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July 12, 2001
H.E. Fuad Siniora
Minister of Finance
Ministry of Finance
Beirut
Lebanese Republic
Loan No. 4298-LE
(Vocational and Technical Education Project)
Amendment to the Loan Agreement
Excellency:
We refer to the Loan Agreement between the Lebanese Republic (the Borrower) and 
the International Bank for Reconstruction and Development (the Bank) for the 
above-mentioned Project, dated April 27, 1998 (the Loan Agreement), and to the 
Borrower’s request, dated June 27, 2001, to cancel an amount equivalent to $34,000,000 
out of the Loan. We also refer to the understandings reached between representatives 
of the Borrower and the Bank to modify the Loan Agreement as a result of the delays in 
Project implementation and the aforementioned cancellation.
Accordingly, the Loan Agreement is hereby amended as follows:
1.
All references to the Borrower’s Ministry of Vocational and Technical Education  
(MVTE) shall be deemed to refer to the Borrower’s Ministry of Education and Higher 
Education (MEHE) and any successor thereto.
2.
The table in paragraph 1 of Schedule 1 to the Loan Agreement shall read as 
follows: 
Amount of the 
Loan Allocated
   % of
(Expressed in
Expenditures
Category
Dollar Equivalent)
to be Financed
(1)
Civil works
4,800,000
80%
(2)
Goods
14,000,000
100% of foreign
expenditures,
100% of local
expenditures
(ex-factory cost),
and 85% of local
expenditures for other
items procured locally
(3)
Printing of textbooks
0
100% of local
expenditures(ex-
factory cost)
(4)
Consultants’ services
   450,000
100%
under Parts C.1 (a)(ii)
and C.1 (b) of the
Project
(5)
Consultants’ services
 7,650,000
100%
under other Parts of
the Project and training
(6)
Project management
   100,000
90%
(7)
Unallocated
 2,000,000
(8)
Canceled amount
34,000,000
As of June 27, 2001
TOTAL
29,000,000
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3.
In Schedule 2 to the Loan Agreement, Parts A.1 (a) and A.1 (b) of the Project 
shall read as follows:
"(a)
The establishment and initial operation of a planning and 
monitoring unit, the development of a computerized labor market information 
system, and the conducting of market and tracer surveys to address the needs 
of the VTE System’s planners and administrators. 
(b)
The preparation of a long-term strategy for the VTE System in line 
with the Borrower’s long-term economic development objectives."
4.
In Part A.2 of Schedule 2 to the Loan Agreement, the words "including workshops 
and study tours" in the first line, and the words "and media access" in the second 
line shall be deleted.
5.
In Part B.1 (a) of Schedule 2 to the Loan Agreement, the numeral "(i)" shall be 
deleted, a full stop shall be inserted after the word "retraining" and the rest of the 
paragraph shall be deleted.
6.
In Part B.1 (b) of Schedule 2 to the Loan Agreement, sub-paragraph (i) shall be 
deleted, the numerals "(ii) and (iii)" shall read "(i) and (ii)," respectively, and 
the words "production and delivery" shall be deleted.
7.
In Schedule 2 to the Loan Agreement, Part C of the Project shall read as 
follows:
"1.
1."(a) the preparation of a comprehensive physical survey of all existing 
schools under the VTE system and, on the basis of said survey: (i) the design and 
execution of school rehabilitation works; and (ii) the design and execution of school 
expansion works, together with the furnishing and equipping of such schools; and (b) 
the supervision of the rehabilitation and expansion works referred to under Part 1 (a) 
of the Project.
2.  Provision of consultants’ services, furniture and equipment, and the carrying out 
of       works, required to implement Part C of the Project."
8.
Schedule 3 to the Loan Agreement shall read as set out in the Annex to this 
Amendment Letter.
9.
The date of "July 31, 2001" appearing in paragraph 2 (c) (i) of Schedule 5 to 
the Loan Agreement shall read "July 31, 2002."
10.
The date of "January 31, 2001" appearing in paragraph 3 (b) (ii) of Schedule 5 
to the Loan Agreement shall read "January 31, 2002."
11.
The date of "April 30, 2001" appearing in paragraph 3 (c) (ii) of Schedule 5 to 
the Loan Agreement shall read "April 30, 2002."
12.
In paragraph 1 (c) of Schedule 6 to the Loan Agreement, the numeral "$2,000,000" 
shall read "$1,000,000," the numeral "$1,800,000" shall read "$900,000," the numeral 
"$1,000,000" shall read "$450,000," the numeral "$900,000" shall read "$500,000," the 
numeral "$5,000,000" shall read "$2,500,000" and the numeral "$3,000,000" shall read 
"$1,500,000."
13.
All sections of the Loan Agreement which have not been amended hereby shall 
remain unchanged and in full force and effect.
Please confirm your official agreement to the foregoing by duly signing and 
dating the corresponding form of confirmation below, and returning this Amendment 
Letter to us at your earliest convenience. A signed duplicate original of this 
Amendment Letter is enclosed herewith for the Lebanese Republic’s official records.
Very truly yours,
INTERNATIONAL BANK FOR
   RECONSTRUCTION AND DEVELOPMENT
By /s/ Joseph Saba
Director
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Middle East Department
Middle East and North Africa Region
CONFIRMED AND AGREED:
LEBANESE REPUBLIC
By /s/ Fuad Siniora
Authorized Representative
Date: August 1, 2001