Page 1 February 20, 1991 His Excellency Marcel Niat Njifendi Minister of Plan and Regional Development Ministry of Plan and Regional Development Yaounde Republic of Cameroon Re: Loan No. 2999 CM (Second Urban Project) Amendments to Schedule 1 to the Loan Agreement Excellency: We refer to the above-mentioned Loan Agreement between Republic of Cameroon (the Borrower) and International Bank for Reconstruction and Development (the Bank) dated January 25, 1989 and your letter No. 0006/MINPAT/CET dated January 5, 1991 requesting a reallocation of $1,000,000 equivalent of the Loan proceeds from Categories (1)(a) to (4)(b) and an increase in the disbursement percentages for two Categories of expenditures financed under the Loan, namely, Categories (3) and (4)(b) of the table set forth in paragraph 1 of Schedule 1 to the Loan Agreement. We are pleased to inform you that the Bank agrees to your request and that, effective as of the date of this letter, Categories (1)(a), (3) and (4)(b) of the table set forth in paragraph 1 of Schedule 1 to the Loan Agreement are amended to read as follows: Amount of the Loan Allocated % of (Expressed in Expenditures "Category Dollar Equivalent) to be Financed (1) Works (a) Douala infrastructure44,600,000 85% (3) Goods and services 3,700,000 100%, up to 70% financed under Part A.4 of the estimated of the Project total cost of each Project sub-project (4) Land development (b) under Part B.1 2,900,000 85%" (e)(ii) of the Project The other Categories remain as stated in the letter from the Bank dated December 22, 1989 confirmed by the Borrower on March 22, 1990. The above modification of Category (3) also requires the following changes in the Loan Agreement: The definition of "Subsidiary Financing" in Section 1.01 (p) is to read: "(p) 'Subsidiary Financing' means a loan made or proposed to be made to a local collectivity by CFC, out of the proceeds of the Loan, for an income generating project (a sub-project) in accordance with Section 2.02 (a) (ii) of this Agreement;" A new definition 'sub-project' is added as Section 1.01 (q) to read: Page 2 "(q) 'sub-project' means an income-generating project to be financed in part by a Subsidiary Financing under Part A.4 of the Project; and" The existing definition "CFA Franc" or "CFAF" set forth in Section 1.01(q) is now set forth in Section 1.01 (r). Please indicate your agreement to the foregoing amendments by signing and dating the form of confirmation on the enclosed copy of this letter and returning it to us. Very truly yours, By /s/ Michael Gillette Director Occidental and Central Africa Department CONFIRMED: REPUBLIC OF CAMEROON By /s/ Authorized Representative Date: June 25, 1991