Conformed Copy - C2420 - Transport Recovery Project - Amendment 1

Page 1 September 10, 1993 His Excellency Jose Pedro de Morais State Secretary of Planning Secretariat of Planning Luanda Republic of Angola Excellency: Re: Credit No. 2420-ANG (Transport Recovery Project) Amendment to DeveloDment Credit Acrreement We refer to the above-mentioned Development Credit Agreement (the Agreement) dated September 15, 1992, between the former People's Republic of Angola (the Borrower) and International Development Association (the Association). Further to discussions held between representatives of the Borrower and the Association, and to your letter dated September 8, 1993 requesting the postponement of certain conditions of effectiveness, we are pleased to inform you that the Association hereby agrees to amend the Agreement, as follows. 1. Section 6.01 (a) (i) of the Agreement is deleted. 2. Sections 6.01 (a) (ii) and 6.01 (a) (iii) are renumbered as 11 6.01 (a) (i) and "6.01 (a) (ii)." 3. Paragraph (c) of Section 6.01 is deleted. 4. Paragraph (d) of Section 6.01 is renumbered as "6.01 (c)". 5. Paragraph 3 of Schedule 1 to the Agreement is amended by inserting a new item (d) which reads as follows: "(d) expenditures under Category (1) (a)(i) unless the Association has received documentary evidence, satisfactory to it, certifying that: (i) the Borrower has approved, taking into account the recommendations made by the Association, fuel taxation measures to recover the cost of road use to ensure collection of at least the equivalent of $15,000,000 (Fifteen million dollars) per year, starting in FY 1993; and (ii) the Project Account referred to under Section 3.03 of this Agreement has been opened with an initial deposit in local currency, or such other currency as may be acceptable to the Association, in an amount equivalent to one hundred thousand dollars ($100,000)." 6. Paragraph (c) of Section 3.03 is amended and replaced to read as follows: "(c) make monthly deposits into the Project Account, of such amounts in local currency or such other currency as may be acceptable to the Association, as shall be required to timely replenish the Project Account, and maintain it throughout Project implementation, at a permanent amount equivalent to one hundred thousand dollars ($100,000)." Please indicate your agreement with the foregoing by countersigning and dating the form of confirmation on the two original copies of this letter provided and returning one original, as countersigned, to us. This Amendment shall become effective as of the date of receipt by the Association of this letter duly countersigned by you. Sincerely, Franciso Aguirra-Sacasa Director South-Central Africa and Indian Ocean Department Confirmed: Page 2 REPUBLIC OF ANGOLA Jose Pedro de Morais, Jr. Authorized Representative Date: October 25, 1993