Conformed Copy - C2239 - Urban Water Supply and Sanitation Rehabilitation Project - Amendment 2

Page 1 October 2, 1992 Dr. T.N. Pant Secretary Ministry of Finance His Majesty's Government Kathmandu, Nepal Mr. G.R.S. Kharel General Manager Nepal Water Supply Corporation P.O. Box 5349 Kathmandu, Nepal Re: Development Credit No. 2239-NEP (Urban Water Supply and Sanitation Rehabilitation Project) - Amendment of the Development Credit and Project Agreements Dear Sirs: We refer to the Development Credit Agreement (Urban Water Supply and Sanitation Rehabilitation Project) between the Kingdom of Nepal (the "Borrower") and the International Development Association (the "Association") dated October 10, 1991, as amended and to the Project Agreement between the Association and the Nepal Water Supply Corporation ("NWSC"), of even date therewith. We refer also to your Ministry's letter of September 29, 1992 requesting the Association to waive the condition of effectiveness set forth in Section 6.01 (b) of the Development Credit Agreement. The Association is pleased to inform you that, after due consideration, it has agreed to amend the Development Credit and Project Agreements as follows: I. Development Credit Agreement 1. The word "and" is inserted at the end of Section 6.01 (a); and 2. Section 6.01 (b) of the Development Credit Agreement is hereby deleted, and Section 6.01 (c) is renumbered 6.01(b). II. Project Agreement 1. A new Section 4.06 shall be inserted in the Project Agreement and shall read as follows: "Not later than December 31, 1992 NWSC shall enter into a contract to retain and deploy a management team whose members' qualifications, experience and terms and conditions of employment are satisfactory to the Association." All the terms and conditions of the Development Credit Agreement not amended hereby shall remain in full force and effect. Please confirm your agreement with the foregoing amendments by signing and dating the enclosed form of confirmation and returning it to us. This Amendment shall become effective as of the date of this letter upon receipt by the Association of one fully executed original of this amendment. Sincerely yours, By /s/ Jochen Kraske Director, Country Department 1 South Asia Region Page 2 Confirmed: His Majesty's Government of Nepal By /s/ Authorized Representative Date: October 13, 1992 Nepal Water Supply Corporation By /s/ Authorized Representative Date: October 12, 1992