Conformed Copy - L3952 - Santa Fe I Water Supply and Sewerage Rehabilitation Project - Supplemental Letter 4

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 3953-CO Santa Fe I Water Supply and Sewarge Rehabilitation Project Letter No. 4 - Part H.2 of the Project Dear Sirs: This is in connection with each of the Loan Agreements for the above Loans of even date herewith (the Loan Agreements) between International Bank for Reconstruction and Development (the Bank) and Empresa de Acueducto y Alcantarillado de Bogota-E.S.P. (the Borrower), and, more specifically, in connection with the resettlement program under Part H.2 of the Project described in the respective Schedules 2 to each of the Loan Agreements. Said Part of the Project refers to the displacement of a number of persons to be displaced as a result of the carrying out of the Project under each of the subprograms included in such Part of the Project. As you know the said numbers have been determined under table 1.1 of the Resettlement Plan referred to in such Part of the Project on the basis of a very meticulous census of each house in the affected areas. Although any person additional to the census universe may be easily identified and will not normally be entitled to compensation under the corresponding subprogram, there may be legitimate cases of increases to the number of persons in any given household, such as bona fide relatives which move into the household. Similarly, there could be adjustments required to the known universe of persons due to adjustments to the areas required by the contractor(s) in charge of civil work construction or due to natural demographic increases or to new households within the affected families. Although changes in the number of persons to be resettled would normally require prior approval of the Bank, we propose that bona fide variations exclusively due to one or more of the aforesaid causes, not to exceed 20% in the aggregate of the numbers corresponding to the subprogram in question, as reflected in the said Part of the Project, be accepted beforehand without specific approval of the Bank. On the other hand, if additional areas may be required by virtue of changes in Project design, detailed engineering under Part G.1 of the Project or the addition of other technical components and, as a consequence, additional areas are required and consequently the displacement of persons not included in the aforementioned Table 1.1 becomes necessary the strategy for their resettlement, including action to be taken and new compensation to be provided shall be submitted to the Bank for discussion and, eventually approval. We wish to make clear that our policy will be to provide equivalent housing to the persons displaced and, cash compensation would be acceptable only if preferred by the persons affected or if part of a package including housing or in the cases of rental replacement or loss of income. Nevertheless, there may be cases in which certain persons under special circumstances may require a different compensation than that regularly offered to their neighbors. For those cases, the Borrower shall seek ad-hoc approval from the Bank. If you are in conformity with the aforesaid, please indicate so by countersigning below. Very truly yours, Page 2 EMPRESA DE ACUEDUCTO Y  ALACANTARILLADO 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