Conformed Copy - L4315 - Cesme-Alacati Water Supply and Sewerage Project - Supplemental Letter 1

Page 1 1998 Mr. Aydin Karaoz Director General for Foreign Economic Relations The Undersecretariat of the Treasury Emek, Ankara Republic of Turkey Re: Loan No. 4315 TU (Cesme-Alacati Water Supply and Sewerage Project) National Procurement Procedures Dear Madam: We refer to the provisions of Schedule 4, Section I, Part C.1 of the Loan Agreement (Cesme-Alacati Water Supply and Sewerage Project) of even date herewith between the International Bank for Reconstruction and Development (the Bank) and the Cesme-Alacati Union (the Borrower). We hereby inform you that, for purposes of items to be financed out of the Loan for the above-mentioned Project and for which contracts will be procured pursuant to said provisions, the Bank will consider the sealed Bidding Procedures, as described in Turkey’s Bids Law No. 2886 of September 3, 1983, and Law No. 2990 of March 17, 1984, as acceptable, provided that the following are reflected in the application of those procedures: (i) Prospective bidders shall be allowed at least 30 days from the date of the first advertisement to submit bids. (ii) Bids shall not be rejected solely on the grounds that they exceed an “estimated price