Conformed Copy - C1874 - Priority Works Project - Amendment 1

Page 1 July 6, 1989 Dr. Kwesi Botchwey PNDC Secretary for Finance and Economic Planning Ministry of Finance and Economic Planning P.O. Box M-40 Accra Republic of Ghana Re: GHANA - Credit No. 1874 GH (Priority Works Project) Amendments to the Development Credit Agreement Dear Sir: We refer to the Development Credit Agreement (Priority Works Project) dated February 18, 1988 between the Republic of Ghana and the International Development Association (the Association) as amended by letter agreement dated June 21, 1988. In order to take into account the participation of the Kreditanstalt fur Wiederaufbau and OPEC Fund for International Development in the financing of the Priority Works Project (the Project) the Association hereby proposes that the Development Credit Agreement be amended: 1. In Schedule 1 thereto by: (1) the deletion of the table in paragraph 1 and the substitution therefor of the new table set forth in the Annex to this letter; and (2) the deletion in paragraph 3(b) of the reference to "Category (1)(c)" and the substitution therefor of a reference to Category (1)(b)". 2. In Schedule 2 thereto by: (1) the addition in Part A(b) of the Project next after the word "sidewalks" of the words "and other related improvements"; (2) the deletion of the word "and" at the end of Part A(d) of the Project; (3) the deletion of the period at the end of Part A(e) of the Project and the substitution therefor of a semicolon and the word "and"; (4) the addition next after Part A(e) of the Project of the following new component of the Project: "(f) solid waste management consisting of collection and disposal of household, commercial and industrial refuse"; (5) the deletion of Part B(l) of the Project and the substitution therefor of the following new component of the Project: "(1) Construction in West Nima, Ashiaman (Tema) and Mushie Zongo (Kumasi) of roads, water supply facilities, secondary and tertiary drainage, street lighting and sanitary conveniences."; and (6) the addition next after Part E(l)(f) of the Project of the following new component of the Page 2 Project: "(g) Establishment of a Project Management Unit (PHU) by GHA." Please confirm your agreement with the amendments proposed above by signing the form of confirmation on the enclosed copy of this letter and returning it to us. This amendment shall become effective upon receipt of the signed copy by the Association. Sincerely Yours, Caio K. Koch-Weser Director Western Africa Department CONFIRMED: REPUBLIC OF GHANA By Authorized Representative Date: Copies: The Chief Executive Ghana Highway Authority P.O. Box 1641 Accra, Ghana Managing Director Bank for Housing and Construction P.O. Box MI Accra, Ghana Enclosure ANNEX SCHEDULE 1 Withdrawal of the Proceeds of the Credit 1. The table below sets forth the Category of items to be financed out of the proceeds of the Credit, the allocation of the amounts of the Credit to each Category and the percentage of expenditures for items so to be financed in each Category: Amount of the Credit Allocated % of (Expressed in Expenditures Category SDR Equivalent) to be Financed (1)Civil Works: (a) Part A of the Project 1,400,000 30% (b) Part C (1) 800,000) 100% of foreign of the Project ) expenditures ) and 90% of local Page 3 ) expenditures ) ) (c) Part D (1) 200,000) of the Project (d) Part D (2) 160,000 100% of foreign of the Project expenditures (e) Part B 2,100,000 50% of foreign of the Project expenditures and 65% of local expenditures (2)Vehicles, equipment supplies and spare parts and office furnishing: (a) Part E (1) 230,000) 43% of foreign of the Project ) expenditures and ) 30% of local ex- ) penditures (b) Part E (2) 30,000) of the Project (3)(a) Technical 300,000) assistance, ) consultant ) 30% of foreign services, ) expenditures and training, and ) 50% of local studies under ) expenditures Part E (1) of ) the Project ) ) ) (b) Technical 600,000) assistance, ) consultant ) services, ) studies and ) incentives ) under Part E ) (2) ) of the Project ) (4)Refunding of 730,000 Amount due Project Preparation pursuant to Advance Section 2.02 (c) of this Agreement (5)Unallocated 1,250,000 TOTAL 7,800,000