OFFICIA
DOCUMENTS
ISLAMIC REPUBLIC OFAFI TANTSTAN
No,jewMb&,V t4 ,2015
International Development Association
1818 H Street, N.W.
Washington, D.C. 20433
United States of America
Re:    AFGHANSTAN: Grant No. D093-AF
(Trans Hindukush Road Connectivity Project)
Section 5.01 of the General Conditions
Financial and Economic Data
Dear Sirs and Mesdames:
In connection with the Financing Agreement of this date between Islamic Republic of
Afghanistan (the Recipient) and International Development Association (the Association) for the
above-captioned Project, and the General Conditions (General Conditions) made applicable to the
Financing Agreement, I am writing on behalf of the Recipient to set forth the following:
1 .   We understand and agree that, for purposes of Section 5.01 of the General Conditions, the
Recipient is required by the Association:
(a)    to report "long-term external debt" (as defined in the World Bank's Debtor
Reporting System Manual, dated January 2000 (DRSM)), in accordance with the
DRSM, and in particular, to notify the Association of new "loan commitments" (as
defined in the DRSM) not later than 30 days after the end of the quarter during
which the debt is incurred, and to notify the Association of "transactions under
loans" (as defined in the DRSM) once a year, not later than March 31 of the year
following the year covered by the report; and
(b)    to: (i) notify the Association at least three months prior to incurring any non-
concessional long-term external debt, of its intention to incur such debt, together
with the proposed terms of such debt; and (ii) afford the Association a reasonable
opportunity to exchange views with the Recipient on the matter. For purposes of
this paragraph, "non-concessional long-term external debt" means any long-term
external debt (as defined in the DRSM), but excluding private debt (as so defined),
with an estimated grant element (GE) calculated in the manner published from time
to time by the Association (see, www.worldbank.org/ida under "reports") of less
than (i) 35% or (ii) the GE for determining concessionality established by the
International Monetary Fund in any Poverty Reduction and Growth Facility
arrangement or Policy Support Instrument with the Recipient in effect at the time
of such notice, whichever is higher.


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2.     We represent that no defaults exist in respect of any external debt (as defined in the DRSM)
incurred after January 1, 2002, or to any International Finance Institution. Due to lost and
destroyed records, we do not have a complete inventory of the Recipient's debt obligations
in connection with external public debt incurred prior to January 1, 2002, including external
debt owed to creditors other than International Finance Institutions. We have commenced
the process of regularizing this situation and undertake to report to the Association, on a
regular basis, on the status of the Recipient's discussions with creditors. We also undertake
to report to the Association, in a timely manner, all information relative to the Recipient's
external debt as will become available from time to time. In connection with external public
debt incurred in the course of calendar year 2002, we will be submitting to the Association
a Debtor Reporting System report at our earliest convenience. It is our understanding that,
in making the Financing, the Association may rely on the representations set forth or
referred to in this letter.
3.     Please confirm your agreement to the foregoing by having a duly authorized representative
of the Association sign in the space provided below.
Very truly yours,
ISLAMIC REPUBLIC OF AFGHANISTAN
Authorized Representative
AGREED:
INTERNATIONAL DEVELOPMENT ASSOCIATION
Authorized Repres native