Conformed Copy - C2288 - Water Supply Sector Project - Amendment 1

Page 1 February 5, 1996 H.E. Severin Mfatiye Minister of Rural Development Ministry of Rural Developpement Bujumbura, Burundi Re: Credit No: 2288 BU (Water Supply Sector Project) Amendments to the Development Credit Agreement Excellency: Please refer to the Development Credit Agreement (the Agreement) dated August 7, 1991 and entered into between the Republic of Burundi (the Borrower) and the International Development Association (the Association) for the Project referenced above as amended to date. Pursuant to discussions held between the representatives of the Borrower and the representatives of the Association and further to your request dated July 25, 1995, and our response dated August 18, 1995, regarding the lifting of suspension and restructuring of the Project, we are pleased to inform you that the Association accedes to your request and proposes to amend the Agreement between us as follows: 1. Section 3.03 is amended in its entirety to read as follows: "Section 3.03. The Borrower shall ensure that the execution of the Project is coordinated through DGHER with the assistance of a manager and an accountant, all with qualifications and experience which shall be, at all times, satisfactory to the Association." 2. The language in Section 3.06 is deleted and replaced with the following new language: "Section 3.06. The Borrower shall, by December 31, 1996: (a) (i) formulate the water supply masterplan; and (ii) carry out the water tariffs study referred to under Part 5 of the Project; and (b) promptly as soon as they become available, submit to the Association for its review and comments the draft water supply master plan and the results and recommendations of the water tariffs study; (c) finalize the draft water supply masterplan by taking into account the comments and recommendations made by the Association; and (d) promptly implement the recommendations of the water tariffs study as agreed upon with the Association." 3. Section 3.08 is hereby deleted. 4. The table set forth in Schedule 1 to the Development Credit Agreement is deleted and replaced with the new table set forth in the Annex to this letter. Please kindly confirm your agreement with these amendments by signing and dating the duplicate original of this letter in the space provided therefor and by returning to us one duplicate original duly signed and confirmed. These amendments shall become effective upon receipt by the Association of one duplicate original of this letter duly signed and confirmed. Sincerely, By /s/ Andrew Rogerson Director Central Africa and Indian Ocean Department Page 2 Africa Region CONFIRMED: REPUBLIC OF BURUNDI By /s/ Title Date: SCHEDULE 1 Withdrawal of the Proceeds of the Credit 1. The table below sets forth the Categories of items to be financed out of the proceeds of the Credit, the allocation of the amounts of the Credit to each Category and the percentage of expenditures for items so to be financed in each Category: Amount of the Credit % of Allocated Expenditures (Expressed in to be Category SDR Equivalent) Financed (1) Equipment: 100% of foreign expenditures and 90% of local expenditures pipes for civil 0 works in Karuzi and Kayanza pipes for civil 14,000 works in Gitega and Muramvya equipment, 248,000 excluding pipes, under Part 1 of the Project (2) Civil works: 100% of foreign expenditures and 90% of local expenditures under Part 1 0 of the Project in Karuzi and Kayanza under Part 1 1,000,000 of the Project for Gitega and Muramvya and under Part 2 of the Project Page 3 (3) Consultants' 3,500,000 100% services and studies (4) Training 150,000 100% (5) Operating costs 450,000 100% of foreign expenditures and 90% of local expenditures (6) Refunding of 240,000 Amount due pursua nt Project Preparation to Section 2.02 (c) of Advance this Agreement (7) Unallocated 548,000 (8) Cancellation 18,000,000 Amount cancelled pursuant to exchange of letters dated July 27, 1995 and --------------- August 18, 1995 TOTAL 24,200,000