Page 1 RCA 248423. \09 WUI 64145 \09 FAX (202) 477-6391 The World Bank Office, Romania Boulevard Dacia 83 Tel.: (4021) 201-0311 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Bucharest, Sector2 Fax.:(4021) 2102021 I NTERNATIONAL DEVELOPMENT ASSOCIATION Romania CONFORMED COPY August 12, 2003 His Excellency Mihai Tanasescu Minister of Public Finance Bucharest, Romania Dear Mr. Minister: Romania: Loan No. 4533-RO - Agricultural Support Services Project Loan Agreement Reallocation of Loan Proceeds Pursuant to your letter dated July 14, 2003, requesting the International Bank for Reconstruction and Development (the Bank) to reallocate the proceeds of the loan set forth in the Loan Agreement between the Bank and Romania dated March 27, 2000 (the Loan Agreement), we are pleased to concur with your request. Therefore, the Bank hereby reallocates the proceeds of the loan set forth in the table in paragraph 1 of Schedule 1 to the Loan Agreement as follows: US$100,000 from Category 1 to Category 2. Accordingly, the amounts now allocated to the Categories are as follows: Category 1, US$ 7,900,000; Category 2, US$ 200,000; Category 3, US$ 1,280,000; Category 4, US$ 80,000; Category 5, US$ 380,000; Category 6, US$ 1,160,000; The revised table in paragraph 1 of Schedule 1 to the Loan Agreement is attached as annex to this letter. Sincerely, /s/ Andrew N.Vorkink Director South Central Europe Country Unit Europe and Central Asia Region AGREED: ROMANIA By: /s/ Mihai Tanasescu Authorized Representative Title: Minister of Public Finance Page 2 His Excellency Mihai Tanasescu -2- August 6, 2003 Date : September 5, 2003 cc : H.E. Ilie Sarbu Minister of Agriculture, Forests, Waters and Environmental Protection Bucharest, Romania Mr. Ad Melkert Executive Director World Bank Page 3 His Excellency Mihai Tanasescu -3- August 6, 2003 Annex 1. The table below sets forth the Categories of items to be financed out of the proceeds of the Loan, the allocation of the amounts of the Loan to each Category and the percentage of expenditures for items so to be financed in each Category: Amount of the Loan Allocated % of (Expressed in Expenditures Category Dollars) to be Financed (1) Grants under 7,900,000 75% Part A of the Project (2) Goods under Part B 200,000 100% of foreign of the Project expenditures, 100% of local expenditures (ex-factory cost) and 80% of local expenditures for other items procured locally (3) Consultants’ Services 1,280,000 100% and training under Part B of the Project (4) Technical Services for print 80,000 100% of foreign production expenditures (5) Incremental Operating Costs 380,000 100% (except for locally procured goods – 85%) (6) Unallocated 1,160,000 _________ TOTAL 11,000,000 Page 4 His Excellency Mihai Tanasescu -4- August 6, 2003 Cleared w/ and cc: Mesrs./Mmes: Tuck (ECSSD); Bhattacharya (ECSES); Kichigina (LEGEC); Chistyakov (LOAG1) Distribution: Region: Messrs./Mmes: Mitra (2)(ECAVP); Saadat, Negulescu, Ihora (ECCRO); Tuck, Ablasser, Srivastava, Rachita, Badea (ECSSD); Southworth, Williams, Alexieva, Burul-Sir, Koleva (ECCU5); Strelkova, Westin, Bhattacharya, Hebert, Constantinescu, Ganguli (ECSPS) Unit Files Bankwide: Messrs./Mmes: Rajasingham (FRM); Kichigina (LEGEC)