Conformed Copy - C1809 - Public Financial Management Project - Amendment 3

Page 1 November 7, 1995 Mr. Fernando Candia Minister of Finance and/or Mr. Gonzalo Afcha Secretary of Finance Ministry of Finance Cajon Postal - Ministerio de Finanzas Calle Bolivar, esq. Indaburo No. 688 La Paz, Bolivia Dear Mr. Minister: Re: BOLIVIA: Dutch Grant Related to PPF Nos. 638-0-BO and 638-1-BO and to Credits Number 1809-BO, 1977-BO and 2092-BO Fourth Amendment to the Dutch Grant Agreement (TF 22359) We refer to the Dutch Grant Agreement between the Republic of Bolivia (the Recipient) and the International Development Association as Administrator of Grant Funds provided by the Minister for Development Cooperation of the Netherlands dated July 29, 1993 (the Dutch Grant Agreement), as amended on October 4, 1993, January 11, 1994, and November 23, 1994. We are pleased to inform you that we agree with your proposal to modify certain provisions of the Dutch Grant Agreement such that in the table in Schedule I to the Dutch Grant Agreement, the amounts in Category 2 are hereby allocated as: Amount of the Grant Allocated (Expressed in % of Expenditures to be "Category Dutch Guilders) Financed (2) Eligible Expenditures related to the First IDA Agreement: (a) Consultants' services 69,000 100% (b) Goods 60,000 100% of foreign expenditures, 100% of local expenditures (ex- factory cost) and 85% of local expenditures for other items procured locally (c) Works 753,000 100% We also wish to advise you that the Closing Date of the Dutch Grant Agreement is hereby extended to June 30, 1996. Please confirm your agreement to the foregoing amendment by signing and dating both duplicate originals of this letter in the space provided below, and returning one of the duplicate originals to us at your earliest convenience. This amendment will become effective upon receipt by the Administrator of one fully executed original of this letter. Sincerely, INTERNATIONAL DEVELOPMENT ASSOCIATION Page 2 as Administrator of Grant Funds provided by the Minister for Development Cooperation of the Netherlands Paul Isenman Country Director Latin America and the Caribbean Region Confirmed: REPUBLIC OF BOLIVIA FERNANDO CANDIA CASTILLO Authorized Representative Date: October 11, 1995