Conformed Copy - C1859 - Second National Dairy Project - Amendment

Page 1 May 4, 1990 The Secretary to the Government of India Department of Economic Affairs Ministry of Finance New Delhi 110001 India Re: Credit 1859-IN/Loan 2893-IN (Second National Dairy Project) Amendment to the Development Credit Agreement Dear Sir: Please refer to the Development Credit Agreement dated January 13, 1988 (hereinafter the "Credit Agreement") between India (hereinafter the "Borrower") and the International Development Association (hereinafter the "Association") and to the Loan Agreement of even date therewith (hereinafter the "Loan Agreement) between the Borrower and the International Bank for Reconstruction and Development (hereinafter the "Bank"), both for the above referenced project. Capitalized terms used and not otherwise defined herein shall have the same meaning as in the Credit Agreement or the Loan Agreement. In response to your request and the discussions between our respective representatives, we are pleased to inform you that the Association and the Bank agree to amend Schedule 1 to the Credit Agreement, incorporated in the Loan Agreement pursuant to Section 3.01 thereof, for the purpose of increasing the percentage of expenditures for civil works and, equipment, materials and vehicles to be financed out of the proceeds of the Credit and of the Loan. Accordingly, the Association and the Bank hereby propose to amend Schedule 1 to the Credit Agreement as follows: 1. The percentage of expenditures set forth under the fourth column entitled "% of Expenditures to be financed" for civil works under category (1) of the table in paragraph 1 of Schedule 1 to the Credit Agreement is amended in its entirety to read as follows: "50% of local expenditures". 2. The percentage of expenditures set forth under the fourth column entitled "% of Expenditures to be financed" for equipment, materials and vehicles under Category (2) of the table in paragraph 1 of Schedule 1 to the Credit Agreement is amended in its entirety to read as follows: "100% of foreign expenditures; 100% of local expenditures (ex-factory cost) and 50% of local expenditures for other items procured locally". As authorized representative of the Borrower under the Credit Agreement and under the Loan Agreement, please confirm your agreement to the foregoing amendment by signing and dating this letter in the spaces provided below. Upon your confirmation as authorized representative of the Borrower under the Loan Agreement, Schedule I to the Credit Agreement as amended herein shall be incorporated in the Loan Agreement pursuant to the provisions of Section 3.01 thereof. This amendment may be executed in two counterparts, each of which shall be an original. Upon your confirmation, please return one fully executed original to us. This amendment will be effective as of the date of this letter upon receipt by the Bank of one fully executed original of this amendment. Because of their interest in this matter, a copy of this letter is being sent to the Chairman, National Dairy Development Board of the Borrower. Page 2 Very truly yours, INTERNATIONAL DEVELOPMENT ASSOCIATION INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By: Jan Wijnand Acting Director Country Department IV, India Asia Region CONFIRMED: INDIA By: Authorized Representative under the Credit Agreement and under the Loan Agreement Date: cc: The Chairman National Dairy Development Board Anand - 388001 Gujarat State India