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The World Bank
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT
INTERNATIONAL DEVELOPMENT ASSOCIATION
1818 H Street N.W.
Washington, D.C. 20433
U.S.A.
(202) 477-1234
Cable Address: INTBAFRAD
Cable Address: INDEVAS
CONFORMED COPY
December 10, 2002
H. E. Salam Fayyad
Minister of Finance
Palestinian Authority
Gaza City, Gaza
Re:
Second Municipal Infrastructure Development Project - TF 023961
Amendment to the Trust Fund Credit Agreement
Excellency:
We refer to the Trust Fund Credit Agreement for the Second Municipal
Infrastructure Development Project (TF023961) between the Palestine Liberation
Organization (for the benefit of the Palestinian Authority) (the “Borrower”) and the
International Development Association, acting as administrator of the Trust Fund for Gaza
and West Bank (the “Administrator”), dated September 2, 2000, as amended (the “Credit
Agreement”). We also refer to the letter from H.E. Mr. Mohammed Nashashibi, the
former Minister of Finance of the Palestinian Authority and authorized representative of
the Borrower, dated June 1, 2002, requesting the Administrator to reallocate the proceeds
of the Credit to assist in financing emergency damage repair and services support
activities in the West Bank and Gaza.
We are pleased to inform you that the Administrator has agreed to the above
request. Accordingly, the Credit Agreement is hereby amended as follows:
1.
Section 1.02 (a) shall read as follows: ““Eligible Categories” means categories
(1) (a), (1) (b), (1) (c), (2) (a), 2 (b), (2) (c), (3) (a), (3) (b), (3) (c), (4), (5) (a), (5) (b) and
(5) (c) set forth in the table in Part A.1 of Schedule 1 to this Agreement;”.
RCA 248423.  WUI 64145  FAX (202) 477-6391
H.E. Salam Fayyad
2.
Amount of the
Credit Allocated
(Expressed in
U.S. Dollar
Equivalent)
(3)
% of Eligible
Expenditures
to be Financed
Civil works
(a)
under Part A.1 of
the Project
1,800,000
85%
(b)
under Part A.2 of
the Project
450,000
85%
2,000,000
85%
(c)
(2)
December 10, 2002
The table in Part A.1 of Schedule 1 to the Credit Agreement shall read as follows:
Category
(1)
-2-
under Part Z of
Project
Goods
(a)
under Parts B.1 and
C.1 of the Project
100,000
100% of foreign
expenditures and
85% of local
expenditures
(b)
under Parts B.2 and
C.2 of the Project
400,000
100% of foreign
expenditures and
85% of local
expenditures
(c)
under Part Z of the
Project
1,000,000
100% of foreign
expenditures and
85% of local
expenditures
1,000,000
100% of foreign
expenditures and
85% of local
expenditures
Consultants’ services and
training
(a)
under Parts A.1,
B.1 and C.1 of the
Project
H.E. Salam Fayyad
Category
December 10, 2002
Amount of the
Credit Allocated
(Expressed in
U.S. Dollar
Equivalent)
% of Eligible
Expenditures
to be Financed
(b)
under Parts B.2 and
C.2 of the Project
500,000
100% of foreign
expenditures and
85% of local
expenditures
(c)
under Part Z of the
Project
50,000
100% of foreign
expenditures and
85% of local
expenditures
50,000
100% of foreign
expenditures and
85% of local
expenditures
(4)
Consultants’ services under
Part A.2 of the Project
(5)
Incremental Operating
Costs
(6)
-3-
(a)
under Part C.1 of
the Project
50,000
85%
(b)
under Part C.2 of
the Project
50,000
85%
(c)
under Part Z of the
Project
50,000
85%
Unallocated
TOTAL
0
________
7,500,000
3.
In paragraph A.3 of Schedule 1, sub-paragraphs (b) (i) and (b) (ii), and the words
“and (iii)” appearing after the words “the Administrator” shall be deleted.
H.E. Salam Fayyad
-4-
December 10, 2002
4.
In paragraph B.1 of Schedule 1, the word “and” in the second line shall be deleted
and shall be replaced by a comma, and the words “and Z” shall be inserted between the
words “C.1” and “of”.
5.
In Schedule 2 to the Credit Agreement, a new Part Z shall be added and shall read as
follows:
“Part Z:
Damage Repair and Emergency Service Support Activities
Carrying out a program, consisting of the provision of goods and the execution of
works, with a view to rehabilitating damaged physical and institutional infrastructure, and
mitigating the decline in essential public service provision, including electricity, water,
wastewater, solid waste and social services.”
6.
In paragraph 2 of Schedule 4 to the Credit Agreement, the word “and”, appearing in
the first line, shall be deleted and shall be replaced by a comma, and the words “and Z” shall
be inserted between the words “C.1” and “of”.
7.
All the terms and conditions of the Credit Agreement, not amended hereby, shall
remain in full force and effect.
H.E. Salam Fayyad
-5-
December 10, 2002
Please confirm your agreement with the foregoing by signing the confirmation on
the copy of this Letter Amendment and returning it to our attention.
Sincerely,
INTERNATIONAL DEVELOPMENT ASSOCIATION
As Administrator of the Trust Fund for Gaza and West Bank
/s/ Nigel Roberts
Nigel Roberts
Country Director
West Bank & Gaza
AGREED AND CONFIRMED
PALESTINE LIBERATION ORGANIZATION
By
/s/ Salam Fayyad
Salam Fayyad
Minister of Finance of the Palestinian
Authority
Authorized Representative of the Palestine
Liberation Organization