17-May-2022 ______________________ Hon. Ibrahim Ameer Minister, Ministry of Finance Ameenee Magu 20379, Mahe Republic of Maldives Re: Maldives: Sustainable Fisheries Resources Development Project (Grant No. D175-MV) Amendment to Supplemental Letter No. 2 Dear Honorable Minister: We refer to the Financing Agreement (“Financing Agreement”) between the Republic of Maldives (“Recipient”) and the International Development Association (“Association”), dated June 14, 2017, as amended, for the above-mentioned Project. We also refer to the letter dated April 19, 2022 (Reference No. 13-R1/WB/2022/30) from the Recipient, requesting the Association to revise the results framework for the Project and extend the closing date of the Project. While, at this point of time, the Association expects that the Recipient will complete the project by the original closing date of December 31, 2022, the Association concurs with your request and proposes to amend Supplemental Letter No. 2 related to the Financing Agreement as follows: 1. With reference to the provisions of provisions of Section II.A of Schedule 2 to the Financing Agreement, the performance monitoring indicators for the Project set out in Supplemental Letter No. 2 dated June 14, 2017; and signed by the Association and the Recipient are hereby amended to read as set forth in the Attachment to this letter. Except as specifically amended in this letter of amendment, all other provisions of the Financing Agreement shall remain unchanged and in full force and effect. Please confirm your agreement to the foregoing by countersigning and dating the form of confirmation set forth below in the two originals, and returning one fully executed original of this amendment letter to us and retaining one original for your records. Upon receipt by the Association of the countersigned original of this amendment letter, this letter shall become effective as of the date of countersignature. Sincerely, INTERNATIONAL DEVELOPMENT ASSOCIATION Faris H. Hadad-Zervos Country Director for Maldives, Nepal and Sri Lanka South Asia Region AGREED REPUBLIC OF MALDIVES By: _______________________ Ibrahim Ameer Name: _______________________ Minister of Finance Title: _______________________ 13-Jul-2022 Date: _______________________ Attachment Results Framework and Monitoring MALDIVES: Sustainable Fisheries Resources Development Project (Fourth South West Indian Ocean Fisheries Governance and Shared Growth Project) Project Development Objectives To improve management of fisheries at regional and national levels including support to establish mariculture in targeted atolls in the Maldives These results are at Project Level Project Development Objective Indicators Cumulative Target Values Data Sources Responsibility Description/ Comments Base Core Indicator Name Unit Frequency and for Data line YR1 YR2 YR3 YR4 YR5 Methodology Collection MOFA Cumulative targets. IOTC undertakes a periodic SWIO countries IOTC assessment (Compliance (or annual) assessment of compliance of the comply with IOTC using Division) using countries to the updated IOTC resolutions for resolutions for - % 72.0 - - - - 77.0 Annual Compliance Formal IOTC management of tuna fishery. management of Reports Compliance Tuna Fishery (baseline: 2015) Reports MOFA Same as above. IOTC assessment (Sub-Indicator) (Compliance using Compliance by Division) using - % 78.0 - - - - 83.0 Annual Compliance Maldives to the Formal IOTC Reports IOTC regulations Compliance (baseline: 2015) Reports Vessels complying Cumulative targets. Current fleet size is 1,100. Annual analysis with IOTC Estimated that fleet size will remain at similar of cases of non- MOFA requirements on level. - % 0 0 0 25% 50% 90% Annual compliance (Compliance monitoring and using real-time Division) reporting. monitoring data Mariculture Established and operational mariculture will Yes/ Quarterly established and - No - - - - Yes Quarterly PMU mean all of the following: (i) all processes for No Progress reports operational commercial supply of inputs required for Cumulative Target Values Data Sources Responsibility Description/ Comments Base Core Indicator Name Unit Frequency and for Data line YR1 YR2 YR3 YR4 YR5 Methodology Collection mariculture (cages, fingerlings, and fish feed) are established; (ii) to supply fingerlings to the out- grower farms, hatcheries are established, operational, producing and supplying fingerlings, (ii) a quarantine facility is established and fully operational to facilitate supplementary import of fingerlings; (iii) at least 50 out-grower farms have initiated production; and (iv) at least 20 out- grower farms have completed one batch of production and sold the harvested fish products at a profit. Cumulative targets. Direct beneficiaries of the project are principally: (1) households who receive support from the project to start mariculture out-growers; (2) persons employed Direct project in activities and enterprises supported by the beneficiaries (of project; (3) the professionals who receive which share of N 0 50 100 400 900 3600 Quarterly enhanced skill training from the project; (4) Y Quarterly PMU female (%) (-) (10) (10) (15) (15) (20) Progress reports community members who receive capacity beneficiaries) building through substantial training, or through direct exposure to the project activities; and (5) persons employed in value chains created by the activities supported by the project. Each household, where supported, will be assumed to be constituted by 5.9 persons. Share of target Cumulative targets. Data will be disaggregated by Perception beneficiaries with gender and age group cohorts. The perception survey in Year 1, rating ‘satisfied’ or Y % - - - 60 - 80 Annual PMU survey in Year 1 (even if all beneficiaries are not and during MTR above on project identified) will establish baseline. and ICRR interventions Intermediate Results Indicators Cumulative Target Values Data Sources Responsibility Description/ Comments Base Core Indicator Name Unit Frequency and for Data line YR1 YR2 YR3 YR4 YR5 Methodology Collection Provision of Annual targets. Supporting the capacity will support to the include convening, organizing and facilitating Island Countries to Reports before joint negotiation stance (described in a joint Yes/ improve their - No - Yes Yes Yes Yes Annual and after IOTC MMRI/PMU draft) prior to each IOTC annual meeting. No negotiation annual meetings capacity within IOTC IOTC Compliance Cumulative targets. IOTC Support Mission MoFA Compliance completed in - N 0 1 2 3 4 5 Annual Compliance Support Mission Maldives Division Reports (cumulative) Key policy or legal Annual targets. These may include: (i) Fisheries instruments Six- Policy; (ii) Revision of relevant policies to meet - N 0 - 1 1 2 16 Progress Reports PMU/MoFA updated in Monthly UNCLOS requirements: (iii) marine zoning; and Maldives (iv) any relevant management plans. Vessels inspected Six- Cumulative targets. Vessels in the entire fleet are - N 0 0 100 500 1100 1100 Progress Reports PMU under MCS Monthly expected to be inspected. Cumulative targets. As per IOTC recommendations 5 percent of all fishing trips On-Board Vessel (total trips are 100,000 per year). Electronic Yes/ Six- ‘System established’ would mean installation, Observation - No - - - - Yes Progress Reports PMU No Monthly testing and commissioning of the electronic System established observer systems with a capacity to report at and operational least 5 percent of the total fishing trips. This targeted capacity of reporting is to comply with Cumulative Target Values Data Sources Responsibility Description/ Comments Base Core Indicator Name Unit Frequency and for Data line YR1 YR2 YR3 YR4 YR5 Methodology Collection the IOTC requirements of 5 percent of all fishing trips are to be observed and reported each year. The Mariculture Research and Development facility is completed and operational when: (i) all requisite infrastructure and equipment for carrying the intended research and training of Mariculture the target groups are in place; (ii) the research Research and program is successful in establishment of at least Development Yes/ Six- - No - - - - Yes Progress Reports PMU two native or endemic fish species; (iii) the Facility is No Monthly commercial hatching and production processes completed and for at least two fish species is demonstrated; and operational (iv) the requisite number of qualified and experienced staff are in place to operate the science program, the operation of the facility and conduct training program for the target groups. Viability Cumulative targets. Number of out-grower farms demonstrated for (at household level) that become viable (when out-grower farms annual operating cost is not more than 70 Six- of groupers (or - N 0 0 0 20 20 20 Progress Reports PMU percent of the value of annual production). Monthly other species equivalent in value) Operational capacity for producing and supplying fingerlings is established when: (i) the quarantine Operational facility is capable of processing imports of at capacity for Yes/ Six- least 20,000 fingerlings per month; (ii) production and - No - - - - Yes Progress Reports PMU No Monthly construction of hatcheries with a capacity of supply of producing a total of at least 150,000 fingerlings fingerlings in place per month are completed, and, (iii) at least 30 requisite operational staff with needed Cumulative Target Values Data Sources Responsibility Description/ Comments Base Core Indicator Name Unit Frequency and for Data line YR1 YR2 YR3 YR4 YR5 Methodology Collection qualification and training are in place to operate the hatcheries. Out-grower The project is creating the entire extension mariculture farms Six- services for mariculture (not in place currently). - % 0 0 10% 30% 60% 90% Progress Reports PMU receiving extension Monthly services. .