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 24-Feb-2025 Date: _______________ H.E. Carla Loveira Minister of Economy and Finance Ministry of Economy and Finance Avenida 10 de Novembro, No 929 Maputo Caixa Postal No 272 Mozambique Excellency: Re: REPUBLIC OF MOZAMBIQUE: Urban Sanitation Project Grant Number D4750-MZ Third Amendment to the Financing Agreement We refer to the Financing Agreement between the Republic of Mozambique (“Recipient”) and the International Development Association (“Association”), dated June 6, 2019, as amended (“Agreement”). We also refer to the discussions that were held during the October 2024 Project Implementation Support mission, as documented in the Aide-Memoire dated [ ]. We are pleased to inform you the Association agrees to your request and proposes to amend the Agreement as follows: 1. Part 1 of Schedule 1 to the Agreement is hereby deleted and replaced with the following: “Part 1: Priority Sewerage Investments in Maputo, Quelimane and Tete Supporting sewerage investments, including: a. Priority sewerage investments in Maputo, including, inter alia: (i) rehabilitation and expansion of the Infulene wastewater treatment plant; (ii) rehabilitation and upgrade of sewers; (iii) rehabilitation and upgrade of pumping stations; (iv) upgrade of existing sewer connections; and (v) the financing of Land Expenditures associated to resettlement for compensation, and rehabilitation of Affected Persons resulting from the works to be carried out under this Part 1.a.” b. Priority sewerage investments in Quelimane, including, inter alia: (i) construction of a wastewater treatment plant; (ii) rehabilitation and expansion of sewers; (iii) upgrade of existing sewer connections; (iv) construction of pilot condominial sewer systems to serve new connections; (v) rehabilitation of small to medium scale drains to channel excess storm water and water-logged areas, and reduce the risk of urban floods; and (vi) the financing of Land Expenditures associated to resettlement for compensation, and rehabilitation of Affected Persons resulting from the works to be carried out under this Part 1.b.” c. Design of Priority sewerage infrastructure works for Tete, limited to those of the sewerage network and wastewater treatment plant, and including the financing of Land Expenditures associated to resettlement for compensation, and rehabilitation of Affected Persons resulting from the works to be carried out under this Part 1.c.”” 2. The table in Section III.A of Schedule 2 to the Agreement is deleted and is replaced with the table in the Annex. 3. The following definition is added to the Annex in alphabetical order, and the remaining definitions will be renumbered accordingly: ““Land Expenditures” means cash compensation and other assistance paid in cash for economic displacement related to the implementation of a Resettlement Action Plan or RAP under the Project.” Except as specifically amended by this amendment letter, all other provisions of the Grant Agreement shall remain in full force and effect. Upon receipt by the Bank of a copy of this amendment letter duly countersigned by the authorized representative of the Recipient, the above amendments to the Grant Agreement shall become effective as of the date of countersignature. Please confirm the agreement of the Recipient to the amendments set forth above by signing, dating and returning to us the enclosed copy of this amendment letter. Very truly yours, INTERNATIONAL DEVELOPMENT ASSOCIATION By____________________ Idah Z. Pswarayi-Riddihough Country Director for Mozambique Africa Region AGREED: REPUBLIC OF MOZAMBIQUE By: _____________________ Authorized Representative Carla Loveira Name:_____________________ Ministra das Financas Title:______________________ 27-Feb-2025 Date:______________________ 2 Cc: Executive Director Administração de Infra-Estructuras de Agua e Saneamento (AIAS) Maputo, Mozambique 3 ANNEX Revised Withdrawal Schedule Section III.A of Schedule 2 Amount of the Grant Percentage of Expenditures to be Allocated Financed “Category (expressed in SDR) (inclusive of taxes) (1) Goods, works, non- 43,708,994 100% consulting services, and consulting services, Training and Incremental Operating Costs under Parts and 4 (d) of the Project (2) Goods, non-consulting 8,450,337 100% services, and consulting services, Training, Incremental Operating Costs under Parts 2, 4(a), 4(b) and 4 (c) of the Project (3) Performance-based 7,930,000 100% Grants under Part 3 of the Project (4) Emergency 20,385,107 100% Expenditures under Part 5 of the Project (5) Resettlement 975,612 100% Expenditures under Part 1 of the Project (6) Refund under the 1,450,000 Amount payable pursuant to Section Preparation Advance 2.07 of the General Conditions TOTAL AMOUNT 82,900,000” 4