Conformed Copy - C3218 - Second Structural Adjustment Credit - Supplemental Letter 1

Page 1 REPUBLIC OF MADAGASCAR June 10, 1999 International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Re: Credit No. 3218-MAG (Second Structural Adjustment Credit) Section 5. 01 (b) of the Development Credit Agreement Severance Payments to Redundant Employees under the Privatization Program Dear Sirs: With reference to Section 5.01 (b) of the Development Credit Agreement (hereafter referred to as the Agreement) of even date herewith, entered into between the Republic of Madagascar (hereafter referred to as the Borrower) and the International Development Association (hereafter referred to as the Association), and for the purposes of the provisions of Part A.1 of Schedule 2 to the Agreement, we wish to confirm that the Borrower will carry out the action plan referred to in the said Section 5.01 (b) of the Agreement with the required diligence and in accordance with the methodolgy and timetable agreed upon with the Association. Very truly yours, REPUBLIC OF MADAGASCAR By /s/ Tantely Andrianarivo Authorized Representative CONFIRMED: INTERNATIONAL DEVELOPMENT ASSSOCIATION By /s/ Jean-Louis Sarbib Regional Vice President, Africa