Conformed Copy - C2013 - Mining Sector Rehabilitation Project - Amendment 3

Page 1 April 5, 1991 Mr. Enrique Garcia Rodriguez Ministro de Planeamiento y Coordinacion Ministerio de Planeamiento y Coordinacion La Paz, Bolivia Re.: Credit No. 2013-BO (Mining Sector Rehabilitation Project) Amendment to the Development Credit Agreement Dear Sir: Please refer to the Development Credit Agreement, for the above referenced Project, between the Republic of Bolivia (the Borrower), and the International Development Association (the Association) dated August 4, 1989, as amended. I am pleased to inform you that the Association agrees to your request to amend such Agreement. Therefore, the Association proposes the following amendments thereto: I. Section 1.02: Paragraph (w) is deleted and substituted with the following new paragraph: "(w) DICISMIN means Directorio Central de Instituciones de Servicio a la Mineria, the Borrower's directorate which coordinates and directs the service institutes of the mining sector and which is to be established by the Borrower pursuant to the provisions of Section 3.05 (c) of this Agreement;" and A new paragraph (bb) is added: "(bb) "IIMM" means Instituto de Investigaciones Minero Metalurgicas, the Borrower's institute to provide services in the fields of mining and metallurgy." II. Section 3.01 (b), subparagraph (i) IDM is substituted by DICISMIN. III. Section 3.05 (c) subparagraph (ii) is amended to read as follows: "(ii) establish DICISMIN and STCM in a form and with functions satisfactory to the Association." IV. The table set forth in paragraph 1 of Schedule 1 to the Credit Agreement is amended to read as follows: SCHEDULE 1 Withdrawal of the Proceeds of the Credit 1. The table below sets forth the Categories of items to be financed out of the proceeds of the Credit, the allocation of the amounts of the Credit to each Category, and the percentage of expenditures for items so to be financed in each Category: Amount of the Credit Allocated % of (Expressed in Expenditures Category SDR Equivalent) to be Financed (1) Works under 8,300,000 100% of foreign Part A of the expenditures and Project 90% of local expenditures (2) Works under 200,000 100% of foreign Part C of the expenditures and Project 100% of local expenditures (3) Goods (including equipment,4,800,000 100% of foreign Page 2 spare parts therefor and expenditures and materials) under Part A 80% of local of the Project expenditures (4) Goods (including 800,000 100% of foreign equipment, spare parts expenditures and therefor and materials) 80% of local under Part C of the expenditures Project (5) Sub-loans made under 5,500,000 100% of amounts Part B of the Project disbursed by the Central Bank for Sub-loans made by Financial Intermediaries (6) Consultants' services, 1,600,000 100% of foreign support services and expenditures and Coordinator (including 90% of local training) under Part A of expenditures the Project (7) Consultants' services, 2,300,000 100% of foreign Coordinators and special expenditures personnel contract services 100% of local (including training) expenditures Project under Part C of the (8) Refunding of Project 1,000,000 Amount due pur- Preparation Advance suant to Section 2.02 (c) of this Agreement (9) Unallocated 700,000 (10) Operating costs including 1,300,000 100% of foreign those of MMM coordinating expenditures and units under Part C of the 100% of local Project expenditures TOTAL 26,500,000 V. Paragraph 2 of Schedule I to the Credit Agreement is amended to read as follows: "2. For the purposes of this Schedule the term "foreign expenditures" means expenditures in the currency of any country other than that of the Borrower for goods or services supplied from the territory of any country other than that of the Borrower; the term "local expenditures, means expenditures in the currency of the Borrower or for goods or services supplied from the territory of the Borrower; and the term "operating costs" means Project-related incremental costs essential to the effective implementation of the Project such as utilities, transportation, maintenance of buildings, field camps and equipment, rentals, travel per diems and expenses, communication costs, insurance, preparation and printing of reports, transport and storage of equipment and material. VI. Part C of Schedule II to the Credit Agreement is amended to read as follows; "Part C - Mining Sector Institutional Strengthening (1) Strengthening the capacity of MHM to supervise and coordinate mining sector policy through (a) training and the provision of special personnel contract services; (b) the provision of consulting services for technical assistance; (c) the provision of data processing and communications equipment; (d) the maintenance of offices and the installation and operation of an information system, and (e) the planning and operation of the General Project Coordinating Office and the MMM Project Coordinating Unit. (2) (a) Strengthening the operations of GEOBOL through (i) training and the provision of special personnel under contract; (ii) the provision of consulting services for technical assistance; (iii) construction and equipping of laboratories and other installations; (iv) the development and operation of Page 3 a data base and an information system; and (b) carrying out selected geological and mineral investigation projects through the provision of specialized technical teams and services. (3) (a) Develop and strengthen DICISMIN (including IIMM) in its capacity to render specialized services and provide advice to the Borrower's mining community through: (i) training and the provision of special personnel under contract; (ii) the provision of consulting services for technical assistance; (iii) construction and equipping of laboratories and other installations, including the provision of office, equipment; (iv) the development and operation of a data base and an information system, and (b) carrying out selected metallurgical investigation projects, including the provision of specialized technical teams and services. (4) Reinforcing and improving the Borrower's cadastral services through the provision of technical assistance, training and equipment required therefor. VII. Paragraph I subparagraph (a) of Schedule 5 to the Credit Agreement is amended to read as follows: (a) the term 'Eligible Categories" means Categories (1) through (7) and (10) set forth in the table in paragraph 1 of Schedule 1 to this Agreement." Please confirm your agreement to the above amendment by signing and dating the enclosed copy of this letter in the space provided below. This am ndment shall be executed in two counterparts, each of which shall be an original. Upon your confirmation, please return one fully executed original to the Bank. This amendment shall become 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 Banco Central de Bolivia and to Corporac16n Minera de Bolivia. Sincerely yours By /s/ Ping-Cheung Loh Country Director, Department III Latin America and the Caribbean CONFIRMED Ministerio de Planeamiento y Coordinacion By /s/ Authorized Representative Date: April 15, 1991 cc: Mr. Radl Boada Presidente Banco Central de Bolivia Casilla 3188 La Paz, Bolivia Mr. Alvaro Rejas Presidente Corporacion Minera de Bolivia Casilla 349 La Paz, Bolivia Page 4