OFFICIAL DOCUMENTS THE WORLD BANK IBRD* IDA I WORLDANKGROUP /UMv-=/(e,IZ A4 Ll2016 H.E. Dusan Vujovic Minister of Finance Ministry of Finance 20 Kneza Milosa St. Belgrade 11000 Serbia Re: Republic of Serbia: Corridor X Highway Project Amendment Letter No. 2 to the Loan Agreement (Loan No.7746-YF) and Supplemental Letter No. 2: Performance and Monitoring Indicators Excellency: We refer to: (i) the Loan Agreement for Corridor X Highway Project between the Republic of Serbia (the Borrower) and the International Bank for Reconstruction and Development (the Bank), as amended on April 8, 2014 (the Loan Agreement); and (ii) the Supplemental Letter No. 2 regarding the performance monitoring indicators (the Supplemental Letter No. 2) from the Republic of Serbia, for the above-mentioned Project, as amended, all dated July 13, 2009 (collectively called "Legal Documents"). The capitalized terms used in this amendment letter and not defined herein have the meanings ascribed to them in the Loan Agreement. We hereby propose to amend the Legal Documents as follows: I. The Loan Agreement is amended as follows: 1. Part A of Schedule 1 is hereby replaced in its entirety to read as follows: "Part A. Motorway construction on E-75 and E-80 Carrying out a program of works and equipment provisions for the construction of sections of motorway totaling about: (i) 38 kilometers between Leskovac (Grabovnica) and Grdelica, and between Caricina Dolina and Donji Neradovac (Corridor Xd) on the E-75 highway axis; and (ii) 9 kilometers of motorway on a section of the corridor to the north of Dimitrovgrad on the E-80 highway axis, including construction of new alignment and upgrading of the existing road, and consisting of: 1. the relevant electrical and mechanical facilities, annex areas, toll plazas and buildings, interchanges and some interconnecting roads to improve integration with the local road network; 2. a full profile motorway with four 3.75 meters traffic lanes and design speed of 120km/h for all sections (100km/h design speed in tunnels); and 3. the procurement of a consulting firm to provide engineering services for said program and additional sections of Corridor X as agreed with the Bank." -2- 2. Part B of Schedule I is deleted and the remaining Parts under Schedule I are re- alphabetized accordingly. 3. The Closing Date is established as June 30, 2018. 4. The following definition is hereby added to Section I of the Appendix to read as follows and the remaining definitions in the Appendix are re-numbered accordingly: "4. "Corridor X" means one of the most important pan-European transport corridors that run through Serbia and connects Austria, Hungary, Slovenia, Croatia, Serbia, Bulgaria, Macedonia and Greece. The main branch of Corridor X is Saltsburg (A) - Ljubljana (SLO) - Zagreb (CRO) - Belgrade (SRB) - Nig (SRB) - Skopje (MK) - Veles (MK) - Thessalonica (GR)." II. The Attachment to the Supplemental Letters No. 2 is amended and restated to read as set forth in the attachment to this amendment letter. All the terms and conditions of the Legal Documents that have not been amended hereby shall remain unchanged and in full force and effect. This amendment letter shall become effective as of the date of its signature by the Bank and the Borrower. Sincerely, INTERNATIONAL BANK FOR RECONSTRUCTI N AND DEVELOPMENT Anton s Verheijen Country Manager r the Republic of Serbia Europe and C ntral Asia Region CONFIRMED AND AGREED: REPUBLIC OF SERBIA By: Authorized Representa ve Name: Title: Date: -3- Attachment 1 - Result Framework Project Corridor X Highway Additional Financing (Pl58413) Project Additional Financing Status: DRAFT Name: Stage: Team Leader(s) Svetlana Vukanovic Unit: ECCU4 Created by: Svetlana Vukanovic on 27-Apr-2016 Product IBRD/IDA Responsible GTIO3 Modified by: Desanka Stanic on 17-Aug-2016 Line: Unit: Country: Serbia Approval FY: 2017 Region: EUROPE AND CENTRAL Lending ASIAInsrumnt: Investment Project Financing ASIA Instrument: Parent Project P108005Parent Project CORRIDOR X HIGHWAY PROJECT (Pl08005) ID: Name: Project Development Objectives Original Project Development Objective - Parent: The Project Development Objective is to increase transport efficiency and improve traffic safety on the three project sections of Corridor X, between Nis and Dimitrovgrad and Grabovnica and Donji Neradovac respectively, and to improve road management and road safety in Serbia. Proposed Project Development Objective - Additional Financing (AF): Results Core sector indicators are considered: Yes Results reporting level: Project Level Project Development Objective Indicators Status Indicator Name Core Unit of Measure Baseline Actual(Current) End Target No Change Percentage Value 1.31 1.00 -4- Road User costs for road Date 12-Jun-2009 1-May-2016 30-Jun-2018 section Nis-Dimitrovgrad Comment No Change Road user costs for road Percentage Value 1.07 1.00 section Grabovnica to Donji Date 12-Jun-2009 1-May-2016 30-Jun-2018 Neradovac Comment No Change Rate of road crash related death Percentage Value 44.13 39.70 and serious injury for road Date 12-Jun-2009 1-May-2016 30-Jun-2018 section Nis Dimitrovgrad Comment No Change Rate of road crash related death Number Value 53.34 48.06 and serious injury for road Date 31-Dec-2008 1-May-2016 30-Jun-2018 section Grabovnica and Donji Neradovac Comment No Change Action Plan to improve Yes/No Value No No Yes institutional aspects of road Date 31-Dec-2008 1-May-2016 30-Jun-2018 management through reforms at PEPS adopted Comment No Change National Road Safety Strategy Yes/No Value No Yes Yes developed and launched Date 31-Dec-2008 1-May-2016 30-Jun-2018 Comment