Conformed Copy - L2978 - Irrigation Engineering Project - Amendment

Page 1 His Excellency September 17, 1991 Hocine Benissad Minister of Economy Ministry of Economy Algiers Democratic and Popular Republic of Algeria Re: Loan No. 2978 AL (Irrigation Engineering Project) Modification to the Amendment to the Loan Agreement Your Excellency: Please refer to the Loan Agreement for the above-mentioned Project, dated January 13, 1989, entered into by and between the Democratic and Popular Republic of Algeria (the Borrower) and the IBRD (the Bank). I am pleased to inform you that, pursuant to your request of September 10, 1990, subsequent letter from the Ministry of Equipment of April 21, 1991, and telex from your Ministry of August 27, 1991, the Bank agrees to amend the Loan Agreement to (a) reflect the creation of the Ministry of Equipment and Housing which has taken over the functions of the former Ministry of Hydraulics and Forestry, (b) replace the Ministry of Finance by the Ministry of Economy as the Borrower's representative to the Bank, and (c) define the new allocations of the Loan amount required at mid-term of the Project implementation period. The amendments are the following: 1 - Section 1.02 (a) is deleted and replaced by the following: "(a) "MEL" means Ministere de l'Equipement et du Logement, the Borrower's Ministry of Equipment and Housing;" 2 - In section 3.01, the term "MHF is deleted and replaced by the term "MEL;" 3 - Section 6.01 is deleted and replaced by the following: "Section 6.01. The Minister of the Borrower in charge of Economy is designated as representative of the Borrower for the purposes of section 11.03 of the General Conditions." 4 - In section 6.02, the designation "Ministry of Finances" is deleted and replaced by "Ministry of Economy"; 5 - Paragraph 1 of Schedule 1 is deleted and replaced by the attached text (see Attachment to this letter); 6 - Parts B (1) and B (2) of Schedule 2 are deleted and replaced by the following: " (1) Preparation of feasibility studies for the development of large scale irrigation on about ten areas covering about 120, 000 hectares. (2) Preparation of detailed design and tender documents for selected schemes identified on the basis of work carried out under part B (1) of the Project. (3) Modification of the existing detailed design for a scheme covering about 4,000 hectares. 7 - Part C ( 1) of Schedule 2 is deleted and replaced by the following: "(1) Provision to MEL, to AGID, to Agence Nationale tea Ressources Hydrauliques and to Institut National de Cartographie of technical and scientific materials and equipment needed to carry out parts A and B of the project." Page 2 Please confirm your agreement with the foregoing by signing and dating the attached duplicate original of this amendment letter, and returning it to us at your earliest convenience. A signed original of this amendment letter is enclosed herewith for your records. Very truly yours, INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Rene Costa Acting Director, Country Department II Europe, Middle East and North Africa AGREED AND CONFIRMED: DEMOCRATIC AND POPULAR REPUBLIC OF ALGERIA By __________________________ Authorized Representative Date: 7 October 1991 Attachment The table below sets forth the Categories of items to be financed out of the proceeds of the Loan, the allocation of the amounts of the Loan to each Category and the percentage of expenditures for items so to be financed in each Category: Amount of the Loan Allocated % of (Expressed in Expenditures Category Dollar Equivalent) to be Financed (1) Engineering consultants 11,500,000 70% for Parts A and B of the Project, including for geotechnical studies. (2) Technical assistance 1,200,000 70% for Part C of the Project. (3) Technical, scientific and 1,200,000 l00% of foreign transport equipment for expenditures Part C of the Project. and 80% of local expenditures (4) Unallocated 100,000 TOTAL 14,000,000