Page 1 December 14, 2001 H.E. Zina Andrianarivelo Razafy Ambassador Embassy of the Republic of Madagascar 2374 Massachussetts Avenue, NW Washington, DC 20008 Re: Credit No. 3589 MAG (Multisectoral STI/HIV/AIDS Prevention Project) Development Credit Agreement (Article I, Section 1.01 (a)) List of Participating Countries Excellency: We are pleased to refer to the Development Credit Agreement (the Agreement) of even date herewith between Republic of Madagascar (the Borrower) and International Development Association (the Association) and, more particularly, to the definition of "Participating Countries" in Section 1.01 (a) of the Agreement, and to inform you that, for the purposes of the Credit Agreement, the following countries are not "Participating Countries" and, therefore, not eligible to supply goods and services under the Credit: Bahamas, Bahrain, Brunei Darussalam, Cyprus, Oman, Qatar, Singapore, and the United Arab Emirates. This list of ineligible countries is in addition to the list of ineligible countries under paragraphs 1.6 and 1.8 of the "Guidelines for Procurement under IBRD Loans and IDA Credits" published by the Bank in January 1995 and revised in January and August 1996, September 1997 and January 1999 (the Guidelines). In accordance with the operational policies of the Association, the term "ineligible countries" applies both to the nationality of bidders, and to the source of goods and services provided. Please confirm your agreement to the foregoing by signing the enclosed copy of this letter and returning it to us for our records. Sincerely yours, INTERNATIONAL DEVELOPMENT ASSOCIATION By /s/ Regional Vice President Africa CONFIRMED AND AGREED: REPUBLIC OF MADAGASCAR By /s/ Authorized Representative Page 2