Conformed Copy - C1907 - Education and Manpower Development Project - Amendment

Page 1 July 6, 1992 His Excellency Eneas da Conceicao Comiche Minister of Finance Ministry of Finance Maputo, Mozambique Excellency: RE: Education and Manpower Development Program (Credit No. 1907-MOZ) Amendment to Development Credit Agreement We refer to the above-mentioned Development Credit Agreement (the Agreement) dated June 16, 1988, between the Republic of Mozambique (the Borrower) and the International Development Association (the Association). Further to discussions held between representatives of the Borrower and the Association, and your letter No. 283/MF/GM/92, dated May 20, 1992, we are pleased to inform you that the Association hereby agrees to amend the Agreement, as follows: 1. Article 1, Section 1.02. (e) is replaced by the following: "(e) 'GEPE' means Gabinete Tecnico de Gestao de Projectos Educacionais, the unit created within MINED by Ministerial order No. 34/88, dated February 20, 1988, in force from March 23, 1988, and referred to in Schedule 4 to this Agreement;" 2. All references to 'PROFORMA' throughout the Agreement are amended to read 'GEPE'. 3. The table set forth in paragraph 1 of Schedule 1 to the Agreement is amended to read: "Amount of the Credit Allocated % of (Expressed in of Expenditures Category in SDR financed (1) Civil works 6,462,000 100% of foreign expenditures and 95% of local Expenditures (2) Furniture 697,800 100% of foreign expenditures and 90% of local Expenditures (3) Equipment, 2,205,700 100% of foreign materials, and expenditures and vehicles 90% of local Expenditures (4) Consultants' 1,220,300 100% services, studies and audits (5) Training 341,300 100% (6) Operating costs 625,600 100% of GEPE (7) Refunding of 147,300 Amount due pursuant Project to Section 2.02 (c) Preparation of this Agreement Advance Page 2 TOTAL 11,700,000 4. Paragraph 2 of Schedule 1 to the Agreement is deleted and replaced by a new paragraph 2 which reads as follows: "For the purposes of this Schedule: (a) 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; (b) the term 'local expenditures' means expenditures in the currency of the Borrower or for goods and services supplied from the territory of the Borrower; (c) the term 'training' means costs of fellowships, conferences, courses, study tours, and travel to be undertaken as part of training abroad and other related training costs to be financed under the Project; and (d) the term 'operating costs' means: (i) costs of maintenance of equipment, vehicles and building used in the execution of the Project; (ii) Project administration costs; (iii) salary supplements for GEPE's staff responsible for the implementation of the Project; and (iv) other operating expenditures related to the implementation of the Project, as determined in agreement between the Borrower and the Association." 5. Part D.1 of Schedule 3 to the Agreement is amended to include 'civil works' as follows: "1. Local competitive bidding: Furniture, equipment, materials, and civil works under Part A.1 of the Project, may be procured under contracts awarded on the basis of competitive bidding, advertised locally, in accordance with procedures satisfactory to the Association." Please indicate your agreement with the foregoing by countersigning and dating the form of confirmation on the two original copies of this letter provided to you and returning one original, as countersigned, to us. As requested by you, this amendment shall become effective as of January 1, 1990. Sincerely, Praful Patel Acting Director Southern Africa Department CONFIRMED: REPUBLIC OF MOZAMBIQUE By: Authorized Representative Date: July 28, 1992