Conformed Copy - L3603 - Tax Computerization Project - Supplemental Letter 2

Page 1 July 31, 1997 Honorable Roberto Ocampo Secretary Department of Finance Manila, Philippines Dear Secretary de Ocampo: Re: Reallocation of Funds Philippines Tax Computerization Project Loan 3603-PH With reference to the letter of June 25, 1997 from Undersecretary Guevara, I am pleased to inform you that the Bank agrees to the proposal contained therein to reallocate the amounts of the Loan as set forth in paragraph 1 of Schedule 1 of the Loan Agreement dated July 15, 1993 (the Loan Agreement), and as modified pursuant to our communication of December 2, 1996 to you. Therefore, the Bank hereby reallocates the proceeds of the Loan as set forth in the attachment to this letter. Sincerely yours, Vinay Bhargava Country Director, Philippines East Asia & Pacific Region cc. Ms. Milweda Guevara Undersecretary Department of Finance Manila, Philippines Mrs. Liwayway Vinzons-Chato Commissioner Bureau of Internal Revenue, DOF Mr. Guillermo Parayno, Jr. Commissioner Bureau of Customs, DOF Attachment SCHEDULE 1 Withdrawal of the Proceeds of the Loan 1. This table below sets forth the Categories of items to be financed out of the proceeds of the Loan, the allocation of the amounts of the Loan to each Category and the percentage of expenditures for items to be financed in each Category: Amount of the Loan allocated % of (Expressed in Expenditures Category Dollar equivalent) to be Financed (1) Goods under Part 2,300,000 100% of foreign A.3 of the Project expenditures, 100% of local (2) Computer hardware 37,659,000 expenditures and software under (ex-factory cost) Part A.2 of the Project and 70% of local expenditures for other items procured Page 2 locally (3) Goods under Part 2,505,000 100% of foreign B.4 of the Project expenditures, 100% of local (4) Computer hardware 11,885,000 expenditures under Part B.2 of (ex-factory cost) the Project and 70% of local expenditures for (5) Computer software 2,565,000 other items procured under Part B.3 locally of the Project (6) Consultants' services 6,086,000 100% TOTAL 63,000,000 Cleared with and cc: Ms. Nguyen (LEGEA); Abraham (LOALA) cc. Messrs./Mmes. Shirazi, Dhar (EASPR); Bond, Moussa (IENTI); Zonaga, Vales (EACPF) Asia Files; Divisional Files SKhan:hea