Conformed Copy - C3181 - Road Rehabilitation Project - Supplemental Letter 1

Page 1 KINGDOM OF CAMBODIA April 19, 1999 International Development Association 1818 H Street, N.W. Washington D.C. 20433 United States of America Re: Credit No. 3181-KH (Road Rehabilitation Project) Representations on Project Counterpart Funding Dear Sirs: We are pleased to refer to the Development Credit Agreement of even date herewith between Kingdom of Cambodia and International Development Association for the above-mentioned Project. Without any restriction or limitation upon Section 3.01 of the Development Credit Agreement, or any of the other provisions of the Development Credit Agreement, the Borrower hereby undertakes and warrants to the Association that, in respect of each of the fiscal years included in the implementation period of the Project, it shall make available, from its own national budgetary resources, counterpart funds as follows, or in such other amounts as may be agreed from time to time with the Association: (a) Fiscal Year 1999: US$400,000 equivalent; (b) Fiscal Year 2000: US$600,000 equivalent; (c) Fiscal Year 2001: US$690,000 equivalent; (d) Fiscal Year 2002: US$500,000 equivalent; (e) Fiscal Year 2003: US$100,000 equivalent. The Borrower further undertakes and warrants to the Association that, in the case of delays or disruptions in the implementation of road rehabilitation works, due to the suspension of such road rehabilitation works or imposition of other safeguard measures, which are attributable to the discovery of artifacts or ordered as a result thereof, it shall be the responsibility of the Borrower, pursuant to paragraph 13 (a) of Schedule 4 to the Development Credit Agreement, to make adequate provision to cover the cost of such delays or disruptions, or penalties imposed on account thereof, other than those which are solely attributable to the contractor