Conformed Copy - C2394 - Family Welfare (Urban Slums) Project - Agreement Amending Project Agreement

Page 1 CONFORMED COPY CREDIT NUMBER 2394 IN (Amendment) Agreement Amending Project Agreement (Family Welfare (Urban Slums) Project) between INTERNATIONAL DEVELOPMENT ASSOCIATION and STATE OF ANDHRA PRADESH STATE OF KARNATAKA STATE OF WEST BENGAL Dated August 21, 2000 CREDIT NUMBER 2394 IN (Amendment) AGREEMENT AMENDING PROJECT AGREEMENT AGREEMENT, dated August 21, 2000, between the INTERNATIONAL DEVELOPMENT ASSOCIATION (the Association) and the STATES OF ANDHRA PRADESH, KARNATAKA AND WEST BENGAL, acting by their respective Governors (the Project States). WHEREAS (A) by the Development Credit Agreement dated February 4, 1994 (the Development Credit Agreement) between India (the Borrower) and the Association, the Association has agreed to make available to the Borrower an amount in various currencies equivalent to fifty-seven million seven hundred thousand Special Drawing Rights (SDR 57,700,000) (the Credit) to assist in financing the Project described in Schedule 2 to the Development Credit Agreement; (B) by the Project Agreement dated February 4, 1994 (the Project Agreement) between the Association and the Project States, the Project Page 2 States have agreed to undertake certain obligations in respect of the carrying out of Part A of the Project; (C) project cost savings have arisen under the Project due to, inter alia, foreign exchange rate changes and the availability of alternative sources of funding for certain expenditures previously agreed to be financed out of the proceeds of the Credit; (D) the Borrower has requested the Association to agree to use these project cost savings under the Project to finance (i) the costs of carrying out certain activities under Part A of the Project in certain additional cities and towns in the Project States and (ii) the costs of improving logistics systems for urban family welfare services in the States of Tamil Nadu and Uttar Pradesh, and the Association, after due consideration, has agreed to this request, but only on condition that (a) the Borrower agree to undertake certain additional obligations toward the Association, (b) the Project States agree to undertake certain additional obligations toward the Association and (c) the States of Tamil Nadu and Uttar Pradesh agree to undertake certain obligations toward the Association; and WHEREAS the Project States, in consideration of the Association