Conformed Copy - L3811 - Lima Water Rehabilitation and Management Project - Amendment 2

Page 1 December 22, 1997 Ing. Placido Aguirre General Manager SEDAPAL Autopista Ramiro Priale s/n Distrito El Agustino Lima, Peru Dear Mr. Aguirre: Re: Loan No. 3811-PE (Lima Water Rehabilitation and Management Project) - Amendment to the Project Agreement Please refer to the Project Agreement dated February 2, 1995 between the International Bank for Reconstruction and Development (the Bank) and Servicio de Agua Potable y Alcantarillado de Lima (Sedapal). In this letter all terms defined in the Loan Agreement have the same meaning as therein set forth. Pursuant to the request from Sedapal and further discussions between representatives of the Borrower, Sedapal and the Bank, the Bank hereby agrees to amend the Project Agreement as follows: 1. Section 2.10 (a) (ii) is amended to read as follows: (ii) not later than June 30, 1998 or when the aggregate of the proceeds of the Loan Account and the total amount of commitments made to pay amounts to or on the order of the Borrower in respect of expenditures to be financed out of the proceeds of the Loan shall have reached the equivalent of $60,000,000, whichever comes first, in the event that the Concession Contract has not previously been awarded