Conformed Copy - L3388 - Food Security Project - Amendment

Page 1 March 1, 1993 His Excellency Agustin Frederic Kodock Minister of Planning and Regional Development Yaounde, Cameroon Subject: Cameroon - Food Security Project, (Ln 3388 CM) Amendment to the Loan Agreement Excellency, We would like to refer to the Rural Community Development component under the FIMAC scheme of the Loan Agreement for the above referred Food Security Project between the Republic of Cameroon (the Borrower) and the IBRD (the Bank) dated Septembre 16, 1991, and to the discussions held between the Bank and your staff during the supervision of the above project from January 14 - 27, 1993 in Cameroon, concerning an Amendment in favor of small scale projects. We are pleased to inform you that the Bank has agreed the Borrower's request and the Loan Agreement is hereby amended as follows: SCHEDULE 5 Implementation Program Section C: Policies and Procedures for Part A of the Project 2. Terms and Conditions of Small-scale Projects (a) Small-scale Projects shall be financed on the following terms and conditions: (i) Financing, out of the proceeds of the Loan, of a Small-scale project B shall not exceed CFAF 1,000,000, with a repayment period of not more than four years. (iv) Contributions in cash from Beneficiaries shall represent at least 25% of the financing of Small-scale Projects A and at least 20% of the financing of Small-scale Projects C, and at least 15% of small-scale Projects B. Said contributions shall be utilized to finance: (A) up to 10% of the financing of Small-scale Projects A and C, and up to 5% of the financing of Small-scale Projects B, for the repayment of tools, materials and equipment obtained from suppliers; (B) up to 10% of the financing of Small-scale Projects A and 5% of the financing of Small-scale Projects B and C, as a mobilization advance to be deposited in the capital reconstitution account mentioned in paragraph (d) hereafter; and (C) up to 5% of the financing of Small-scale Projects, for cost operation and maintenance of Small-scale Projects. All other provisions of the Loan Agreement as amended herein shall remain in force. If you agree please sign and date the copy of this letter and return it to us. Sincerely, By /s/ Olivier Lafourcade Director Occidental and Central Africa Department Page 2 Republic of Cameroon By /s/ Authorized Representative Date: May 18, 1993