Conformed Copy - C2093 - Agricultural Sector Adjustment and Investment Project - Amendment 2

Page 1 July 6, 1993 His Excellency Taki Ould Sidi Minister of Plan B.P. 238 Nouakchott Islamic Republic of Mauritania Re: Agricultural Sector Adjustment and Investment Project Amendments to the Development Credit Agreement and Reallocation of Funds (Credit No.2093-MAU) Excellency: We refer to the above-mentioned Credit Agreement between the Islamic Republic of Mauritania (the Borrower) and the International Development Association (the Association) dated February 26, 1990 and your ministry's letter dated June 5, 1993, requesting the Association's assistance in the reallocation of funds and in increasing the percentage of IDA disbursement for certain categories We are pleased to confirm the Association's willingness to provide this assistance and, therefore, agree to amend the Development Credit Agreement as follows: The provision of funds and the percentage of expenditures to be financed according to Schedule 1 of the Development Credit Agreement shall be changed by: 1) a transfer of SDR 615,000 from Category (7) Unallocated to Category (5)(b) Incremental Operating Costs for SONADER; 2) the percentage of disbursement: Category (5)(b) for SONADER shall be augmented from 50% to 70%; and 3) the percentage of disbursement: Category (1) Civil works shall be augmented from 70% to 100%. Therefore, Schedule 1 of the Development Credit Agreement shall read as follows: Amount of the Credit Allocated % of (Expressed in Expenditures Category SDR Equivalent) to be Financed (1) Civil works 800,000 100% (*) (2) Equipment and Vehicles: (a) MDR 50,000 100% (b) SONADER 550,000 100% (c) UBD 15,000 100% (3) Agricultural Credit 1,200,000 100% (4) Technical Assistance Studies and Training for: (a) MDR 350,000 100% Page 2 (b) SONADER 1,100,000 100% (c) UBD 150,000 100% (5) Incremental Operating Costs (a) MDR 180,000 50% (b) SONADER 1,005,000 (*) 70% (*) (6) Goods Imported during the 14,000,000 100% Execution of the Program (7) Unallocated 0 (*) TOTAL 19,400,000 (*) indicates the changes made, under the present amendment, in the amount of credit allocated or in the percentage of expenditures to be financed by IDA. Please indicate your agreement to the foregoing amendment by signing and dating the confirmation form on the enclosed copy of this letter and returning it to us, while keeping the original for your records. This amendment will become effective retroactively as of January 1st 1993, subject to confirmation of your agreement as indicated hereafter. Very truly yours, Katherine Marshall Director Sahel Department Africa Region CONFIRMED: ISLAMIC REPUBLIC OF MAURITANIA By: H.E. the Minister of Plan Date: