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June 15, 1995
Lyonpo DorJi Tshering
TvEnister for Finance
Royal Government of Bhutan
Tashichhodzong
Thimphu, Bhutan
Dear Mr. Minister:
Re:
Credit No. 2533-BHU (Third Forestry Development Project)
Amendment of Development Credit Agreement
We refer to the Development Credit Agreement (Third Forestry Development 
Project), dated August 11, 1993, as amended between the Kingdom of Bhutan (the 
Borrower) and the International Development Association (the Association). We also 
refer to our current policy, with respect to contracts financed by the Association 
out of the proceeds of a given credit, that the threshold amounts for prior review 
by the Association of such contracts must equal the corresponding ceiling amounts 
specified for such contracts for purposes of withdrawals from the credit account on 
the basis of statements of expenditures for expenditures under such contracts.
We are pleased to advise you that, in light of this policy, the Association 
has agreed to amend and hereby amends the Development Credit Agreement mentioned 
above as follows:
In Schedule 3, Section 1, part B, paragraph I (a), the references to the 
amounts "$50,000" and "S75,000" are changed to "$250,000" and "$100,000", 
respectively.
All other provisions of the Development Credit Agreement, as so amended, 
remain in full force and effect.
Kindly indicate your agreement to the above amendment by signing and dating 
the confirmation form on the enclosed copy of this letter, and returning it to us.
Sincerely yours,
Heinz Vergin
Director
Country Department II
South Asia Region
CONFIRMED:
KINGDOM OF BHUTAN
Authorized Representative
Date:  October 7, 1995