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February 29, 2000
Mr. Roberts Zile
Minister of Special Status for Cooperation
  With International Finance Institutions
Ministry of Finance
1 Smilsu Street
LV1932 Riga
Latvia
Re:
Swedish Grant Agreement (Social Insurance Reform Project)
Grant No. TF020907 - Amendments to Grant Agreement
Dear Mr. Zile:
In reference to the Swedish Grant Agreement for the above Grant, concluded 
between us on  May 14, 1996, as amended pursuant to Letter dated March 26, 1998, 
signed by Chris Lovelace, Acting Director, on behalf of the Bank, and countersigned by 
you on April 6, 1998, I am pleased to inform you that Sida has agreed under an 
amendment letter (copy attached) to increase the grant amount provided by it for 
purposes of the Project. Therefore, I am proposing to amend the above Swedish Grant 
Agreement as follows:
1.
The amount of the grant of seventeen million two hundred three thousand two 
hundred Swedish Kroners (SEK 17,203,200) is changed to read: twenty-seven million 
seven hundred fifty-three thousand, five hundred thirty Swedish Kroners (SFK 
27,753,530) 
2.
The closing date referred to in Section 2.03 is amended to read "June 30, 2002".
3.
The table in Schedule 1 is amended to read as shown in the attachment to this 
letter.
Please indicate your agreement to the above amendment by signing, dating and 
returning to us the attached copy of this letter. Upon receipt by the Bank of the copy 
of this Letter Agreement countersigned by you, this Letter Agreement will become 
effective as of the date of the countersignature.
Very truly yours,
INTERNATIONAL BANK FOR RECONSTRUCTION 
   AND DEVELOPMENT
By /s/ Basil G. Kavalsky
Country Director
Estonia, Latvia, Lithuania and Poland Country Unit
Europe and Central Asia Region
AGREED:
LATVIA
By /s/ Roberts Zile
Date:
March 6, 2000
Attachment
SCHEDULE 1
Withdrawal of the Grant
1.
The table below sets forth the Categories of items to be financed out of the 
Grant, the allocation of the amount of the Grant to each Category and the percentage 
of expenditures for items so to be financed in each Category:
Amount of the    % of
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Grant Allocated
Expenditures
Category
    (Expressed in SEKs)
to be Financed
(1) 
Equipment and materials
   100,000
100% of foreign
expenditures, 
100% of local
expenditures (ex- 
factory cost) and
80% of local
expenditures for
other items 
procured locally.
(2)
Consultants’ services 
and training:
(a) foreign consultants
 18,506,000
100% of foreign
      and training abroad
expenditures
(b) local consultants
  9,147,530
100% of local
      and training 
expenditures
(3)
Operating costs
-0-
(translation services,
PCU staff salaries)
TOTAL
 27,753,530