Conformed Copy - C2054 - Education Sector Consolidation Project - Amendment

Page 1 July 25, 199_ His Excellency Mr. Bassary Toure Minister of Economy and Finance Ministry of Economy and Finance Bamako, Mali Re: Credit No. 2054 MLI (Education Sector Consolidation Project) Amendment to the Development Credit Agreement Excellency: We refer to the Development Credit Agreement (the "Agreement") for the above-referenced Program between the Republic of Mali (the "Borrower") and the International Development Association (the "Association") dated July 19, 1989. We are pleased to inform you that the Association agrees with the Borrower's amendment request dated July 3, 1991. Consequently, the Agreement is amended as follows: 1. By deleting in Section 2.02 (b) the words "Categories (1) through (7)" and by substituting therefor the words "Categories (1) through (6)". 2. By substituting in line 3 of Section 2.02 (b) the word "account" with the words "deposit account (hereinafter referred to as 'Special Account A')". 3. By inserting in line 5 of Section 2.02 (b) after the word "the Association" the words "including appropriate protection against set-off, seizure or attachment". 4. By substituting in line 6 of Section 2.02 (b) the words "Special Account" with the words "Special Account Al". 5. By changing the lettering of Section 2.02 (c) in 112.02 (d)" and by inserting a new Section 2.02 (c) as follows: "The Borrower shall, for the purposes of Category (7) set forth in paragraph 1 of Schedule I to this Agreement, open and maintain in CFAF a special deposit account in the Bank of Africa (hereinafter referred to as "Special Account Bl') on terms and conditions satisfactory to the Association including appropriate protection against set-off, seizure or attachment. Deposits into, and payments out of, the Special Account B shall be made in accordance with the provisions of Schedule 5 to this Agreement." 6. By deleting in Section 3.01 (c) the words from "at an interest rate" in line 5 to the end of the sentence and by substituting therefor the words It: (i) at an interest rate equal to the taux escompte superieur of BCEAO as established from time to time and increased by a margin set in conformity with BCEAO regulations, satisfactory to the Association; and (ii) for a term of six years including a grace period of two years". 7. By substituting the figure "50%" with "75%" in Category 1 of paragraph 1 of Schedule I to the Agreement. 8. By substituting the figure "80%" with 11100%" in Category 7 of paragraph 1 of schedule 1 of the Agreement. 9. By substituting the amount "1,400,00011 with "1,200,00011 in Category 10 of paragraph 1 of Schedule 1 to the Agreement. 10. By substituting the amount "$100,000" with $10,00011 in paragraph 3 (b) of Schedule 1 to the Agreement. Page 2 11. By inserting after the words "contracts for the procurement of goods" in paragraph 1 of Section III of Schedule 3 to the Agreement the words "estimated to cost the equivalent of $ 100,000 or more each". 12. By deleting paragraph 2 of Section III of Schedule 3 to the Agreement and inserting therefor the following quote "2. Contracts for the "procurement of goods estimated to cost the equivalent of less than $ 100,000 "each shall be awarded: "(a) by purchasers required to follow the Borrower's public procurement "procedures for the importation of goods, on the basis of such procedures, "provided that such procedures shall have been found acceptable by the "Association; " (b) by other purchasers, in accordance with established commercial "practice, provided that such contracts shall be awarded on the basis of "evaluation and comparison of quotations obtained from suppliers from at least "two countries, except that direct contracting procedures acceptable to the "Association may be used where considered appropriate under paragraph 3.5 of "the Guidelines; and " (C) by any purchasers, for the supply of commodities on the basis of "evaluation and comparison of quotations obtained from more than one supplier. "3. With respect to each contract referred to in paragraph I of this "Schedule, the Borrower shall furnish to the Association, prior to the "submission to the Association of the first application for withdrawal of "funds from the Credit Account in respect of such contract, two conformed "procedures followed and such other information as the Association shall "reasonably request. Where payments under a contract are to be made out of the "proceeds of any of the Special Accounts, such copies together with the other "information required to be furnished to the Association pursuant to this "paragraph shall be furnished to the Association as part of the evidence "required under paragraph 4 of Schedule 5 to this Agreement. " 4. With respect to each contract referred to in paragraph 2 of this "Schedule, the Borrower shall furnish to the Association, prior to the "submission to the Association of the first application for withdrawal of "funds from the Credit Account in respect thereof, such documentation and "information as the Association may reasonably request to support withdrawal "applications in respect of such contract. Where payments under a contract are "to be made out of the proceeds of any of the Special Accounts, the "documentation and the information to be furnished to the Association pursuant "to the provisions of this paragraph shall be furnished to the Association "as part of the evidence required under paragraph 4 of Schedule 5 to this "Agreement. "5. The provisions of the preceding paragraph 4 of this Schedule shall "not apply to contracts on account of which the Association has authorized "withdrawals from the Credit Account on the basis of statements of expenditures." unquote. 13. By changing the title of schedule 5 to the Agreement in "Special Accounts". 14. By deleting paragraph 1 (a) of Schedule 5 to the Agreement and substituting therefor the following: "(a) the term "Eligible Categories" means: (i) in the case of Special Account A, Categories (1) to (6) of the table in paragraph 1 of Schedule 1 to this Agreement; and (ii) in the case of Special Account Bl Category (7) of the table in paragraph 1 of the same Schedule;" 15. By deleting paragraph 1 (c) of Schedule 5 to the Agreement and Page 3 substituting therefor the following: "the term "Authorized Allocation" means an amount to be withdrawn from the Credit Account and deposited into each of the Special Accounts pursuant to paragraph 3 (a) of this Schedule, equivalent, in the case of Special Account A, to CFAF 500,000,000, and in the case of Special Account B, to CFAF 100,000,000. 16. By inserting the word "relevant" before the words "Special Account" and "Authorized Allocation" throughout the text of Schedule 5 to the Agreement. Please confirm your agreement to the foregoing by signing and dating the confirmation form on the enclosed copy of this letter and returning it us. The amendment will become effective as of the date of your confirmation. Sincerely yours, INTERNATIONAL DEVELOPMENT ASSOCIATION Katherine Marshall Director, Sahelian Department Africa Region CONFIRMED REPUBLIC OF MALI By The Minister of Economy and Finance