Conformed Copy - L3585 - Institution Building Project - Amendment 1

Page 1 January 5, 1994 Mr. Armen Yeghiazarian Minister of the Economy Yerevan, Armenia Re: Loan No. 3585 AM (Institution Building Project) Amendment to.the Loan Agreement Dear Sir: We refer to the above-referenced Loan Agreement between Republic of Armenia and International Bank for Reconstruction and Development dated April 7, 1993, and to your request to introduce certain additional amendments thereto. We hereby agree to amend said Loan Agreement as follows: 1. Schedule 1 is amended as follows: (a) In Paragraph 1: (i) a new category "Operating Costs of the PIU" is introduced; (ii) Category (4) "Reftinding of Project Preparation Advance" is deleted and the unwithdrawn balance of the amount of the Project Preparation Advance is reallocated to Category (3). Subsequently, Paragraph 1 is amended to read as follows: Amount of the Loan Allocated % of (Expressed in Expenditures Category Dollar Eguivalent) to be Financed (1) Consultants' services, 5,430,000 100% fellowships and training (2) Computers, equipment, 3,770,000 100% of foreign other materials expenditures, 100% of local expenditures (ex-factory cost) and 75% of local expenditures for other items procured locally (3) Operating costs of the PIU 100,000 100% (4) Unallocated 2,700,000 Total 12,000,000 (b) Paragraph 2 is amended by adding a new sub-paragraph (c): (c) the term "operating costs" means the. costs related to the operation of the PIU, including communication costs, translation of the Project documentation, office supply and minor office equipment, but excluding salaries". 2. Section 1.02 (d) is deleted and Section 1.02 (e) is re-lettered. Page 2 3. Section 2.02 (c) is deleted. Please confirm your agreement to the foregoing by signing, dating and returning to us the form of confirmation on the enclosed copy of this letter. This amendment shall become effective upon receipt of the countersigned copy of this letter by us. Very truly yours, INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Bastil Kavalsky Director Country Department IV Europe and Central Asia Region CONFIRMED: REPUBLIC OF ARMENIA By /s/ Authorized Representative Date: January 7, 1994