Conformed Copy - L7097 - Productive Partnerships Support Project - Amendment

Page 1 2001 Dr. Juan Carlos Echeverry Director General Departamento Nacional de Planeación Bogotá, D.C. Colombia Fax: (57-1) 334-0221 Ms. Emilia Ruiz de Ramírez Director General Agencia Colombiana de Cooperación Internacional Bogotá, D.C., Colombia Fax: (57-1) 341-9672 Re: Colombia: Japanese Grant for the preparation of the Productive Partnership for Peace Project Amendment to the TF Grant Agreement No. 025829 Dear Dr. Echeverry and Ms. Ruiz de Ramírez: Please refer to the Letter Agreement for the preparation of the Productive Partnership for Peace Project (the Grant), signed by the Republic of Colombia (the Recipient) on July 28, 1999 and by the International Bank for Reconstruction and Development, as administrator of grant funds provided by Japan (the Bank) on June 30, 1999. We are pleased to inform you that pursuant to our recent discussions regarding supplemental financing for this Grant, the Bank agrees to increase the amount of the Grant in an amount not exceeding ninety thousand U.S. Dollars (US$90,000) and consequently, amend the Letter Agreement as follows: 1. Section 1.1 is hereby amended and replaced in its entirely to read as follows: "1. Purpose and Activities 1.1. The purpose of the Grant is to assist the Recipient in the preparation of a project which has as its main objective the establishment of economically viable enterprises in rural areas in Colombia which have been most affected by political violence. The activities (the Activities) for which the Grant is given consist of the provision of technical assistance for: (a) an assessment of the economic and social feasibility of adapting to Colombia conditions the model of agribusiness-peasant partnership for palm oil plantation implemented in Malaysia; (b) identification of other opportunities for partnerships, such as agribusiness-peasant alliances, which are geared towards the needs and capabilities of specific categories of beneficiaries; (c) preparation of concrete proposals for such partnerships; (d) preparation of an operational manual for the Project; (e) development of a user-friendly interface for the facilitation of communications between the Project and its beneficiaries; and (f) establishment of a financial management system for the Project." 2. Section 4.2 is hereby amended and replaced in its entirely to read as follows: "4.2. The expenditures for the following items may be financed out of the proceeds of the Grant and shall be used exclusively in the carrying out of the Activities: Amount of the Grant % of Allocated Expenditures Page 2 Item (in U.S. Dollars) to be Financed (1) Consultants' services 394,000 100% (2) Training 25,000 100% TOTAL 419,000 3. Section 4.3 is hereby amended and replaced in its entirely to read as follows: "4.3. Notwithstanding the provisions of paragraph 4.2 above, no withdrawals shall be made: (a) for payments made for expenditures prior to the date of signature of this Letter Agreement by the Bank; (b) on account of payments for any taxes levied by or in the territory of the Recipient; (c) on account of expenditures in the territories of any country which is not a member of the Bank or for services supplied from such territories; (d) for the purpose of any payment to persons or entities if such payment, to the Bank’s knowledge, is prohibited by a decision of the United Nations Security Council taken under Chapter VII of the Charter of the United Nations; or (e) after December 31, 2001 or such later date as the Bank shall establish by written notice to the Recipient (the Closing Date), except that withdrawals may be made for expenditures incurred prior to the Closing Date if the corresponding application is received by the Bank within four months after the Closing Date, after which time any amount of the Grant remaining unwithdrawn from the Grant Account shall be canceled." Please confirm your agreement with the foregoing amendment, by signing this letter in the spaces provided and returning it to us. This amendment shall be executed in two counterparts, each of which shall constitute an original. The amendment shall become effective as of the latest date of countersignature. Very truly yours, INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By /s/ Olivier Lafourcade Director Country Management Unit Colombia, Mexico, and Venezuela Latin America and the Caribbean Region AGREED: REPUBLIC OF COLOMBIA Departamento Nacional de Planeación By /s/ Juan Carlos Echeverry Director General Date: March 17, 2001 Agencia Colombiana de Cooperación Internacional By /s/ Emilia Ruiz Director General Date: March 21, 2001