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September 23, 1997
His Excellency Jérémie Bonnelame 
Minister for Foreign Affairs
  and Economic Planning 
P.O. Box 656 
Mont Fleuri 
Republic of Seychelles
Excellency:
Loan No. 3551 SEY (Environment and Transport Project)
Amendment to Loan Agreement and Project Agreement
We refer to the Loan Agreement (the Agreement), dated January 15, 1993, for the 
Environment and Transport Project (the Project) between the Republic of Seychelles 
(the Borrower) and the International Bank for Reconstruction and Development (the 
Bank) and to the Project Agreement between the Bank and Public Utilities Corporation 
of even date therewith (the Project Agreement).  We also refer to your letter dated 
January 9, 1997 to the Bank requesting the Bank to agree to finance a water supply 
scheme in Baie Lazare as an additional component under the Project.
We are pleased to confirm, therefore, our consent to amend the Agreement as 
follows:
1.
Schedule 1 is amended to read as set forth in the Attachment to this letter.
2.
Paragraph 1. of Part A of the Schedule 2 to the Agreement will be changed to:
"1. Praslin Water Supply Phase II and Baie Lazare Water Works 
construction of two additional intakes near existing intakes at 
Fonds 
B’offay and Nouvelle Découverte in Praslin,  and, construction of  
treatment 
works, including a pumping station, to abstract water from 
Baie Lazare in Mahé.
Furthermore, we confirm our consent to amend Part B of Section I in Schedule 1 
to the Project Agreement as follows:
"2.
Civil works under Part A.1 of the Project, up to an aggregate amount equivalent 
to $600,000, may be carried out by force account.
3.
Civil works under Parts A.1of the Project, up to an aggregate amount equivalent 
to $500,000, may be carried out by national competitive bidding."
Please indicate your agreement with the foregoing amendment by signing and 
dating the confirmation form on the attached copy of this letter and returning it to 
us, while keeping the original for your records.
This amendment will become effective as of the date of confirmation of this 
letter.
Sincerely,
Michael N. Sarris
Country Director for the Republic of Seychelles
Africa Region
Attachments
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AGREED:
REPUBLIC OF SEYCHELLES
By:
Jérémine Bonnelame
Authorized Representative
Date:
October 6, 1997
SCHEDULE 1
Withdrawal of the Proceeds of the Loan
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
     Dollar Equivalent)   to be Financed
(1)
Civil works:   
100% of foreign 
 expenditures 
and
(a)
under Part A.1
75% of local
of the Project
730,000
expenditures
(b)
under Part C.1
of the Project    2,100,000
(c)
under Part C.2
of the Project
 30,000
(d)
other 420,000
(2)
Equipment, materials
 
 
100% of foreign 
and supplies:
expenditures and
75% of local
(a)
under Part A.1
expenditures
of the Project
700,000
(b) 
under Part A.3
of the Project
 20,000
(c) 
under Part C.1
of the Project
 30,000
(d) other
130,000
(3)
Training
 75,000
100% of foreign 
 expenditures 
and
 
50% of local 
expenditures
(4)
Technical assistance:
 
50% of local 
 
expenditures for
services of
(a)
under Part A.3
consultants 
of the Project
-0-
domiciled within
the territory of
(b)
other 
40,000
the Borrower and
 
100% of foreign
expenditures for 
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services of 
other consultants  
(5)
Consultants'   
50% of local 
services: 
expenditures for
services of
(a)
under Part A.3
consultants 
of the Project
-0-
domiciled within
the territory of
(b)
other 
25,000
the Borrower and
 
100% of foreign
expenditures for 
services of 
other consultants  
(6)
Artisan compensation
-0-
100% of foreign 
and reinstallation
expenditures and
50% of local 
expenditures
 (7)
Unallocated
200,000
________
TOTAL
     4,500,000