Page 1 RCA 248423. \09 WUI 64145 \09 FAX (202) 477-6391 The World Bank 1818 H Street N.W. (202) 477-1234 I NTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Washington, D.C. 20433 Cable Address: INTBAFRAD INTERNATIONAL DEVELOPMENT ASSOCIATION U.S.A. Cable Address: INDEVAS CONFORMED COPY September 3, 2003 Andris Stals Director Liepajas Ras Rozu iela 6 LV3401 Liepaja, Latvia Dear Mr. Stals: Re: LATVIA: Loan No. 7033-LV (Liepaja Region Solid Waste Management Project) Amendment to the Project Agreement We refer to the Project Agreement (Liepaja Region Solid Waste Management Project) dated December 19, 2000 between the International Bank for Reconstruction and Development and the Liepajas Ras, Ltd. We also refer to your letter dated July 3, 2003 requesting amendments to the Project Agreement. We are pleased to inform you that the Bank agrees to the following amendments: 1. Part C of Schedule 1 is amended by adding a new section 2 to read as follows: “ 2. International Shopping Goods estimated to cost less than $100,000 equivalent per contract, may be procured under contracts awarded on the basis of international shopping procedures in accordance with the provisions of paragraphs 3.5 and 3.6 of the Guidelines.” 2. The former section “ 2. Procurement of Small Works ” is renumbered as section 3. 3. Part D (2) of Schedule 1 is amended by renumbering the first paragraph as “a” and adding a new paragraph “b” to read as follows: “ 2. Prior Review (a) With respect to all contracts for Parts B and C1, the procedures set forth in paragraphs 2 and 3 of Appendix 1 to the Guidelines shall apply. (b) With respect to the first contract to be procured in accordance with the procedures referred to in C (2) above, the following procedures shall apply: (i) prior to the selection of any supplier/execution of any contract under shopping procedures, the Borrower shall provide to the Bank a report on the comparison and evaluation of quotations received; Page 2 -2- Mr. Andris Stals (ii) prior to the execution of any contract procured under shopping procedures, the Borrower shall provide to the Bank a copy of the specifications and the draft contract; and (iii) the procedures set forth in paragraphs 2(f), 2(g) and 3 of Appendix 1 to the Guidelines shall apply. Please confirm your agreement to the foregoing amendment by signing, dating and returning to us the attached copy of this letter. This amendment shall become effective upon our receipt of the countersigned copy of this amendment letter. Sincerely, INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By: /s/ Roger Grawe Country Director Central Europe and the Baltic States Europe and Central Asia Region CONFIRMED: Liepajas RAS By: /s/ Andris Stals Authorized Representative Title: Director Date: September 10, 2003 Page 3 -3- Mr. Andris Stals Cleared with and cc: N. Rukuba-Ngaiza (LEGEC); D. Freese (LOAG1); K. Mostipan (ECSPS) cc: Haazen (ECSHD); Tuck, Holt, Halldin, Marc, Kiskis (ECSSD); Dobraja, Grube, (ECCLV); Hall (ECCU7); Strelkova, Westin, Bhattacharya, Hebert, Ganguli, Warzecha (ECSPS)