Conformed Copy - C2190 - Agricultural Sector Adjustment Credit - Amendment

Page 1 January 29,1993 The Hon. Dr. J.S. Mayanja Nkangi Minister of Finance and Economic Planning P.O.-Box 8147 Kampala, Uganda Re: Agricultural Sector Adjustment Credit Credit Number 2190-UG Amendment Dear Mr. Minister, I refer to the Development Credit Agreement between the Republic of Uganda (the Borrower) and the International Development Association (the Association) dated December 19, 1990 for the above- referenced Credit and to the Borrower's request to introduce revisions to the Development Credit Agreement to reflect developments in Uganda since the execution of the Development Credit Agreement. Having reviewed and approved the Borrower's request, we propose to amend the Development Credit Agreement as follows. 1. Section 1.02. (k) and (1) are renumbered as Section 1.02. (1) and (m) respectively, and a new Subsection(k) is added to read: (k) "SITC" means the Standard International Trade Classification, Revision 3 (SITC, Rev. 3) published by the United Nations in Statistical papers, Series M, No 343 (1986);". 2. Paragraph 2 (c) of Schedule 1 to the Development Credit Agreement (including the Annex to Schedule I referred to therein) is deleted and replaced by the following provision: (c) the term "eligible goods" means any goods imported during the execution of the Program other than goods included in the following SITC groups or sub-groups, or any successor groups or sub-groups under future revisions to the SITC, as designated by the Association by notice to the Borrower: Group Subgroup Description of Items 112 Alcoholic beverages 121 Tobacco, unmanufactured, tobacco refuse 122 Tobacco, manufactured (whether or not containing tobacco substitutes) 525 Radioactive and associated materials Group Subgroup Description of Items 667 -- Pearls, precious and Page 2 semiprecious stones, unworked or worked 718 718.7 Nuclear reactors, and parts thereof, fuel elements (cartridges), nonirradiated for nuclear reactors 897 897.3 Jewelry of gold, silver or platinum group metals (except watches and watch cases) and goldsmiths, or silversmiths' wares (including set gems) 971 Gold, monetary (excluding gold ores and concentrates)" 3. Paragraph 3 (d) of schedule 1 to the Development Credit Agreement shall read: "(d) Category 7 for expenditures: (i) in excess of an aggregate amount equivalent to SDR 18,800,000 for petroleum products; (ii) for goods procured under contracts costing less than $5,000 equivalent; (iii) for goods supplied under a contract which any national or international financing institution or agency other than the Association shall have financed or agreed to finance; and (iv) for goods intended for a military or paramilitary purpose or for luxury consumption." 4. In Paragraph 4 of Schedule 1 to the Development Credit Agreement the amount "$100,000" in line 4 is deleted and replaced by the amount $250,000." 5. In Section III of Schedule 3 to the Development Credit Agreement 5.1. The amount "$2,000,000" in line 2 of paragraph 1 is deleted and replaced by the amount "$1,000,000." 5.2. The amount "$2,000,000" in line 2 of paragraph 2 is deleted and replaced by the amount "$1,000,000"; and sub-paragraph (b) shall read: "(b) by other purchasers, in accordance with established commercial practice, except where direct contracting is permitted under paragraph 3.5 of the Guidelines." Please confirm your agreement to the proposed amendment by signing, dating and returning to us the enclosed copy of this letter at which time the amendment shall constitute a binding agreement between the Borrower and the Association. Very truly yours, International Development Association Francis X. Colaco Director Eastern Africa Department Africa Region Page 3 CONFIRMED THE REPUBLIC OF UGANDA By Minister of Finance and Economic Planning Authorized Representative Date January 25, 1993