The World Bank New Delhi Office Telephone : 24617241/24619491 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT 70 Lodi Estate Cable Address: INTBAFRAD INTERNATIONAL DEVELOPMENT ASSOCIATION New Delhi - 110 003 Mailing Address: P.0 Box 416 India Facsimile : 24619393 October 21, 2013 Mr. Nilaya Mitash JOF RWC:l Joint Secretary (MI) Department of Economic Affairs Ministry of Finance Government of India Room No. 40-B, North Block New Delhi 110001 Dear Mr. Mitash: India: Additional Financing for the Second Karnataka Rural Water Supply and Sanitation Project (Cr 4768-IN) Partial Cancellation of Credit Amount and Project Restructuring I refer to the Financing Agreement dated July 17, 2010 (the "Financing 10,011 Agreement") between India (the 'Recipient") and the International Development Association (the "Association") for the Second Karnataka Rural Water Supply and Sanitation Project (the "Project"). I also refer to the letter dated September 23, 2013, from the Department of Economic Affairs, Ministry of Finance, requesting us to cancel US$ 12 million of the Credit amount of the above referenced Credit. I am pleased to confirm that the Association hereby cancels an amount of SDR 7,832,234, equivalent of US$ 12 million Credit from the Credit No. 4768-IN, effective as of September 23, 2013, the date that the Bank received the letter of request. The withdrawal table set forth in Section IV of Schedule 2 to the Financing 5 ~ Agreement has been revised accordingly and the revised withdrawal table is attached to this letter. Please confirm your agreement by signing below and retuning one fully executed original of this letter to us and retaining one original for your records. HeadquarterL Washington DC U USA Mr. Nilaya Mitash -2- October 21, 2013 Please do not hesitate to contact us if you have any questions regarding this matter. With regards, Yours sincerely, Onno Ruhl Country Director, India AGREED INDIA B y ...................... Name ...................... Title ...... .............. Date ...... ............. Mr. Nilaya Mitash -3- October 21, 2013 Attachment India: Additional Financing for the Second Karnataka Rural Water Supply and Sanitation Project (Cr 4768-IN) Revised Withdrawal Table Category Amount of the Credit Percentage of Expenditures Allocated (expressed in to be Financed (inclusive of SDR) taxes) (1) Civil Works, goods and 91,467,766.00 85% services (including consultant and non- consultant services), training and incremental operating costs (2) Amount cancelled as of 7,832,234.00 September 23, 2013 Total Amount 99,300,000.00 Mr. Nilaya Mitash -4- October 21, 2013 cc: Mr. Mukesh Nandan Prasad, Executive Director (India), World Bank Mr. Manoj Pant, Senior Adviser to Executive Director (India), World Bank Ms. Sheyphali B. Sharan, Director, Department of Economic Affairs, Ministry of Finance, Government of India, New Delhi Mr. S. G. Dastidar, Controller of Aids Accounts & Audit, Department of Economic Affairs, Ministry of Finance, Government of India, New Delhi Mr. Satyabrata Sahu, Joint Secretary (Water), Ministry of Drinking Water and Sanitation, Government of India, New Delhi Ms. Saraswati Prasad, Joint Secretary (Sanitation), Ministry of Drinking Water and Sanitation, Government of India, New Delhi Mr. S. V. Ranganath, Chief Secretary, Government of Karnataka, Bangalore Mr. Aravind Srivatsav, Secretary, Department of Finance, Government of Karnataka, Bangalore Mr. T M Vijaya Bhaskar, Principal Secretary, Department of Rural Development and Panchayat Raj, Government of Karnataka, Bangalore Mr. Navinraj Singh, Director, KRWSSA, Government of Karnataka, Bangalore F.No. 3/14/2012-FB-III Government of India Ministry of Finance Department of Economic Affairs North Block, New Delhi, 7h November Mr. Onno Ruhl, Country Director, World Bank, 70, Lodi Estate New Delhi- 110003 Dear Sir, Please refer to World Banks letter dated October 21, 2013 regarding Partial cancellation of credit amount of US $ 12 million and Project Restructuring for the 2nd Karnataka Rural Water Supply and Sanitation Project [cr. 4768-In]. Government of India confirms the agreement of cancellation of US $ 12 million dully signed by Joint Secretary (MI), Department of Economic Affairs and return herewith one original copy of it to World Bank. Yours Sincerely (S.K. Samantaray) Under Secretary (FB) Tel. 2309 4548 Copy for Information to Dr. S. Satish, Senior Social Development Specialist, World Bank, 70 Lodi Estate, New Delhi. CD'S Incoming Mail Date: 2,o For action: CC: CD's File