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 February 2, 1996
  His Excellency Rui Dia de Souza
  Minister of Finance
  Bissau
  Republic of Guinea Bissau
  Excellency:
                 Energy Project (Credit No 2237-GUB)
                 Amendment to the Development Credit Agreement
      We refer to the Development Credit Agreement (the
Agreement) for the above-mentioned Project, dated August 21,
1991, between the Republic of Guinea Bissau (the Borrower) and
the International Development Association (the Association) as
amended and restated in the Agreement, dated July 13, 1995, as
well as to your letter dated, December 21, 1995, requesting an
amendment to the Agreement.
      We are pleased to inform you that the Association agrees
with the Borrower's request and proposes the following
amendments to the Agreement:
1.    Categories 2 and 7 of the table in Schedule 1 are amended
as follows:
                              "Amount of the
                             Credit Allocated           % of
                              (Expressed in         Expenditures
         Category             SDR equivalent)      to be financed
(2)   Consultants' services     1,280,000              100%
      including training
(7)   Unallocated                810,000"
2.    A new category (8) is added to the table of Schedule 1
to read as follows:
                              "Amount of the
                             Credit Allocated           % of
                              (Expressed in         Expenditures
         Category             SDR equivalent)      to be financed
(8)   Operating costs for          50,000              75%"
      Part A.1 of the Project
3.    The following new paragraph 3 is added to Schedule 1:
      "3.  For the purposes of this Schedule, the term
'operating costs' includes expenditures for fuel, per diem,
communications and office supplies in relation with the work
conducted by the Technical Cell of the DGEI."
      Please confirm your agreement to the amendment by
countersigning, dating and returning to us the enclosed copy of
this letter.  This amendment shall become effective as of the
date of countersignature.
Sincerely,
Jean-Louis Sarbib
Director
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Western Africa Department
Africa Region
CONFIRMED:
REPUBLIC OF GUINEA BISSAU
By:   Rui Dia De Souza
      Authorized Representative
Date: March 4, 1996