Conformed Copy - L2889 - Power Sector Adjustment Loan - Amendment 3

Page 1 August 14, 1989 H. E. Dr. Luis Fernando Alarcon Mantilla Ministro de Hacienda y Credito Publico Ministerio de Hacienda y Credito Publico Carrera 7, No. 6-45, Oficina 801 Re: Loan No. 2889-CO - Power Sector Adjustment Loan - Amendment to the Loan Agreement Dear Sir: I refer to the Loan Agreement, dated March 16, 1988 (the Loan Agreement) for the above referenced Loan between the Republic of Colombia (the Borrower) and the International Bank for Reconstruction and Development (the Bank) and your request to amend the Loan Agreement for the purposes of the release of the second Tranche provided under the Loan Agreement. I am pleased to inform you that the Bank agrees to amend the Loan Agreement as hereby proposed: 1. Section 1.02 is amended by deleting paragraph (p) thereof and substituting it by the following: "(P) "Loss Reduction Program" means the Borrower's plan to reduce energy losses by the Electric Power Companies set forth in the Plan de Emergencia de Recuperacion de Perdidas y Cartera dated April 1989, and the Informe de Avance on such plan dated June 1989, furnished to the Bank through letters from the Borrower's Ministry of Mines and Energy dated April 28, 1989 and June 30, 1989, respectively." 2. By deleting paragraph 1 of Schedule 4A to the Loan Agreement and renumbering the remaining paragraphs accordingly and deleting the definition of "Energy Board proposed law" set forth in its last paragraph. 3. By adding the following new paragraph 6 and definition (c) to Schedule 4 B to the Loan Agreement: "6. The Energy Board proposed law shall have been enacted or, in the event that such proposed law is not enacted, the Borrower shall have taken all action as shall be necessary for the achievement of the policy objectives of such proposed law. (c) "Energy Board proposed law" means the proposed law submitted by the Executive Branch of the Borrower to its Congress in November 1986, providing for the establishment of an energy board." In this amendment letter, unless its context otherwise requires, the several terms defined in the Loan Agreement and in the General Conditions (as so defined) have the respective meanings therein set forth. Please confirm your agreement to the foregoing by signing and dating the attached confirmation copy of this Amendment Letter and returning the same to the undersigned. Sincerely yours, INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Page 2 By /s/ Ping-Cheung Loh Director, Country Department III Latin America and the Caribbean Region CONFIRMED: REPUBLIC OF COLOMBIA By /s/ Luis F. Alarcon Date: August 17, 1989