The World Bank 1818 H Street N.W . (202) 477-1234 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Washington, D.C. 20433 INTBAFRAD INTERNATIONAL DEVELOPMENT ASSOCIATION U.S.A. Cable Address : Cable Address :INDEVAS November 7, 2002 .ate Mr. Deni Lineu Schwartz Secretario da Agricultura e do Abastecimentb, Rua dos Funcionarios, 1559 Curitiba, Parana 80035-050 .- Brazil Re :Natural Loan 4060-BR (Rural Poverty Alleviation and Resources Management Project) Amendment to the Loan Agreement Dear Sir: Please refer to the Loan Agreement, dated December 23, 1997, between the International Bank for Reconstruction and Development (the Bank) and the State of Parana (the Borrower) for the above-referenced Project, as amended (the Loan Agreement), and to your letter, dated September 18, 2002, requesting an amendment to the Loan Agreement . We agree with your request and propose to amend the Loan Agreement as follows 1 . In Section 3 .02 (a) (ii), CODAPAR's fee is increased from "1 .5%" to "2 .5%" . 2. In Section 3.05 : (a) in paragraph(a), the date "December 2002" is replaced by "December 2004" ; and (b) in paragraph(b), the month of "August" is replaced by "December" . 3. The table in paragraph I of Schedule I is replaced by the table in the Annex to this letter . 4. In Schedule 2: (a) in Part A.3 (a) of the Project, the following subparagraph (vi) is added to read as follows: "(vi) biodiversity protection ;" (b) in Part A.3 (b) of the Project, the figure of "8,000 kilometers" is replaced by "6,000 kilometers". (c) Part B .2 of the Project is amended to read as follows : "2 . Institutional strengthening, through the provision of equipment and vehicles, o DERAL aiming at the improvement of the information on agricultural prices, an Departamento de Fiscalizapao da Secretaria da Agricultura e do Abasteciment RCA 248423. 0 WUI 64145 L) FAX (202) 477-6391 -2- November 7, 2002 Inspection Department of the Secretariat of Agriculture) aiming at the improvement of hydrological resources management, and biodiversity control and protection ." (d) in Part B .5 of the Project, paragraphs (d) and (e) are deleted . 5"$100,000 . In Schedule 4, Section I, Part C .4, the amount of "$50,000 equivalent" is replaced by equivalent" . Please confirm your agreement to this amendment by signing and dating the two originals of this letter in the spaces provided below, and returning one to us . Upon receipt by the Bank of one original of this letter signed by you, this amendment will become effective as of the date of countersignature . Sincerely, INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By Vin,-,d Thomas Latin America anczement Caribbean Region Country ManaDirectorUnit, Brazil : the AGREED: STATE Auto@6=1n$qv Deni LineuSchwartz "ve Date d -7JY,01117 a0SOD 2 cc. : Ms. Yara Christina Eisenbach PGFN, SEAIN -3- November 7, 2002 ANNEX Amount of the Loan Allocated (Expressed in "Category Dollar Equivalent) toofbeExpenditures Financed (1) Goods, works and services for Part A of the Project : (a) CODAPAR 89,000,000 87% until an Subprojects amount equivalent to $40,000,000 has been withdrawn ; and 45% thereafter (b) DER Subprojects 12,500,000 83% until an amount equivalent to $5,200,000 has been withdrawn ; and 45% thereafter (c) COHAPAR 43,000,000 60% until an amount Subprojects equivalent to $38,600,000 has been withdrawn ; and 45% thereafter (2) CODAPAR's Fees 2,500,000 100% (3) For Part B of the Project : (a) Goods 2,000,000 45% (b) Consultants' services : (i) Technical assistance to CODAPAR and COHAPAR Beneficiaries 10,000,000 100% (ii) Training and workshops 8,000,000 100% (iii) researchand Studies 5,000,000 100% (c) Operating Costs 3,000,000 100% (4) Unallocated 0 TOTAL 175,000,000"