Page 1 RCA 248423. & WUI 64145 & FAX (202) 477-6391 The World Bank 1818 H Street N.W. (202) 477-1234 I NTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Washington, D.C. 20433 Cable Address: INTBAFRAD INTERNATIONAL DEVELOPMENT ASSOCIATION U.S.A. Cable Address: INDEVAS January 21, 2004 Isaac Alfie Minister of Economy and Finance Colonia 1089 P. 3 Montevideo, URUGUAY Fax: 598 2 902-1277 Ref: URUGUAY: - Loan 7113-UY- Third Basic Education Quality Improvement Project Amendment to the Loan Agreement Dear Mr. Alfie: Please refer to the Loan Agreement for the Third Basic Education Quality Improvement Project , between the Republic of Uruguay (the Borrower) and the International Bank for Reconstruction and Development (the Bank) dated June 17, 2002, and to the Project Agreement between the Bank and the Administración Nacional de Educación Pública (ANEP) of the same date. The Bank has received a letter from ANEP dated November 20, 2003 requesting to amend Schedule 1 to the Loan Agreement: (i) to reflect that the Bank will finance 100% of imported g oods under Category (3) “Goods”; and (ii) to reallocate the amounts under Categories of expenditures. We are pleased to concur with your request. A revised Schedule 1 to the Loan Agreement is attached. Please confirm your agreement to the foregoing by signing and dating this Amendment Letter in the spaces provided below. This Amendment Letter shall be executed in two counterparts each of which shall be an original. Upon your confirmation, please return one fully executed original to us. The provisions et forth in this Amendment Letter shall become effective as of the date of this letter upon receipt by the Bank of one fully executed original of this Amendment Letter. Sincerely, Page 2 -2- LN-7113-UY _______________________________ Axel van Trotsenburg Director Argentina, Chile, Paraguay and Uruguay AGREED: REPUBLIC OF URUGUAY By: _________________________ (Authorized Representative) Name: Isaac Alfie Date: February 25, 2004 cc: Lic. Javier Bonilla Saus, Director, Administración Nacional de Educación Pública (ANEP), 598 2 902-3491 Dra. Inés Lacalle, Coordinator, Mecaep, 598 2 908-2062 Page 3 -3- LN-7113-UY ATTACHMENT Schedule 1 Withdrawal of the Proceeds of the Loan 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: Category Amount of the Loan Allocated (in US dollars) % of Expenditures to be financed (1) Works (except as covered by Category (2) below) 24,165,000 82% (2) Works under Part B.1(vii) of the Project 505,000 32% (3) Goods 5,755,000 78% of local expenditures and 100% of foreign expenditures (4) Consultants’ services (except as covered by Category (5) below and excluding teachers’ salaries) 4,270,000 82% (5) Training 3,875,000 100% (6) Goods, works and services financed by PME Grants 3,010,000 100% (7) Premia for Interest Rate Caps and Interest Rate Collars 0 Amount due under Section 2.09 (d) of this Agreement (8) Front-end Fee 420,000 Amount due under Section 2.04 of this Agreement (9) Unallocated 0 TOTAL 42,000,000.00 Page 4 -4- LN-7113-UY Cleared by: Messrs/Mmes: González (LEGLA); Van Praag (LOAG3); cc: Messrs/Mmes: D. Oliveira (LEGLA); Raposo (LOAG3); Blasco (LCOAA); Masutti, Salatino, Saez, Mackey, De Lombardo(LCC7C), Arriagada, Fiszbein, Campos Augusto, Silveira, Jarrin, LC7ACS (LCSHD); IRIS