Conformed Copy - L3952 - Santa Fe I Water Supply and Sewerage Rehabilitation Project - Supplemental Letter 3

Page 1 EMPRESA DE ACUEDUCTO Y ALCANTARILLADO DE BOGOTA - E.S.P. December 20, 1995 International Bank for Reconstruction and Development 1818 H- Street N.W. Washington, D.C. 20433 United States of America Re: Loan No. 3952-CO and Loan No. 3953-CO Santa Fe I Water Supply and Sewerage Rehabilitation Project Letter No. 3 - Respective Sections 5.02 of each Loan Agreement Dear Sirs: We refer to each of the Loan Agreements of even date herewith between the International Bank for Reconstruction and Development (the Bank) and the Empresa de Acueducto y Alcantarillado de Bogota -E.S.P. (the Borrower) for the above Loans. With reference to the provisions of the said Loan Agreements and in particular to the obligations under the respective Sections 5.02 thereof, and without any limitation or restriction upon the provisions of the Loan Agreements, we wish to advise you of the following: In effecting annual payments to the Borrowerþs pensioners and transfers to internal or external pension funds as stipulated by the applicable social security legislation in the Republic of Colombia, the Borrower may be in a position in some years to supplement total operating revenues, as defined in the said respective Sections 5.02 (d) (ii), making use of extraordinary sources of revenues earned out of idle cash balances and favorable interest rates in the capital markets. In the event that in any given fiscal year such non-operating revenues are utilized to supplement total operating revenues in effecting the aforesaid payments and transfers, the Borrower will present such evidence in a manner satisfactory to the Bank, and will, with the prior agreement of the Bank, be entitled to offset the corresponding amount of payments and transfers in the calculation of the operating expenses defined under the respective Sections 5.02 (d) (i) for the fiscal year in question, and thus, of the corresponding ratio stipulated in paragraph (a) of said Sections 5.02. Very truly yours, EMPRESA DE ACUEDUCTO Y ALCANTARRILLADO DE BOGOTA - E.S.P. By /s/ Authorized Representative CONFIRMED: INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By /s/ Acting Regional Vice President Latin America and Caribbean Region Page 2