OFICPIAL The World Bank O C (202) 473-1000 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Cable Address: INTBAFRAD INTERNATIONAL DEVELOPMENT ASSOCIATION Cable Address: INDEVAS ,2014 Mr. Imtiaz Hussain Shah Director General (Projects) Planning & Development Department FATA Secretariat, Warsak Road Peshawar 25000 Khyber-Pakhtunkhwa Pakistan Re: Pakistan: KP/FATA/Balochistan Multi-Donor Trust Fund (TF012150-PK) (FATA Urban Centers Project) Amendment to the Project Agreement Dear Mr. Shah: We refer to the Grant Agreement, dated April 12, 2012, between the Islamic Republic of Pakistan (the Recipient) and the International Bank for Reconstruction and Development and the International Development Association (collectively, the World Bank), acting as administrator of the KP / FATA / Balochistan Multi-Donor Trust Fund, and the Project Agreement dated the same date as the Grant Agreement, between the World Bank and the Federally Administered Tribal Areas, for the above-referenced Project (the Project). We also refer to the Economic Affairs Division's letter dated August 12, 2013, requesting the World Bank to provide additional financing (the Additional Financing) to scale-up the scope of activities under the Project. We are pleased to inform you that, after due consideration, the World Bank agrees with the request, and hereby proposes to amend the Project Agreement as set forth below. The Grant Agreement will be amended in a separate letter to be agreed between the Recipient and the World Bank. Capitalized terms used but not defined in this amendment letter have the meanings given to them in the Grant Agreement and the Standard Conditions, as applicable. Schedule: The table in Section II.A.1(b) containing the performance indicators is replaced by the following table: No. Indicator Project objective 1. Percentage of Project beneficiaries in Khar satisfied with quality of Project- provided priority urban services 2. Percentage of Khar population perceiving that delivery of priority urban services is being improved through the Project 3. Framework for improved urban spatial planning, investment decision-making, and service improvement planning developed for FATA, and piloted in selected towns Part I of the Project 4. New (or restored) number of piped household water supply connections provided or restored in Khar resulting from the Project intervention 5. Urban roads rehabilitated (km) under the Project Federally Administered Tribal Areas 2' TFO 12150-PK 6. Number of street lights installed or restored in Khar (4P 7. Number of people in Khar provided with access to regular solid waste collection under the Project 8. Number of direct Project beneficiaries, and the percentage of females among direct project beneficiaries Part 2 of the Project 9. Number of urban centers in FATA with structure plans developed under the Project 10. Number of urban centers in FATA with existing service delivery coverage and physical infrastructure mapped under the Project 11. Number of urban centers in FATA with demand-based priority investments for service delivery improvement identified under the Project Except as specifically amended by this amendment letter, all other provisions of the Project Agreement remain in full force and effect. Please confirm your agreement to the foregoing by signing the form of confirmation set forth below and returning one fully executed original of this amendment letter to us and retaining one original for your records. Upon receipt by the World Bank of the countersigned copy, this amendment letter shall become effective as of the date of the countersignature. Sincerely, INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION acting as administrator of the KP / FATA / Baloc stan Multi-Donor Trust Fund 'nmessaoud Country Director, Pakistan South Asia Region AGREED FEDERALLY ADMINISTERED TRIBAL AREAS By: Name: fl t 2 i 4 Title: C Date: