生 LOAN NUMBER 1302 BR AMENDING AGREEMENT AGREEMENT, dated J& V1 " *-*-,1 1981, between FEDERATIVE REPUBLIC OF BRAZIL (hereinafter called the Borrower), INTERNATIONAL BANK FOR RE-CONSTRUCTION AND DEVELOPMENT (hereinafter called - the Bank) and INSTITUTO NACIONAL DE ALIMENTAgAO E NUTRIgAO (hereinafter called INAN). WHEREAS by a loan agreement (hereinafter called the Loan Agreement) dated October 1, 1976, between the Borrower and the Bank, the Bank has made a loan (hereinafter called the Loan) to the Borrower, in an amount in various currencies equivalent to nineteen million United ' States dollars ($19,,000,000) on the terms and conditions seVforth in the Loan Agreement; WHEREAS by a project agreement (hereinafter called the Project Agreement) dated October 1, 1976, between the Bank and INAN, INAN agreed to comply with the obligations in the Project Agreement contained, on the terms and conditions set forth therein; WHEREAS INAN and the Borrower have requested the Bank to agree to the modification of some covenants, agreements and obligations in the Loan Agreement and in the Project Agreement contained and to enter into this agreement (hereinafter called this Agreement) to reflect such modification; and WHEREAS upon the basis, inter alia, of the foregoing the Borrower, the Bank and INAN have agreed to enter into this Agreement upon the terms and conditions hereinafter set forth; NOW, THEREFORE, it is hereby agreed as follows: ARTICLE I Amendments to the Loan Agreement Section 1.01. Section 1.02 of the Loan Agreement is hereby amended as follovs: (a) Paragraphq (c) and (e) are deleted. (b) Paragraph (i) shall read as follows: -2- "(i) "Deliberative Council" means the Conselho Deliberativo constituted within INAN and composed of representatives of the Borrower, appointed by the Ministries of Health, Agriculture, Education and Cul- ture, Labor, Interior, Industry and Commerce, Social Welfare, Secretariat of Planning of the Presidency of the Republic, and General Staff of the Armed Forces." Section 1.02. Section 2.03 shall read as follows: "The Closing Date shall be June 30, 1983, or such later date as the Bank shall establish. The Bank shall promptly notify the Borrower of such later date." Section 1.03. The addresses of the Borrower and INAN in Section 7.02 shall read as follows: "The following addresses are specified for the purposes of Section 11.01 of the General Conditions: For the Borrower: Ministfrio da Fazenda Edificio Ministdrio da Fazenda Esplanada dos Ministfrios 70048 - Braslia, D.F., Brazil With copies to: INAN Instituto Nacional de Alimentaglo e Nutriglo Avenida W-3 Norte, Quadra 510, Bloco A 70750 - Brasilia, D.F., Brazil -3- Cable address: Telex: MINIFAZ 611506 PGFN BR Brasilia, D.F. With copies to: INAN Brasflia, D.F." Section 1.04. Schedule 1 to the Loan Agreement shall read as follows: "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 ex- penditures 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) Loans to small 2,600,000 38% of disburse- farmers (Part C ments of the Project) (2) Civil works, 15,750,000 38% marketing and feasibility studies, food, vehicles and equipment, in- cremental salary and other operat- ing expenses for Parts A, B, C, D and F of the Project -4- Amount of the Loan Allocated % of (Expressed in Expenditures Category Dollar Equivalent) to be Financed (3) Fellowships: 260,000 (a) Outside Brazil 100% of foreign expenditures (b) In Brazil 38% (4) Consultants' 140,000 services: (a) Foreign 100% of foreign consultants expenditures (b) Brazilian 38% consultants (5) Unallocated 250,000 TOTAL 19,000,000" (c) Paragraph 4 to Schedule 1 to the Loan Agreement shall read as follows: "Notwithsta-ding the provisions of paragraph 1 above, no withdrawals shall be made in respect of payments made for: (a) expenditures prior to the date of this Agreement; (b) expenditures of a Participating Entity until such Entity has entered into a Subsidiary Project Agreement; and -5- (c) expenditures made before July 1, 1980 in respect of Category (3) for Part D.2 of the Project." Section 1.05. (a) Sub-paragraph 1 of Part A of Schedule 2 shall read as follows: "1. Food and Nutrition surveys and studies." (b) Sub-paragraph 3 of Part B of Schedule 2 to the Loan Agreement shall read as follows: "3. Health and Food Marketing Services." (c) Part D of Schedule 2 shall read as follows: "Part D: Development of a System for the Production and Marketing of Basic Foods for the Low-income Population 1. Research on applied food technology for low-income producers and fishermen. 2. Marketing of basic foods." (d) Sub-paragraph 2 from Part E of Schedule 2 is deleted. (e) The Project, as amended, is expected to be completed by December 31, 1982. Section 1.07. The Annex to Schedule 2 shall read as follows: -6- "ANNEX TO SCHEDULL 2 Part of the Project Participating Entity Part A.l Instituto Brasileiro de Geografia e Estatfstica Part A.2 Fundação Instituto de Pesquisas Econômicas Part B.1 EMBRATER and Empresa de Assistência Técnica e Extensao Rural - Sergipe Part B.2 Faculdade de Saúde Pública of the Universidade de Sffo Paulo, Ministério da Educação e Cultura and Secretarias Estaduais de Educação Part B.3 Fundação de Ensino Superior de Pernambuco (FESP), Companhia Brasileira de Alimentos (COBAL) and Companhias Integradas de Desenvolvimento Agropecuário (CIDAS) Part C Banco do Brasil S.A. Part D.1 Governmental Centers of Food Technology Part D.2 Companhia Brasileira de Alimentos (COBAL)" -7- ARTICLE II Amendments to the Project Agreement Section 2.01. Section 2.02 (a) shall read as follows: "INAN shall maintain a unit to coordinate the carrying out of the Project and to supervise the performance of the Participating Entities in respect of the Project. The staff of such unit shall include at all times a Project coordi- nator, whose qualifications and experience shall be satis- factory to the Bank, a deputy Project coordinator, a finance officer, a planning officer, an agricultural economist, a sociologist, a nutrition expert, a training specialist and the necessary supporting staff." Section 2.02 (a) Sub-paragraph (x) of Section 2.05 (a) is deleted. (b) Sub-paragraph (xii) of Section 2.05 (a) shnll read as follows: "(xii) to require, in the Subsidiary Project Agreement with Companhia Brasileira de Alimentos (COBAL) that COBAL will (I) build the infrastructure works necessary for the carrying out of Part D.2 of the Project and (II) take all action in order to develop and maintain the food distribution services to be provided under the Project;" Section 2.03. Sections 2.06 and 2.08 are deleted. Section 2.04. The address of INAN in Section 6.01 shall read as follows: "For INAN: Instituto Nacional de AlimentaSlo e Nutriglo Avenida W-3 Norte, Quadra 510, Bloco A 70750 - Brasflia, D.F., Brazil -8- Cable address: Telex: INAN 061-1210" Brasflia, D.F. Section 2.05. Schedule 1 is deleted. ARTICLE III Section 3.01. This Agreement,shall come into force and effect upon signature by the Borrower, the Bank and INAN. IN WITNESS WHEREOF, the parties hereto, acting through their representatives thereunto duly authorized, have caused this Agreement to be signed in their respective names, and delivered in the District of Columbia, United States of America, as of the day and year first above written. FEDERATIVE REPUBLIC OF BRAZIL Authorized Representative INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By h &I k -j,' . (. r ~ 1 ++i Regional Vice President Latin America and the Carribean INSTITUTO NACIONAL DE ALIMENTAgAO E NUTRIQO Authorized Representative INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT CERTIFICATE I hereby certify that the foregoing is a true copy of the original in the archives of the Interna- tional Bank for Reconstruction and Develop- ment. In witness whereof I have signed this Certifi- cate and affixed the Seal of the Bank thereunto this /k day of 198 . FOR SECRETARY