Conformed Copy - C2247 - National Agricultural Research Project - Amendment

Page 1 June 4, 1996 Mr. Kwame Peprah Minister of Finance and Economic Planning Ministry of Finance and Economic Planning P.O.Box M.40 Accra Ghana Dear Mr. Peprah: Amendment: Development Credit Agreement (National Agricultural Research Project, Credit No. 2247-GH) We refer to the Development Credit Agreement (National Agricultural Research Project), dated June 10, 1991, between the International Development Association (the Association) and the Republic of Ghana (the Borrower) and the amendments to the Development Credit Agreement effective February 22, 1993 and February 15, 1995. Further to the discussions held with the representatives of the Borrower during the mid- term review in September 1995 and to your letter of May 15, 1996 requesting IDA to increase the financing ratios for Civil Works, Operating Costs, and Research Grants Scheme, we are pleased to inform you that the Association hereby agrees that the table in paragraph 1 of Schedule 1 to the Credit Agreement shall be amended and revised as indicated in the attached Withdrawal of the Proceeds of the Credit. You may wish to note that we are only able to raise the financing percentage to 90% (to take account of local taxation) for local expenditures under Category (5) Research Grants Scheme. Please indicate your agreement with the foregoing by countersigning and dating the form of confirmation of this letter and returning one countersigned copy to us. This amendment shall become effective as of the date of receipt by the Association of this letter duly countersigned. Sincerely, Charles Humphreys Acting Director West Central Africa Department Africa Region CONFIRMED: Republic of Ghana By: /s/ Richard Kwame Peprah Authorized Representative Date: June 28, 1996 Attachment Revised Schedule 1 Withdrawal of the Proceeds of the Credit 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 Allocated % of (Expressed in Expenditures Category SDR Equivalent) to be financed (1) Civil Works 100% of foreign Page 2 expenditures and 80% of local expenditures (a) CSIR 1,340,000 (b) MOA 1,040,000 (2) Equipment, vehicles, 100% of foreign furniture and expenditures and materials: 90% of local expenditures (a) CSIR 4,220,000 (b) MOA 820,000 (3) Consultants' 1,780,000 100% services and training (4) Operating costs: 100% of foreign expenditures and 90% of local expenditures (a) CSIR 4,380,000 (b) MOA 870,000 (5) Research Grants Schemes (a) Fellowships 624,000 100% (b) Equipment, vehicles 416,000 100% of foreign and operating costs expenditures and 90% of local expenditures (6) Unallocated 810,000 __________ TOTAL 16,300,000 ==========