Conformed Copy - C1906 - Office du Niger Consolidation Project - Amendment 1

Page 1 July 11, 1988 M. le Directeur General Office du Niger B.P. 106 Segou Republic of Mali M. le Directeur General Banque Nationale de Developpement Agricole B.P. 2424 Bamako Republic of Mali Re: Credit No. 1906 MLI (Office du Niger Consolidation Project) Preference for Domestic Contractors Dear Sirs: 1. We refer to the Project Agreement of even date herewith between International Development Association ("the Association"), Office du Niger and Banque Nationale de Developpement Agricole, and to the provisions in Part C of Schedule 1 thereof for the Grant of a 7.5% margin of preference to eligible domestic contractors bidding for construction contracts to be financed out of the proceeds of the above Credit. 2. We wish to confirm that, in order to be accepted by the Association, the criteria for classification of domestic contractors eligible for such preference must include at least the following: (a) domestic bidders shall be eligible provided that they: (i) are registered in Mali; (ii) have majority ownership by nationals of Mali; and (iii) have not subcontracted more than 50% of the contract works measured in terms of value to foreign contractors. (b) joint venture between domestic and foreign firms shall be eligible for the margin of preference provided that: (i) the domestic partner or partners individually satisfy the criteria for eligibility set forth above; (ii) the domestic partner or partners would not be qualified for the contract works in question on technical or financial grounds without the foreign participation; and (iii) the domestic partner or partners will, under the arrangements proposed, carry out at least 50% of the contract works measured in terms of value. For the purpose of this paragraph, the term "foreign firm" means a firm that does not qualify as a domestic bidder pursuant to sub-paragraphs (a) (i) and (a) (ii) of this paragraph. 3. In any contract awarded to a bidder who received preference as a domestic contractor in accordance with the Page 2 foregoing, appropriate provisions will be included limiting the right of the contractor to subcontract any portion of the works in excess of the percentage indicated under paragraph 2 (b) (iii) above. 4. Please confirm your agreement with the foregoing by signing the enclosed copy of this letter and returning it to us. Sincerely yours, INTERNATIONAL DEVELOPMENT ASSOCIATION By /s/ Callisto Madavo Acting Regional Vice President Africa CONFIRMED: OFFICE DU NIGER BANQUE NATIONALE DE DEVELOPPEMENT AGRICOLE BY /s/ Nouhoum Samassekou Authorized Representative DATE: July 11, 1988