Conformed Copy - C1809 - Public Financial Management Project - Amendment 4

Page 1 November 23, 1994 Mr. Fernando Cossio, Cossio Minister of Finance and Economic Development and/or Ms. Gaby Candia Secretary of Finance Ministry of Finance and Economic Development Cajon Postal -Ministerio de Finanzas Calle Bolivar esq. Indaburo No. 688 La Paz, Bolivia RE: BOLIVIA: Dutch Grant Related to FPF Nos. 638-0-BO and 638-1-BO, and to Credits Number 1809-BO, 1977-BO and 2092-BO Third Amendment to the Dutch Grant Agreement Dear Mr. Cossio: We refer to the Dutch Grant Agreement between the Republic of Bolivia (the Recipient) and the International Development Association as Administrator of Grant Funds provided by the Minister for Development Cooperation of the Netherlands (the Administrator) dated July 29, 1993 (the Dutch Grant Agreement) as amended on October 4, 1993 and January 11, 1994. We are pleased to inform you that we agree with your proposal to modify certain provisions of the Dutch Grant Agreement as follows: 1. In the table in Schedule I to the Dutch Grant Agreement, the amounts in Category 2 are hereby allocated as: Amount of the Grant Allocated (Expressed in Dutch Guilders) % of Expenditures to be Category Financed (2) Eligible Expenditures related to the First IDA Agreement: (a) Consultants' services 325,000 75% (b) Goods 60,000 100% of foreign expenditures, 100% of local expenditures (ex- factory cost) and 85% of local expenditures for other items procured locally (c) Works 497,000 100% 2. Section 2(d) of the Schedule to the Grant Agreement is hereby deleted and replaced by the following: "The term 'eligible expenditures related to the first IDA Agreement' means the cost of consultants, including fees, per diem, and travel expenses to strengthen the Recipient's Ministry of Finance through establishment of a unit responsible for monitoring foreign trade, the cost of works related to building remodeling for use as headquarters offices of the Recipient's Secretariat of Finance, such remodeling to include, inter alia the renovation of the plumbing, electrical, telecommunications and elevator systems, rehabilitation of floors, painting, installation of office dividers, and installation of the Recipient's treasury files, and computer equipment and the security system thereof, and the acquisition of vehicles." 3. This amendment will be effective from the date of this letter. Page 2 Please confirm your agreement to the foregoing amendments by signing and dating both duplicate originals of this letter in the space provided below, and returning one of the duplicate originals to us at your earliest convenience. Sincerely, INTERNATIONAL DEVELOPMENT ASSOCIATION as Administrator of Grant Funds provided by the Minister for Development Cooperation of the Netherlands By /s/ Yoshiaki Abe Country Director Latin America and the Caribbean Region Confirmed: REPUBLIC OF BOLIVIA By /s/ Fernando A. Cossio Authorized Representative Date: November 30, 1994