Page 1 March 12, 1997 His Excellency Aleke K. Banda Minister of Finance Ministry of Finance P. O. Box 30049 Lilongwe 3, Malawi Dear Sir: Agricultural Services Project (Credit Number 2514-MAI) Amendment to Development Credit Agreement We refer to the Development Credit Agreement (the Agreement) for the abovementioned Project, dated October 1, 1993, between the Republic of Malawi (the Borrower) and the International Development Association (the Association), and to the letter from your Ministry, dated January 24, 1997, requesting that the proceeds of the Credit be used for funding operating costs beyond the date referred to in Category (5) of the table in paragraph 1 of Schedule 1 to the Agreement. This letter is to inform you of our response to your request and to propose that the terminal date for the disbursement of 100% for operating costs under Category (5) in the table in paragraph 1 of Schedule 1 to the Agreement be amended to read “March 31, 1998”. All other terms and conditions of the Agreement, except as amended herein, shall remain in full force and effect. Terms defined in the Agreement and used in this letter shall have the same meaning given therein. This amendment shall take effect from January 1, 1997. Sincerely, Ahmad Ahsan Acting Country Director for Malawi Africa Region