C1859 - Second National Dairy Project - Amendment (Conformed Copy)

Page 1 November 5, 1990 The Secretary to the Government of India Ministry of Finance Department of Economic Affairs New Delhi, INDIA Re: Increase in Disbursement Percentages Dear Sir: I write further to Mr. Vergin's letter dated October 18, 1990 to you. As noted therein, the International Bank for Reconstruction and Development (the Bank) and the International Development Association (the Association) have decided, pursuant to a new policy designed to assist borrowers affected by the recent Middle East crisis, to temporarily increase the Bank and IDA share of the cost of projects financed under Bank Loans and Association Credits, respectively. Consequently, the Bank and the Association propose, subject to your confirmation, to hereby further amend the Loan Agreements between India (the Borrower) and the Bank and the Development Credit Agreements between the Borrower and the Association respectively listed in the Attachment hereto in the manner described in that Attachment. These amendments will take effect upon receipt of your confirmation by the Bank and the Association and will apply to all withdrawals of the proceeds of the applicable Loans or Credits allocated to the categories listed in the Attachment made on or after September 1, 1990. For withdrawals made at the existing disbursement percentages between September 1, 1990 and the date of receipt of the Borrower's confirmation, the Borrower may submit supplemental withdrawal applications to the Bank or Association for eligible expenditures reflecting the increased disbursement percentages, subject to the other provisions of the respective Loan or Development credit Agreement. Subject to the Loan or Credit Account, as the case may be, being open, this amendment will be applicable in respect of all withdrawals made by December 31, 1991 or such later date as the Bank and Association may establish. Thereafter withdrawals shall be made on the basis of disbursement percentages determined by the Bank and the Association and notified to you. Please confirm your acceptance on behalf of the Borrower of the foregoing amendments to the Agreements listed in the Attachment by signing and dating the confirmation form on the enclosed copy of this letter and returning it to us for our records. Following your confirmation, we propose to update the Table in Paragraph 1 of Schedule 1 of each amended Loan and Credit Agreement to reflect all the disbursement percentages revised to date in a consolidated form. Copies thereof will be sent to you for your information and record. Sincerely, Javad Khalilzadeh-Shirazi Acting Director India Country Department Attachment CONFIRMED: Page 2 INDIA By Authorized Representative