Conformed Copy - L4227 - Water Districts Development Project - Amendment 1

Page 1 June 21, 1999 Hon. Edgardo Espiritu Secretary Department of Finance Department of Finance Building Roxas Blvd., Manila Dear Secretary Espiritu: RE: Water Districts Development Project (LN 4227 PH) Amendment to Loan Agreement I refer to the Loan Agreement dated May 15, 1999 between the Republic of the Philippines (the "Borrower") and the International Bank for , Reconstruction and Development (the "Bank") for the above\1ereferenced Project (the "Loan Agreement"). I am pleased to inform you that the Bank agrees to amend the Loan Agreement as follows: 1. In Paragraph (C) of the Preamble, the LBP Loan amount is changed to$36,300,000. 2. Article 2, Section 2.02 (b): "Bankgo" is changed to "Bangko". 3. The date set forth in Section 3.04 is changed to December 31, 2000. 4. Section 5.01 (e) is deleted. 5. Section 6.01 is changed to read: "Section 6.01. The following event is specified as an additional condition to the effectiveness of the Loan Agreement within the meaning of Section 12.01 (c) of the General Conditions, namely that the MWSS Subsidiary Loan Agreement shall have been executed on behalf of the Borrower and MWSS." 6. Part B. l of Schedule 2 is revised to read as follows: "l. Improvement in the water, sewerage, sanitation and drainage services in Participating LGUs through the construction of: (i) water, sewerage and drainage systems in barangays, (ii) on\1esite and communal sanitation facilities for residents of such LGUs, (iii) a sewerage system consisting of house connections, feeder and trunk sewers; (iv) a sewage treatment plant; and (v) drainage facilities." 7. Except as specifically amended by this amendment letter, all provisions of the Loan Agreement otherwise remain in full force and effect. Please confirm your agreement to the amendments set out above by having authorized representatives of the Borrower sign the form of confirmation set forth hereinbelow, and returning one fully executed original of this amendment letter to us at your earliest convenience and retaining originals of the letter for your records. This amendment letter shall become effective as of the date first above written, once it has been fully executed by all parties thereto. Sincerely, INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By /s/ Vinay Bharga Country Director, Philippines East Asia and Pacific Region CONFIRMED: REPUBLIC OF THE PHILIPPINES By /s/ SEC. EDGARDO B. ESPIRITU Page 2 Authorized Representative Date: 28 June 1999 Cc: Mr. Reynaldo Vea Metropolitan Waterworks and Sewerage System Katipunan Road, Balara Quezon City 1105, Philippines