Conformed Copy - L4143 - Rural Employment Project - Supplemental Letter

Page 1 DEMOCRATIC AND POPULAR REPUBLIC OF ALGERIA April 17, 1997 International Bank for Reconstruction and Development 1818 H Street, N.W. Washington, D.C. 20433 United States of America Re: Loan No. 4143 AL (Rural Employment Project) Procurement (Schedule 4 to the Loan Agreement) Dear Sirs: We refer to Schedule 4 to the Loan Agreement for the Rural Employment Project, entered into by and between the Democratic and Popular Republic of Algeria (the Borrower) and the International Bank for Reconstruction and Development (the Bank), and to the "Guidelines for Procurement under IBRD Loan and IDA Credits" published by the Bank in January 1995 and revised in January and August 1996 (the Guidelines). For the purposes of the above-captioned Project, the Borrower hereby confirms that the following shall apply: A. International Competitive Bidding (ICB) 1. Origin of Materials. Bidders will be encouraged to give priority to the use of available local goods, materials and products. 2. Currency. The foreign currency portion of the bid price shall be expressed in the currency of payment of the contract price. B. International Competitive Bidding (ICB) and National Competitive Bidding (NCB) 1. Bid Opening. Opening of bids for goods shall take place in public, in the presence of bidders wishing to attend. 2. Evaluation Criteria. Bid evaluation criteria will be stated in the bidding documents. No preference will be granted on the basis of: (a) national origin of bidder, except as provided in paragraphs 2.54 and 2.55 of the Guidelines, and paragraphs 1 through 6 of Appendix 2 thereto; (b) the legal nature of bidder; or (c) any financial facilities offered by a bidder, such as export credit or suppliers' credit. Any benefit granted to the Borrower's public sector companies over private sector companies or foreign companies in terms of a guarantee for advance mobilization loan shall be quantified, when evaluating competing bids, and added to the bid price for the purpose of comparison bids. Very truly yours, DEMOCRATIC AND POPULAR REPUBLIC OF ALGERIA By /s/ M. Ramtane Lamamra Authorized Representative Page 2