The World Bank
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT
INTERNATIONAL DEVELOPMENT ASSOCIATION
1818 H Street
Washington, DC 20433
USA
SenderPhone
SenderFax
April 7, 2010
CONFORMED COPY FOR PUBLIC DISCLOSURE
His Excellency
Mr. Alberto Jose Guevara Obregón
Minister of Finance and Public Credit
Ministry of Finance and Public Credit
Edificio del Ministerio de Hacienda y Crédito Público
Avenida Bolivar, frente a la Asamblea Nacional Managua, Nicaragua
Re:
Nicaragua: Fourth Roads Rehabilitation and Maintenance Project
Credit No. 4185-NI
Second Amendment to the Financing Agreement
Excellency:
Please refer to the Financing Agreement (the Financing Agreement) entered into between
the Republic of Nicaragua (the Recipient) and the International Development Association (the
Association) dated June 22, 2006, and amended on October 13,2008 for the above-referenced
Project. Capitalized terms used in this amendment letter and not defined herein have the meaning
ascribed to them in the Financing Agreement.
We are pleased to inform you that pursuant to our discussions on the subject and your
request through letter dated February 22, 2010, the Association agrees to your request and
proposes to amend the Financing Agreement in order to reflect (a) the change in an outcome
indicator in one Project component and (b) the reallocation of proceeds of the Financing among
the categories of the Financing Agreement. Consequently, the Financing Agreement is hereby
amended to read as follows:
1. Part B of Schedule 1 of the Financing Agreement is amended to read as follows:
“Part B: Rural Transport Improvement. Restoration to gravel or adoquine standards of
approximately 198 kilometers of secondary and tertiary rural roads.”
2. The table in paragraph A.2, Section IV of Schedule 2 to the Financing Agreement is
amended to read as follows:
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Category
Amount of the
Financing
Allocated
(expressed in
SDR)
Percentage of
Expenditures to be
Financed
(1) Works
(a)
under Part A of the Project
(i) Diriamba — Casares road
section
4,233,431.59
85%
(ii) La Virgen — San Juan del
Sur road section
2,958,818.90
85%
(b)
under Part B of the Project
27,532,282.18
85%
(c)
for periodic maintenance under
Part C of the Project
1,670,000
85%
(d)
for routine maintenance by
Microenterprises and
2,510,000
80%
Community Organizations
under Part C of the Project
(2) Goods
(3)
Consultant's services
210,000 100% of foreign
expenditures and
85% of local
expenditures
1,621,502.42
100%
293,964.91
100%
(4) Training
(a) for MTI's and FOMAV' s staff
(b) for Microenterprises
TOTAL AMOUNT
70,000
80%
41,100,000
Please confirm your agreement with the foregoing amendments by signing and dating this
Amendment Letter in the spaces provided below. Henceforward, all other provisions of the
Financing Agreement, except as amended through this Amendment Letter shall remain in full
force and effect. This Amendment Letter shall be executed in two counterparts each of which
shall be an original.
-3-
Upon confirmation, please return one fully executed original to us. The provisions set
forth in this Amendment Letter shall become effective as of the date of the countersignature upon
receipt by the Bank of the countersigned original of this Amendment Letter.
Sincerely,
INTERNATIONAL DEVELOPMENT ASSOCIATION
By /s/ Laura Frigenti
Director
Central America Country Management Unit
Latin America and the Caribbean Region
AGREED:
REPUBLIC OF NICARAGUA
By/s/ Mr. Alberto José Guevara Obregón
Authorized Representative
Date: June 22, 2010