Conformed Copy - C2088 - The Alleviation of Poverty and Social Costs of Adjustment Project - Amendment

Page 1 September 25, 1992 The Hon. Dr. J.S. Mayanja Nkangi Minister of Finance and Economic Planning P.O. Box 8147 Kampala, Uganda Re : The Alleviation of Poverty and Social Costs of Adjustment Credit Number 2088-UG (Amendment) Dear Minister Nkangi I refer to the Development Credit Agreement for the above- referenced project (PAPSCA), dated February 8, 1990, between The Republic of Uganda (the Borrower)and the Development Association (the Assc>cial-ion), as amended, and to your request for the opening of a second special account to cover the Veterans Assistance - nent of the Project. In order to implement your request, which we find acceptable, we propose to amend the Develpment Credit Agreement, as amended, as follows: 1. ARTICLE I Section 1.02 (i) shall read: "(j) Special Account" means each of the accounts referred to in Section 2.02 (b) of this Agreement." 2. ARTICLE II Section 2.02 (b) shall read: "(b) The Borrower shall: (i) for the purposes of Categories (1) through (31) of the table in paragraph 1 of Schedule 1 to this Agreement, open and maintain in dollars, a special deposit account (hereinafter referred to as Special account A) in a commercial bank on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure or attachment; and (ii) for the pruposes of Categories (32) through (36) of the table in paragraph 1 of Schedule 1 to this Agreement, open and maintain in dollars, a special deposit account (hereinafter referred to as Special Account B) in a commercial bank on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure or attachment. Deposits into, and payments out of the Special Accounts shall be made in accordance with the provisions of Schedule 5 to this Agreement." 3. Schedule 5 3.1 Paragraph (a) shall read: '(a) the term 'Eligible Categories' means: (i) in respect of Special Account A, Categories (1) through (31) set forth in the table in paragraph 1 of Schedule 1 to this Agreement: and (ii) in respect of Special Account B, Categories (32) through (36) of said table." Page 2 3.2 Paragraph (c) shall read: " (c) the term 'Authorized Allocation' means: (i) an amount equivalent to $3,000,000 to be withdrawn from the Credit Account and deposited into Special Account A; and (ii) an amount equivalent to $500,000 to be withdrawn from the Credit Account and deposited into Special Account B all pursuant to paragraph 3 (a) of this Schedule." Please confirm your agreement to the foregoing proposed amendment by signing, dating and returning the enclosed copy of this letter to us, at which time the amendment shall constitute a binding agreement between the Borrower and the Association. Francis X. Colaco Director Eastern Africa Department Africa Region CONFIRM= THE REPUBLIC OF UGANDA By Authorized Representative Date September 25, 1992