Conformed Copy - C2130 - Technician Education Project - Amendment

Page 1 June 20, 1991 Principal Secretary Manpower Planning and Labor Department Government of Madhya Pradesh Ground Floor Room No. 97 Vallabh Bhawan Bhopal, India Re: Development Credit No. 2130-IN/Loan No. 3195-IN (Technician Education Project) - Amendment of Schedule 1 to the Project Agreement Dear Sir: We refer to the Project Agreement (technician Education Project) among the International Development Association (the Association), the International Bank for Reconstruction and Development (the Bank) and the State of Bihar, the State of Gujarat, the State of Karnataka, the State of Kerala, the State of Madhya Pradesh, the State of Orissa, the State of Rajasthan and the State of Uttar Pradesh (the Project States), dated August 13, 1990. We refer also to the request by Mr. Hardeepak Singh, Director, Department of Economic Affairs of the Borrower, on behalf of the Project States, during his recent visit to Washington, D.C. from February 4 to 8, 1991, to amend the procurement procedures for civil works under the Project. The Bank and the Association are pleased to inform you that, pursuant to the above request, the Association and the Bank hereby agree to amend Schedule 1 to the Project Agreement as follows: 1. Paragraph 1 of Part C is substituted by the following new paragraph 1 as follows: "1. (a) Except as provided in sub-paragraphs (b) and (c) hereof, contracts for civil works shall be awarded, on the basis of competitive bidding, advertised locally, in accordance with procedures satisfactory to the Association and the Bank. (b) Except as provided in sub-paragraph (c) hereof, civil works estimated to cost less than the equivalent of $300,000 per contract, up to an aggregate amount not exceeding $51,000,000 equivalent, may be procured under contracts awarded on the basis of comparison of price quotations solicited from a list of at least three contractors eligible under the Guidelines, in accordance with procedures acceptable to the Association and the Bank. (c) Civil works estimated to cost less than the equivalent of $50,000 per contract, up to an aggregate amount not exceeding $18,000,000, may be carried out by force account under the supervision of Public Works Department Construction Units or by contracts directly negotiated with one qualified contractor in accordance with procedures satisfactory to the Association and the Bank." 2. In paragraph 1 (a) of Part D, the phrase "civil works, equipment and vehicles estimated to cost the equivalent of $200,000 or more" is substituted with the phrase: "civil works, estimated to cost the equivalent of $300,000 or more, and equipment and vehicles, estimated to cost the equivalent of $200,000 or more,". Please confirm the agreement, on behalf of your Project State, to the foregoing amendment by signing and dating the confirmation form on the enclosed copy of this letter and returning it to us for our record. Counterparts of this letter are being sent to the other Project Page 2 States for their confirmation. The amendment will become effective as of the date hereof upon receipt of confirmation by us from all the Project States. A copy of this letter is being forwarded to the Secretary to the Government of India, Ministry of Finance, for his record. Heinz Vergin Director Country Department 4 Asia Region CONFIRMED: STATE OF MADHYA PRADESH By: Authorized Representative Date: 08/10/91 cc: The Secretary to the Government of India Ministry of Finance Department of Economic Affairs New Delhi, India