Page 1 The World Bank 1818 H Street N.W. (202) 477-1234 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 January 20, 2004 Mr. Bolot Abildaev Minister of Finance Ministry of Finance Bishkek Kyrgyz Republic Re: Kyrgyz Republic: Cr. 3062-KG (Agricultural Support Services Project) -- Amendments to the Development Credit Agreement Excellency: I refer to the Development Credit Agreement (Credit Number 3062-KG) (Agricultural Support Services Project), dated June 22, 1998 (the Development Credit Agreement), between the Kyrgyz Republic (the Borrower) and the International Development Association (the Association). I also refer to the letter from Mr. Toromyrzaev, First Deputy of the Minister of Finance, of July 11, 2003, requesting the Association to increase retroactively the percentage of expenditures to be financed for operating costs, and to the agreements reached during the Associations’ mission to the Kyrgyz Republic from November 2 to 21, 2003, on the reallocation of the proceeds of the Credit and proposed changes of the aggregate amounts for procurement under the national shopping and small works. I am pleased to inform you that the Association hereby agrees to amend the Development Credit Agreement as follows: 1. The proceeds of the Credit as set forth in the table in paragraph 1 of Schedule 1 to the Development Credit Agreement are reallocated as follows: SDR 452,944.32 from Category (2) (“Goods”); SDR 905,000 from Category (4) (“Operating Costs”); SDR 492,055.68 from Category (6) (“Unallocated”) to Category (1) (“Works”); and SDR 410,000 from Category (6) (“Unallocated”) to Category (3) (“Consultants’ Services and Training”). 2. The percentage of expenditures to be financed for Operating Costs in Category (4) set forth in the table in paragraph 1 of Schedule 1 to the Development Credit Agreement is revised to read as follows: “100% until June 30, 1999; 85% until June 30, 2000; and 80% thereafter.” The revised Paragraph 1 of Schedule 1 to the Development Credit Agreement reflecting above mentioned reallocation and amendment is attached as Annex to this amendment letter. 3. The aggregate amount of “$124,000” in Paragraph 3, Part C, Section I, of Schedule 3 to the Development Credit Agreement is replaced with “$300,000”. 4. The aggregate amount of “$300,000” in Paragraph 4, Part C, Section I of Schedule 3 to the Development Credit Agreement is replaced with “$1,200,000”. Page 2 - 2 - All the terms and conditions of the Development Credit Agreement, as amended hereby, shall remain in full force and effect. Please confirm your agreement to the foregoing amendment by signing, dating and returning to us the attached copy of this letter. This amendment will become effective as of the date of countersignature upon receipt by the Association of the countersigned copy of this letter. Sincerely, /s/ Chris Lovelace Country Manager Kyrgyz Republic Country Office Europe and Central Asia Region AGREED KYRGYZ REPUBLIC By: /s/ Bolot Abildaev Authorized Representative Date: March 25, 2004 Attachment Page 3 - 3 - Annex SCHEDULE 1 Withdrawal of the Proceeds of the Credit 1. The table below sets forth the Categories of items to be financed out of the proceeds of the Credit, the allocation of the amounts of the Credit to each Category and the percentage of expenditures for items so to be financed in each Category: Amount of the Credit Allocated % of (Expressed in Expenditures Category SDR Equivalent) to be Financed (1) Works 2,300,000 100% of foreign expenditures, 90% of local expenditures (2) Goods 4,450,000 100% of foreign expenditures, 100% of local expenditures (ex-factory cost) and 80% of other items procured locally (3) Consultants’ Services 1,750,000 100% and Training (4) Operating Costs 875,000 100% until June 30, 1999; 85% until June 30, 2000; and 80% thereafter (5) Refunding of 197,055.68 Amount due pursuant Project Preparation to Section 2.02 (c) of Advance this Agreement (6) Unallocated 127,944.32 SUBTOTAL 9,700,000.00 Canceled as of December 3, 2003 1,400,000.00 ORIGINAL CREDIT AMOUNT 11,100,000.00 TOTAL 9,700,000.00 Page 4 - 4 -