Conformed Copy - C1890 - Small Rural Operations Project - Amendment 1

Page 1 June 15, 1989 His Excellency Mr. Almoustapha Soumaila Minister of Planning Ministry of Planning Niamey Republic of Niger Re: NIGER - Credit No. 1890 NIR (Small Rural Operations Project) Amendment to the Development Credit Agreement Excellency, Reference is made to the Development Credit Agreement dated September 14, 1988, for the Small Rural Operations Project between Republic of Niger (the Borrower) and the International Development Association (the Association). In order to create a separate disbursement category for agricultural extension, the Association hereby proposes to amend paragraphs 1 and 2 of Schedule 1 to the above-mentioned Development Credit Agreement as follows: - In paragraph 1., the description of items to be financed in Categories (2), (4), (5) and (6) is completed with the following words: "except for Part A.2 of the Project" - Category (9) is deleted and replaced by the following: "(9) Unallocated - 2,400,000 (10) Extension costs1,140,000 - 100%" under Part A.2 of the Project - Paragraph 2 is deleted and replaced with the following: "2. For the purposes of this Schedule: (a) the term "extension costs" means the following expenditures for local extension staff: acquisition, operation and maintenance of vehicles and equipment, training, travel allowances and salaries of incremental contractual local extension staff; and (b) the term "operating costs" means the following expenditures for local non- extension staff: operation and maintenance of vehicles and equipment, and salaries of incremental contractual local non-extension staff." Please confirm your agreement with the foregoing by signing and dating the form of confirmation below on the enclosed copy of this letter and returning it to us. Very truly yours, Michael J. Gillette Director Sahelian Department Africa Region Page 2 CONFIRMED: REPUBLIC OF NIGER By Authorized Representative