Conformed Copy - L3791 - Institution Building/Technical Assistance Project - Amendment

Page 1 June 30, 2000 Mr. Seitbay Kandymov Deputy Chairman Cabinet of Ministers of Turkmenistan Ashghabat Turkmenistan Re: Institution Building / Technical Assistance Project (Loan No. 3791A TM) Restoration of funds - Amendments to the Loan Agreement Dear Mr. Kandymov: We refer to the Loan Agreement (Institution Building / Technical Assistance Project) dated October 5, 1994 (the Loan Agreement), as amended, between Turkmenistan and International Bank for Reconstruction and Development (the Bank). We also refer to your letter dated May 26, 2000, requesting restoration of funds previously canceled under the Loan Agreement and certain other amendments to the Loan Agreement. We hereby confirm the Bank's agreement to the following amendments to the Loan Agreement: Restoration of Funds 1. The amount of $9,184,571.28 equivalent is restored to the loan amount and the commitment charges on such amount begin to accrue from January 6, 1999. The table in paragraph 1 of Schedule 1 to the Loan Agreement is amended to reflect the above noted restoration and the amounts now allocated to each of the categories set forth in said table which now reads as per Annex 1 to this letter. Schedule 3 to the Loan Agreement, the Amortization Schedule, is being revised by the Bank as a result of the restoration of funds and the revised figures will be sent to you shortly. Schedule 1 to the Loan Agreement 2. In paragraph 2 of Schedule 1 to the Loan Agreement the word "and" at the end of paragraph 2(a) is deleted, the period at the end of paragraph 2(b) is replaced by a semicolon and the word "and" is added thereafter, and a new paragraph 2(c) is added which reads as follows: "(c) the term "PIU's Incremental Operating Costs" means expenditures incurred by the PIU on account of management of Project implementation for utilities, printing, office supplies, office maintenance, communications, and such other expenditures as may be agreed upon by the Bank." 3. Paragraph 4 of Schedule 1 to the Loan Agreement is amended to read as follows: