Conformed Copy - C2115 - Hyderabad Water Supply and Sanitation Project - Amendment 1

Page 1 March 8, 1990 Mr. V. S. Oberoi Deputy Secretary Department of Economic Affairs Ministry of Finance Government of India Dear Mr. Oberoi, INDIA: Hyderabad Water Supply and Sanitation Project Changes to the Legal Agreements The purpose of this letter is to ask you to obtain such authority as may be required to indicate the concurrence of the Government of India, the Government of Andhra Pradesh and the Hyderabad Metro Water Supply and Sewerage Board to certain changes to each of the Development Credit Agreement, the Andhra Pradesh Agreement and the Project Agreement respectively, as negotiated for the above project. The need for these changes arises from the delay in Board presentation, now planned for March 27, 1990, from the date anticipated by all concerned at the time of negotiations. The changes proposed, as discussed with you, are indicated below. 1. Development Credit Agreement Section 2.07(a): This section now reads: "(a) Subject to paragraphs (b) and (c) below, the Borrower shall repay the principal amount of the Credit in semi-annual installments payable on each January 15 and July 15 commencing January 15, 2000 and ending July 15, 2024. Each installment to and including the installment payable on July 15, 2009 shall be one and one-fourth percent (1-1/4%) of such principal amount, and each installment thereafter shall be two and one-half percent (2-1/2%) of such principal amount." We propose to change the three dates given in this section as follows: From January 15, 2000to July 15, 2000 From July 15, 2024 to January 15, 2025 From July 15, 2009 to January 15, 2010 2. Andhra Pradesh Agreement Section 2.10: This section now reads: "Andhra Pradesh shall remit to the Board the arrears in payments in respect of standpost charges due from the Hyderabad Municipal Corporation to the Board, in five equal annual installments, the first installment to be remitted not later than March 31, 1990." We propose to change the date given in this section from March 31, 1990 to June 30, 1990. 3. Project Agreement Section 4.03: This section now reads: "The Board shall, not later than March 31, 1990, establish and, thereafter, levy a sewerage service charge as a surcharge of not less than twenty percent on charges for water service, to be payable by all water consumers who are served by a private water connection and whose property abuts a street at a point along its length at which a public sanitary sewer is provided." As discussed, we will change the date given in this section from March 31, 1990, to September 30, 1990. 4. Project Agreement Section 6.01: We need a cable address for the Hyderabad Metro Water Supply and Sewerage Board (HMWSSB) to complete this section. We would also appreciate confirmation of HMWSSB's telex no. 953 425-6325. Page 2 As discussed, we will proceed to make the changes indicated forthwith in order to avoid any further delays in Board presentation. However, for the record and upon your receipt of authorization, could you kindly indicate your concurrence to the contents of this letter by your signature where indicated below. With best regards. Sincerely, Richard L. Skolnik, Chief Population, Human Resources, Urban and Water Operations Division, Country Department 4, India Concurred as authorized: /s/ V.S. Oberoi Date: