Conformed Copy - L2961 - Water Supply and Sewerage Sector Project - Amendment

Page 1 October 6, 1992 Dr. Rudolf Hommes Minister Ministry of Finance and Public Credit Santa Fe de Bogota, D.C., Colombia Dr. Antonio Guerra General Manager FINDETER S. A. Santa Fe de Bogota, D.C., Colombia Ref: COLOMBIA - Water Supply & Sewerage Sector Project (Loan 2961-CO) Amendment of Loan and Guarantee Agreements to Substitute DWSS by DNP in the Implementation of Part C of the Project Dear Sirs: 1. This is in connection with the Loan Agreement between International Bank for Reconstruction and Development (the Bank) and Banco Central Hipotecario (BCH) dated as of February 8, 1989, as amended by the Loan Assumption Agreement dated as of November 8, 1991, between the Bank and Financiera de Desarrollo Territorial S.A. (FINDETER) and BCH, and the Guarantee Agreement between the Republic of Colombia (the Guarantor) and the Bank dated as of February 8, 1989, as amended by the Supplemental Guarantee Agreement dated as of November 8, 1991, between the Guarantor and the Bank, all for the above Project. Specifically, this is in connection with the Guarantor's letter UDU-DEM 723 dated August 20th, 1992, requesting the amendment of the Loan and Guarantee Agreements to replace DWSS by DNP in respect of the implementation of Part C of the Project. 2. We are ready to accept the modifications to the Loan and Guarantee Agreement needed to enable DNP to fully take care of Part C. Thus, we hereby propose the following modifications: 3. To the Loan Agreement: - Section 3.07 (b) is amended by replacing the word "MOPT" by "DNP". - Schedule 2. Part C (1) is amended to read as follows: "(1) A program of activities by DNP including staff training, acquisition and utilization of equipment and the carrying out of studies to develop: (i) management models for the administration of water supply and sewerage facilities; (ii) an information system for cost appropriate technologies for the construction and maintenance of said facilities; and (iv) updated procedures and technologies for rural water supply". 4. To the Guarantee Agreement: - Section 2.02 (b) is amended by replacing the word "DWSS" by "DNP". - Section 2.07 (a) is amended by deleting the words "MOPT and". - Section 3.01 (a) is amended by replacing the word "MOPTI, by "DNP". - Section 3.01 (c) is amended by replacing the date "May 31, 1989" by "December 31, 1992". - Section 3.03 is amended by deleting the words "MOPT and". - Paragraphs (a) and (b) of Section 3.04 are amended by replacing in both the word "MOPT" by 'IDNP". Page 2 If you are in agreement with the aforesaid proposal, please sign on behalf of the Guarantor and FINDETER, respectively, the form of confirmation attached to this letter and kindly send said form duly signed to us for our records. A copy of this letter is being sent to the National Department of Planning. The aforesaid modifications to the Loan and Guarantee Agreements shall become effective only upon dispatch by the Bank of its notice of reception of the said form of confirmation, duly signed and dated. Sincerely yours, INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By /s/ Christian Delvoie Acting Country Director Department III Latin America and the Caribbean Region AGREED BY: AND BY: bY /s/ Dr. Rudolf Hommes By /s/ Dr. Antonio Guerra Ministro de Hacienda Gerente General y Credito Publico Financiera de Desarrollo Territorial S.A.