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December 22, 1997
Ing. Placido Aguirre
General Manager
SEDAPAL
Autopista Ramiro Priale s/n
Distrito El Agustino
Lima, Peru
Dear Mr. Aguirre:
Re:
Loan No. 3811-PE (Lima Water Rehabilitation and Management
Project) - Amendment to the Project Agreement
Please refer to the Project Agreement dated February 2, 1995 between the
International Bank for Reconstruction and Development (the Bank) and Servicio de Agua
Potable y Alcantarillado de Lima (Sedapal). In this letter all terms defined in the
Loan Agreement have the same meaning as therein set forth.
Pursuant to the request from Sedapal and further discussions between
representatives of the Borrower, Sedapal and the Bank, the Bank hereby agrees to amend
the Project Agreement as follows:
1. Section 2.10 (a) (ii) is amended to read as follows:
(ii)
not later than June 30, 1998 or when the aggregate of the
proceeds of the Loan Account and the total amount of
commitments made to pay amounts to or on the order of the
Borrower in
respect of expenditures to be financed out of
the proceeds of the Loan
shall have reached the equivalent
of $60,000,000, whichever comes
first, in the event that
the Concession Contract has not previously
been awarded�.
2. Section 4.06 is hereby amended by deleting “December 31, 1997� in its
paragraphs (a) and (b) and substituting therefor “June 30, 1998�.
Please confirm your agreement with the above by signing this letter in the space
provided and returning it to us. The amendments set forth in this letter shall enter
into effect upon receipt by the Bank of a duly countersigned original of this letter.
In view of their interest on this matter, we are sending copy of this amendment letter
to the Minister of Economy and Finance.
Very truly yours,
INTERNATIONAL BANK FOR
  RECONSTRUCTION AND DEVELOPMENT
Ernesto May
Acting Director
Country Management Unit
Bolivia, Paraguay and Perú
Latin America and the Caribbean Region
AGREED:
SEDAPAL
/s/ Plácido Aguirre
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     Authorized Representative
Date: December 31, 1997
cc: Ing. Jorge Camet, Minister of Economy and Finance