Amending Agreement LOAN NUMBER 1404-EQ. OFFI Cl Au. (Education and Vocational Training Project) between REPUBLIC OF BOLIVIA. and

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1 OFFI Cl Au LOAN NUMBER 1404-EQ Amending Agreement (Education and Vocational Training Project) between REPUBLIC OF BOLIVIA and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Dated 9, 1981

2 LOAN NUMBER 1404-B0 AMENDING AGREEMENT AGREEMENT, dated - --, 1981, between REPUBLIC OF BOLIVIA (hereinafter called the Borrower) and INTER- NATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (hereinafter called the Bank). WHEREAS by a Loan Agreement (hereinafter called the Loan Agreement), dated May 11, 1977, between the Borrower and the Bank, the Bank has made a loan to the Borrower in an amount in various currencies equivalent to fifteen million dollars ($15, ) on the terms and conditions set forth in the Loan Agreement; WHEREAS the Borrower and the Bank have agreed to certain changes in the Loan Agreement and, for such purpose, have agreed to enter into this Agreement (hereinafter called the Amending Agreement), upon the terms and conditions hereinafter set forth; NOW THEREFORE, it is hereby agreed as follows: ARTICLE 1 Section The Loan Agreement is amended as follows: (a) Paragraph (e) of Section 1.02 is deleted and the following new paragraph (e) is added to Section 1.02: "(e) "ACFFAA" means Acci6n Civica de las Fuerzas Armadas of the Borrower;"; (b) The following paragraphs (h), (i) and (j) are added to Section 1.02: "(h) "Special Account" means the account to be opened pursuant to Section 2.02 (c) of this Agreement; (i) "Project Account" means the account to be opened pursuant to Section 3.01 (c) of this Agreement; and (j) "peso" means the currency of the Borrower." (c) The following paragraphs (c), (d), (e), (f) and (g) are added to Section 2.02:

3 - 2 - "(c) The Borrower shall, for purposes of Part A of, establish and maintain a Special Account in Banco Central de Bolivia, on terms and conditions satisfactory to the Bank. Disbursements from the Special Account shall be made exclusively *.o finance the cost in pesos of goods and services required to carry out Part A of. (d) The Bank shall, promptly after the effectiveness of the Amending Agreement, withdraw on behalf of the Borrower from the Loan Account and deposit in the Special Account the proceeds of the Loan then allocated to Category (7) of the allocation set forth in paragraph 1 of Schedule 1 to this Agreement. Thereafter, at the request of the Borrower, the Bank shall further so withdraw on behalf of the Borrower from the Loan Account and deposit in the Special Account such amounts as shall be required to reimburse the Borrower for payments made out of the Special Account for expenditures for Part A of eligible for financing under this Agreement, but only to the extent that the amount of any such deposit, together with any amount remaining on deposit in the Special Account as of the date of such request, shall not exceed in the aggregate the equivalent of $1,000,000. Except as the Bank shall otherwise determine, each such deposit after the first deposit shall be withdrawn by the Bank on behalf of the Borrower from the Loan Account under Category (1) (a), (2) (a) (ii), (3) (a), (4) (a), (5) (a) or (6) of the table set forth in paragraph 1 of Schedule 1 to this Agreement, and in the same respective amounts as have been justified by the evidence supporting the request for such deposit furnished pursuant to paragraph (e) of this Section. (e) Prior to or at the time of each request by the Borrower for a deposit by the Bank on behalf of the Borrower in the Special Account, the Borrower shall furnish to the Bank: (i) in respect of each payment made by the Borrower out of the Special Account such documents and other evidence as the Bank shall reasonably request, showing that the payment was made on account of the reasonable cost of goods or services required for Part A of and to be financed out of the proceeds of the Loan; and (ii) evidence that it has

4 - 3 - deposited in Account the difference between (A) the payment made out of Account for which withdrawal application is being presented to the Bank, and (B) the amount of such payment to be financed out of the proceeds of the Loan. (f) If the Bank shall have determined that any payment out of the Special Account (i) was made for any expenditure or in any amount not eligible for financing from the Loan Account, or (ii) was not justified by the evidence furnished pursuant to paragraph (e) of this Section, the Borrower shall, promptly upon notice from the Bank and, unless otherwise determined by the Bank, prior to any further deposit into the Special Account by the Bank, deposit in the Special Account an amount equal to the amount of such payment or the portion thereof not so eligible or justified. (g) Notwithstanding the provision of paragraph (d) of this Section, no further deposit in the Special Account shall be requested by the Borrower when the Bank shall have determined that all further withdrawals from the Loan Account may be made directly by the Borrower from the Loan Account under paragraph (a) of this Section, or when the total amount withdrawn from the Loan Account under Categories (1) (a), (2) (a) (ii), (3) (a), (4) (a), (5) (a) and (6) of the table set forth in paragraph 1 to Schedule 1 to this Agreement shall have reached the equivalent of $9,010,000. Withdrawals from the Loan Account of the remaining amount of the Loan for shall follow such procedures as shall be agreed between the Borrower and the Bank and shall be made only to the extent that the Bank shall be satisfied by the evidence furnished in support of the applications for such withdrawal that all payments by the Borrower out of the Special Account were made on account of the reasonable cost of local goods or services required for Part A of and to be financed out of the proceeds of the Loan in accordance with this Agreement;". (d) The following paragraph (e) is added to Section 3.01: "(e) Without limitation or restriction upon the provisions of paragraph (a) of this Section, the Borrower shall: (i) establish and maintain until the

5 -4- completion of, in Banco Central de Bolivial on terms and conditions satisfactory to the Bank, the Project Account for the purposes of financing the carrying out of Part A of ; (ii) replenish such account as required for the diligent and efficient execution of Part A of ; (iii) keep at all times in such account not less than the equivalent in pesos of $400,000; and (iv) operate such account in accordance with rules and guidelines satisfactory to the Bank." (e) At the end of Section 4.02 (a) the following is added: ", including, without limitation to the foregoing, separate accounts reflecting all the expenditures on account of which withdrawals are requested from the Loan Account, on the basis of certificates of expenditures;". (f) The following new paragraphs (b) and (c) are added to Section 4.02: "(b) The Borrower shall retain, until one year after the Closing Date, all records (orders, invoices, bills, receipts and other documents) evidencing expenditures for on account of which withdrawals were requested from the Loan Account on the basis of certificates of expenditures and shall enable the Bank's accredited representatives to examine such records. (c) The Borrower shall: (i) have the Special Account and the separate accounts referred to in paragraph (a) of this Section, for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Bank; (ii) furnish to the Bank as soon as available, but in any case not later than four months after the end of each such year: (A) certified copies of its financial statements for such year as so audited and (B) the reports of such audits by said auditors, of such scope and in such detail as the Bank shall have reasonably requested; and (iii) furnish to the Bank such other information concerning said accounts and the audit thereof as the Bank shall from time to time reasonably request".

6 -5- (g) The table set forth in paragraph 1 of Schedule 1 is amended to read as follows: Amount of the Loan Allocated % of (Expressed in Expenditures "Category Dollar Equivalent) to be Financed (1) Civil works and professional services: (a) Part A of 3,200,000 50% Project (b) Part B of 600,000 30% (2) Equipment and Furniture (a) Part A of 2,486,000 : (i) imported 100% of foreign expenditures (ii) locally 85% of local procured expenditures (b) Part B of 2,700,000 : (i) imported 100% of foreign expenditures (3) Technical Assistance: (ii) locally 85% of local procured expenditures (a) Part A of 648, % (b) Part B of 250, %

7 -6- Amount of the Loan Allocated % of (Expressed in Expenditures Category Dollar Equivalent) to be Financed (4) Project Administration: (a) Part A of 1,184, % (b) Part B of 450, % (5) Preinvestment Studies: (a) Part A of 100, % (b) Part B of 256, % (6) Curriculum Devel- 1,517, % opment, Teacher Training and Community Education (7) Initial deposit 1,000,000 in Special Account, pursuant to Section 2.02 (c) of this Agreement (8) Unallocated 608,481 TOTAL 15,000,000" (h) Delete the reference to "SNDC" in paragraph B.1 of Schedule 4 and substitute therefor "ACFFAA".

8 -7- ARTICLE II Section The Amending Agreement shall become effective upon receipt by the Bank of: (a) evidence that the Special Account has been established; (b) evidence that Account has been established and that the Borrower has deposited therein the equivalent in pesos of $400,000; and (c) an opinion or opinions satisfactory to the Bank of counsel acceptable to the Bank showing that: (i) the person or persons executing and delivering the Amending Agreement are duly authorized to act on behalf of the Borrower for such purpose; and (ii) the Amending Agreement has been duly authorized or ratified by, and is legally binding upon, the Borrower, in accordance with its terms. IN WITNESS WHEREOF, the parties hereto, acting through their respective respresentatives thereunto duly authorized have caused the Amending Agreement to be signed in their respective names, and dlivered in the District of Columbia, United States of America, as of the day and year above written. REPUBLIC OF BOLIVIA By / I- Authorized Representative INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By Regional Vice President Latin America and the Caribbean

9 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT CERTIFICATE I hereby certify that the foregoing is a true copy of the original in the archives of the International Bank for Reconstruction and Development. In witness whereof I have signed this Certificate and affixed the Seal of the Bank thereunto this day of 198 SC A R FOR SECRETARY