Conformed Copy - C2385 - Power Sector Rehabilitation Project - Supplemental Letter 1

Page 1 September 12, 1995 H.E. Jose Pedro de Morais Jr. Minister of Planning Ministry of Planning Largo do Palacio P.O. Box 1205 Luanda, Angola Dear Sir: ANGOLA: Credit No. 2385 ANG (Power Sector Rehabilitation Project) We refer to the Development Credit Agreement dated July 20, 1992 entered into between the Republic of Angola and the International Development Association (the Association) and the Project Agreement dated July 20, 1992 entered into between Empresa Nacional de Electricidade and the Association in respect of the above-mentioned Project. In response to your request contained in your letter of May 22, 1995, the Association is pleased to agree to the proposed change to Schedule 2 of the Development Credit Agreement by which the addition of a new objective (reestablishment of the generating capacity in the Borrower§s northern and central electricity systems) will allow for the inclusion of a new component (rehabilitation of some thermal and hydro power plants) which we believe will complement the existing Project components. In view of this, the following changes are hereby made in the Development Credit Agreement: 1. In Section 3.01 (b), the words "Parts B and C of the Project" are replaced by the words "Parts C and D of the Project." 2. In Section 4.01 (a), after the words "Part A," the words "and B" are added. 3. In the table contained in paragraph 1 of Schedule 1: (a) under Category (1) (b), the reference to "Part C.2" of the Project becomes a reference to "Part C"; (b) in Category (2) (c), the reference to "Part C.3" becomes a reference to "Part D.2"; and (c) in Category (3) (c), the reference to "Part C" becomes a reference to "Part D". 4. In paragraph 2 (a) of Schedule 1, after the words "electrical equipment," the words "and the Biopio GT thermal and hydro power plants" are added. 5. Schedule 2 is deleted and replaced in its entirety by the new Schedule 2 contained in the annex to this Agreement. 6. In Schedule 3, Part C, a new paragraph 3 is inserted: "3. Proprietary goods, up to an aggregate amount equivalent to $3,000,000, required for the rehabilitation of the Biopio GT thermal and hydro power plants under Part B.1 (c) of the Project may be procured by direct contract, with the prior approval of the Association." 7. In Schedule 3, Part D, paragraph 1 (a), after the words "equivalent of $100,000 or more," the words "and each contract proposed under Part C.3 of this Schedule" are inserted. All other terms and conditions of the Development Credit Agreement remain in full force and effect. The changes incorporated in this amendment letter necessitate amendment to the Project Agreement, and attached for your convenience is a duplicate copy of an amendment letter to be entered into between Empresa Nacional de Electricidade and the Association. Page 2 This amendment letter will become effective on the date that the Association is in receipt of the countersigned copy of this letter together with the copy of the letter amending the Project Agreement countersigned by Empresa Nacional de Electricidade, and we will inform you on such date of the effectiveness of the amendment. If you agree, please sign and return the enclosed copy of this letter. Sincerely, Katherine Marshall Director Southern Africa Department AGREED: By: Jose Pedro de Morais Jr. Date: September 21, 1995