Conformed Copy - C1976 - Forest Resource Management Project - Amendment

Page 1 March 24, 1992 His Excellency Dr. Kwesi Botchwey The Provisional National Defense Council Secretary for Finance and Economic Planning Ministry of Finance and Economic Planning P.O. Box M-40 Accra, Republic of Ghana Re: GHANA - Credit No. 1976 GH (Forest Resource Management Project) Amendments to the Development Credit Agreement and the DANIDA Grant Agreement Dear Dr. Botchwey: We refer to the Development Credit Agreement (Forest Resource Management Project), dated February 16, 1989, and the DANIDA Grant Agreement, dated September 26, 1989, between the Republic of Ghana and the International Development Association in its own capacity and as Administrator of Grant Funds Provided by the Danish International Development Agency (the Association). Based on the discussions held between the Ghanian authorities and a recent supervision mission of the Association, we hereby propose the following amendments: Development Credit Agreement 1.In Schedule 1, we propose to change the disbursement percentages for Categories (1), (5, (9) and (13) from "100% of foreign expenditures and 65% of local expenditures" to "100% of foreign expenditures and 85% of local expenditures". 2.We propose furthermore to change the disbursement percentages for Categories (4), (8), (12) and (16) from "80% in FYs 1989 and 1990, 75% in FY 1991, 65% in FY 1992, 40% in FY 1993 and 25% in FY 1994" to "70% until December 31, 1994, and 50% thereafter". 3.In Schedule 6, we propose to consolidate the four Special Accounts into one Special Account with an authorized allocation of $1,100,000 equivalent. Thus, paragraphs 1 (a) and (c) would read as follows: "(a) the term "Eligible Categories" means Categories (1) through (16) as such Categories are set forth in the table in paragraph 1 of Schedule 1 to this Agreement;" "(c) the term "Authorized Allocation" means an amount equivalent to $1,100,000 to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 3 (a) of this Schedule." 4.The change from several Special Accounts to only one Special Account requires several editorial changes in the Development Credit Agreement and the relevant sections, such as Section 1.02, Section 2.02 (b) as well as the rest of Schedule 6 shall be deemed to be amended accordingly. DANIDA Grant Agreement 5.In Schedule 1, we propose to change the disbursement percentages for Categories (1), (5) and (9) from "100% of foreign expenditures and 65% of local expenditures" to "100% of foreign expenditures and 85% of local expenditures". 6.We propose furthermore to change the disbursement percentages for Categories (4), (8) and (12) from "80% in FYs 1989 and 1990, 75% in Page 2 FY 1991, 65% in FY 1992, 40% in FY 1993 and 25% in FY 1994" to "70% until December 31, 1994, and 50% thereafter". 7.In Schedule 2, we propose to consolidate the three Special Accounts into one Special Account with an authorized allocation of $450,000 equivalent. Thus, paragraphs 1 (a) and (c) would read as follows: "(a) the term "Eligible Categories" means Categories (1) through (12) as such Categories are set forth in the table in paragraph 1 of Schedule 1 to this Agreement;" "(c) the term "Authorized Allocation" means an amount equivalent to $450,000 to be withdrawn from the Credit Account and deposited into the Special Account pursuant to paragraph 3 (a) of this Schedule." 8.The change from several Special Accounts to only one Special Account requires several editorial changes in the DANIDA Grant Agreement and the relevant sections, such as Section 2.02 (b) as well as the rest of Schedule 2 shall be deemed to be amended accordingly. Please confirm your agreement with the foregoing amendments to the Development Credit and DANIDA Grant Agreements by signing the form of confirmation below on the enclosed copy and returning it to us. These amendments shall become effective upon receipt of the signed copy by the Association. Sincerely yours, Edwin R. Lim Director Western Africa Department CONFIRMED: REPUBLIC OF GHANA By /s/ Kwesi Botchwey