Conformed Copy - C2010 - Upper Krishna (Phase II Irrigation Project) - Amendment

Page 1 May 20, 1993 The Secretary to the Government of India Ministry of Finance Department of Economic Affairs New Delhi, India The Secretary to the Government of Karnataka Bangalore, Karnataka, India Re: Development Credit 2010-IN and Loan 3050-IN Upper Krishna (Phase II) Irrigation Project Amendments to the Project Agreement Dear Sirs, We refer to the Development Credit Agreement dated June 16, 1989, (hereinafter the "Development Credit Agreement") between India and the International Development Association (hereinafter the "Association"), the Loan Agreement of even date therewith (hereinafter the "Loan Agreement") between India and the International Bank for Reconstruction and Development (hereinafter the "Bank") and the Project Agreement of even date therewith (hereinafter the "Project Agreement") among the Association, the Bank and the State of Karnataka (hereinafter "Karnataka") for the Upper Krishna (Phase II) Irrigation Project (the Project). We also refer to (i) your letter dated September 22, 1992, requesting the Association and the Bank to amend the procurement procedures under the Project to allow the use of force account and shopping procedures, and (ii) our discussion in the field during the last supervision mission regarding the replacement of CADA as the agency responsible for carrying out the resettlement and rehabilitation (R&R) under the Project, by the R&R wing. I am pleased to inform you that, after due consideration, the Association and the Bank have agreed to your requests. Accordingly, the following amendments are introduced to the legal documents. A. Schedule 3 to the Project Agreement 1. Under Part D, a new paragraph 3 is added, and reads as follows: 3. Civil works under Parts A.(2), A.(3) and B of the Project estimated to cost an aggregate amount not to exceed $30,000,000 equivalent, may be carried out through force account, in a manner satisfactory to the Association and the Bank. 2. Under Part D, a new paragraph 4 is added, and reads as follows: 4. Equipment, vehicles and materials estimated to cost the equivalent of less than $20,000 per contract, up to an aggregate amount not to exceed $1,580,000 equivalent, may be procured under contracts awarded on the basis of comparison of price quotations solicited from a list of at least three suppliers eligible under the Guidelines, in accordance with procedures acceptable to the Association and the Bank. B. The Development Credit Agreement and the Project Agreement 1. Paragraph (g) of Section 1.02 of the Development Credit Agreement is deleted and replaced with the following: (g) "R&R Wing" means the Resettlement and Rehabilitation Page 2 Wing established by Karnataka for carrying out Part B of the Project. 2. The term "CADA" is replaced by "R&R Wing" in paragraph 8 of Part B of Schedule 2 to the Development Credit Agreement, and in paragraph 3 of Schedule 2 of the Project Agreement. Please confirm your agreement to the foregoing amendments by signing and dating this letter in the space provided below. This amendment may be executed in several counterparts each of which shall be an original. Upon your confirmation, please return one fully executed original to us. This amendment will become effective on the date of confirmation by all parties. Very truly yours, INTERNATIONAL DEVELOPMENT ASSOCIATION INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By: Heinz Vergin Director Country Department II, India South Asia Region CONFIRMED: INDIA By /s/ Sudha Krishnan Authorized Representative Date 10/06/1993 STATE OF KARNATAKA By N.R. Venkatesha Prasad Authorized Representative Date 05/06/1993