Conformed Copy - N005 - Disease Control and Health Improvement Project - Interim Fund Credit Supplemental Letter 1

Page 1 KINGDOM OF CAMBODIA March 26, 1997 International Development Association 1818 H Street, N.W. Washington D.C. 20433 United States of America Re: Credit No. N 005 KH (Disease Control and Health Improvement Project) Interim Fund Development Credit Agreement Section 3.01 (b) of the Interim Fund Development Credit Agreement Representations on Project Counterpart Funding Dear Sirs: Reference is made to Section 3.01 (b) of the Interim Fund Development Credit Agreement to be entered into today between the Kingdom of Cambodia (the "Kingdom of Cambodia") and the International Development Association (the "Association") in respect of the Disease Control and Health Improvement Project (the "Project"). Without any restriction or limitation upon any of the provisions of the Interim Fund Development Credit Agreement, the Kingdom of Cambodia hereby undertakes and warrants to the Association that it will make available, promptly as required, and not later than April 1 in each corresponding Fiscal year, the following annual national budgetary Project counterpart funds (in US dollars equivalent), in addition to the Project recurrent costs not financed by the Credit and to be borne by the Kingdom of Cambodia in respect of the Project: $148,850 in Fiscal Year 1997; $364,400 in Fiscal Year 1998; $520,150 in Fiscal Year 1999; $532,950 in Fiscal Year 2000; and $413,650 in Fiscal Year 2001. It is our understanding that, in making the Credit and entering into the Interim Fund Development Credit Agreement with the Kingdom of Cambodia, the Association may rely on the representations contained herein. Very truly yours, Authorized Representative