OFFICIAL DOCUMENTS The World Bank 1818 H Street N.W. (202) 477-1234 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Washington, D.C. 20433 Cable Address: INTBAFRAD INTERNATIONAL DEVELOPMENT ASSOCIATION U.S.A. Cable Address: INDEVAS February 22, 2018 Mr. Sergey A. Storchak Deputy Minister of Finance Ministry of Finance Ilyinka, 9 Moscow, 10397 Russian Federation Re: Russian Federation- Loan No. 8291-RU (Second National Hydromet Modernization Project) Extension of Closing Date, Reallocation ofLoan Proceeds and Amendment to the Loan Agreement Dear Mr. Storchak: We refer to the Loan Agreement dated January 17, 2014, between the International Bank for Reconstruction and Development (the "Bank") and the Russian Federation (the "Borrower") for the Second National Hydromet Modernization Project. We also refer to your letter #17-04-11/59534 dated September 15, 2017, requesting (a) an extension of the Closing Date and (b) increase in the percentage share of Russian Federation co-financing of the Project. We are pleased to inform you that the Bank concurs with your request. Accordingly, the table (Withdrawal of the Proceeds of the Loan) under Section IV.A.2 to the Schedule 2 is replaced in its entirety by the following new table as set forth in Attachment I to this amendment letter. In order to track the implementation of the new activities, new intermediate indicators have been introduced to the Project's Results Framework; please refer to the Attachment 2 for the revised intermediate indicators. In addition, the Bank amends the Loan Agreement as follows: 1. Part A of Schedule 1, Project Description, is replaced in its entirety with the following: "The objective of the Project is to assist the Borrower to further enhance its national capacity to deliver reliable and timely weather, hydrological and climate information to the Russian public and economic sector and to enhance its capacity to integrate into the global system of meteorological services. The Project consists of the following parts: Part A. Strengthening Information Communication Technology (ICT) infrastructure and systems delivering weather, climate and hydrological data and information Strengthening of Roshydromet's ICT infrastructure and technical capabilities, inter alia, by carrying out the following: 1. Improve RosHydroment's technical capacity for operational hydrometeorological forecasting and research on climate and climate change, inter alia, through provision of a supercomputer with capacity over 500TFlops, associated engineering and operational support to Roshydromet's main and regional computing center and training to Roshydromet staff. 2. Develop regional data storage and archive systems for improved operational user access to Roshydromet's information resources, inter alia, through investments in modernization of servers and communication infrastructure, databases, and scanning and data input equipment in selected Roshydromet organizations. 3. Improve Roshydromet's integrated information and telecommunication system to facilitate prompt access of Roshydromet's internal and external users to Roshydromet's data and information products, inter alia, through modernization of communication of the sub-system of selected Roshydromet organizations and upgrading of the data collection and dissemination sub-system which integrates data from state observation networks into a unified Roshydromet information system. Part B. Modernization of observation networks Modernization of equipment and technologies of key elements of Roshydromet's observation networks and integrated modernization of the hydrological network in the Volga River Basin, inter alia, by carrying out the following: 1. Improve meteorological and agrometeorological observation networks and increase reliability of operations and a number of automatically measured parameters through the following: (a) replacement of obsolete equipment, and addition of new equipment, in weather stations located in selected priority regions or in selected priority stations, including remote stations, and supply mobile and stationary calibration laboratories for basic meteorological networks; and (b) investments in modernization of the agrometeorological network, including installing automatic instruments to measure the parameters of water and heat balance at key soil and agro-climatic sites and supplying mobile agrometeorological laboratories in selected pilot areas. 2. Improve the upper air observation network through: (a) installation of modern upper air complexes (including in remote locations); and (b) strengthening of remote sensing instruments and techniques by introducing temperature and wind profilers. 3. Upgrade the regional operational forecasting units to strengthen the satellite data reception capability of selected Roshydromet organizations through, inter alia, installation of satellite data receiving systems. 4. Modernize the hydrological network and improvement of reliability of hydrological forecasts and flooding and techniques for seasonal water flow by: (a) installation of automatic instruments and modem communication and engineering equipment at hydrological stations; (b) supplying mobile hydrological laboratories and calibration laboratories; and (c) upgrading of the whole system of hydrological data collection, storage, and processing and provision of information products, including data on water cadastre. Part C. Institutional and regulatory strengthening, improvement of service delivery to clients and better preparedness for emergencies Improvement of Roshydromet's service delivery performance in line with international experience, inter alia, by carrying out the following: 1. Strengthen the institutional capacity of Roshydromet by: (a) improving its performance including, updating a set of regulatory and technical documents and standard operational procedures; (b) strengthening its sustainability, including development of new approaches to life- cycle management of equipment and material assets; and (c) upgrading of regional training and distance learning centers, training of staff and carrying out of selected study tours. 2. Improve Roshydromet's service delivery by reducing the gap between user needs and delivery of services to users, including carrying out sociological surveys and mass media relations activities, and preparation of professional advertisements of Roshydromet activities. 3. Improve the emergency preparedness system related to dangerous hydrometeorological events and public safety by: (a) provision of support for improved interaction among federal and territorial bodies responsible for public safety; (b) development and operationalization of information products related to emergencies; and (c) investments in stationary and mobile hydrometeorological situational centers and their deployment in the regions to increase region's preparedness for emergencies and for coordinated mitigation measures. 4. Strengthen Roshydromet's scientific and research potential on a range of operational themes aligned with modernization priorities including, provision of on-the-job-training of scientists and specialists from Roshydromet institutes and operational units and applied research internships in leading national meteorological services and international research centers. Part D. Project Management Provision of consultants' services (including services of a systems integrator and services for translation of Project documents and audit of Project costs), provision of equipment to be used by BEA and financing of Operating Costs, all in relation to management of Project implementation." 2. Section IV(B) of Schedule 2 is modified to read as follows: "2. The Closing Date is December 31, 2021." Except as specifically amended herein, all other provisions the Loan Agreement shall remain in full force and effect. Please confirm the Borrower's agreement with the foregoing amendments to the Loan Agreement by countersigning and dating both copies of this Amendment Letter and returning one of the countersigned copies to us. Upon receipt by the Bank of the copy of this Amendment Letter countersigned by you, this Amendment Letter will become effective as of the date of the countersignature. Sincerely, INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Andras Horvai Country Director Russia Europe and Central Asia Region AGREED: RUSSIAN FEDERATION Date: ATTACHMENT 1 Amount of the Loan Percentage of Expenditures Allocated to be Financed Category (expressed in USD) (inclusive of taxes) (1) Goods, non-consulting services, 57,894,720 43% until February 28,2018 consultants' services, and Training 29% from March 1, 2018 onwards (2) Operating Costs 2,105,280 43% until February 28, 2018; 33% from March 1, 2018 onwards TOTAL AMOUNT 60,000,000 1 ATTACHMENT 2 Russia: Second National Hydromet Modernization Project Changes in Results Framework and Monitoring Project Development Objective Indicators Increased lead times of basic weather forecasts for major Russian administrative centers with reliability over 70% Unit of Measure: Hours Indicator Type: Custom Baseline Actual (Current) End Target Action Value 120.00 120.00 168.00 Revised Date 01-Jan-2014 05-Dec-2017 31 -Dec-2021 Increased reliability of forecasts of seasonal water inflow to reservoirs in the Volga River basin Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Value 75.00 78.00 85.00 Revised Date 01-Jan-2014 05-Dec-2017 31 -Dec-2021 Increased number of RHM sectoral data users Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Value 100.00 116.00 123.00 Revised Date 01-Jan-2014 05-Dec-2017 31 -Dec-2021 Increased satisfaction of users with RHM services Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Value 65.00 80.00 80.00 Revised Date 01-Jan-2014 05-Dec-2017 31 -Dec-2021 Intermediate Indicators A. I Accuracy of warnings on natural hazards Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Value 88.00 93.60 93.00 Revised Date 01-Jan-2014 05-Dec-2017 31 -Dec-2021 A.2 Increased level of spatial resolution of weather forecasts with the lead time of up to three days (fo Unit of Measure: Kilometers Indicator Type: Custom Baseline Actual (Current) End Target Action Value 15.00 15.00 5.00 Revised Date 01-Jan-2014 05-Dec-2017 31 -Dec-2021 A.3 Number of oblast and territorial Roshydromet Centers providing remote client access to archived Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 7.00 10.00 Revised Date 01-Jan-2014 05-Dec-2017 31 -Dec-2021 A.4 Number of Roshydromet centers providing operational access to observational data and products external RHM clients Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 10.00 100.00 Revised Date 01-Jan-2014 05-Dec-2017 31 -Dec-2021 B.1 Increased number of automated observation sites in pilot regions of the North-West of Russia Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Value 83.00 84.00 92.00 Revised Date 01-Jan-2014 05-Dec-2017 31 -Dec-2021 B.2 Availability of modem devices for measurement of soil moisture and heat regime of agricultural L pilot regions (North Caucasus, West Siberia) Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 0.00 80.00 Revised Date 01-Jan-2014 05-Dec-2017 31 -Dec-2021 B.3 Modernization of upper air observation network Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Value 64.00 78.00 87.00 Revised Date 01-Jan-2014 05-Dec-2017 31 -Dec-2021 B.4 Reduction of error of water flow data in the Volga River basin Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Value 20.00 30.00 15.00 Revised Date 01-Jan-2014 05-Dec-2017 3 1-Dec-2021 B.5 Percentage of the Volga River basin territory corresponding to the minimum required number of I observation sites Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Value 81.00 81.00 100.00 Revised Date 01-Jan-2014 05-Dec-2017 31 -Dec-2021 C.4 Accuracy of warnings on hazardous hydrometeorological events delivered to regional authorities, Ministry of Emergency Situations Unit of Measure: Percentage Indicator Type: Custom Baseline Actual (Current) End Target Action Value 81.00 84.00 89.00 Revised Date 01-Jan-2014 05-Dec-2017 31 -Dec-2021 C.5 Number of Roshydromet institutions where situation centers are deployed Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 25.00 96.00 102.00 Revised Date 01-Jan-2014 05-Dec-2017 3 1-Dec-2021 C.2 Re-training and professional upgrading of specialists from the Roshydromet's organizations Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 169.00 1614.00 9300.00 Revised Date 01-Jan-2014 05-Dec-2017 31 -Dec-2021 C. I Developed/updated regulatory, organizational and administrative documents aimed at improving organizational, methodological, financial and economic activities of Roshydromet Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 2.00 9.00 Revised Date 01-Jan-2014 05-Dec-2017 31 -Dec-2021 C.3 Number of scientists and specialists participating in internships in leading universities and agenci( Russia Unit of Measure: Number Indicator Type: Custom Baseline Actual (Current) End Target Action Value 0.00 2.00 10.00 Revised Date 01-Jan-2014 05-Dec-2017 31 -Dec-2021