Conformed Copy - C2220 - Population, Health and Nutrition Sector Credit - Amendment

Page 1 October 28, 1991 The Honorable Louis J. Chimango Minister of Finance Ministry of Finance Lilongwe 3 Malawi Re: Credit No. 2220-MAI (Population, Health and Nutrition Sector Credit) Amendment Dear Honorable Chimango: We refer to the Development Credit Agreement dated May 31, 1991 between the Republic of Malawi (the Borrower) and the International Development Association (the Association) for the above-referenced Project. Representatives of the Borrower's Ministry of community Services have bought to the attention of the Association's representatives that in order to facilitate the implementation of the women-in-development component under Par A of the Project, it would be appropriate to provide for the establishment of a second Special Account exclusively for this component. We, therefore, propose that the Development Credit Agreement be amended as follows: 1. Section 1.02 (g) is amended to read: "Special Account" means any of the Accounts referred to in Section 2.02 (b) and (c) of this Agreement. 2. Section 2.02 (b) is amended to read: The Borrower shall, for the purposes of Parts A.1, A.2, A.3 A.5, B, C and D of the Project open and maintain a special deposit account (hereinafter referred to as Special Account "A") in a commercial bank on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure or attachment. Deposits into, and payments out of, the Special Account shall be made in accordance with the provisions of Schedule 5 to this Agreement. 3. A new Section 2.02 (c) is added to read: "The Borrower shall for the purposes of Part A.4 of the Project open and maintain in dollars a special deposit account (hereinafter referred to as "Special Account B") in a commercial bank on terms and conditions satisfactory to the Association, including appropriate protection against set-off, seizure or attachment. Deposits into and payments out of the Special Account shall be made in accordance with the provisions of Schedule 5 to this Agreement. 4. Section 2.02 (c) is renumbered as Section 2.02 (d). 5. Category 5 of the table in paragraph 1 of Schedule 1 to the Development Credit Agreement is amended to read: Amount of the Credit Allocated % of (Expressed in SDR Expenditure Category (Equivalent) to be Financed (5) Salaries (a) for Project Page 2 unit staff 712,000 80% (b) for staff under 1,440,000 100% up to Parts A.1, A.3 and December 31, B.1 (c) of the Project 1992, 65% up to December 31, 1994 and 30% thereafter (c) for staff under 2,000 100% up to Parts A.4 of the December 31, Project 1992, 65% up to December 31, 1994 and 30% thereafter 6. Paragraphs 1 (a) and 1 (c) of Schedule 5 to the Development Credit Agreement are amended to read: (a) the term "eligible Categories" means: (i) in the case of Special Account "A", Categories (1) (b), (1) (c), (2) (b), (2) (c), (3), (4) (b), (5) (a), (5) (b), (6), (8) and (9) of the table in paragraph 1 of Schedule 1 to this Agreement; and (ii) in the case of Special Account "B", Categories (1) (a), (2) (a), (4) (a), (5) (c) and (7) of the table in paragraph 1 of Schedule 1 to this Agreement; and (c) the term "Authorized Allocation" means: (i) an amount equivalent to $2,350,000 to be withdrawn from the Credit Account and deposited into Special Account "A" pursuant to paragraph 3 (a) of this Schedule; and (ii) an amount equivalent to $150,000 to be withdrawn and deposited into Special Account "B" pursuant to paragraph 3 (a) of this Schedule. Please confirm your agreement to the foregoing proposed amendments by signing, dating and returning to us the enclosed copy for this letter, at which time the amendment shall constitute a binding agreement between the Borrower and the Association. Very sincerely yours, INTERNATIONAL DEVELOPMENT ASSOCIATION Stephen Denning Director Southern Africa Department Africa Region CONFIRMED: THE REPUBLIC OF MALAWI By: Authorized Representative Date: November 11, 1991