Conformed Copy - C2100 - Integrated Watershed Development (Hills) Project - Amendment

Page 1 June 26, 1991 The Secretary to the Government of India Ministry of Finance Department of Economic Affairs New Delhi, India Re: Credit 2100-IN/Loan 3175-IN (Integrated Watershed Development (Hills) Project Amendment to Increase Disbursement Percentages Dear Sir: As noted in our letters dated October 18, 1990, November 5, 1990 and November 12, 1990, the International Bank for Reconstruction and Development (the Bank) and the International Development Association (the Association) have decided, pursuant to a new policy designed to assist Borrowers affected by the recent Middle East crisis, to temporarily increase the Bank and IDA share of the cost of projects financed under Bank Loans and Association Credits, respectively. Consequently, the Association and the Bank propose, subject to your confirmation, to hereby amend Schedule 1 to the Development Credit Agreement dated January 11, 1991 (Development Credit Agreement) for the above referenced Project, incorporated in the Loan Agreement of even date therewith (Loan Agreement) between India and the Bank for such Project pursuant to Section 3.01 (a) thereof, in the manner described in the Attachment hereto. This amendment will take effect upon receipt of your confirmation by the Association and the Bank and will apply to all withdrawals of the proceeds of the Loan or Credit allocated to the categories made by December 31, 1991 or such later date as the Bank and the Association may establish. Thereafter withdrawals shall be made on the basis of disbursement percentages determined by the Bank and the Association and notified to you. Please confirm your acceptance on behalf of India of the foregoing amendment by signing and dating the confirmation form on the enclosed copy of this letter and returning it to us for our records. Yours Truly Javad Khalilzadeh-Shirazi Acting Director Country Department IV, India Asia Region CONFIRMED: INDIA By: /s/ N. Prasad Authorized Representative Date: 19/07/91 Cr 2100-IN/Ln 3175-IN Attachment Amendment of Schedule 1 Subject to the provisions of the letter agreement of which this attachment forms a part, the table in Paragraph 1 of Schedule 1 to the Development Credit Agreement, which table is incorporated in the Loan Agreement, is hereby amended to increase the percentage of expenditures Page 2 to be financed for the categories therein noted below as follows: Category Disbursement No. Description Existing Amended 1. Civil works 80% 90% (a) Borrower (b) Haryana (c) Himachal Pradesh (d) Jammu & Kashmir (e) Punjab 2. Equipment, furniture and vehicles: \x 100% \x 100% \y 100% \y 100% \z 50% \z 80% (a) Haryana (b) Himachal Pradesh (c) Jammu & Kashmir (d) Punjab 5. Field operations and materials 70% 90% under Parts A.l (a), A.2, B.l and B.2 of the Project (a) Haryana (b) Himachal Pradesh (c) Jammu & Kashmir (d) Punjab 6. Field operations and materials 70% 90% under Part A.l (b) of the Project (a) Haryana (b) Himachal Pradesh (c) Jammu & Kashmir (d) Punjab ------------------------ \x of foreign expenditures \y of local expenditures (ex-factory cost) \z of local expenditures for other items procured locally