Conformed Copy - L3585 - Institution Building Project - Amendment 2

Page 1 April 7, 1995 Mr. Armen Yeghiazarian Minister of Economy Ministry of Economy Yerevan Republic of 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 the Republic of Armenia and International Bank for Reconstruction and Development dated April 7, 1993, as amended on January 7, 1994, and to your letter dated March 10, 1995 requesting to introduce certain additional amendments thereto. We hereby agree to amend said Loan Agreement as follows: 1. Schedule 1 is amended by adding a new paragraph 4: 4. The Bank may require withdrawals from the Loan Account to be made on the basis of statements of expenditure for expenditures under: (i) contracts for goods not exceeding $300,000 equivalent; (ii) consultants' contracts with firm not exceeding $150,000 equivalent; (iii) consultants' contracts with individuals and for expenditures for training and operating costs, each not exceeding $50,000 equivalent; under such terms and conditions as the Bank shall specify by notice to the Borrower. 2. Schedule 5, paragraph 1(a) is amended to read as follows: (a) the term "eligible Catecories" means Categories (1), (2) and (3) set forth in the table in paragraph 1 of Schedule 1 to this Agreement. 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. Sincerely, INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Basil Kavalsky Director Country Department IV Europe and Central Asia Confirmed by: L. Barthoudarian Minister of Finance Date: