Conformed Copy - C2490 - Health Project - Amendment 2

Page 1 September 9, 1996 His Excellency Emmanuel Moreira Carneiro Minister of Planning Ministry of Planning Luanda Angola Excellency: Re: ANGOLA: Credit No. 2490 ANG (Health Project) Amendment to Development Credit Agreement We refer to the Development Credit Agreement (the Agreement) dated June 17, 1993 between the Republic of Angola (the Borrower) and the International Development Association (the Association), as amended on September 15, 1994, and to the letters from your Ministry, dated May 30 and June 7, 1996, respectively, requesting a number of amendments to the Agreement. This is to inform you of our agreement to your request and to propose the following amendments to the Agreement. 1. The date in Section 3.04 (a) (ii) is changed from "October 31, 1995" to "April 30, 1997". 2. Section 3.06 is amended to read: "Section 3.06. Except as the Association and the Borrower shall otherwise agree, the Borrower shall, not later than December 31, 1997, furnish to the Association, a document defining the role of demobilized army staff in the Ministry of Health.". 3. Section 3.07 is amended to read: "Section 3.07. The Borrower shall submit to the Association for its review and comments: (a) not later than October 31 of each year, the draft annual recurrent budget for the health sector, for the upcoming calendar year; (b) not later than December 1 of each year commencing December 1, 1996, a draft annual health plan, for the upcoming calendar year, defining the strategy and actions with timetable and costs to improve access to basic health care; and (c) not later than June 30, 1998, the draft investment plan for the Borrower's health sector for the years 1999 through 2003.". 4. The table in paragraph 1 of Schedule 1 to the Agreement is amended to read as in the Attachment to this letter. 5. A new paragraph 4 is introduced as follows: "4. The Association may require withdrawals from the Credit Account to be made on the basis of statements of expenditures for expenditures: (i) for goods, under contracts not exceeding $25,000 equivalent; (ii) for works under contracts not exceeding $200,000 equivalent under such term and conditions as the Association shall specify by notice to the Borrower; (iii) for consulting firms, under contracts not exceeding $100,000 equivalent; (iv) for individual consultants, under contracts not exceeding $50,000 equivalent; and (v) operating costs.". 6. A new Part B.5 is added to Schedule 2 to read: "5. Acquisition of essential drugs and provision of training and technical advisory services to selected health facilities in selected provinces.". 7. In Section II of Schedule 3, a new paragraph (c) is added to read as follows: "Notwithstanding the provisions of paragraph (a) of this Section, the provisions of the Consultant Guidelines requiring prior Association review or approval of budgets, short lists, selection procedures, letters of invitation, proposals, evaluation reports and contracts, shall not apply to (a) contracts for the employment Page 2 of consulting firms estimated to cost less than $100,000 equivalent each or (b) contracts for the employment of individual consultants estimated to cost less than $50,000 equivalent each. However, said exceptions to prior Association review shall not apply to (a) the terms of reference for such contracts, (b) single-source selection of consulting firms, (c) assignments of a critical nature, as reasonably determined by the Association, (d) amendments to contracts for the employment of consulting firms raising the contracts value to $100,000 equivalent or above, or (e) amendments to contracts for the employment of individual consultants raising the contract value to $50,000 equivalent or above.". All other provisions of the Development Credit Agreement, except as amended herein, shall remain in full force an effect. Please confirm your agreement to the amendments by countersigning, dating and returning to us the enclosed copy of this letter. This amendment shall become effective as of the date of countersignature. Sincerely, Barbara Kafka Country Director, Angola Africa Region Attachment CONFIRMED: REPUBLIC OF ANGOLA By: Emmanuel Moreira Carneiro Authorized Representative Date: September 13, 1996