Conformed Copy - C3051 - Secondary Education Project - Amendment

Page 1 August 18, 1998 The Honorable Cassim Chilumpha Minister of Finance Ministry of Finance P.O. Box 30049 Lilongwe 3 Malawi Dear Sir: MALAWI: Credit No. 3051-MAI (Secondary Education Project) Amendment to the Development Credit Agreement 1. We refer to the Development Credit Agreement (the Agreement) entered into between the Republic of Malawi (the Borrower) and the International Development Association (the Association), dated April 17, 1998, in respect of the above-captioned Project. We also refer to communications related to the effectiveness of the Credit, particularly related to the acquisition of sites for school construction and the selection of a Financial Management Adviser. 2. This is to inform you of our proposal to waive the condition of effectiveness related to the school sites and to amend Paragraph 3 of Schedule 1 to the Agreement to read as follows: "3. Notwithstanding the provisions of paragraph 1 above, no withdrawals shall be made in respect of payments made for: (a) expenditures prior to the date of this Agreement; and (b) expenditures under category (1) until the Borrower has furnished to the Association evidence, satisfactory to the Association, that the land required for the construction of schools under Part A of the Project and the rights in respect of such land are available for the purposes of the Project." 3. All other terms and conditions of the Agreement, except as amended herein, shall remain in full force and effect. Terms defined in the Agreement and used in this letter shall have the same meaning given therein. 4. If you agree, kindly countersign the enclosed copy of the letter and return it to us. This amendment shall take effect from the date of countersignature. Yours sincerely, By /s/ Laura Frigenti Acting Country Director, Malawi Africa Region CONFIRMED: REPUBLIC OF MALAWI By /s/ Authorized Representative Date: