Conformed Copy - C1849 - National Agricultural Research Project - Amendment 1

Page 1 July 13, 1989 His Excellency Professor George Saitoti Vice President and Minister for Finance The Treasury P. 0. Box 30007 Nairobi, Kenya Your Excellency: Re: National Agricultural Research Project (NARP) (Cr. 1849-KE) Amendment to Development Credit Agreement We refer to the Development Credit Agreement dated May 13, 1988 between the Republic of Kenya and the International Development Association, as amended, and are pleased to confirm our agreement to your request@dated June 28, 1989 to amend the Agreement to allow financing of consultancy services for civil works. The table set forth in Schedule 1 to the Agreement has accordingly been amended to read as shown in the attachment to this letter. With kind regards. Sincerely yours, Callisto Madavo Director Country Department II Africa Region Attachment Cleared with and cc: Messrs. Al Habsy (LEG). Fernando (LOA) cc: Messrs. Ahmed, Mbungu (AF2AA), Bennett (RMEA), Ms. Adu (LEG) o/r SCHEDULE 1 Withdrawal of the Proceeds of the Credit 1. The table below sets forth the Categories of items to be financed out of the proceeds of the Credit, the allocation of the amounts of the Credit to each Category and the percentage of expenditures for items so to be financed in each Category: Amount of the Credit Allocated % of (Expressed in Expenditures Category SDR Equivalent) to be Financed (1) For Part A of the Project: (a) Civil Works 780,000 80% and costs for consultant services for civil works (b) Vehicles, 450,000 100% of for- plant and eign expen- equipment penditures and Page 2 70% of local expenditures (c) Non-salary 1,220,000 (i) 40 % up operating to an costs aggregate amount of SDR 630,000; thereafter (ii) 25% up to an aggregate amount of SDR 1,040,000; and thereafter (iii) 10% up to an aggregate amount of SDR 1,220,000 (2) For Part B: of the Project: (a) Civil Works 5,370,000 80% and costs for consultant services for civil works (b) Vehicles, 2,240,000 100% of foreign plant and expenditures and equipment 70% of local expenditures (c) Non-salary 1,680,000 (i) 40% up to operating an aggregate cost amount of SDR 880,000; thereafter (ii) 25% up to an aggregate amount of SDR 1,430,000; and thereafter (iii) 10% up to an aggregate amount of SDR 1,680,000. (3) Refunding of 550,000 Amount due Project Prepa- pursuant to ration Advance Section 2.02 (4) Unallocated 3,210,000 TOTAL 15,500,000 2. For the purposes of this Schedule: (a) the term "foreign expenditures" means expenditures in the currency of any country other than that of the Borrower for goods or services supplied from the territory of any country other than that of the Borrower; and (b) the term "local expenditures" means expenditures in the currency of the Borrower or for goods or services supplied from the territory of the Borrower. Page 3 3. Notwithstanding the provisions of paragraph 1 above, no withdrawals shall be made: (a) in respect of payments made for expenditures prior to the date of this Agreement; and (b) in respect of payments for expenditures under Category (2) of the table in paragraph 1 above, until the Association has approved the.research programs under Part B of the Project.\1a