*OFFICIAL 10; ?(jU1MENTSiJ

ISupplemental Letter

OFFICE NATIONAL DE L'ELECTRICITE ET DE L'EAU POTABLE

bepteyhLec AR, 2013

International Bank for Reconstructionand Development1818 H Street, N.W.Washington, D.C. 20433United States of America

Re: Loan No. 7564-MA(Office National de l'Electricit6 et de 1' Eau Potable (ONEE) Support Project (formerly,Office National de l'Electricit6 (ONE) Support Project))Project Monitoring Indicators

Dear Sirs and Mesdames:

This refers to the provisions of Section II.A. of Schedule 2 to the Loan Agreement between the

International Bank for Reconstruction and Development (Bank) and Office National de l'Electricit6 et de 1'

Eau Potable (the Borrower) for the above-captioned Project.

The Borrower hereby confirms to the Bank that the indicators set forth in the attachment to this

letter shall serve as a basis for the Borrower to monitor and evaluate the progress of the Project and the

achievement of the objective thereof.

This Supplemental Letter replaces and supersedes the Supplemental Letter No.2 dated June 23,2008 signed by Office National de l'Electricit6.

Very truly yours,

OFFICE NATIONAL DE L'ELECT ET DE L'EAU POTABLE

ByAut orized resentative

Attachment

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Attachment ISupplemental Lett(

Project Monitoring IndicatorsOffice National de l'Electricitk et de I'Eau Potable (ONEE) Support Project

PDO Project Outcome Indicators Use of Project OutcomeInformation

Increase efficiency and reliability 1.reduced transmission losses Input to assess achievement of

of electricity supply the PDO

2. reduction of un-served energyMonitoring by ONE of the

3. electricity savings due to CFLs performance (efficiency and

deployment reliability) of the transmissionand distribution system.Annual Report and other ONEstatistical documents

Input to the ImplementationCompletion Report

Intermediate Outcomes Intermediate Outcome Use of Intermediate Outcome

Indicators Monitoring

Targeted Beneficiaries reached Direct Project Beneficiaries Assessment, by both ONEE

(Core indicator) (number), of which female (%) PMU and Bank, of progresstowards achievement of PDO

Progress in implementation of Transmission lines constructed Assessment, by both ONE PMU

the transmission and distribution under the project- (Km) and Bank, of progress towards

infrastructure Number of substations added achievement of PDO andformulation of corrective actionsif needed

Progress in marketing CFLs Number of CFLs distributed Assessment of progress towardsachievement of PDO and

formulation of corrective actionsif needed

Progress in implementing the TA Progress in tariff, Assessment of progress towards

subcomponents contractualisation and VER achievement of PDO and

studies formulation of corrective actionsif needed

i~ LI. 11u~AI1t. 1,at - A IL I,1UIt..CLLu1 V allU IVU IIIIII,IIL%,U III E,i ay at %., UItIJP%,u- ~. UI %,~ i zaLVLI nav%,Y a n%,vv 3%,I#IUUIALU I%J L~.uiiiut u AM,.

extension of the closing date and realistically track project implementation of sub-components that have been delayed.

Project Development Objective (PDO):

The objective of the Project is to increase the efficiency and reliability of electricity supply to electricity consumers.

Revised Project Development Objective:

No changes to the PDO.

D=Dr Cumulative Target Values**

oppedPDO C=Co Data Respons

Level , ntinue Unit o Basel Freq Source ibility

tesults o N= Measu Bae uenc / for Data

ndcat i New re 2008 2009 2010 2011 2012 2013 2014 2015 y Metho Collecti

ors* dology on

R=Revised

ndicatr One:lectricransmision StatistiDsses Annu calor ] R % 4.7% 3% al Report ONEE

[HV s.nd HV;rid400ond 225

ndicat)rrwo: Statistiknnual MW 400 Annu cal

mserve R h 832.7 MWh al Report ONEE

I5mergy'or60(V MV

rid (inlWh) ___

Number of

CFLsplaced

andensuin

gelectric

itysaving

s(progre

ndicat ssr reports'hree:lectric 472.7 Assum

GW . (cumulat Annu ptions:avings R GW 0 47.5 304.7 419.1 440.1 450.4 ed total al - P for ONEE.ue to h of untilconvenIFLs 2134.5) 2012 tionaleploy lampsnent = 85W

in (averajWh) ge)

- Timeof useper day= 3.5hours(average)- P forCFL =18W- Life

4

cycle =

10,000hoursNumbe

r ofCFLsplaced

andensuin

gelectric

itysaving

S

ndicat (progre

r ss

Iour: Annu reports

'eak al, )ower (recur Assum

avings R MW 0 182.9 192 192 rent ptions :

ue to MW MW MW from - P for

FLs 2014 conven

eploy onwa tional

rient rd) lamps

in = 85W

AW) (average)- Timeof useper day= 3.5hours(average)- P forCFL=18W

5

- _- Lifecycle =

10,000hours

(milladicat(ml

ion),r of

ivte X whic 0 0 0 0 0 0 0 0 30(51) ONEE

roject femenefic aletries

INTERMEDIATE RESULTS

D=Dr Cumulative Target Values**

opped Respon

PDO C=Co Data sibility

Level , ntinue Unit of Basel Freq Source/ for

eesults N= Measu Be 2009 2010 2011 2012 2013 2014 2015 nenc Method Data

ndicat New re ology Collect

ors* ion

=Revised L I

I I

Intermediate Result (Component One - Infrastructure Investments):

1. Progress in implementation of the transmission and distribution infrastructure

Revised Intermediate Result (Component One- Infrastructure Investments):

Unchanged

ntermeHate 13% of 40 %of 67% 88% of 100%of

Tesult total line total line of total the line Annu

ndicat -1 Text No total line (120 al Progress ONEE

>r line 100% 66% line km) until Reports

f:One Studies of Topograp 60%M 2012

'ine 400 Environm hic 60% ounting 40%

'cV_ ental studies Civil comple Unrollin

6

louble impact + complete works ted grcuit) 33%Topo d comp + +fediou graphic + leted 60% 100%Re

I2- studies 40%Civil + Unrolli ception)

hane + works 40% ng

(120 22%Suppl + Moun

W) - y and 44%Supp ting

'K-01 delivery ly and +delivery 33%S

upplyanddelive

ry

Fiterme Studies Studie Studies

iate and s and and

,esult Civil Civil Civil

ndicat Work: I Work Work: 1

r 0%(SI) :60% 00%

:Two and 35% (Sl) (Sl)

ines (S2) and +

'00 kV + 85% Supply:

single Supply: (S2) 100%

ircuit) 10% + (Sl)(Si) and Suppl + Every

oafiEss R Text lno 30% y: Mounti seme pors ONEE

rouira (S2) 55% ng: 90% ster+ (SI) (SI) and

'hamai Mounti and 100%

(2x55 ng: 0% 80% (S2)

m) (SI) and (S2) Tests

IND 15% + and

:onnect (S2) Moun Commis

on of ting: sioning:

ine 400 40% 50%

CV (Sl) (S2)

'double and Tests __I

7

rcuit) 65% and

hane (S2) Commissioning:

hicha 100%

va to (Si)

ibstati

'hamai- TK-

terme 13% of 40 %of 67% 88%of 95%of 100%of

ate total line total line of total the line the line

lesul total line (1*70+ 6 (1*70+ 6

idicat 100% 66%*Top line km) km)

r Studies of ographic 60%

:One Environm studies 60% Mounti 35% 5%

ne 225 ental complete Civil ng Unrollin Unrollin

V impact + d works comple g g

iouble 33%Topo + comp ted + +

ircuit) graphic 40%Civil leted + 90% 10%

. studies+ works+ + 60% Receptio Receptio

.hamai No 22%Suppl 44%Supp 40% Unrolli n n

I nlun y and ly and Moun ng Annu Progress'ensift R Text n delivery delivery ting al Reports ONEE

'0 km) conne 33%

IND ction Suppl,onnec y and

ion of delive

ines ry!25kVsingle-ircuit)-hichaua -

forfLasar and I

8

hichava -ouged2, toibstati

'hamai

Studies Studie Studiesand s and andCivil Civil CivilWork: 1 Work Work: 10%(SI) :60% 00%and 35% (SI) (SI)

uterme (S2) and +

Vate + 85% Supply:

tesult Supply: (S2) 100%

ndicat 10% + (SI)

r (SI)and Suppi +

t:One 30% y:55% Mounti

ine 400 (S2) (SI) ng: 90% EveryNo + and (SI) and Seme Progress O

double R Text line Mounti 80% 100% Ste Reports NEE

ircuit) ng: 0% (S2) (S2) ster(SI) and + Tests

hicha 15% Moun and

ua - (S2) ting: Commis

Igadir 40% sioning:

1x160 (SI) 50%and (S2)65% Tests(S2) and

Commissioning:

100%

-(SI)

6% of 35% of 65% 79% of 95% of 100% of

total total of total total totaliterme substation substatio total substat substati substatiae n subst ion on onesull 100%Stud ation (2*450 (2*450idicat ies of 66%Topo 57% MVA) MVA)r Environm graphic 60% Mounti:Cham ental studies Civil ng 10% 4%ia No impact complete works Mountin Mountinwbstati subst + d comp g g"- ation 33%Topo + leted + +00/225 O C Text and graphic 40% + 80% 20%V & no studies Civil 29% Control Controlrtensio exten works+ Moun & essays & essays

of sion 57%Supp ting Receptio Receptioubstati ly and + n n

ns delivery 43%Slediou upplya and and'ensift delive

ry

32% of 95% of 100total total %ofsubstation substatio total

Fte n subst

tiat 100% ation

resuk Studies of 66%Civil (2*70ondica No Environm works + MA Annu Progress

r:arD Text subst ental 100% )al Reports ONE3:Dar ation impact + Mountingouazz 100%Top +100% 100%

ographic Control, starti?25/22 studies essays & ngV + Receptio

33%Civil nworks + 1

10

+ 50%Supp50%Suppl ly andy and deliverydelivery

Studies Studiesand andCivil CivilWork:9 Work: 1

iterme 5% 00%

Iate Supply: Supply:esult 90% 100%dica+ +

r No Mounti Mounti:Subst R Text subst ng: 50% ng: Annu Progress ONEE

tion ation 100% al Reports

0/22 TestsV in and)ar Commis)uledZi sioning:louh 100%

FinalReception

Studies Finaland receptio

nierme Civil n?iate Work:1esukt 00%

rndicat Supply:

?:Subst R Text subst 100% Annu Progress ONEEiinain+

al Reportsvtion ation Mut

50122Mounti50/22ngcV in 100%

Tamans Tests

9urt andCommis

11

*

sioning:100%

Intermediate Result (Component One - Infrastructure Investments):

2. Progress in marketing CFLs

Intermediate Result (Component One - Infrastructure Investments):

Unchanged

itermefateesult 4,800,00

idRtNum 4,500 4,573,47 0 Annu Progressr R ber 40,000 004 installed, 20 0ONEE

:berb,010 al Reports:Numb installed 200,000

rof in stock

'FLslaced _

Intermediate Result (Component One - Infrastructure Investments):

3. Progress in establishing the trading desk

Intermediate Result (Component One - Infrastructure Investments):

DroppedSoftware Hardware

uternow selected andand RFP software

fesult NO launched installedndiat D trading Hardware and Annu Progress

desk, selected tested al Reports ONE

0:Pro operati Trading

,ress in onal deskmnplem operationntation al

Intermediate Result (Component Two - Technical Assistance):

4. Progress in implementing the technical assistance subcomponents

Revised Intermediate Result (Component Two - Technical Assistance):

Unchanged

12

rterme TORs

ate complete

esult d and

idicat agreed

r with

1:Pro Bank

ress No Studies OE

gmpar R studies c Annu Progress

ito launch d al Reports

ie ed

rocuretentlan of4eifferenstudies

13

%The World Bank 1818 H Street N.W. (202) 473-1000

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Washington, D.C. 20433 Cable Address: INTBAFRAD

INTERNATIONAL DEVELOPMENT ASSOCIATION U.S.A. Cable Address: INDEVAS

La.pb i -e AR ,2013

Mr. Ali Fassi Fihri r

Director GeneralOffice National de I'Electricit6 et de I'Eau PotableAvenue Belhassan El Ouazzani10002 RabatKingdom of Morocco

Excellency:

Re: Kingdom of Morocco - Loan Assumption and Amendment Agreement- Loan

Number 7564-MA(Office National de l'Electricit6 et de I' Eau Potable (ONEE) Support Project

(formerly, Office National de l'Electricitk (ONE) Support Project))

Enclosed are the following documents regarding the above-mentioned Loan, which are

delivered to you as the authorized representative of the Office National de l'Electricite et de l'Eau

Potable (the Borrower):

1. one signed original of the Loan Assumption and Amendment Agreement of even

date herewith, between the Borrower and the International Bank for

Reconstruction and Development (the Bank); and

2. one signed original of the Supplemental Letter re: Article VI of the General

Conditions, Financial and Economic Data

Please confirm, on behalf of the Borrower, receipt of the documents listed above, by

signing the enclosed copy of this letter.

Sincerely yours,

Simon GrayDirector, Maghreb Department

Middle East & North Africa Region

Enclosures

RECENED BY: ad TName and Title