Conformed Copy - C1989 - Health and Nutrition Project - Amendment

Page 1 May 6, 1993 His Excellency Eneas Comiche Minister of Finance Ministry of Finance Maputo, Mozambique Excellency, Re: (Credit No. 1989-MOZ) Health and Nutrition Project Amendment to Development Credit Agreement We refer to the above-mentioned Development Credit Agreement (the Agreement) dated April 28, 1989, between the Republic of Mozambique (the Borrower) and the International Development Association (the Association). Further to discussions held between representatives of the Borrower and the Association, we are pleased to inform you that the Association hereby agrees to amend the Agreement, as follows. 1. Section 2.03 of Article II of the Agreement is amended and restated in its entirety to read: "The Closing Date shall be December 31, 1995 or such later date as the Association shall establish. The Association shall promptly notify the Borrower of such later date." 2. The table set forth in paragraph 1 of Schedule 1 to the Development Credit Agreement is amended and restated in its entirety to read as following: Amount of the Credit Allocated (expressed in % of Expenditures Category SDR Equivalent) to be Financed (1) Civil Works (a) under Parts 2,090,000 100% of foreign B(1), (b) (i), expenditures and and B(5) of the 90% of local Project expenditures (b) under Part 2,640,000 100% of foreign B(1), (b) (ii), expenditures and of the Project 90% of local expenditures (2) Vehicles, equipment, furniture and supplies, including pharmaceutical products: (a) under Parts 7,700,000 100% of foreign A(1), A(2) B(1), expenditures and B(2), B(3) and 100% of local B (5) of the Project expenditures (ex-factory cost) and 90% of other other local expenditures (b) under Parts A(3) 500,000 and B(6) of the Project Page 2 (3) Consultants' 100% services, studies and audits (a) under Parts A(1), 5,000,000 A(2), B(1), B(2), B(3), B(4) and B(5) of the Project (b) under Parts 690,000 A(3), and B(6) of the Project (4) Training: 100% (a) under Parts 725,000 A(1), A(2), B(1), B(2), B(3) and B(5) of the Project (b) under Parts A(3) 80,000 and B(6) of the Project (5) Operating costs: (a) 500,000 (i) equipment operation 60% and maintenance: under Parts A(1), A(2), B(1), B(2), B(3), B(4) and B(5) of the Project (ii) Project management 100% under Part A(2) (c) of the Project (b) 80,000 (i) equipment, operation 60% and maintenance under Parts A(3) and B(6) of the Project (ii) Project management 100% under Part A(3) (c) (i) of the Project (6) Resettlement of 290,000 100% of foreign Plan under Part B expenditures and (4)(b) of the Project 90% of local expenditures (7) Refunding of 630,000 Amount due Project Preparation pursuant to Advance Section 2.02 (c) of this Agreement (7) Unallocated 75,000 TOTAL 21,000,000 3. Paragraph 2 of Schedule 1 to the Agreement in amended by the inclusion of a new sub-paragraph (e), as follows: "(e) the term "pharmaceutical products" means drugs and reagents selected from a list proposed by the Borrower and approved by the Association." Page 3 4. Part B.1(c) of Schedule 2 to the Agreement is amended to read as follows: "(c) acquisition of priority hospital equipment and supplies, including pharmaceutical products." 5. Part E.1(a), Section 1 of Schedule 3 to the Agreement is amended to read as follows: "(a) With respect to each contract for works and goods estimated to cost the equivalent of $250,000 or more, the procedures set forth in paragraphs 2 and 4 of Appendix 1 to the Guidelines shall apply. Where payments for such contract are to be made out of the Special Accounts A and B, such procedures shall be modified to ensure that the two conformed copies of the contract required to be furnished to the Association pursuant to said paragraph 2 (d) shall be furnished to the Association prior to the making of the first payment out of the Special Accounts A and B in respect of such contract." Please indicate your agreement with the foregoing by counter- signing and dating the form of confirmation on the two original copies of this letter provided and returning one original, as countersigned, to us. This amendment shall become effective as of the date by the Association of this letter duly countersigned by you. Stephen Denning Director Southern Africa Department CONFIRMED: REPUBLIC OF MOZAMBIQUE By: Authorized Representative Date: May 5, 1993