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DOCUMENTS
The World Bank                                       1818 H Stre4 N.W.         (202) 473-1000
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMFNJT  Wrippg .C 20433       Cable Address: INTBAFRAD
INTERNATIONAL DEVELOPMENT ASSOCIATION                U.S.A.                    Cable Address: INDEVAS
March 25, 2014
Honourable Dr. Maxwell Mkwezalamba
Minister of Finance
Ministry of Finance
P.O. Box 30049
Capital City
Lilongwe 3
Honourable Minister:
Republic of Malawi: Second National Water Development Project
(Credit No. 4946-MW; Grant No. H690-MW)
First Amendment to Financing Agreement
We refer to the Financing Agreement (the Agreement) between the Republic of Malawi (the
Recipient) and the International Development Association (the Association) dated November 2, 2011,
for the above mentioned Project, as amended. We also refer to your letter dated December 4, 2013,
requesting the Association to reallocate the proceeds of the above-referenced Financing Agreement.
We are pleased to inform you that the Association agrees to your request and proposes to
amend the above as follows:
Paragraph 2 of Section IV of Schedule 2 of the above Financing Agreement is amended to
read as shown in the Annex to this letter.
All other provisions of the Agreement, except amended herein, will remain unchanged.
Please confirm your agreement to the foregoing by countersigning, dating, and returning to us
the enclosed copy of this letter. Upon receipt by the Association of the copy of this letter
countersigned by you, this amendment will become effective as of the date of the countersignature.
Sincerely,
INTERNATIONAL DEVELOPMENT ASSOCIATION
Kundhkviadiresan
Country Director for
Malawi, Zambia and Zimbabwe
Africa Region


Honourable Dr. Maxwell Mkwezalarnba                  -2-                        March 25, 2014
AGREED:
REPUBLIC            AWL
Honoura le Dr. Maxwell Mkwe ana
Minister of Finance
Date:


Honourable Dr. Maxwell Mkwezalamba               -3-                      March 25, 2014
ANNEX
Republic of Malawi
Second National Water Development Project
(Credit No. 4946-MAI; Grant No. H690-MAI)
The following table specifies the categories of Eligible Expenditures that may be financed out of
the proceeds of the Financing ("Category"), the allocations of the amounts of the Credit and of the
Grant to each Category, and the percentage of expenditures to be financed for Eligible Expenditures
in each Category:
Amount of the     Amount of       Percentage of
Credit         the Grant       Expenditures
Category               Allocated        Allocated      to be Financed
(Expressed in     (Expressed       (Inclusive of
SDR)            in SDR)          Taxes)
(1) Goods, works and
consultants' services for Parts    10,479,000       2,800,000        100%
1(a) and 2(a)(i) of the Project
(2) Goods, works and
consultants' services for Parts    10,059,000       2,900,000        100%
1(b) and 2(a)(ii) of the Project
(3) Goods, works and
consultants' services of Part 1(c)  6,414,000       1,670,000        100%
of the Project
(4) Goods, works and
consultants' services for Part 1(d)  5,100,000      1,520,000        100%
of the Project
(5) Goods, works and
consultants' services for Part 1(e)  8,369,000      2,507,000        100%
of the Project
(6) Goods, works and
consultants' services for Part 2(b)  1,390,000        280,000        100%
of the Project
(7) Goods, works and
consultants' services for Part 3 of  5,670,000        132,000        100%
the Project
(8) Goods, works and non-
consulting services and
consultants' services for Part 4 of
the Project
(9) Goods, works, consultants'
services and non-consulting         3,102,000       2,491,000        100%
services for Part 5 of the Project
(10) Training for Part 4 of the       993,000         270,000        100%
Project
(11) Operating Costs for Part 4 of
the Poject2,244,000                          630,000        100%
the Project
(12) Unallocated                    6,000,000              0         100%
TOTAL AMOUNT                       60,000,000        15,800,000


Honourable Dr. Maxwell Mkwezalamba               -4-                     March 25, 2014
cc:    Honourable Mrs. Anita Kalinde, M.P.
Minister of Irrigation and Water Development
Ministry of Irrigation and Water Development
Honourable Dr. Cornelius Mwalwanda, M.P.
Deputy Minister of Finance
Ministry of Finance
Mr. Newby Kumwembe
Secretary to the Treasury
Ministry of Finance
Mr. Ted Sitima-Wina
Principal Secretary
Ministry of Economic Planning and Development
Mr. Sandram Maweru
Principal Secretary
Ministry of Irrigation and Water Development
Mr. Peter Simbani
Director of Debt and Aid Management
Ministry of Finance
Mrs. Victoria Geresomo
Acting Director of Monitoring and Evaluation
Ministry of Economic Planning and Development
Prof. Zachary M. Kasomekera
Programme Manager
National Water Development Programme


Honourable Dr. Maxwell Mkwezalamba               -5-                      March 25, 2014
cw & bcc: Luis Schwarz (CTRLA); M. Kariuki (AFTU1); L. Kullenberg (AFMMW)
bcc:      S. Chepkorir (CTRLA); E. Lozo, D. Ziyendammanja, Z. Kansinde (AFMMW); V. Pillai,
G. Soko (AFCZM); M. Webster, B. Asaam, WBDocs (AFTUI); C. Viola (AFTSN); S.
Mukaindo, A. Sperling, N. Sachdeva (LEGAM)