Conformed Copy - C2599 - Second Roads and Coastal Shipping Project - Supplemental Letter 4

Page 1 April 15, 1994 His Excellency Governor of Banco de Mocambique P.O. Box 423 Maputo Republic of Mozambique Re: Credit No. 2599 MOZ (Second Roads and Coastal Shipping Project) Direct Contracting by Local Contractors Excellency: We refer to the Development Credit Agreement of even date herewith between International Development Association (the Association), and the Republic of Mozambique and to the provisions in Part C.4 (ii) of Schedule 3 thereof for civil works by local contractors for construction contracts to be financed out of the proceeds of the above Credit. We wish to confirm that, in order to be eligible: : (i) the local contractors should be registered in Mozambique; (ii) the construction company should have at least 80% ownership by nationals of Mozambique; (iii) the contractors should not have subcontracted more than 20% of the contract works measured in terms of value to foreign contractors; (iv) the contractors should be undergoing training under a program agreed jointly by the Borrower and the Association; (v) the cumulative amount of contract under direct contracting to one contractor should not exceed $500,000; and (vi) the contractor should not have received a contract under normal ICB or LCB procedures. Please confirm your agreement with the foregoing by signing the enclosed copy of this letter and returning it to us. Sincerely yours, INTERNATIONAL DEVELOPMENT ASSOCIATION By /s/ Stephen M. Denning Acting Regional Vice President Africa CONFIRMED: REPUBLIC OF MOZAMBIQUE By /s/ Hipolito Zozimo Patricio Authorized Representative