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August 23, 1996
Dr. the Honourable Navinchandra Ramgoolam
Prime Minister and Minister of Finance
Ministry of Finance
Port Louis
Mauritius
Dear Sir:
     Re:  Loan No. 3578-MAS (Education Sector Development Project)
          Amendment to the Loan Agreement
     We refer to the Loan Agreement for the above-mentioned Project,
dated April 16, 1993, between Republic of Mauritius (the Borrower)
and International Bank for Reconstruction and Development (the Bank).
We also refer to the Minister of Finance's letter, dated August 1,
1996, requesting an amendment to the Project to provide for the
construction of two additional state secondary schools and about 45
pre-primary units.
     This letter is to inform you of our agreement and to propose the
following amendments to the Agreement:
1.   The table in paragraph 1 of Schedule 1 to the Agreement is amended
to read as in the Attachment to this letter.
2.   Schedule 2 to this Agreement is amended as follows:
     (a)  by the addition to Part A.1 of a new Part A.1 (c) to read:
          "(c) construction of about 45 pre-primary units at existing
          primary schools to meet the urgent demand for pre-primary
          education.".
     (b)  by deleting the word "five" and the figure "5000" in Part A.2
(b) and inserting therefor the word "about seven" and the figure "about
7000".
3.   Section I, Part C of Schedule 4 to the Agreement is amended by the
addition of a new paragraph 4 to read:
     "4. Works under Par A.1 (c) of the Project, estimated to cost the
     equivalent of $500,000 or less per contract, up to an aggregate
     amount equivalent to $1,800,000, may be procured on the basis of
     competitive bidding advertised locally, in accordance with pro-
     cedures satisfactory to the Bank.".
     All provisions of the Agreement, except as amended herein, shall
remain in full force and effect.
     Please confirm your agreement to the amendments by countersigning,
dating and returning to us the enclosed copy of this letter. This
Amendment shall become effective as of the date of this letter.
Sincerely,
Simon Gray
Acting Country Director
Mauritius
Africa Region
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CONFIRMED:
REPUBLIC OF MAURITIUS
By:  Hon. Paul Raymond Berenger
     Authorized Representative
Date:  September 13, 1996
Attachment
                                ATTACHMENT
     The table in paragraph 1 of Schedule 1 to the Agreement is amended
     to read as follows:
                             "Amount of the
                             Loan Allocated            % of
                             (Expressed in          Expenditures
     Category              Dollars Equivalent)     to be financed
(1)  Civil works               7,200,000           25% of foreign
                                                   expenditures
(2)  Equipment and                                 70% of foreign
     furniture                                     expenditures
     (a)  For Part A.4         5,100,000
          of the Project
     (b)  For the other        6,400,000
          Parts of the
          Project
(3)  Books, printed               900,000          70% of foreign
     items and                                     expenditures
     software
(4)  Consultants'                 300,000          40% of local
     services                                      expenditures
                                                   for services of
                                                   consultants
                                                   domiciled
                                                   within the
                                                   territory of the
                                                   Borrower and
                                                   100% of foreign
                                                   expenditures for
                                                   services of
                                                   other consultants
(5)  Training and                 100,000          100% of foreign
     studies                                       expenditures and
                                                   40% of local
                                                   expenditures
(6)  Unallocated                        0
                               __________
     TOTAL                     20,000,000"
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