The World Bank                                                       1818 H Street N.W.             (202) 477-1234
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT                Washington, D.C. 20433         Cable Address: INTBAFRAD
INTERNATIONAL DEVELOPMENT ASSOCIATION                                U.S.A.                         Cable Address: INDEVAS


                                                                                            CONFORMED COPY

                                                                                                February 7, 2011

            H.E. Dragan Vrankic
            Minister of Finance and Treasury
            Ministry of Finance and Treasury
            Trg Bih 1
            71000 Satajevo
            Bosnia and Herzegovina




                      Re: Bosnia and Herzegovina: Energy Community of South East Europe Program –
                                          ECSEE Project (Credit No. 4197-BOS)
                                        Amendment to the Financing Agreement


            Excellency:


                    We refer to the Financing Agreement (the Agreement) for the above mentioned
            Project between Bosnia and Herzegovina (the Borrower) and the International Development
            Association (the Association) dated August 21, 2006.

                    We also refer to the request on behalf of the Borrower, contained in your letter dated
            November 30, 2010, to amend the Project to include financing of a study on potential uses of
            solar energy.

                   We are pleased to inform you that, after due consideration, the Association has
            acceded to the aforementioned request. Therefore, the Financing Agreement is hereby
            amended as follows:

                    In Schedule 1 Part B.2. of the Agreement a phrase “other renewable resources� is
            inserted after the words Dam Safety Components, and the text is revised to include a sub-
            category “(iv) studies to assess solar energy potential�.

                    The amended Schedule 1 Part B.2. of the Agreement now reads as follows:

            2. Technical Assistance for Dam Safety Components and Other Renewable Resources

             Provision of technical assistance to the staff of EPHZHB PIU for : (i) studies to confirm the
            design of the rehabilitation measures, help the PIU prepare the bidding documents for the
            dam safety components, assist in the procurement process and evaluation of bids, and monitor
            Project implementation; (ii) the review and evaluation of dam operation and maintenance




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procedures, including a review of existing dam safety plans, and assistance in upgrading these
as may be necessary; (iii) procurement training; and (iv) studies to assess solar energy
potential.

          All the other terms and conditions of the Agreement shall remain in full force and
effect.

        Please confirm your agreement to the foregoing amendment by signing and dating
the confirmation on the enclosed copy of this Letter and returning it to us. The changes will
come into force and effect as of the date of your countersignature and upon receipt by the
Association of the said duly countersigned original Letter.




                                           Sincerely,



                                      /s/ Jane Armitage
                          Country Director and Regional Coordinator
                                     South East Europe
                                  Europe and Central Asia




CONFIRMED AND AGREED:


BOSNIA AND HERZEGOVINA


By    : /s/ Dragan Vrankic

Name: Dragan Vrankic

Title : Minister of Finance and Treasury

Date : June 29, 2011