Conformed Copy - C2494 - Social Action Project - Amendment 1

Page 1 February 5, 1996 H.E. Salvator Toyi Minister of Finance Ministry of Finance Bujumbura, Burundi Re: Credit No. 2494 BU (Social Action Project) Amendment to Development Credit Agreement Excellency: Please refer to the Development Credit Agreement (the Agreement), dated June 10, 1993, concluded between the Republic of Burundi (the Borrower) and the International Development Association (the Association) for the Project captioned above, as amended to date. Further to your request for an increase in the percentages of expenditures to be financed under the Credit during the difficult transition period being faced by the Borrower, we are pleased to inform you that the Association accedes to your request and hereby agrees to amend the Agreement as follows: "The percentages of expenditures to be financed under all Categories except for Category (7) of the table set forth in paragraph 1 of Schedule 1 to the Agreement are increased from their current level to read as follows: 100% of foreign expenditures and 90% of local expenditures. This increase will be effective as of the effective date of this amendment and apply until the Closing Date of the Project or December 31, 1996, whichever comes first. In the latter case, as of January 1, 1997, all percentages will revert to their previous levels as they were in effect on December 31, 1994." Please kindly confirm your agreement with this amendment by signing and dating the two original copies of this letter in the space provided therefor and by returning to us one duplicate original duly signed and confirmed. This amendment shall become effective upon receipt by the Association of one duplicate original of this letter duly signed and confirmed. Sincerely, By /s/ Andrew P. Rogerson Director Central Africa and Indian Ocean Department Africa Region CONFIRMED: REPUBLIC OF BURUNDI Page 2 By /s/ Authorized Representative Date: