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May 24, 1989
Mr. E.A. Chaudhury
Secretary External Resources Division
Ministry of Planning
Government of the People's Republic
  of Bangladesh
Dhaka, Bangladesh
Re:   Development Credit No. 1940-BD (Rural Roads and Markets
      Improvement and Maintenance Project)  -  Amendment of the
      Development Credit Agreement
Dear Mr. Chaudhury:
We refer to the Development Credit Agreement (Rural Roads and Markets 
Improvement and Maintenance Project) dated July 29, 1988 between the People's Republic 
of Bangladesh (the Borrower) and the International Development Association (the 
Association).
The Association hereby proposes to amend the Development Credit Agreement as 
follows:
1.
Paragraph (B) of the preamble of the Development Credit Agreement is amended to 
read as follows:
"the Borrower intends to contract from the Government of the Federal 
Republic of Germany, acting through the Kreditanstalt fuer Wiederaufbau (KfW) 
a grant (the KfW Grant) in an amount equivalent to twenty five million four 
hundred and eighty seven thousand four hundred and seventy six Deutsche Marks 
(DM25,487,476) to assist in financing part of the Project on the terms and 
conditions set forth in an agreement (the KfW Agreement) to be entered into 
between the Borrower and KfW;"
2.
Category (2) set forth in the table of Schedule 1 to the Development Credit 
Agreement is amended to read as follows:
"                                   Amount of
                  Amount of         the Swiss
                  the Credit        Contribution        % of
                  Allocated         Allocated         Expendi-
                  (Expressed        (Expressed in     tures
                  in SDR            Swiss Francs      to be
Category          Equivalent)       Equivalent)       Financed
(2)   Goods:
      (a) Part A   1,300,000                          ) 75% of
          of the                                      ) foreign
          Project                                     ) expendi-
                                                      ) tures,
                                                      ) 75% of
                                                      ) local
                                                      ) expendi-
                                                      ) tures (ex-
                                                      ) factory
                                                      ) cost) and
                                                      ) 53% of
                                                      ) local ex-
                                                      ) penditures
                                                      ) for other
                                                      ) items
                                                      ) financed
                                                      ) locally  "
3.
The first paragraph in Schedule 2 to the Development Credit Agreement is amended 
to read as follows:
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"The objectives of the Project are to promote rural development through 
the reconstruction, upgrading and maintenance of feeder roads and markets in 
the Project Area, to implement cost effective road construction and 
maintenance techniques, to improve resource mobilization and strengthen 
institutions responsible for maintenance, and to rehabilitate roads and 
associated structures west of the Jamuna river damaged by the 1987 or 1988 
floods."
Please confirm your agreement with the foregoing amendment by signing and dating 
the enclosed form of confirmation and by returning it to us,
Sincerely yours,
Shinji Asanuma
Director
Country Department I
Asia Region
CONFIRMED:
PEOPLE'S REPUBLIC OF BANGLADESH
By /s/ 
Authorized Representative
Date