Nepal - Water Supply and Sewerage Project : Credit 0470 - Agreement Amending Development Credit Agreement - Conformed

CONFORMED COPY CREDIT NO. 470 NEP AGREEMENT AMENDING DEVELOPMENT CREDIT AGREEMENT (Water Supply and Sewerage Project) between KINGDOM OF NEPAL and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated May 27, 1977 AGREEMENT AMENDING DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated May 27, 1977 between KINGDOM OF NEPAL (hereinafter called the Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION (hereinafter called the Association). WHEREAS (A) By a development credit agreement (Water Supply and Sewerage Project) dated May 8, 1974, between the Borrower and the Association (hereinafter called the 1974 Agreement), the Association made a development credit to the Borrower in an amount in various currencies equivalent to seven million eight hundred thousand dollars ($7,800,000) on the terms and conditions set forth in the 1974 Agreement; (B) Supplemental financing is now necessary to cover the estimated increases in the cost of carrying out the Project described in Schedule 2 to the 1974 Agreement; and (C) The Association has agreed to amend the 1974 Agreement by adding the equivalent of four million dollars ($4,000,000) to the amount of the said Credit, upon the terms and conditions hereinafter set forth; NOW THEREFORE, it is hereby agreed as follows: - 2 - ARTICLE 1 Section 1.01. Section 2.01 of the 1974 Agreement is hereby amended to read as follows: "The Association agrees to lend to the Borrower, on the terms and conditions in the Development Credit Agreement set forth or referred to, an amount in various currencies equivalent to eleven million eight hundred thousand dollars ($11,800,000)." Section 1.02. The allocation of amounts of the Credit set forth under paragraph 1 of Schedule 1 to the 1974 Agreement is amended to read as follows: Amount of the Credit Allocated % of (Expressed in Expenditures Category Dollar Equivalent) to be Financed (I) Civil works 4,950,000 60% of total expenditures (II) Pipeline, 2,000,000 equipment, materials, supplies and vehicles (a) Imported 100% of foreign expenditures (b) Locally 100% of local manufactured expenditures (ex-factory) (III) Consultants' 1,850,000 100% of total Services expenditures (IV) Unallocated 3,000,000 TOTAL 11,800,000