (the "Bank") (jointly referred to as "the Parties") to the Agreement for Advisory Services on Climate Change and Low Carbon Green Growth Program signed between the Parties on July 23, 2013 and amended on July 9, 2015 (the "Agreement"). The Addendum is made in accordance with Article 16 of the Agreement. The Parties shall conclude this Addendum: The Parties agree as follows (revisions are included in italics): Art. I. Article 11 "Payment" (a) Section 4 of the table of the Agreement is hereby amended to read as follows: Type of Amount of Reporting Period Timing of issuing the Invoice Invoice covered by the Invoice invoice 4 Final Payment Time based Remaining period Within 30 business days upon until the end of the the submission and acceptance agreement of the Final Progress Report. Art. II. Section 2 "Advisory Services" (b) "Timetable" of Schedule 1 "Description of Advisory Services" to the Agreement is amended to read as follows: "b. Timetable. Unless otherwise agreed by the Recipient and the Bank, the Bank will take the necessary steps to carry out the Advisory Services in accordance with the following tentative timetable: -2- Activity No. Output Timing COMPONENT A: Support to the Ministry of Environment, Waters and Forests to develop a comprehensive national climate change and low carbon green growth strategy and action plan Activity A 1: Stocktaking and Vision Development A. 1.1 Stocktaking report covering literature, baseline, 5 months from the institutional review, key EU requirements and Effective Date timetable, and available datasets. A 1.2 Report on how to tackle issues associated with the 9 months from the national Green House Gas (GHG) inventory Effective Date A 1.3 Vision statement for developing a low carbon green 5 months from the growth economic for Romania Effective Date A 1.4 Guidance note on climate-related elements to be used 6 months from the for the government in the negotiations for Effective Date Environmental Operational Programmes Activity A.2: Development and operationalize of a Comprehensive Climate Change and Low Carbon Green Growth Development Strategy and Action Plan A 2.1 Report on the analysis and risk assessment mitigation 11 months from the and adaptation actions and options in key sectors Effective Date A 2.2 Report on monitoring climate change effects risks, 13 months from the including the needs assessment in terms of (i) tools for Effective Date detection, early warning and alert systems, as well as risk mapping and assessment, (ii) mapping out and assessing the risks, and (iii) investments in disaster management systems A 2.3 Report on institutional capacity building measures, August 23, 2015 including legislative measures aimed at clarifying responsibilities and ensuring coordination of different governmental institutions for implementing the priority sector investment programme A 2.4 Report on the strategic environmental assessment of the November 19, 2015 strategy and action plan -3- Activity No. Output Timing A 2.5 A comprehensive and operational National CC and Low 17 months from the Carbon Growth Strategy (integrating inputs received Effective Date along the strategic environmental assessment (Draft) edure) ovember 19, 2015 (Final) A 2.6 The 2016-2020 Action Plan for implementing the 20 months froi the strategy prepared (integrating inputs received along the Effective Date strategic environmental assessment procedure (Draft) undertaking) November 19, 2015 (Final) A 2.7 Report on monitoring & evaluation indicators related to 25 months from the the implementation of the strategy and action plan Effective Date A 2.8 Web-based multi-sector documentary database 22 months from the enclosing all the relevant data, studies, documents, and Effective Date works proving to be instrumental for preparing the policies and analyses in the field - created, tested and operational A 2.9 Provision of resource persons for the following events organized for consultation, review, and dissemination of Proposed CC Strategy and Action Plan 1 workshop, with about 30 participants, to review and 2 months from the discuss the preliminary findings and climate action Effective Date recommendations from rapid sectoral analysis; 3 workshops, with minimum 15 participants/event to 8 months from the identify priorities for the CC draft strategy; Effective Date 1 national conference, with minimum 50 18 months from the participants/event, to promote the CC draft strategy Effective Date 2 one-day workshops, with about 30 participants/event 13 months from the on CC draft Action Plan participants/event Effective Date 1 national conference, with minimum 50 participants, to November 30, 2015 promote the CC strategy and action plan -4- Activity No. Output Timing Component B: Support the Preparation of the Climate Change-related tasks under the 2014-2020 Operational Programmes Activity BI: Support to include EU requirements related to climate change in the 2014 - 2020 Operational Programs - B 1.1 Synthesis report on identification of operational 6 months from the programs, actions, and interventions including the Effective Date selection and evaluation criteria and methods, monitoring indicators on the sector and project levels for the OPs, and recommendations for incorporating climate-related tasks in the 2014-2020 Operational Programs. B 1.2 Provision of resource persons for three workshops and The three workshops two national conferences, to discuss the draft 2014 - held within 6 months 2020 OPs with a focus on incorporating climate-related from the Effective tasks Date The first conference held after about six months from the Effective Date The second one after about 13 months from the Effective Date Component C: Support to the Government of Romania to build a strong and sustainable analytic capacity and a suitable knowledge Activity C1: Sectoral analysis and baseline for building a low-carbon economy. C 1.1 Report summarizing the results and findings of the 20 months from the sectoral analysis and baseline of selected sectors Effective Date C 1.2 Provision of resource persons for two review meetings 20 months from the to discuss and main findings and recommendations of Effective Date the report -5- Activity No. Output Timing Activity C2: Marginal abatement cost analysis of mitigation measures in selected key sectors, .- C 2.1 The MAC curve study report with the detailed dataset 20 months from the and recommendations for carbon emissions reduction Effective Date measures based on the MACC analysis. C 2.2 Provision of resource persons for two review meetings The first review to review the progress or evaluate the result meeting held 5 months from the Effective Date The second one 20 months from the Effective Date Activity C3: Economy-wide analysis of low carbon green growth (development and application of a computable general equilibrium model for Romania) C 3.1 The model and users' guide (software included) as well 23 months from the as the provision of resource persons for one workshop Effective Date on sharing modeling experience and discussing the model structure and two review meetings to review the model design progress or evaluate the final output C 3.2 Report on the simulation of low carbon green growth 23 months from the policies, including the results of impact assessment and Effective Date final policy recommendations. Component D: Support to the Romanian Institutions for Implementation and Evaluation of Climate Actions Activity D1: Development of a methodology and identification of opportunities for carbon trading. D 1.1 Report on the methodology for identifying and October 9, 2015 assessing projects capitalizing the provisions concerning the market mechanisms under the Kyoto Protocol and the United Nations - Framework Convention on Climate Change, consistent also with the requirements of the EU Emissions Trading System (ETS) -6- Activity No. Output Timing D 1.2 Report on the identification of opportunities for October 9, 2015 reduction of emissions from sectors falling outside of the EU ETS (e.g. transport, land use) D 1.3 Provision of resource persons for four workshops for- October 9, 2015. relevant government officials and professionals on strengthening Romania's capacity to meet the conditions for participation in the EU ETS. Activity D2: Design of monitoring, reporting and verification (MR) for climate change actions D 2.1 Report on the Design of MRV system in Romania October 9, 2015 D 2.2 Provision of resource persons for two review meetings October 9, 2015 to review and discuss the design Activity D3: Information dissemination D 3.1 Information dissemination November 30, 2015, through dissemination packages delivered on quarterly timelines or as needed by the Advisory Services D 3.2 [ Final report November 30, 2015 All the other articles and provisions of the Agreement shall remain unchanged. -7- IN Witness WHEREOF, the parties hereto, acting through their duly authorized representatives, have caused this Agreement to be signed in their respective names as of the day and year first above written. MINISTRY OF ENVIRONMENT, INTERNATIONAL BANK FOR WATERS RESTS RECONSTRUCTION AND DEVELOPMENT By: By: Gratiela Leocadia Gavrilescu Elisabetta Capannelli Minister Country Manager for Romania Ministry of Environment, Waters and Forests The World Bank Authorized Representative Authorized Representative Date: 1 2015 Date: 2 * / ,2015