Conformed Copy - C2801 - Orissa Water Resources Consolidation Project - Amendment 1

Page 1 September 11, 1996 His Excellency Tomaz Augusto Salomao Minister of Planning and Finance Ministry of Planning and Finance Maputo Mozambique Re: Credit No. 2081-MOZ (Industrial Enterprise Restructuring Project) Amendment to Development Credit Agreement Dear Sir: We refer to the Development Credit Agreement, dated February 7, 1990, and the second amendment to the Agreement, dated June 24, 1994, (collectively referred to as the Agreement) between Republic of Mozambique (the Borrower) and International Development Association (the Association). Further to your letter No. 839/GM/MPF/96, dated July 29, 1996, we are pleased to inform you that the Association proposes the following amendments to the Agreement: 1. The following new sub-paragraph is added in Section 1.02 of the Agreement:"1.02 (w) "INE" means the National Statistics Institute, the autonomous office established to produce and disseminate statistics in the territory of the Borrower. "2. The item in Category 4 of the table in Schedule 1 to the Agreement is amended to read: "Consultants' services, training, equipment, and office supplies for Part B.8 of the Project." 3. Paragraph 8 of Part B of Schedule 2 to the Agreement is amended to read: "Strengthening of the Borrower's capabilities to collect and process statistical information, including, but not limited to, national accounts data, the consumer price index, trade data, a business registry, production data and employment figures, through support to INE." 4. Paragraph 1 of Schedule 6 to the Agreement is amended to read: "MOF shall be responsible, through UTRE, for coordination, management and supervision of Parts B.1, B.2, B.3, B.4, B.5, and B.6 of the Project and the INE shall be responsible for the coordination and management of Part B.8 of the Project." 5. Paragraph 3 (A) (a) of Schedule 6 to the Agreement is amended to read: "UTRE, established as an autonomous unit within the MOF, shall be responsible for planning, managing, and supervising implementation of Parts B.1, B.2, B.3, B.4, B.5, and B.6 of the Project, particularly for assisting the Borrower to develop and implement a privatization and parastatal reform program." 6. The following new paragraph 7 is added in Schedule 6 to the Agreement: "7. National Statistics Institute (INE) (a) INE, established as an autonomous unit, shall be responsible for administering and overseeing implementation of Part B.8 of the Project. Page 2 (b) INE shall:(i) maintain separate, and up to date, accounts related to Part B.8 of the Project, which will be independently audited; and(ii) prepare quarterly reports for the Project and furnish said reports to the Association;" Please indicate your agreement with the foregoing by countersigning and dating the form of confirmation on the two original copies of this letter provided to you and returning one original as countersigned to us. Sincerely, Phyllis Pomerantz Country Director, Mozambique Africa Region REPUBLIC OF MOZAMBIQUE By: H.E. Tomas Agosto Salomao Authorized Representative Date: September 16, 1996