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The World Bank
 
Turkey Country Office
 
Tel : (90-312) 446 38 24 
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT 
Ugur Mumcu Caddesi 88 
Fax: (90-312) 446 24 42 
I
NTERNATIONAL DEVELOPMENT ASSOCIATION 
2
nd
 
Floor, 06700, Gaziosmanpasa 
 
 
ANKARA 
–
TURKEY 
 
CONFORMED COPY 
August 26, 2003 
 
Mr. Melih Nemli 
Acting General Director 
General Directorate of Foreign Economic Relations 
The Undersecretariat of Treasury 
Ankara, Turkey 
 
Subject: Turkey - Privatization Social Support Project 
(Loan No. 4587-TU) 
 
Amendment to the Loan Agreement 
 
Dear Mr. Nemli, 
This refers to the Loan Agreement between Republic of Turkey (the Borrower) 
and the International Bank for Reconstruction and Development (the Bank), dated 
December 21, 2000 for the Privatization Social Support Project (PSSP) and to Ms. Seven 
Yucel’s letter dated August 6, 2003, requesting to increase the Authorized Allocation of 
the Special Account to $30 million. Based on our review of past disbursements, including 
the large job loss compensation component and your forecasted disbursements, we do not 
think that an increase in the Authorized Allocation of the Special Account to $30 million 
is justified at this time. However, I am pleased to inform you that the Bank hereby agrees 
to increase the Authorized Allocation of the Special Account set forth in paragraph 1 of 
Annex A to Schedule 1 to the Loan Agreement to $25 million. Accordingly, the amount 
set forth in paragraph 3 of Annex B to Schedule 1 to the Loan Agreement is also 
increased to $25 million.   
 
This increased ceiling should facilitate disbursement of the forecasted $20 million 
payments and parallel smaller payments. Also, please note that the $25 million authorized 
allocation amount is in accordance with the Bank’s operational policies (OP 12.20), 
which allow authorized allocation for the special accounts in an amount up to 10% of the 
Loan amount. 
 
We trust that this will meet your requirements, and we will work to ensure that 
Special Account replenishment requests are made in an expedited manner, as well as any 
direct payment requests to contractors, to ensure there are no cash flow problems on the 
Project. 
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Mr. Melih Nemli 
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August 26 2003 
 
Please confirm your agreement with the foregoing by signing, dating and 
returning to us the enclosed copy of this letter. Upon receipt by the Bank of the copy of 
this letter duly countersigned by you, this amendment will become effective as of the date 
of the counter signature.  
 
Sincerely, 
 
/s/ Marie-Helene P. Bricknell 
Acting Country Director 
Turkey Country Unit 
 
CONFIRMED: 
 
REPUBLIC OF TURKEY 
 
By: /s/ Aysen Kulakoglu, Head of Department 
 
Authorized Representative 
Date: September 15, 2003 
 
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Mr. Melih Nemli 
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August 26 2003 
 
Cleared with and cc:  Mmes. Barlas (LEGEC); Koilpillai (LOAG1), Dixon (ECSHD) 
 
Distribution: 
 
Region 
Messrs./Mmes. 
Dixon, Fidler, McLaughlin, Rutkowski, Innes, Fretwell, 
Akcayoglu, Macica, Manghinang (ECSHD); Bricknell, 
Horvai, Ronay, Hensley (ECCU6); Westin (ECSPS); 
Bhattacharya, Hebert, Aroymak, Ting, Vani (ECSPS) 
Unit Files 
 
Bankwide 
Messrs./Mmes. 
Rajasingham (FRM) ; Mehta (o/r) (LOAG1) 
 
DFretwell:jmm