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July  29,  1996
His Excellency
Xaysomphone Phomvihane
Minister of Finance
Ministry of Finance 
Vientiane 
Lao People's Democratic Republic
Re: IDA Credit No. 2488-LA 
(Education Development Project) 
Amendment to Schedule 3 to the Development Credit Agreement
Excellency:
Kindly refer to the Development Credit Agreement (the "Agreement") for the 
abovereferenced Education Development Project (the "Project"), entered into between 
the Lao People's Democratic Republic (the "Borrower") and the International 
Development Association (the "Association"), dated September 24, 1993.
Pursuant to your letter to the Association dated June 17, 1996 (ref. no. 
1957/MOF), as the Borrower's duly authorized representative for the Project you 
requested a modification to the provisions of the Agreement governing the procurement 
of civil works under contracts awarded on the basis of national competitive bidding 
procedures.  This modification would increase from US$70,000 equivalent to US$200,000 
equivalent the value of individual contracts to be so awarded, and it would also 
increase the aggregate aanount of these contracts from US$1,600,000 equivalent to 
US$2,500,000 equivalent.
The Association now has the honor of informing Your Excellency that it has 
approved the Borrower's request.  Therefore, the purpose of this letter is to amend 
the provisions of Part D (1) of Schedule 3 to the Agreement solely as they pertain to 
the value of contracts to be awarded for the procurement of civil works in accordance 
with national competitive bidding procedures.  As such, it is our understanding that 
the amendment subject of this letter shall not apply to, or otherwise modify in any 
manner whatsoever, any of the other provisions of said Part D (1), which provisions 
shall remain unchanged and as originally set forth in Part D (1).
The relevant provisions of Part D (1) are hereby amended to read as follows:
"1.
Civil works estimated to cost the equivalent of two hundred thousand dollars 
($200,000) or less per contract, up to an aggregate amount not to exceed the 
equivalent of two million five hundred thousand dollars ($2,500,000), ...."
Please confirm your agreement, as the Borrower's duly authorized representative, 
to the foregoing amendment by signing and dating the corresponding form of confimation 
set forth below and returning this amendment letter to us at your earliest 
convenience.  A signed duplicate original of this amendment letter is enclosed 
herewith for the Borrower's official records.  This amendment letter shall become 
effective as of the date first above written, once it has been fully executed by the 
parties thereto.
Very truly yours,
INTERNATIONAL DEVELOPMENT ASSOCIATION
By _________________________
   Authorized Representative
AGREED AND CONFORMED:
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LAO PEOPLE'S DEIMOCRATIC REPUBLIC
By _________________________
   Authorized Representative
Date: August 22, 1996