The World Bank INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION Turkey Country Office Ugur Mumcu Caddesi 88 2nd Floor, 06700, Gaziosmanpasa ANKARA – TURKEY Tel : (90-312) 459 83 00 Fax: (90-312) 446 24 42 CONFORMED COPY March 10, 2011 Mr. Ibrahim Çanakcı Undersecretary Undersecretariat of Treasury Ankara Dear Mr. Çanakcı: Re: Istanbul Seismic Risk Mitigation and Emergency Preparedness Project Loan. No. 4784-TU Amendments to the Loan Agreement It is my pleasure to refer to the Loan Agreement between the Republic of Turkey (the Borrower) and the International Bank for Reconstruction and Development (the Bank) for the Istanbul Seismic Risk Mitigation and Preparedness Project, dated October 18, 2005, as amended (the Loan Agreement). We also refer to the request from the Borrower to extend the Closing Date of the captioned Loan, to reallocate proceeds under the Loan, to increase the threshold for National Competitive Bidding of civil works contracts, to revise the Project description in Parts A.3 and B.1, and to update the Project performance monitoring indicators. We are pleased to inform you that the Bank agrees to the request. Accordingly, the Bank hereby amends the Loan Agreement as follows: 1. Section 2.03 is amended to read as follows: “Section 2.03. The Closing Date shall be December 31, 2012, or such later date as the Bank shall establish. The Bank shall promptly notify the Borrower of such later date.” 2. The loan allocations in the table in paragraph 1 of Schedule 1 are revised and the revised table reads as follows: -2- Category (1) Works and technical services (2) Goods (3) Consultant services and Training (4) Incremental operating costs (5) Unallocated TOTAL 3. Amount of the Loan Allocated (Expressed in Euro) % of Expenditures to be financed 240,480,000 100% 34,210,000 30,310,000 100% 100% 5,000,000 0 100% 310,000,000 The Project description in Part A.3 Schedule 2 is revised to read as follows: “3. Strengthening the institutional capacity of the Provincial Directorate for Disaster and Emergency Management by providing support to develop its organizational capacity, operational plans and procedures.” 4. The Project description in Part B.1 Schedule 2 is revised to read as follows: “1. Retrofitting or reconstruction of priority public facilities, including hospitals, clinics, schools, administrative buildings, student dormitories, social service facilities and infrastructure.” 5. Paragraph 1 of Section II.B of Schedule 4 is revised to read as follows: “1. National Competitive Bidding. Works estimated to cost less than $15,000,000 equivalent per contract, and goods estimated to cost less than $1,000,000 equivalent per contract, may be procured under contracts awarded on the basis of National Competitive Bidding and the additional provisions set forth in the Annex to this Schedule.” 6. The name of the Project on the cover page is revised to read as “Istanbul Seismic Risk Mitigation and Emergency Preparedness Project”. Except as specifically amended herein, all other provisions of the Loan Agreement remain in full force and effect. Additionally, the Performance Indicators for purposes of monitoring performance of the Project are revised. Accordingly, a revised Attachment to the October 18, 2005, Supplemental Letter on Performance Monitoring Indicators is attached in Annex I to this amendment letter. -3- Please confirm the agreement of the Borrower to the foregoing amendments by countersigning and dating both copies of this amendment letter and returning one of the countersigned copies to us. Upon receipt by the Bank of this amendment letter duly countersigned by the authorized representative of the Borrower, the amendments will become effective as of the date of countersignature. Sincerely, INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By /s/ Ulrich Zachau Director Turkey Country Unit Europe and Central Asia Region CONFIRMED: REPUBLIC OF TURKEY By: /s/ Evren Dilekli Title: Acting Director General Date: March 31, 2011 Annex I Annex 1: Results Framework and Monitoring TURKEY: Istanbul Seismic Mitigation and Emergency Preparedness Project Revised Results Framework PDO Current To improve the city of Istanbul’s preparedness for a potential earthquake through enhancing the institutional and technical capacity for disaster management and emergency response, strengthening critical public facilities for earthquake resistance, and supporting measures for better enforcement of building codes and land use plans. Proposed No change. Intermediate Outcomes Current Component A: Capacity of the provincial and municipal public safety organizations in Istanbul to respond to Proposed No change. Project Outcome Indicators Current Key public facilities are retrofitted to resist a major earthquake; skills and technical capacities of the relevant emergency response units are strengthened; building code enforcement and compliance with land use plans are improved. Proposed Key public facilities are retrofitted to resist a major earthquake; skills and technical capacities of the relevant emergency response units are strengthened; the transparency and efficiency of building permit issuance in two pilot municipalities are improved. Intermediate Outcome Indicators Current Component A: New communication system is installed and fully operational in emergency response facilities. Proposed (No change) New communication system is installed and fully operational in emergency response facilities. Use of Project Outcome Information Current Formulate public policies and programs for seismic risk mitigation in the country risk-prone areas. Proposed No change. Use of Intermediate Outcome Monitoring Current Component A: Assess effectiveness of the systems and training through a day-to-day application and mock exercises. Proposed No change. major disasters is enhanced; coordination between regional emergency response agencies, as well as between the Istanbul authorities and the national government are improved. Component B: Key selected public facilities are retrofitted in order to ensure their operation in the aftermath of a disaster. No change Emergency management information and communication systems are installed and used in daily operations. (No change) Emergency management information and communication systems are installed and used in daily operations. The Governorship Disaster Management Center (AYM) is strengthened. The Provincial Directorate for Disaster and Emergency Management (PDDEM) is strengthened with better technical and coordination capacities. The public safety units are provided with the adequate emergency response equipment. (No change) The public safety units are provided with the adequate emergency response equipment. The relevant agencies and volunteer groups are trained. The relevant agencies and volunteer groups are trained and public awareness campaigns reach out to Istanbul population. Component B: Around 550 public buildings retrofitted/reconstructed. Around 763 public buildings are retrofitted/reconstructed. Vulnerability assessment of selected cultural heritage buildings completed. (No change.) Vulnerability assessment of selected cultural heritage buildings completed. Define additional training needs. Support municipal and provincial governments with decision-making tools. Performance may feed into institutional changes in emergency management. Component B: Replication on the national scale of the methodology for the prioritization and strengthening of public facilities, based on transparent criteria. Exposure and wider use of new seismic strengthening techniques No change. by engineering and construction industry. Informed decisions on retrofitting/reconstruction of lifelines and vital infrastructure. Component C: Better enforcement of building codes and progress made in implementation of land use plans in selected municipalities. Improved efficiency and transparency of building permit issuance process in two pilot municipalities. Component C: Improvement in compliance with building codes and land use plans in selected Istanbul municipalities. Voluntary accreditation and training of engineers has started. Creation of a digital database of building stock and land use; established ITbased system for building permit issuance procedure which increases the process transparency, accountability, efficiency and will enable monitoring of compliance with building codes and landuse plans in two pilot Istanbul municipalities. Voluntary certified training of about 3,000 engineers. Increased donor awareness of need and opportunities to invest in protection of cultural assets. Component C: Revised policies and procedures for improved code enforcement. No change Arrangements for results monitoring Baselines Project Outcome Indicators Origin al Current Key public facilities are retrofitted to resist a major earthquake; skills and technical capacities of the relevant emergency response units are strengthened; building code enforcement and compliance with land use plans are improved. Proposed Key public facilities are retrofitted to resist a major earthquake; skills and technical capacities of the relevant emergency response units are strengthened; the transparency and efficiency of building permit issuance in two pilot municipalities are improved. Intermediate Outcome Indicators Current Proposed Component A: Component A: New communication (No change) New system is installed communication and fully operational system is installed in emergency and fully operational response facilities. in emergency response facilities. Emergency management 1 (No change) Emergency _ Target Values Data Collection and Reporting 20111 (At AF Apprsl) YR 2012 YR 2013 YR 2014 595 public buildings are retrofitted/reconstruc ted; back-up emergency management center established; digitized building stock database is established in pilot municipalities. 634 public facilities are retrofitted/reconstruc ted; the Istanbul main emergency management center is constructed and operational; automated and transparent system for building permit issuance in pilot municipalities is established. 709 public facilities are retrofitted/reconstruc ted; emergency response units are adequately equipped and emergency response plans revised; the process of building permit is automated, transparent and allows for the compliance monitoring. All targeted 763 public buildings retrofitted/reconstruc ted; emergency response units are adequately equipped and trained and emergency response plans tested. The communication system is installed in the back-up emergency management center. The communication system is installed in the main emergency management center. The communication system is installed and personnel trained in the main emergency management center. The communication system is fully operational in the main and back-up emergency management centers. Emergency management Emergency management Emergency management Emergency management information and _ Target value at time of AF appraisal becomes the revised baseline. Frequen cy and Reports Data Collec -tion Instru -ments Responsibili ty for Data Collection Biannual reports Project databa se IPCU IPCU reports Biannual reports Project databa se IPCU reports IPCU information and communication systems are installed and used in daily operations. management information and communication systems are installed and used in daily operations. The Governorship Disaster Management Center (AYM) is strengthened. The Provincial Directorate for Disaster and Emergency Management (PDDEM) is strengthened with better technical and coordination capacities. The public safety units are provided with the adequate emergency response equipment. (No change) The public safety units are provided with the adequate emergency response equipment. The relevant agencies and volunteer groups are trained. The relevant agencies and volunteer groups are trained and public awareness campaigns reach out to Istanbul population. information and communication systems are installed and used in daily operations in the back-up emergency management center. The PDDEM is staffed and equipped with basic technical capacities and tools for coordination and disaster management. information and communication systems are installed in the main emergency management center. The PDDEM has developed training and exercise program. information and communication systems are installed and personnel trained in the main emergency management center. The PDDEM has updated emergency response plans. The civil protection and emergency health units are provided with adequate emergency response equipment. The training program for students, teachers, parents, administrators, and relevant agencies was conducted; public website developed; volunteers registered/ Safe Life Campaign continues in public media and agencies. Safe Life training and campaign carried out for 75,000 participants. Volunteer system under the Governorship established. communication systems are installed and used in daily operations of the main and back-up emergency management centers. The PDDEM is strengthened with better technical and coordination capacities. Component B: Around 550 public buildings retrofitted/reconstruc ted. Component B: Around 763 public buildings retrofitted/reconstruc ted. Vulnerability assessment of selected cultural heritage buildings completed. (No change.) Vulnerability assessment of selected cultural heritage buildings completed. Component C: Better enforcement of building codes and progress made in implementation of land use plans in selected municipalities. Component C: Creation of a digital data-base of building stock and land use; established IT-based system for building permit issuance procedure which increases the process transparency, accountability, efficiency and which will enable monitoring of compliance with building codes and land-use plans in two pilot Istanbul municipalities. Voluntary certified training of about 3,000 engineers. - 595 public buildings are retrofitted/reconstructed . 634 public buildings are retrofitted/reconstructed . 709 public buildings are retrofitted/reconstructed . Vulnerability assessment of selected cultural heritage buildings completed. IT equipment is procured and installed; certificates for data security (ISO 27001) received by pilot municipalities; data digitization is in progress. Document management system established; building permit process is optimized (automated and document flow is more efficient and transparent). Municipal call centers established in both municipalities. 2,500 engineers trained. 1,500 engineers trained. Voluntary certified training provided to about 3,000 engineers. 763 public buildings are retrofitted/reconstructed .