Page 1 October 9, 2001 His Excellency Zurab Nogaideli Minister of Finance Ministry of Finance 70, Irakli Abashidze St. 380062 Tbilisi GEORGIA Re: Credit Number 3357 GE: Roads Project Technical Correction in the Development Credit Agreement Excellency: We refer to the Development Credit Agreement between Georgia and the International Development Association (the Association) for the above-referenced Project dated July 26, 2000. Please be advised that Category 3 of Schedule 1 should read as follows (added language underlined): "(3) Consultant’s services, training and study tours" and Paragraph 4 of Schedule 1 should read as follows: "4. The Association may require withdrawals from the Credit Account to be made on the basis of statements of expenditure for expenditures for: (a) works under contracts costing less than $600,000 equivalent each; (b) goods under contracts costing less than $100,000 equivalent each; (c) (i) consultants’ services under contracts with individuals costing less than $50,000 equivalent each; and (ii) consultants’ services under contracts with firms costing less than $100,000 equivalent each; and (d) operating cost, training and study tours, under such terms and conditions as the Association shall specify by notice to the Borrower." We would appreciate your acknowledgment of this letter and confirmation of your agreement to this correction. Sincerely, By /s/ Judy O’Connor Country Director for Georgia Country Unit III Europe and Central Asia Region AGREED: By /s/ Zurab Nogaideli Date: October 23, 2001