Conformed Copy - C2974 - Second National Agricultural Services Development Project - Amendment 1

Page 1 May 8, 1998 H.E. Tertius Zongo Ministre de l'Economie et des Finances Ministry of Economy and Finance Ouagadougou, Burkina Faso Excellency: Credit No. 2974 BUR (Second National Agricultural Services Development Project) Waiver of Effectiveness Condition/ Amendment to the Development Credit Agreement Please refer to the Development Credit Agreement (the "Agreement") dated December 15, 1997, between Burkina Faso (the Borrower) and the International Development Association (the Association). As you know, the above-referenced Project is due to become effective on May 14, 1998. It has recently come to our attention that the effectiveness condition referred to in Section 6.01. (d) of the Agreement (relating to the employment of independent auditors) might delay project effectiveness. In order not to unduly delay the Project effectiveness, we would propose to waive the effectiveness condition referred to in Section 6.01. (d) and instead provide for a dated covenant dealing with the employment of independent auditors. It is of course understood that all other effectiveness conditions referred to in Section 6.01. will have to be met before May 14, 1998 for the Project to become effective. We are pleased to confirm, therefore, our consent to amend the Agreement as follows: 1. Section 6.01 (d) is deleted and Section 6.01 (e) is renumbered Section 6.01 (d). 2. A new paragraph is added at the end of Part I of Schedule 4: "9. The Borrower shall, no later than November 30, 1998, employ the independent auditors referred to in Section 4.01 (b) of this Agreement in accordance with the provisions of Section II of Schedule 3 to this Agreement." If you agree with the foregoing amendments, please sign and date this letter in the spaces provided below. This amendment letter shall be executed in two counterparts, each of which shall be an original. Upon your confirmation, please return one fully executed original to us. The provisions of this amendment letter will become effective as of the date the Association receives one fully executed original of this amendment letter. Sincerely, INTERNATIONAL DEVELOPMENT ASSOCIATION By /s/ Hasan Tuluy Country Director for Burkina Faso Africa Region AGREED: BURKINA FASO By /s/ Tertius Zongo Authorized Representative Date: May 12, 1998 Page 2