Conformed Copy - C1818 - Power Sector Rehabilitation Project - Amendment 2

Page 1 December 1, 1988 Lic. Fernando Romero Minister of Planning and Coordination Ministry of Planning and Coordination Av. Arce No. 2147 Casilla 3116 La Paz, Bolivia Ing. Claude Besse Arze General Manager Empresa Nacional de Electricidad S.A. (ENDE) Casilla 565 Cochabamba, Bolivia Ref: Power Sector Rehabilitation Project Credit No. 1818-BO First Amendment to the Development Credit and Proiect Agreement Dear Sirs Please refer to the Development Credit Agreement (the Credit Agreement), for the above-referenced project, entered into between the Republic of Bolivia (the Borrower) and the International Development Association (the Association), dated July 31, 1987, and to the Project Agreement entered into between Empress Nacional de Electricidad S.A. (ENDE) and the Association, of even date therewith. I am pleased to advise you that the Association is in agreement with your request, pursuant to the letter from ENDE to the Association dated September 27, 1988, to amend the Credit Agreement as follows: (i) the table set forth in paragraph 1 of Schedule 1 to the Credit Agreement is deleted and replaced in its entirety to read as per Attachment 1 hereto. (ii) Part b of Schedule 2 to the Credit Agreement is amended by deleting paragraphs 3, 4 and 5 and adding the following new paragraphs 3, 4 and 5 instead: 3. Modification and addition of transformers in Parque Industrial, Urbana Norte and Arocagua substations in order to increase transformer capacity and addition of switching equipment in the Cochabamba substation. 4. Addition of one transformer in the Warnes (Santa Cruz) substation in order to increase transmission capacity. 5. Construction of transmission line 1 @ s between Huaracachi, Urbana Sur and Urbana Oeste substations, in order to close the Santa Cruz subtransmission loop. (iii) Part C in Schedule 2 to the Credit Agreement is amended by deleting paragraph 2 (c) and adding the following new paragraph 3 instead: 3. Acquisition of software and hardware required by ENDE for future review of the Power Expansion Master Plan and for partial implementation of the integrated Management Information System. Please confirm your agreement with the foregoing amendment by signing the attached duplicate original of this letter and returning each to us duly dated. A signed original of this letter is enclosed for each of your records. Sincerely yours, INTERNATIONAL DEVELOPMENT ASSOCIATION Page 2 By /s/ Katherine Marshall Acting Director Country Department III Latin America and the Caribbean Region AGREED: REPUBLIC OF BOLIVIA By /s/ C. Fernando Romero Moren Authorized Representative Date: 9-12-1988 ACKNOWLEDGED EMPRESA NACIONAL DE ELECTRICIDAD S.A. (ENDE) By /s/ Authorized Representative DATE: December 15, 1988 ATTACHMENT 1 BOLIVIA Schedule 1 Withdrawal of the Proceeds of the Credit Amount of the Credit Allocated % of (Expressed in Expenditures Category SDR Equivalent to be Financed (1) Civil Works 335,000 100% of foreign expenditures and 90% of local expenditures (2) Spare Parts 1,029,000 100% of foreign expenditures and 90% of local expenditures (ex-factory cost) (3) Substation and 2,751,000 100% of foreign transmission expenditures and line equipment 90% of local and material expenditures (ex-factory cost) (4) Consultants' 966,000 100% of foreign services expenditures (5) Unallocated 219,000 TOTAL 5,300,000 Page 3