Common use of Execution of the Project Clause in Contracts

Execution of the Project. (a) The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and to this end shall cause: (i) SDR to coordinate (at the federal level) and issue guidelines related to the carrying out of the Program, to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely manner; (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, to carry out the credit program included in Parts D and I of the Project; and (iv) EMBRAPA to carry out Part H of the Project, all with due diligence and efficiency, in accordance with appropriate administrative, financial and agricultural practices. (b) Without any limitation or restriction upon any of its other obligations under the Loan Agreement, the Borrower shall cause the State, under contractual arrangements satisfactory to the Bank, to perform in accordance with the provisions of the Project Agreement, all the respective obligations of the State therein set forth, shall take or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable the State to perform its obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (c) Without limitation to its obligations under paragraph (a) above, the Borrower shall: (i) take all action as shall be required to regulate, in a manner satisfactory to the Bank, the funding procedures which will ensure that the Executing Entities shall have the funds required for carrying out the Project available to them in a timely manner; and (ii) provide or cause SUDENE to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h) of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H of the Project and under the State Project, respectively, as provided in each POA. (d) The Borrower shall make the proceeds of the Loan allocated respectively: (i) for purposes of the State Project available to the State; and (ii) for Part H of the Project available to EMBRAPA; under arrangements satisfactory to the Bank. (e) The Borrower, through DTN, shall enter into agreements, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions of Schedule 5 to this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program; (B) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject in such manner as to: (i) protect the interest of the Bank and the Borrower; (ii) enable the Borrower to comply with its obligations under this Agreement; and (iii) achieve the purposes of the Project. (f) Unless the Bank shall otherwise agree, the Borrower shall not amend, abrogate or waive the provisions of the MCR applicable to the Program. (g) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms and conditions satisfactory to the Bank, not later than six months after the date of the Amending Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive or fail to enforce any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendations. Section 3.02. Except as the Bank shall otherwise agree, procurement of the goods, works and services required for the carrying out of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan shall be made in accordance with the provisions of Schedule 2 to the Project Agreement. (a) The Borrower shall: (i) furnish to the Bank by October 31 in each year, for its review and comment, the proposed POA and budget for the Project and for the Northeast Rural Development Program for the following fiscal year; (ii) afford the Bank a reasonable opportunity to comment on any modifications the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budget. (b) In order to assist the EMBRAPA in carrying out Part H of the Project, the Borrower shall cause EMBRAPA, under contractual arrangements satisfactory to the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the bank in August 1981. Section 3.04. The Bank and the Borrower hereby agree that the obligations set forth in Sections 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out, or caused to be carried out, by (i) the State in respect of the State Project, and by

Execution of the Project. (a) The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 and, to this Agreementend, shall: (i) through MOH carry out Parts A and to this end shall causeC of the Project (other than C.1 (b) thereof), with the assistance of: (i) SDR to coordinate Implementation Entities in respect of Parts A.1 (at the federal levelj), A.2 (j) and issue guidelines related to the carrying out A.3 (f) of the ProgramProject, to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely manner; (ii) SUDENE to coordinate Eligible States and Eligible Municipalities in respect of Part A.4 of the Project, and (at ii) under the regional level)terms of the FUNASA Agreement, supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, cause FUNASA to carry out the credit program included in Parts D B and I C.1 (b) of the Project; , with the assistance of: (i) Indigenous Communities in respect of Part B.3 of the Project, and (ivii) EMBRAPA to carry out Eligible States, Eligible Municipalities and OSCs in respect of Part H B.4 of the Project, all with due diligence and efficiency, efficiency and in accordance conformity with appropriate health, economic, technical, administrative, financial financial, social and agricultural practices. environmental practices (bincluding the Environmental Management Actions) Without any limitation or restriction upon any of its other obligations under the Loan Agreement, the Borrower and shall cause the State, under contractual arrangements satisfactory to the Bank, to perform in accordance with the provisions of the Project Agreement, all the respective obligations of the State therein set forth, shall take or provide and cause to be taken all actionprovided, including promptly as needed, the provision of funds, facilities, services and other resources, necessary or appropriate to enable resources required for the State to perform its obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performanceProject. (cb) Without limitation to its obligations under paragraph (a) above, the The Borrower shall: : (i) take all action as shall be required through MOH establish and thereafter maintain, during the implementation of the Project, a coordination unit in SVS (the SVS PCU); and (ii) cause FUNASA to regulateestablish and thereafter maintain, in during the implementation of the Project, a manner coordination unit (the FUNASA PCU), both with functions and responsibilities satisfactory to the Bank, the funding procedures which will ensure that the Executing Entities shall have the funds required for carrying out the at all times headed by a Project available to them coordinator and assisted by staff in a timely manner; adequate numbers, all with qualifications and (ii) provide or cause SUDENE to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h) of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H of the Project and under the State Project, respectively, as provided in each POA. (d) The Borrower shall make the proceeds of the Loan allocated respectively: (i) for purposes of the State Project available to the State; and (ii) for Part H of the Project available to EMBRAPA; under arrangements satisfactory experience acceptable to the Bank. (ec) The BorrowerBorrower shall, through DTNMOH, shall enter into agreements, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions of Schedule 5 to this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program; (B) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject in such manner as to: (i) protect the interest of the Bank and the Borrower; (ii) enable the Borrower to comply with its obligations under this Agreement; and (iii) achieve the purposes of the Project. (f) Unless the Bank shall otherwise agree, the Borrower shall not amend, abrogate or waive the provisions of the MCR applicable to the Program. (g) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement (Termo xx Xxxx o) with SUDENE, on each Eligible State and Eligible Municipality carrying out Surveillance Subprojects under terms and conditions satisfactory to the Bank, not later than six months after substantially in accordance with the date terms of the Amending Model Surveillance Subproject Implementation Agreement, such agreement to define the respective responsibility setting forth, inter alia, in respect of SUDENE and EMBRAPA regarding Part H of the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive or fail to enforce any provision of such agreement.each Surveillance Subproject: (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank Eligible State’s and SUDENE, Eligible Municipality’s obligation: (A) to carry out the Program, Surveillance Subproject and to meet the performance benchmarks set forth in accordance with terms of reference satisfactory the Surveillance Development Plan (PLANVIGI); (B) to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendations. Section 3.02. Except as the Bank shall otherwise agree, procurement of procure the goods, works and services required in accordance with: (I) the requirements of this Agreement; and (II) the contracting procedures applicable to the list of all goods, works and services certified by MOH, including all the ICB Goods and QCBS Consultants (which list shall form part of the Surveillance Subproject Implementation Agreement) and any amendments thereof approved as per the requirements of the Operational Manual; (C) to keep records and accounts for the carrying out of expenditures financed under the Project assigned Surveillance Subproject; (D) to EMBRAPA and to be financed out of utilize the proceeds of the Loan shall be made Surveillance Subproject Transfers and provide information to MOH on the use thereof in accordance with the provisions of Schedule 2 to the Project Agreement. (a) The Borrower shall: (i) furnish to the Bank by October 31 in each year, for its review and comment, the proposed POA and budget for the Project and for the Northeast Rural Development Program for the following fiscal year; (ii) afford the Bank a reasonable opportunity to comment on any modifications the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budget. (b) In order to assist the EMBRAPA in carrying out Part H of the Project, the Borrower shall cause EMBRAPA, under contractual arrangements satisfactory to the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the bank in August 1981. Section 3.04. The Bank and the Borrower hereby agree that the obligations set forth in Sections 9.04, 9.05, 9.06, 9.07, 9.08 the Operational Manual; and (E) to enable the Bank to review the Eligible State’s and 9.09 of Eligible Municipality’s accounts and other information as the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) Bank shall be carried out, or caused to be carried out, by (i) the State reasonably request in respect of the State ProjectSurveillance Subproject and the Epidemiology and Disease Control Program as they relate to the implementation of such Subprojects; (ii) the schedule of disbursements, by XXX’s health fund to the Eligible State’s health fund and byEligible Municipality’s health fund, of the Surveillance Subproject Transfers; (iii) (A) the institutional and technical requirements for the implementation of the Surveillance Subproject and the Epidemiology and Disease Control Program;

Execution of the Project. (a) The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and to this end shall cause: (i) SDR to coordinate (at the federal level) and issue guidelines related to the carrying out of the Program, to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely manner; (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, to carry out the credit program included in Parts D and I of the Project; and (iv) EMBRAPA to carry out Part H objective of the Project, all with due diligence and efficiencyand, in accordance with appropriate administrativeto this end, financial and agricultural practices. (b) Without without any limitation or restriction upon any of its other obligations under the Loan Agreement, the Borrower shall cause the State, under contractual arrangements satisfactory to the Bank, ECTEL to perform in accordance with the provisions of the Project Agreement, all the respective obligations of the State ECTEL therein set forth, shall take or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable the State ECTEL to perform its such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (cb) Without limitation to its obligations under paragraph (a) above, the The Borrower shall: (i) take all action as shall be required to regulate, in jointly with the other Participating Countries, enter into a manner satisfactory to subsidiary loan agreement with ECTEL, under terms and conditions which have been approved by the Bank, the funding procedures which will ensure that the Executing Entities shall have the funds required for carrying out the Project available to them in a timely manner; and (ii) provide or cause SUDENE to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h) of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H of the Project and under the State Project, respectively, as provided in each POA. (d) The Borrower shall make the proceeds of the Loan allocated respectively: (i) for purposes of the State Project available to the State; and (ii) for Part H of the Project available to EMBRAPA; under arrangements satisfactory to the Bank. (e) The Borrower, through DTN, shall enter into agreements, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions of Schedule 5 to this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program; (B) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank governing their respective roles in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of Project and making the proceeds of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; andLoan available to ECTEL. (Fc) The Borrower shall exercise its rights in relation to each Subproject under the Subsidiary Loan Agreement in such manner as to: (i) to protect the interest interests of the Borrower and the Bank and the Borrower; (ii) enable the Borrower to comply with its obligations under this Agreement; and (iii) achieve accomplish the purposes of the Project. (f) Unless Loan, and, except as the Bank shall otherwise agree, the Borrower shall not assign, amend, abrogate or waive the provisions of the MCR applicable to the Program. (g) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs Subsidiary Loan Agreement or any provision thereof. In case of any subsidies related to conflict among the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) Subsidiary Loan Agreement and those of this Agreement and/or the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms Other Loan and conditions satisfactory to the Bank, not later than six months after the date of the Amending Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive or fail to enforce any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENECredit Agreements, the Program, in accordance with terms of reference satisfactory to this Agreement and/or the Bank, Other Loan and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendationsCredit Agreements shall prevail. Section 3.02. Except as the Bank shall otherwise agree, procurement of the goods, works and services required for the carrying out of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan shall be made in accordance with the provisions of Schedule 2 to the Project Agreement. (a) The Borrower shall: (i) furnish to the Bank by October 31 in each year, for its review and comment, the proposed POA and budget for the Project and for the Northeast Rural Development Program for the following fiscal year; (ii) afford the Bank a reasonable opportunity to comment on any modifications the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budget. (b) In order to assist the EMBRAPA in carrying out Part H of the Project, the Borrower shall cause EMBRAPA, under contractual arrangements satisfactory to the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the bank in August 1981. Section 3.04. The Bank and the Borrower hereby agree that the obligations set forth in Sections 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out, or caused out by ECTEL pursuant to be carried out, by (i) the State in respect Section 2.03 of the State Project, and byProject Agreement.

Execution of the Project. (a) The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 Project, and, to this Agreementend, and to this end shall cause: (i) SDR to coordinate (at the federal level) and issue guidelines related to the carrying out of the Program, to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely manner; (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, to carry out the credit program included in Parts D and I of the Project; and (iv) EMBRAPA to carry out Part H of the Project, all with due diligence and efficiency, in accordance with appropriate administrative, financial and agricultural practices. (b) Without without any limitation or restriction upon any of its other obligations under the Loan Agreement, the Borrower shall cause each of the StateWater Companies to perform, under contractual arrangements satisfactory to the Bank, to perform in accordance with the provisions of the their respective Project AgreementAgreements, all the respective obligations of the State Water Companies therein set forth, shall take or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable each of the State Water Companies to perform its such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (cb) Without limitation to its obligations under upon the provisions of paragraph (a) aboveof this Section and except as the Borrower and the Bank shall otherwise agree, the Borrower shall: (i) take all action as shall be required to regulate, in a manner satisfactory to cause the Bank, the funding procedures which will ensure that the Executing Entities shall have the funds required for carrying out the Project available to them in a timely manner; and (ii) provide or cause SUDENE to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h) of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H of the Project and under the State Project, respectively, as provided in each POA. (d) The Borrower shall make the proceeds of the Loan allocated respectivelyWater Companies to: (i) for purposes carry out their obligations in accordance with the provisions of this Agreement and the State applicable Project available to the StateAgreements; and and (ii) for Part H of the Project available to EMBRAPA; under arrangements satisfactory to the Bank. (e) The Borrower, through DTN, shall enter into agreements, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of implement the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions of Schedule 5 to this Agreement, Environmental Management Plan; the lending policies and procedures set forth in Land Acquisition Plan; the MCR applicable to the Program; (B) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project Procurement Plan; and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the BankResettlement Policy Framework, through DTN, at regular intervals, all such information and except as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject in such manner as to: (i) protect the interest of the Bank and the Borrower; (ii) enable the Borrower to comply with its obligations under this Agreement; and (iii) achieve the purposes of the Project. (f) Unless the Bank shall otherwise agree, the Borrower shall not amend, abrogate amend or waive any provision thereof if, in the provisions opinion of the MCR applicable to Bank, such amendment or waiver may materially and adversely affect the Programimplementation of the Project. (ga) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms and conditions satisfactory to the Bank, not later than six months after the date of the Amending Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive or fail to enforce any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendations. Section 3.02. Except as the Bank shall otherwise agree, procurement of the goods, works works, and services consultants’ services, required for the carrying out of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan shall be made governed by the provisions of Schedule 1 to the Project Agreements, as such provisions may be further elaborated in the Procurement Plan. (b) The Borrower shall, or shall cause the Water Companies to, update the Procurement Plan in accordance with the provisions terms of Schedule 2 reference acceptable to the Project AgreementBank, and furnish such update to the Bank not later than twelve (12) months after the date of the preceding Procurement Plan, for the Bank’s approval. (a) The Borrower shallshall relend the proceeds of the Loan to the Guilan Water Company under a subsidiary loan agreement to be entered into between the Borrower and the Guilan Water Company, under financial terms and conditions identical to those governing the Loan. (b) The Borrower shall relend the proceeds of the Loan to the Mazandaran Water Company under a subsidiary loan agreement to be entered into between the Borrower and the Mazandaran Water Company, under financial terms and conditions identical to those governing the Loan. (a) Without limitation upon the provisions of Section 3.03(a) above, the Borrower shall make available, through the Borrower’s contribution, to the Guilan Water Company: (i) the proceeds of the Loan; and (ii) such amounts as may be needed to finance the Borrower’s contribution to expenditures under Parts B and D of the Project. (b) Without limitation upon the provisions of Section 3.03(b) above, the Borrower shall make available through the Borrower’s contribution, to the Mazandaran Water Company: (i) the proceeds of the Loan; and, (ii) such amounts as may be needed to finance the Borrower’s contribution to expenditures under Parts F, H and I of the Project. Section 3.05. The Borrower shall exercise its rights under the Subsidiary Loan Agreements in such manner as to protect the interests of the Borrower and the Bank and to accomplish the purposes of the Loan, and, except as the Bank shall otherwise agree, the Borrower shall not assign, amend, abrogate or waive either Subsidiary Loan Agreement or any provision thereof. Section 3.06. For the purposes of Section 9.07 of the General Conditions and without limitation thereto, the Borrower shall: (a) prepare, on the basis of guidelines acceptable to the Bank, and furnish to the Bank by October 31 in each yearnot later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Bank, for its review and comment, the proposed POA and budget a plan for the Project and for continued achievement of the Northeast Rural Development Program for objectives of the following fiscal yearProject; and, (iib) afford the Bank a reasonable opportunity to comment on any modifications exchange views with the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budget. (b) In order to assist the EMBRAPA in carrying out Part H of the Project, the Borrower shall cause EMBRAPA, under contractual arrangements satisfactory to the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the bank in August 1981said plan. Section 3.043.07. The Bank and the Borrower hereby agree that the obligations set forth in Sections 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out, or caused to be carried out, out by (i) the State in respect each of the State Project, and byWater Companies pursuant to Section 2.03 of the respective Project Agreement.

Execution of the Project. (a) The Borrower declares its commitment to the objectives objective of the Project as set forth in Schedule 2 to this Agreement, and to this end shall causeend, shall: (i) SDR to coordinate (at the federal level) and issue guidelines related to the carrying out of the Program, to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely manner; (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, to carry out the credit program included in Parts D and I of the Project; and (iv) EMBRAPA cause to carry out Part H of be carried out, the Project, all through the Project Executing Agencies, with due diligence and efficiency, and in accordance conformity with appropriate administrative, financial financial, and agricultural health practices, and procurement, and environmental standards; and (ii) provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without any limitation upon the provisions of paragraph (a) of this Section and except as the Borrower and the Association shall otherwise agree, the Borrower shall carry out and cause to be carried out, the Project in accordance with the Implementation Program set forth in Schedule 4 to this Agreement. (c) Without limitation or restriction upon any of its other obligations under this Agreement, the Loan Borrower, through MOHFW, shall cause each Project State and its respective SIS to: (i) execute and furnish to MOHFW a Letter of Undertaking in form and substance satisfactory to the Association; and (ii) carry out their respective activities under the Project in accordance with the relevant Letter of Undertaking and the provisions of this Agreement. (d) Without limitation or restriction upon any of its obligations under this Agreement, the Borrower shall cause the State, under contractual arrangements satisfactory to the Bank, to perform in accordance with the provisions of the Project Agreement, take all the respective obligations of the State therein set forth, shall take or cause to be taken all actionactions, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable the each Project State and its respective SIS to perform its obligations, all of their respective obligations set forth in this Agreement and in the relevant Letter of Undertaking. The Borrower shall not take or take, nor permit to be taken taken, any action which would prevent or interfere with such performance. (c) Without limitation to its obligations under paragraph (a) above, the Borrower shall: (i) take all action as shall be required to regulate, in a manner satisfactory to the Bank, the funding procedures which will ensure that the Executing Entities shall have the funds required for carrying out the Project available to them in a timely manner; and (ii) provide or cause SUDENE to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h) of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H of the Project and under the State Project, respectively, as provided in each POA. (de) The Borrower shall make the proceeds of the Loan allocated respectively: (i) for purposes of the State Project available to the State; establish and (ii) for Part H of the Project available to EMBRAPA; under arrangements satisfactory to the Bank. (e) The Borrower, through DTN, shall enter into agreementsimplement arrangements, satisfactory to the BankAssociation, with each of the Participating Banks, providing to make available for the Participating Bank to: (A) on-lend the proceeds benefit of the Loan allocated for purposes of the credit programs included in Parts D each Project State and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions of Schedule 5 to this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program; (B) allocate on its respective SIS a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure portion of the proceeds of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject in such manner as to: (i) protect the interest of the Bank and the Borrower; (ii) enable the Borrower to comply with its obligations Credit for activities under this Agreement; and (iii) achieve the purposes of the Project. (fa) Unless the Bank shall otherwise agree, the Borrower shall not amend, abrogate or waive the provisions of the MCR applicable to the Program. (g) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms and conditions satisfactory to the Bank, not later than six months after the date of the Amending Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive or fail to enforce any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendations. Section 3.02. Except as the Bank Association shall otherwise agree, procurement of the goods, works and services required for the carrying out of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan Credit, shall be made in accordance with governed by the provisions of Schedule 2 3 to this Agreement, as said provisions shall be further elaborated in the Project Agreement. (a) The Borrower shall: (i) furnish to the Bank by October 31 in each year, for its review and comment, the proposed POA and budget for the Project and for the Northeast Rural Development Program for the following fiscal year; (ii) afford the Bank a reasonable opportunity to comment on any modifications the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budgetProcurement Plan. (b) In order The Borrower, through MOHFW, shall update the Procurement Plan in accordance with guidelines acceptable to assist the EMBRAPA in carrying out Part H Association, and furnish such update to the Association not later than twelve (12) months after the date of the Projectpreceding Procurement Plan, for the Association’s approval. Section 3.03. For the purposes of Section 9.06 of the General Conditions and without limitation thereto, the Borrower shall cause EMBRAPAshall: (a) prepare, under contractual arrangements satisfactory to the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis of guidelines acceptable to the "Guidelines Association, and furnish to the Association not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Use Borrower and the Association, a report on the implementation of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by Project; and (b) afford the bank in August 1981Association a reasonable opportunity to exchange views with the Borrower on said reports. Section 3.04. The Bank Borrower and the Borrower Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07, 9.07 and 9.08 and 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out, or caused to be carried out, by (i) the State in respect of the Project shall be carried out by each Project State Project, and byits respective SIS pursuant to the terms of their respective Letters of Undertaking.

Execution of the Project. (a) The Borrower declares its commitment to the objectives objective of the Project as set forth in Schedule 2 to this Agreement, and and, to this end shall causeshall: (i) SDR to coordinate (at the federal level) and issue guidelines related to the carrying carry out Part E.2 of the ProgramProject, to propose annual budgets in consultation with the NCSC, as needed (for such Program and to take all actions necessary to ensure the availability Part E.2 (a) of the counterpart funds for the carrying out of such Program in a timely mannerProject); (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) cause the Participating Banks, through Participating Agreements, States to carry out the credit program included in Parts D and I of their respective activities under the Project; and (iv) EMBRAPA to carry out Part H of , including the ProjectSubprojects, all with due diligence and efficiency, efficiency and in accordance conformity with appropriate administrative, financial banking, financial, technical, auditing, participatory, environmental and agricultural social standards and practices (including gender, youth and indigenous sensitive practices. ), on the part of both the Borrower and the Participating States; and (biii) Without any limitation provide, or restriction upon any of its other obligations under cause the Loan AgreementParticipating States to provide, in a timely manner and as needed, the Borrower shall cause the State, under contractual arrangements satisfactory to the Bank, to perform in accordance with the provisions of the Project Agreement, all the respective obligations of the State therein set forth, shall take or cause to be taken all action, including the provision of funds, facilities, services and other resourcesresources required for the Project, necessary or appropriate including the Subprojects, all with due regard to enable the provisions of the Normatividad and the State to perform its obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performanceOrganic Law of the Participating States. (cb) Without limitation to its obligations under upon the provisions of paragraph (a) aboveof this Section, and except as the Borrower and the Bank shall otherwise agree, the Borrower shall: (i) take all action as shall be required to regulate, in a manner satisfactory to carry out Part E.2 of the Bank, the funding procedures which will ensure that the Executing Entities shall have the funds required for carrying out the Project available to them in a timely mannerProject; and (ii) provide or cause SUDENE the Participating States to provide advances carry out their respective activities under Project, including the Subprojects, all in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by accordance with the State, as referred to in Section 2.01 (h) provisions of the Project Implementation Letter, the Operational Manual and the provisions set forth in Schedule 5 to this Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H of the Project and under the State Project, respectively, as provided in each POA. (d) The Section 3.02. Without limitation upon the provisions of Section 3.01 of this Agreement, the Borrower shall make the proceeds of the Loan allocated respectivelyshall: (ia) for purposes of the State Project available to the State; and (ii) for Part H of the Project available to EMBRAPA; under arrangements satisfactory to the Bank. (e) The Borrower, through DTN, shall enter into agreements, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of to the credit programs included in Parts D and I of Participating States under the Project in accordance with: Agreement; and 1. the particular terms and conditions of an agreement (the Credit Agreement), to be entered into between the Borrower and a Participating State, pursuant to contractual provisions, which shall have been approved by the Bank as set forth in Schedule 5 to this the Operational Manual, including, inter alia, the terms detailed in Part A. 2. to the extent that they are compatible with the provisions (d) (i) of Schedule 5 to this Agreement; and (b) cause each Participating State to transfer to the Judiciary the proceeds referred to in paragraph (a) of this Section under an agreement (the Transfer Agreement) to be entered into between the Participating State and the Judiciary, pursuant to contractual provisions, which shall have been approved by the lending policies and procedures Bank, reflecting the Normatividad, including, inter alia the provisions set forth in the MCR applicable Operational Manual, and the terms detailed in Part A.2. (d) (ii) of Schedule 5 to the Program;this Agreement. (Bc) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject in such manner as toThe Borrower: (i) protect the interest of the Bank shall exercise its rights and the Borrower; (ii) enable the Borrower to comply with its obligations under this Agreement; the Credit Agreements in such manner as to protect the interests of the Borrower and (iii) achieve the Bank, and to accomplish the purposes of the Project. (f) Unless , including the Subprojects, and, except as the Bank shall otherwise agree, the Borrower shall not amendassign, abrogate or waive the provisions of the MCR applicable to the Program. (g) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms and conditions satisfactory to the Bank, not later than six months after the date of the Amending Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive or fail to enforce any provision of such agreement. the Credit Agreements; and (iii) The Borrower shall, by not later than June 30, 1993, review, together shall cause the Participating States to exercise their rights and comply with their respective obligations under the Bank Credit Agreements and SUDENE, the ProgramTransfer Agreements, in accordance with terms such manner as to protect the interests of reference satisfactory to the Borrower and the Bank, and shallto accomplish the purposes of the Project, immediately thereafterincluding the Subprojects, if recommended by such reviewand, amend except as the ProgramBank shall otherwise agree, taking into account such recommendationsshall cause the Participating States not to assign, amend, abrogate, waive or fail to enforce the respective Credit Agreements and the Transfer Agreements. (d) The Borrower shall promptly notify the Bank in case of an event of noncompliance by any of the Participating States with the terms and conditions of its respective Credit Agreement or Transfer Agreement. (e) In case of any conflict between the terms of the agreements referred to in paragraphs (a) and (b) of this Section 3.02. and those of this Agreement, the terms of this Agreement shall prevail. (a) Except as the Bank shall otherwise agree, procurement of the goods, works and consultants’ services required for the carrying out of Project, under the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan Credit Program, shall be made in accordance with governed by the provisions of Schedule 2 4 to this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Borrower shall, in close consultation with the Participating States, update the Procurement Plan in accordance with terms of reference acceptable to the Project AgreementBank, and furnish such update to the Bank not later than twelve (12) months after the date of the preceding Procurement Plan, for the Bank’s approval. Section 3.04. For the purposes of Section 9.07 of the General Conditions and without limitation thereto, the Borrower shall: (a) The Borrower shall: (i) prepare, on the basis of guidelines acceptable to the Bank, and furnish to the Bank by October 31 in each yearnot later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Bank, for its review and commenta plan designed to ensure the sustainability of the Project, including the proposed POA and budget for the Project and for the Northeast Rural Development Program for the following fiscal yearSubprojects; and (iib) afford the Bank a reasonable opportunity to comment on any modifications exchange views with the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budgetsaid plan. (b) In order to assist the EMBRAPA in carrying out Part H of the Project, the Borrower shall cause EMBRAPA, under contractual arrangements satisfactory to the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the bank in August 1981. Section 3.04. The Bank and the Borrower hereby agree that the obligations set forth in Sections 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out, or caused to be carried out, by (i) the State in respect of the State Project, and by

Execution of the Project. (a) Section 3.01. The Borrower declares its commitment to the objectives objective of the Project as set forth in Schedule 2 to this Agreement, and and, to this end shall cause: end, shall: (a) cause (i) SDR to coordinate (at the federal level) and issue guidelines related to the carrying out of the Program, to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely manner; (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, CONDEPE/FIDEM to carry out Part A of the credit program included Project, the Pilot Subprojects, and the activities under the Borrower’s responsibility in Parts D and I E of the Project; Project (i.e. the activities under such Parts D and E not assigned to Olinda and Recife pursuant to Section 2.01 of the Olinda Project Agreement and the Recife Project Agreement), and (ivii) EMBRAPA COMPESA to carry out Part H B of the Project, all with due diligence and efficiency, efficiency and in accordance conformity with appropriate administrative, financial financial, environmental, and agricultural urbanization practices., and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project; and (b) Without any without limitation or restriction upon any of its other obligations under the Loan this Agreement, the Borrower shall cause the State, under contractual arrangements satisfactory to the Bank, Recife and Olinda to perform all their respective obligations set forth in accordance with the provisions of Recife Project Agreement and the Olinda Project Agreement, all the respective obligations of the State therein set forth, shall take or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable the State Municipalities to perform its such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (c) Without limitation to its obligations under paragraph (a) above, the Borrower shall: (i) take all action as shall be required to regulate, in a manner satisfactory to the Bank, the funding procedures which will ensure that the Executing Entities shall have the funds required for carrying out the Project available to them in a timely manner; and (ii) provide or cause SUDENE to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h) of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H of the Project and under the State Project, respectively, as provided in each POA. (d) The Borrower shall make the proceeds of the Loan allocated respectively: (i) for purposes of the State Project available to the State; and (ii) for Part H of the Project available to EMBRAPA; under arrangements satisfactory to the Bank. (e) The Borrower, through DTN, shall enter into agreements, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions of Schedule 5 to this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program; (B) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included Project as provided in Part I of the Projectthis Agreement, the Subloans, the Beneficiaries, the expenditure of the proceeds of the Loan, the goods and services financed out of such proceeds Recife Project Agreement and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject in such manner as to: (i) protect the interest of the Bank and the Borrower; (ii) enable the Borrower to comply with its obligations under this Olinda Project Agreement; and (iii) achieve the purposes of the Project. (f) Unless the Bank shall otherwise agree, the Borrower shall not amend, abrogate or waive the provisions of the MCR applicable to the Program. (g) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms and conditions satisfactory to the Bank, not later than six months after the date of the Amending Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive or fail to enforce any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendations. Section 3.02. (a) Except as the Bank shall otherwise agree, procurement of the goods, works and consultants’ services required for the carrying out of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan shall be made in accordance with governed by the provisions of Schedule 2 4 to the Project this Agreement. (a) The Borrower shall: (i) furnish to the Bank by October 31 in each year, for its review and comment, the proposed POA and budget for the Project and for the Northeast Rural Development Program for the following fiscal year; (ii) afford the Bank a reasonable opportunity to comment on any modifications the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budget. (b) In order to assist the EMBRAPA in carrying out Part H of the Project, the Borrower shall cause EMBRAPA, under contractual arrangements satisfactory to the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the bank in August 1981. Section 3.04. The Bank and the Borrower hereby agree that the obligations set forth in Sections 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out, or caused to be carried out, by (i) the State in respect of the State Project, and by

Execution of the Project. (a) The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 and, to this Agreement, and to this end shall causeend: (i) SDR to coordinate shall carry out, respectively: (at the federal levelA) and issue guidelines related to the carrying out Part D of the Program, to propose annual budgets for such Program Project through the MFE; and to take all actions necessary to ensure the availability (B) Part E of the counterpart funds Project through the NERC, all with due diligence and efficiency and in conformity with appropriate administrative, economic, energy, engineering, environmental and technical practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the carrying out of such Program in a timely manner; (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, to carry out the credit program included in Parts D and I E of the Project; and (ivii) EMBRAPA to carry out Part H of the Project, all with due diligence and efficiency, in accordance with appropriate administrative, financial and agricultural practices. (b) Without without any limitation or restriction upon any of its other obligations under the Loan Agreement, the Borrower shall cause the State, under contractual arrangements satisfactory to the Bank, UHE to perform in accordance with the provisions of the Project Agreement, Agreement all the respective obligations of the State UHE therein set forth, shall take or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable the State UHE to perform its such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (cb) Without limitation to its obligations under upon the provisions of paragraph (a) aboveof this Section and except as the Borrower and the Bank shall otherwise agree, the Borrower shall: (i) take all action as shall be required to regulate, in a manner satisfactory to the Bank, the funding procedures which will ensure that the Executing Entities shall have the funds required for carrying carry out the Project available to them in a timely manner; Parts D and (ii) provide or cause SUDENE to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h) E of the Project in accordance with the Implementation Program set forth in Schedule 5 to this Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H of the Project and under the State Project, respectively, as provided in each POA. (dc) The Borrower shall make the proceeds of the Loan allocated respectively: from time to time to Categories (i1) for purposes of the State Project and (2)(a) available to UHE under a Subsidiary Loan Agreement to be entered into between the State; Borrower and (ii) for Part H of the Project available to EMBRAPA; UHE, under arrangements satisfactory to the Bank. (e) The Borrower, through DTN, shall enter into agreements, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth which shall have been approved by the Bank which shall include those stipulated in Schedule 5 the Annex to this 2. to the extent that they are compatible with the provisions of Schedule 5 to this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program;. (Bd) allocate on a priority basis, adequate funds for The Borrower shall exercise its rights under the financing of working capital (custeio) needs Subsidiary Loan Agreement in such manner as to protect the interests of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project Borrower and the preceding month’s lending performance of Bank and to accomplish the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds purposes of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject in such manner , except as to: (i) protect the interest of the Bank and the Borrower; (ii) enable the Borrower to comply with its obligations under this Agreement; and (iii) achieve the purposes of the Project. (f) Unless the Bank shall otherwise agree, the Borrower shall not assign, amend, abrogate or waive the provisions of the MCR applicable to the ProgramSubsidiary Loan Agreement or any provision thereof. (ga) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms and conditions satisfactory to the Bank, not later than six months after the date of the Amending Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive or fail to enforce any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendations. Section 3.02. Except as the Bank shall otherwise agree, the procurement of the goods, works goods and services required for the carrying out Parts D and E of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan shall be made in accordance with governed by the provisions of Schedule 2 4 to this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Borrower shall update the Procurement Plan and furnish such update to the Project AgreementBank not later than twelve (12) months after the date of the preceding Procurement Plan, for the Bank’s approval. Section 3.03. For the purposes of Section 9.07 of the General Conditions and without limitation thereto, the Borrower shall: (a) The Borrower shall: (i) prepare, on the basis of guidelines acceptable to the Bank, and furnish to the Bank by October 31 in each yearnot later than six (6) months before the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Bank, for its review and comment, the proposed POA and budget a plan for the Project future operation of Parts D and for E of the Northeast Rural Development Program for the following fiscal yearProject; and (iib) afford the Bank a reasonable opportunity to comment on any modifications exchange views with the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budget. (b) In order to assist the EMBRAPA in carrying out Part H of the Project, the Borrower shall cause EMBRAPA, under contractual arrangements satisfactory to the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the bank in August 1981said plan. Section 3.04. The Bank and the Borrower hereby agree that the obligations set forth in Sections 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of Parts A, B and C of the Project shall be carried out, or caused out by UHE pursuant to be carried out, by (i) the State in respect Section 2.03 of the State Project, and byProject Agreement.

Execution of the Project. (a) The Borrower Recipient declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and and, to this end end, shall cause: (i) SDR to coordinate (at cause the federal level) and issue guidelines related to the carrying out of the Program, to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely manner; (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, Palestinian Authority to carry out the credit program included in Parts D and I of the Project; and (iv) EMBRAPA to carry out Part H of the Project, all Project through PMU with due diligence and efficiency, in accordance conformity with appropriate administrative, financial financial, engineering, environmental and agricultural practicespublic utility practices and shall cause the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without any limitation or restriction upon any the provisions of its other obligations under paragraph (a) of this Section and except as the Loan AgreementRecipient and the Administrator shall otherwise agree, the Borrower Recipient shall cause the State, under contractual arrangements satisfactory Palestinian Authority to carry out the Project through PMU in accordance with the provisions of the Master Schedule and the Implementation Program set forth in Schedule 4 to this Agreement. (c) The Recipient shall make the proceeds of the Grant available to the Bank, Palestinian Authority under a subsidiary agreement to be entered into between the Recipient and the Palestinian Authority under terms and conditions which shall have been approved by the Administrator. (d) The Recipient shall cause the Palestinian Authority: (i) to perform in accordance with the provisions of the Project Agreement, Subsidiary Agreement all of the respective obligations of the State Palestinian Authority therein set forth, shall ; (ii) to take or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out of the Project; and (iii) not to enable the State to perform its obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (c) Without limitation to its obligations under paragraph (a) above, the Borrower shall: (i) take all action as shall be required to regulate, in a manner satisfactory to the Bank, the funding procedures which will ensure that the Executing Entities shall have the funds required for carrying out the Project available to them in a timely manner; and (ii) provide or cause SUDENE to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h) of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H of the Project and under the State Project, respectively, as provided in each POA. (d) The Borrower shall make the proceeds of the Loan allocated respectively: (i) for purposes of the State Project available to the State; and (ii) for Part H of the Project available to EMBRAPA; under arrangements satisfactory to the Bank. (e) The Borrower, through DTN, Recipient shall enter into agreements, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions of Schedule 5 to this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program; (B) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject under the Subsidiary Agreement in such manner as to: (i) to protect the interest interests of the Bank Recipient, the Palestinian Authority and the Borrower; (ii) enable the Borrower Administrator and to comply with its obligations under this Agreement; and (iii) achieve accomplish the purposes of the Project. (f) Unless Grant, and, except as the Bank Administrator shall otherwise agree, the Borrower Recipient shall not assign, amend, abrogate or waive the provisions of the MCR applicable to the ProgramSubsidiary Agreement or any provision thereof. (ga) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms and conditions satisfactory to the Bank, not later than six months after the date of the Amending Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive or fail to enforce any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendations. Section 3.02. Except as the Bank Administrator shall otherwise agree, procurement of the goods, works and consultants’ services required for the carrying out of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan Grant shall be made in accordance with governed by the provisions of Schedule 2 3 to this Agreement, as said provisions may be further elaborated in the Project Agreement. (a) The Borrower shall: (i) furnish to the Bank by October 31 in each year, for its review and comment, the proposed POA and budget for the Project and for the Northeast Rural Development Program for the following fiscal year; (ii) afford the Bank a reasonable opportunity to comment on any modifications the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budgetProcurement Plan. (b) In order to assist The Recipient shall update the EMBRAPA in carrying out Part H of the Project, the Borrower shall cause EMBRAPA, under contractual arrangements satisfactory to the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected Procurement Plan in accordance with principles and procedures satisfactory guidelines acceptable to the Bank Administrator, and furnish such update to the Administrator not later than twelve (12) months after the date of the preceding Procurement Plan, for the Administrator’s approval. Section 3.03. For the purposes of Section 8.06 of the General Conditions and without limitation thereto, the Recipient, through the Palestinian Authority, shall cause PMU to: (a) prepare, on the basis of guidelines acceptable to the "Guidelines Administrator, and furnish to the Administrator not later than six (6) months after the Closing Date, or such later date as may be agreed for this purpose between the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the bank in August 1981. Section 3.04. The Bank Palestinian Authority and the Borrower hereby agree that Administrator, a plan to ensure the obligations set forth in Sections 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09 continued achievement of the General Conditions Project’s objectives; and (relating b) afford the Administrator a reasonable opportunity to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out, or caused to be carried out, by (i) exchange views with the State in respect of the State Project, and byPalestinian Authority on said plan.

Execution of the Project. (a) The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and and, to this end shall cause: (i) SDR to coordinate (at the federal level) and issue guidelines related to the carrying out of the Programend, to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely manner; (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, to carry out the credit program included in Parts D and I of the Project; and (iv) EMBRAPA to carry out Part H of the Project, all with due diligence and efficiency, in accordance with appropriate administrative, financial and agricultural practices. (b) Without without any limitation or restriction upon any of its other obligations under the Loan Development Credit Agreement, shall carry out the Borrower Project with due diligence and efficiency, and in conformity with appropriate engineering, environmental and administrative practices, and shall cause the StateCWSA to perform, under contractual arrangements satisfactory to the Bank, to perform in accordance with the provisions of the CWSA Project Agreement, all the respective obligations of the State CWSA therein set forth, shall take or cause to be taken all action, including the provision of funds, facilities, services services, and other resources, resources necessary or appropriate to enable the State CWSA to perform its such obligations, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (cb) Without limitation The Borrower shall make part of the proceeds of the Credit, allocated from time to its obligations under paragraph (a) above, the Borrower shall: (i) take all action as shall be required to regulate, in a manner satisfactory time to the BankDAs and local communities, the funding procedures which will ensure that the Executing Entities shall have the funds required for carrying out the Project available under Grant Agreements to them in be entered into between CWSA and each DA, or between a timely manner; DA and (ii) provide or cause SUDENE to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h) of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H of the Project and under the State Projectlocal communities, respectively, under conditions which shall have been approved by the Association, which shall include those set forth in paragraphs 7 and 8 of Schedule 4 to this Agreement. (c) CWSA, DAs, and legally constituted local community groups shall exercise their respective rights under each Grant Agreement in such manner as provided in each POAto protect the interests of CWSA, the DAs, legally constituted local community groups and the Association and to accomplish the purposes of the Credit, and except as the Association shall otherwise agree, the CWSA, the DAs, and legally constituted local community groups shall not assign, amend, abrogate or waive the Grant Agreements or any provision thereof. (d) The Borrower shall make available a portion of the proceeds of the Loan allocated respectively: Credit to CWSA as a grant under a Subsidiary Grant Agreement to be entered into between the Borrower and CWSA (ithe Subsidiary Grant Agreement) for purposes of under such terms and conditions as shall have been approved by the State Project available to the State; and (ii) for Part H of the Project available to EMBRAPA; under arrangements satisfactory to the BankAssociation. (e) The Borrower, through DTN, Borrower shall enter into agreements, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions of Schedule 5 to this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program; (B) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject under the Subsidiary Grant Agreement in such manner as to: (i) to protect the interest interests of the Bank Borrower and the Borrower; (ii) enable the Borrower Association and to comply with its obligations under this Agreement; and (iii) achieve accomplish the purposes of the Project. (f) Unless Credit, and, except as the Bank Association shall otherwise agree, the Borrower shall not assign, amend, abrogate or waive the provisions of the MCR applicable to the ProgramSubsidiary Grant Agreement or any provision thereof. (gf) Without limitation to its other obligations under upon the provisions of paragraph (a) of this SectionSection and except as the Borrower and the Association shall otherwise agree, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms and conditions satisfactory to the Bank, not later than six months after the date of the Amending Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of carry out the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive or fail to enforce any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory the Implementation Program set forth in Schedule 4 to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendationsthis Agreement. Section 3.02. Except as the Bank Association shall otherwise agree, procurement of the goods, works and consultants’ services required for the carrying out of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan Credit shall be made governed by the provisions of Schedule 3 to this Agreement. Section 3.03. The Borrower shall, prior to commencing work on any community infrastructure and prior to any displacement of any Affected Persons from such works: (a) undertake the acquisition of all necessary land and other property, compensation therefor and resettlement for such works in accordance with the provisions of Schedule 2 to principles and institutional procedures established in the Project Agreement. (a) The Borrower shall: (i) furnish to the Bank by October 31 in each year, for its review and comment, the proposed POA and budget for the Project and for the Northeast Rural Development Program for the following fiscal year; (ii) afford the Bank a reasonable opportunity to comment on any modifications the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budget.Resettlement Policy; (b) In order ensure that Affected Persons from such works shall be compensated, resettled and rehabilitated in accordance with the Resettlement Policy; (c) for provision of water and sanitation infrastructure involving resettlement of more than 20 persons, prepare and furnish to assist the EMBRAPA Association, a detailed resettlement action plan acceptable to the Association documenting the implementation arrangements for resettlement arising from such works, including compensation, relocation and rehabilitation of Affected Persons; and (d) complete the implementation of such resettlement action plan in carrying out Part H of the Project, the Borrower shall cause EMBRAPA, under contractual arrangements a manner satisfactory to the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the bank in August 1981Association. Section 3.04. The Bank and For the Borrower hereby agree that the obligations set forth in Sections 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09 purposes of Section 9.06 of the General Conditions and without limitation thereto, the Borrower shall: (relating a) prepare, on the basis of guidelines acceptable to insurancethe Association, use of goods and servicesfurnish to the Association not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Association, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out, or caused to be carried out, by (i) a plan for the State in respect future operation of the State Project, and by; and (b) afford the Association a reasonable opportunity to exchange views with the Borrower on said plan.

Execution of the Project. (a) The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and and, to this end shall cause: (i) SDR to coordinate (at the federal level) and issue guidelines related to the carrying out of the Programend, to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely manner; (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, to carry out the credit program included in Parts D and I of the Project; and (iv) EMBRAPA to carry out Part H of the Project, all with due diligence and efficiency, in accordance with appropriate administrative, financial and agricultural practices. (b) Without without any limitation or restriction upon any of its other obligations under the Loan this Agreement, shall cause, through MSES, the Borrower shall cause the State, under contractual arrangements satisfactory to the Bank, Project Agencies to perform each in accordance with the provisions of the their respective Project AgreementAgreements, all the respective obligations of the State Project Agreements therein set forth, shall take or and cause to be taken all action, including the provision of funds (which shall include counterpart funds), facilities, services and other resources, necessary or appropriate to enable the State Project Agencies to perform its such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance, or which would limit in any respect organizational, managerial or financial autonomy of Project Agencies. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Borrower and the Bank shall otherwise agree, the Borrower shall, through MSES, carry out the Project and cause each Project Agency to carry out its respective Part in accordance with the Implementation Program set forth in Schedule 5 to this Agreement, and PIP. (c) Without limitation The Borrower, through MSES, shall make part of the proceeds of the Loan available to its obligations the Project Agencies under paragraph (a) aboveseparate Subsidiary Finance Agreements to be entered into between the Borrower and each of the Project Agencies, or eligible RDIs, under terms and conditions which shall have been approved by the Bank and which shall include, inter alia, the Borrower shallfollowing conditions: (i) take all action as the loan proceeds shall be required to regulate, in a manner satisfactory to the Bank, the funding procedures which will ensure that the Executing Entities shall have the funds required for carrying out the Project made available to them in BI and other RDIs’– 65% on a timely mannergrant basis and 35% as a loan of the total allocation to BI or an eligible RDI, respectively; and (ii) provide or cause SUDENE the loan proceeds shall be made available to provide advances in Cruzeiros into: (A) an account opened BICRO -- 50% on a grant basis and operated by EMBRAPA; and (B) an account opened and operated by the State, 50% as referred to in Section 2.01 (h) a loan of the Project Agreement; all in a timely manner and in sufficient amounts amount allocated for the purpose of financing the activities under Part H Parts B.2 and B.3 of the Project Project; and 100% on a grant basis of the amount allocated for financing activities under Parts B.1, B.4 and B.5 of the State Project, respectively, as provided in each POA. (d) The Borrower Borrower, shall make exercise its rights under the proceeds Subsidiary Finance Agreements in such manner as to protect the interests of the Loan allocated respectively: (i) for purposes of the State Project available to the State; and (ii) for Part H of the Project available to EMBRAPA; under arrangements satisfactory to the Bank. (e) The Borrower, through DTN, shall enter into agreements, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions of Schedule 5 to this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program; (B) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project Borrower and the preceding month’s lending performance of Bank and to accomplish the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds purposes of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject in such manner , except as to: (i) protect the interest of the Bank and the Borrower; (ii) enable the Borrower to comply with its obligations under this Agreement; and (iii) achieve the purposes of the Project. (f) Unless the Bank shall otherwise agree, the Borrower shall not assign, amend, abrogate or waive the provisions of the MCR applicable to the ProgramSubsidiary Finance Agreements or any provision thereof. (ga) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms and conditions satisfactory to the Bank, not later than six months after the date of the Amending Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive or fail to enforce any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendations. Section 3.02. Except as the Bank shall otherwise agree, procurement of the goods, works goods and consultants’ services required for the carrying out of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan shall be made in accordance with governed by the provisions of Schedule 2 4 to this Agreement, as said provisions may be further elaborated in the Procurement Plan; and (b) The Borrower shall, through MSES, update the Procurement Plan in accordance with guidelines acceptable to the Project AgreementBank, and furnish such update to the Bank not later than twelve (12) months after the date of the preceding Procurement Plan, for the Bank’s approval. Section 3.03. For the purposes of Section 9.07 of the General Conditions and without limitation thereto, the Borrower shall: (a) The Borrower shall: (i) prepare, on the basis of guidelines acceptable to the Bank, and furnish to the Bank by October 31 in each yearnot later than two (2) months before the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Bank, for its review and comment, the proposed POA and budget a plan for the Project and for future operation of the Northeast Rural Development Program for the following fiscal yearProject; and (iib) afford the Bank a reasonable opportunity to comment on any modifications exchange views with the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budget. (b) In order to assist the EMBRAPA in carrying out Part H of the Project, the Borrower shall cause EMBRAPA, under contractual arrangements satisfactory to the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the bank in August 1981said plan. Section 3.04. The Bank and the Borrower hereby agree that the obligations set forth in Sections 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out, or caused to be carried out, by (i) the State in respect of the State Project, and byProject shall be carried out by the Project Agencies pursuant to Section 2.03 of the Project Agreements.

Execution of the Project. (a) The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and and, to this end end: shall cause: (i) SDR to coordinate (at the federal level) and issue guidelines related to the carrying out of the Program, to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely manner; (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, to carry out the credit program included in Parts D and I of the Project; and (iv) EMBRAPA to carry out Part H A of the ProjectProject through the Project Provinces, all with due diligence and efficiency, in accordance with appropriate administrative, financial Part E of the Project through the Ministry of Industry; and agricultural practices. (b) Without without any limitation or restriction upon any of its other obligations under the Loan Development Credit Agreement, the Borrower shall cause EVN together with each of PC1, PC2 and PC3 to carry out Parts B, C and D of the StateProject, under contractual arrangements satisfactory to the Bankrespectively; and shall cause each of EVN, PC1, PC2 and PC3 to perform in accordance with the provisions of the Project Agreement, Agreement all the of its respective obligations of the State therein set forth; all with due diligence and efficiency and in conformity with appropriate administrative, management, financial, engineering and public utility practices, and environmental and social standards acceptable to the Association; shall take or provide and cause to be taken provided, promptly as needed, the funds, facilities, services and other resources required for the Project, and shall take and cause each of EVN and PC1, PC2 and PC3 to take all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable the State each of them to perform its respective obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (cb) Without limitation to its obligations under upon the provisions of paragraph (a) aboveof this Section and except as the Borrower and the Association shall otherwise agree, the Borrower shall carry out Parts A and E of the Project in accordance with the Implementation Program set forth in Schedule 4 to this Agreement. (a) For purposes of Part A of the Project, the Borrower shall: , through MOF and DAF, make portions of the amount of the Credit allocated from time to time to Categories (i1)(a) take all action as shall be required to regulate, in a manner satisfactory and (2)(a) available to the BankProject Provinces for their respective Project activities, under terms and conditions and onlending instruments acceptable to the funding procedures Association, which will ensure that shall include the Executing Entities shall have the funds required for carrying out the Project available to them in a timely manner; and (ii) provide or cause SUDENE to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h) of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H of the Project and under the State Project, respectively, as provided in each POA. (d) The Borrower shall make the proceeds of the Loan allocated respectivelyfollowing: (i) for purposes of each Project Province shall repay to the State Project Borrower, through MOF, the principal amount thus made available to the State; and it over a term of twenty (20) years including a grace period of five (5) years; (ii) for Part H the principal amount so made available to each Project Province and outstanding from time to time shall bear interest at a rate of one percent (1%) per annum; and (iii) the principal amount to be repaid by each Project Province shall the equivalent in Vietnamese Dong (determined as of the Project date or dates respectively of withdrawal from the Credit Account or of payment out of the DAF Special Account, as the case may be) of the value of currency or currencies so withdrawn or paid out in respect of the portion of the Credit allocated to Categories (1)(a) and (2)(a) and made available to EMBRAPA; under arrangements satisfactory to the Banksaid Project Province. (eb) The Borrower, through DTN, shall enter into agreements, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for For purposes of the credit programs included in Parts B, C and D and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions of Schedule 5 to this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program; (B) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the SubloansBorrower shall make available: (i) to PC1, the Beneficiaries, the expenditure portion of the proceeds of the Loan, the goods Credit allocated from time to time to Categories (1)(b) and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject in such manner as to: (i) protect the interest of the Bank and the Borrower2)(b); (ii) enable to PC2, the Borrower portion of the proceeds of the Credit allocated from time to comply with its obligations under this Agreementtime to Categories (1)(c) and (2)(c); and (iii) achieve to PC3, the portion of the proceeds of the Credit allocated from time to time to Categories (1)(d) and (2)(d); in each case under a subsidiary loan agreement to be entered into between the Borrower, through MOF, and each of PC1, PC2 and PC3, under terms and conditions which shall have been approved by the Association which shall include the following: (i) the principal amount of the Subsidiary Loans repayable by PC1, PC2 and PC3 shall be the equivalent in Dollars (determined as of the date, or respective dates of withdrawal from the Credit Account) of the value of the currency or currencies withdrawn from the Credit Account in respect of the Categories referred to above in this Section 3.02 (b); (ii) PC1, PC2 and PC3 shall repay the Subsidiary Loans over a term of twenty-five(25) years, including a grace period of seven (7) years; (iii) interest at the rate of one percent (1%) per annum shall be charged on the principal amount of the Subsidiary Loans outstanding from time to time; and (iv) a commitment charge at a rate per annum equal to the rate applicable under Section 2.04 of this Agreement shall be charged on the principal amount of the Subsidiary Loans so made available and not withdrawn from time to time. (c) The Borrower shall exercise its rights under the Subsidiary Loan Agreements in such manner as to protect the interests of the Borrower and the Association and to accomplish the purposes of the Project. (f) Unless Credit, and, except as the Bank Association shall otherwise agree, the Borrower shall not assign, amend, abrogate or waive the provisions any of the MCR applicable to the ProgramSubsidiary Loan Agreements or any provision thereof. (ga) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms and conditions satisfactory to the Bank, not later than six months after the date of the Amending Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive or fail to enforce any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendations. Section 3.02. Except as the Bank Association shall otherwise agree, procurement of the goods, works and consultants’ services required for the carrying out Parts A and E.1 (a) of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan Credit shall be made in accordance with governed by the provisions of Schedule 2 3 to this Agreement, as said provisions may be further elaborated in the Project Agreement. (a) The Borrower shall: (i) furnish to the Bank by October 31 in each year, for its review and comment, the proposed POA and budget for the Project and for the Northeast Rural Development Program for the following fiscal year; (ii) afford the Bank a reasonable opportunity to comment on any modifications the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budgetProcurement Plan. (b) In order The Borrower shall update, and cause to assist the EMBRAPA in carrying out Part H of the Projectbe updated, the Borrower shall cause EMBRAPA, under contractual arrangements satisfactory to the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected Procurement Plan in accordance with principles and procedures satisfactory guidelines acceptable to the Bank on Association, and furnish such update to the basis Association not later than 12 months after the date of the "Guidelines preceding Procurement Plan, for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the bank in August 1981Association’s approval. Section 3.04. The Bank For the purposes of Section 9.06 of the General Conditions and without limitation thereto, the Borrower shall: (a) prepare, on the basis of guidelines acceptable to the Association, and furnish to the Association not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Association, a plan designed to ensure the continued achievement of the objectives of Parts A and E of the Project; and (b) afford the Association a reasonable opportunity to exchange views with the Borrower on said plan. Section 3.05. The Borrower and the Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07, 9.07 and 9.08 and 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of Parts B, C and D of the Project shall be carried outout by PC1, or caused PC2 and PC3 respectively pursuant to be carried out, by (i) the State in respect Section 2.03 of the State Project, and byProject Agreement.

Execution of the Project. (a) The Borrower Recipient declares its commitment to the objectives of the Project as set forth in Schedule 2 to this AgreementAgreement and, and to this end shall causeend: (i) SDR to coordinate (at the federal level) shall carry out Parts B and issue guidelines related to the carrying out C of the ProgramProject through the MOEW with due diligence and efficiency and in conformity with appropriate administrative, economic, engineering, technical and water management practices and with due regard to propose annual budgets for such Program ecological and to take all actions necessary to ensure environmental factors as stipulated in the availability Bucharest Convention on the Protection of the counterpart funds Black Sea Against Pollution and the Ramsar Convention on Wetlands, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the carrying out of such Program in a timely manner; (ii) SUDENE to coordinate (at the regional level), supervise Parts B and monitor the Program; (iii) the Participating Banks, through Participating Agreements, to carry out the credit program included in Parts D and I C of the Project; and (ivii) EMBRAPA to carry out Part H of the Project, all with due diligence and efficiency, in accordance with appropriate administrative, financial and agricultural practices. (b) Without without any limitation or restriction upon any of its other obligations under the Loan GEF Trust Fund Grant Agreement, the Borrower shall cause the State, under contractual arrangements satisfactory MOB to carry out Part A of the Bank, to Project and perform in accordance with the provisions of the MOB Project Agreement, Agreement all the respective obligations of the State MOB therein set forth, shall take or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable the State MOB to perform its such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (cb) Without limitation to its obligations under upon the provisions of paragraph (a) above, the Borrower shall: (i) take all action as shall be required to regulate, in a manner satisfactory to the Bank, the funding procedures which will ensure that the Executing Entities shall have the funds required for carrying out the Project available to them in a timely manner; of this Section and (ii) provide or cause SUDENE to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h) of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H of the Project and under the State Project, respectively, as provided in each POA. (d) The Borrower shall make the proceeds of the Loan allocated respectively: (i) for purposes of the State Project available to the State; and (ii) for Part H of the Project available to EMBRAPA; under arrangements satisfactory to the Bank. (e) The Borrower, through DTN, shall enter into agreements, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions of Schedule 5 to this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program; (B) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information except as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds of the Loan, the goods Recipient and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject in such manner as to: (i) protect the interest of the Bank and the Borrower; (ii) enable the Borrower to comply with its obligations under this Agreement; and (iii) achieve the purposes of the Project. (f) Unless the Bank shall otherwise agree, the Borrower Recipient shall carry out Parts B and C of the Project in accordance with the Implementation Program set forth in Schedule 4 to this Agreement. (c) The Recipient shall make the proceeds of the GEF Trust Fund Grant allocated from time to time for Part A of the Project available to the MOB, and for Parts B and C of the Project to the MOEW and the WD, respectively, in both cases on a grant basis and under the terms of an Implementation Grant Agreement. (d) The Recipient shall exercise its rights under the Implementation Grant Agreement in such manner as to protect the interests of the Recipient and the Bank and to accomplish the purposes of the GEF Trust Fund Grant, and, except as the Bank shall otherwise agree, the Recipient shall not amend, abrogate or waive the provisions of the MCR applicable to the ProgramImplementation Grant Agreement or any provision thereof. (ga) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms and conditions satisfactory to the Bank, not later than six months after the date of the Amending Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive or fail to enforce any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendations. Section 3.02. Except as the Bank shall otherwise agree, procurement of the goods, works and services required for the carrying out Parts B and C of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan GEF Trust Fund Grant shall be made in accordance with governed by the provisions of Schedule 2 3 to this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Recipient, through the MOEW, shall update the Procurement Plan for Parts B and C of the Project in accordance with guidelines acceptable to the Project AgreementBank, and furnish such update to the Bank not later than twelve (12) months after the date of the preceding Procurement Plan, for the Bank’s approval. Section 3.03. For the purposes of Section 9.07 (c) of the General Conditions and without limitation thereto, the Recipient, through the MOEW, shall: (a) The Borrower shall: (i) prepare, on the basis of guidelines acceptable to the Bank, and furnish to the Bank by October 31 in each yearnot later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Recipient and the Bank, for its review a plan designed to ensure the future sustainability of Parts B and comment, C of the proposed POA and budget for the Project and for the Northeast Rural Development Program for the following fiscal yearProject; and (iib) afford the Bank a reasonable opportunity to comment exchange views with the Recipient on any modifications the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budget. (b) In order to assist the EMBRAPA in carrying out Part H of the Project, the Borrower shall cause EMBRAPA, under contractual arrangements satisfactory to the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the bank in August 1981said plan. Section 3.04. The Bank and the Borrower Recipient hereby agree that the obligations set forth in Sections 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of Part A of the Project shall be carried out, or caused out by the MOB pursuant to be carried out, by (i) the State in respect provisions of Section 2.03 of the State Project, and byMOB Project Agreement.

Execution of the Project. (a) The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and and, to this end end, shall cause: carry out, and shall cause various implementing agencies (i) SDR to coordinate (at the federal level) including provincial councils, districts, statutory authorities, and issue guidelines related to the carrying out of the Programgovernment departments), to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely manner; (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, undertake their respective obligations to carry out the credit program included in Parts D and I of the Project; and (iv) EMBRAPA to carry out Part H of the Project, all Project with due diligence and efficiency, efficiency and in accordance conformity with appropriate administrative, financial environmental, technical, and agricultural public health policies, guidelines, practices, rules, regulations, and laws, and shall provide, promptly as needed, the funds, facilities, services, and other resources required for the Project. (b) Without any limitation or restriction upon any the provisions of its other obligations under paragraph (a) of this Section and except as the Loan AgreementBorrower and the Association shall otherwise agree, the Borrower shall shall: (i) implement the Project in accordance with the Implementation Program set forth in Schedule 4 to this Agreement and the Environmental and Social Framework; (ii) make all efforts required on its part to cause various implementing agencies (including provincial councils, districts, statutory authorities, and government departments) to undertake their respective obligations to carry out the State, under contractual arrangements satisfactory to the Bank, to perform Project in accordance with the provisions of this Agreement and the Project AgreementEnvironmental and Social Framework; and (iii) take, all the respective obligations of the State therein set forth, shall take or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable the State various implementing agencies (including provincial councils, districts, statutory authorities, and government departments) to perform its obligationstheir respective obligations to carry out the Project, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (c) Without limitation to its obligations under paragraph (a) above, the Borrower shall: (i) take all action as shall be required to regulate, in a manner satisfactory to the Bank, the funding procedures which will ensure that the Executing Entities shall have the funds required for carrying out the Project available to them in a timely manner; and (ii) provide or cause SUDENE to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h) of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H of the Project and under the State Project, respectively, as provided in each POA. (d) The Borrower shall make the proceeds of the Loan allocated respectively: (i) for purposes of the State Project available to the State; and (ii) for Part H of the Project available to EMBRAPA; under arrangements satisfactory to the Bank. (e) The Borrower, through DTN, shall enter into agreements, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions of Schedule 5 to this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program; (B) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject in such manner as to: (i) protect the interest of the Bank and the Borrower; (ii) enable the Borrower to comply with its obligations under this Agreement; and (iii) achieve the purposes of the Project. (f) Unless the Bank shall otherwise agree, the Borrower shall not amend, abrogate or waive the provisions of the MCR applicable to the Program. (g) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms and conditions satisfactory to the Bank, not later than six months after the date of the Amending Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive or fail to enforce any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendations. Section 3.02. Except as the Bank Association shall otherwise agree, procurement of the goods, works works, and services required for the carrying out of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan Financing shall be made in accordance with governed by the provisions of Schedule 2 3 to this Agreement, as these provisions may be further elaborated in the Project Agreement. (a) The Borrower shall: (i) furnish to the Bank by October 31 in each year, for its review and comment, the proposed POA and budget for the Project and for the Northeast Rural Development Program for the following fiscal year; (ii) afford the Bank a reasonable opportunity to comment on any modifications the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budgetProcurement Plan. (b) In order The Borrower shall update the Procurement Plan in accordance with guidelines acceptable to assist the EMBRAPA in carrying out Part H Association, and furnish such update to the Association not later than twelve (12) months after the date of the Projectpreceding Procurement Plan, for the Association’s approval. Section 3.03. For the purposes of Section 9.06 of the General Conditions and without limitation thereto, the Borrower shall cause EMBRAPAshall: (a) prepare, under contractual arrangements satisfactory to the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis of guidelines acceptable to the "Guidelines Association, and furnish to the Association not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the bank in August 1981. Section 3.04. The Bank Borrower and the Borrower hereby agree that the obligations set forth in Sections 9.04Association, 9.05, 9.06, 9.07, 9.08 and 9.09 a plan to ensure continued achievement of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out, or caused to be carried out, by (i) the State in respect objectives of the State Project, and by; and (b) afford the Association a reasonable opportunity to exchange views with the Borrower on said plan.

Execution of the Project. (a) The Borrower Karnataka declares its commitment to the objectives of the Project as set forth in Schedule 2 to this the Development Credit Agreement, and and, to this end end, shall cause: (i) SDR to coordinate (at the federal level) and issue guidelines related to the carrying out of the Program, to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely manner; (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, to carry out the credit program included in Parts D and I of the Project; and (iv) EMBRAPA to carry out Part H of the Project, all Project with due diligence and efficiency, efficiency and in accordance conformity with appropriate administrative, financial financial, environmental and agricultural public health practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without any limitation upon the provisions of paragraph (a) of this Section and except as the Association and Karnataka shall otherwise agree, Karnataka shall carry out the Project in accordance with the Implementation Program set forth in Schedule 2 to this Agreement. (c) Except as the Association may otherwise agree, Karnataka shall, in accordance with arrangements and procedures satisfactory to the Association, make available to the DOHFW, the Districts and the PRIs, proceeds of the Credit made available to Karnataka by the Borrower, as well as additional funds from Karnataka’s own resources required for effective and timely implementation of the Project. (d) Without limitation or restriction upon any of its other obligations under the Loan Agreement, the Borrower shall cause the State, under contractual arrangements satisfactory to the Bank, to perform in accordance with the provisions of the Project Agreement, all for the respective obligations purpose of implementation of its relevant activities under the State therein set forthProject, shall take or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable the State to perform its obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (c) Without limitation to its obligations under paragraph (a) above, the Borrower Karnataka shall: (i) take all action as shall be required to regulaterely upon existing arrangements with each District and PRI, in a manner including the Panchayat Raj Act of 1993, which are satisfactory to the Bank, the funding procedures which will ensure that the Executing Entities shall have the funds required for carrying out the Project available to them in a timely mannerAssociation; and (ii) provide or cause SUDENE each District and PRI to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h) of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the carry out its respective activities under Part H of the Project and under the State Project, respectively, as provided in each POA. (d) The Borrower shall make the proceeds of the Loan allocated respectively: (i) for purposes of the State Project available to the State; and (ii) for Part H of the Project available to EMBRAPA; under arrangements satisfactory to the Bank. (e) The Borrower, through DTN, shall enter into agreements, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of the Project in accordance with: Agreement; and 1. the terms with such arrangements, and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions of Schedule 5 to this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program; (B) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject in such manner as to: (i) protect the interest of the Bank and the Borrower; (ii) enable the Borrower to comply with its obligations under this Agreement; and (iii) achieve the purposes of the Project. (fa) Unless the Bank shall otherwise agree, the Borrower shall not amend, abrogate or waive the provisions of the MCR applicable to the Program. (g) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms and conditions satisfactory to the Bank, not later than six months after the date of the Amending Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive or fail to enforce any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendations. Section 3.02. Except as the Bank Association shall otherwise agree, procurement of the goods, works and consultants’ services required for the carrying out of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan Credit shall be made in accordance with governed by the provisions of Schedule 2 1 to this Agreement, as such provisions shall be further elaborated in the Project Agreement. (a) The Borrower shall: (i) furnish to the Bank by October 31 in each year, for its review and comment, the proposed POA and budget for the Project and for the Northeast Rural Development Program for the following fiscal year; (ii) afford the Bank a reasonable opportunity to comment on any modifications the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budgetProcurement Plan. (b) In order to assist Karnataka shall update the EMBRAPA in carrying out Part H of the Project, the Borrower shall cause EMBRAPA, under contractual arrangements satisfactory to the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected Procurement Plan in accordance with principles and procedures satisfactory guidelines acceptable to the Bank on Association not later than twelve (12) months after the basis date of the "Guidelines preceding Procurement Plan, for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the bank in August 1981Association’s approval. Section 3.04. The Bank and the Borrower hereby agree that the obligations set forth in Sections 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out, or caused to be carried out, by (i) the State in respect of the State Project, and by

Execution of the Project. (a) The Borrower Recipient declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and and, to this end end, shall cause: (i) SDR to coordinate (at cause the federal level) and issue guidelines related to the carrying out of the Program, to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely manner; (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, Palestinian Authority to carry out the credit program included in Parts D and I of the Project; and (iv) EMBRAPA to carry out Part H of the Project, all Project through PWA with due diligence and efficiency, in accordance conformity with appropriate administrative, economic, engineering, environmental and financial practices and agricultural practicesshall cause the Palestinian Authority to provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without any limitation or restriction upon any the provisions of its other obligations under paragraph (a) of this Section and except as the Loan AgreementRecipient and the Administrator shall otherwise agree, the Borrower Recipient shall cause the State, under contractual arrangements satisfactory Palestinian Authority to carry out the Project through PWA in accordance with the Implementation Program set forth in Schedule 4 to this Agreement. (c) The Recipient shall make the proceeds of the Grant available to the Bank, Palestinian Authority under a Subsidiary agreement to be entered into between the Recipient and the Palestinian Authority under terms and conditions which shall have been approved by the Administrator. (d) The Recipient shall cause the Palestinian Authority: (i) to perform in accordance with the provisions of the Project Agreement, Subsidiary Agreement all of the respective obligations of the State Palestinian Authority therein set forth, shall ; (ii) to take or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out of the Project; and (iii) not to enable the State to perform its obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (c) Without limitation to its obligations under paragraph (a) above, the Borrower shall: (i) take all action as shall be required to regulate, in a manner satisfactory to the Bank, the funding procedures which will ensure that the Executing Entities shall have the funds required for carrying out the Project available to them in a timely manner; and (ii) provide or cause SUDENE to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h) of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H of the Project and under the State Project, respectively, as provided in each POA. (d) The Borrower shall make the proceeds of the Loan allocated respectively: (i) for purposes of the State Project available to the State; and (ii) for Part H of the Project available to EMBRAPA; under arrangements satisfactory to the Bank. (e) The Borrower, through DTN, Recipient shall enter into agreements, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions of Schedule 5 to this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program; (B) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject under the Subsidiary Agreement in such manner as to: (i) to protect the interest interests of the Bank Recipient, the Palestinian Authority and the Borrower; (ii) enable the Borrower Administrator and to comply with its obligations under this Agreement; and (iii) achieve accomplish the purposes of the Project. (f) Unless Grant, and, except as the Bank Administrator shall otherwise agree, the Borrower Recipient shall not assign, amend, abrogate or waive the provisions of the MCR applicable to the Program. (g) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms and conditions satisfactory to the Bank, not later than six months after the date of the Amending Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive Subsidiary Agreement or fail to enforce any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendationsthereof. Section 3.02. Except as the Bank Administrator shall otherwise agree, procurement of the goods, works and consultants’ services required for the carrying out of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan Grant shall be made in accordance with governed by the provisions of Schedule 2 3 to the Project this Agreement. Section 3.03. For the purposes of Section 8.06 of the General Conditions and without limitation thereto, the Recipient, through the Palestinian Authority, shall cause PWA to: (a) The Borrower shall: (i) prepare, on the basis of guidelines acceptable to the Administrator, and furnish to the Bank by October 31 in each yearAdministrator not later than six (6) months after the Closing Date, or such later date as may be agreed for its review this purpose between the Palestinian Authority and commentthe Administrator, a plan to ensure the proposed POA and budget for continued achievement of the Project and for the Northeast Rural Development Program for the following fiscal yearProject’s objectives; and (iib) afford the Bank Administrator a reasonable opportunity to comment exchange views with the Palestinian Authority on any modifications the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budgetsaid plan. (b) In order to assist the EMBRAPA in carrying out Part H of the Project, the Borrower shall cause EMBRAPA, under contractual arrangements satisfactory to the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the bank in August 1981. Section 3.04. The Bank and the Borrower hereby agree that the obligations set forth in Sections 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out, or caused to be carried out, by (i) the State in respect of the State Project, and by

Execution of the Project. (a) The Borrower Comoros declares its commitment to the objectives of the Project as set forth in Schedule 2 to the GEF Trust Fund Grant Agreement (and reprinted as Schedule 2 to this Agreement), and, to this end, shall, through DNRH, provide assistance in the implementation of Parts A, D, and to this end shall cause: (i) SDR to coordinate (at the federal level) and issue guidelines related to the carrying out F of the Program, to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely manner; (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, to carry out the credit program included in Parts D and I of the Project; and (iv) EMBRAPA to carry out Part H of the Project, all Project with due diligence and efficiency, efficiency and in accordance conformity with appropriate administrative, financial financial, conservation and agricultural biodiversity practices. (b) Without any limitation or restriction upon any of its other obligations under the Loan Agreement, the Borrower and with due regard to ecological and environmental factors, and shall cause the Stateprovide, under contractual arrangements satisfactory to the Bank, to perform in accordance with the provisions of the Project Agreement, all the respective obligations of the State therein set forth, shall take or cause to be taken all actionprovided, including promptly as needed, the provision of funds, facilities, services and other resourcesresources required for assistance in the implementation of Parts A, necessary or appropriate to enable the State to perform its obligationsD, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (c) Without limitation to its obligations under paragraph (a) above, the Borrower shall: (i) take all action as shall be required to regulate, in a manner satisfactory to the Bank, the funding procedures which will ensure that the Executing Entities shall have the funds required for carrying out the Project available to them in a timely manner; and (ii) provide or cause SUDENE to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h) of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H of the Project and under the State Project, respectively, as provided in each POA. (d) The Borrower shall make the proceeds of the Loan allocated respectively: (i) for purposes of the State Project available to the State; and (ii) for Part H of the Project available to EMBRAPA; under arrangements satisfactory to the Bank. (e) The Borrower, through DTN, shall enter into agreements, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions of Schedule 5 to this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program; (B) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject in such manner as to: (i) protect the interest of the Bank and the Borrower; (ii) enable the Borrower to comply with its obligations under this Agreement; and (iii) achieve the purposes F of the Project. (fb) Unless the Bank shall otherwise agree, the Borrower shall not amend, abrogate or waive Without limitation upon the provisions of the MCR applicable to the Program. (g) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (ea) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms and conditions satisfactory to the Bank, not later than six months after the date of the Amending Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of the Project this Section and except as the Bank and Comoros shall otherwise agreeagree in consultation with Regional Policy Steering Committee (RPSC), cause SUDENE Comoros shall assist in the implementation of Parts A, D, and EMBRAPA not to amend, abrogate, waive or fail to enforce any provision F of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, Project in accordance with terms of reference satisfactory the Implementation Program set forth in Schedule 1 to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendationsthis Agreement. Section 3.022.02. Except as the Bank shall otherwise agree, procurement of the goods, works and services required for the carrying out of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan GEF Trust Fund Grant shall be made in accordance with governed by the provisions of Schedule 2 3 to the Project GEF Trust Fund Grant Agreement, as said provisions may be further elaborated in the Procurement Plan. (a) The Borrower shall: (i) furnish to the Bank by October 31 in each year, for its review and comment, the proposed POA and budget for the Project and for the Northeast Rural Development Program for the following fiscal year; (ii) afford the Bank a reasonable opportunity to comment on any modifications the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budget. (b) In order to assist the EMBRAPA in carrying Comoros shall carry out Part H of the Project, the Borrower shall cause EMBRAPA, under contractual arrangements satisfactory to the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the bank in August 1981. Section 3.04. The Bank and the Borrower hereby agree that the obligations set forth in Sections 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried outin respect of this Project Agreement. (b) For the purposes of Section 9.08 of the General Conditions and without limitation thereto, or caused to be carried out, by Comoros shall: (i) prepare, on the State in respect basis of guidelines acceptable to the Bank, and furnish to the Bank not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Bank and Comoros, a plan for the future sustainability of the State Project; and (ii) afford the Bank a reasonable opportunity to exchange views with Comoros on said plan. Section 2.04. Comoros shall duly perform all its obligations under the Project Agreement. Except as the Bank shall otherwise agree, Comoros shall not take or concur in any action which would have the effect of amending, abrogating, assigning or waiving the Project Agreement or any provision thereof. Section 2.05. (a) Comoros shall, at the request of the Bank, exchange views with the Bank with regard to progress of the Project, the performance of its obligations under this Agreement and byother matters relating to the purposes of the GEF Trust Fund Grant.

Execution of the Project. (a) The Borrower Hunan declares its it commitment to the objectives of the Project as set forth in Schedule 2 to this the Loan Agreement, and and, to this end end, shall cause: (i) SDR carry out, and shall cause to coordinate (at be carried out by the federal level) Project Municipalities and issue guidelines related to the carrying out of Project Companies, the Program, to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely manner; (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, to carry out the credit program included in Parts D and I of the Project; and (iv) EMBRAPA to carry out Part H of the Project, all Project with due diligence and efficiency, efficiency and in accordance conformity with appropriate administrative, financial financial, engineering and agricultural public utility practices. (b) Without any limitation or restriction upon any of its other obligations under the Loan Agreement, the Borrower shall cause the State, under contractual arrangements satisfactory and social and environment standards acceptable to the Bank, to perform in accordance with the provisions of the Project Agreementand shall provide, all the respective obligations of the State therein set forth, shall take or cause to be taken all actionprovided, including promptly as needed, the provision of funds, facilities, services and other resources, necessary or appropriate to enable the State to perform its obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (c) Without limitation to its obligations under paragraph (a) above, the Borrower shall: (i) take all action as shall be required to regulate, in a manner satisfactory to the Bank, the funding procedures which will ensure that the Executing Entities shall have the funds resources required for carrying out the Project available to them in a timely manner; and (ii) provide or cause SUDENE to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h) of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H of the Project and under the State Project, respectively, as provided in each POA. (d) The Borrower shall make the proceeds of the Loan allocated respectively: (i) for purposes of the State Project available to the State; and (ii) for Part H of the Project available to EMBRAPA; under arrangements satisfactory to the Bank. (e) The Borrower, through DTN, shall enter into agreements, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions of Schedule 5 to this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program; (B) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject in such manner as to: (i) protect the interest of the Bank and the Borrower; (ii) enable the Borrower to comply with its obligations under this Agreement; and (iii) achieve the purposes of the Project. (fb) Unless the Bank shall otherwise agree, the Borrower shall not amend, abrogate or waive Without limitation upon the provisions of the MCR applicable to the Program. (g) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (ea) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms and conditions satisfactory to the Bank, not later than six months after the date of the Amending Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of the Project this Section and except as the Bank and Hunan shall otherwise agree, Hunan shall carry out, and shall cause SUDENE and EMBRAPA not to amend, abrogate, waive or fail to enforce any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENEbe carried out, the Program, Project in accordance with terms of reference satisfactory the Implementation Program set forth in Schedule 2 to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendationsthis Agreement. Section 3.022.02. Except as the Bank shall otherwise agree, procurement of the goods, works and consultants’ services required for the carrying out of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan shall be made in accordance with governed by the provisions of Schedule 2 1 to the Project this Agreement. (a) The Borrower shall: (i) furnish to the Bank by October 31 in each yearHunan shall carry out, for its review and comment, the proposed POA and budget for the Project and for the Northeast Rural Development Program for the following fiscal year; (ii) afford the Bank a reasonable opportunity to comment on any modifications the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budget. (b) In order to assist the EMBRAPA in carrying out Part H of the Project, the Borrower shall cause EMBRAPA, under contractual arrangements satisfactory to the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the bank in August 1981. Section 3.04. The Bank and the Borrower hereby agree that carried out, the obligations set forth in Sections 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried outin respect of this Agreement. (b) For the purposes of Section 9.07 of the General Conditions and without limitation thereto, or caused to be carried out, by Hunan shall: (i) prepare, on the State in respect basis of guidelines acceptable to the Bank, and furnish to the Bank not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Bank and Hunan, a plan for the continued achievement of the State objectives of the Project, and by; and (ii) afford the Bank a reasonable opportunity to exchange views with Hunan on said plan.

Execution of the Project. (a) The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and and, to this end end, shall cause: (i) SDR to coordinate (at the federal level) and issue guidelines related to the carrying out of the Program, to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely manner; (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, to carry out the credit program included Project in Parts D and I accordance with the provisions of the Project; and (iv) EMBRAPA to carry out Part H of the Projectthis Agreement, all with due diligence and efficiency, efficiency and in accordance conformity with appropriate administrative, financial and agricultural health practices. (b) Without any limitation or restriction upon any of its other obligations under the Loan Agreement, and shall provide, promptly as needed, the Borrower shall cause the State, under contractual arrangements satisfactory to the Bank, to perform in accordance with the provisions of the Project Agreement, all the respective obligations of the State therein set forth, shall take or cause to be taken all action, including the provision of funds, facilities, services and other resourcesresources required for the Project. (b) Without limitation upon any provision of paragraph (a) of this Section and except as the Borrower and the Association shall otherwise agree, the Borrower shall cause each Participating State to carry out its portions of the Project and ensure that the portions to be implemented through SLS and DLS shall be carried out in accordance with the provisions set forth in Schedule 4 to this Agreement and the State’s Memorandum of Understanding, with due diligence and efficiency and in conformity with appropriate administrative, financial and health practices, provide, promptly as needed, the funds, facilities, services and other resources required for the Project; and necessary or appropriate to enable the State SLS and DLS to perform its such obligations, and the State shall not take or permit to be taken any action which would prevent or interfere with such performance. (c) Without limitation to its obligations under paragraph (a) above, the Borrower shall: (i) take all action as shall be required to regulate, in a manner satisfactory to the Bank, the funding procedures which will ensure that the Executing Entities shall have the funds required for carrying out the Project available to them in a timely manner; and (ii) provide or cause SUDENE to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h) of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H of the Project and under the State Project, respectively, as provided in each POA. (d) The Borrower shall make part of the proceeds of the Loan allocated respectivelyCredit available to each: (i) Participating State for purposes the portions of the Project as are to be carried out by such State Project available in accordance with the Borrower’s standard arrangements for development assistance to the StateStates of India; and and (ii) SLS and DLS for Part H the carrying out its portions of the Project available to EMBRAPA; under Project, in accordance with the arrangements satisfactory to the Bank. (e) The Borrower, through DTN, shall enter into agreements, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions of Schedule 5 to this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program; (B) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project Borrower and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject in such manner as to: (i) protect the interest of the Bank and the Borrower; (ii) enable the Borrower to comply with its obligations under this Agreement; and (iii) achieve the purposes of the Project. (f) Unless the Bank shall otherwise agree, the Borrower shall not amend, abrogate or waive the provisions of the MCR applicable to the Program. (g) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms and conditions satisfactory to the Bank, not later than six months after the date of the Amending Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive or fail to enforce any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendationsAssociation. Section 3.02. Except as the Bank Association shall otherwise agree, procurement of the goods, works and consultants’ services required for the carrying out of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan Credit shall be made in accordance with governed by the provisions of Schedule 2 3 to the Project this Agreement. (a) Section 3.03. The Borrower shall: (i) furnish to the Bank by October 31 in each year, for its review and comment, the proposed POA and budget for the Project and for the Northeast Rural Development Program for the following fiscal year; (ii) afford the Bank a reasonable opportunity to comment on any modifications the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budget. (b) In order to assist the EMBRAPA in carrying out Part H of the Project, the Borrower shall cause EMBRAPA, under contractual arrangements satisfactory to the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the bank in August 1981. Section 3.04. The Bank and the Borrower Association hereby agree that the obligations set forth in Sections Section 9.03, 9.04, 9.05, 9.06, 9.07, 9.07 and 9.08 and 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out, or caused to be carried out, by (i) the State in respect of the Project shall be carried out respectively by the Participating State Projectpursuant to the terms of its Memorandum of Understanding. Section 3.04. The Borrower shall ensure that prior to the Project being carried out in a Participating State, such State shall duly execute and deliver to the Borrower and the Association a Memorandum of Understanding with form and content agreed with the Association, including actions set forth in Schedule 4 to this Agreement. Section 3.05. For the purposes of Section 9.06 of the General Conditions and without limitation thereto, the Borrower shall: (a) prepare, on the basis of guidelines acceptable to the Association, and byfurnish to the Association not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Association, a plan for the future operation of NLEP; and (b) afford the Association a reasonable opportunity to exchange views with the Borrower on said plan. Section 3.06. Without limitation to the generality of any other provision of this Agreement, the Borrower shall review biannually with the Association progress in Project implementation over the preceding six months and shall prepare and furnish to the Association during such review a work plan for the six months following such review.

Execution of the Project. (a) Section 3.01. The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and and, to this end end: (a) shall cause: (i) SDR to coordinate (at the federal level) and issue guidelines related to the carrying out of the Program, to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely manner; (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, to carry out the credit program included in Parts D and I Part A of the Project; , and cooperate with SECAP in carrying out Parts B.1 and B.2 of the Project, through MEC with due diligence and efficiency and in conformity with appro- priate administrative, financial and educational practices, and the Borrower shall provide, promptly as needed, the funds, facilities, services and other resources required for such Parts of the Project and for the proper functioning of every School Network (ivincluding, inter alia, the funds referred to in Section 3.05 of this Agreement and those required to meet all operation and maintenance costs not financed by the proceeds of the Loan); (b) EMBRAPA shall cause SECAP to carry out Part H B of the Project (in cooperation with MEC with regard to Parts B.1 and B.2 of the Project, all with due diligence and efficiency, in accordance with appropriate administrative, financial and agricultural practices. (b) Without any limitation or restriction upon any of its other obligations under the Loan Agreement, the Borrower shall cause the State, under contractual arrangements satisfactory to the Bank, to perform in accordance with the provisions of the Project AgreementAgreement with due diligence and efficiency and in conformity with appropriate administrative, all the respective obligations of the State therein set forthfinancial and vocational training practices, shall take or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable SECAP to carry out such Parts of the State Project (including, inter alia, those funds required to perform its obligationsmeet all operation and maintenance costs not financed by the proceeds of the Loan), and shall not take or permit to be taken any action which would prevent or interfere with such performance. (c) Without limitation to its obligations under paragraph (a) above, the Borrower shall: (i) take all action as shall be required to regulate, in a manner satisfactory to the Bank, the funding procedures which will ensure that the Executing Entities shall have the funds required for carrying out the Project available to them in a timely manner; and (ii) provide or cause SUDENE to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h) SECAP of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H of the Project and under the State Project, respectively, as provided in each POA. (d) The Borrower shall make the proceeds of the Loan allocated respectively: (i) for purposes of the State Project available to the State; and (ii) for Part H of the Project available to EMBRAPA; under arrangements satisfactory to the Bank. (e) The Borrower, through DTN, shall enter into agreements, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in such Parts D and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions of Schedule 5 to this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program; (B) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (Dc) undertake shall make proceeds of the Loan available to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand SECAP for working capital credit and for credit under Part I B of the Project under a subsidiary agreement to be entered into between the Borrower and SECAP, under terms and conditions which shall have been approved by the Bank; and (d) shall exercise its rights and carry out its obligations under the Subsidiary Agreement in such manner as to protect the interests of the Borrower and the preceding month’s lending performance of Bank and to accomplish the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds purposes of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject in such manner as to: (i) protect the interest of the Bank and the Borrower; (ii) enable the Borrower to comply with its obligations under this Agreement; and (iii) achieve the purposes of the Project. (f) Unless the Bank shall otherwise agree, the Borrower shall not amend, abrogate or waive the provisions of the MCR applicable to the Program. (g) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms and conditions satisfactory to the Bank, not later than six months after the date of the Amending Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA shall not to assign, amend, abrogate, waive or fail to enforce the Subsidiary Agreement or any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendationsthereof. Section 3.02. Except as the Bank shall otherwise agree, procurement of the goods, works and consultants’ services required for the carrying out of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan shall be made in accordance with governed by the provisions of Schedule 2 4 to the Project this Agreement. (a) The Borrower shall: (i) furnish to the Bank by October 31 in each year, for its review and comment, the proposed POA and budget for the Project and for the Northeast Rural Development Program for the following fiscal year; (ii) afford the Bank a reasonable opportunity to comment on any modifications the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budget. (b) In order to assist the EMBRAPA in carrying out Part H of the Project, the Borrower shall cause EMBRAPA, under contractual arrangements satisfactory to the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the bank in August 1981. Section 3.043.03. The Bank and the Borrower hereby agree that the obligations set forth in Sections 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out, or caused to be carried out, by (i) the State in respect of the State Project, and byand

Execution of the Project. (a) The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and to this end Recipient shall cause: (i) SDR to coordinate (at the federal level) and issue guidelines related to the carrying out of the Program, to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely manner; (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, to carry out the credit program included in Parts D and I of the Project; and (iv) EMBRAPA to carry out Part H of the Project, all Project with due diligence and efficiency, efficiency and in accordance conformity with appropriate administrativeadministrative practices, financial and agricultural practices. (b) Without any limitation or restriction upon any of its other obligations under the Loan Agreementshall provide, promptly as needed, the Borrower shall cause the State, under contractual arrangements satisfactory to the Bank, to perform in accordance with the provisions of the Project Agreement, all the respective obligations of the State therein set forth, shall take or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable the State to perform its obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (c) Without limitation to its obligations under paragraph (a) above, the Borrower shall: (i) take all action as shall be required to regulate, in a manner satisfactory to the Bank, the funding procedures which will ensure that the Executing Entities shall have the funds resources required for carrying out the Project available to them in a timely manner; and (ii) provide or cause SUDENE to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h) of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H of the Project and under the State Project, respectively, as provided in each POA. (d) The Borrower shall make the proceeds of the Loan allocated respectively: (i) for purposes of the State Project available to the State; and (ii) for Part H of the Project available to EMBRAPA; under arrangements satisfactory to the Bank. (e) The Borrower, through DTN, shall enter into agreements, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions of Schedule 5 to this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program; (B) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject in such manner as to: (i) protect the interest of the Bank and the Borrower; (ii) enable the Borrower to comply with its obligations under this Agreement; and (iii) achieve the purposes of the Project. (fb) Unless Without limitation upon the Bank provisions of paragraph (a) of this Section, and except as the Recipient and the Administrator shall otherwise agree, the Borrower Recipient shall not amend, abrogate or waive the provisions of the MCR applicable to the Program. (g) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms and conditions satisfactory to the Bank, not later than six months after the date of the Amending Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of carry out the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive or fail to enforce any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory the Implementation Program set forth in Schedule 3 to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendationsthis Agreement. Section 3.02. Except as the Bank Administrator shall otherwise agree, procurement of the goods, works and consultants’ services required for the carrying out of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan Grant shall be made in accordance with governed by the provisions of Schedule 2 4 to the Project this Agreement. (a) The Borrower Recipient shall maintain or cause to be maintained records and accounts adequate to reflect in accordance with sound accounting practices the operations, resources and expenditures in respect of the Project of the departments or agencies of the Recipient responsible for carrying out the Project or any part thereof. (b) The Recipient shall: : (i) have the records and accounts referred to in paragraph (a) of this Section for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Administrator; (ii) furnish to the Bank by October 31 Administrator as soon as available, but in any case not later than four months after the end of each such year, for its review the report of such audit by said auditors, of such scope and comment, in such detail as the proposed POA and budget for the Project and for the Northeast Rural Development Program for the following fiscal yearAdministrator shall have reasonably requested; (ii) afford the Bank a reasonable opportunity to comment on any modifications the Borrower may intend to introduce to such proposed POA and budget; and and (iii) furnish to the Bank by January 1 Administrator such other information concerning said records and accounts and the audit thereof as the Administrator shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Account were made on the basis of statements of expenditure, the Recipient shall: (i) maintain or cause to be maintained, in each accordance with paragraph (a) of this Section, records and accounts reflecting such expenditures; (ii) retain, until at least one year after the administrative regulation approving Administrator has received the POA audit for the fiscal year in which is being initiated on the last withdrawal from the Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such date expenditures; (iii) enable the Administrator’s representatives to examine such records; and (iv) ensure that such records and by March 15 accounts are included in each year the final approved version of such budget. annual audit referred to in paragraph (b) In order of this Section and that the report of such audit contains a separate opinion by said auditors as to assist whether the EMBRAPA statements of expenditure submitted during such fiscal year, together with the proce-dures and internal controls involved in carrying out Part H of their preparation, can be relied upon to support the Project, the Borrower shall cause EMBRAPA, under contractual arrangements satisfactory to the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the bank in August 1981related withdrawals. Section 3.04. The Bank and Without limitation upon the Borrower hereby agree that the obligations set forth in Sections 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09 applicable provisions of Article IX of the General Conditions Conditions, the Recipient shall: (relating a) prepare, on the basis of guidelines acceptable to insurancethe Administrator, use of goods and servicesfurnish to the Administrator not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Recipient and the Administrator, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out, or caused a plan designed to be carried out, by (i) ensure the State in respect continued achievement of the State objectives of the Project; (b) afford the Administrator a reasonable opportunity to exchange views with the Recipient on said plan; and (c) thereafter, carry out said plan with due diligence and byefficiency and in accordance with appropriate practices, taking into account the Administrator’s comments thereon.

Execution of the Project. (a) The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and and, to this end end, shall cause: (i) SDR to coordinate (at the federal level) and issue guidelines related to the carrying out of the Program, to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely manner; (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, to carry out the credit program included in Parts D and I of the Project; and (iv) EMBRAPA to carry out Part H of the Project, all Project with due diligence and efficiency, efficiency and in accordance conformity with appropriate administrative, environmental and financial practices, and agricultural practices. (b) Without any limitation or restriction upon any of its other obligations under the Loan Agreementshall provide, promptly as needed, the Borrower shall cause the State, under contractual arrangements satisfactory to the Bank, to perform in accordance with the provisions of the Project Agreement, all the respective obligations of the State therein set forth, shall take or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable the State to perform its obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (c) Without limitation to its obligations under paragraph (a) above, the Borrower shall: (i) take all action as shall be required to regulate, in a manner satisfactory to the Bank, the funding procedures which will ensure that the Executing Entities shall have the funds resources required for carrying out the Project available to them in a timely manner; and (ii) provide or cause SUDENE to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h) of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H of the Project and under the State Project, respectively, as provided in each POA. (d) The Borrower shall make the proceeds of the Loan allocated respectively: (i) for purposes of the State Project available to the State; and (ii) for Part H of the Project available to EMBRAPA; under arrangements satisfactory to the Bank. (e) The Borrower, through DTN, shall enter into agreements, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions of Schedule 5 to this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program; (B) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject in such manner as to: (i) protect the interest of the Bank and the Borrower; (ii) enable the Borrower to comply with its obligations under this Agreement; and (iii) achieve the purposes of the Project. (fb) Unless Without limitation upon the provisions of paragraph (a) of this Section and except as the Borrower and the Bank shall otherwise agree, the Borrower shall not amendcarry out the Project, abrogate or waive cause the provisions of the MCR applicable to the Program. (g) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds Project to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shallcarried out, in accordance with: (i) cause EMBRAPA to enter into an agreement with SUDENE, on Provincial PIAs and Local PIAs the terms and conditions satisfactory to the Bank, not later than six months after the date of the Amending Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of the Project and except as the Bank which shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive or fail to enforce any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference be satisfactory to the Bank, and shall, immediately thereafter, if recommended by such review, amend (ii) the Program, taking into account such recommendationsImplementation Program set forth in Schedule 5 to this Agreement. Section 3.02. Except as the Bank shall otherwise agree, procurement of the goods, works and consultants’ services required for the carrying out of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan shall be made in accordance with governed by the provisions of Schedule 2 4 to the Project this Agreement. (a) The Borrower shall: shall make funds available (iwhich funds shall include a portion of the proceeds of the Loan) furnish to a Participating Local Government under a Domestic Lending Arrangement to be entered into between the Bank Borrower, through its Ministry of Finance, and such Participating Local Government, under terms and conditions which shall have been approved by October 31 the Bank, including those set out in each year, for its review and comment, the proposed POA and budget for the Project and for the Northeast Rural Development Program for the following fiscal year; (ii) afford the Bank a reasonable opportunity to comment on any modifications the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budgetSchedule 7 hereto. (b) In order The Borrower shall exercise its rights under each Provincial PIA, each Local PIA and each DLA in such manner as to assist protect the EMBRAPA in carrying out Part H interests of the ProjectBorrower and the Bank and to accomplish the purposes of the Loan, and except as the Bank shall otherwise agree, the Borrower shall not assign, amend, abrogate or waive any Provincial PIA, Local PIA or DLA or any provisions thereof. Section 3.04. The Borrower shall approve, or cause EMBRAPAto be approved by Participating Local Governments, under contractual arrangements all subprojects only after they have been appraised using procedures satisfactory to the Bank which procedures shall include provisions for resettlement, if necessary, and on environmental impact; provided that, all subprojects estimated to cost more than Rp 4 billion shall also be appraised by the Bank; provided further that, revisions to any such subproject and any change of 20% or more in a Participating Local Government’s expenditure program shall be agreed by the Bank prior to such revision or change taking effect. Section 3.05. The Borrower shall take all necessary steps to ensure that during the construction period of a PDAM all revenues of such PDAM shall be retained by the PDAM. Section 3.06. The Borrower shall have prepared by April 1, 1992, an action plan and timetable, including financial analysis and plans for adjusting tariffs consistent with the requirements of Section 4.02 and 4.03 of this Agreement, satisfactory to the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to convert all BPAMs in the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the bank in August 1981Project Provinces into PDAMs. Section 3.043.07. The Bank and the Borrower hereby agree that the obligations set forth in Sections 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried carry out, or caused cause to be carried out, by (i) June 30, 1993, a comprehensive review assessing the State in respect progress of the State Project, which review shall emphasize, and byevaluate expenditures relating to operations and maintenance, and shall revise the expenditure program and financing plans, as necessary, within the agreed totals for such program. Section 3.08. The Borrower shall carry out, or cause to be carried out, by June 30 of each year of the Project, a review of the operations and maintenance program of each Participating Local Government, and shall take all necessary steps to ensure that such expenditures are at least 90% of the agreed totals for such Local Government. Section 3.09. The Borrower shall take all necessary steps to cause each Participating Local Government to have in place, within three months of each Participating Local Government receiving funds under the Project, a Project accounting system satisfactory to the Bank.

Execution of the Project. (a) Section 3.01. The Borrower Recipient declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and and, to this end end, shall cause: (i) SDR to coordinate (at the federal level) and issue guidelines related to the carrying out of the Program, to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely manner; (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, to carry catty out the credit program included in Parts D and I of the Project; and (iv) EMBRAPA to carry out Part H of the Project, all Project through DOE with due diligence and efficiency, efficiency and in accordance conformity with appropriate administrative, economic, engineering, and financial practices and agricultural practices. (b) Without any limitation or restriction upon any of its other obligations under the Loan Agreementwith due regard to ecological and environmental factors, and shall provide, promptly as needed, the Borrower shall cause the State, under contractual arrangements satisfactory to the Bank, to perform in accordance with the provisions of the Project Agreement, all the respective obligations of the State therein set forth, shall take or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable the State to perform its obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (c) Without limitation to its obligations under paragraph (a) above, the Borrower shall: (i) take all action as shall be required to regulate, in a manner satisfactory to the Bank, the funding procedures which will ensure that the Executing Entities shall have the funds resources required for carrying out the Project available to them in a timely manner; and (ii) provide or cause SUDENE to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h) of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H of the Project and under the State Project, respectively, as provided in each POA. (d) The Borrower shall make the proceeds of the Loan allocated respectively: (i) for purposes of the State Project available to the State; and (ii) for Part H of the Project available to EMBRAPA; under arrangements satisfactory to the Bank. (e) The Borrower, through DTN, shall enter into agreements, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions of Schedule 5 to this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program; (B) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject in such manner as to: (i) protect the interest of the Bank and the Borrower; (ii) enable the Borrower to comply with its obligations under this Agreement; and (iii) achieve the purposes of the Project. (f) Unless the Bank shall otherwise agree, the Borrower shall not amend, abrogate or waive the provisions of the MCR applicable to the Program. (g) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms and conditions satisfactory to the Bank, not later than six months after the date of the Amending Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive or fail to enforce any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendations. Section 3.02. Except as the Bank Trustee shall otherwise agree, procurement of the goods, works and consultants’ services required for the carrying out of the Project assigned to EMBRAPA Project, and to be financed out of the proceeds of the Loan XXX Xxxxx, shall be made governed by the provisions of Schedule 3 to this Agreement. Section 3.03. For the purposes of the implementation of the Project, the Recipient shall: (a) make the proceeds of the OTF Grant available to DOE and promptly thereafter, cause ODE to make the appropriate proceeds of the OTF Grant available to each Beneficiary to carry out its respective Sub-project, under a Sub-grant Agreement, which shall have been approved by the Trustee, to be entered into between DOE and each Beneficiary in accordance with the provisions of Section 3.05 of, and Schedule 4 to, this Agreement; and (b) cause DOE to enter into a Memorandum of Agreement with CETEC appointing CETEC as the implementing agent for the Project, which agreement shall have been approved by the Trustee and be in accordance with the provisions of Schedule 2 5 to the Project this Agreement. (a) The Borrower shall: (i) furnish Recipient shall prepare, or cause to be prepared, Operating Policy Guidelines, satisfactory to the Bank by October 31 in each yearTrustee, for its review setting forth the terms and comment, the proposed POA conditions and budget related procedures for the Project and for the Northeast Rural Development Program for the following fiscal year; (ii) afford the Bank a reasonable opportunity to comment on any modifications the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish conditions precedent to the Bank by January 1 in each year effectiveness of such-projects and the administrative regulation approving contracting, processing, financing and monitoring the POA for carrying out of Sub-projects, which Guidelines shall include, inter alia, a model Sub-grant Agreement satisfactory to the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budgetTrustee. (b) In order When submitting a Sub-project to assist the EMBRAPA Trustee for approval of the Trustee or the Executive Committee (as the case may be, pursuant to Sub-paragraphs 2 (b) and (c) of Schedule 1 to this Agreement), the Recipient shall furnish to the Trustee an application, in carrying form and substance satisfactory to the Trustee, containing inter alia: (i) an appraisal of the Sub-project, in accordance with the provisions of OPG and description of the expenditures proposed to be financed out Part H of the proceeds of the OTF Grant. (ii) a certification issued by DOE confirming that the proposed Sub-project complies with the environmental regulations of the Recipient. (iii) a draft sub-grant Agreement; and (iv) such other information as the Trustee or the Executive Committee shall reasonably request in respect of such Sub-project. (a) The Recipient shall cause DOE to enter into a Sub-grant Agreement with each Beneficiary, under terms and conditions acceptable to the Trustee, including those set forth in schedule 4 to this Agreement, providing for the transfer, on a grant basis, of the proceeds of the OTF Grant allocated to such Beneficiary’s Sub-project and the obligation of the Beneficiary to carry out such Sub-project. (b) The Recipient shall cause DOE to exercise its rights under the Sub-grant Agreement in such a manner as to protect the interests of the Recipient, DOE and the Trustee and to accomplish the purposes of the OTF Grant, and, except as the Trustee shall otherwise agree, the Recipient shall not permit DOE to assign, amend, abrogate or waive the Sub-grant Agreement or any part thereof. Section 3.06. For each Sub-project approved by the Trustee in accordance with the provisions of this Agreement, CETEC shall be entitled to an agency fee in an amount not to exceed the equivalent of three percent (3%) of the amounts disbursed under each Sub-grant Agreement, such fee to be paid out of the proceeds of the OTF Grant as follows: (a) one percent (1 %) of the Sub-grant amount after approval of the Sub-project by the Trustee; and (b) the remaining two percent (2%), pro-rata, on the dates of disbursement of the Sub-grant proceeds under the Sub-grant Agreement. Section 3.07. The Recipient shall, during the execution of the Project, maintain DOE's Montreal Protocol Desk, responsible for the Borrower shall cause EMBRAPA, under contractual arrangements satisfactory to the Bank, to employ consultants whose qualifications, experience overall management and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis coordination of the "Guidelines for implementation of the Use of Consultants by World Bank Borrowers Project, with qualified staff in adequate numbers and by the World Bank as Executing Agency" published by the bank in August 1981with all necessary resources. Section 3.043.08. Except as the Recipient shall otherwise agree, the Recipient and DOE shall, carry out annual reviews, jointly with the Trustee, to monitor progress in Project implementation, including the need for adjustments to the MOA, the OPG, and the model Sub-grant Agreement, when such amendments shall be deemed to be necessary to achieve Project objectives. The Bank and the Borrower hereby agree that the obligations set forth in Sections 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09 first of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) such annual reviews shall be carried out, or caused to be carried out, out by not later than six (i6) months after the State in respect of the State Project, and byEffective Date.

Execution of the Project. (a) The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and and, to this end shall cause: (i) SDR to coordinate (at the federal level) and issue guidelines related to the carrying out of the Programend, to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely manner; (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, to carry out the credit program included in Parts D and I of the Project; and (iv) EMBRAPA to carry out Part H of the Project, all with due diligence and efficiency, in accordance with appropriate administrative, financial and agricultural practices. (b) Without without any limitation or restriction upon any of its other obligations under the Loan Agreement, shall carry out the Project with the participation of the Participating Cities. To that end, the Borrower shall act through the CPIU, shall cause the State, under contractual arrangements satisfactory to the Bank, CPIU to perform in accordance with the provisions of the Project Agreement, Agreement all the respective obligations of the State CPIU therein set forth, shall take or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable the State CPIU to perform its obligationssuch obligations and the Participating Cities to carry out their obligations in respect of the Project, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (cb) Without limitation to its obligations under paragraph (a) above, the The Borrower shall: (i) take all action as shall be required to regulate, in a manner satisfactory make available to the Bank, the funding procedures which will ensure that the Executing Entities shall have the funds required for carrying out the Project available to them in a timely manner; and (ii) provide or cause SUDENE to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h) of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H of the Project and under the State Project, respectively, as provided in each POA. (d) The Borrower shall make CPIU the proceeds of the Loan allocated respectively: from time to time to Categories (i1) for purposes (b) and (4) of the State Project available table set forth in paragraph 1 of Schedule 1 to the Statethis Agreement; and (ii) for Part H of the Project available to EMBRAPA; under arrangements satisfactory to the Bank. (e) The Borrower, through DTN, shall enter into agreements, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend relend the proceeds of the Loan allocated for purposes from time to time to each of the credit programs included in Parts D sub-Categories of Category (2) of such table to the respective Participating City and I the pro-rated portion allocated to Categories 1 (a), 3, one-half of 5 and 6 of such table under subsidiary loan agreements (the Participating City Subsidiary Loan Agreement) to be entered into among the Borrower, each of the Project Participating Cities, and the Government of the Oblast or Republic in accordance with: Agreement; and 1. which the Participating Cities are located, providing for Participating City Subsidiary Loans, under terms and conditions set forth in Schedule 5 to this 2. acceptable to the extent that they are compatible with Bank which shall include: (i) the principal amount of each Participating City Loan will be denominated in Dollars and be the equivalent amount withdrawn from the Loan Account, or the payment out of the Special Account, and the Participating Cities shall carry the foreign exchange risk; (ii) each Participating City shall pay: (1) interest on the principal amount of the Participating City Subsidiary Loan withdrawn and outstanding from time to time, at a variable interest rate equal to the rate applicable pursuant to the provisions of Schedule 5 Section 2.05 of this Agreement plus a xxxx-up of up to 250 basis points; and (2) a commitment charge on the amount relent to the respective Participating City Subsidiary Loan not withdrawn from time to time at the same rate as applicable under the provisions of Section 2.04 of this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program; (Biii) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish City Subsidiary Loan shall have a grace period of six years and a final maturity of 14 to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries15 years; and (Fiv) exercise its rights in relation to each Subproject in such manner as to: (i) protect the interest implementation responsibilities of the Bank respective Participating City in respect of Parts A.4, B and the Borrower; (ii) enable the Borrower to comply with its obligations under this Agreement; and (iii) achieve the purposes C of the Project. (fc) Unless The Borrower shall exercise its rights under each Participating City Subsidiary Loan Agreement in such manner as to protect the interests of the Borrower and the Bank and to accomplish the purposes of the Loan, and, except as the Bank shall otherwise agree, the Borrower shall not assign, amend, abrogate or waive the provisions of the MCR applicable to the Program. (g) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms and conditions satisfactory to the Bank, not later than six months after the date of the Amending Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive Participating City Subsidiary Loan Agreement or fail to enforce any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendationsthereof. Section 3.02. Except as the Bank shall otherwise agree, procurement procure- ment of the goods, works and consultants’ services required for the carrying out of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan shall be made in accordance with governed by the provisions of Schedule 2 4 to the Project this Agreement. (a) The Borrower shall: (i) furnish to the Bank by October 31 in each year, for its review and comment, the proposed POA and budget for the Project and for the Northeast Rural Development Program for the following fiscal year; (ii) afford the Bank a reasonable opportunity to comment on any modifications the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budget. (b) In order to assist the EMBRAPA in carrying out Part H of the Project, the Borrower shall cause EMBRAPA, under contractual arrangements satisfactory to the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the bank in August 1981. Section 3.043.03. The Bank and the Borrower hereby agree that the obligations set forth in Sections 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out, or caused to be carried out, by (i) the State in respect of the State Project, and byand

Execution of the Project. (a) The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and and, to this end end, shall cause: (i) SDR to coordinate (at the federal level) and issue guidelines related to the carrying out of the Program, to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely manner; (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, to carry out the credit program included in Parts D and I of the Project; and (iv) EMBRAPA to carry out Part H of the Project, all Project through SCT with due diligence and efficiency, efficiency and in accordance conformity with appropriate administrativescientific, technological, administrative and financial practices and agricultural practicesthe provisions of the PADCT II Guidelines, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without any limitation or restriction upon any The Borrower, through SCT, shall maintain as Executive Secretary of its other obligations under the Loan Agreement, the Borrower shall cause the State, under contractual arrangements PADCT II a person with qualifications and experience satisfactory to the Bank. (c) The Borrower shall, to perform in accordance with the provisions of the Project AgreementPADCT II Guidelines and the Sub-program Proposals, all the respective obligations cause: (i) Sub-projects to be selected: (A) by technical committees consisting mainly of members of the State therein set forth, shall take or cause Borrower’s science and business communities; (B) on a competitive basis; and (C) taking in due consideration the need to strengthen existing centers of excellence; (ii) Grants to be taken all action, including made on the provision basis of funds, facilities, services multi-year financing and other resources, necessary or appropriate to enable in amounts consistent with the State to perform its obligations, parameters for minimum and shall not take or permit average amounts of the Grants; and (iii) the amounts of the Grants to be taken any action which would prevent or interfere with such performanceadjusted by an official index to be determined by the Borrower in order to achieve the objectives of the Sub-projects. (cd) Without limitation to its obligations under the provisions of paragraph (ac) above, the Borrower shall: (i) take all action as shall be required to regulateestablish, in not later than two months after the Effective Date, a manner high-level technical advisory committee, composed of experts with qualifications and experience satisfactory to the Bank, to appraise and recommend the funding procedures which will ensure that approval of metrology Sub-projects under Part A (10) of the Executing Entities shall have the funds required for carrying out the Project available to them in a timely mannerProject; and (ii) provide or cause SUDENE require the proposals for such Sub-projects to provide advances in Cruzeiros intoinclude information on, and such appraisals and recommendations to take into account: (A) an account opened the availability of technical staff by the proposed Beneficiary in adequate numbers and operated by EMBRAPAwith the required qualifications; and (B) an account opened the strategies and operated actions to be taken (including improvement of management and recruitment and training of qualified staff) to improve the quality of the services provided by the State, as referred to in Section 2.01 (h) of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H of the Project and under the State Project, respectively, as provided in each POA. (d) The Borrower shall make the proceeds of the Loan allocated respectively: (i) for purposes of the State Project available to the State; and (ii) for Part H of the Project available to EMBRAPA; under arrangements satisfactory to the Bankproposed Beneficiary. (e) The BorrowerBorrower undertakes to maintain, through DTN, shall enter into agreements, with functions and other terms of reference satisfactory to the Bank, with each a review and advisory board (GEA) in charge of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D examining and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions of Schedule 5 to this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program; (B) allocate formulating recommendations on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject in such manner as to: (i) protect the interest of the Bank and the Borrower; (ii) enable the Borrower to comply with its obligations under this Agreement; and (iii) achieve the purposes of the Project. (f) Unless The Borrower shall cause the Entities, in accordance with the provisions of the PADCT II Guidelines and Sub-program Proposals, to act as the Borrower’s agencies for providing Grants. For this purpose, without limitation to the provisions of paragraph (a) above, the Borrower, through the Treasury, shall, in each fiscal year, make available the funds, either originating from the proceeds of the Loan or from the Borrower’s budget, required to be transferred to the Entities for the financing of Sub-projects, in accordance with, and within the periods of time set forth in, the relevant Plano de Aplicacao. (g) Except as the Bank shall may otherwise agree, the Borrower shall not amend, abrogate modify or waive the provisions any provision of the MCR applicable to the Program. (g) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao)PADCT II Guidelines and Sub-program Proposals. (h) the The Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENEshall maintain contractual arrangements, on terms and conditions satisfactory to the Bank, not later than six months after with FINEP and CNPQ (the date Contractual Arrangements) for purposes of the Amending Agreement, such agreement to define governing the respective responsibility participation of SUDENE FINEP and EMBRAPA regarding Part H CNPQ in the execution of the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive or fail to enforce any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendations. Section 3.02. Except as the Bank shall otherwise agree, procurement of the goods, works and services required for the carrying out of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan shall be made in accordance with the provisions of Schedule 2 to this Agreement and the Project Agreement. (a) The Borrower shall: (i) furnish to the Bank by October 31 in each year, for its review and comment, the proposed POA and budget for the Project and for the Northeast Rural Development Program for the following fiscal year; (ii) afford the Bank a reasonable opportunity to comment on any modifications the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budget. (b) In order to assist the EMBRAPA in carrying out Part H of the Project, the Borrower shall cause EMBRAPA, under contractual arrangements satisfactory to the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the BankPADCT II Guidelines, such consultants arrangements to be selected in accordance with principles provide, inter alia, that FINEP and procedures satisfactory to the Bank on the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the bank in August 1981. Section 3.04. The Bank and the Borrower hereby agree that CNPQ shall carry out the obligations set forth in Sections 9.04, 9.05, 9.06, 9.07, 9.07 and 9.08 and 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reportsreports and maintenance) in respect of their respective participation in the carrying out of the Project. (a) The Borrower undertakes that, maintenance and land acquisitionunless the Bank shall otherwise agree, respectively) Grants shall be carried out, or caused to be carried outmade on terms whereby the Entity shall obtain, by written contract with the Beneficiary or by other appropriate legal means, rights adequate to protect the interests of the Bank and the Borrower, including the right to: (i) require the State Beneficiary to carry out and operate the Sub-project with due diligence and efficiency and in respect accordance with sound scientific, technological, administrative and financial practices and to maintain adequate records; (ii) require that: (A) the goods, works and services to be financed out of the State Projectproceeds of the Loan shall be procured in accordance with the provisions of Schedule 4 to this Agreement; and (B) such goods, works and services shall be used exclusively in the carrying out of the Sub-project; (iii) inspect, by itself or jointly with representatives of the Bank if the Bank shall so request, such goods and facilities included in the Sub-project, the operation thereof, and byany relevant records and documents; (iv) require that: (A) the Beneficiary shall take out and maintain with responsible insurers such insurance, against such risks and in such amounts, as shall be consistent with sound business prac-xxxx; and

Execution of the Project. (a) The Borrower declares its commitment to the objectives of the Program and the Project as set forth in Schedule 2 to this Agreement, and to this end shall cause: (i) SDR to coordinate (at the federal level) and issue guidelines related to the carrying out of the Program, to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely manner; (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, to carry out the credit program included in Parts D and I of the Project; and (iv) EMBRAPA to carry out Part H of the Project, all with due diligence and efficiency, in accordance with appropriate administrative, financial and agricultural practices.Schedule (b) Without any limitation or restriction upon any of its other obligations under the Loan this Development Credit Agreement, the Borrower shall cause the State, under contractual arrangements satisfactory to the Bank, TPTC to perform in accordance with the provisions of the Project Agreement, with respect to Parts B and C of the Project, all the respective obligations of the State TPTC therein set forth, shall take or and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable the State TPTC to perform its such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (c) Without limitation to its obligations under paragraph (a) above, The Borrower shall make $20,000,000 equivalent of the Borrower shall: (i) take all action as shall be required to regulate, in a manner satisfactory to proceeds of the Bank, the funding procedures which will ensure that the Executing Entities shall have the funds required for carrying out the Project Credit available to them in a timely manner; and (ii) provide or cause SUDENE to provide advances in Cruzeiros into: (A) TPTC as an account opened and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h) of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H of the Project and under the State Project, respectively, as provided in each POAequity contribution. (d) The Borrower shall make relend $53,500,000 equivalent of the proceeds of the Loan allocated respectively: (i) for purposes Credit to TPTC under a subsidiary loan agreement to be entered into between the Borrower and TPTC, under terms and conditions which shall have been approved by the Association, which shall include, inter alia, an interest rate of at least 8% per annum, with the State Project available principal to be repaid in twenty years including a grace period of five years, and with TPTC bearing the State; and (ii) for Part H cost of fluctuations in the Project available currencies relent to EMBRAPA; under arrangements satisfactory to the Bankit. (e) The Borrower, through DTN, Borrower shall enter into agreements, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions of Schedule 5 to this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program; (B) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject under the Subsidiary Loan Agreement in such manner as to: (i) to protect the interest interests of the Bank Borrower and the Borrower; (ii) enable the Borrower Association and to comply with its obligations under this Agreement; and (iii) achieve accomplish the purposes of the Project. (f) Unless Credit, and except as the Bank Association shall otherwise agree, the Borrower shall not assign, amend, abrogate or waive the provisions of the MCR applicable to the Program. (g) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms and conditions satisfactory to the Bank, not later than six months after the date of the Amending Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive Subsidiary Loan Agreement or fail to enforce any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendationsthereof. Section 3.02. Except as the Bank Association shall otherwise agree, procurement of the goods, works and consultants’ services required for the carrying out Part A of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan Credit shall be made in accordance with governed by the provisions of Schedule 2 3 to the Project this Agreement. (a) Section 3.03. The Borrower shall: (i) furnish to the Bank by October 31 in each year, for its review and comment, the proposed POA and budget for the Project and for the Northeast Rural Development Program for the following fiscal year; (ii) afford the Bank a reasonable opportunity to comment on any modifications the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budget. (b) In order to assist the EMBRAPA in carrying out Part H of the Project, the Borrower shall cause EMBRAPA, under contractual arrangements satisfactory to the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the bank in August 1981. Section 3.04. The Bank and the Borrower Association hereby agree that the obligations set forth in Sections 9.04, 9.05, 9.06, 9.07, 9.03 through 9.08 and 9.09 of the General Conditions (relating to insurance, use of goods and servicesser- vices, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried outout by TPTC pursuant to Section 2.03 of the Project Agreement. Section 3.04. The Borrower shall by March 31, 1994: (a) esta- xxxxx a regulatory body for telecommunications and transfer responsibility for regulation of the telecommunications sector to said body; and (b) take all actions necessary to permit private sector involvement in Basic and Non Basic Telecommunications Services. Section 3.05. The Borrower shall: (a) by December 31, 1993, take all actions necessary to issue or caused cause to be issued at least one license for a cellular operator on the basis of competitive bidding procedures, satisfactory to the Association; and (b) by December 31, 1995, take all actions necessary to issue licenses to private sector operations or investors for two other Non-Basic Telecommunications Services. Section 3.06. The Borrower shall, by no later than March 31, 1994, take all necessary measures to establish two new entities to be responsible respectively for TPTC’s postal and telecommunica- tions functions. Section 3.07. The Borrower shall, by the date of the mid-term review: (a) furnish to the Association for its review and comments the recommendations of the study to be carried outout under Part A.6 of the Project; and (b) prepare and submit to the Association an action plan, taking into account the Association’s comments, for the involvement of the private sector in the telecommunications sector. Section 3.08. The Borrower shall prepare or cause to be prepared annually, for the Association’s review, a comparative analysis of the actual performance of TPTC against the performance indicators in the MOU and as indicated in the Annex to Schedule 2 to the Project Agreement. (a) The Borrower shall, and shall cause TPTC to, by not later than December 31, 1995, carry out jointly with the Association and the Donors, a mid-term review of the Project. Such review shall include, inter alia, an assessment of: (i) satisfactory compliance with the State in respect Project implementation schedule; (ii) satis- factory compliance with the performance indicators; (iii) the establishment of a legal and regulatory framework for telecom- munications; (iv) operation of the State Project, and byregulatory body for telecom- munications; (v) issuance of licenses to private sector operators;

Execution of the Project. (a) The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and and, to this end shall cause: (i) SDR to coordinate (at the federal level) and issue guidelines related to the carrying out of the Programend, to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely manner; (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, to carry out the credit program included in Parts D and I of the Project; and (iv) EMBRAPA to carry out Part H of the Project, all with due diligence and efficiency, in accordance with appropriate administrative, financial and agricultural practices. (b) Without without any limitation or restriction upon any of its other obligations under this Agreement shall: (i) carry out Part C (3) of the Loan AgreementProject through MOP; (ii) with respect to Parts A and C (1) of the Project, the Borrower shall cause the State, under contractual arrangements satisfactory to the Bank, HUDC to perform in accordance with the provisions of the HUDC Project Agreement, Agreement all the respective obligations of HUDC therein set forth; and (iii) with respect to Parts B and C (2) of the State Project, cause CVDB to perform in accordance with the provisions of the CVDB Project Agreement all the obligations of CVDB therein set forth, all with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, and environmental practices, and shall take or and cause to be taken all action, including the provision of funds, facilities, services and other resources, resources required for the Project and necessary or appropriate to enable the State HUDC and CVDB to perform its their respective obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (cb) Without limitation to its obligations under paragraph For the purposes of Parts A and C (a) above, the Borrower shall: (i) take all action as shall be required to regulate, in a manner satisfactory to the Bank, the funding procedures which will ensure that the Executing Entities shall have the funds required for carrying out the Project available to them in a timely manner; and (ii) provide or cause SUDENE to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h1) of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H of the Project and under the State Project, respectively, as provided in each POA. (d) The the Borrower shall make the proceeds of the Loan allocated respectively: from time to time to Categories (i1) for purposes (a), (2) (a) and (3) (a) of the State Project table in paragraph 1 of Schedule 1 to this Agreement available to the State; and (ii) for Part H of the Project available HUDC under a Subsidiary Finance Agreement to EMBRAPA; under arrangements satisfactory to the Bank. (e) The Borrower, through DTN, shall enter be entered into agreements, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions of Schedule 5 to this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program; (B) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject in such manner as to: (i) protect the interest of the Bank and the Borrower; (ii) enable between the Borrower to comply with its obligations under this and HUDC (the HUDC Subsidiary Finance Agreement; and (iii) achieve the purposes of the Project. (f) Unless the Bank shall otherwise agree, the Borrower shall not amend, abrogate or waive the provisions of the MCR applicable to the Program. (g) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms and conditions satisfactory to the Bank, not later than six months after . (c) For the date purposes of Part B and C (2) of the Amending AgreementProject, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H Borrower shall make the proceeds of the Project Loan allocated from time to time to Categories (1) (b), (2) (b) and (3) (b) of the table in paragraph 1 of Schedule 1 to this Agreement available to CVDB under a Subsidiary Finance Agreement to be entered into between the Borrower and CVDB (the CVDB Subsidiary Finance Agreement) on terms and conditions satisfactory to the Bank. (d) The Borrower shall exercise its rights under the CVDB Subsidiary Finance Agreement and the HUDC Subsidiary Finance Agreement in such manner as to protect the interests of the Borrower and the Bank and to accomplish the purposes of the Loan, and, except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA shall not to assign, amend, abrogate, abrogate or waive the CVDB Subsidiary Finance Agreement or fail to enforce the HUDC Subsidiary Finance Agreement or any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendationsthereof. Section 3.02. Except as the Bank shall otherwise agree, procurement of the goods, works works, and consultants’ services required for the carrying out of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan shall be made in accordance with governed by the provisions of Schedule 2 4 to the Project this Agreement. (a) Section 3.03. The Borrower shall: (i) furnish to and the Bank by October 31 in each year, for its review and comment, the proposed POA and budget for the Project and for the Northeast Rural Development Program for the following fiscal year; (ii) afford the Bank a reasonable opportunity to comment on any modifications the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budget. (b) In order to assist the EMBRAPA in carrying out Part H of the Project, the Borrower shall cause EMBRAPA, under contractual arrangements satisfactory to the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the bank in August 1981. Section 3.04. The Bank and the Borrower hereby agree that the obligations set forth in Sections 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of Part A of the Project shall be carried out, or caused to out by HUDC and in respect of Part B of the Project shall be carried outout by CVDB pursuant to Section 2.04 of the HUDC Project Agreement and the CVDB Project Agreement, by respectively. (a) For the purpose of ensuring the proper coordination and efficient execution of the Social Productivity Program, the Community Infrastructure Program, and the Project, the Borrower shall continue to maintain the Steering Committee. (b) For the purpose of ensuring the proper supervision of the execution of the Project, the Borrower shall maintain the PMU within the MOP, with organization, staffing and terms of reference satisfactory to the Bank. Section 3.05. The Borrower shall require the PMU within MOP to: (i) ensure that Subprojects are appraised in accordance with the State in respect Operations Manual; (ii) ensure that land is acquired for the construction of new buildings under the Project; (iii) ensure that easements and rights of way exist for all roads and pipelines to be constructed under Parts A (1) and B of the State Project; (iv) ensure that only existing roads, footpaths and pipelines are upgraded and rehabilitated under Part A (2) of the Project, and bythat such roads, footpaths and pipelines are in accordance with planning layouts and circulation plans available at the Department of Palestinian Affairs; (v) ensure that Subprojects will not require any involuntary relocation; (vi) supervise the preparation of summary environmental assessments, satisfactory to the Bank, identifying any potential adverse environmental effects that might result from proposed Subprojects; and (vii) ensure that proposed Subprojects estimated to cost $700,000 or more are furnished to the Bank for its approval. Section 3.06. The Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with the indicators agreed upon between the Borrower and the Bank, the carrying out of the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference satisfactory to the Bank, and furnish to the Bank, on or about January 31st of each year, a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the Bank, by February 15th of each year, or such later date as the Bank shall request, the report referred to in subparagraph (b) of this paragraph, and, thereafter, take all measures required to ensure the efficient completion of the Project and the achievement of the objectives thereof, based on the conclusions and recommendations of the said report and the Bank’s views on the matter; provided however, that the review to be conducted in 1999 shall be a mid-term review of the Project. Section 3.07. For the purposes of Section 9.08 of the General Conditions and without limitation thereto, the Borrower shall: (a) prepare, on the basis of guidelines acceptable to the Bank and furnish to Bank not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Bank, a plan for the future operation of the Project; and (b) afford the Bank a reasonable opportunity to exchange views with the Borrower on said plan.

Execution of the Project. (a) The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and and, to this end shall cause: end: (i) SDR to coordinate (at the federal level) shall, through PWD, carry out Parts B, C.3, D.1 and issue guidelines related to the carrying out D.2 of the ProgramProject; through DLSE, to propose annual budgets for such Program carry out Parts C.1, C.2 and to take all actions necessary to ensure the availability D.4 of the counterpart funds for the carrying out of such Program in a timely mannerProject; (ii) SUDENE to coordinate (at the regional level)through TCB, supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, to carry out the credit program included in Parts D and I Part D.3 of the Project; and (iv) EMBRAPA to through the Treasury Department, carry out Part H E of the Project, all with due diligence and efficiency, efficiency and in accordance conformity with appropriate administrativeadministrative and financial practices and shall provide, financial or cause to be provided, promptly as needed, the funds, facilities, services and agricultural practices.other resources required for said Parts of the Project; and (bii) Without without any limitation or restriction upon any of its other obligations under the Loan Credit Agreement, the Borrower shall cause SAA to carry out Parts A and D.5 of the State, under contractual arrangements satisfactory to the BankProject, to perform in accordance with the provisions of the Project Agreement, Agreement all the respective of its obligations of the State therein set forth, all with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, and technical practices, and shall take or cause to be taken all action, including the provision of funds, facilities, services and other resources, resources necessary or appropriate to enable the State SAA to perform its such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (cb) Without limitation to its obligations under upon the provisions of paragraph (a) aboveof this Section and except as the Borrower and the Association shall otherwise agree, the Borrower shall: shall cause the Project to be carried out in accordance with the Implementation Program set forth in Schedule 4 to this Agreement. (c) For the purposes of Parts A and D.5 of the Project, the Borrower shall relend the proceeds of the Credit allocated from time to time to Categories 1(a), 2(a), and 3(a) of the table in paragraph 1 of Schedule 1 to this Agreement to SAA under a subsidiary loan agreement to be entered into between the Borrower and SAA (the Subsidiary Loan Agreement) under terms and conditions which shall have been approved by the Association. Except as the Association shall otherwise agree, such terms and conditions shall include the following: (i) take all action as the principal amount of the subsidiary loan shall be required to regulate, repaid by SAA in a manner satisfactory local currency to the BankBorrower in equal semi-annual installments over thirty years, the funding procedures which will ensure that the Executing Entities shall have the funds required for carrying out the Project available to them in including a timely manner; and grace period of five years; (ii) provide the principal amount of the subsidiary loan repayable by SAA shall be the equivalent in local currency (determined as of the date, or cause SUDENE to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the Staterespective dates, as referred to in Section 2.01 (hof withdrawal) of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H value of the Project and under currency or currencies withdrawn from the State Project, respectively, as provided Credit Account in each POArespect of the above-mentioned categories; (iii) interest shall be charged on the outstanding balance of the subsidiary loan at a rate equal to five percent (5%); and (iv) a foreign exchange risk fee shall be charged on the outstanding balance of the subsidiary loan at a rate equal to one percent (1%). (d) The Borrower shall make the proceeds of the Loan allocated respectively: (i) for purposes of the State Project available to the State; and (ii) for Part H of the Project available to EMBRAPA; under arrangements satisfactory to the Bank. (e) The Borrower, through DTN, shall enter into agreements, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions of Schedule 5 to this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program; (B) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject under the Subsidiary Loan Agreement in such manner as to: (i) to protect the interest interests of the Bank Borrower and the Borrower; (ii) enable the Borrower Association and to comply with its obligations under this Agreement; and (iii) achieve accomplish the purposes of the Project. (f) Unless Credit, and, except as the Bank Association shall otherwise agree, the Borrower shall not assign, amend, abrogate or waive the provisions of the MCR applicable to the Program. (g) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms and conditions satisfactory to the Bank, not later than six months after the date of the Amending Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive Subsidiary Loan Agreement or fail to enforce any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendationsthereof. Section 3.02. Except as the Bank Association shall otherwise agree, procurement of the goods, works works, and consultants’ services required for the carrying out of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan Credit shall be made in accordance with governed by the provisions of Schedule 2 3 to the Project this Agreement. (a) Section 3.03. The Borrower shall: (i) furnish to the Bank by October 31 in each year, for its review and comment, the proposed POA and budget for the Project and for the Northeast Rural Development Program for the following fiscal year; (ii) afford the Bank a reasonable opportunity to comment on any modifications the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budget. (b) In order to assist the EMBRAPA in carrying out Part H of the Project, the Borrower shall cause EMBRAPA, under contractual arrangements satisfactory to the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the bank in August 1981. Section 3.04. The Bank and the Borrower Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07, 9.07 and 9.08 and 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of Part A of the Project shall be carried out, or caused out by SAA pursuant to be carried out, by (i) the State in respect Section 2.03 of the State ProjectProject Agreement. Section 3.04. For the purposes of Section 9.07 of the General Conditions and without limitation thereto, the Borrower shall: (a) prepare, on the basis of guidelines acceptable to the Association and byfurnish to the Association not later than six (6) months before the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Association, a plan designed to ensure the continued achievement of the Program’s objectives; and (b) afford the Association a reasonable opportunity to exchange views with the Borrower on said plan.

Execution of the Project. (a) The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and and, to this end shall cause: (i) SDR to coordinate (at the federal level) and issue guidelines related to the carrying out of the Programend, to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely manner; (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, to carry out the credit program included in Parts D and I of the Project; and (iv) EMBRAPA to carry out Part H of the Project, all with due diligence and efficiency, in accordance with appropriate administrative, financial and agricultural practices. (b) Without without any limitation or restriction upon any of its other obligations under the Loan Development Credit Agreement, the Borrower shall cause the State, under contractual arrangements satisfactory to the Bank, SFMA to perform in accordance with the provisions of the Project Agreement, Agreement all the respective obligations of the State SFMA therein set forth, shall take or and Credit Agreement, shall cause SFMA to perform in accordance with the provisions of the Project Agreement all the obligations of SFMA therein set forth, shall take and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable the State SFMA to perform its such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (c) Without limitation to its obligations under paragraph (a) above, the Borrower shall: (i) take all action as shall be required to regulate, in a manner satisfactory to the Bank, the funding procedures which will ensure that the Executing Entities shall have the funds required for carrying out the Project available to them in a timely manner; and (ii) provide or cause SUDENE to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h) of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H of the Project and under the State Project, respectively, as provided in each POA. (db) The Borrower shall make available to SFMA for the purposes of the Project the proceeds of the Loan allocated respectivelyCredit under a Subsidiary Administration Agreement to be entered into between the Borrower and SFMA, under terms and conditions which shall have been approved by the Association which shall include, inter alia: (i) provisions by which SFMA shall make available on a grant basis and for purposes of Part B.1 (d) of the State Project available Project, an amount equivalent to SDR 400,000 to PFIs for the State; financing of capacity building activities, including training, acquisition or rehabilitation of accounting software and installation of a Management Information System; (ii) for Part H of the Project provisions by which SFMA shall make available to EMBRAPA; under arrangements satisfactory to the Bank. (e) The Borrower, through DTN, shall enter into agreements, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated on a grant basis and for purposes of Part B.2 (b) of the credit programs included in Parts D and I Project, an amount equivalent to SDR 2,000,000 to selected CBOs for the carrying out of Income Generating Activity Projects; and (iii) provisions by which SFMA shall carry out the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions of Schedule 5 to this Agreement, Procedures Manual and the lending policies and procedures set forth in the MCR applicable to the Program;Project Implementation Plan. (Bc) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank The Borrower shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject under the Subsidiary Administration Agreement in such manner as to: (i) to protect the interest interests of the Bank Borrower and the Borrower; (ii) enable the Borrower Association and to comply with its obligations under this Agreement; and (iii) achieve accomplish the purposes of the Project. (f) Unless Credit, and, except as the Bank Association shall otherwise agree, the Borrower shall not assign, amend, abrogate or waive the provisions of the MCR applicable to the Program. (g) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms and conditions satisfactory to the Bank, not later than six months after the date of the Amending Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive Subsidiary Administration Agreement or fail to enforce any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendationsthereof. Section 3.02. Without limitation to the provisions of Section 3.01 (a) of this Agreement, the Borrower shall cause SFMA to carry out the Project in accordance with the provisions of the Procedures Manual and the Project Implementation Plan. Section 3.03. Except as the Bank Association shall otherwise agree, procurement of the goods, works and consultants’ services required for the carrying out of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan Credit shall be made in accordance with governed by the provisions of Schedule 2 1 to the Project Agreement. Section 3.04. For the purposes of Section 9.06 of the General Conditions and without limitation thereto, the Borrower shall: (a) The Borrower shall: (i) prepare, on the basis of guidelines acceptable to the Association, and furnish to the Bank by October 31 in each yearAssociation not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Association, for its review and comment, a plan designed to ensure the proposed POA and budget for sustainability of the Project and for the Northeast Rural Development Program for the following fiscal yearProject; and (iib) afford the Bank Association a reasonable opportunity to comment on any modifications exchange views with the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budget. (b) In order to assist the EMBRAPA in carrying out Part H of the Project, the Borrower shall cause EMBRAPA, under contractual arrangements satisfactory to the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the bank in August 1981said plan. Section 3.043.05. The Bank Borrower and the Borrower Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07, 9.07 and 9.08 and 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried outout by SFMA pursuant to Section 2.03 of the Project Agreement. Section 3.06. Without limitation to its obligations under Section 3.01 of this Agreement, the Borrower, for the purposes of making available its counterpart contribution to the financing of the Project, shall: (a) open and maintain, for the duration of the Project, an account (the Project Account) in FCFA in a commercial bank on terms and conditions satisfactory to the Association; (b) promptly thereafter, make an initial deposit into the Project Account, in an amount equivalent to FCFA 100,000,000 to finance the Borrower’s contribution to the Project; (c) thereafter deposit into the Project Account by March 31 in each Fiscal Year during Project implementation such amount as shall be required to timely replenish the Project Account back to the amount of the initial deposit referred to in paragraph (b) above; and (d) ensure that amounts deposited into the Project Account shall be used exclusively to make payments to meet expenditures made or caused to be carried out, by (i) the State made in respect of the State Projectreasonable cost of goods and services for the Project in addition to those financed from the proceeds of the Credit. Section 3.07. The Borrower shall assume responsibility for financing, on a progressive basis, recurrent costs of SFMA and bypoverty data MIS in order to finance 50% of such costs at end of second phase and 100% at end of third phase of the Program.

Execution of the Project. (a) The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and and, to this end shall cause: end, shall: (i) SDR to coordinate (carry out the Project at the federal level) national level through LGOPA, and issue guidelines related to shall cause the carrying out of the Program, to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely manner; (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, Project Provinces to carry out the credit program included in Parts D Project at the provincial and I of the Project; and (iv) EMBRAPA to carry out Part H of the Projectcounty levels, all with due diligence and efficiency, efficiency and in accordance conformity with appropriate administrative, financial financial, health, education, labor, agricultural, engineering and agricultural environmental protection and management practices.; and (bii) Without any limitation or restriction upon any of its other obligations under the Loan Agreementprovide, promptly, as needed, the Borrower shall cause the State, under contractual arrangements satisfactory to the Bank, to perform in accordance with the provisions of the Project Agreement, all the respective obligations of the State therein set forth, shall take or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable required for the State to perform its obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performanceProject. (cb) Without limitation to its obligations under upon the provisions of paragraph (a) aboveof this Section and except as the Borrower and the Association shall otherwise agree, the Borrower shall: (i) take all action as shall cause the Project to be required carried out at the provincial and county levels pursuant to regulatea project implementation agreement, in a manner satisfactory acceptable to the BankAssociation, to be entered into between the funding procedures which will ensure that the Executing Entities shall have the funds required for carrying out the Borrower and each Project available to them in a timely manner; and (ii) provide or cause SUDENE to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the StateProvince, as referred to in Section 2.01 (h) of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H of the Project and under the State Project, respectively, as provided in each POA. (d) The Borrower shall make the proceeds of the Loan allocated respectivelywhich: (i) for purposes the Project Province shall carry out its respective parts of the State Project available to with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, health, education, agricultural, labor and environmental practices, and shall provide, promptly as needed, the State; funds, facilities, services and other resources required; (ii) for Part H of the Project available Province shall establish and maintain the provincial level project management organizations as set out in paragraph A.2 of Schedule 4 to EMBRAPAthis Agreement; under arrangements satisfactory to the Bank.and (eiii) The Borrower, through DTN, shall enter into agreements, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated Credit for purposes of the credit programs included in Parts D and I respective parts of the Project in accordance with: Agreement; and 1. shall be made available to the Project Province on the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions paragraph (c) of Schedule 5 to this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program; (B) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject in such manner as to: (i) protect the interest of the Bank and the Borrower; (ii) enable the Borrower to comply with its obligations under this Agreement; and (iii) achieve the purposes of the ProjectSection. (fiv) Unless Except as the Bank Association shall otherwise agree, the Borrower shall not assign, amend, abrogate abrogate, fail to enforce, or waive the provisions of the MCR applicable to the Programany Project Implementation Agreement or any provision thereof. (gc) Without limitation to its other obligations under this Section, the The Borrower shall provide relend a portion of the funds necessary proceeds of the Credit required to finance carry out the costs of any subsidies related Project at the provincial and county levels to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, each Project Province on terms and conditions satisfactory to the BankAssociation, not later than including the following principal terms and conditions: (i) repayment within twenty (20) years, including six months after (6) years of grace; (ii) interest to be paid on the date amounts withdrawn from time to time at a fixed rate of two percent (2%) per annum; (iii) commitment fee to be paid on the Amending Agreement, such agreement unwithdrawn amount from time to define time at the respective responsibility rate of SUDENE half of one percent (0.5%); and EMBRAPA regarding Part H (iv) all foreign exchange risks incurred during the period of repayment by each of the Project and except as the Bank Provinces shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive or fail to enforce any provision of such agreement. (i) The Borrower shall, be paid by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendationssaid Project Province. Section 3.02. Except as the Bank Association shall otherwise agree, procurement of the goods, works and consultants’ services required for the carrying out of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan Credit shall be made in accordance with governed by the provisions of Schedule 2 3 to the Project this Agreement. (a) The Borrower shall: (i) furnish to the Bank by October 31 in each year, for its review and comment, the proposed POA and budget for the Project and for the Northeast Rural Development Program for the following fiscal year; (ii) afford the Bank a reasonable opportunity to comment on any modifications the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budget. (b) In order to assist the EMBRAPA in carrying out Part H of the Project, the Borrower shall cause EMBRAPA, under contractual arrangements satisfactory to the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the bank in August 1981. Section 3.04. The Bank and the Borrower Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07, 9.07 and 9.08 and 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out, or caused to be carried out, by (i) the State in respect of the State ProjectProject shall be carried out by the Project Provinces pursuant to the Project Implementation Agreements, and byby the Borrower in respect of the Project being carried out at the national level. (b) The Borrower shall provide to the Association annual consolidated reports with request to carrying out the obligations referred to in paragraph (a) of this Section by the Project Provinces.

Execution of the Project. (a) The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and and, to this end shall cause: (i) SDR to coordinate (at the federal level) and issue guidelines related to the carrying out of the Programend, to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely manner; (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, to carry out the credit program included in Parts D and I of the Project; and (iv) EMBRAPA to carry out Part H of the Project, all with due diligence and efficiency, in accordance with appropriate administrative, financial and agricultural practices. (b) Without without any limitation or restriction upon any of its other obligations under the Loan Agreement, the Borrower shall cause the StateNRA, RAR and SNCFR, under contractual arrangements satisfactory to the Bankoverall coordination and supervision of PMU, to perform in accordance with the provisions of the NRA Project Agreement, the RAR Project Agreement and the SNCFR Project Agreement, respectively, all the respective obligations of the State NRA, RAR and SNCFR therein set forth, shall take or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable the State NRA, RAR and SNCFR to perform its such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (c) Without limitation to its obligations under paragraph (a) above, the Borrower shall: (i) take all action as shall be required to regulate, in a manner satisfactory to the Bank, the funding procedures which will ensure that the Executing Entities shall have the funds required for carrying out the Project available to them in a timely manner; and (ii) provide or cause SUDENE to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h) of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H of the Project and under the State Project, respectively, as provided in each POA. (db) The Borrower shall make available the proceeds of the Loan allocated to NRA, RAR and SNCFR, respectively: (i) for purposes of , under subsidiary financing agreements to be entered into between the State Project available to the State; Borrower and (ii) for Part H of the Project available to EMBRAPA; under arrangements satisfactory to the Bank. (e) The Borrower, through DTN, shall enter into agreements, satisfactory to the Bank, with each of the Participating BanksNRA, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D RAR and I of the Project in accordance with: Agreement; and 1. the SNCFR under terms and conditions which shall have been approved by the Bank which shall include the principal terms set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions of Schedule 5 6 to this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program;. (Bc) allocate on a priority basisThe Borrower shall exercise its rights under the NRA, adequate funds for RAR and SNCFR Subsidiary Financing Agreements in such manner as to protect the financing of working capital (custeio) needs interests of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project Borrower and the preceding month’s lending performance of Bank and to accomplish the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds purposes of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject in such manner , except as to: (i) protect the interest of the Bank and the Borrower; (ii) enable the Borrower to comply with its obligations under this Agreement; and (iii) achieve the purposes of the Project. (f) Unless the Bank shall otherwise agree, the Borrower shall not assign, amend, abrogate or waive the provisions any of the MCR applicable to the Program. (g) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms and conditions satisfactory to the Bank, not later than six months after the date of the Amending Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive said Agreements or fail to enforce any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendationsthereof. Section 3.02. Except as the Bank shall otherwise agree, procurement of the goods, works and consultants’ services required for the carrying out of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan shall be made in accordance with governed by the provisions of Schedule 2 4 to the Project this Agreement. (a) The Borrower shall: (i) furnish to the Bank by October 31 in each year, for its review and comment, the proposed POA and budget for the Project and for the Northeast Rural Development Program for the following fiscal year; (ii) afford the Bank a reasonable opportunity to comment on any modifications the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budget. (b) In order to assist the EMBRAPA in carrying out Part H of the Project, the Borrower shall cause EMBRAPA, under contractual arrangements satisfactory to the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the bank in August 1981. Section 3.043.03. The Bank and the Borrower hereby agree that the obligations set forth in Sections 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out, or caused to be carried out, by (i) the State in respect of the State Project, and byand

Execution of the Project. (a) The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreementand, and to this end shall cause: carry out, with the guidance of the Steering Committee: (i) SDR to coordinate (at the federal level) Parts A, B and issue guidelines related to the carrying out D of the Program, to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely mannerProject through MINEDUC; and (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, to carry out the credit program included in Parts D and I Part C of the Project; and (iv) EMBRAPA to carry out Part H of the ProjectProject through MCS, all with due diligence and efficiency, efficiency and in accordance conformity with appropriate educational, technical, administrative, financial financial, engineering and agricultural environmental practices. (b) Without any limitation or restriction upon any of its other obligations under the Loan Agreement, and shall provide, promptly as needed, the Borrower shall cause the State, under contractual arrangements satisfactory to the Bank, to perform in accordance with the provisions of the Project Agreement, all the respective obligations of the State therein set forth, shall take or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable resources required for the State to perform its obligationsProject. (b) The Borrower shall establish, and shall not take or permit thereafter operate and maintain, during the implementation of the Project, a policy guidance committee (the Steering Committee) with functions and responsibilities satisfactory to be taken any action which would prevent or interfere with such performancethe Bank. (c) Without limitation to its obligations under paragraph (a) aboveThe Borrower shall establish, and thereafter operate and maintain, during the Borrower shall: (i) take all action as shall be required to regulateimplementation of the Project, in a manner Project coordination unit with functions and responsibilities satisfactory to the Bank, at all times headed by a Project coordinator and assisted by staff in adequate numbers, all with qualifications and experience acceptable to the funding procedures which will ensure that the Executing Entities shall have the funds required for carrying out the Project available to them in a timely manner; and (ii) provide or cause SUDENE to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h) of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H of the Project and under the State Project, respectively, as provided in each POABank. (d) The Borrower shall make the proceeds of the Loan allocated respectivelyshall: (i) maintain during the implementation of the Project a trust fund, in accordance with the corresponding provisions of the Trust Fund Agreement, for purposes of administering and disbursing on behalf of the State Project available to Borrower the State; and (ii) counterpart funds for Part H of the Project available to EMBRAPA; under arrangements satisfactory to the Bank. (e) The Borrower, through DTN, shall enter into agreements, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions of Schedule 5 to this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program; (B) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I A of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject in such manner as to: (i) protect the interest of the Bank and the Borrower; (ii) enable the Borrower to comply with its obligations under this Agreement; and (iii) achieve the purposes of the Project. (f) Unless the Bank shall otherwise agree, the Borrower shall not amend, abrogate or waive the provisions of the MCR applicable to the Program. (g) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms and conditions satisfactory to the Bank, not later than six months after the date of the Amending Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to assign, amend, abrogate, waive suspend, waive, terminate or fail to enforce the Trust Fund Agreement or any provision thereof. (e) The Borrower shall establish, and thereafter operate and maintain, at all times during implementation of the Project, a revolving fund in Quetzales with a quarterly balance equivalent to at least the amount of counterpart funds required to carry out the Project for three months of Project implementation. (f) The Borrower shall, through MINEDUC, transfer, on a grant basis, the portion of the proceeds of the Loan allocated for Part A of the Project to each COEDUCA under an agreement to be entered into between the Borrower, through MINEDUC, and each COEDUCA, substantially in the terms of the Model COEDUCA Agreement. (g) The Borrower shall, through MINEDUC, exercise its rights under each COEDUCA Agreement in such manner as to protect the interests of the Borrower and the Bank and to accomplish the purposes of the Loan, and, except as the Bank shall otherwise agree, the Borrower, through MINEDUC, shall not assign, amend, abrogate, suspend, waive, terminate or fail to enforce any COEDUCA Agreement or any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendationsthereof. Section 3.02. Except as the Bank shall otherwise agree, procurement of the goods, works and consultants’ services required for the carrying out of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan shall be made governed by the provisions of Schedule 4 to this Agreement. Section 3.03. The Borrower shall carry out the Project in accordance with an operational manual, satisfactory to the Bank, said Manual to include, inter alia: (a) the procedures for the carrying out, monitoring and evaluation of the Project (including the procurement and financial requirements thereof); (b) the identification of the selected 16 Mayan languages; (c) the criteria for the selection of Eligible Students which shall include, inter alia, criteria to target female students in rural areas, primarily those whose mother tongue is one of the selected 16 Mayan languages, the Garifuna language, or the Xinca language; (d) the requirements for establishment and operation of the PRONADE Schools and the scholarship program referred to in Part A.2 of the Project; (e) the functions and organization of the PCU and Steering Committee; and (f) the Model COEDUCA Agreement. Section 3.04. The Borrower shall, through MINEDUC in respect of Parts A, B and D of the Project, and MCS in respect of Part C thereof: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with the provisions Performance Indicators, the carrying out of Schedule 2 the Project and the achievement of the objectives thereof; (b) prepare, under terms of reference satisfactory to the Bank, and furnish to the Bank, not later than twelve months after the Effective Date and yearly thereafter during the period of Project Agreementimplementation, a report integrating the results of the evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of such report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the Bank shortly after such report’s preparation, the report referred to in paragraph (b) of this Section, and, thereafter, take all measures required to ensure the efficient completion of the Project and the achievement of the objectives thereof, based on the conclusions and recommendations of the said report and the Bank's views on the matter. Section 3.05. For the purposes of Section 9.08 of the General Conditions, the Borrower shall: (a) The Borrower shall: (i) prepare, on the basis of guidelines acceptable to the Bank, and furnish to the Bank by October 31 in each yearnot later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Bank, for its review and comment, the proposed POA and budget a plan for the Project and for future operation of the Northeast Rural Development Program for the following fiscal yearProject; and (iib) afford the Bank a reasonable opportunity to comment on any modifications exchange views with the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budgetsaid plan. (b) In order to assist the EMBRAPA in carrying out Part H of the Project, the Borrower shall cause EMBRAPA, under contractual arrangements satisfactory to the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the bank in August 1981. Section 3.04. The Bank and the Borrower hereby agree that the obligations set forth in Sections 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out, or caused to be carried out, by (i) the State in respect of the State Project, and by

Execution of the Project. (a) The Borrower Recipient declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and and, to this end shall causeend, shall: (i) SDR to coordinate with the participation of MMA, through the MMA Agreement: (at the federal levelA) and issue guidelines related to the carrying carry out Part A of the Program, to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely mannerProject; (iiB) SUDENE to coordinate (at the regional level), supervise cause GTA and monitor the Program; (iii) the Participating BanksCMA, through Participating Agreementsthe GTA and CMA Agreement, respectively, to carry out the credit program included in Parts D and I Part B of the Project; and (ivii) EMBRAPA cause the MMA to carry out out, through the MMA Agreement, Part H C of the Project, all with due diligence and efficiency, efficiency and in accordance conformity with appropriate administrative, managerial and financial practices and agricultural practices. (b) Without any limitation or restriction upon any of its other obligations under the Loan Agreement, the Borrower shall cause the State, under contractual arrangements satisfactory to the Bank, to perform in accordance with the provisions of the Project AgreementOperational Manual, all in particular its provisions concerning ecological and environmental factors, and shall provide, promptly as needed, the respective obligations of the State therein set forth, shall take or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable resources required for the State to perform its obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performanceProject. (cb) Without limitation to its obligations under paragraph (a) aboveFor the purposes of the carrying out of Part A of the Project, the Borrower shall: (i) take all action as Recipient shall be required transfer to regulateeach Beneficiary, in on a manner satisfactory to the Bankgrant basis, the funding procedures which will ensure that the Executing Entities shall have the funds required for carrying out the Project available to them in a timely manner; and (ii) provide or cause SUDENE to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h) of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H of the Project and under the State Project, respectively, as provided in each POA. (d) The Borrower shall make the proceeds of the Loan allocated respectively: (i) for purposes RFT Grant and of the State Project available CEC Grant allocated to the State; and (ii) for Part H of the Project available to EMBRAPA; finance a Subproject, under arrangements an agreement satisfactory to the Bank. Trustee (e) The Borrowerthe Subgrant Agreement), through DTNwhich shall include, shall enter into agreementsinter alia, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions of Schedule 5 4 to this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program;. (Bc) allocate on a priority basis, adequate funds for For the financing purposes of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I B of the Project, the SubloansRecipient shall enter into agreements with the GTA and CMA, satisfactory to the Trustee (the GTA Agreement and the CMA Agreement, respectively), whereby: (i) the Recipient shall transfer, on a grant basis, to GTA and CMA, respectively, the Beneficiaries, the expenditure of the relevant proceeds of the Loan, the goods RFT Grant and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject in such manner as to: (i) protect the interest of the Bank CEC Grant allocated to Categories 2 (a) and 2 (b) of the Borrowertable in paragraph 1 of Schedule 1 to this Agreement; (ii) enable GTA and CMA shall undertake to carry out Parts B (i) and B (ii), respectively, of the Borrower Project as set forth or referred to in this Agreement; (iii) GTA shall undertake to carry out Part B (i) of the Project in accordance with an institutional strengthening plan satisfactory to the Trustee (the Institutional Strengthening Plan) describing GTA’s budget and activities to be carried out under the Project; and (iv) GTA and CMA, respectively, shall provide to the Recipient any assistance it may require to comply with its obligations under the provisions of this Agreement; Agreement with respect to Parts B (i) and B (iiiii) achieve of the Project, respectively. (d) For the purposes of carrying out Part C of the Project. (f) Unless , and of regulating the Bank shall otherwise agreeparticipation of MMA in Parts A and B of the Project, the Borrower Recipient shall not amend, abrogate or waive the provisions of the MCR applicable to the Program. (g) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENEMMA, on terms and conditions satisfactory to the BankTrustee (the MMA Agreement), not later than six months after the date of the Amending Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive or fail to enforce any provision of such agreement. whereby: (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, Recipient shall provide to MMA the Program, in accordance with terms of reference satisfactory to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendations. Section 3.02. Except as the Bank shall otherwise agree, procurement of the goods, works goods and services required for the carrying out of the Project assigned to EMBRAPA and to be financed out Part C of the proceeds of the Loan shall be made in accordance with the provisions of Schedule 2 to the Project Agreement. (a) The Borrower shall: (i) furnish to the Bank by October 31 in each year, for its review and comment, the proposed POA and budget for the Project and for the Northeast Rural Development Program for the following fiscal yearProject; (ii) afford MMA shall maintain the Bank a reasonable opportunity to comment on any modifications the Borrower may intend to introduce to such proposed POA EC with functions, responsibilities and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budget. (b) In order to assist the EMBRAPA in carrying out Part H of the Project, the Borrower shall cause EMBRAPA, under contractual arrangements structure satisfactory to the Bank, to employ consultants whose Trustee and members with adequate qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the bank in August 1981. Section 3.04. The Bank and the Borrower hereby agree that the obligations set forth in Sections 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out, or caused to be carried out, by (i) the State in respect of the State Project, and by;

Execution of the Project. (a) The Borrower declares its commitment to the objectives objective of the Project as set forth in Schedule 2 and, to this Agreementend, and to this end shall cause: (i) SDR to coordinate (at shall, with the federal level) and issue guidelines related to the carrying out guidance of the Program, to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely manner; (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, Advisory Board cause CONICYT to carry out the credit program included in Parts D and I of the Project; and (iv) EMBRAPA to carry out Part H of the Project, all with due diligence and efficiency, efficiency and in accordance conformity with appropriate scientific, technological, economic, administrative, financial financial, and agricultural environmental practices. (b) Without any limitation or restriction upon any of its other obligations under the Loan Agreement, and shall provide, and/or cause CONICYT to provide promptly as needed, the Borrower shall cause the State, under contractual arrangements satisfactory to the Bank, to perform in accordance with the provisions of the Project Agreement, all the respective obligations of the State therein set forth, shall take or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable resources required for the State to perform its obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performanceProject. (cb) Without limitation to its obligations under paragraph (a) above, the The Borrower shall, during the implementation of the Project: (i) take all action as shall be required cause CONICYT to regulate, in maintain a manner Project coordination team (PCT) with functions and responsibilities satisfactory to the Bank, at all times headed by a Project coordinator and assisted by staff in adequate numbers, all with qualifications and experience acceptable to the funding procedures which will ensure that the Executing Entities shall have the funds required for carrying out the Project available to them in a timely mannerBank; and (ii) provide or maintain, and cause SUDENE CONICYT to maintain, an advisory board to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by overall guidance for the State, as referred to in Section 2.01 (h) implementation of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H of the Project and under the State Project, respectivelywith composition and functions satisfactory to the Bank, as provided including in each POAits composition, inter alia, representatives from the Borrower’s ministries and agencies and the productive sector, and leaders from academia and research institutions. (dc) The Borrower shall make the proceeds of the Loan allocated respectivelyavailable to CONICYT under an agreement to be entered into between the Borrower, through its Ministry of Finance, and CONICYT, under terms and conditions which shall have been approved by the Bank, which shall include, inter alia, CONICYT’s obligations to carry out the Project in accordance with the provisions of this Agreement. (d) The Borrower shall cause CONICYT to enter into agreements, with each Beneficiary, under terms and conditions substantially similar to those of the model form contained in the Operational Manual (the Grant Agreements), such agreements to provide for: (i) for purposes the transfer by CONICYT to such Beneficiary, on a grant basis, of the State Project available funds required by such Beneficiary to the Statecarry out a Subproject; and and (ii) for Part H the obligation of such Beneficiary to carry out such Subproject as provided in the Project available to EMBRAPA; under arrangements satisfactory to the BankOperational Manual. (ei) The Borrower, through DTN, Borrower shall enter into agreements, satisfactory exercise its rights and carry out its obligations under the CONICYT Agreement in such manner as to protect the Bank, with each interests of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions of Schedule 5 to this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program; (B) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project Borrower and the preceding month’s lending performance of Bank and to accomplish the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds purposes of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject in such manner , except as to: (i) protect the interest of the Bank and the Borrower; (ii) enable the Borrower to comply with its obligations under this Agreement; and (iii) achieve the purposes of the Project. (f) Unless the Bank shall otherwise agree, the Borrower shall not assign, amend, abrogate abrogate, suspend, waive, terminate or waive fail to enforce the provisions of the MCR applicable to the ProgramCONICYT Agreement or any provision thereof. (gii) Without limitation The Borrower shall cause CONICYT: (A) to exercise its other rights and carry out its obligations under this Sectioneach Grant Agreement, in such manner as to protect the interests of the Borrower shall provide and the funds necessary Bank and to finance accomplish the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms and conditions satisfactory to the Bank, not later than six months after the date purposes of the Amending Agreement, such agreement to define the respective responsibility of SUDENE Loan; and EMBRAPA regarding Part H of the Project and (B) except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to assign, amend, abrogate, waive suspend, waive, terminate or fail to enforce any Grant Agreement or any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendationsthereof. Section 3.02. Except as the Bank shall otherwise agree, procurement of the goods, works and consultants' services required for the carrying out of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan shall be made in accordance with governed by the provisions of Schedule 2 4 to the Project this Agreement. (a) Section 3.03. The Borrower shall: (i) furnish to the Bank by October 31 in each year, for its review and comment, the proposed POA and budget for the Project and for the Northeast Rural Development Program for the following fiscal year; (ii) afford the Bank a reasonable opportunity to comment on any modifications the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budget. (b) In order to assist the EMBRAPA in carrying out Part H of the Project, the Borrower shall cause EMBRAPACONICYT to carry out the Project in accordance with an operational manual, under contractual arrangements satisfactory to the Bank, said manual to employ consultants whose qualificationsinclude, experience inter alia: (a) the procedures for the carrying out, monitoring and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis evaluation of the "Guidelines Project (including the procurement, financial and environmental requirements thereof); (b) the criteria for the Use approval, implementation and monitoring of Consultants by World Bank Borrowers Subprojects; (c) the criteria for eligibility of Beneficiaries; and (d) a model agreement for implementation of Subprojects. In case of any conflict between the terms of the Operational Manual and by those of this Agreement, the World Bank as Executing Agency" published by the bank in August 1981terms of this Agreement shall prevail. Section 3.04. The Bank Borrower shall cause CONICYT: (a) to maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with the Performance Indicators, the carrying out of the Project and the Borrower hereby agree that the obligations set forth in Sections 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09 achievement of the General Conditions objectives thereof; (relating b) to insuranceprepare, use under terms of goods reference satisfactory to the Bank, and servicesfurnish to the Bank, plans not later than twelve months after the Effective Date and schedulesyearly thereafter during the period of Project implementation, records a report integrating the results of the evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of such report and reports, maintenance setting out the measures recommended to ensure the efficient carrying out of the Project and land acquisition, respectivelythe achievement of the objectives thereof during the period following such date; and (c) shall be carried out, or caused to be carried out, by (i) to review with the State Bank, within no more than two months after each such report’s preparation, the reports referred to in respect of the State Project, and byparagraph

Execution of the Project. (a) The Borrower declares its commitment to the objectives objective of the Project as set forth in Schedule 2 and, to this Agreementend, and to this end shall cause: (i) SDR to coordinate (at the federal level) and issue guidelines related to the carrying out of the Program, to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely manner; (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, to carry out the credit program included in Parts D and I of the Project; and (iv) EMBRAPA to carry out Part H of the Project, all with due diligence and efficiency, in accordance with appropriate administrative, financial and agricultural practices. (b) Without without any limitation or restriction upon any of its other obligations under the Loan this Agreement, the Borrower : (i) shall cause the State, under contractual arrangements satisfactory to the Bank, Maharashtra to perform in accordance with the provisions of the Maharashtra Project Agreement, Agreement all the respective obligations of the State Maharashtra therein set forth; (ii) acting through MoR, shall cause MRVC to perform in accordance with the provisions of the MRVC Project Agreement all the obligations of MRVC therein set forth; (iii) shall take or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable the State Maharashtra and MRVC, respectively, to perform its such obligations, and ; and (iv) shall not take or permit to be taken any action which would prevent or interfere with such performance. (cb) Without limitation to its obligations under paragraph (a) above, the The Borrower shall: : (i) take all action as shall be required make the entire proceeds of the Loan allocated to regulate, in a manner satisfactory to Part B of the Bank, the funding procedures which will ensure that the Executing Entities shall have the funds required for carrying out the Project available to them in a timely manner; and (ii) provide or cause SUDENE to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the StateProject, as referred to in Section 2.01 (h) of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H of the Project and under the State Project, respectively, well as provided in each POA. (d) The Borrower shall make half the proceeds of the Loan allocated respectively: (i) for purposes to Part A of the State Project Project, available to Maharashtra in accordance with the StateBorrower’s standard arrangements for developmental assistance to the States of India; and and (ii) for acting through MoR, make available the other half of the proceeds of the Loan allocated to Part H A of the Project available to EMBRAPA; MRVC under arrangements satisfactory a memorandum of understanding (hereinafter referred to as MRVC Memorandum of Understanding) to be entered into between the Borrower and MRVC, on a non-reimbursable basis, and under such other terms and conditions as shall be acceptable to the Bank. (ec) The BorrowerBorrower shall, acting through DTNMoR, shall enter into agreements, satisfactory exercise its rights under the MRVC Memorandum of Understanding in such manner as to protect the interests of the Borrower and the Bank, with each of and to accomplish the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions of Schedule 5 to this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program; (B) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject in such manner , except as to: (i) protect the interest of the Bank and the Borrower; (ii) enable the Borrower to comply with its obligations under this Agreement; and (iii) achieve the purposes of the Project. (f) Unless the Bank shall otherwise agree, the Borrower shall not assign, amend, abrogate or waive the provisions MRVC Memorandum of the MCR applicable to the Program. (g) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms and conditions satisfactory to the Bank, not later than six months after the date of the Amending Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive Understanding or fail to enforce any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendationsthereof. Section 3.02. Except as the Bank shall otherwise agree, procurement of the goods, works and consultants’ services required for the carrying out of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan shall be made in accordance with governed by the provisions of Schedule 2 1 to the Maharashtra Project Agreement and MRVC Project Agreement. (a) The Borrower shall: (i) furnish to the Bank by October 31 in each year, for its review and comment, the proposed POA and budget for the Project and for the Northeast Rural Development Program for the following fiscal year; (ii) afford the Bank a reasonable opportunity to comment on any modifications the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budget. (b) In order to assist the EMBRAPA in carrying out Part H of the Project, the Borrower shall cause EMBRAPA, under contractual arrangements satisfactory to the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the bank in August 1981respectively. Section 3.043.03. The Bank and the Borrower hereby agree that the obligations set forth in Sections 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out, or caused out by Maharashtra and MRVC pursuant to be carried out, by (i) the State in respect Section 2.03 of the State ProjectMaharashtra Project Agreement and MRVC Project Agreement, and byrespectively.

Execution of the Project. (a) The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and and, to this end shall cause: (i) SDR to coordinate (at the federal level) and issue guidelines related to the carrying out of the Programend, to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely manner; (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, to carry out the credit program included in Parts D and I of the Project; and (iv) EMBRAPA to carry out Part H of the Project, all with due diligence and efficiency, in accordance with appropriate administrative, financial and agricultural practices. (b) Without without any limitation or restriction upon any of its other obligations under the Loan Agreement, shall: (i) through SRH/MMA: carry out Parts A.1, C and D.1 (a) of the Borrower shall cause Project; (ii) through SEPRE/MPO carry out Part D.1 (b) of the StateProject; and (iii) in respect of Parts A.2, under contractual arrangements satisfactory B and D.2 of the Project: take all necessary steps in order to the Bank, to perform ensure that each Participating State performs in accordance with the provisions of the relevant Project Agreement, Agreement all the respective obligations of the such Participating State therein set forth, shall take as provided in the relevant Institutional Development Agreement or cause to be taken all actionSubproject Agreement, including as the provision of fundscase may be, facilitiesand, services and other resources, necessary or appropriate to enable the State to perform its obligations, and shall not take or permit to be taken any action which would prevent or interfere with the performance of such performance. (c) Without limitation to its obligations under paragraph (a) above, by each Participating State; all with due diligence and efficiency and in conformity with the Borrower shallprovisions of: (i) take all action as shall be required to regulate, in a manner satisfactory to the Bank, Operational Manual; (ii) the funding procedures which will ensure that Water Sector Policy Letter; (iii) the Executing Entities shall have the funds required for carrying out the Project available to them in a timely mannerrelevant Annual Operating Plan; and (iiiv) appropriate administrative, financial, environmental and water management practices, and shall provide or cause SUDENE to provide advances in Cruzeiros into: (A) an account opened promptly as needed, the funds, facilities, services and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h) of the Project Agreement; all in a timely manner and in sufficient amounts other resources required for the purpose of financing the activities under Part H of the Project and under the State Project, respectively, as provided in each POA. (db) The Borrower shall make the proceeds of the Loan allocated respectivelyshall: (i) for purposes through SRH/MMA and MPO, maintain until the completion of the State Project available a managing committee (the PROÁGUA Managing Committee) with adequate responsibilities, structure and functions, such Committee to be comprised of representatives of SRH/MMA and MPO for the purposes of, inter alia: (A) providing policy guidance for the planning, programming and physical execution of Project activities; (B) endorsing the relevant Annual Operating Plan; (C) recommending any changes to the StateOperational Manual for the Bank’s approval; (D) recommending the Institutional Development and Subproject Agreements for the Bank’s approval; and (E) evaluating Project performance, in order to recommend corrective actions; (ii) for Part H through SRH/MMA, maintain until the completion of the Project available to EMBRAPA; under arrangements satisfactory to a management unit (the Bank. (eUGP) The Borrowerwith adequate responsibilities, through DTNstructure and functions, shall enter into agreementsand with staff in adequate numbers and with adequate qualifications, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: purposes of, inter alia: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions of Schedule 5 to this Agreement, the lending policies and procedures set forth assisting SRH/MMA in the MCR applicable to the Program; (B) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts overall coordination and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject in such manner as to: (i) protect the interest of the Bank and the Borrower; (iiB) enable consolidating the Borrower to comply with its obligations under this Agreement; and (iii) achieve the purposes of the Project. (f) Unless the Bank shall otherwise agree, the Borrower shall not amend, abrogate or waive the provisions of the MCR applicable to the Program. (g) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms and conditions satisfactory to the Bank, not later than six months after the date of the Amending Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive or fail to enforce any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendations. Section 3.02. Except as the Bank shall otherwise agree, procurement of the goods, works and services required for the carrying out of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan shall be made in accordance with the provisions of Schedule 2 to the Project Agreement. (a) The Borrower shall: (i) furnish to the Bank by October 31 in each year, for its review and comment, the proposed POA and budget for the Project and for the Northeast Rural Development Program for the following fiscal year; (ii) afford the Bank a reasonable opportunity to comment on any modifications the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budget. (b) In order to assist the EMBRAPA in carrying out Part H of the Project, the Borrower shall cause EMBRAPA, under contractual arrangements satisfactory to the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the bank in August 1981. Section 3.04. The Bank and the Borrower hereby agree that the obligations set forth in Sections 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out, or caused to be carried out, by (i) the State in respect of the State Project, and byrelevant Annual Operating Plan;

Execution of the Project. (a) The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this AgreementAgreement and, and to this end shall cause: (i) SDR to coordinate (at the federal level) and issue guidelines related to the carrying out of the Programend, to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely manner; (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, to carry out the credit program included in Parts D and I of the Project; and (iv) EMBRAPA to carry out Part H of the Project, all with due diligence and efficiency, in accordance with appropriate administrative, financial and agricultural practices. (b) Without without any limitation or restriction upon any of its other obligations under the Loan Agreement, shall within the Borrower shall limits of its constitutional powers, cause the State, under contractual arrangements satisfactory to the Bank, LSWC and Lagos State to perform in accordance with the provisions of the Project Agreement, Agreement and the Lagos State Agreement all the respective obligations of the LSWC and Lagos State therein set forth, shall take or cause to be taken all actionactions, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable the LSWC and Lagos State to perform its such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (c) Without limitation to its obligations under paragraph (a) above, the Borrower shall: (i) take all action as shall be required to regulate, in a manner satisfactory to the Bank, the funding procedures which will ensure that the Executing Entities shall have the funds required for carrying out the Project available to them in a timely manner; and (ii) provide or cause SUDENE to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h) of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H of the Project and under the State Project, respectively, as provided in each POA. (db) The Borrower shall make relend the proceeds of the Loan allocated respectively: to Lagos State under a first subsidiary loan agreement to be entered into between the Borrower and Lagos State, under terms and conditions which shall have been approved by the Bank and which shall include annual interest at the variable rate referred to in Section 2.05 of this Agreement and repayment of principal in twenty years (iincluding a five-year grace period) for purposes and the assumption of the State Project available to the State; and (ii) for Part H of the Project available to EMBRAPA; under arrangements satisfactory to the Bankforeign exchange risk by LSWC. (ec) The Borrower, through DTN, Borrower shall enter into agreements, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions of Schedule 5 to this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program; (B) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject under the First Subsidiary Loan Agreement in such manner as to: (i) to protect the interest interests of the Borrower and the Bank and the Borrower; (ii) enable the Borrower to comply with its obligations under this Agreement; and (iii) achieve accomplish the purposes of the Project. (f) Unless Loan and, except as the Bank shall otherwise agree, the Borrower shall not assign, amend, abrogate or waive the provisions of the MCR applicable to the Program. (g) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms and conditions satisfactory to the Bank, not later than six months after the date of the Amending Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive First Subsidiary Loan Agreement or fail to enforce any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendationsthereof. Section 3.02. Except as the Bank shall otherwise agree, procurement of the goods, works works, and consultants’ services required for the carrying out of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan shall be made in accordance with governed by the provisions of the Schedule 2 to the Project Agreement. (a) The Borrower shall: (i) furnish to the Bank by October 31 in each year, for its review and comment, the proposed POA and budget for the Project and for the Northeast Rural Development Program for the following fiscal year; (ii) afford the Bank a reasonable opportunity to comment on any modifications the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budget. (b) In order to assist the EMBRAPA in carrying out Part H of the Project, the Borrower shall cause EMBRAPA, under contractual arrangements satisfactory to the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the bank in August 1981. Section 3.043.03. The Bank and the Borrower hereby agree that the obligations set forth in Sections 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out, or caused out by LSWC pursuant to be carried out, by (i) the State in respect Section 2.04 of the State Project, and byProject Agreement.

Execution of the Project. (a) The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and and, to this end end, shall cause: (i) SDR to coordinate (at the federal level) and issue guidelines related to the carrying out of the Program, to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely manner; (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, to carry out the credit program included in Parts D and I of the Project; and (iv) EMBRAPA to carry out Part H of the Project, all Project with due diligence and efficiency, efficiency and in accordance conformity with appropriate administrative, financial educational, engineering, financial, and agricultural technical practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Borrower and the Association shall otherwise agree, the Borrower shall carry out the Project in accordance with the Implementation Program set forth in Schedule 3 to this Agreement. (c) Without any limitation or restriction upon any of its other obligations under the Loan this Agreement, the Borrower shall shall: (i) cause MIM to carry out Parts A and D and the StateDLC to carry out Parts B, under contractual arrangements satisfactory to C and D of the BankProject with due diligence and efficiency and in conformity with appropriate administrative, educational, engineering, financial and technical practices; (ii) cause MIM or the DLC, as the case may be, to perform their obligations in accordance with the provisions of the their respective Project Agreement, all the respective obligations of the State therein set forth, shall Agreements; (iii) take or cause to be taken all action, actions including the provision of funds, facilities, services and other resources, resources necessary or appropriate to enable MIM and the State DLC to perform its such obligations, ; and shall (iv) not take or permit to be taken any action which would prevent or interfere with such performance. (cd) Without limitation to its obligations under paragraph (a) aboveFor purposes of carrying out the Project, the Borrower shall: (i) take all action as shall be required make available to regulate, in a manner satisfactory MIM and the DLC their respective proceeds of the Credit allocated from time to time to the Bank, categories in the funding procedures which will ensure that the Executing Entities shall have the funds required for carrying out the Project available table set forth in paragraph 1 of Schedule 1 to them in a timely manner; and (ii) provide or cause SUDENE to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h) of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H of the Project and this Agreement under the State ProjectMIM Subsidiary Grant Agreement and the DLC Subsidiary Grant Agreement, respectively, as provided in each POA. (d) The Borrower under terms and conditions which shall make have been approved by the proceeds of the Loan allocated respectively: (i) for purposes of the State Project available to the State; and (ii) for Part H of the Project available to EMBRAPA; under arrangements satisfactory to the BankAssociation. (e) The Borrower, through DTN, Borrower shall enter into agreements, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions of Schedule 5 to this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program; (B) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject under the MIM Subsidiary Grant Agreement and the DLC Subsidiary Grant Agreement in such manner as to: (i) to protect the interest interests of the Bank Borrower and the Borrower; (ii) enable the Borrower Association and to comply with its obligations under this Agreement; and (iii) achieve accomplish the purposes of the Project. (f) Unless Credit, and, except as the Bank Association shall otherwise agree, the Borrower shall not assign, amend, abrogate or waive the provisions of the MCR applicable to the Program. (g) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms and conditions satisfactory to the Bank, not later than six months after the date of the Amending Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive said Agreements or fail to enforce any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendationsthereof. Section 3.02. Except as the Bank Association shall otherwise agree, procurement of the goods, works and consultants’ services required for the carrying out of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan Credit shall be made in accordance with governed by the provisions of Schedule 2 1 to the Project AgreementAgreements. Section 3.03. For the purposes of Section 9.06 of the General Conditions and without limitation thereto, the Borrower shall: (a) The Borrower shall: (i) prepare, jointly with MIM and the DLC, on the basis of guidelines acceptable to the Association, and furnish to the Bank by October 31 in each yearAssociation not later than six (6) months before the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Association, for its review and comment, the proposed POA and budget a plan for the Project and for future operation of the Northeast Rural Development Program for the following fiscal yearProject; and (iib) afford the Bank Association a reasonable opportunity to comment on any modifications exchange views with the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budget. (b) In order to assist the EMBRAPA in carrying out Part H of the Project, the Borrower shall cause EMBRAPA, under contractual arrangements satisfactory to the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the bank in August 1981said plan. Section 3.04. The Bank Borrower shall: (a) open and maintain in MK, until the completion of the Project, a Project Account in a commercial bank acceptable to the Association, under terms and conditions satisfactory to the Association; (b) make an Initial Deposit into the Project Account in an amount of three million Malawi Kwacha (MK3,000,000) to finance the Borrower's contribution to the expenditures under the Project for the initial three-month period; (c) deposit into the Project Account such amounts as are estimated to be required at any given time for each ensuing three-month period thereafter, as shall be agreed upon between the Borrower and the Association; and (d) ensure that the funds deposited into the Project Account in accordance with paragraphs (b) and (c) of this Section shall be used exclusively to finance the Borrower’s contribution to the expenditures under the Project which are not otherwise financed from the proceeds of the Credit. Section 3.05. The Borrower and the Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07, 9.07 and 9.08 and 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of Parts A and D of the Project shall be carried outout by MIM pursuant to Section 2.03 of the MIM Project Agreement, or caused to and Parts B and C of the Project shall be carried out, out by (i) the State in respect DLC pursuant to Section 2.03 of the State Project, and byDLC Project Agreement.

Execution of the Project. (a) The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and and, to this end shall cause: end: (i) SDR to coordinate (at the federal level) shall, through MOI and issue guidelines related to the carrying out other relevant agencies of the ProgramBorrower, to propose annual budgets for such Program carry out Parts E and to take all actions necessary to ensure the availability F of the counterpart funds Project with due diligence and efficiency and in conformity with appropriate administrative and financial practices and shall provide, promptly as needed, the funds, facilities, services and other resources required for the carrying out of such Program in a timely manner; (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, to carry out the credit program included in said Parts D and I of the Project; and (iv) EMBRAPA to carry out Part H of the Project, all with due diligence and efficiency, in accordance with appropriate administrative, financial and agricultural practices.and (bii) Without without any limitation or restriction upon any of its other obligations under the Loan Development Credit Agreement, the Borrower Borrower, shall cause EVN to carry out Parts A and B of the StateProject, under contractual arrangements satisfactory HCMCPC to carry out Parts C and G(2) of the BankProject, PC1 to carry out Parts D(1) and D(2) of the Project, and PC2 to carry out Parts D(3) and G(1) of the Project, and shall cause each of EVN and the Power Companies to perform in accordance with the provisions of the Project Agreement, Agreement all the respective of its obligations of the State therein set forth, all with due diligence and efficiency and in conformity with appropriate administrative, engineering, environmental, financial, public utility, resettlement and technical practices, and shall take or cause to be taken all action, including the provision of funds, facilities, services and other resources, and the adjustment of tariffs, necessary or appropriate to enable EVN and the State Power Companies to perform its such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (cb) Without limitation to its obligations under upon the provisions of paragraph (a) aboveof this Section, and except as the Borrower shall: (i) take all action as shall be required to regulate, in a manner satisfactory to the Bank, the funding procedures which will ensure that the Executing Entities shall have the funds required for carrying out the Project available to them in a timely manner; and (ii) provide or cause SUDENE to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h) of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H of the Project and under the State Project, respectively, as provided in each POA. (d) The Borrower shall make the proceeds of the Loan allocated respectively: (i) for purposes of the State Project available to the State; and (ii) for Part H of the Project available to EMBRAPA; under arrangements satisfactory to the Bank. (e) The Borrower, through DTN, shall enter into agreements, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions of Schedule 5 to this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program; (B) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject in such manner as to: (i) protect the interest of the Bank and the Borrower; (ii) enable the Borrower to comply with its obligations under this Agreement; and (iii) achieve the purposes of the Project. (f) Unless the Bank Association shall otherwise agree, the Borrower shall carry out Parts E and F of the Project in accordance with the Implementation Program set forth in Schedule 5 to this Agreement. (a) The Borrower shall, through MOF, relend, under terms and conditions which shall have been approved by the Association: (i) the proceeds of the Credit allocated from time to time to Categories (1)(a) and (2)(a) to EVN under a subsidiary loan agreement to be entered into between the Borrower and EVN (the EVN Subsidiary Loan Agreement); (ii) the proceeds of the Credit allocated from time to time to Categories (1)(b), (2)(b) and 2(g) to HCMCPC under a subsidiary loan agreement to be entered into between the Borrower and HCMCPC (the HCMCPC Subsidiary Loan Agreement); (iii) the proceeds of the Credit allocated from time to time to Categories 2(c) and 2(d) to PC1 under a subsidiary loan agreement to be entered into between the Borrower and PC1 (the PC1 Subsidiary Loan Agreement); and (iv) the proceeds of the Credit allocated from time to time to Categories 2(e) and 2(f) to PC2 under a subsidiary loan agreement to be entered into between the Borrower and PC2 (the PC2 Subsidiary Loan Agreement). (b) The terms and conditions of the Subsidiary Loan Agreements shall include the following: (i) the principal amount of each subsidiary loan shall be repaid by EVN, HCMCPC, PC1 and PC2, as the case may be, in Dollars to the Borrower over twenty years, including a grace period of five (5) years; (ii) the principal amount of the subsidiary loan repayable by EVN, HCMCPC, PC1 and PC2, as the case may be, shall be the equivalent in Dollars (determined as of the date, or respective dates, of repayment) of the value of the currency or currencies withdrawn from the Credit Account in respect of the above-mentioned Categories; and (iii) interest shall be charged on the outstanding balance of each subsidiary loan at a rate of 6.5% per annum. (c) The Borrower shall exercise its rights under the Subsidiary Loan Agreements in such manner as to protect the interests of the Borrower and the Association and to accomplish the purposes of the Credit, and, except as the Association shall otherwise agree, shall not assign, amend, abrogate or waive the provisions of the MCR applicable to the Program. (g) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms and conditions satisfactory to the Bank, not later than six months after the date of the Amending Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive Subsidiary Loan Agreements or fail to enforce any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendationsthereof. Section 3.023.03. Except as the Bank Association shall otherwise agree, procurement of the goods, works goods and consultants’ services required for the carrying out of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan Credit shall be made in accordance with governed by the provisions of Schedule 2 3 to the Project this Agreement. (a) The Borrower shall: (i) furnish to the Bank by October 31 in each year, for its review and comment, the proposed POA and budget for the Project and for the Northeast Rural Development Program for the following fiscal year; (ii) afford the Bank a reasonable opportunity to comment on any modifications the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budget. (b) In order to assist the EMBRAPA in carrying out Part H of the Project, the Borrower shall cause EMBRAPA, under contractual arrangements satisfactory to the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the bank in August 1981. Section 3.04. The Bank Borrower and the Borrower Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07, 9.07 and 9.08 and 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of Parts A and B of the Project shall be carried outout by EVN, or caused to be carried out, by (i) the State in respect of Parts C and G(2) of the State ProjectProject shall be carried out by HCMCPC, in respect of Parts D(1) and D(2) of the Project shall be carried out by PC1, and byin respect of Parts D(3) and G(1) of the Project shall be carried out by PC2, each pursuant to Section 2.03 of the Project Agreement.

Execution of the Project. (a) The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and and, to this end shall cause: (i) SDR to coordinate (at the federal level) and issue guidelines related to the carrying out of the Programend, to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely manner; (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, to carry out the credit program included in Parts D and I of the Project; and (iv) EMBRAPA to carry out Part H of the Project, all with due diligence and efficiency, in accordance with appropriate administrative, financial and agricultural practices. (b) Without without any limitation or restriction upon any of its other obligations under the Loan this Agreement, shall carry out Parts A and C of the Project, and shall cause PIECO to carry out Part B of the Project, all with due diligence and efficiency and in accordance with the provisions of the Implementation Program set forth in Schedule 4 to this Agreement, as the same may be amended from time to time by mutual agreement of the Borrower and the Administrator, and shall cause the PA to provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) The Borrower shall make the proceeds of the Credit available to the PA under a subsidiary agreement to be entered into between the Borrower and the PA under terms and conditions which shall have been approved by the Administrator. (c) The Borrower shall cause the State, under contractual arrangements satisfactory to the Bank, PA (i) to perform in accordance with the provisions of the Project Agreement, Subsidiary Agreement all of the respective obligations of the State PA therein set forth, shall ; (ii) to take or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate for the carrying out of Parts A and C of the Project; and (iii) not to enable the State to perform its obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (c) Without limitation to its obligations under paragraph (a) above, the Borrower shall: (i) take all action as shall be required to regulate, in a manner satisfactory to the Bank, the funding procedures which will ensure that the Executing Entities shall have the funds required for carrying out the Project available to them in a timely manner; of Parts A and (ii) provide or cause SUDENE to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h) C of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H of the Project and under the State Project, respectively, as provided in each POA. (d) The Borrower shall make the proceeds of the Loan allocated respectively: (i) for purposes of the State Project available to the State; and (ii) for Part H of the Project available to EMBRAPA; under arrangements satisfactory to the Bank. (e) The Borrower, through DTN, shall enter into agreements, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions of Schedule 5 to this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program; (B) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject under the Subsidiary Agreement in such manner as to: (i) to protect the interest interests of the Bank Borrower and the Borrower; (ii) enable the Borrower Administrator and to comply with its obligations under this Agreement; and (iii) achieve accomplish the purposes of the Project. (f) Unless Credit, and, except as the Bank Administrator shall otherwise agree, the Borrower shall not assign, amend, abrogate or waive the provisions of the MCR applicable to the Program. (g) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms and conditions satisfactory to the Bank, not later than six months after the date of the Amending Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive Subsidiary Agreement or fail to enforce any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendationsthereof. Section 3.02. Except as the Bank Administrator shall otherwise agree, procurement of the goods, works and consultants’ services required for the carrying out Parts A and C of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan Credit shall be made in accordance with governed by the provisions of Schedule 2 3 to the Project this Agreement. (a) The Borrower shall: (i) furnish to Section 3.03. For the Bank by October 31 in each year, for its review and comment, the proposed POA and budget for the Project and for the Northeast Rural Development Program for the following fiscal year; (ii) afford the Bank a reasonable opportunity to comment on any modifications the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version purposes of such budget. (b) In order to assist the EMBRAPA in carrying out Part H Section 9.07 of the ProjectGeneral Conditions and without limitation thereto, the Borrower shall cause EMBRAPAthe PA to: (a) prepare, under contractual arrangements satisfactory to the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis of guidelines acceptable to the "Guidelines Administrator, and furnish to the Administrator, not later than six (6) months after the Closing Date, or such later date as may be agreed for this purpose between the Borrower and the Administrator, a plan for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the bank in August 1981. Section 3.04. The Bank and the Borrower hereby agree that the obligations set forth in Sections 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09 future operation of the General Conditions Project; and (relating b) afford the Administrator a reasonable opportunity to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out, or caused to be carried out, by (i) exchange views with the State in respect of the State Project, and byPA on said plan.

Execution of the Project. (a) The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and and, to this end end, shall cause: (i) SDR to coordinate (at the federal level) and issue guidelines related to the carrying out of the Program, to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely manner; (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, to carry out the credit program included Project through the Temporary Project Execution Entity and with the assistance of Implementing Agencies as shown, in respect of the different Parts D and I of the Project; and (iv) EMBRAPA , in the Annex to carry out Part H of the Projectsaid Schedule 2, all with due diligence and efficiency, efficiency and in accordance conformity with appropriate administrativeenvironmental and ecologic practices, financial and agricultural practices. (b) Without any limitation or restriction upon any of its other obligations under the Loan Agreementshall provide, promptly as needed, the Borrower shall cause the State, under contractual arrangements satisfactory to the Bank, to perform in accordance with the provisions of the Project Agreement, all the respective obligations of the State therein set forth, shall take or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable resources required for the State to perform its obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performanceProject. (cb) Without limitation Pursuant to its obligations under the provisions of paragraph (a) above, the Borrower shall: (i) take all action as shall be required to regulate, in a manner satisfactory to the Bank, the funding procedures which will ensure that the Executing Entities shall have the funds required for carrying out the Project available to them in a timely manner; of this Section and (ii) provide or cause SUDENE to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h) of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H of the Project and under the State Project, respectively, as provided in each POA. (d) The Borrower shall make the proceeds of the Loan allocated respectively: (i) for purposes of the State Project available to the State; and (ii) for Part H of the Project available to EMBRAPA; under arrangements satisfactory to the Bank. (e) The Borrower, through DTN, shall enter into agreements, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions of Schedule 5 to this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program; (B) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in receiving their assistance regarding the carrying out of the credit program included in Part I of the Project, the SubloansBorrower, through the BeneficiariesTemporary Project Execution Entity, the expenditure of the proceeds of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject in such manner as to: (i) protect the interest of the Bank and the Borrower; (ii) enable the Borrower to comply with its obligations under this Agreement; and (iii) achieve the purposes of the Project. (f) Unless the Bank shall otherwise agree, the Borrower shall not amend, abrogate or waive the provisions of the MCR applicable to the Program. (g) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement contractual arrangements with SUDENEeach Implementing Agency (Implementing Agreement); such contractual arrangements shall provide, on terms and conditions satisfactory to the Bank: (i) a general description of the results that the Temporary Project Execution Entity and such Implementing Agency are expecting as the outcome of the activities of such Implementing Agency under the Project; and (ii) shall further provide that such Implementing Agency shall, not later than six months in performing such activities, abide by the provisions of the Manual and take all such action on its part as shall be required to enable the Borrower: (A) to comply with its obligations under this Loan Agreement, particularly with those under Sections 3.02 and 4.01 thereof and under Sections 9.04 through 9.09 of the General Conditions; and (B) to suspend payments to the Implementing Agency in question in the case of lack of compliance thereby with the provisions of the corresponding Implementing Agreement, particularly in the case special audits of the accounts and records of such Agency are required because audits thereof made pursuant to Section 4.01 of this Loan Agreement shall have identified irregularities; provided, further, that in respect of each of ACOFORE, CONIF, FEDECAFE and the Timber Company, and any other privately owned entity that may be accepted in the future as an Implementing Agency under the Project, the services of each such Implementing Agency shall be hired by the Borrower, through the Temporary Project Execution Entity and on the terms and conditions stipulated under the corresponding Implementing Agreement while, in respect of the rest of the Implementing Agencies, each Implementing Agreement shall stipulate in what manner the Implementing Agency in question shall participate in the Project and the means by which their respective budgetary resources for the Project shall be supplemented, if so required, with, inter alia, the corresponding portion of Loan proceeds. (c) Without limitation upon the preceding provisions of this Section, and except if the Bank shall otherwise agree, the contractual arrangements referred to in paragraph (b) above shall include, also on terms and conditions satisfactory to the Bank: (i) provisions, of the type stipulated in such paragraph (b) and other provisions covering aspects related to relevant environmental licenses or other types of permits or prohibitions all aimed at preventing or mitigating adverse environmental impact (the Framework Provisions), such Framework Provisions to continue to be in effect for as long as one year after the date specific activities that the Implementing Agency in question has obligated itself to perform in respect of the Amending AgreementProject have been completed to the satisfaction of the corresponding Temporary Project Execution Entity and the Bank (the Framework Provisions); and (ii) provisions (the Annual Work Provisions) which shall reflect, in terms fully consistent with the relevant Annual Work Program or Programs, the specific activities that such agreement Implementing Agency shall perform under the Project during a period which, unless the Bank and the corresponding Temporary Project Execution Entity shall otherwise agree, shall not extend beyond the end of the calendar year in respect of which the relevant Annual Work Program has been approved; provided, however, that the Implementing Agreement with each Implementing Agency may be reflected in one or more instruments and that in the case of an Implementing Agency that performs activities with regard to define more than one Part of the respective responsibility of SUDENE and EMBRAPA regarding Part H Project, the Framework Provisions binding such Agency may be common to all the relevant Parts of the Project and except be reflected in one single instrument. (d) The provisions of paragraphs (b) and (c) above notwithstanding, the Temporary Project Execution Entity shall, through the corresponding Implementing Agreement, ensure that ICFES shall enter with each Part D.1 Subagency into contractual arrangements on terms and conditions satisfactory to the Bank (Part D.1 Subagency Agreement); provided, however that: (i) the Framework Provisions of such Implementing Agreement shall constitute an integral part of each Part D.1 Subagency Agreement and shall continue to be in effect for as long as one year after the specific activities referred to in (ii) below have been completed to the satisfaction of DNP, ICFES and the Bank; while (ii) the obligations of the corresponding Part D.1 Subagency under the provisions of the Part D.1 Subagency Agreement in question (which shall reflect, in terms fully consistent with the relevant Annual Work Program or Programs, the specific activities that such Part D.1 Subagency has obligated itself to carry out under Part D.1 of the Project during a period which unless the Bank and DNP shall otherwise agree, shall not extend beyond the end of the calendar year in respect of which the relevant Annual Work Program has been approved), shall also constitute obligations of ICFES as an integral part of the Annual Work Provisions of the Implementing Agreement entered into between DNP and ICFES; further provided, however, that the provisions of the proviso to paragraph (c) above shall apply also, mutatis mutandis, to this paragraph (d). (e) Except as the Bank shall otherwise agree, DNP shall not, and cause SUDENE and EMBRAPA ICFES with regard to the Part D.1 Subagency Arrangements not to assign, amend, abrogateabrogate or waive any provision of any Implementing Agreement, waive or Subagency Agreement, as the case may be, with the exception of those provisions referred to in paragraphs (c) (ii) or paragraph (d) (ii) above, as the case may be, which relate exclusively to the carrying out of the specific activities, and which, after the relevant period has ended and after a new Annual Work Plan has been approved, shall be replaced by new provisions reflecting, and/or related to, the specific activities, consistent with such Annual Work Program, which the Implementing Agency or Part D.1 Subagency in question, as the case may be, shall carry out under the Project during the period in question. (f) The preceding provisions of this Section notwith- standing, the Borrower shall not enter into any Implementation Agreement and cause ICFES not to enter into any Part D.1 Subagency Agreement if, at the time of entering into the applicable Agreement, the Implementing Agency or Part D.1 Subagency in question was not fully complying with the existing legal requirements in respect of matters related to environment, ecology, indigenous people and Black communities. (g) Without limitation upon the preceding provisions of this Section, the Borrower shall maintain the Manual and the Coordinating Unit until the end of the year in which the final withdrawal from the Loan Account has taken place, shall not change or fail to enforce the Manual or any provision thereof, shall not change the legal status, terms of such agreementreference, organization or structure of the Coordinating Unit, and shall provide the Coordinating Unit, promptly as needed, the funds, facilities, services and other resources required for the discharging of its functions and responsibilities under the Project. (h) Without limitation upon the preceding provisions of this Section, the Borrower shall: (i) The Borrower shall, by not later than June 30, 1993, review, together with maintain the Coordinating Committee until the Bank and SUDENEwill have notified the Borrower, pursuant to the provisions of paragraph (am) of Section 1.02 of this Agreement, the Program, in accordance Bank’s favorable opinion with terms of reference satisfactory respect to the BankMinistry becoming the Temporary Project Execution Entity; (ii) take all such action as shall be necessary to put the Coordinating Unit under the jurisdiction of the Ministry, if the aforesaid notification will have been sent, and shallupon the sending thereof; and (iii) provide the funds, immediately thereafterfacilities, services and other resources required for purposes of (i) and, if recommended by such reviewwarranted, amend the Program, taking into account such recommendations(ii) above. Section 3.02. (a) Except as the Bank shall otherwise agree, procurement of the goods, works and consultants’ services required for the carrying out of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan shall be made in accordance with governed by the provisions of Schedule 2 4 to the Project this Agreement. (a) The Borrower shall: (i) furnish to the Bank by October 31 in each year, for its review and comment, the proposed POA and budget for the Project and for the Northeast Rural Development Program for the following fiscal year; (ii) afford the Bank a reasonable opportunity to comment on any modifications the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budget. (b) In Without prejudice to the provisions of paragraph (a) of this Section, the Borrower, through the Coordinating Unit and by a date eight months after the award of the first non-reviewed contract, and every six months thereafter, shall submit to the Bank a procurement evaluation report, such report to review and describe the processes followed for the award of each non-reviewed contract awarded during the six-month portion of the period ending on the date on which each such report is due and to evaluate whether the obligations of the Borrower under paragraph (a) of this Section have been met in respect of the contracts covered by such report. (c) For purposes of paragraph (b) of this Section: (i) the Coordinating Unit shall assign the services of its procurement specialist in a timely fashion and pursuant to the provisions of Section II of Schedule 4 to this Agreement; and (ii) the term "non-reviewed contract" means each contract to be procured pursuant to the provisions of paragraph (a) of this Section and, as the case may be, subjected either to the provisions of Part E.1 (b) of Section I of such Schedule or to the exception provided for under paragraph 2 of the aforesaid Section II. Section 3.03. The Borrower shall take all such action on its part as shall be necessary to ensure that: (a) by June 30, 1996 all preparatory activities in order to assist undertake jointly with the EMBRAPA Bank the Mid-term review and evaluation of the Project under Part D.5 (c) of the Project have been completed, including, but not limited to, Part A.1 of the Project and a proposal for revised forest concessions, harvesting permits and royalties in carrying out Part H natural forest areas, and Parts D.4 and D.5 (e) of the Project, and that, at any date thereafter, it shall be ready to meet with the Borrower Bank at the request thereof for purposes of the aforesaid Part D.5 (c) of the Project; and (b) after Part D. 5 (c) of the Project shall cause EMBRAPAhave been completed at the satisfaction of the Bank, under contractual arrangements satisfactory all required adjustments to Project execution, as well as changes to the Manual agreeable to the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the bank in August 1981are introduced. Section 3.04. The Bank Borrower shall: (a) not later than on October 31 each year, present to the Bank, for approval, a detailed work program (Annual Work Program) for the following year prepared by the Coordinating Unit for all activities under the Project of the Temporary Project Execution Entity, each Implementing Agency and Part D.1 Subagency, together with the corresponding budgets; (b) refrain and cause Implementing Agencies and Part D.1 Subagencies to refrain, from incurring in expenditures under the Project unless the expenditures in question are part of the corresponding Annual Work Program and the Borrower hereby agree that said Program has been approved by the obligations set forth in Sections 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out, or caused to be carried out, by (i) the State in respect of the State Project, and byBank;

Execution of the Project. (a) The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and and, to this end end, shall cause: (i) SDR to coordinate (at the federal level) carry out Parts A; B.1; and issue guidelines related to the carrying out B.2 of the Program, to propose annual budgets for such Program and to take all actions necessary to ensure the availability Project through CNP; Part B.3 of the counterpart funds for the carrying out of such Program in a timely mannerProject through CFA; (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, to carry out the credit program included in Parts D and I Part C of the ProjectProject through EMU; and (iv) EMBRAPA to carry out Part H B.4 of the ProjectProject through MOH, all with due diligence and efficiency, efficiency and in accordance conformity with appropriate administrative, financial and agricultural managerial practices. (b) Without any limitation or restriction upon any of its other obligations under the Loan Agreement, and shall provide, promptly as needed, the Borrower shall cause the State, under contractual arrangements satisfactory to the Bank, to perform in accordance with the provisions of the Project Agreement, all the respective obligations of the State therein set forth, shall take or cause to be taken all action, including the provision of funds, facilities, services and other resourcesresources required for the Project; (b) For the purpose of implementation of Part B.3 of the Project, necessary or appropriate the Borrower shall cause CNP to enable conclude with CFA an Implementation Agreement, under terms and conditions satisfactory to the State to perform its obligationsAssociation, specifying, inter alia, the rights and shall not take or permit obligations of CNP and CFA, the timetable to be taken any action which would prevent or interfere with such performance.followed and the scope of activities to be undertaken; (c) Without limitation to its obligations under paragraph (a) aboveFor the purpose of implementation of Part C of the Project, the Borrower shall: (i) take all action as shall be required cause CNP to regulateconclude with EMU an Implementation Agreement, in a manner under terms and conditions satisfactory to the BankAssociation, specifying, inter alia, the funding procedures which will ensure that rights and obligations of CNP and EMU, the Executing Entities shall have timetable to be followed and the funds required for carrying out the Project available scope of activities to them in a timely manner; and (ii) provide or cause SUDENE to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h) of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H of the Project and under the State Project, respectively, as provided in each POA.be undertaken; (d) The Borrower shall make the proceeds of the Loan allocated respectively: (i) for purposes of the State Project available to the State; and (ii) for Part H of the Project available to EMBRAPA; under arrangements satisfactory to the Bank. (e) The Borrower, through DTN, shall enter into agreements, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions of Schedule 5 to this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program; (B) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights under the Implementation Agreements referred to in relation to each Subproject (b) and (c) above in such manner as to: (i) to protect the interest interests of the Bank Borrower and the Borrower; (ii) enable the Borrower Association and to comply with its obligations under this Agreement; and (iii) achieve accomplish the purposes of the Project. (f) Unless Credit, and except as the Bank Association shall otherwise agree, the Borrower shall not assign, amend, abrogate or waive the provisions Implementation Agreements or any of the MCR applicable to the Program.their provisions; and (ge) Without limitation to its other obligations under upon the provisions of paragraph (a) of this SectionSection and except as the Borrower and the Association shall otherwise agree, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms and conditions satisfactory to the Bank, not later than six months after the date of the Amending Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of carry out the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive or fail to enforce any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory the Implementation Program set forth in Schedule 4 to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendationsthis Agreement. Section 3.02. Except as the Bank Association shall otherwise agree, procurement of the goods, works and consultants’ services required for the carrying out of the Project assigned to EMBRAPA Project, and to be financed out of the proceeds of the Loan Credit, shall be made in accordance with governed by the provisions of Schedule 2 3 to the Project this Agreement. (a) The Borrower shall: (i) furnish shall cause PAU to prepare and submit to the Bank by October 31 in each yearAssociation, for its review and commentcomments: (1) the first draft workplan covering the period from July 1, the proposed POA and budget for the Project and for the Northeast Rural Development Program for the following fiscal year1993, until December 31, 1994; and (ii2) afford the Bank a reasonable opportunity to comment no later than November 30 of every year thereafter, subsequent draft annual workplans. The above-mentioned workplans shall, inter alia, specify monitorable targets on any modifications the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budgetimplementation. (b) In order to assist the EMBRAPA in carrying out Part H of the Project, the The Borrower shall cause EMBRAPA, under contractual arrangements satisfactory PAU to implement the Bank, to employ consultants whose qualifications, experience recommendations made by the Association and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis arising out of the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the bank in August 1981reviews carried out. Section 3.04. The Bank Borrower shall, no later than December 31, 1993, cause CTP to assign representatives of relevant Ministries and agencies to participate in an intersectoral working group, which would advise PAU in preparing the Borrower hereby agree that the obligations set forth in Sections 9.04, 9.05, 9.06, 9.07, 9.08 national food security conferences and 9.09 workshops referred to under Part B.1 of the General Conditions Project. (relating to insurancea) The Borrower shall, use of goods and servicesno later than July 31, plans and schedules1995, records and reportsconduct, maintenance and land acquisitionjointly with the Association, respectively) shall a Project imple- mentation mid-term review. The Review shall, inter alia, be carried out, or caused to be carried out, by targeted to: (i) monitor progress in achieving Project objectives; (ii) identify implementation issues and propose solutions; (iii) promote exchange of ideas among staff involved in Project Implementation; and (iv) update Project timetables, cost estimates and budget requirements; (b) No later than one month prior to the State mid-term review referred to in respect (a) above, the Borrower shall, through PAU, furnish to the Association, for its comments, a report in such detail as the Association shall reasonably request, including an evaluation of the State Projectprogress achieved in complying with Project implementation; and (c) The Borrower shall, and bypromptly thereafter, carry out the recommendations emanating from the review.

Execution of the Project. (a) The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and and, to this end shall causeend: (i) SDR shall cause COTUNACE to coordinate (at the federal level) and issue guidelines related to the carrying carry out Part B of the Program, to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely mannerProject; (ii) SUDENE to coordinate (at shall carry out Parts C, D and E of the regional level)Project through INORPI, supervise MOC and monitor the ProgramDGD; (iiiii) the Participating Banks, through Participating Agreements, to carry out the credit program included in Parts D and I of the Project; and (iv) EMBRAPA to carry out Part H of the Project, all with due diligence and efficiency, in accordance with appropriate administrative, financial and agricultural practices. (b) Without without any limitation or restriction upon any of its other obligations under the Loan this Agreement, the Borrower shall cause the State, under contractual arrangements satisfactory to the Bank, CEPEX to perform in accordance with the provisions of the CEPEX Project Agreement, Agreement all the respective obligations of the State CEPEX therein set forthforth in respect of carrying out Part A of the Project; all with due diligence and efficiency and in conformity with appropriate administrative, economic, financial, insurance, technical assistance and export and trade management practices. (b) The Borrower shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project, and shall take or cause to be taken all action, including the provision of funds, facilities, services and other resources, action necessary or appropriate to enable the State CEPEX to perform its obligationscorresponding obligations under the CEPEX Project Agreement, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (c) Without limitation to its obligations under paragraph upon the provisions of paragraphs (a) aboveand (b) of this Section, and except as the Borrower and the Bank shall otherwise agree, the Borrower shall: (i) take all action as shall be required to regulatecarry out Parts C, in a manner satisfactory to the Bank, the funding procedures which will ensure that the Executing Entities shall have the funds required for carrying out the Project available to them in a timely manner; D and (ii) provide or cause SUDENE to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h) of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H E of the Project and under shall cause COTUNACE to carry out Part B of the State Project, respectively, as provided in each POAaccordance with the Implementation Program set forth in Schedule 5 to this Agreement and the Project Implementation Plan. (da) The Borrower shall shall, in respect of Part A of the Project, make available to CEPEX, on a non-reimbursable grant basis, the proceeds of the Loan allocated respectively: from time to time to Categories (i1), (2(a)), (3(a)) for purposes and (4), under a grant agreement (the “CEPEX Grant Agreement”) to be entered into between MOF, acting on behalf of the State Project available to the State; Borrower, and (ii) for Part H of the Project available to EMBRAPA; CEPEX under arrangements satisfactory to terms and conditions which shall have been approved by the Bank. (eb) The Borrower, through DTN, Borrower shall enter into agreements, satisfactory exercise its rights and obligations under the CEPEX Grant Agreement in such manner as to protect the interests of the Borrower and the Bank, with each of and to accomplish the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds purposes of the Loan allocated for purposes of and achieve the credit programs included in Parts D and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions of Schedule 5 to this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program; (B) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I objectives of the Project, the Subloansand, the Beneficiaries, the expenditure of the proceeds of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject in such manner except as to: (i) protect the interest of the Bank and the Borrower; (ii) enable the Borrower to comply with its obligations under this Agreement; and (iii) achieve the purposes of the Project. (f) Unless the Bank shall otherwise agree, the Borrower shall not assign, amend, abrogate or waive the provisions of the MCR applicable to the ProgramCEPEX Grant Agreement, or any provision thereof. (ga) Without limitation The Borrower shall, in respect of Part B of the Project, make available to its other obligations under this SectionCOTUNACE, on a non-reimbursable grant basis, the Borrower shall provide proceeds of the funds necessary Loan allocated from time to finance time to Categories (2(b)) and (3(b)), under a grant agreement (the costs of any subsidies related to the terms of onlending referred to in paragraph (e“COTUNACE Grant Agreement”) above, such funds to be allocated for such purpose from entered into between MOF, acting on behalf of the federal budget (Orcamento da Uniao)Borrower, and COTUNACE under terms and conditions which shall have been approved by the Bank. (hb) The Borrower shall exercise its rights and obligations under the COTUNACE Grant Agreement in such manner as to protect the interests of the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms and conditions satisfactory to the Bank, not later than six months after and to accomplish the date purposes of the Amending Agreement, such agreement to define Loan and achieve the respective responsibility of SUDENE and EMBRAPA regarding Part H objectives of the Project and Project, and, except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive or fail to enforce any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendations. Section 3.02. Except as the Bank shall otherwise agree, procurement of the goods, works and services required for the carrying out of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan shall be made in accordance with the provisions of Schedule 2 to the Project Agreement. (a) The Borrower shall: (i) furnish to the Bank by October 31 in each year, for its review and comment, the proposed POA and budget for the Project and for the Northeast Rural Development Program for the following fiscal year; (ii) afford the Bank a reasonable opportunity to comment on any modifications the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budget. (b) In order to assist the EMBRAPA in carrying out Part H of the Project, the Borrower shall cause EMBRAPAnot assign, under contractual arrangements satisfactory to amend, abrogate or waive the BankCOTUNACE Grant Agreement, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the bank in August 1981or any provision thereof. Section 3.04. The Bank and the Borrower hereby agree that the obligations set forth in Sections 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of Part A of the Project shall be carried outout by CEPEX pursuant to Section 2.08 of the CEPEX Project Agreement. (a) Except as the Bank shall otherwise agree, or caused procurement of the goods and consultants’ services required for the Project and to be carried out, by (i) the State in respect financed out of the State Projectproceeds of the Loan shall be governed by the provisions of Schedule 4 to this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Borrower shall update the Procurement Plan in accordance with terms of reference acceptable to the Bank, and byfurnish such update to the Bank not later than 12 months after the date of the preceding Procurement Plan, for the Bank’s approval. Section 3.06. For the purposes of Section 9.07 of the General Conditions and without limitation thereto, the Borrower shall: (a) prepare, on the basis of guidelines acceptable to the Bank, and furnish to the Bank not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Bank, a plan for the future operation of the Project; and (b) afford the Bank a reasonable opportunity to exchange views with the Borrower on said plan.

Execution of the Project. (a) The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this AgreementAgreement and, and to this end end, shall cause: (i) SDR to coordinate (at the federal level) and issue guidelines related to the carrying carry out Part A.6 of the ProgramProject through MICOMART, to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely manner; Part A.3 (ii) SUDENE to coordinate of the Project through MINAGRI and Parts A.1, A.2, A.3 (at the regional leveli), supervise A.4, A.5, B.4 and monitor the Program; (iii) the Participating Banks, through Participating Agreements, to carry out the credit program included in Parts D and I B.6 of the Project; and (iv) EMBRAPA to carry out Part H of the Project, all Project through MINITRAPE with due diligence and efficiency, efficiency and in accordance conformity with appropriate administrative, financial financial, engineering, environmental and agricultural public utility practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without any limitation or restriction upon any of its other obligations under the Loan Agreement, the The Borrower shall cause the State, under contractual arrangements satisfactory to the Bank, ELECTROGAZ or its successor to perform in accordance with the provisions of the Project Agreement, all the respective obligations of the State ELECTROGAZ therein set forth, shall take or and cause to be taken all actionactions, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable the State ELECTROGAZ or its successor to perform its such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (c) Without limitation to its obligations under paragraph upon the provisions of paragraphs (a) aboveand (b) of this Section and, except as the Borrower and the Association shall otherwise agree, the Borrower shall: (i) take all action as shall be required to regulate, in a manner satisfactory to the Bank, the funding procedures which will ensure that the Executing Entities shall have the funds required for carrying out cause the Project available to them be carried out in a timely manner; and (ii) provide or cause SUDENE accordance with the Implementation Program set forth in Schedule 4 to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h) of the Project this Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H of the Project and under the State Project, respectively, as provided in each POA. (d) The Borrower shall make the proceeds of the Loan allocated respectively: (i) for purposes of the State Project available to the State; and (ii) for Part H of the Project available to EMBRAPA; under arrangements satisfactory to the Bank. (e) The Borrower, through DTN, shall enter into agreements, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with Without limitation upon the provisions of Schedule 5 to this AgreementAgreement and, except as the lending policies and procedures set forth in the MCR applicable to the Program; (B) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project Borrower and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject in such manner as to: (i) protect the interest of the Bank and the Borrower; (ii) enable the Borrower to comply with its obligations under this Agreement; and (iii) achieve the purposes of the Project. (f) Unless the Bank Association shall otherwise agree, the Borrower shall not amendprevent ELECTROGAZ or any of its successors in taking all necessary actions specified in Sections 4.03, abrogate or waive the provisions of the MCR applicable to the Program. (g) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms 4.04 and conditions satisfactory to the Bank, not later than six months after the date of the Amending Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H 4.05 of the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive or fail to enforce any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendationsAgreement. Section 3.02. Except as The Borrower shall, for the Bank shall otherwise agree, procurement purposes of Part B.1 and B.5 of the goodsProject, works and services required for the carrying out of the Project assigned to EMBRAPA and to be financed relend out of the proceeds of the Credit an amount equivalent to thirteen million four hundred forty thousand dollars ($13,440,000) to ELECTROGAZ under a Subsidiary Loan shall Agreement to be made in accordance with the provisions of Schedule 2 to the Project Agreement. (a) The Borrower shall: (i) furnish to the Bank by October 31 in each year, for its review and comment, the proposed POA and budget for the Project and for the Northeast Rural Development Program for the following fiscal year; (ii) afford the Bank a reasonable opportunity to comment on any modifications entered into between the Borrower may intend to introduce to and ELECTROGAZ under terms and conditions which shall have been approved by the Association and which shall provide, inter alia, that such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budget. (b) In order to assist the EMBRAPA in carrying out Part H of the Project, the Borrower shall cause EMBRAPA, under contractual arrangements satisfactory proceeds be relent at a variable interest rate at all times equal to the Bank’s interest rate on loans plus one percent (1%) commission, to employ consultants whose qualifications, experience and terms and conditions for a term of employment shall be satisfactory to the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis twenty-five (25) years including a grace period of the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the bank in August 1981. Section 3.04. The Bank and the Borrower hereby agree that the obligations set forth in Sections 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out, or caused to be carried out, by (i) the State in respect of the State Project, and byfive

Execution of the Project. (a) The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and and, to this end shall cause: (i) SDR to coordinate (at the federal level) and issue guidelines related to the carrying out of the Programend, to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely manner; (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, to carry out the credit program included in Parts D and I of the Project; and (iv) EMBRAPA to carry out Part H of the Project, all with due diligence and efficiency, in accordance with appropriate administrative, financial and agricultural practices. (b) Without without any limitation or restriction upon any of its other obligations under the Loan Agreement, shall: (i) carry out Part C of the Borrower shall Project, through Central Bank; (ii) cause CORFO to carry out Part A of the StateProject, under contractual arrangements satisfactory as its financial agent, and to the Bankperform, to perform in accordance with the provisions of the Project Agreement, all the respective obligations of the State CORFO therein set forth; (iii) take, shall take or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable the State CORFO to perform its obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance; (iv) carry out Part B of the Project with the assistance of Central Bank, SVS, SAFP and SBIF; and (v) provide promptly as needed the funds, facilities and other resources required for purposes of carrying out Parts B and C of the Project. (cb) Without limitation to The Borrower shall designate CORFO as its obligations under paragraph (a) above, the Borrower shall: (i) take all action as shall be required to regulate, in a manner satisfactory to the Bank, the funding procedures which will ensure that the Executing Entities shall have the funds required financial agent for purpose of carrying out the Project available to them in a timely manner; and (ii) provide or cause SUDENE to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h) of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H A of the Project and under the State Project, respectively, as provided in each POA. (d) The Borrower shall make the portion of the proceeds of the Loan allocated respectively: (i) for purposes of the State Project available to the State; and (ii) for Part H A of the Project available to EMBRAPA; CORFO, as the administrator of such funds, under arrangements satisfactory a Funds Transfer Arrangement to be entered into between the Borrower and CORFO, under terms and conditions which shall have been approved by the Bank. (ec) The Borrower, through DTN, Borrower shall enter into agreements, satisfactory exercise its rights under the Funds Transfer Arrangement in such manner as to protect the Bank, with each interests of the Participating Banks, providing for Borrower and the Participating Bank to: (A) on-lend and to accomplish the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of the Project in accordance with: Agreement; Loan, and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions of Schedule 5 to this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program; (B) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information except as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject in such manner as to: (i) protect the interest of the Bank and the Borrower; (ii) enable the Borrower to comply with its obligations under this Agreement; and (iii) achieve the purposes of the Project. (f) Unless the Bank shall otherwise agree, agree the Borrower shall not fail to enforce, assign, amend, abrogate or waive the provisions of the MCR applicable to the ProgramFunds Transfer Arrangement or any provision thereof. (ga) Without limitation The Borrower and the Bank shall from time to its other obligations under time, at the request of either party, exchange views on the progress achieved in carrying out the Program and the Actions specified in Schedule 5 to this SectionAgreement. (b) Prior to each such exchange of views, the Borrower shall provide the funds necessary to finance the costs of any subsidies related furnish to the terms of onlending referred to in paragraph (e) aboveBank for its review and comment, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms and conditions satisfactory to the Bank, not later than six months after the date a report of the Amending Agreementprogress achieved in carrying out the Program, in such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of the Project and except detail as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive or fail to enforce any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendationsreasonably request. Section 3.023.03. Except as the Bank shall otherwise agree, procurement of the goods, works and consultants’ services required for the carrying out of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan shall be made in accordance with governed by the provisions of Schedule 2 1 to the Project Agreement. (a) The Borrower shall: (i) furnish to the Bank by October 31 in each year, for its review and comment, the proposed POA and budget for the Project and for the Northeast Rural Development Program for the following fiscal year; (ii) afford the Bank a reasonable opportunity to comment on any modifications the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budget. (b) In order to assist the EMBRAPA in carrying out Part H of the Project, the Borrower shall cause EMBRAPA, under contractual arrangements satisfactory to the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the bank in August 1981. Section 3.04. The Bank and the Borrower hereby agree that the obligations set forth in Sections 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09 of the General Conditions (relating respectively to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of Part A of the Project shall be carried outout by CORFO pursuant to Section 2.04 of the Project Agreement. Section 3.05. Prior to June 30, 1990, the Borrower shall review and discuss with the Bank the scope of work and functioning of the SVS Unit. The Borrower shall take whatever measures are necessary or caused appropriate to improve the monitoring ability of such unit if such measures are identified and agreed upon by the Borrower and the Bank as a result of any such review. Section 3.06. Prior to September 30, 1990, the Borrower shall: (a) conduct a public seminar to publicize and explain streamlined requirements for issuance of Securities (b) publish and circulate widely to the private sector a brochure explaining the methods for issuing Securities and publish a thorough compilation of the laws and regulations of the Borrower related to the issuing of Securities; and (c) review with the Bank proposals to permit pension funds to invest in Commercial Paper and establish a maximum amount, satisfactory to the Bank, of such investments that would be carried outpermitted as percentage of total investments held by each pension fund in its portfolio. For purposes of this Section "Commercial Paper" means financial instruments with maturities not exceeding one year which are traded in Chile and registered with the SVS or the SBIF. Section 3.07. The Borrower shall furnish to the Bank, by (i) each June 30 and December 31 commencing in the State in respect year 1990 and throughout the execution of the State Project, a status report on the functioning of the Cartera Vendida and byon the subordinated debt obligations of the Commercial Banks to the Central Bank, which have replaced the repurchasing obligations under the Xxxxxxx Xxxxxxx. Section 3.08. Prior to September 30, 1990, the Borrower shall carry out the study referred to in Part B.4 of the Project under terms of reference satisfactory to the Bank, and shall discuss the results of such study with the Bank.

Execution of the Project. (a) The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and to this end Recipient shall cause: (i) SDR to coordinate (at the federal level) and issue guidelines related to the carrying out of the Program, to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely manner; (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, to carry out the credit program included in Parts D and I of the Project; and (iv) EMBRAPA to carry out Part H of the Project, all Project with due diligence and efficiency, efficiency and in accordance conformity with appropriate administrativeadministrative and financial practices, financial and agricultural practices. (b) Without any limitation or restriction upon any of its other obligations under the Loan Agreementshall provide, promptly as needed, the Borrower shall cause the State, under contractual arrangements satisfactory to the Bank, to perform in accordance with the provisions of the Project Agreement, all the respective obligations of the State therein set forth, shall take or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable the State to perform its obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (c) Without limitation to its obligations under paragraph (a) above, the Borrower shall: (i) take all action as shall be required to regulate, in a manner satisfactory to the Bank, the funding procedures which will ensure that the Executing Entities shall have the funds resources required for carrying out the Project available to them in a timely manner; and (ii) provide or cause SUDENE to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h) of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H of the Project and under the State Project, respectively, as provided in each POA. (d) The Borrower shall make the proceeds of the Loan allocated respectively: (i) for purposes of the State Project available to the State; and (ii) for Part H of the Project available to EMBRAPA; under arrangements satisfactory to the Bank. (e) The Borrower, through DTN, shall enter into agreements, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions of Schedule 5 to this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program; (B) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject in such manner as to: (i) protect the interest of the Bank and the Borrower; (ii) enable the Borrower to comply with its obligations under this Agreement; and (iii) achieve the purposes of the Project. (fb) Unless Without limitation upon the Bank provisions of paragraph (a) of this Section and except as the Recipient and the Administrator shall otherwise agree, the Borrower Recipient shall not amend, abrogate or waive the provisions of the MCR applicable to the Program. (g) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms and conditions satisfactory to the Bank, not later than six months after the date of the Amending Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of carry out the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive or fail to enforce any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory the Implementation Program set forth in Schedule 3 to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendationsthis Agreement. Section 3.02. Except as the Bank Administrator shall otherwise agree, procurement of the goods, works goods and consultants’ services required for the carrying out of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan Grant shall be made in accordance with governed by the provisions of Schedule 2 4 to the Project this Agreement. (a) The Borrower Recipient shall maintain or cause to be maintained records and accounts adequate to reflect in accordance with sound accounting practices the operations, resources and expenditures in respect of the Project of the departments or agencies of the Recipient responsible for carrying out the Project or any part thereof. (b) The Recipient shall: : (i) have the records and accounts referred to in paragraph (a) of this Section for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Administrator; (ii) furnish to the Bank by October 31 Administrator as soon as available, but in any case not later than four months after the end of each such year, for its review the report of such audit by said auditors, of such scope and comment, in such detail as the proposed POA and budget for the Project and for the Northeast Rural Development Program for the following fiscal yearAdministrator shall have reasonably requested; (ii) afford the Bank a reasonable opportunity to comment on any modifications the Borrower may intend to introduce to such proposed POA and budget; and and (iii) furnish to the Bank by January 1 Administrator such other information concerning said records and accounts and the audit thereof as the Administrator shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Account were made on the basis of statements of expenditure, the Recipient shall: (i) maintain or cause to be maintained, in each accordance with paragraph (a) of this Section, records and accounts reflecting such expenditures; (ii) retain, until at least one year after the administrative regulation approving Administrator has received the POA audit for the fiscal year in which is being initiated on the last withdrawal from the Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such date expenditures; (iii) enable the Administrator’s representatives to examine such records; and (iv) ensure that such records and by March 15 accounts are included in each year the final approved version of such budget. annual audit referred to in paragraph (b) In order of this Section and that the report of such audit contains a separate opinion by said auditors as to assist whether the EMBRAPA statements of expenditure submitted during such fiscal year, together with the proce-dures and internal controls involved in carrying out Part H of their preparation, can be relied upon to support the Project, the Borrower shall cause EMBRAPA, under contractual arrangements satisfactory to the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the bank in August 1981related withdrawals. Section 3.04. The Bank and For the Borrower hereby agree that the obligations set forth in Sections 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09 purposes of Section 9.07 of the General Conditions and without limitations thereto, the Recipient shall: (relating a) prepare, on the basis of guidelines acceptable to insurancethe Administrator, use of goods and servicesfurnish to the Administrator not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Recipient and the Administrator, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out, or caused to be carried out, by (i) a plan for the State in respect future operation of the State Project, and by; and (b) afford the Administrator a reasonable opportunity to exchange views with the Recipient on said plan.

Execution of the Project. (a) The Borrower GAMWORKS declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreementthe Development Credit Agreement and, and to this end end, shall cause: (i) SDR to coordinate (at the federal level) and issue guidelines related to the carrying out of the Program, to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely manner; (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, to carry out the credit program included in Parts D and I of the Project; and (iv) EMBRAPA to carry out Part H of the Project, all Project with due diligence and efficiency, efficiency and in accordance conformity with appropriate administrative, financial financial, engineering and agricultural practices. public utility practices (bincluding those set out in the Framework Agreement and the Manual of Procedures) Without any limitation or restriction upon any of its other obligations under the Loan Agreementand shall provide, the Borrower shall cause the State, under contractual arrangements satisfactory to the Bank, to perform in accordance with the provisions of the Project Agreement, all the respective obligations of the State therein set forth, shall take or cause to be taken all actionprovided, including promptly as needed, the provision of funds, facilities, services and other resources, necessary or appropriate to enable resources required for the State to perform its obligations, Project. (b) For the purposes of selecting beneficiaries and shall not take or permit sub- projects to be taken any action which would prevent or interfere with such performanceincluded in the Project, GAMWORKS shall apply eligibility and appraisal criteria satisfactory to the Association, including those set out in the Manual of Procedures. (c) Without limitation to its obligations under paragraph (a) aboveGAMWORKS undertakes that, unless the Association shall otherwise agree, the Borrower shallproceeds of the Credit will be used exclusively to carry out sub-projects for beneficiaries on terms whereby GAMWORKS shall obtain, by written contract with the beneficiary or by other appropriate legal means, rights adequate to protect the interests of the Association and GAMWORKS, including the right of GAMWORKS to: (i) take all action as shall be required to regulate, in a manner satisfactory to the Bank, the funding procedures which will ensure that the Executing Entities shall have the funds required for carrying out the Project available to them in a timely manner; and (ii) provide or cause SUDENE to provide advances in Cruzeiros into: require (A) an account opened the sub-project to be carried out and operated by EMBRAPA; with due diligence and efficiency and in accordance with sound technical, financial, managerial and environmental standards, policies and procedures, including those set out in the Manual of Procedures, and (B) an account opened and operated by the State, as referred beneficiary to in Section 2.01 (h) of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H of the Project and under the State Project, respectively, as provided in each POA.maintain adequate records; (dii) The Borrower shall make require that the goods and services to be financed out of the proceeds of the Loan allocated respectively: (i) for purposes of the State Project available to the State; and (ii) for Part H of the Project available to EMBRAPA; under arrangements satisfactory to the Bank. (e) The Borrower, through DTN, Credit shall enter into agreements, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions of Schedule 5 to this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program; (B) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank be used exclusively in the carrying out of the credit program sub-project; (iii) inspect, by itself or jointly with representatives of the Association, if the Association shall so request, all goods and the sites, works, plants and construction included in Part I of the Projectsub-project, the Subloansoperation thereof and any relevant records and documents; (iv) require that the contractor concerned with the sub-project shall take out and maintain with responsible insurers such insurance, against such risks and in such amounts, as shall be consistent with appropriate practice; (v) obtain all such information as the Beneficiaries, Association or GAMWORKS shall reasonably request relating to the expenditure foregoing; and (vi) suspend or terminate the use of the proceeds of the Loan, Credit upon failure by the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; andbeneficiary to perform its obligations under its contract with GAMWORKS. (Fd) GAMWORKS shall exercise its rights in relation to each Subproject sub-project in such manner as to: (i) protect the interest interests of the Bank Association and the BorrowerGAMWORKS; (ii) enable the Borrower to comply with its obligations under this Agreement, the Framework Agreement and the Manual of Procedures; and (iii) achieve the purposes of the Project. (f) Unless the Bank shall otherwise agree, the Borrower shall not amend, abrogate or waive the provisions of the MCR applicable to the Program. (g) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms and conditions satisfactory to the Bank, not later than six months after the date of the Amending Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive or fail to enforce any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendations. Section 3.022.02. Except as the Bank Association shall otherwise agree, procurement of the goods, works and consultants’ services required for the carrying out of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan Credit shall be made in accordance with governed by the provisions of Schedule 2 to the Project this Agreement. (a) The Borrower shall: (i) furnish to the Bank by October 31 in each year, for its review and comment, the proposed POA and budget for the Project and for the Northeast Rural Development Program for the following fiscal year; (ii) afford the Bank a reasonable opportunity to comment on any modifications the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budget. (b) In order to assist the EMBRAPA in carrying Section 2.03. GAMWORKS shall carry out Part H of the Project, the Borrower shall cause EMBRAPA, under contractual arrangements satisfactory to the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the bank in August 1981. Section 3.04. The Bank and the Borrower hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07, 9.07 and 9.08 and 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out, or caused to be carried out, by (i) the State in respect of the State Project Agreement. Section 2.04. (a) GAMWORKS shall, at the request of the Association, exchange views with the Association with regard to the progress of the Project, the performance of its obligations under this Agreement, the Framework Agreement and bythe Manual of Procedures and other matters relating to the purposes of the Credit.

Execution of the Project. (a) The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and and, to this end end, shall cause: (i) SDR to coordinate (at the federal level) and issue guidelines related to the carrying out of the Program, to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely manner; (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, to carry out the credit program included Project through MEF, with the cooperation of CGE (in Parts respect of Part D and I of the Project; ) and AME (iv) EMBRAPA to carry out in respect of Part H B.2 of the Project), and with participation of the Implementing Agencies (in respect of Parts A through C of the Project), all with due diligence and efficiency, efficiency and in accordance conformity with appropriate administrativefinancial, financial accounting, administrative and agricultural managerial practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without any limitation or restriction upon any of its other obligations under Pursuant to the Loan CGE Participation Agreement, the AME Participation Agreement and each Implementation Agreement, the Borrower shall cause the State, under contractual arrangements satisfactory to the Bank, to perform in accordance with the provisions of the Project Agreement, all the respective obligations of the State therein set forth, shall shall: (i) take or cause to be taken all action, including the provision of funds, facilities, services and other resources, action necessary or appropriate to enable MEF, CGE, AME and the State Implementing Agencies to perform its obligations, and shall carry out the Project; and (ii) not take or permit to be taken any action which would prevent or interfere with such performance. (c) the carrying out of the Project by MEF, CGE, AME and the Implementing Agencies. Without limitation or restriction to its obligations under the provisions of paragraph (a) above, the Borrower shall: (ithrough MEF) take all action as shall be required to regulate, in a manner satisfactory to the Bank, the funding procedures which will ensure that the Executing Entities shall have the funds required for carrying carry out the Project available to them in a timely manner; and (ii) provide or cause SUDENE to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h) of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H of the Project and under the State Project, respectively, as provided in each POA. (d) The Borrower shall make the proceeds of the Loan allocated respectively: (i) for purposes of the State Project available to the State; and (ii) for Part H of the Project available to EMBRAPA; under arrangements satisfactory to the Bank. (e) The Borrower, through DTN, shall enter into agreements, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions Project Implementation Plan. If any provision of Schedule 5 to the Project Implementation Plan is inconsistent with a provision of this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program; (B) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject in such manner as to: (i) protect the interest of the Bank and the Borrower; (ii) enable the Borrower to comply with its obligations under this Agreement; and (iii) achieve the purposes of the Project. (f) Unless the Bank shall otherwise agree, the Borrower shall not amend, abrogate or waive the provisions of the MCR applicable to the Program. (g) Without limitation to its other obligations under this Section, the Borrower Agreement shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms and conditions satisfactory to the Bank, not later than six months after the date of the Amending Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive or fail to enforce any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendationsgovern. Section 3.02. Except as the Bank shall otherwise agree, procurement of the goods, works goods and consultants’ services required for the carrying out of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan shall be made in accordance with governed by the provisions of Schedule 2 4 to the Project this Agreement. (a) The Borrower shall: (ithrough MEF) furnish to the Bank by October 31 in shall enter into agreements with each year, for its review and comment, the proposed POA and budget for the Project and for the Northeast Rural Development Program for the following fiscal year; (ii) afford the Bank a reasonable opportunity to comment on any modifications the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budget. (b) In order to assist the EMBRAPA in carrying out Part H of the Project, the Borrower shall cause EMBRAPAImplementing Agency, under contractual arrangements satisfactory to the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, such consultants agreements to provide for MEF’s overall coordination of the implementation of Parts A through C of the Project, including, inter alia: (i) MEF's obligation to take all actions necessary or appropriate to enable each such Implementing Agency to participate in the implementation of the Project; and (ii) the obligation of each such Implementing Agency to: (A) operate, maintain, insure and repair, in accordance with appropriate technical and insurance standards, the goods financed out of the proceeds of the Loan; and (B) adequately train the personnel assigned to the implementation of the Project. (b) The Borrower (through MEF) shall enter into an agreement with CGE, under terms and conditions satisfactory to the Bank, such agreement to provide the rules and procedures for CGE’s cooperation in the implementation of Part D of the Project. (c) The Borrower (through MEF) shall enter into an agreement with AME, under terms and conditions satisfactory to the Bank, such agreement to provide the rules and procedures for AME’s cooperation in the implementation of Part B.2 of the Project. (d) The Borrower (through MEF) shall exercise its rights and carry out its obligations under each Implementation Agreement, the CGE Participation Agreement and the AME Participation Agreement in such a manner as to protect the interests of the Borrower and the Bank and to accomplish the purposes of the Loan and, except as the Bank shall otherwise agree, the Borrower shall not assign, amend, abrogate, waive or fail to enforce any Implementation Agreement, the CGE Participation Agreement or the AME Participation Agreement or any provision thereof. (a) The Borrower shall maintain, at all times during the execution of the Project, PIU with structure and responsibilities satisfactory to the Bank, including the following responsibilities: (i) overall Project financial management, comprising records, accounts, audits and reports; (ii) procurement of the goods and services to be financed out of the proceeds of the Loan; (iii) monitoring of the performance of the Implementing Agencies pursuant to the Implementation Agreements; and (iv) coordinating with CGE and AME the implementation of Parts D and B.2 of the Project, respectively. (b) The Borrower shall ensure that PIU is staffed at all times during the execution of the Project by professional staff with experience and qualifications satisfactory to the Bank, operating under terms of reference satisfactory to the Bank, selected in accordance with principles competitive and transparent procedures satisfactory to the Bank on Bank, all as prescribed in the basis of Operational Manual. (a) The Borrower shall carry out the "Guidelines Project in accordance with an operational manual, satisfactory to the Bank, said manual to provide regulations for the Use coordination of Consultants by World Bank Borrowers Project implementation, including: detailed disbursement, accounting, auditing and by the World Bank as Executing Agency" published by the bank in August 1981. Section 3.04. The Bank and the Borrower hereby agree that the obligations set forth in Sections 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out, or caused to be carried out, by (i) the State in respect of the State Project, and byreporting procedures;

Execution of the Project. (a) The Borrower declares its commitment to the objectives objective of the Project as set forth in Schedule 2 and, to this Agreementend, and to this end shall cause: (i) SDR to coordinate (at shall, with the federal level) and issue guidelines related to the carrying out guidance of the Program, to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely manner; (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, Advisory Board cause CONICYT to carry out the credit program included in Parts D and I of the Project; and (iv) EMBRAPA to carry out Part H of the Project, all with due diligence and efficiency, efficiency and in accordance conformity with appropriate scientific, technological, economic, administrative, financial financial, and agricultural environmental practices. (b) Without any limitation or restriction upon any of its other obligations under the Loan Agreement, and shall provide, and/or cause CONICYT to provide promptly as needed, the Borrower shall cause the State, under contractual arrangements satisfactory to the Bank, to perform in accordance with the provisions of the Project Agreement, all the respective obligations of the State therein set forth, shall take or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable resources required for the State to perform its obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performanceProject. (cb) Without limitation to its obligations under paragraph (a) above, the The Borrower shall, during the implementation of the Project: (i) take all action as shall be required cause CONICYT to regulate, in maintain a manner Project coordination team (PCT) with functions and responsibilities satisfactory to the Bank, at all times headed by a Project coordinator and assisted by staff in adequate numbers, all with qualifications and experience acceptable to the funding procedures which will ensure that the Executing Entities shall have the funds required for carrying out the Project available to them in a timely mannerBank; and (ii) provide or maintain, and cause SUDENE CONICYT to maintain, an advisory board to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by overall guidance for the State, as referred to in Section 2.01 (h) implementation of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H of the Project and under the State Project, respectivelywith composition and functions satisfactory to the Bank, as provided including in each POAits composition, inter alia, representatives from the Borrower’s ministries and agencies and the productive sector, and leaders from academia and research institutions. (dc) The Borrower shall make the proceeds of the Loan allocated respectively:available to CONICYT under an agreement to be entered into between the Borrower, through its Ministry of Finance, and CONICYT, under terms and conditions which shall have been approved by the Bank, which shall include, inter alia, CONICYT’s obligations to carry out the Project in accordance with the provisions of this Agreement. (d) The Borrower shall cause CONICYT to enter into agreements, with each Beneficiary, under terms and conditions substantially similar to those of the model form contained in the Operational Manual (the Grant Agreements), such agreements to provide for: the transfer by CONICYT to such Beneficiary, on a grant basis, of the funds required by such Beneficiary to carry out a Subproject; and the obligation of such Beneficiary to carry out such Subproject as provided in the Operational Manual. (i) for purposes The Borrower shall exercise its rights and carry out its obligations under the CONICYT Agreement in such manner as to protect the interests of the State Project available to the State; and (ii) for Part H of the Project available to EMBRAPA; under arrangements satisfactory to the Bank. (e) The Borrower, through DTN, shall enter into agreements, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions of Schedule 5 to this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program; (B) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project Borrower and the preceding month’s lending performance of Bank and to accomplish the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds purposes of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject in such manner , except as to: (i) protect the interest of the Bank and the Borrower; (ii) enable the Borrower to comply with its obligations under this Agreement; and (iii) achieve the purposes of the Project. (f) Unless the Bank shall otherwise agree, the Borrower shall not assign, amend, abrogate abrogate, suspend, waive, terminate or waive fail to enforce the provisions of the MCR applicable to the ProgramCONICYT Agreement or any provision thereof. (gii) Without limitation The Borrower shall cause CONICYT: (A) to exercise its other rights and carry out its obligations under this Sectioneach Grant Agreement, in such manner as to protect the interests of the Borrower shall provide and the funds necessary Bank and to finance accomplish the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms and conditions satisfactory to the Bank, not later than six months after the date purposes of the Amending Agreement, such agreement to define the respective responsibility of SUDENE Loan; and EMBRAPA regarding Part H of the Project and (B) except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to assign, amend, abrogate, waive suspend, waive, terminate or fail to enforce any Grant Agreement or any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendationsthereof. Section 3.02. Except as the Bank shall otherwise agree, procurement of the goods, works and consultants' services required for the carrying out of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan shall be made in accordance with governed by the provisions of Schedule 2 4 to the Project this Agreement. (a) Section 3.03. The Borrower shall: (i) furnish to the Bank by October 31 in each year, for its review and comment, the proposed POA and budget for the Project and for the Northeast Rural Development Program for the following fiscal year; (ii) afford the Bank a reasonable opportunity to comment on any modifications the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budget. (b) In order to assist the EMBRAPA in carrying out Part H of the Project, the Borrower shall cause EMBRAPACONICYT to carry out the Project in accordance with an operational manual, under contractual arrangements satisfactory to the Bank, said manual to employ consultants whose qualificationsinclude, experience inter alia: (a) the procedures for the carrying out, monitoring and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis evaluation of the "Guidelines Project (including the procurement, financial and environmental requirements thereof); (b) the criteria for the Use approval, implementation and monitoring of Consultants by World Bank Borrowers Subprojects; (c) the criteria for eligibility of Beneficiaries; and (d) a model agreement for implementation of Subprojects. In case of any conflict between the terms of the Operational Manual and by those of this Agreement, the World Bank as Executing Agency" published by the bank in August 1981terms of this Agreement shall prevail. Section 3.04. The Bank Borrower shall cause CONICYT: (a) to maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with the Performance Indicators, the carrying out of the Project and the Borrower hereby agree that the obligations set forth in Sections 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09 achievement of the General Conditions objectives thereof; (relating b) to insuranceprepare, use under terms of goods reference satisfactory to the Bank, and servicesfurnish to the Bank, plans not later than twelve months after the Effective Date and schedulesyearly thereafter during the period of Project implementation, records a report integrating the results of the evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the period preceding the date of such report and reports, maintenance setting out the measures recommended to ensure the efficient carrying out of the Project and land acquisition, respectivelythe achievement of the objectives thereof during the period following such date; and (c) shall be carried out, or caused to be carried out, by (i) to review with the State Bank, within no more than two months after each such report’s preparation, the reports referred to in respect paragraph (b) of the State Project, and bythis Section; and

Execution of the Project. (a) The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and and, to this end end, shall cause: (i) SDR to coordinate (at the federal level) and issue guidelines related to the carrying out of the Program, to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely manner; (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, to carry out the credit program included in Parts D and I of the Project; and (iv) EMBRAPA to carry out Part H of the Project, all through the PCU and the TIU, with due diligence and efficiency, efficiency and in accordance conformity with appropriate administrative, financial financial, engineering and agricultural environmental practices. (b) Without any limitation or restriction upon any of its other obligations under the Loan Agreement, and shall provide, promptly as needed, the Borrower shall cause the State, under contractual arrangements satisfactory to the Bank, to perform in accordance with the provisions of the Project Agreement, all the respective obligations of the State therein set forth, shall take or cause to be taken all action, including the provision of funds, facilities, services and other resourcesresources required for the Project. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Borrower and the Association shall otherwise agree, necessary or appropriate the Borrower shall carry out the Project in accordance with the POM and the Implementation Program set forth in Schedule 4 to enable the State to perform its obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performancethis Agreement. (c) Without limitation to its obligations under paragraph (a) above, the Borrower shall: (i) take all action as shall be required to regulate, in a manner satisfactory to the Bank, the funding procedures which will ensure that the Executing Entities shall have the funds required for carrying out the Project available to them in a timely manner; and (ii) provide or cause SUDENE to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h) of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H of the Project and under the State Project, respectively, as provided in each POA. (d) The Borrower shall make the proceeds of the Credit available to MOCIT and NBA, respectively, under subsidiary loan agreements to be entered into between the Borrower’s Ministry of Finance and MOCIT and NBA, respectively, under terms and conditions which shall have been approved by the Association, and which shall include, with respect to the Subsidiary Loan allocated respectively: Agreement with MOCIT, that MOCIT: (i) will provide Azeri Post with the appropriate managerial autonomy and accountability necessary for purposes the successful completion of the State Project available to and for direct participation in the Statenational payment system; and (ii) will enable Azeri Post to obtain the necessary licenses, as needed, to establish and operate a satellite-based network for Part H of postal offices, provided it has satisfied the Project available to EMBRAPA; under arrangements satisfactory to the Bank. (e) The Borrower, through DTN, shall enter into agreements, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions of Schedule 5 to this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program; (B) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiariestechnical parameters; and (Fd) The Borrower shall exercise its rights in relation to each Subproject under the Subsidiary Loan Agreements in such manner as to: (i) to protect the interest interests of the Bank Borrower and the Borrower; (ii) enable the Borrower Association and to comply with its obligations under this Agreement; and (iii) achieve accomplish the purposes of the Project. (f) Unless Credit, and, except as the Bank Association shall otherwise agree, the Borrower shall not assign, amend, abrogate or waive the provisions of the MCR applicable to the ProgramSubsidiary Loan Agreements or any provision thereof. (ga) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms and conditions satisfactory to the Bank, not later than six months after the date of the Amending Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive or fail to enforce any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendations. Section 3.02. Except as the Bank Association shall otherwise agree, procurement of the goods, works and consultants’ services required for the carrying out of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan Credit shall be made in accordance with governed by the provisions of Schedule 2 3 to this Agreement, as said provisions may be further elaborated in the Project Agreement. (a) The Borrower shall: (i) furnish to the Bank by October 31 in each year, for its review and comment, the proposed POA and budget for the Project and for the Northeast Rural Development Program for the following fiscal year; (ii) afford the Bank a reasonable opportunity to comment on any modifications the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budgetProcurement Plan. (b) In order The Borrower shall update the Procurement Plan in accordance with terms of reference acceptable to assist the EMBRAPA in carrying out Part H Association, and furnish such update to the Association not later than twelve (12) months after the date of the Projectpreceding Procurement Plan, for the Association’s approval. Section 3.03. For the purposes of Section 9.06 of the General Conditions and without limitation thereto, the Borrower shall cause EMBRAPAshall: (a) prepare, under contractual arrangements satisfactory to the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis of guidelines acceptable to the "Guidelines Association, and furnish to the Association not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Association, a plan for the Use future operation of Consultants by World Bank Borrowers the Project; and by afford the World Bank as Executing Agency" published by the bank in August 1981. Section 3.04. The Bank and Association a reasonable opportunity to exchange views with the Borrower hereby agree that the obligations set forth in Sections 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out, or caused to be carried out, by (i) the State in respect of the State Project, and byon said plan.

Execution of the Project. (a) The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and and, to this end end, shall cause: (i) SDR to coordinate (at the federal level) and issue guidelines related to the carrying out of the Program, to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely manner; (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, to carry out the credit program included in Parts D and I of the Project; and (iv) EMBRAPA to carry out Part H of the Project, all or cause the Project to be carried out, with due diligence and efficiency, efficiency and in accordance conformity with appropriate administrative, financial financial, educational and agricultural engineering practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. To that end, the Borrower shall make, and cause the Province to make to the extent of its responsibility for carrying out the Project, adequate and timely budgetary provisions for the implementation of the Project. (b) Without any limitation or restriction upon any of its other obligations under the Loan this Agreement, the Borrower shall cause the State, under contractual arrangements satisfactory to the Bank, Province to perform in accordance with the provisions of the Project Agreement, Agreement all the respective obligations of the State therein set forth, shall take or and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable the State Province to perform its such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (c) Without limitation to its obligations under upon the provisions of paragraph (a) above, of this Section and except as the Borrower shall: (i) take all action as shall be required to regulate, acting in a manner satisfactory to the Bank, the funding procedures which will ensure that the Executing Entities shall have the funds required for carrying out the Project available to them in a timely manner; and (ii) provide or cause SUDENE to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h) of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H of the Project and under the State Project, respectively, as provided in each POA. (d) The Borrower shall make the proceeds of the Loan allocated respectively: (i) for purposes of the State Project available to the State; and (ii) for Part H of the Project available to EMBRAPA; under arrangements satisfactory to the Bank. (e) The Borrower, through DTN, shall enter into agreements, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible consultation with the provisions of Schedule 5 to this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program; (BProvince) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject in such manner as to: (i) protect the interest of the Bank and the Borrower; (ii) enable the Borrower to comply with its obligations under this Agreement; and (iii) achieve the purposes of the Project. (f) Unless the Bank Association shall otherwise agree, the Borrower shall not amendcarry out the Project, abrogate or waive cause the provisions of Project to be carried out, in accordance with the MCR applicable Implementation Program set forth in Schedule 4 to the Programthis Agreement. (ga) Without limitation For the purposes of contributing to its other obligations under this Sectionthe development of the primary education sector of the Borrower, the Borrower shall provide carry out or cause to be carried out the funds necessary Project in accordance with a Primary Education Action Program to finance be agreed upon between the costs Borrower (acting in consultation with the Province) and the Association. (b) The Borrower and the Association shall annually exchange views on the progress achieved in carrying out the Project and the Action Program in accordance with criteria and a timetable to be agreed between the Borrower (acting in consultation with the Province) and the Association. (c) Prior to any of any subsidies related to the terms exchange of onlending views referred to in paragraph (eb) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shallshall furnish to the Association for its review and comments: (i) cause EMBRAPA to enter into an agreement with SUDENE, a report on terms and conditions satisfactory to the Bank, not later than six months after progress in the date of the Amending Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H implementation of the Project as well as on the progress achieved in carrying out the Action Program; and except as (ii) estimated Project expenditures to be incurred by the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive or fail to enforce any provision of such agreementBorrower in the subsequent fiscal year. (i) The Borrower shall, by not later than June 30, 1993, review, together with Section 3.03. In order to assist the Bank and SUDENEProvince in carrying out those parts of the Project for which the Province is responsible, the ProgramBorrower shall make available to the Province part of the proceeds of the Credit, in accordance with procedures, and terms of reference and conditions, mutually satisfactory to the Bank, Borrower and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendationsAssociation. Section 3.023.04. Except as the Bank Association shall otherwise agree, procurement of the goods, works and consultants’ services required for the carrying out of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan Credit shall be made in accordance with governed by the provisions of Schedule 2 3 to the Project this Agreement. (a) Section 3.05. The Borrower shall: (i) furnish to the Bank by October 31 in each year, for its review and comment, the proposed POA and budget for the Project and for the Northeast Rural Development Program for the following fiscal year; (ii) afford the Bank a reasonable opportunity to comment on any modifications the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budget. (b) In order to assist the EMBRAPA in carrying out Part H of the Project, the Borrower shall cause EMBRAPA, under contractual arrangements satisfactory to the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the bank in August 1981. Section 3.04. The Bank and the Borrower Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07, 9.07 and 9.08 and 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out, or caused to be carried out, by (i) the State in respect of the State Project, and byParts of the Project for which the Province is responsible shall be carried out by the Province pursuant to Section 2.03 of the Project Agreement.

Execution of the Project. (a) The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and and, to this end shall cause: (i) SDR to coordinate (at the federal level) and issue guidelines related to the carrying out of the Programend, to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely manner; (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, to carry out the credit program included in Parts D and I of the Project; and (iv) EMBRAPA to carry out Part H of the Project, all with due diligence and efficiency, in accordance with appropriate administrative, financial and agricultural practices. (b) Without without any limitation or restriction upon any of its other obligations under the Loan Agreement, the Borrower shall shall: (i) cause the State, under contractual arrangements satisfactory to the Bank, FUNDACION and ESCUELA to perform in accordance with the provisions of the FUNDACION Project Agreement and the Subsidiary Agreement, respectively, all the respective obligations of the State FUNDACION and ESCUELA therein set forth, shall ; (ii) take or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable the State FUNDACION and ESCUELA to perform its such obligations, ; and shall (iii) not take or permit to be taken any action which would prevent or interfere with such performance. (cb) Without limitation to its obligations under the provisions of paragraph (a) above, the Borrower shall: (i) take all action as shall be required to regulate, in a manner satisfactory to the Bank, the funding procedures which will ensure that the Executing Entities shall have the funds required for carrying out the Project make available to them in FUNDACION, as a grant, on a timely manner; and (ii) provide or cause SUDENE to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h) of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H of the Project and under the State Project, respectively, as provided in each POA. (d) The Borrower shall make the proceeds of the Loan allocated respectively: (i) for purposes of the State Project available to the State; and (ii) for Part H of the Project available to EMBRAPA; under arrangements satisfactory to the Bank. (e) The Borrower, through DTN, shall enter into agreements, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions of Schedule 5 to this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program; (B) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds of the Loan, and any additional funds and resources as required by FUNDACION to carry out Parts A and B.1 of the goods Project; and services financed (ii) make available to ESCUELA, through FUNDACION, as a grant, on a timely basis, the proceeds of the Loan as required by ESCUELA to carry out Part B.2 of the Project under an agreement to be entered into between the Borrower, FUNDACION and ESCUELA, such proceeds and agreement to include, inter alia, the repayment performance of Beneficiaries; andprovisions set forth in Schedule 6 to this Agreement. (Fc) The Borrower shall exercise its rights in relation to each Subproject under the Subsidiary Agreement in such manner as to: (i) to protect the interest interests of the Borrower and the Bank and the Borrower; (ii) enable the Borrower to comply with its obligations under this Agreement; and (iii) achieve accomplish the purposes of the Project. (f) Unless Loan, and except as the Bank shall otherwise agree, the Borrower shall not assign, amend, abrogate or waive the provisions of the MCR applicable to the Program. (g) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms and conditions satisfactory to the Bank, not later than six months after the date of the Amending Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive Subsidiary Agreement or fail to enforce any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendationsthereof. Section 3.02. Except as the Bank shall otherwise agree, procurement of the goods, works goods and consultants’ services required for the carrying out of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan shall be made in accordance with governed by the provisions of Schedule 2 4 to the Project this Agreement. (a) The Borrower shall: (i) furnish to the Bank by October 31 in each year, for its review and comment, the proposed POA and budget for the Project and for the Northeast Rural Development Program for the following fiscal year; (ii) afford the Bank a reasonable opportunity to comment on any modifications the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budget. (b) In order to assist the EMBRAPA in carrying out Part H of the Project, the Borrower shall cause EMBRAPA, under contractual arrangements satisfactory to the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the bank in August 1981. Section 3.043.03. The Bank and the Borrower hereby agree that the obligations set forth in Sections 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out, or caused to be carried out, by (i) the State in respect of the State Project, and byand

Execution of the Project. (a) The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and and, to this end end, shall cause: (i) SDR to coordinate (at the federal level) and issue guidelines related to the carrying out of the Program, to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely manner; (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, to carry out the credit program included Project through MEF, with the cooperation of CGE (in Parts respect of Part D and I of the Project; ) and AME (iv) EMBRAPA to carry out in respect of Part H B.2 of the Project), and with participation of the Implementing Agencies (in respect of Parts A through C of the Project), all with due diligence and efficiency, efficiency and in accordance conformity with appropriate administrativefinancial, financial accounting, administrative and agricultural managerial practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without any limitation or restriction upon any of its other obligations under Pursuant to the Loan CGE Participation Agreement, the AME Participation Agreement and each Implementation Agreement, the Borrower shall cause the State, under contractual arrangements satisfactory to the Bank, to perform in accordance with the provisions of the Project Agreement, all the respective obligations of the State therein set forth, shall shall: (i) take or cause to be taken all action, including the provision of funds, facilities, services and other resources, action necessary or appropriate to enable MEF, CGE, AME and the State Implementing Agencies to perform its obligations, and shall carry out the Project; and (ii) not take or permit to be taken any action which would prevent or interfere with such performancethe carrying out of the Project by MEF, CGE, AME and the Implementing Agencies. (c) Without limitation or restriction to its obligations under paragraph the provisions of paragraph (a) above, the Borrower shall: (ithrough MEF) take all action as shall be required to regulate, in a manner satisfactory to the Bank, the funding procedures which will ensure that the Executing Entities shall have the funds required for carrying carry out the Project available to them in a timely manner; and (ii) provide or cause SUDENE to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h) of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H of the Project and under the State Project, respectively, as provided in each POA. (d) The Borrower shall make the proceeds of the Loan allocated respectively: (i) for purposes of the State Project available to the State; and (ii) for Part H of the Project available to EMBRAPA; under arrangements satisfactory to the Bank. (e) The Borrower, through DTN, shall enter into agreements, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions Project Implementation Plan. If any provision of Schedule 5 to the Project Implementation Plan is inconsistent with a provision of this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program; (B) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject in such manner as to: (i) protect the interest of the Bank and the Borrower; (ii) enable the Borrower to comply with its obligations under this Agreement; and (iii) achieve the purposes of the Project. (f) Unless the Bank shall otherwise agree, the Borrower shall not amend, abrogate or waive the provisions of the MCR applicable to the Program. (g) Without limitation to its other obligations under this Section, the Borrower Agreement shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms and conditions satisfactory to the Bank, not later than six months after the date of the Amending Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive or fail to enforce any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendationsgovern. Section 3.02. Except as the Bank shall otherwise agree, procurement of the goods, works goods and consultants’ services required for the carrying out of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan shall be made in accordance with governed by the provisions of Schedule 2 4 to the Project this Agreement. (a) The Borrower shall: (through MEF) shall enter into agreements with each Implementing Agency, under terms and conditions satisfactory to the Bank, such agreements to provide for MEF’s overall coordination of the implementation of Parts A through C of the Project, including, inter alia: (i) MEF's obligation to take all actions necessary or appropriate to enable each such Implementing Agency to participate in the implementation of the Project; and (ii) the obligation of each such Implementing Agency to: (A) operate, maintain, insure and repair, in accordance with appropriate technical and insurance standards, the goods financed out of the proceeds of the Loan; and (B) adequately train the personnel assigned to the implementation of the Project. (b) The Borrower (through MEF) shall enter into an agreement with CGE, under terms and conditions satisfactory to the Bank, such agreement to provide the rules and procedures for CGE’s cooperation in the implementation of Part D of the Project. (c) The Borrower (through MEF) shall enter into an agreement with AME, under terms and conditions satisfactory to the Bank, such agreement to provide the rules and procedures for AME’s cooperation in the implementation of Part B.2 of the Project. (d) The Borrower (through MEF) shall exercise its rights and carry out its obligations under each Implementation Agreement, the CGE Participation Agreement and the AME Participation Agreement in such a manner as to protect the interests of the Borrower and the Bank and to accomplish the purposes of the Loan and, except as the Bank shall otherwise agree, the Borrower shall not assign, amend, abrogate, waive or fail to enforce any Implementation Agreement, the CGE Participation Agreement or the AME Participation Agreement or any provision thereof. (a) The Borrower shall maintain, at all times during the execution of the Project, PIU with structure and responsibilities satisfactory to the Bank, including the following responsibilities: (i) overall Project financial management, comprising records, accounts, audits and reports; (ii) procurement of the goods and services to be financed out of the proceeds of the Loan; (iii) monitoring of the performance of the Implementing Agencies pursuant to the Implementation Agreements; and (iv) coordinating with CGE and AME the implementation of Parts D and B.2 of the Project, respectively. (b) The Borrower shall ensure that PIU is staffed at all times during the execution of the Project by professional staff with experience and qualifications satisfactory to the Bank, operating under terms of reference satisfactory to the Bank, selected in accordance with competitive and transparent procedures satisfactory to the Bank, all as prescribed in the Operational Manual. (a) The Borrower shall carry out the Project in accordance with an operational manual, satisfactory to the Bank, said manual to provide regulations for the coordination of Project implementation, including: (i) detailed disbursement, accounting, auditing and reporting procedures; (ii) specific procurement responsibilities, processes and internal controls; (iii) precise monitoring and evaluation plans for the Project; and (iv) effective mechanisms for dissemination of information related to the Project. (b) If any provision of the Operational Manual is inconsistent with a provision of this Agreement, the provisions of this Agreement shall govern. (a) The Borrower, through MEF, shall: (i) not later than October 31 of each year, furnish to the Bank by October 31 in each yearBank, for its review and commentapproval, an annual work plan for the following calendar year prepared in consultation with CGE (in respect of Part D of the Project) and AME (in respect of Part B.2 of the Project), such plan to specify: (A) the activities to be financed out of the proceeds of the Loan during such calendar year; and (B) the required financial and human resources; and (ii) upon the Bank’s approval, carry out such Annual Work Plan in accordance with its terms. (b) The Bank may refrain from approving any Annual Work Plan if, inter alia, the proposed POA Bank has determined that the Borrower is not carrying out the Project as provided in this Agreement and budget no appropriate remedial actions, satisfactory to the Bank, have been taken therefor. Section 3.07. With regard to Part D of the Project, the Borrower (through MEF) shall enter into an agreement with a private audit firm, under terms and conditions satisfactory to the Bank, for the provision of on-the-job training on computer-assisted auditing techniques. Section 3.08. The Borrower, through MEF, shall: (a) not later than one hundred and twenty (120) days after the Effective Date, complete a baseline survey on the status of SIGEF in the Implementing Agencies (including user satisfaction indicators), such baseline survey to be conducted with the assistance of independent consultants of experience and qualifications satisfactory to the Bank, operating under terms of reference satisfactory to the Bank; (b) not later than November 30th of each year of Project implementation, starting in 2004, conduct periodic updates of the survey referred to in paragraph (a) above, such updates also to be conducted with the assistance of independent consultants of experience and qualifications satisfactory to the Bank, operating under terms of reference satisfactory to the Bank; (c) not later than thirty (30) days after the completion of the survey and updates referred to in paragraphs (a) and (b) above, furnish to the Bank, for its review and comments, the findings of such survey and updates; and (d) not later than sixty (60) days after the completion of the survey and updates referred to in paragraphs (a) and (b) above, discuss the results of such survey and updates with representatives of the Implementing Agencies, taking into account the Bank’s comments thereon. Section 3.09. The Borrower, through MEF, shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with the Performance Indicators, the carrying out of the Project and the achievement of the objectives thereof; and (b) not later than July 31 and January 31 of each year of Project implementation, starting in 2004, furnish to the Bank progress reports on the execution of the Project during the preceding calendar semester, of such scope and in such detail as the Bank may reasonably request. Section 3.10. The Borrower, through MEF, shall: (a) not later than August 31 and February 28 of each year of Project implementation, starting in 2004, hold a Project semi-annual review with the Bank, such review to be based on the reports referred to in Section 3.08 (b) of this Agreement; (b) not later than August 31, 2005 hold a Project mid-term review to evaluate overall progress in the implementation of the Project and in the achievement of its objectives; and (c) if, as a result of any of the above reviews, the Bank shall have reasonably determined that the progress in the implementation of the Project or in the achievement of its objectives is not satisfactory, promptly take or cause to be taken all such remedial action, satisfactory to the Bank, as shall be necessary for the Northeast Rural Development Program efficient implementation of the Project or the timely achievement of its objectives. Section 3.11. For the purposes of the sustainability of the Project, the Borrower (through MEF) shall: (a) not later than one (1) year after the Effective Date, furnish to the Bank, for its review and approval, a proposed overall sustainability plan for Project activities, including the transfer of the goods and consultants’ reports financed out of the proceeds of the Loan to the line units of MEF that will assume the functions and responsibilities of the PIU; (b) not later than two (2) years after the Effective Date, start the implementation of the sustainability plan referred to in paragraph (a) above, as approved by the Bank; and (c) not later than September 1,2006, complete the implementation of the sustainability plan referred to in paragraph (a) above, and furnish to the Bank evidence (satisfactory to the Bank) about such completion. Section 3.12. For the purposes of Section 9.07 of the General Conditions and without limitation thereto, the Borrower (through MEF) shall: (a) prepare, on the basis of guidelines acceptable to the Bank, and furnish to the Bank not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Bank, a plan for the following fiscal yearcontinued achievement of Project objectives; and (iib) afford the Bank a reasonable opportunity to comment on any modifications exchange views with the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budgetsaid plan. (b) In order to assist the EMBRAPA in carrying out Part H of the Project, the Borrower shall cause EMBRAPA, under contractual arrangements satisfactory to the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the bank in August 1981. Section 3.04. The Bank and the Borrower hereby agree that the obligations set forth in Sections 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out, or caused to be carried out, by (i) the State in respect of the State Project, and by

Execution of the Project. (a) The Borrower declares its commitment to the objectives objective of the Project as set forth in Schedule 2 to this Agreementand, and to this end shall cause: shall: (i) SDR to coordinate (at the federal level) and issue guidelines related to the carrying carry out Part B of the Program, to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely manner; Project through MEC; (ii) SUDENE to coordinate (at carry out Part C of the regional level), supervise and monitor the ProgramProject through MoH; and (iii) the Participating Banks, through Participating Agreements, to carry out the credit program included in Parts D and I of the Project; and (iv) EMBRAPA cause IBGE to carry out Part H A of the Project, all with due diligence and efficiency, efficiency and in accordance conformity with appropriate economic, administrative, financial financial, environmental and agricultural social practices. (b) Without any limitation or restriction upon any of its other obligations under the Loan Agreement, and shall provide, promptly as needed, the Borrower shall cause the State, under contractual arrangements satisfactory to the Bank, to perform in accordance with the provisions of the Project Agreement, all the respective obligations of the State therein set forth, shall take or cause to be taken all action, including the provision of funds, facilities, services and other resourcesresources required for the Project. (b) The Borrower shall, necessary or appropriate during the implementation of the Project: (i) maintain in MoH; and (ii) cause IBGE to enable maintain, Project implementation units (PIUs) with functions and responsibilities satisfactory to the State to perform its obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performanceBank. (c) Without limitation to its obligations The Borrower shall enter into an agreement with IBGE, under paragraph (a) above, the Borrower shall: (i) take all action as shall be required to regulate, in a manner terms and conditions satisfactory to the Bank, to set forth their respective responsibilities in the funding procedures which will ensure that implementation and coordination of Part A of the Executing Entities shall have Project, including IBGE’s obligation to establish and maintain: (i) the funds required for carrying out the Project available to them in a timely mannerIBGE Unit; and (ii) provide or cause SUDENE a social statistics committee, with powers and responsibilities satisfactory to provide advances in Cruzeiros into: (A) an account opened the Bank, to monitor and operated by EMBRAPA; and (B) an account opened and operated by evaluate the State, as referred to in Section 2.01 (h) statistical information demands of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H of the Project and under the State Project, respectively, as provided in each POAother governmental agencies. (d) The Borrower shall make the proceeds of the Loan allocated respectivelyshall: (i) for purposes exercise its rights and carry out its obligations under the IBGE Agreement in such manner as to protect the interests of the State Project available to the State; and (ii) for Part H of the Project available to EMBRAPA; under arrangements satisfactory to the Bank. (e) The Borrower, through DTN, shall enter into agreements, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions of Schedule 5 to this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program; (B) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project Borrower and the preceding month’s lending performance of Bank and to accomplish the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds purposes of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject in such manner , except as to: (i) protect the interest of the Bank and the Borrower; (ii) enable the Borrower to comply with its obligations under this Agreement; and (iii) achieve the purposes of the Project. (f) Unless the Bank shall otherwise agree, the Borrower shall not amendassign, abrogate or waive the provisions of the MCR applicable to the Program. (g) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms and conditions satisfactory to the Bank, not later than six months after the date of the Amending Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive suspend, waive, terminate or fail to enforce the IBGE Agreement or any provision thereof; and (ii) cause IBGE to carry out its obligations and exercise its rights under the IBGE Agreement, in such manner as to protect the interests of such agreementthe Borrower and the Bank and to accomplish the purposes of the Loan. (ia) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendations. Section 3.02. Except as the Bank shall otherwise agree, procurement of the goods, works goods and consultants’ services required for the carrying out Parts A and C of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan shall be made in accordance with governed by the provisions of Schedule 2 4 to this Agreement, as said provisions may be further elaborated in the Project Agreement. (a) The Borrower shall: (i) furnish to the Bank by October 31 in each year, for its review and comment, the proposed POA and budget for the Project and for the Northeast Rural Development Program for the following fiscal year; (ii) afford the Bank a reasonable opportunity to comment on any modifications the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budgetProcurement Plans. (b) In order The Borrower shall update the Procurement Plans in accordance with guidelines acceptable to assist the EMBRAPA in carrying Bank, and furnish such updates to the Bank not later than 12 months after the date of the preceding Procurement Plans, for the Bank’s approval. (c) MEC shall furnish to the Bank for its technical comments the terms of reference of the consultants to be employed for purposes of Part B of the Project. Section 3.03. The Borrower shall: (a) carry out Part H C of the Project through MoH; and (b) cause IBGE to carry out Part A of the Project, the Borrower shall cause EMBRAPA, under contractual arrangements satisfactory to the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected in accordance with principles an operational manual, said manual to include, inter alia, the procedures for the carrying out, monitoring and procedures satisfactory to the Bank on the basis evaluation of the "Guidelines for Project (including the Use procurement, financial and disbursement requirements thereof and the Performance Indicators). In case of Consultants by World Bank Borrowers any conflict between the terms of the Operational Manual and by those of this Agreement, the World Bank as Executing Agency" published by the bank in August 1981terms of this Agreement shall prevail. Section 3.04. The Bank Borrower shall through MEC and MoH, and cause IBGE to: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with the Performance Indicators, the carrying out of the Project and the Borrower hereby agree that the obligations set forth in Sections 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09 achievement of the General Conditions objective thereof; (relating b) prepare, under terms of reference satisfactory to insurancethe Bank, use and furnish to the Bank, not later than six months after the Effective Date and biannually thereafter during the period of goods and servicesProject implementation, plans and schedules, records and three reports, maintenance one each for MEC, MoH and land acquisitionIBGE, respectivelycomprising the results of the evaluation activities performed pursuant to paragraph (a) shall be carried outof this Section, or caused on the progress achieved in the carrying out of the Project during the period preceding the date of such report and setting out the measures recommended to be carried out, by ensure the efficient carrying out of the Project and the achievement of the objective thereof during the period following such date; and (c) (i) review with the State Bank, within no more than two months after each such report’s preparation, the reports referred to in respect paragraph (b) of the State Project, and bythis Section; and

Execution of the Project. (a) The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and and, to this end shall causeend, shall: (i) SDR to coordinate (at the federal level) and issue guidelines related to the carrying out of the Program, to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely manner; (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, cause SIF to carry out the credit program included in Parts D A and I B of the Project; and (ivii) EMBRAPA to carry out Part H C of the ProjectProject through FAP and Parts D and E of the Project through NPO, all with due diligence and efficiency, efficiency and in accordance conformity with appropriate financial, administrative, financial health, education and agricultural managerial practices. (b) Without any limitation or restriction upon any of its other obligations under the Loan Agreement, the Borrower shall cause the State, under contractual arrangements satisfactory to the Bank, to perform and also in accordance with the provisions Operational Manual in the case of the Project AgreementSIF, all the respective obligations of the State therein set forth, and shall take provide or cause to be taken all actionprovided, including promptly as needed, the provision of funds, facilities, services and other resources, necessary or appropriate to enable resources required for the State to perform its obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performanceProject. (c) Without limitation to its obligations under paragraph (a) above, the Borrower shall: (i) take all action as shall be required to regulate, in a manner satisfactory to the Bank, the funding procedures which will ensure that the Executing Entities shall have the funds required for carrying out the Project available to them in a timely manner; and (ii) provide or cause SUDENE to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h) of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H of the Project and under the State Project, respectively, as provided in each POA. (db) The Borrower shall make enter into a subsidiary agreement with SIF, satisfactory to the proceeds of the Loan allocated respectivelyAssociation, providing, inter alia, for: (i) for purposes the transfer of the State Project available to the State; and (ii) for Part H part of the Project available to EMBRAPA; under arrangements satisfactory to the Bank. (e) The Borrower, through DTN, shall enter into agreements, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated Credit to SIF, on a grant basis, for the purposes of carrying out Parts A and B of the credit programs included in Project; and (ii) the obligation of SIF to carry out Parts D A and I B of the Project in accordance with: Agreement; and 1. with the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions of Schedule 5 to this Agreement, the lending policies Agreement and procedures set forth in the MCR applicable to the Program;Operational Manual. (Bc) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank The Borrower shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject under the SIF Subsidiary Agreement in such manner as to: (i) to protect the interest interests of the Bank Borrower and the Borrower; (ii) enable the Borrower Association, and to comply with its obligations under this Agreement; and (iii) achieve accomplish the purposes of the Project. (f) Unless Credit, and, except as the Bank Association shall otherwise agree, the Borrower shall not change, assign, amend, abrogate or waive the provisions of the MCR applicable to the Program. (g) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms and conditions satisfactory to the Bank, not later than six months after the date of the Amending Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive SIF Subsidiary Agreement or fail to enforce any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendationsthereof. Section 3.02. Except as the Bank Association shall otherwise agree, procurement of the goods, works and consultants’ services required for the carrying out of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan Credit shall be made governed by the provisions of Schedule 3 to this Agreement. Section 3.03. The Borrower shall cause SIF, until the Project completion, to maintain an executive director whose experience and qualifications shall be at all times acceptable to the Association and to consult with the Association with respect to the replacement of the executive director of SIF prior to any such replacement. Section 3.04. Without limitation to or restriction upon its reporting requirements under the General Conditions and this Agreement, the Borrower shall, and shall cause SIF, in respect of Parts A and B of the Project, to, promptly inform the Association of any condition which interferes, or threatens to interfere, with the progress of the Project or the Subprojects, the accomplishment of the purposes of the Credit, or the performance of SIF of its obligations under the SIF Subsidiary Agreement, or the performance of SIF and the Requesting Entities under Subproject Agreements. Section 3.05. The Borrower undertakes that, unless the Association shall otherwise agree, Subprojects shall be promoted, identified, appraised, carried out and monitored in accordance with the provisions of Schedule 2 procedures set forth or referred to in the Project AgreementOperational Manual. (a) The Borrower shall: (i) furnish , without limitation to its obligations under Article IX of the Bank General Conditions, by October 31 not later than December 31, 1991, review with SIF and the Association the progress in each yearthe carrying out of the Project, for its such review and commentto include, inter alia, the proposed POA and budget determination of the appropriateness of the amounts established in Part C of Schedule 3 of this Agreement for the Project and for achievement of the Northeast Rural Development Program for purposes of the following fiscal year; (ii) afford the Bank a reasonable opportunity to comment on any modifications the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budgetProject. (b) Pursuant to such review and if so required by the Association, the Borrower shall take or shall cause SIF to take, by not later than January 31, 1992, all actions deemed appropriate by the Association, in form satisfactory to the Association, in order to allow the Borrower and SIF to achieve the purposes of the Project. Section 3.07. Without limitation to its obligations under the General Conditions and under Section 3.01 (a) of this Agreement, the Borrower shall provide SIF, as and when requested, with the funds necessary to cover the investment and operating costs of Subprojects as well as the operating expenses of SIF, in form satisfactory to the Association. Section 3.08. The Borrower shall cause SIF to prepare and present to the Association, by not later than June 30 and December 31 of each year, a report, in form satisfactory to the Association, containing, inter alia, a list of Subprojects approved by SIF. Section 3.09. The Borrower shall carry out the surveys and studies included in Part E of the Project under terms of reference satisfactory to the Association. Section 3.10. In order to assist the EMBRAPA in carrying carry out Part H A, III (i) of the Project, the Borrower shall cause EMBRAPA, under contractual arrangements satisfactory to SIF to: (a) include in the Bank, to employ consultants whose qualifications, experience and Operational Manual the terms and conditions of employment shall the financing to be provided under such Part of the Project; and (b) enter into arrangements with non-governmental organizations, satisfactory to the BankAssociation, such consultants arrangements to be selected include, inter alia, the conditions under which such non- governmental organizations shall assist SIF in accordance with principles and procedures satisfactory to the Bank on the basis carrying out of such Part of the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the bank in August 1981Project. Section 3.04. The Bank and the Borrower hereby agree that the obligations set forth in Sections 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out, or caused to be carried out, by (i) the State in respect of the State Project, and by

Execution of the Project. (a) The Borrower Recipient declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and and, to this end shall causeend, shall: (i) SDR to coordinate carry out Parts A (at the federal level) 1-4), B, C and issue guidelines related to the carrying out D of the Program, to propose annual budgets for such Program Project through MFNR; and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely manner; (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, cause UNDP to carry out the credit program included in Parts D A (5)(a) and I of the Project; and A (iv5)(b) EMBRAPA to carry out Part H of the Project, all with due diligence and efficiency, efficiency and in accordance conformity with appropriate administrativeadministrative and financial practices and with due regard to ecological, financial biodiversity and agricultural practices. (b) Without any limitation or restriction upon any of its other obligations under the Loan Agreementenvironmental factors, and shall provide, promptly as needed, the Borrower shall cause the State, under contractual arrangements satisfactory to the Bank, to perform in accordance with the provisions of the Project Agreement, all the respective obligations of the State therein set forth, shall take or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate resources required for the Project. (b) The Recipient shall make available to enable UNDP a portion of the State to perform its obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performanceproceeds of the GET Grant for the carrying out of Part A (5) of the Project. (c) Without any limitation to its obligations under upon the provisions of paragraph (a) above, of this Section and except as the Borrower shall: (i) take all action as shall be required to regulate, in a manner satisfactory to the Bank, the funding procedures which will ensure that the Executing Entities shall have the funds required for carrying out the Project available to them in a timely manner; and (ii) provide or cause SUDENE to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h) of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H of the Project and under the State Project, respectively, as provided in each POA. (d) The Borrower shall make the proceeds of the Loan allocated respectively: (i) for purposes of the State Project available to the State; and (ii) for Part H of the Project available to EMBRAPA; under arrangements satisfactory to the Bank. (e) The Borrower, through DTN, shall enter into agreements, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions of Schedule 5 to this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program; (B) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project Recipient and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject in such manner as to: (i) protect the interest of the Bank and the Borrower; (ii) enable the Borrower to comply with its obligations under this Agreement; and (iii) achieve the purposes of the Project. (f) Unless the Bank Trustee shall otherwise agree, the Borrower Recipient shall not amend, abrogate or waive the provisions of the MCR applicable to the Program. (g) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms and conditions satisfactory to the Bank, not later than six months after the date of the Amending Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of carry out the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive or fail to enforce any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory the Implementation Program set forth in Schedule 4 to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendationsthis Agreement. Section 3.02. Except as the Bank Trustee shall otherwise agree, procurement of the goods, works and consultants’ services required for the carrying out of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan GET Grant shall be made in accordance with governed by the provisions of Schedule 2 3 to the Project this Agreement. (a) The Borrower Recipient shall, not later than twenty-four months after the Effective Date, conduct jointly with the Trustee and the Riparian States, a midterm review of the Project. Without limitation upon the generality of the foregoing, the review shall cover, inter alia: (i) furnish to the Bank by October 31 in each yeardraft biodiversity map and management plan and its policy, for its review legal and comment, the proposed POA financial implications; and budget for the Project and for the Northeast Rural Development Program for the following fiscal year; (ii) afford the Bank a reasonable opportunity to comment on any modifications implementation and management aspects of the Borrower may intend to introduce to such proposed POA Project, implementation procedures, progress made by the Project, the status and budget; results of training, reporting, accounting and (iii) furnish to audit performance, disbursement procedures and the Bank by January 1 in each year overall sustainability of the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budgetProject. (b) In order Not later than ninety (90) days prior to assist the EMBRAPA midterm review referred to in carrying out Part H (a) above, the Recipient shall furnish to the Trustee, for its comments, a report in such detail as the Trustee shall reasonably request, including an evaluation of the progress achieved in implementing the Project. (c) The Recipient shall, promptly thereafter, carry out the Borrower shall cause EMBRAPA, under contractual arrangements satisfactory to recommendations resulting from the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the bank in August 1981aforementioned review. Section 3.04. The Bank Recipient shall, not later than forty-two months after the Effective Date, submit to the Trustee and SADC a time-bound proposal, satisfactory to the Borrower hereby agree that Trustee, for the obligations set forth implementation of the biodiversity map and management plan for the Lake to be prepared in Sections 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09 accordance with Part D(2) of the Project. Section 3.05. Without limitation upon the provisions of Article IX of the General Conditions Conditions, the Recipient shall: (relating a) prepare and furnish to insurancethe Trustee not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Recipient and the Trustee, use a plan, of goods such scope and servicesin such detail as the Trustee shall reasonably request, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out, or caused to be carried out, by (i) for the State in respect future operation of the State Project; (b) afford the Trustee a reasonable opportunity to exchange views with the Recipient on said plan; and (c) thereafter, carry out said plan with due diligence and byefficiency and in accordance with appropriate practices, taking into account the Trustee’s comments thereon.