Conformed Copy - L3539 - Economic Integration Loan - Amendment 1

Page 1 March 11, 1993 The Honorable Ramon Del Rosario, Jr. Secretary of Finance Department of Finance Manila Republic of the Philippines Dear Mr. Secretary: Re: Loan No. 3539 PH Economic Inteqration Loan Please refer to the loan agreement for the above-referenced loan (Loan Agreement) entered into by and between the Republic of the Philippines (the Borrower) and International Bank for Reconstruction and Development (the Bank) dated December 23, 1992. Please also refer to the proposed co-financing arrangements to be entered into by and between The Export-Import Bank of Japan (Japan EXIMBANK) and the Republic of the Philippines. To satisfy the requirements of Japan EXIMBANK, the Bank agrees to amend the Loan Agreement as follows: l. An additional recital (c) shall be added as follows: WHEREAS Under an agreement (the Japan EXIMBANK Agreement) to be entered into between The Export-Import Bank of Japan (Japan EXIMBANK) and the Borrower, Japan EXIMBANK intends to make a loan (the Japan EXIMBANK Loan) to co-finance the Program in an amount up to the equivalent in Yen of two hundred million dollars ($200,000,000). 2. Article IV is deleted and there is substituted in its place the following: Article IV Remedies of the Bank Section 4.01. Pursuant to Section 6.02 (l) of the General Conditions, the following events are specified, namely: (a) that a situation has arisen which shall make it improbable that the Program, or a significant part thereof, will be carried out; and (b) subject to Section 4.02 of this Agreement: (i) that the right of the Borrower to withdraw the Japan EXIMBANK Loan shall have been suspended, cancelled or terminated in whole or in part, pursuant to the terms thereof, or (ii) that the Japan EXIMBANK Loan shall have become due and payable prior to the agreed maturity thereof. Section 4.02. Paragraph (b) of Section 4.01 shall not apply if the Borrower establishes to the satisfaction of the Bank that (i) such suspension, cancellation, termination or prematuring is not caused by the failure of the Borrower to perform any of its obligations under the Japan EXIMBANR Agreement; and (ii) adequate funds for the Program are available to the Borrower from other sources on terms and conditions consistent with the obligations of the Borrower under this Agreement. Page 2 Please confirm your agreement to the foregoing amendment by signing and dating the form of confirmation below and by returning this letter to us. A signed duplicate original of this letter is enclosed for your records. We are sending a copy of this letter to Japan EXIMBANK for information. Yours sincerely, Gautam S. Kaji Vice President East Asia and Pacific Region CONFIRMED: REPUBLIC OF THE PHILIPPINES By: Authorized Representative Date: 11 March 1993