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LAO PEOPLE'S DEMOCRATIC REPUBLIC
June 7, 1996
International Development Association
1818 H Street, N.W.
Washington, D.C. 20433
United States of America
              Re: Credit No. 2832-LA
                 Land Titling Project)
                 Representations on Project Counterpart Funding
Dear Sirs:
       Reference is made to Section 3.01 of the Development Credit
Agreement to be entered into today between the International Development
Association ("Association") and the Lao People's Democratic Republic
("Borrower"), in respect of the Land Titling Project ("Project").
       Without any restriction or limitation upon any of the provi-
sions of the Development Credit Agreement, the Borrower hereby under-
takes and warrants to the Association that it will make available,
promptly as required, the following annual counterpart budgetary
allocations, in addition to the recurrent costs not financed by the
Credit and otherwise to be borne by the Borrower in respect of the
Project: the equivalent of forty thousand dollars ($40,000) in Fiscal
Year 1996; the equivalent of two hundred thousand dollars ($200,000)
in Fiscal Year 1997; the equivalent of two hundred twenty-eight
thousand dollars ($228,000) in Fiscal Year 1998; the equivalent of
two hundred thirty thousand dollars ($230,000) in Fiscal Year 1999;
the equivalent of two hundred fifty thousand ($250,000) in Fiscal Year
2000; the equivalent of two hundred fifty thousand dollars ($250,000)
in Fiscal Year 2001; and the equivalent of two hundred fifty thousand
($250,000) in Fiscal Year 2002.
       It is our mutual understanding that, in making the Credit and
entering into the Development Credit Agreement, the Association may
rely on the representations contained herein.
Very truly yours,
By ______________________
  Authorized Representative