Conformed Copy - L4019 - Manila Second Sewerage Project - Amendment

The World Bank Resident Mission Philippines Telephone: (632) 637-5855 or 917-3000 INiERNATfONALBASK FOR RECONSTRUCTION AND DEVELOPMENT 23nd Floor Taipan Place FAcsimile: (632) 637-5870 or 917-3050 INTERNATIONAL DEVELOPMENT ASSOCIATION Emerald Avenue, Ortigas Center Cable Address: INDEVAS Pasig City, Philippines August 31, 1999 Hon. Edgardo Espiritu Secretary Department of Finance Roxas Blvd. Manila. Republic of the Philippines Mr. Reynaldo B . Vea, Ph.D. Adminstrator, Metropolitan Waterworks and Sewerage System Katipunan Road, Balara, Quezon City 1 105 Philippines Dear Secretary Espiritu and Mr. Vea: Re :Manila Second Sewerage Project (MSSP) Loan No. 4019 PH Amendment to Loan Agreement I refer to the Loan Agreement dated June 19, 1996, between the International Bank for Reconstruction and Development (the "Bank") and the Metropolitan Waterworks and Sewerage `System (the "Borrower") for the above-referenced Project, as amended by the Agreement Amending Loan Agreement dated March 17, 1998 (the "Loan Agreement") and to the letter dated May 3, 1999, from Administrator, Reynaldo B . Vea, requesting the Bank to amend the Loan Agreement. I am pleased to inform you that the Bank agrees to amend the Loan Agreement as follows : 1. Paragraph I of Part A of Schedule 2 is amended to read as follows : 1 "Construction of a barge loading station at Napindan with a capacity to transfer about 500 cubic meters per day of septage from collecting vehicles to barges, and the carrying out of septage trials ." 2. Paragraph 2 of Part A of Schedule 2 is amended to read as follows : the pumping station and sedimentation tanks to provide mechanical treatment "Upgrading of the Ayala sewerage system, including the repair of of septage, and the repair of pipes, equipment and works ." 3 . Paragraph 3 of Part B of Schedule 2 is amended to read as follows : repair of"Upgrading pipes, equipment, works, and pumping stations, defectiveof the Manila central sewerage system, including the minimizing of the entry of rain water into the system, and the carrying RCA 248423. : WUI 64145 .: FAX (202) 477-6391  -2- August 31, 1999 out of septage trials." 4. Part C is added to Schedule 2 and reads as follows : "PART C: MWSS "Strengthening of MWSS in project and financial management as related to the implementation of the Project ." 5 . The first paragraph of Part C to Schedule 4 is renumbered Paragraph 1 and reads as follows : "National Competitive Bidding Goods estimated to cost $200,000 equivalent or less per contract, up to an aggregate amount not to exceed $1,510,000 equivalent, and (b) works under Part A( I ), A(2), B(2) and B(3) estimated to cost $1,000,000 equivalent or less per contract up to an aggregate amount not to exceed $2.500,000 equivalent. may be procured under contracts awarded in accordance with the provisions of paragraphs 3 .3 and 3 .4 of the Guidelines ." 6. A new paragraph 2 is added to read as follows: National Shopping Goods estimated to cost less than $100, 000 equivalent per contract, up to an aggregate amount not to exceed $500,000 equivalent, may be procured under contracts awarded on the basis of national shopping procedures in accordance with the provisions of paragraphs 3 .5 and 3 .6 of the Guidelines ." 7. A new paragraph 3 is added to read as follows: "International Shopping Goods estimated to cost less than $100, 000 equivalent per contract, up to an aggregate amount not to exceed $500.000 equivalent may be procured under contracts awarded on the basis of international shopping procedures in accordance with the provisions of paragraphs 3.5 and 3.6 of the Guidelines ." 8. A new paragraph 4 is added to read as follows : "Direct Contracting Goods which are of a proprietary nature, or which are procured as an extension of an existing contract must be purchased from the original supplier to be compatible with existing equipment or with a particular supplier as a condition of a performance guarantee and costing $100,000 equivalent or less per contract, up to an aggregate amount not to exceed $600,000, may, with the Bank's prior agreement, be procured in accordance with the provisions of paragraph 3 .7 of the Guidelines."  -3- August 31, 1999 9. Paragraph I of Part C of Schedule 4, is amended to read as follows : "1 . Selection Based on Consultants' Qualifications cost lessServices$100,000 equivalent per contract may be procured under under Parts A(5), B(7) and C of the Project estimated to than contracts awarded in accordance with the provisions of paragraphs 3 .1 and 3 .7 of the Consultant Guidelines ." Except as specifically amended by this amendment letter, all provisions of the Loan Agreements otherwise remain in full force and effect . Please confirm your agreement to the amendments set out above by having authorized representatives of the Borrower and Guarantor sign the form of confirmation set forth hereinbelow, and returning one fully executed original of this amendment letter to us at your earliest convenience and retaining originals of the letter for your records . This amendment letter shall become effective as of the date it is fully executed by all parties thereto . , Sincerely, INTE ATIONAL BANK FOR RECONSTR T ON AND DEVELOPMENT Acting Country Director, Philippines East Asia and Pacific Region CONFIRMED: REPUBLIC OF E PHILIPPINES fl- By BANARES Na-Undei wore i,ary of Finasce Date: 7 October 1999 I- METROPOLITAN WATERWORKS AND SEWERAGE SYSTEM