The World Bank OFFIC1g Street N.W. (202) 473-1000 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOP ENT ngton, .C. 20433 Cable Address: INTBAFRAD INTERNATIONAL DEVELOPMENT ASSOCIATION D Cable Address: INDEVAS March 25, 2013 Mr. Walter Kling Secretary General International Association of Water Supply Companies in the Danube River Catchment Area (IAWD) c/o Vienna Waterworks Grabnergasse 4-6 1060 Vienna, Austria Re: Capacity Building for Water Supply and Wastewater Utilities in the Danube Region Grant No. TF012722 Amendment to the Grant Agreement Dear Mr. Kling, 1. We refer to the Grant Agreement between the International Association of Water Supply Companies in the Danube River Catchment Area (IAWD) ("Recipient") and the International Bank for Reconstruction and Development (the "World Bank"), acting as administrator of grant funds provided by various donors ("Donors") under the Danube Region Water Supply and Wastewater Utilities Capacity Building Program Multi-Donor Trust Fund (TF071876) , dated October 22, 2012, with respect to the above-captioned Project ("Grant Agreement"). Capitalized terms used in this letter (the "Amendment Letter") and not defined herein have the meaning ascribed to them in the Grant Agreement. - 2. Pursuant to recent discussions between the World Bank and the Recipient, the World Bank proposes to amend the Grant Agreement as follows: (a) Section 2.06 (a) of the Grant Agreement is hereby amended to read in its entirety as follows: "(a) General. All goods and consultants' services required for the Project and to be financed out of the proceeds of the Grant shall be procured in accordance with the requirements set forth or referred in:" (b) Section 2.06 (a)(i) of the Grant Agreement is hereby amended to read in its entirety as follows: "(i) Section I of the "Guidelines: Procurement of Goods, Works, and Non- consulting Services under IBRD Loans and IDA Credits and Grant s by World Bank Borrowers" dated January 2011 ("Procurement Guidelines"), in the case of goods." (c) Section 2.06 (c) of the Grant Agreement is hereby amended to read in its entirety as follows: "'(c) Particular Methods of Procurement of Goods The following methods may be used for the procurement of goods for those contracts which are specified in the Procurement Plan: (A) Shopping; and (B) Direct Contracting with prior World Bank's approval." (d) The table in Section 3.01 to the Grant Agreement is hereby replaced as set forth in the Annex to this Amendment Letter. (e) Section 3.01 (a) of the Grant Agreement is hereby amended to replace the term "Incremental Operating Costs" with the term "Operating Costs", for purposes of the table in Section 3.01. 3. All other terms of the Grant Agreement, except as amended through this Amendment Letter, shall remain the same. 4. Please confirm your agreement with the foregoing on behalf of the Recipient by signing and dating two originals of this Amendment Letter. This Amendment Letter shall become effective as of the date of countersignature, upon receipt by the World Bank of one fully executed original of this Amendment Letter. Sincerely, INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By ou eyna ane Acting Dire tor Operational Services and Quality Europe and Central Asia Region AGREED: INTERNATIONAL ASSOCIATION OF WATER SUPPLY COMPANIES IN THE DANUBE RIVER CATCHMENT AREA (IAWD) By: A orized Representative Name: IIZfk9 91A,(1,e, Title: Ae_2;1__9___ A1 Date: -2- ANNEX Amount of the Grant Percentage of Expenditures Allocated to be Financed Category (expressed in EUR) (inclusive of Taxes) (1) Consultant's Services, 2,739,499 100% Goods, Operating Costs, and Training under Part 2 of the Project. TOTAL AMOUNT 2,739,499 -3-