RECOMMENDATION OF STATUTORY COMMITTEE TO: The President, International Development Association Recommendation of the Committee under Section 1 (d) of Article V of the Articles of Agreement on the Proposed Additional Credit (Uttarakhand Rural Water Supply and Sanitation Project Additional Financing) to India. The undersigned Committee constituted under Section 1 (d) of Article V of the Articles of Agreement of International Development Association (the Association) hereby submits its recommendation pursuant to said Section in respect of the proposal that the Association grant to India an additional credit in an amount equivalent to fifteen million six hundred thousand Special Drawing Rights (SDR 15,600,000). The purpose of said additional credit is to provide additional funds to supplement the financial assistance furnished by the Association under the Financing Agreement for Uttarakhand Rural Water Supply and Sanitation Project (Credit 4232-IN), dated October 16, 2006, between India and the Association, which aims to assist the State of Uttarakhand in improving the effectiveness of rural water supply and sanitation services through decentralization and increased role of Panchayati Raj Institutions and local communities in Uttarakhand and restoring services of damaged schemes in the disaster-affected areas . 1. The Committee has carefully studied the merits of the proposal to grant such an additional credit, and of the purpose to which the proceeds of the additional credit are to be applied. 2. The Committee is of the opinion that the project toward the financing of which the proceeds of such additional credit are to be applied continues to come within the purposes of the Association as set forth in Article I of said Articles of Agreement, and that said project is designed to promote the economic development of India, and is of high developmental priority in the light of the needs of India. -2- (INDIA) (Uttarakhand Rural Water Supply and Sanitation Project Additional Financing) 3. Accordingly, the Committee finds that said project continues to merit financial assistance from the Association, and hereby recommends said project for such additional assistance. COMMITTEE Senior Vice President and Group General Counsel Nominee Selected by Governor for India Regional Vice President South Asia D ed at Washington, D. C. 7~u~0 /1 2o