March 01, 2022 H. E. Hekuran Murati Minister Ministry of Finance, Labor and Transfers Mother Teresa Street 1000 Pristina Republic of Kosovo Kosovo: Water Security and Canal Protection Project (IDA Credit No. 5902-XK) Amendment No. 1 to the Financing APreement Excellency: We refer to the Financing Agreement (the Agreement), dated January 27, 2017, between the Republic of Kosovo ("Recipient") and the International Development Association ("Association") for the above-mentioned Project (the Project). We also refer to your (i) letter dated October 26, 2021 requesting certain amendments to the Agreement, and (ii) letter dated February 2, 2022 requesting cancellation of an amount of EUR 6,637,573.44 from the above-mentioned Credit. We are pleased to inform you that the Association agrees to your request and proposes to amend the Agreement as follows: 1. Cancellation. In view of the foregoing, and in accordance with the provisions of Section 8.01 of the General Conditions for IDA Financing applicable to the Financing Agreement, the World Bank hereby cancels, as of February 2, 2022, an amount of the Credit equal to EUR 6,637,573.44 allocated to the Category (1) set forth in Section IV.A.2 of Schedule 2 to the Financing Agreement. The withdrawal table set forth in Section IV.A.2 of Schedule 2 to the Financing Agreement has been revised accordingly and the revised withdrawal table is attached to this letter (Annex 1). The amortization schedule set forth in Schedule 3 to the Financing Agreement, is being revised by the World Bank as a result of the cancellation, and the revised figures will be sent to you shortly. The commitment charges on the total amount cancelled cease to accrue from the February 2, 2022. 2. Other amendments. (i) Part 1 (b) in Schedule 1 of the Agreement is amended to read as follows: "(b) Conducting technical design and preparation of technical documentation for the reservoir along the canal in the Mehiliq area (in Vushtri municipality). (ii) Section IV.B.2 is revised to establish October 31, 2023 as Closing Date. (iii) For clarification purposes, the term "Mihaliq Dam" is replaced throughout the Financing Agreement with the term "Mihaliq Reservoir". 3. Performance indicators. The performance indicators for the Project referred to in Section II.A. 1 of Schedule 2 to the Agreement are hereby amended to read as set forth in Annex 2 to this Amendment Letter. Unless the context otherwise requires, the capitalized terms used in this letter have the same meanings ascribed to them in the General Conditions or in the Agreement. Except as specifically amended herein, all the other terms and conditions of the Agreement shall remain in full force and effect. Please confirm the agreement of the Recipient to the amendment set out above by countersigning and dating the confirmation set forth below, and returning one fully signed original of this Amendment Letter to us. Upon receipt by the Association of the copy of this letter of Amendment Letter duly countersigned by the authorized representative of the Recipient, this Amendment Letter shall become effective as of the date of countersignature ("Amendment Effective Date"). Sincerely INTERNATIONAL DEVELOPMENT ASSOCIATION N) Massimillano Paolucci Country Manager AGREED: REPUBLIC OF KOS By: Athrzd reca Name: I leku-rail 41_____ ___ Title: Minister of Finance. Labor and Transfers Date: March 0 L 2022 Annex 1 Category Amount of the Credit Percentage of Allocated Expenditures to be (expressed in EUR) Financed S(inclusive of Taxes) (1) Consultants' services under Part 1(b) 362,426.56 100% of the Project (2) Goods, works, non-consulting 15,000,000 100% services, consultants' services under all Parts of the Project (except Part 1(b)); Incremental Operating Costs and Training Cancelled as of February 2, 2022 Cancelled pursuant to 6,637,573.44 Section 8.01 of the General Conditions TOTAL AMOUNT 22,000,000 � � ev � � с� а� са .� +� v д и � � � и �р � � N � � с О 3 W � о и � С сд о и � О .� сд � а, W У С С}' О GN ^ r.+ � U �, � � •� G � U �"' И О О у � � и N у� 'sc�. о �' � � ^' � а 3 +� м °о s.и. с й г0 о � ''�о'i ,'�,о' q о д � � L 'b ^б О U � � Ф с • � � ..u.i [ О � � � т' ° �,'' о � � � а U � ° р ь, ,�",, а� � N о G. � 3.- и � ° � � � �ь� � С � '�. й и о Сб О ' ^ Q � и N о "t�' G[ � U у О И а '� U О ь, а, а� .а; � р л °о i0 ,� й о 1Zr .� у on � � � • i„ и о �+ й � � о а, � � с N И � � GJ � У fC '� � т О О �.И.+ О � О О � U � (.i � т о � а й •� 'r f1' р � У U \ ? � ,� {� � о �. а а� � � Е � Z +. а ш °' ,� у г£о " о �о -- v�' с � У � а�+. р. г о v й д 3� ° Е � � о с 0 ,� � ш у и �'« у c�i т> йг �� v� О U и р С� и� ш рр N � � -р р � � �р Ор � б� О� � V � и 00 �� � П1 С С .о � о ш �v ,� У Е р � v � и • �1 р N а t ` s. ,L' о � � и�•� � +� � ш С, Н� а а � го n � ��3 а а .+ а, � .. 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