Conformed Copy - C1880 - Energy Project - Amendment 1

Page 1 February 3, 1989 His Excellency Minister of Plan and Regional Planning Niamey Republic of Niger Re: REPUBLIC OF NIGER - Credit no. 1880 NIR (Energy Project) Amendment to Development Credit Agreement Excellency, Reference is made to the Development Credit Agreement for the above-mentioned Project dated March 18, 1988, between Republic of Niger (the Borrower) and International Development Association (the Association). In order to expedite disbursements, the Association proposes to modify the disbursement conditions in the following manner: In the table in paragraph 1 in Schedule 1 to the Development Credit Agreement, Category (1) is deleted and replaced with the following: Amount of the Credit Allocated % of (Expressed in expenditures Category SDR Equivalent) to be financed (1) Part B of the Project: (a) civil works for 400,000 50% Part B.5 (b) supplies and erection 1,700,000 80% for Part B.2 (c) supplies and erection 7,530,000 80% for Part B.3 (a) (d) supplies and erection 1,640,000 80% for Part B. 3 (b) (e) consultants' 1,450,000 100% services for construction supervision under Part B.1 (f) consultants' 1,150,000 100% services for Part B.4 (a) (g) technical assistance, 2,970,000 100% training and consul- tants' services (except for Part B.4 (a)) (h) goods for Part B.5 1,960,000 80%" -2- In paragraph 3 of said Schedule 1, subparagraphs (b) and (c) are deleted and replaced with the following: Page 2 "(b) expenditures made in respect of Category (1) (c) and (e) unless the KfW Grant Agreement and the EIB Credit Agreement have been executed and delivered and all conditions precedent to their effectiveness or to the right of the Borrower to make withdrawals thereunder have been fulfilled; (c) expenditures made in respect of Category (1) (c), (e) and (f) unless the Borrower and Nigeria, and NIGELEC and NEPA have concluded arrangements, satisfactory to the Association, for the construction and management of the transmission line referred to under Part B.1 of the Project; (d) expenditures made in respect of Category (1) (f) unless the Association has determined that the project referred to under Part B.4 (a) of the Project is economically feasible and environmentally sound; and" Paragraph 3.(d) of said Schedule 1 is relettered to become paragraph 3 (e). In Schedule 2 to the Development Credit Agreement, Part B.3 is deleted and replaced by the following: "3. (a) Construction of about 80 Km of transmission lines from Gazoua to Aguie and Tessaouna, and from Maradi to Tchadoua, and rehabilitation and extension of 20 kV and low voltage distribution facilities in the eastern part of Niger (including electrification of new centers); and (b) rehabilitation and extension of 20 kV and low voltage distribution facilities in Niamey." Please signify your agreement with the foregoing by signing and dating the form of confirmation on the enclosed copy of this letter and returning it to US. Very truly yours, Jean-Francois Bauer Acting Director Sahelian Department Africa Region CONFIRMED: REPUBLIC OF NIGER By Authorized Representative