Conformed Copy - L3218 - Structural Adjustment Loan - Amendment

Page 1 May 24, 1991 The Minister for Finance and Planning Ministry of Finance and Planning Department of Finance and Planning Post Office Wards Strip Waigani, N.C.D. Papua New Guinea Re: Loan N. 3218-PNG (Structural Adjustment Loan) Amendment of the Loan Agreement Excellency: We refer to the above referenced Loan Agreement (Structural Adjustment Loan) dated August 24, 1990, between the Independent State of Papua New Guinea (the Borrower) and the International Bank for Reconstruction and Development (the Bank). We also refer to your telex dated March 27, 1991, requesting amendments to the Loan Agreement. We are pleased to inform you that, after due consideration, the Bank has agreed to the above request. Accordingly, the Loan Agreement is amended as follows: 1. A new Section 3.04 is added in Article III of the Loan Agreement, as follows: "Section 3.04. (a) In order to assist the Borrowr in carrying out the Program, the Borrower shall employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank. Such consultants shall be selected in accordance with the principles and procedures satisfactory to the Bank on the basis of the "Guidelines for the use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the Bank in August 1981. (b) Without limitation upon any provisions of this Agreement, the Bank, acting as Executing Agency for the United Nations Development Programme, will assist the Borrower in carrying out sub-section (a) of this Section." 2. The existing paragraph 1 of Schedule 1 to the Loan Agreement is renumbered to read "2". 3. A new paragraph 1 is added to Schedule 1 to the Loan Agreement, as follows: "1. The table below sets forth the Categories of items to be financed out of the proceeds of the Loan, the allocation of the amounts o 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) Goods 48,000,000 100% of foreign expenditures (2) Consultants' 2,000,000 100% services __________ Page 2 TOTAL 50,000,000 ========== 4. A new paragraph 3 is added to Schedule 1 to the Loan Agreement as follows: "3. For the purposes of this Schedule, the term "foreign expenditures" means the expenditures in the currency of any country other than that of the Borrower for goods or services supplied from the territory of any country other than that of the Borrower." 5. The first sentence of the existing paragraph 2 of Schedule 1 to the Loan Agreement is amended as follows: "4. Notwithstanding the provisions of paragraphs 1 and 2 above, no withdrawals shall be made under Category (1) in the table set forth in paragraph 1 of this Schedule in respect of:" 6. The existing paragraph 3 of Schedule 1 to the Loan Agreement is renumbered to read "5". 7. The existing paragraph 4 of Schedule 1 to the Loan Agreement is renumbered to read "6", and the words "under Category (1) in the table set forth inparagraph 1 of this Schedule" are added after the words "entered into" in the second line of said paragraph. 8. The existing paragraph 5 of Schedule 1 to the Loan Agreement is renumbered to read "7", and the words "paragraph 4" are amended to read "paragraph 6". 9. The title of Schedule 4 to the Loan Agreement is amended by replacing the words "Paragraph 4(b)" by the words "Paragraph 6(b)". Please confirm your agreement with the foregoing amendments by signing and dating the enclosed letter of confirmation and returning it to us. Yours sincerely, Antony Cole Acting Director Country Department V Asia Region CONFIRMED: THE INDEPENDENT STATE OF PAPUA NEW GUINEA By: /s/ Gerea Aopi, Deputy Secretart, Financial and Fiscal Management Date: 12th June 1991