Post chernobyl recovery project (additional financing)

The Post-Chernobyl Recovery Project for Belarus aims to provide the population residing in the Chernobyl affected area with energy efficient and reliable heat and hot water services in order to improve their living environment. The reallocation, which was discussed with the Borrower during the April 2010 implementation support mission and recorded in the aide-memoire attached to the mission follow-up letter dated June 4, 2010, consists of the reallocation of funds: (i) from category two goods to category one works, and (ii) from category three consulting services to category one works.

This change is necessary because:

(i) the cost estimate for detailed design was included in the category of consulting services, but the responsibility to prepare the detailed design was moved to the contractors under the works contracts; and

(ii) there were cost savings in the goods category (replacement of lighting in schools).