Conformed Copy - L4174 - Greater Tunis Sewerage and Re-use Project - Supplemental Letter 1

Page 1 REPUBLIC OF TUNISIA December 19, 1997 International Bank for Reconstruction and Development 1818 H Street, N.W. Washington, D.C. 20433 United States of America Re: Loan No. 4174 TUN (Greater Tunis Sewerage and Re-use Project) Procurement Arrangements: International Competitive Bidding and National Competitive Bidding Section 3.02 and Parts B and C.1 of Section I of Schedule 4 to the Loan Agreement Dear Sirs and Mesdames: We refer to Section 3.02 and Parts B and C.1 of Section I of Schedule 4 of the Loan Agreement of even date herewith between the Republic of Tunisia (the Borrower) and the International Bank for Reconstruction and Development (the Bank), in respect of the above-captioned Loan, and to the Guidelines for Procurement under IBRD Loans and IDA Credits published by the Bank in January 1995 and revised in January and August 1996 (the Guidelines). For the purposes of the foregoing provisions of the Loan Agreement, the Borrower hereby confirms that the following points will be taken into account: A. International Competitive Bidding (ICB) 1. Origin of Materials. Bidders will be encouraged to give priority to the use of available local goods, materials and products. 2. Currency. The foreign currency portion of the bid price shall be expressed in the currency or currencies of payment of the contract price. B. International Competitive Bidding and National Competitive Bidding (NCB) 1. Bid Opening. Opening of bids shall take place in public, in the presence of bidders wishing to attend. 2. Evaluation Criteria. Bid evaluation criteria will be stated in the bidding documents. No preference will be granted on the basis of: (a) national origin of the bidder, except for ICB, as provided in paragraphs 2.55 and 2.56 of the Guidelines, and paragraphs 1 through 4 of Appendix 2 thereto; (b) the legal nature of the bidder; or (c) financial facilities offered by a bidder such as export credit or suppliers credit. 3. Public Sector Companies. Any benefit granted to the Borrower's public sector companies over private sector companies or foreign companies in terms of guarantees shall be quantified, when evaluating competing bids, and added to the bid price for the purpose of comparison of bids. Very truly yours, REPUBLIC OF TUNISIA Page 2 By /s/ Noureddine Majdoub Authorized Representative AGREED AND CONFIRMED: INTERNATIONAL BANK FOR  RECONSTRUCTION AND DEVELOPMENT By /s/ Gianni Brizzi Acting Regional Vice President Middle East and North Africa