October 16, 2024 Mr. Alok Tiwari Joint Secretary (Fund Bank) Department of Economic Affairs Ministry of Finance Government of India North Block New Delhi - 110 001 Dear Mr. Tiwari: INDIA: Additional Financing for the Karnataka Urban Water Supply Modernization Project (Loan No. 9324-IN) Notification – Partial Cancelation of Loan Proceeds We refer to the Loan Agreement, dated July 31, 2024, between INDIA (“Borrower”) and the International Bank for Reconstruction and Development (“Bank”) (“Loan Agreement”), and to the Project Agreement, dated July 30, 2024, between the Bank on the one side, and the State of Karnataka (“Project Implementing Entity”) and Karnataka Urban Infrastructure Development and Finance Corporation (“KUIDFC”) on the other (“Project Agreement”), in connection with the Loan Agreement, for the Additional Financing of the Karnataka Urban Water Supply Modernization Project (“Project”). Unless the context otherwise requires, the capitalized terms used in this letter has the meanings ascribed to them in the General Conditions, Loan Agreement, or in the Project Agreement. We also refer to a letter, dated August 6, 2024, and an email of August 12, 2024, from the Ministry of Finance, Department of Economic Affairs, requesting partial cancelation of Loan proceeds. In view of the foregoing, and in accordance with the provisions of Section 7.01 of the General Conditions, the Bank hereby cancels, as of August 6, 2024, an amount of ¥ 4,011,633,250. Accordingly, the withdrawal table set forth in Section III.A of Schedule 2 to the Loan Agreement is replaced with a new table as set forth in Annex hereto. The commitment charges on the total amount cancelled cease to accrue from August 6, 2024. Sincerely, INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT _________________________ Auguste Tano Kouame Country Director India Country Office, 70 Lodi Estate, New Delhi 110 003, India P.O. Box 416, Phone: +911141479301 / +911149247601 Mr. Alok Tiwari -2- October 16, 2024 Annex Additional Financing for the Karnataka Urban Water Supply Modernization Project (Loan No. 9324-IN) REVISED WITHDRAWAL TABLE Category Amount of the Loan Percentage of Expenditures Allocated to be financed (expressed in YEN) (inclusive of Taxes) (1) Works for Part A.1. of the 75% Project (Hubbali Dharwad) 7,724,994,000 (2) Works for Part A.2. of the 75% Project (Belagavi) 4,737,494,000 (3) Works for Part A.3. of the 75% Project (Kalaburagi) 5,099,994,000 (4) Operator Fees 1,994,584,000 50% (5) Goods, non-consulting 20% services, and consulting services, Incremental Operating Costs and Training for Part B, C, and D of the Project 354,676,000 (6) Goods, Consultancy, non- 96,279,180 100% Consultancy Incremental Operating Costs and Training for Part A.1 (3),A 2 (3), and A.3 (3)of the Project (7) Emergency Expenditures 0 100% under Part E of the Project (8) Front-end Fee 50,145,570 Amount payable pursuant to Section 2.03 of this Agreement in accordance with Section 2.07 (b) of the General Conditions Mr. Alok Tiwari -3- October 16, 2024 (9) Interest Rate Cap or Interest 0 Amount due pursuant to Rate Collar premium Section 4.05 (c) of the General Conditions Canceled as of August 6, 2024 4,011,633,250 TOTAL AMOUNT 24,069,800,000 Mr. Alok Tiwari -4- October 16, 2024 cc: Mr. Parameswaran Iyer, Executive Director, World Bank Mr. Hemang Jani, Senior Adviser to Executive Director, World Bank Mr. Anil Das, Adviser to Executive Director, World Bank Government of India Mr. Simrandeep Singh, Director, DEA, Ministry of Finance Ms. Juhi Mukherjee, Controller of Aid Accounts and Audit, DEA, Ministry of Finance Mr. Rajesh Pant, Deputy Controller, Aid Accounts and Audit Division, DEA, Ministry of Finance Mr. Anurag Jain, Secretary, Ministry of Housing and Urban Affairs Government of Karnataka Mr. L.K. Atheeq, Additional Chief Secretary, Finance Department Dr. Vishal R., Secretary (Fiscal Reforms), Finance Department Mr. Umashankar SR, Additional Chief Secretary, Urban Development Department Ms. Deepa Cholan, Secretary, Urban Development Department Karnataka Urban Infrastructure Development and Finance Corporation Mr. Sharat B, Managing Director Mr. Nandeesha JR, Task Manager, KUWSMP Mr. Alok Tiwari -5- October 16, 2024 Cleared with and bcc: M/s. Joop Stoutjesdijk, Acting Practice Manager (SSAW1); Victor Ordonez, Senior Finance Officer (WFACS); Mohammad Nadeem, Legal Operations Officer (LEGAS) bcc: Messrs./Mmes India CMU General; Umali-Deininger, Alkan, SAR Planet Front office, Kulichenko (SSADR); Altimari, Nadeem, Venugopal (LEGAS); Ordonez, Mundra, Shivakumar (WFACS); Gulyani Singh, Advani, Pierre-Charles (SSAW1); Ueda (SEAW1); Thakur (ECRSA); Krishnamurthy (ESAG1); Lal (ESARU); Chatterjee (SSAS2); Jain (SSAEN); Choudhary, Parambaloth (SACIN) India Country Office, 70 Lodi Estate, New Delhi 110 003, India P.O. Box 416, Phone: +911141479301 / +911149247601