Conformed Copy - C1998 - Second Power Project - Amendment

Page 1 January 31, 1992 His Excellency Mr. Bassary Toure Minister of Economy and Finance Ministry of Economy and Finance Bamako, Mali MALI: Credit No. 1998-MLI (Second Power Project) Amendment to the Development Credit Agreement Excellency: We refer to the Development Credit Agreement (the "Agreement") for the above-referenced Project between the Republic of Mali (the "Borrower") and the International Development Association (the "Association") dated May 30, 1989. We are pleased to inform you that the Association agrees with the Borrower I o request to modify the table set f orth in paragraph I of Schedule I to the Agreement as follows: Amount of the Credit Allocation of (Expressed in Expenditures Category SDR Equivalent) to be Financed (7) Consultants' services 100% and studies: (a) under Parts E (e) 450,000 and E (f) of the Project (b) under Parts A.2, 1,600,000 D, E (a), E (b), E (c), E (d) and E (g) of the Project (9) Technical assistance, 750,000 100% equipment, training and operating costs under Part G of the Project The paragraph 2 of Schedule 1 to the Agreement is amended as to include the following subparagraph: (C) the term "operating costs" means incremental expenses due to the -Project incurred for items such as: building maintenance costs, vehicles repairs and maintenance costs,. salaries for locally contracted staff, travel and per them for Project staff. The Schedule 1 is completed by the following paragraph: 4. Under Category (9) of paragraph 1 above, future disbursements, above the amount of SDR 250,000 which would be to finance the first year of activity of the implementation unit of the Household Energy Strategy, would be subject to the Borrower obtaining the additional sources of funds necessary for the implementation of this component. Furthermore, we wish to inform you that the Association intends to modify Section 2.02 (b) of the Agreement to read as follows: "The Borrower shall open and maintain in CFAF in a commercial bank, on terms and conditions satisfactory to the Association, Page 2 including appropriate protection against set-off, seizure or attachment: (i) a special account (hereinafter referred to as "Special Account Al') for the purposes of Categories (1) to (6), 7 (b) and (8) of the table set forth in paragraph 1 of Schedule 1 to this Agreement; and (ii) a special account (hereinafter referred to as "Special Account Bl') for the purposes of Categories 7 (a) and (9) of the table set forth in paragraph 1 of Schedule 1 to this Agreement. Deposits into, and payments out of, any of the Special Accounts shall be made in accordance with the provisions of Schedule 3 to this Agreement". The words "the special account" should be replaced by the words "special accounts" in paragraph (c) (i) of Section 4.01. Finally, the Association intends to modify schedule 3 to the Agreement as follows: 1. Paragraph 1 (c) should read: "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 215,000,000 and in the case of Special Account B, to CFAF 25,000,000." 2. The words "the Special Account" should be replaced by the words "any Special Account": (a) in paragraph 2; (b) in paragraph 3, second line; (c) in paragraph 3 (b) (i), first line; (d) in paragraph 4; (e) in paragraph 5; (f) in paragraph 6 (a), second line; (g) in paragraph 6 (b) ; and (h) in paragraph 6 (c) 3. The words "the Special Account" should be replaced by the words "Such Special Account": (a) in paragraph 3, fourth line; (b) in paragraph 3 (b) (i), third line; (c) in paragraph 3 (b) (ii), last line; and (d) in paragraph 6 (a) (B), first line. 4. The words "the Special Account" should be replaced by the words "the relevant Special Account": (a) in paragraph 3 (a); (b) in paragraph 3 (b) (ii), ninth line; (c) in paragraph 5 (b); and (d) in paragraph 6 (a) (B), sixth line. 5. The words "Authorized Allocation" should be replaced by the words "relevant Authorized Allocation" throughout the Schedule (except in paragraph I (c). A copy of this amendment will be sent separately, for information to the Ministry of Mines, Hydraulics and Energy. 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 CONFIRMED: REPUBLIC OF MALI By Authorized Representative Page 3