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April 16, 1997
H.E. Dr. Abdul Kader Ba-Ja'amal 
Deputy Prime Minister and 
  Minister of Planning and 
  Development 
Sana'a, Republic of Yemen
Re:
YEMEN: Credit No. 2570
Education Sector Investment Project
Amendment to the Development Credit Agreement 
Your Excellency,
We refer to the Development Credit Agreement between the Republic of Yemen (the 
Borrower) and the International Development Association (the Association) dated March 
23, 1994 (the Development Credit Agreement).  We also refer to your request contained 
in your letters dated December 3, 1996, and March 9, 1997, to amend the table set 
forth in paragraph 1 of Schedule 1 (Withdrawal of the Proceeds of the Credit) to 
increase the percentage of expenditures to be financed under Categories (1) and (3) 
and to introduce a new Category to permit the financing of the operating costs of the 
Coordination Unit of the Project.
We are pleased to inform you that the Association, after due consideration, has 
acceded to the above request.  Accordingly, the Development Credit Agreement is hereby 
amended to read as follows:
1.
The table set forth in paragraph 1 of Schedule 1 is modified to read as follows:
Amount of the
                         Credit Allocated
   % of
                          (Expressed in
      Expenditures
Category
                   SDR Equivalent)     to be Financed
(1)
Civil Works
               5,900,000
      95%
under Part A (1)
of the Project
(2)
Equipment, Fur-
         9,600,000
      100% of foreign
niture, Printing,
                   expenditures and
Supplies, Educa-
      90% of local
tion Materials and
                   expenditures
Vehicles under
Parts A and B of
the Project
(3)
Consultants’
               6,000,000
      100%
Services and
Fellowships
(4)
Operating Costs
          700,000
      100%
(5)
Unallocated
               1,700,000
        _________
TOTAL
              23,900,000
       ==========“
2.
Paragraph 2 of Schedule 1 is modified as follows:
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(i)
the word “and” at the end of subparagraph (a) is deleted;
(ii)
the period at the end of subparagraph (b) is replaced by “; 
and”; and
(iii)
a new subparagraph (c) to read as follows is added:
“(c) 
the term “Operating Costs” means expenditures for office 
equipment, supplies, telephone, utility charges and staff 
salaries of 
personnel in the Coordination Unit.”
3.
Paragraph 1 (a) of Schedule 5 is amended to read "(a) the term "eligible 
Categories"  means Categories (1), (2), (3) and (4) set forth in the table in 
paragraph 1 of Schedule 1 to this Agreement; " \0c
Please confirm your agreement 
with the foregoing amendments, by signing and dating the confirmation on the enclosed 
copy of this Letter and returning it to us.
This amendment shall enter into effect on the thirtieth (30th) day of the month 
in which it has been countersigned and returned to us.
Very truly yours,
INTERNATIONAL DEVELOPMENT ASSOCIATION
Inder K. Sud
Director
Middle East Department
Middle East and North Africa Region
AGREED AND CONFIRMED:
REPUBLIC OF YEMEN
By: _____________________
    Authorized Representative
Date: _____________________