Page 1 The World Bank 1818 H Street N.W. (202) 473-1000 I NTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Washington, D.C. 20433 Cable Address: INTBAFRAD INTERNATIONAL DEVELOPMENT ASSOCIATION U.S.A. Cable Address: INDEVAS CONFORMED COPY December 15, 2003 H.E. M. Nurmuratov Minister of Finance Tashkent Republic of Uzbekistan Dear Mr. Minister: Re: Bukhara and Samarkand Water Supply Project Credit No. 3620 UZ – Loan No. 4655 UZ Amendment to the Development Credit Agreement We refer to the Development Credit Agreement and the Loan Agreement (Bukhara and Samarkand Water Supply Project) between the Republic of Uzbekistan (the Borrower) and the International Development Association and the International Bank for Reconstruction and Development respectively (hereinafter collectively referred to as the Bank), both dated April 12, 2002. We also refer to your letter dated November 14, 2003, requesting certain amendments to the Development Credit Agreement. We hereby confirm the Bank’s agreement to the amendment set forth below. 1. In Category (1) (b) of the table set forth in paragraph A.1 of Schedule 1 to the Development Credit Agreement, the words “Goods under Part B.1 of the Project” are revised to read “Goods under Part A.1 of the Project”. 2. In Category (1) (e) of the table set forth in paragraph A.1 of Schedule 1 to the Development Credit Agreement, the words “, including audit costs” are deleted. 3. In Category (2) (e) of the table set forth in paragraph A.1 of Schedule 1 to the Development Credit Agreement, the words “, including audit costs” are deleted. 4. Paragraph 2 (d) of Schedule 1 to the Development Credit Agreement is revised to read as follows: “(d) the term “Incremental Operating Costs of the PCU” means operating expenditures incurred by the PCU on account of management of Project implementation for: (i) communications, utilities, printing and publications, office rent, maintenance and supplies; (ii) office security systems, office and computer equipment, office furniture, and vehicles, all of which shall be procured in accordance with the provisions of Section I of Page 2 - 2 - Schedule 3 to this Agreement; (iii) vehicle operation and maintenance, transportation and field trip expenses; (iv) training of PCU staff for purposes of Project management, remuneration for staff, including qualified social charges but excluding salaries of civil servants; and (v) such other expenditures as may agreed upon by the Association.” 5. In Part C of Schedule 2 to the Development Credit Agreement, the words “, including audit services,” are deleted. Please confirm your agreement with the forgoing amendment by signing, dating and returning to us the enclosed copy of this letter. Upon receipt by the Bank of the copy of this letter countersigned by you, this amendment will become effective as of the date of the countersignature. Sincerely, INTERNATIONAL DEVELOPMENT ASSOCIATION INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT /s/ Dennis de Tray Director Europe and Central Asia Region CONFIRMED: REPUBLIC OF UZBEKISTAN By: /s/ M. Nurmuratov Title: Minister of Finance Date: December 31, 2003 Page 3 - 3 - cc: Mr. U. Rozukulov, Head of Department for External Economic Relations, Cabinet of Ministers Mr. U. Khalmukhamedov, Director General, Uzbek Agency Uzkommunkhizmat Distribution: ED Mr. Veglio (EDS24) Region Messrs./Mmes. Mitra (2) (ECAVP); McCollom (ECACA); Raiser (ECCUZ); Razavi, Busz, Konishi, Thomson, Travers, Kamkwalala, Drozdz, Lutalo, Ishakov (ECSIE); Westin, Bhattacharya (ECSPS); Gary (ECSIE); Hebert, Kaoues, Leta, Zanus Michnei (ECSPS); de Tray, Cholst (ECCU8) Unit Files Bankwide Messrs./Mmes. Le Houerou (FRM); Koilpillai, Ogallo (LOAG1) Page 4 - 4 - Cleared with and cc: Drozdz (ECSIE); Koilpillai (LOA); Kolovou (LEGEC), Mostipan (RPA Office)