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August 31, 1992
His Excellency
Soriba Kaba
Minister of Planning and Finance
P.O. Box 579
Conakry
Republic of Guinea
     Re: Credit No. 1955 GUI (National Research and Extension
         Project)
Excellency,
     Please refer to the Development Credit Agreement (the
Agreement), dated November 29, 1988, between the Republic of Guinea
(the Borrower) and the International Development Association (the
Association).
     Pursuant to the request of the Minister of Agriculture and
Animal Resources, dated August 3, 1992 (No. 2277/MARA/CAB) we are
pleased to inform you that the Association agrees to amend the
Agreement as follows:
     - Schedule 1, Category 5 (b): the "% of expenditure to be
financed" for that category is changed to 9O%.
     The increase of the expenditure to be financed for Category 5
(b) of Schedule I is accepted in view of the Borrower's commitment
to transform the extension service.  In this regard, the Borrower
agrees to:
     (a)  submit to the Association for its review by December 31,
1992 a plan to transform the extension service into a national
structure that will in the long term cover the entire national
territory;
     (b)  recruit no later than December 31, 1992 a local
financial consultancy firm to strengthen the financial management of
the Project;
     (c)  review the allowances paid to the field staff of MARA
with a view to harmonizing them and making them consistent across
services and implement such harmonization by December 31, 1992;
     (d)  submit to the Association for its review by December 31,
1992 a plan to strengthen the Project's personnel management.  This
plan shall include introduction of a performance based promotion
system and will grant the Project manager a substantial degree of
autonomy in deciding on promotions.
     We draw your attention to the fact that the revision of the
percentage of expenditure to be financed for Category 5 (b) of
Schedule 1 as well as the envisaged transformation of the extension
service may have implications for your obligation to replenish
Revolving Account B referred to in Section 3.01 (b) of the
Agreement.
     Please confirm your agreement with this amendment of the
Agreement by signing, dating and returning the form of confirmation
on the enclosed copy of this letter.  This amendment shall become
effective upon receipt by the Association of the duly signed copy.
Sincerely yours,
Theodore Nkodo
Acting Director
Occidental and Central
Africa Department
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CONFIRMED:
By
Minister if Planning and Finance
Republic of Guinea
Date