Common use of Notification and Advertising Clause in Contracts

Notification and Advertising. The invitation to prequalify or bid for each contract estimated to cost $10,000,000 equivalent or more shall be advertised in accordance with the procedures applicable to large contracts under paragraph 2.8 of the Guidelines. Part C: Other Procurement Procedures 1. International Shopping Office equipment, including telephone exchanges, copiers, fax machines, and microcomputers, estimated to cost more than $50,000, but $300,000 equivalent or less per contract, may be procured under contracts awarded on the basis of international shopping procedures in accordance with the provisions of paragraphs 3.5 and 3.6 of the Guidelines. 2. National Shopping Telephones, local area networks wiring, library supplies, and office supplies, estimated to cost $50,000 equivalent or less per contract and $900,000 equivalent or less in the aggregate (which aggregate shall not apply in the case of goods financed under Part E of the Project), may be procured under contracts awarded on the basis of national shopping procedures in accordance with the provisions of paragraphs 3.5 and 3.6 of the Guidelines. 3. Procurement of Small Works Eligible works estimated not to exceed $75,000 equivalent per contract, and not to exceed $600,000 in the aggregate, shall be procured and awarded on the basis of quotations obtained from three qualified domestic contractors in response to a written invitation. The invitation shall include a detailed description of the works, including basic specifications, the required completion date, a basic form of agreement acceptable to the Bank, and relevant drawings, where applicable. The award shall be made to the contractor who offers the lowest price quotation for the required work, and who has the experience and resources to successfully complete the contract. Part D: Review by the Bank of Procurement Decisions 1. Procurement Planning Prior to the issuance of any invitations to prequalify for bidding or to bid for contracts, the proposed procurement plan for the Project shall be furnished to the Bank for its review and approval, in accordance with the provisions of paragraph 1 of Appendix 1 to the Guidelines. Procurement of all goods and works shall be undertaken in accordance with such procurement plan as shall have been approved by the Bank, and with the provisions of said paragraph 1. 2. Prior Review With respect to: (a) the first two contracts under Parts C.1 and C.2 hereof; and (b) each contract under Parts B and C.3 hereof, the procedures set forth in paragraphs 2 and 3 of Appendix 1 to the Guidelines shall apply.

Notification and Advertising. The international community should be notified in a timely manner of the opportunity to bid. This will be done by advertising invitations to apply for inclusion in a bidder’s invitation list, to prequalify apply for prequalification, or to bid; such advertisements should be placed in at least one newspaper of general circulation in the Borrower’s country and, in addition, in at least one of the following forms: (i) a notice in the United Nations publication, Development Forum, Business Edition; or (ii) an advertisement in a newspaper, periodical or technical journal of wide international circulation; or (iii) a notice to local representatives of countries and territories referred to in the Guidelines, that are potential suppliers of the goods required." (b) The following is added at the end of paragraph 2.21 of the Guidelines: "As a further alternative, bidding documents may require the bidder to state the bid price in a single currency widely used in international trade and specified in the bidding documents." (c) Paragraphs 2.55 and 2.56 of the Guidelines are deleted. 2. Contracts for each contract goods to be imported by the Borrower or its public sector entities and estimated to cost the equivalent of less than $10,000,000 equivalent or more 1,000,000 each shall be advertised in accordance with the procedures applicable to large contracts under paragraph 2.8 of the Guidelines. Part C: Other Procurement Procedures 1. International Shopping Office equipment, including telephone exchanges, copiers, fax machines, and microcomputers, estimated to cost more than $50,000, but $300,000 equivalent or less per contract, may be procured under contracts awarded on the basis of international shopping price quotations invited from at least three reputable suppliers in accordance with procedures acceptable to the Association; and all contracts for goods to be imported by private sector entities shall be awarded on the basis of the normal procurement procedures of the purchaser of such goods. 3. With respect to each contract referred to in paragraph 1 of this Schedule, the Borrower shall furnish to the Association, prior to the submission to the Association of the first application for withdrawal of funds from the Credit Account in respect of such contract, two conformed copies of such contract, together with the analysis of the respective bids and recommendations for award, a description of the advertising and tendering procedures followed and such other information as the Association shall reasonably request. 4. With respect to each contract referred to in paragraph 2 of this Schedule, the Borrower shall furnish to the Association, prior to the submission to the Association of the first application for withdrawal of funds from the Credit Account in respect thereof, such documentation and information as the Association may reasonably request to support withdrawal applications in respect of such contract. 5. Notwithstanding the provisions of paragraphs 3 and 4 of this Schedule, where payments under a contract are to be made out of the proceeds of the Special Account, the copies of such contract or the documentation and the information to be furnished to the Association pursuant to the provisions of paragraph 3 or paragraph 4 of this Schedule, as the case may be, shall be furnished to the Association as part of the evidence required under paragraph 4 of Schedule 4 to this Agreement. 6. The provisions of the preceding paragraphs 3, 4 and 5 shall not apply to contracts on account of which the Association has authorized withdrawals from the Credit Account on the basis of statements of expenditure. The following actions have been taken, all in a manner satisfactory to the Association: 1. A three-year rolling public investment program for 1989-1991 has been agreed with the Association. 2. An action plan acceptable to the Association has been adopted to further reform the public enterprises’ legal and institutional framework. 3. A report on progress in privatizing/liquidating PEs has been completed, and an action plan to rehabilitate ENERCA, SNE and OCPT has been adopted and has been carried out in accordance with the timetable provided in said action plan. 4. Arrears due by the Borrower to public enterprises in the amount of CFAF 1.89 billion have been settled; and a calendar, acceptable to the Association, for settlement of cross-debts between ENERCA, SNE and OCPT, has been adopted by December 31, 1989. 5. Substantial progress has been achieved in the carrying out of the civil service reform, in particular: (a) staffing plans for all ministries have been adopted; (b) staffing plans for all ministries have been executed in accordance with the schedule agreed upon with the Association; (c) the number of civil servants and "agents de l’Etat" has been reduced by about 2,000 persons; (d) salaries expenditures for fiscal year 1988 have not exceeded the amount of CFAF 24 billion; and (e) budgetary allocations for salaries expenditures in fiscal year 1989 have not exceeded the amount of CFAF 22 billion. 6. Measures acceptable to the Association have been implemented in order to increase fiscal revenues to about CFAF 40.1 billion. 7. The audit of CAISTAB has been executed; an action plan to restructure CAISTAB has been adopted and carried out in accordance with the timetable provided in said action plan; and a system for determining flexible producer price for coffee has been adopted. 8. A new strategy for the management and conservation of forestry resources has been adopted. 1. For the purposes of this Schedule: (a) the term "eligible expenditures" means expenditures in respect of the reasonable cost of goods required during the execution of the Program and to be financed out of the proceeds of the Credit in accordance with the provisions of paragraphs 3.5 and 3.6 of the Guidelines. 2. National Shopping Telephones, local area networks wiring, library supplies, and office supplies, estimated to cost $50,000 equivalent or less per contract and $900,000 equivalent or less in the aggregate (which aggregate shall not apply in the case of goods financed under Part E of the Project), may be procured under contracts awarded on the basis of national shopping procedures in accordance with the provisions of paragraphs 3.5 and 3.6 of the Guidelines. 3. Procurement of Small Works Eligible works estimated not to exceed $75,000 equivalent per contract, and not to exceed $600,000 in the aggregate, shall be procured and awarded on the basis of quotations obtained from three qualified domestic contractors in response to a written invitation. The invitation shall include a detailed description of the works, including basic specifications, the required completion date, a basic form of agreement acceptable to the Bank, and relevant drawings, where applicable. The award shall be made to the contractor who offers the lowest price quotation for the required work, and who has the experience and resources to successfully complete the contract. Part D: Review by the Bank of Procurement Decisions 1. Procurement Planning Prior to the issuance of any invitations to prequalify for bidding or to bid for contracts, the proposed procurement plan for the Project shall be furnished to the Bank for its review and approval, in accordance with the provisions of paragraph 1 of Appendix Schedule 1 to the Guidelines. Procurement of all goods and works shall be undertaken in accordance with such procurement plan as shall have been approved by the Bank, and with the provisions of said paragraph 1. 2. Prior Review With respect to: (a) the first two contracts under Parts C.1 and C.2 hereofthis Agreement; and (b) each contract under Parts B and C.3 hereof, the procedures set forth in paragraphs 2 and 3 of Appendix 1 to the Guidelines shall apply.and

Notification and Advertising. The international community should be notified in a timely manner of the opportunity to bid. This will be done by advertising invitations to apply for inclusion in a bidder’s invitation list, to apply for prequalification, or to bid; such advertisements should be placed in at least one newspaper of general circulation in the Borrower’s country and, in addition, in at least one of the following forms: (i) a notice in the United Nations publication, Development Business; or (ii) an advertisement in a newspaper, periodical or technical journal of wide international circulation; or (iii) a notice to local representatives of countries and territories referred to in the Guidelines, that are potential suppliers of the goods required." (b) The following is added at the end of paragraph 2.21 of the Guidelines: "As a further alternative, bidding documents may require the bidder to state the bid price in a single currency widely used in international trade and specified in the bidding documents." (c) Paragraphs 2.55 and 2.56 of the Guidelines are deleted. 2. For fixed-price contracts, the invitation to prequalify or bid referred to in paragraph 2.13 of the Guidelines shall provide that, when contract award is delayed beyond the original bid validity period, the successful bidder’s bid price will be increased for each contract week of delay by two predisclosed correction factors acceptable to the Bank, one to be applied to all foreign currency components and the other to the local currency component of the bid price. Such an increase shall not be taken into account in the bid evaluation. 3. In the procurement of goods in accordance with paragraph 1 of this Section I, the Borrower shall use the relevant standard bidding documents issued by the Bank, with such modifications thereto as the Bank shall have agreed to be necessary for the purposes of the Program. Where no relevant standard bidding documents have been issued by the Bank, the Borrower shall use bidding documents based on other international recognized standard forms agreed with the Bank. 4. Goods of a proprietary nature may be purchased from suppliers on the basis of negotiated contracts pursuant to procedures acceptable to the Bank. 5. Contracts for the procurement of goods estimated to cost $10,000,000 the equivalent or more shall be advertised in accordance with the procedures applicable to large contracts under paragraph 2.8 of the Guidelines. Part C: Other Procurement Procedures 1. International Shopping Office equipment, including telephone exchanges, copiers, fax machines, and microcomputers, estimated to cost more less than $50,000, but $300,000 equivalent or less per contract, 5,000,000 each may be procured under contracts awarded on the basis of international shopping procedures comparison of price quotations obtained from at least three suppliers from at least two different countries eligible under the Guidelines, in accordance with procedures acceptable to the provisions of paragraphs 3.5 and 3.6 Bank. 6. Subject to the prior approval of the Guidelines. 2. National Shopping TelephonesBank, local area networks wiring, library supplies, and office supplies, estimated to cost $50,000 equivalent or less per contract and $900,000 equivalent or less in the aggregate (which aggregate shall not apply in the case of goods financed under Part E of the Project), commonly traded commodities may be procured under contracts awarded on the basis through organized international commodity markets or other channels of national shopping procedures in accordance with the provisions of paragraphs 3.5 and 3.6 of the Guidelines. 3. Procurement of Small Works Eligible works estimated not to exceed $75,000 equivalent per contract, and not to exceed $600,000 in the aggregate, shall be procured and awarded on the basis of quotations obtained from three qualified domestic contractors in response to a written invitation. The invitation shall include a detailed description of the works, including basic specifications, the required completion date, a basic form of agreement competitive procurement acceptable to the Bank, and relevant drawings, where applicablein accordance with procedures acceptable to the Bank. The award Borrower shall use the relevant standard bidding documents issued by the Bank, with such modifications thereto as the Bank shall have agreed to be made necessary for the purposes of the Program. Where no relevant standard bidding documents have been issued by the Bank, the Borrower shall use bidding documents based on other internationally recognized standard forms agreed with the Bank. 7. With respect to each contract referred to in paragraph 1 of this Schedule, the Borrower shall furnish to the contractor who offers Bank, prior to the lowest price quotation for the required work, and who has the experience and resources submission to successfully complete the contract. Part D: Review by the Bank of Procurement Decisions 1the first application for withdrawal of funds from the Loan Account in respect of such contract, two conformed copies of such contract, together with the analysis of the respective bids and recommendations for award, a description of the advertising and tendering procedures followed and such other information as the Bank shall reasonably request. Procurement Planning Prior Where payments under a contract are to be made out of the proceeds of the Special Account, such copies together with the other information required to be furnished to the issuance of any invitations Bank pursuant to prequalify for bidding or to bid for contracts, the proposed procurement plan for the Project this paragraph shall be furnished to the Bank as part of the evidence required under paragraph 4 of Schedule 5 to this Agreement. 8. With respect to each contract referred to in paragraphs 5 and 6 of this Schedule, the Borrower shall furnish to the Bank, prior to the submission to the Bank of the first application for its review withdrawal of funds from the Loan Account in respect thereof, such documentation and approvalinformation as the Bank may reasonably request to support withdrawal applications in respect of such contract. Where payments under a contract are to be made out of the proceeds of the Special Account, in accordance with the documentation and the information to be furnished to the Bank pursuant to the provisions of this paragraph 1 of Appendix 1 shall be furnished to the GuidelinesBank as part of the evidence required under paragraph 4 of Schedule 5 to this Agreement. 9. Procurement of all goods and works shall be undertaken in accordance with such procurement plan as shall have been approved by the Bank, and with the The provisions of said the preceding paragraph 18 of this Schedule shall not apply to contracts on account of which withdrawals from the Loan Account are to be made on the basis of statements of expenditure. 2. Prior Review With respect to: (a) the first two contracts under Parts C.1 and C.2 hereof; and (b) each contract under Parts B and C.3 hereof, the procedures set forth in paragraphs 2 and 3 of Appendix 1 to the Guidelines shall apply.

Notification and Advertising. The international community should be notified in timely manner of the opportunity to bid. This will be done by advertising invitations to apply for inclusion in a bidder’s invitation list, to prequalify apply for prequalification, or to bid; such advertisements should placed in at least one newspaper of general circulation in the Borrower’s country and, in addition at least one of the following forms: (i) a notice in the United Nations Publication Development Business; or (ii) an advertisement in a newspaper, periodical or technical journal of wide international circulation; or (iii) a notice to local representatives of countries and, territories referred to in the Guidelines, that are potential suppliers of the goods required." (b) The following is added at the end of paragraph 2.21 of the Guidelines: "As a further alternative, bidding documents may require the bidder to state the bid price in a single currency widely used in international trade and specified in the bidding documents." (c) Paragraphs 2.55 and 2.56 of the Guidelines are deleted. Part B: Other Procurement Procedures Contracts for each contract the procurement of goods under Part C of the Project estimated to cost the equivalent of less than $10,000,000 equivalent or more 5,000,000 shall be advertised awarded: (a) by purchasers subject to the Borrower’s public procurement procedures for the importation of goods, on the basis of such procedures, provided that such procedures shall have been found acceptable by the Bank; (b) by other purchasers, in accordance with established commercial practice, provided that such contracts shall be awarded on the procedures applicable to large contracts basis of evaluation and comparison of quotations obtained from suppliers from at least two countries, except where direct contracting is permitted under paragraph 2.8 3.5 of the Guidelines. . Section II: Procurement of Goods under Part CA of the Project Part A: Other Procurement Procedures 1. International Shopping Office equipment, including telephone exchanges, copiers, fax machines, and microcomputers, Goods or groups of goods under Part A of the Project estimated to cost the equivalent of $500,000 or more than $50,000, but $300,000 equivalent or less per contract, may contract shall be procured under contracts awarded on the basis of international shopping procedures in accordance with the provisions comparison of paragraphs 3.5 and 3.6 price quotations solicited from a list of at least three suppliers from at least two different countries eligible under the Guidelines. 2. National Shopping Telephones, local area networks wiring, library supplies, and office supplies, estimated to cost $50,000 equivalent or less per contract and $900,000 equivalent or less in the aggregate (which aggregate shall not apply in the case of goods financed under Part E of the Project), may be procured under contracts awarded on the basis of national shopping procedures in accordance with the provisions of paragraphs 3.5 and 3.6 of the Guidelines. 3. Procurement of Small Works Eligible works estimated not to exceed $75,000 equivalent per contract, and not to exceed $600,000 in the aggregate, shall be procured and awarded on the basis of quotations obtained from three qualified domestic contractors in response to a written invitation. The invitation shall include a detailed description of the works, including basic specifications, the required completion date, a basic form of agreement acceptable to the Bank, and relevant drawings, where applicable. The award shall be made to the contractor who offers the lowest price quotation for the required work, and who has the experience and resources to successfully complete the contract. Part D: Review by the Bank of Procurement Decisions 1. Procurement Planning Prior to the issuance of any invitations to prequalify for bidding or to bid for contracts, the proposed procurement plan for the Project shall be furnished to the Bank for its review and approval, in accordance with the provisions of paragraph 1 of Appendix 1 to the Guidelines. Procurement of all goods and works shall be undertaken in accordance with such procurement plan as shall have been approved by the Bank, and with the provisions of said paragraph 1. 2. Prior Review With respect to: (a) the first two contracts under Parts C.1 and C.2 hereof; and (b) each contract under Parts B and C.3 hereof, the procedures set forth in paragraphs 2 and 3 of Appendix 1 to the Guidelines shall apply.

Notification and Advertising. The international community should be notified in a timely manner of the opportunity to bid. This will be done by advertising invitations to apply for inclusion in a bidder's invitation list, to prequalify apply for prequalification, or to bid; such advertisements should be placed in at least one newspaper of general circulation in the Borrower's country and, in addition, in at least one of the following forms: (i) a notice in the United Nations publication, Development Forum, Business Edition; or (ii) an advertisement in a newspaper, periodical or technical journal of wide international circulation; or (iii) a notice to local representatives of countries and territories referred to in the Guidelines, that are potential suppliers of the goods required." (b) The following is added at the end of paragraph 2.21 of the Guidelines: "As a further alternative, bidding documents may require the bidder to state the bid price in a single currency widely used in international trade and specified in the bidding documents." (c) Paragraphs 2.55 and 2.56 of the Guidelines are deleted. Part B: Other Procurement Procedures Contracts for each contract Eligible Imports estimated to cost the equivalent of less than $10,000,000 equivalent or more 2,000,000 each shall be advertised awarded on the basis of normal industrial and commercial procurement procedures for such imported goods which shall be satisfactory to the Bank, provided that such contracts shall be awarded on the basis of comparison of three quotations from suppliers from at least two different countries eligible under the Guidelines in accordance with procedure acceptable to the Bank. Proprietary items may be procured under direct contracting procedures applicable acceptable to large contracts the Bank where considered appropriate under paragraph 2.8 3.5 of the Guidelines. Part C: Other Procurement Procedures 1. International Shopping Office equipment, including telephone exchanges, copiers, fax machines, and microcomputers, estimated to cost more than $50,000, but $300,000 equivalent or less per contract, may be procured under contracts awarded on the basis of international shopping procedures in accordance with the provisions of paragraphs 3.5 and 3.6 of the Guidelines. 2. National Shopping Telephones, local area networks wiring, library supplies, and office supplies, estimated to cost $50,000 equivalent or less per contract and $900,000 equivalent or less in the aggregate (which aggregate shall not apply in the case of goods financed under Part E of the Project), may be procured under contracts awarded on the basis of national shopping procedures in accordance with the provisions of paragraphs 3.5 and 3.6 of the Guidelines. 3. Procurement of Small Works Eligible works estimated not to exceed $75,000 equivalent per contract, and not to exceed $600,000 in the aggregate, shall be procured and awarded on the basis of quotations obtained from three qualified domestic contractors in response to a written invitation. The invitation shall include a detailed description of the works, including basic specifications, the required completion date, a basic form of agreement acceptable to the Bank, and relevant drawings, where applicable. The award shall be made to the contractor who offers the lowest price quotation for the required work, and who has the experience and resources to successfully complete the contract. Part D: Review by the Bank of Procurement Decisions 1. Procurement Planning Prior to the issuance Review of any invitations to prequalify for bidding or to bid for and of proposed awards and final contracts, the proposed procurement plan for the Project shall be furnished to the Bank for its review and approval, in accordance with the provisions of paragraph 1 of Appendix 1 to the Guidelines. Procurement of all goods and works shall be undertaken in accordance with such procurement plan as shall have been approved by the Bank, and with the provisions of said paragraph 1.: 2. Prior Review With respect to: (a) the first two contracts under Parts C.1 and C.2 hereof; and (b) With respect to each contract under Parts B and C.3 hereoffor Eligible Imports, the procedures set forth in paragraphs 2 3 and 3 4 of Appendix 1 to the Guidelines shall apply. (b) The provisions of the preceding subparagraph (a) shall not apply to contracts on account of which withdrawals are to be made on the basis of statements of expenditure. 2. The figure of 15% is hereby specified for purposes of paragraph 4 of Appendix 1 to the Guidelines. ˇ SCHEDULE 5 Implementation Program 1. The Borrower shall maintain the BEDP Management Committee with representation from the Borrower and the sugar industry to undertake further detailed planning of program implementation, ensure that the Borrower's policy directives related to BEDP are followed, and effectively bring about integration of the Borrower's policies affecting the sugar and energy sectors. The Committee shall be chaired by the Financial Secretary and shall report to the Minister of Agriculture, Fisheries and Natural Resources. 2. The BEDP Management Committee shall, inter alia, be responsible for: (a) planning and monitoring the implementation of BEDP and its individual program and project components, and assessing the adequacy of policy measures and advise on policy revisions; (b) managing the technology and staff development activities included in BEDP; (c) providing technical support for appraisal of investment subprojects; (d) assisting CEB and individual power producers on matters relating to energy contracting; (e) disseminating information and organization of exchanges of experiences related to the implementation of BEDP; and

Notification and Advertising. The international community should be notified in a timely manner of the opportunity to bid. This will be done by advertising invitations to apply for inclusion in a bidder’s invitation list, to prequalify apply for prequalification, or to bid; such advertisements should be placed in at least one newspaper of general circulation in the Borrower’s country and, in addition, in at least one of the following forms: (i) a notice in the United Nations publication, Development Forum, Business Edition; or (ii) an advertisement in a newspaper, periodical or technical journal of wide international circulation; or (iii) a notice to local representatives of countries and territories referred to in the Guidelines, that are potential suppliers of the goods required." (b) The following is added at the end of paragraph 2.21 of the Guidelines: "As a further alternative, bidding documents may require the bidder to state the bid price in a single currency widely used in international trade and specified in the bidding documents." (c) Paragraphs 2.55 and 2.56 of the Guidelines are deleted. 2. Contracts for each contract the procurement of goods estimated to cost the equivalent of less than $10,000,000 equivalent or more 2,000,000 shall be advertised awarded: (a) by purchasers required to follow the Borrower’s public procurement procedures for the importation of goods, on the basis of such procedures, provided that such procedures shall have been found acceptable by the Association; (b) by other purchasers, in accordance with the procedures applicable to large established commercial practice, provided that such contracts under paragraph 2.8 of the Guidelines. Part C: Other Procurement Procedures 1. International Shopping Office equipment, including telephone exchanges, copiers, fax machines, and microcomputers, estimated to cost more than $50,000, but $300,000 equivalent or less per contract, may shall be procured under contracts awarded on the basis of international shopping evaluation comparison of quotations obtained from suppliers from at least two countries, except that direct contracting procedures acceptable to the Association may be used where considered appropriate under paragraph 3.5 of the Guidelines; and (c) by any purchasers, for the supply of commodities, on the basis of evaluation and comparison of quotations obtained frommore than one supplier. 3. With respect to each contract referred to in paragraph 1 of this Schedule, the Borrower shall furnish to the Association, prior to the submission to the Association of the first application for withdrawal of funds from the Credit Account in respect of such contract, two conformed copies of such contract, together with the analysis of the respective bids and recommendations for award, a description of the advertising and tendering procedures followed and such other information as the Association shall reasonably request. Where payments under a contract are to be made out of the proceeds of the Special Account, such copies together with the other information required to be furnished to the Association pursuant to this paragraph shall be furnished to the Association as part of the evidence required under paragraph 4 of Schedule 4 to this Agreement. 4. With respect to each contract referred to in paragraph 2 of this Schedule, the Borrower shall furnish to the Association, prior to the submission to the Association of the first application for withdrawal of funds from the Credit Account in respect thereof, such documentation and information as the Association may reasonably request to support withdrawal applications in respect of such contract. Where payments under a contract are to be made out of the proceeds of the Special Account, the documentation and the information to be furnished to the Association pursuant to the provisions of this paragraph shall be furnished to the Association as part of the evidence required under paragraph 4 of Schedule 4 to this Agreement. 5. The provisions of the preceding paragraph 4 of this Schedule shall not apply to contracts on account of which the Association has authorized withdrawals from the Credit Account on the basis of statements of expenditure. 6. The Borrower shall, with effect from January 1, 1992, retain the services of a suitably qualified and experienced pre-shipment inspection agency, which will be required, prior to shipment, to verify the quality and quantity of all goods imported under the Project and, in the case of goods other than those imported under contracts to which paragraph 1 of this Schedule applies, the price of such goods. Part A: Actions Referred to in Paragraph 4 (a) (ii) of Schedule 1 to this Agreement (Conditions for Release of Second Tranche) 1. The Borrower has adopted a 1992 current and investment budget, acceptable to the Association, using the standardized nomenclature adopted to that effect. 2. The Borrower has implemented its 1991 current and investment budget in a manner satisfactory to the Association, and in accordance with the targets agreed upon for each of the priority sectors of the economy, including primary education and health, and for non-wage operations, maintenance and investment expenditures. 3. The Borrower has had a new Labor Code adopted to provide, inter alia, that: (a) recourse to ONPE will be optional; (b) recourse to fixed-term contracts will not be affected by any restrictions on their duration or the number of renewals; and (c) there will be no list limiting the situations in which recourse to such contracts is authorized. 4. The Borrower has had a new Investment Code adopted to provide for a set of transparent, automatic and simplified criteria in the treatment of investment incentives. 5. The Borrower has established a Commission Nationale de Codification, whose composition shall be acceptable to the Association, and which shall be vested with all necessary powers to compile, revise and update all existing laws, and to have them published in an authoritative and consolidated form. Part B: Actions Referred to in Paragraph 4 (b) (ii) of Schedule 1 to this Agreement (Conditions for Release of Third Tranche) 1. The Borrower has adopted a 1993 current and investment budget, acceptable to the Association, using the standardized nomenclature adopted to that effect. 2. The Borrower has implemented its 1992 current and investment budget in a manner satisfactory to the Association, and in accordance with the targets agreed upon for each of the priority sectors of the economy, including primary education and health, non-wage operations and maintenance, and investment expenditures. 3. The Borrower has reduced its participation, whether direct or indirect, in the share capital of CNCA and BICIA to a level which, in either case, shall not exceed 25% of the capital. 4. The Borrower has put into effect a revised policy, which shall be acceptable to the Association, governing the pricing of petroleum products. 5. The Borrower has revised and updated its commercial laws with a view to having them duly published in consolidated form. 6. The Borrower has reduced: (a) the number of products, which are subject to import control, to not more than 15; and (b) the number of imported products, which are subject to fixed profit margins, to not more than 17, by July 31, 1992 and, thereafter, to not more than 5. 1. For the purposes of this Schedule: (a) the term "eligible expenditures" means expenditures in respect of the reasonable cost of goods required during the execution of the Program and to be financed out of the proceeds of the Credit in accordance with the provisions of paragraphs 3.5 and 3.6 of the Guidelines. 2. National Shopping Telephones, local area networks wiring, library supplies, and office supplies, estimated to cost $50,000 equivalent or less per contract and $900,000 equivalent or less in the aggregate (which aggregate shall not apply in the case of goods financed under Part E of the Project), may be procured under contracts awarded on the basis of national shopping procedures in accordance with the provisions of paragraphs 3.5 and 3.6 of the Guidelines. 3. Procurement of Small Works Eligible works estimated not to exceed $75,000 equivalent per contract, and not to exceed $600,000 in the aggregate, shall be procured and awarded on the basis of quotations obtained from three qualified domestic contractors in response to a written invitation. The invitation shall include a detailed description of the works, including basic specifications, the required completion date, a basic form of agreement acceptable to the Bank, and relevant drawings, where applicable. The award shall be made to the contractor who offers the lowest price quotation for the required work, and who has the experience and resources to successfully complete the contract. Part D: Review by the Bank of Procurement Decisions 1. Procurement Planning Prior to the issuance of any invitations to prequalify for bidding or to bid for contracts, the proposed procurement plan for the Project shall be furnished to the Bank for its review and approval, in accordance with the provisions of paragraph 1 of Appendix Schedule 1 to the Guidelines. Procurement of all goods and works shall be undertaken in accordance with such procurement plan as shall have been approved by the Bank, and with the provisions of said paragraph 1. 2. Prior Review With respect to: (a) the first two contracts under Parts C.1 and C.2 hereofthis Agreement; and (b) each contract under Parts B and C.3 hereof, the procedures set forth in paragraphs 2 and 3 of Appendix 1 to the Guidelines shall apply.and

Notification and Advertising. The international community should be notified in a timely manner of the opportunity to bid. This will be done by advertising invitations to apply for inclusion in a bidder’s invitation list, to prequalify apply for prequalification, or to bid; such advertisements should be placed in at least one newspaper of general circulation in the Borrower’s country and, in addition, in at least one of the following forms: (i) a notice in the United Nations publication, Development Forum, Business Edition; or (ii) an advertisement in a newspaper, periodical or technical journal of wide international circula- tion; or (iii) a notice to local representatives of countries and territories referred to in the Guidelines, that are potential suppliers of the goods required." (b) The following is added at the end of paragraph 2.21 of the Guidelines: "As a further alternative, bidding documents may require the bidder to state the bid price in a single currency widely used in international trade and specified in the bidding documents." (c) Paragraphs 2.55 and 2.56 of the Guidelines are deleted. 2. Contracts for each contract the procurement of goods estimated to cost the equivalent of less than $10,000,000 equivalent or more 5,000,000 shall be advertised awarded: (a) by purchasers required to follow the Borrower’s public procurement procedures for the importation of goods, on the basis of such procedures, provided that such procedures shall have been found acceptable by the Bank; (b) by other purchasers, in accordance with the procedures applicable to large established commercial practice, provided that such contracts under paragraph 2.8 of the Guidelines. Part C: Other Procurement Procedures 1. International Shopping Office equipment, including telephone exchanges, copiers, fax machines, and microcomputers, estimated to cost more than $50,000, but $300,000 equivalent or less per contract, may shall be procured under contracts awarded on the basis of international shopping evaluation and comparison of quotations obtained from suppliers from at least two countries, except that direct contracting procedures in accordance with acceptable to the provisions of paragraphs Bank may be used where considered appropriate under paragraph 3.5 and 3.6 of the Guidelines; and (c) by any purchasers, for the supply of commodities, on the basis of evaluation and comparison of quotations obtained from more than one supplier. 3. With respect to each contract referred to in paragraph 1 of this Schedule, the Borrower shall furnish to the Bank, prior to the submission to the Bank of the first application for withdrawal of funds from the Loan Account in respect of such contract, two conformed copies of such contract, together with the analysis of the respective bids and recommendations for award, a description of the advertising and tendering procedures followed and such other information as the Bank shall reasonably request. 4. With respect to each contract referred to in paragraph 2 of this Schedule, the Borrower shall furnish to the Bank, prior to the submission to the Bank of the first application for withdrawal of funds from the Loan Account in respect thereof, such documentation and information as the Bank may reasonably request to support withdrawal applications in respect of such contract. 5. The provisions of the preceding paragraph 4 of this Schedule shall not apply to contracts on account of which the Bank has authorized withdrawals from the Loan Account on the basis of statements of expenditure. Actions Referred to in Paragraph 4 (b) of Schedule 1 to this Agreement 1. Continued maintenance of a satisfactory macroeconomic framework consistent with the objectives of the Program, as reflected by indicators acceptable to the Borrower and the Bank. 2. National Shopping TelephonesAdoption of regulatory measures reducing the level of mandatory placements by domestic banks in Treasury bonds of the Borrower, local area networks wiring, library supplies, and office supplies, estimated so that the total principal amount of such Treasury bonds outstanding from time to cost $50,000 equivalent or less per contract and $900,000 equivalent or less in time required to be held by such banks shall not exceed 25% of the aggregate (which aggregate shall not apply in the case amount of goods financed under Part E of the Project)sight deposits maintained by said banks from time to time, may be procured under contracts awarded as calculated on the basis of national shopping procedures in accordance with guidelines satisfactory to the provisions of paragraphs 3.5 and 3.6 of the GuidelinesBank. 3. Procurement Adoption of Small Works Eligible works estimated not regulatory measures reducing the level of rediscountable medium-term loans and housing loans which domestic banks are required to exceed $75,000 equivalent per contract, and not to exceed $600,000 in the aggregate, shall be procured and awarded on the basis of quotations obtained from three qualified domestic contractors in response to a written invitation. The invitation shall include a detailed description of the works, including basic specifications, the required completion date, a basic form of agreement acceptable to the Bank, and relevant drawings, where applicable. The award shall be made to the contractor who offers the lowest price quotation for the required work, and who has the experience and resources to successfully complete the contract. Part D: Review by the Bank of Procurement Decisions 1. Procurement Planning Prior to the issuance of any invitations to prequalify for bidding or to bid for contracts, the proposed procurement plan for the Project shall be furnished to the Bank for its review and approval, in accordance with the provisions of paragraph 1 of Appendix 1 to the Guidelines. Procurement of all goods and works shall be undertaken in accordance with such procurement plan as shall have been approved by the Bank, and with the provisions of said paragraph 1. 2. Prior Review With respect tomake so that: (a) the first two contracts under Parts C.1 total principal amount of such medium-term loans required to be made by a domestic bank and C.2 hereofoutstanding from time to time shall not exceed 2.5% of the aggregate amount of deposits maintained by said bank from time to time; and (b) each contract under Parts B and C.3 hereof, the procedures set forth in paragraphs 2 and 3 of Appendix 1 to the Guidelines shall apply.and

Notification and Advertising. The international community should be notified in a timely manner of the opportunity to bid. This will be done by advertising invitations to apply for inclusion in a bidder’s invitation list, to prequalify apply for prequalification, or to bid; such advertisements should be placed in at least one newspaper of general circulation in the Borrower’s country and, in addition, in at least one of the following forms: (i) a notice in the United Nations publication, Development Forum, Business Edition; or (ii) an advertisement in a newspaper, periodical or technical journal of wide international circula- tion; or (iii) a notice to local representatives of countries and territories referred to in the Guidelines, that are potential suppliers of the goods re- quired." (b) The following is added at the end of paragraph 2.21 of the Guidelines: "As a further alternative, bidding documents may require the bidder to state the bid price in a single currency widely used in international trade and specified in the bidding documents." (c) Paragraphs 2.55 and 2.56 of the Guidelines are deleted. 2. Contracts for each contract procurement of goods by the Borrower or public sector entities estimated to cost less than the equivalent of $10,000,000 equivalent or more shall be advertised in accordance with the procedures applicable to large contracts under paragraph 2.8 of the Guidelines. Part C: Other Procurement Procedures 1. International Shopping Office equipment, including telephone exchanges, copiers, fax machines, and microcomputers, estimated to cost more than $50,000, but $300,000 equivalent or less per contract, 2,000,000 each may be procured under contracts awarded on the basis of international shopping procedures comparison of price quotations solicited from a list of at least three suppliers from at least three different countries eligible under the Guidelines, in accordance with procedures acceptable to the Association. 3. Contracts for the procurement of goods by the private sector entities estimated to cost less than the equivalent of $2,000,000 each may be awarded, to the extent practicable, on the basis of comparison of price quotations solicited from a list of at least two suppliers from at least two different countries eligible under the Guidelines, or on the basis of the normal procurement procedures of the purchaser of such goods. 4. With respect to each contract referred to in paragraph 1 of this Schedule, the Borrower shall furnish to the Association, prior to the submission to the Association of the first application for withdrawal of funds from the Credit Account in respect of such contract, two conformed copies of such contract, together with the analysis of the respective bids and recommendations for award, a description of the advertising and tendering procedures followed and such other information as the Association shall reasonably request. Where payments under a contract are to be made out of the proceeds of the Special Account, such copies together with the other information required to be furnished to the Association pursuant to this paragraph shall be furnished to the Association as part of the evidence required under paragraph 4 of Schedule 4 to this Agreement. 5. With respect to each contract referred to in paragraphs 2 and 3 of this Schedule, the Borrower shall furnish to the Association, prior to the submission to the Association of the first application for withdrawal of funds from the Credit Account in respect thereof, such documentation and information as the Association may reasonably request to support withdrawal applications in respect of such contract. Where payments under a contract are to be made out of the proceeds of the Special Account, the documentation and the informa- tion to be furnished to the Association pursuant to the provisions of paragraphs 3.5 and 3.6 this paragraph shall be furnished to the Association as part of the Guidelinesevidence required under paragraph 4 of Schedule 4 to this Agreement. 26. National Shopping Telephones, local area networks wiring, library supplies, The provisions of the preceding paragraph 4 of this Schedule shall not apply to contracts on account of which the Association has authorized withdrawals from the Credit Account on the basis of statements of expenditure. Part B: Other Procurement Procedures 7. Vehicles and office supplies, equipment estimated to cost the equivalent of $50,000 equivalent 60,000 or less per contract and up to an aggregate amount equivalent to $900,000 equivalent or less in the aggregate (which aggregate shall not apply in the case of goods financed under Part E of the Project), 200,000 may be procured under contracts awarded on the basis of national shopping procedures in accordance with the provisions comparison of paragraphs 3.5 and 3.6 of the Guidelines. 3. Procurement of Small Works Eligible works estimated not to exceed $75,000 equivalent per contract, and not to exceed $600,000 in the aggregate, shall be procured and awarded on the basis of price quotations obtained from at least three qualified domestic contractors in response to a written invitation. The invitation shall include a detailed description of suppliers eligible under the works, including basic specifications, the required completion date, a basic form of agreement acceptable to the Bank, and relevant drawings, where applicable. The award shall be made to the contractor who offers the lowest price quotation for the required work, and who has the experience and resources to successfully complete the contract. Part D: Review by the Bank of Procurement Decisions 1. Procurement Planning Prior to the issuance of any invitations to prequalify for bidding or to bid for contracts, the proposed procurement plan for the Project shall be furnished to the Bank for its review and approvalGuidelines, in accordance with the provisions of paragraph 1 of Appendix 1 procedures satisfactory to the GuidelinesAssociation. Procurement of all goods and works shall be undertaken Actions Referred to in accordance with such procurement plan as shall have been approved by the Bank, and with the provisions of said paragraph 1. 2. Prior Review With respect to: (a) the first two contracts under Parts C.1 and C.2 hereof; and Paragraph 4 (b) each contract under Parts B and C.3 hereof, the procedures set forth in paragraphs 2 and 3 of Appendix Schedule 1 to the Guidelines shall apply.this Agreement

Notification and Advertising. The international community should be notified in a timely manner of the opportunity to bid. This will be done by advertising invitations to apply for inclusion in a bidder’s invitation list, invitations to prequalify apply for prequalification or bid for each contract estimated invitations to cost $10,000,000 equivalent bid. Such advertisements should be placed in at least one newspaper of general circulation in the Borrower’s country and, in addition, in at least one of the following forms: (i) a notice in the United Nations publication, Development Forum, Business Edition; or (ii) an advertisement in a newspaper, periodical or more shall be advertised technical journal of wide international circula- tion; or (iii) a notice to local representatives of countries and territories referred to in accordance with the procedures applicable to large contracts under Guidelines, that are potential suppliers of the goods required." (b) The following is added at the end of paragraph 2.8 2.21 of the Guidelines. Part C: Other Procurement Procedures"As a further alternative, bidding documents may require the bidder to state the bid price in a single currency widely used in international trade and specified in the bidding documents." 1. International Shopping Office equipment(c) Paragraphs 2.55 and 2.56 of the Guidelines are deleted. (d) All references in the Guidelines to the Bank and to loans shall be deemed to be references to the Administrator and the African Facility Credit, including telephone exchanges, copiers, fax machines, and microcomputersrespectively. (a) Contracts for goods, estimated to cost more the equivalent of less than two million dollars ($50,000, but $300,000 equivalent or less per contract, may 2,000,000) to be procured under contracts by private entities and contractors, shall be awarded on the basis of international shopping the normal procurement procedures in accordance with the provisions of paragraphs 3.5 and 3.6 of the Guidelinespurchaser of such goods. 2. National Shopping Telephones(b) Contracts for goods to be procured by the Borrower, local area networks wiring, library supplies, and office suppliesits political subdivisions or state-owned enterprises, estimated to cost the equivalent of less than two million dollars ($50,000 equivalent or less per contract and $900,000 equivalent or less in the aggregate (which aggregate shall not apply in the case of goods financed under Part E of the Project2,000,000), may be procured under contracts awarded on the basis of national shopping the normal procurement procedures of the purchaser of such goods, and such procedures shall be satisfactory to the Administrator. 3. With respect to each contract referred to in accordance paragraph 1 of this Schedule, the Borrower shall furnish to the Administrator, prior to the submission to the Administrator of the first applica- tion for withdrawal of funds from the African Facility Credit Account in respect of such contract, two conformed copies of such contract, together with the analysis of the respective bids and recommendations for award, a description of the advertising and tendering procedures followed, and such other information as the Administrator shall reasonably request. 4. With respect to each contract referred to in paragraph 2 of this Schedule, the Borrower shall furnish to the Administrator, prior to the submission to the Administrator of the first applica- tion for withdrawal of funds from the African Facility Credit Account in respect thereof, such documentation and information as the Administrator may reasonably request to support withdrawal applications in respect of such contract. 5. Notwithstanding the provisions of paragraphs 3.5 3 and 3.6 4 of this Schedule, where payments under a contract are to be made out of the Guidelines. 3. Procurement of Small Works Eligible works estimated not to exceed $75,000 equivalent per contract, and not to exceed $600,000 in the aggregate, shall be procured and awarded on the basis of quotations obtained from three qualified domestic contractors in response to a written invitation. The invitation shall include a detailed description proceeds of the works, including basic specificationsSpecial Account, the required completion date, a basic form copies of agreement acceptable such contract or documentation and information to be furnished to the Bank, and relevant drawings, where applicable. The award shall be made Association pursuant to the contractor who offers provisions of paragraph 3 or paragraph 4 of this Schedule, as the lowest price quotation for the required workcase may be, and who has the experience and resources to successfully complete the contract. Part D: Review by the Bank of Procurement Decisions 1. Procurement Planning Prior to the issuance of any invitations to prequalify for bidding or to bid for contracts, the proposed procurement plan for the Project shall be furnished to the Bank for its review Administrator as part of the evidence required under paragraph 4 of Schedule 4 to this Agreement. 6. The provisions of the preceding paragraphs 3, 4 and approval, 5 shall not apply to contracts on account of which the Administrator has authorized withdrawals from the African Facility Credit Account on the basis of statements of expenditure. Such contracts shall be retained in accordance with the provisions Section 3.03 (c) (ii) of paragraph 1 this Agreement. Actions Referred to in Paragraph 3 (b) of Appendix Schedule 1 to this Agreement 1. The Borrower has prepared and adopted a public investment program satisfactory to the Guidelines. Procurement of all goods and works shall be undertaken in accordance with such procurement plan as shall have been approved by the Bank, and with the provisions of said paragraph 1Administrator for its 1988/90-1990/91 fiscal years. 2. Prior Review With respect to: The Borrower has consulted with the Administrator on its proposals based on a methodology, satisfactory to the Administrator, for the revision of its May 1987 producer prices for export crops. 3. The Borrower has adopted: (a) an open general licensing system giving eligible producers in priority industries access to foreign exchange upon request for the first two contracts under Parts C.1 and C.2 hereofimportation of eligible imports; and and (b) each contract under Parts B and C.3 hereoffollowing a review of the implementation of the system, the procedures set forth in paragraphs 2 and 3 a plan of Appendix 1 action, satisfactory to the Guidelines shall applyAdministrator, for expanding its coverage. 4. The Borrower has finalized an action plan for restructuring the public enterprise (industrial and non-industrial) sector, including a classification of enterprises to be maintained in the Borrower’s portfolio, liquidated, or wholly or partly privatized. 5. The Borrower’s Verification Committee has completed the verification of the ownership of a significant number of industrial enterprises and the Borrower has submitted a plan of action, satisfactory to the Administrator, for the completion of the verification and valuation of all properties and enterprises subject to the Expropriated Properties Act, and for the return to former owners or sale of such properties and enterprises. Special Account 1. For the purposes of this Schedule:

Notification and Advertising. The international community should be notified in a timely manner of the opportunity to bid. This will be done by advertising invitations to apply for inclusion in a bidder’s invitation list, to prequalify apply for prequalification, or to bid; such advertisements should be placed in at least one newspaper of general circulation in the Borrower’s country and, in addition, in at least one of the following forms: (i) a notice in the United Nations publication, Development Business; or (ii) an advertisement in a newspaper, periodical or technical journal of wide international circulation; or (iii) a notice to local representatives of countries and territories referred to in the Guidelines, that are potential suppliers of the goods required." (b) The following is added at the end of paragraph 2.21 of the Guidelines: "As a further alternative, bidding documents may require the bidder to state the bid price in a single currency widely used in international trade and specified in the bidding documents." (c) Paragraphs 2.55 and 2.56 of the Guidelines are deleted. 2. Contracts for each contract the procurement of goods estimated to cost the equivalent of less than $10,000,000 equivalent or more 5,000,000 shall be advertised awarded: (a) by purchasers required to follow the Borrower’s public procurement procedures for the importation of goods, on the basis of such procedures, provided that such procedures shall have been found acceptable by the Bank; (b) by other purchasers, in accordance with the procedures applicable to large established commercial practice, provided that such contracts under paragraph 2.8 of the Guidelines. Part C: Other Procurement Procedures 1. International Shopping Office equipment, including telephone exchanges, copiers, fax machines, and microcomputers, estimated to cost more than $50,000, but $300,000 equivalent or less per contract, may shall be procured under contracts awarded on the basis of international shopping evaluation and comparison of quotations obtained from suppliers from at least two countries, except that direct contracting procedures in accordance with acceptable to the provisions of paragraphs Bank may be used where considered appropriate under paragraph 3.5 and 3.6 of the Guidelines.; and 2. National Shopping Telephones(c) by any purchasers, local area networks wiringfor the supply of commodities, library supplies, and office supplies, estimated to cost $50,000 equivalent or less per contract and $900,000 equivalent or less in the aggregate (which aggregate shall not apply in the case of goods financed under Part E of the Project), may be procured under contracts awarded on the basis of national shopping procedures in accordance with the provisions evaluation and comparison of paragraphs 3.5 and 3.6 of the Guidelinesquotations obtained from more than one supplier. 3. Procurement With respect to each contract referred to in paragraph 1 of Small Works Eligible works estimated not this Schedule, the Borrower shall furnish to exceed $75,000 equivalent per the Bank, prior to the submission to the Bank of the first application for withdrawal of funds from the Loan Account in respect of such contract, two conformed copies of such contract, together with the analysis of the respective bids and recommendations for award, a description of the advertising and tendering procedures followed and such other information as the Bank shall reasonably request. 4. With respect to each contract referred to in paragraph 2 of this Schedule, the Borrower shall furnish to the Bank, prior to the submission to the Bank of the first application for withdrawal of funds from the Loan Account in respect thereof, such documentation and information as the Bank may reasonably request to support withdrawal applications in respect of such contract. 5. The provisions of the preceding paragraph 4 of this Schedule shall not apply to exceed $600,000 in contracts on account of which the aggregate, shall be procured and awarded Bank has authorized withdrawals from the Loan Account on the basis of quotations obtained statements of expenditure. I. Actions referred to in Paragraph 4 (b) of Schedule 1 to this Agreement (a) The Borrower has executed concession contracts with private sector investors to operate the following railway cargo lines Urquiza, Mitre, San Xxxxxx and Xxxxxxxxx. (i) The Borrower has reorganized the Buenos Aires metropolitan passenger railway services; (ii) a new railway company (administratively and operationally independent from three qualified domestic contractors in response to FA) has been legally established and is operating such metropolitan railway services; and (iii) the Borrower has established a written invitation. The invitation shall include a detailed description of the worksrailway transit authority, including basic specifications, the required completion date, a basic form of agreement acceptable with functions and responsibilities satisfactory to the Bank, to regulate the provision of suburban passenger services in the Buenos Aires metropolitan area. (c) The Borrower and relevant drawingsprovincial and local authorities have formally approved a plan, where applicable. The award shall be made satisfactory to the contractor who offers the lowest price quotation Bank, for the required workgradual reduction of all public subsidies (excluding subsidies explicitly allocated to maintenance) to the Buenos Aires metropolitan railway passenger services from 1990 subsidy levels. (d) The Borrower and FA have agreed on a rationalization plan for interurban railway passenger services, including elimination or transfer to alternative operators of all non-essential and who unprofitable services. (e) The Borrower has established a national railway authority, with functions and responsibilities satisfactory to the experience Bank, to regulate the provision of railway services throughout Argentina. II. Action referred to in paragraph 5 (b) of Schedule 1 to this Agreement (a) The Borrower has maintained its policy of full deregulation of prices and resources free imports and exports of crude oil, petroleum products and natural gas provided in the Borrower’s Decree No. 1212, dated August 11, 1989. (b) The Borrower has executed legally valid and binding production sharing contracts in the four central areas of YPF put up for tender pursuant to successfully complete the contractprovisions of the Borrower’s Decree No. Part D1216/90 dated June 26, 1990. (c) The Borrower has achieved progress satisfactory to the Bank in its program of divestiture and privatization of YPF and GdE including: Review by (i) the divestiture to the private sector of a significant number of YPF’s service and downstream business units with an aggregate cash sale value equivalent to at least two hundred million dollars; (ii) tendering of GdE’s distribution and transmission systems in terms satisfactory to the Bank and completion of the privatization process in terms satisfactory to the Bank of Procurement Decisions 1. Procurement Planning Prior at least 2 natural gas distribution areas with aggregate distribution volume equivalent to the issuance at least 25% of any invitations to prequalify for bidding or to bid for contracts, the proposed procurement plan for the Project shall be furnished to the Bank for its review and approval, in accordance with the provisions of paragraph 1 of Appendix 1 to the Guidelines. Procurement of all goods and works shall be undertaken in accordance with such procurement plan as shall have been approved by the Bank, and with the provisions of said paragraph 1. 2. Prior Review With respect to: (a) the first two contracts under Parts C.1 and C.2 hereofGdE’s total sales; and (biii) each contract under Parts B and C.3 hereof, the procedures set forth in paragraphs 2 and 3 of Appendix 1 transfer to the Guidelines shall applyprivate sector for their free disposability of at least 10% of Argentina’s total natural gas production.

Notification and Advertising. The international community should be notified in a timely manner of the opportunity to bid. This will be done by advertising invitations to apply for inclusion in a bidder’s invitation list, to prequalify apply for prequalification, or to bid; such advertisements should be placed in at least one news- paper of general circulation in the Borrower’s country and, in addition, in at least one of the following forms: (i) a notice in the United Nations publication, Development Forum, Business Edition; or (ii) an advertisement in a newspaper, periodical or technical journal of wide international circula- tion; or (iii) a notice to local representatives of countries and territories referred to in the Guidelines, that are potential suppliers of the goods required." (b) The following is added at the end of paragraph 2.21 of the Guidelines: "As a further alternative, bidding documents may require the bidder to state the bid price in a single currency widely used in international trade and specified in the bidding documents." (c) Paragraphs 2.55 and 2.56 of the Guidelines are deleted. 2. Contracts for each contract goods estimated to cost the equivalent of less than $10,000,000 equivalent or more 5,000,000 each shall be advertised in accordance with the procedures applicable to large contracts under paragraph 2.8 of the Guidelines. Part C: Other Procurement Procedures 1. International Shopping Office equipment, including telephone exchanges, copiers, fax machines, and microcomputers, estimated to cost more than $50,000, but $300,000 equivalent or less per contract, may be procured under contracts awarded on the basis of international shopping the normal procurement procedures of the purchaser of such goods. 3. With respect to each contract referred to in paragraph 1 of this Schedule, the Borrower shall furnish to the Bank, prior to the submission to the Bank of the first application for withdrawal of funds from the Loan Account in respect of such contract, two conformed copies of such contract, together with the analysis of the respective bids and recommendations for award, a description of the advertising and tendering procedures followed and such other information as the Bank shall reasonably request. 4. With respect to each contract referred to in paragraph 2 of this Schedule, the Borrower shall furnish to the Bank, prior to the submission to the Bank of the first application for withdrawal of funds from the Loan Account in respect thereof, such documenta- tion and information as the Bank may reasonably request to support withdrawal applications in respect of such contract. 5. The provisions of the preceding paragraphs 3 and 4 shall not apply to contracts on account of which the Bank has authorized withdrawals from the Loan Account on the basis of statements of expenditure. 6. In addition to and without limitation on any other provisions set forth in this schedule 3 or the Guidelines, the following principles of procurement shall expressly govern all procurement of goods referred to in paragraph 1 of this Schedule: (a) Bids for contract awards must be permitted to be submitted, at the risk of the bidder, by mail. (b) Bids for contract awards must be required to be submitted in one single envelope, and all information contained therein must be considered simultaneously. (c) Foreign bidders must not be required to have a local representative for purposes of submitting bids, and, after the submission of bids, may be required to have a local representative only on a case-by-case basis in light of the circumstances of each contract. (d) Foreign bidders must be permitted to have their financial solvency certified by a foreign bank without re- certification by any Ecuadorian bank or other Ecuadorian person or entity. (e) Bid and performance guarantees issued by foreign banks must be admissible without re-certification or other participation by any Ecuadorian bank or other Ecuadorian person or entity. (f) Contracts must be awarded to the lowest evaluated bidder in accordance with criteria set forth in the provisions bidding documents. (g) Price adjustment clauses must be permitted to be included in all contracts. (h) Letters of paragraphs 3.5 Credit issued to any supplier of goods must not be required to be counter-guaranteed by such supplier in whole or in part. Actions Referred to in Paragraph 3 (b) of Schedule 1 to this Agreement 1. Financial Institutions shall have reduced their distributions of cash dividends to shareholders to such levels as shall enable them to meet all legal requirements with respect to loss provisioning, bad loan write-offs and 3.6 of the Guidelinescapitalization. 2. National Shopping TelephonesThe Junta Monetaria shall have issued regulations, local area networks wiringsatisfactory to the Bank, library supplieswith respect to: (i) a required minimum ratio of capital to risk assets to be met by Financial Institutions; and (ii) a phase-in period of three years beginning on January 1, and office supplies, estimated to cost $50,000 equivalent or less per contract and $900,000 equivalent or less in the aggregate (which aggregate shall not apply in the case 1988 for purposes of goods financed under Part E of the Project), may be procured under contracts awarded on the basis of national shopping procedures in accordance with the provisions of paragraphs 3.5 and 3.6 of the Guidelinesapplying such ratio progressively. 3. Procurement of Small Works Eligible works estimated not to exceed $75,000 equivalent per contractThe Superintendencia shall have issued regulations, and not to exceed $600,000 in the aggregate, shall be procured and awarded on the basis of quotations obtained from three qualified domestic contractors in response to a written invitation. The invitation shall include a detailed description of the works, including basic specifications, the required completion date, a basic form of agreement acceptable satis- factory to the Bank, restricting Financial Institutions’ loan and relevant drawingscredit transactions with groups, where applicable. The award shall be made to the contractor who offers the lowest price quotation for the required work, and who has the experience and resources to successfully complete the contract. Part D: Review by the Bank of Procurement Decisions 1. Procurement Planning Prior to the issuance or any member of any invitations to prequalify group, of related persons, firms or companies; for bidding or to bid for contractspurposes of this para- graph, the proposed procurement plan for the Project term "related" shall be furnished to the Bank for its review and approval, in accordance with the provisions of paragraph 1 of Appendix 1 to the Guidelines. Procurement of all goods and works shall be undertaken in accordance with such procurement plan as shall have been approved by the Bank, and with the provisions of said paragraph 1. 2. Prior Review With respect tomean: (ai) the first two contracts under Parts C.1 any more than 50% owner- ship interest of one party in another party; (ii) any form of management control exercised by one party over another, including, without limitation, holding officers’ and C.2 hereofdirectors’ positions and interlocking directorates; and (biii) each contract under Parts B and C.3 hereof, the procedures set forth in paragraphs 2 and 3 of Appendix 1 to the Guidelines shall apply.any family relationships; and

Notification and Advertising. The international community should be notified in a timely manner of the opportunity to bid. This will be done by advertising invitations to apply for inclusion in a bidder’s invitation list, to prequalify apply for prequalification, or to bid; such advertisements should be placed in at least one news- paper of general circulation in the Borrower’s country and, in addition, in at least one of the following forms: (i) a notice in the United Nations publication, Devel- opment Forum, Business Edition; or (ii) an advertisement in a newspaper, periodical or technical journal of wide international circula- tion; or (iii) a notice to local representatives of countries and territories referred to in the Guidelines, that are potential suppliers of the goods required." (b) The following is added at the end of paragraph 2.21 of the Guidelines: "As a further alternative, bidding documents may require the bidder to state the bid price in a single currency widely used in international trade and specified in the bidding documents." (c) Paragraphs 2.55 and 2.56 of the Guidelines are deleted. 2. Contracts for each contract goods estimated to cost the equivalent of less than $10,000,000 equivalent or more 1,000,000 each shall be advertised in accordance with the procedures applicable to large contracts under paragraph 2.8 of the Guidelines. Part C: Other Procurement Procedures 1. International Shopping Office equipment, including telephone exchanges, copiers, fax machines, and microcomputers, estimated to cost more than $50,000, but $300,000 equivalent or less per contract, may be procured under contracts awarded on the basis of international shopping the normal procurement procedures of the purchaser of such goods. 3. With respect to each contract referred to in accordance paragraph 1 of this Schedule, the Borrower shall furnish to the Association, prior to the submission to the Association of the first applica- tion for withdrawal of funds from the Credit Account in respect of such contract, two conformed copies of such contract, together with the analysis of the respective bids and recommendations for award, a description of the advertising and tendering procedures followed, and such other information as the Association shall reasonably request. 4. With respect to each contract referred to in paragraph 2 of this Schedule, the Borrower shall furnish to the Association, prior to the submission to the Association of the first applica- tion for withdrawal of funds from the Credit Account in respect thereof, such documentation and information as the Association may reasonably request to support withdrawal applications in respect of such contract. 5. Notwithstanding the provisions of paragraphs 3.5 3 and 3.6 4 of this Schedule, where payments under a contract are to be made out of the Guidelines. 2. National Shopping Telephones, local area networks wiring, library supplies, and office supplies, estimated to cost $50,000 equivalent or less per contract and $900,000 equivalent or less in the aggregate (which aggregate shall not apply in the case of goods financed under Part E proceeds of the Project)Special Account, may the copies of such contract or the documentation and the information to be procured under contracts awarded on furnished to the basis of national shopping procedures in accordance with Association pursuant to the provisions of paragraphs 3.5 and 3.6 paragraph 3 or paragraph 4 of this Schedule, as the Guidelines. 3. Procurement of Small Works Eligible works estimated not to exceed $75,000 equivalent per contractcase may be, and not to exceed $600,000 in the aggregate, shall be procured and awarded on the basis of quotations obtained from three qualified domestic contractors in response to a written invitation. The invitation shall include a detailed description of the works, including basic specifications, the required completion date, a basic form of agreement acceptable to the Bank, and relevant drawings, where applicable. The award shall be made to the contractor who offers the lowest price quotation for the required work, and who has the experience and resources to successfully complete the contract. Part D: Review by the Bank of Procurement Decisions 1. Procurement Planning Prior to the issuance of any invitations to prequalify for bidding or to bid for contracts, the proposed procurement plan for the Project shall be furnished to the Bank for its review and approval, in accordance with Association as part of the evidence required under paragraph 4 of Schedule 4 to this Agreement. 6. The provisions of paragraph 1 the preceding paragraphs 3, 4 and 5 shall not apply to contracts on account of Appendix which the Association has authorized withdrawals from the Credit Account on the basis of statements of expenditure. Actions Referred to in Paragraph 3 (b) of Schedule 1 to the Guidelines. Procurement of all goods and works shall be undertaken in accordance with such procurement plan as shall this Agreement The following actions have been approved by taken, all in a manner satis- factory to the BankAssociation: 1. A financial program for 1989, to further reduce internal and with the provisions of said paragraph 1external imbalances, has been established. 2. Prior Review With respect to: (a) A new organizational structure and redefined functions of XXXX have been adopted and an implementation schedule has been agreed upon with the first two contracts under Parts C.1 Association for reducing XXXX’x operating costs; (b) the schedules of processing and C.2 hereofmarketing costs (bar¨mes) of XXXX for coffee, cocoa and cotton have been revised; and (c) XXXX'x accounts for the 1987/88 fiscal year have been audited. 3. Appropriate actions have been taken to promote the export of marketable cereals surpluses. (a) Import licensing has been abolished; (b) each contract under Parts B a new tariff regime (including harmonization of border and C.3 hereof, domestic taxes and revision of the procedures set forth in paragraphs 2 and 3 of Appendix 1 to the Guidelines shall apply.import reference pricing system) has been enacted;

Notification and Advertising. The international community should be notified in a timely manner of the opportunity to bid. This will be done by advertising invitations to apply for inclusion in a bidder’s invitation list, to prequalify apply for prequalification, or to bid; such advertisements should be placed in at least one newspaper of general circulation in the Borrower’s country and, in addition, in at least one of the following forms: (i) a notice in the United Nations publication, Development Forum, Business Edition; or (ii) an advertisement in a newspaper, periodical or technical journal of wide international circulation; or (iii) a notice to local representatives of countries and territories referred to in the Guidelines, that are potential suppliers of the goods required." (b) The following is added at the end of paragraph 2.21 of the Guidelines: "As a further alternative, bidding documents may require the bidder to state the bid price in a single currency widely used in international trade and specified in the bidding documents." (c) Paragraphs 2.55 and 2.56 of the Guidelines are deleted. 2. Contracts for each contract goods estimated to cost the equivalent of less than $10,000,000 equivalent or more 250,000 each shall be advertised awarded through limited international bidding procedures on the basis of evaluation and comparison of bids invited from a list of at least three qualified suppliers eligible under the Guidelines and in accordance with the procedures applicable to large contracts under paragraph 2.8 set forth in Section I and II of the GuidelinesGuidelines (excluding paragraphs 2.8, 2.9, 2.55 and 2.56 thereof). 3. Part C: Other Procurement Procedures 1. International Shopping Office equipment, including telephone exchanges, copiers, fax machines, and microcomputers, estimated Goods to cost more than $50,000, but $300,000 equivalent or less per contract, may be procured under contracts awarded estimated to cost the equivalent of less than $50,000 but not exceeding an aggregate amount of $1,000,000 may be purchased directly from suppliers eligible under the Guidelines, when a demonstrated urgency so requires. 4. Goods which are proprietary items may be purchased directly from suppliers eligible under the Guidelines. 5. With respect to each contract referred to in paragraph I of this Schedule, the Borrower shall furnish to the Administrator, prior to the submission to the Administrator of the first application for withdrawal of funds from the African Facility Credit Account in respect of such contracts, two conformed copies of such contract, together with the analysis of the respective bids and recommendations for award, a description of the adver- tising and tendering procedures followed and such other information as the Administrator shall reasonably request. 6. With respect to each contract referred to in paragraphs 2, 3 and 4 of this Schedule, the Borrower shall furnish to the Administrator, prior to the submission to the Administrator of the first application for withdrawal of funds from the African Facility Credit Account in respect thereof, such documentation and information as the Administrator may reasonably request to support withdrawal applications in respect of such contract. 7. Notwithstanding the provisions of paragraphs 5 and 6 of this Schedule, where payments under a contract are to be made out of the proceeds of the Special Account, the copies of such contract or the documentation and the information to be furnished to the Administrator pursuant to the provisions of paragraph 5 or paragraph 6 of this Schedule, as the case may be, shall be furnished to the Administrator as part of the evidence required under paragraph 4 of Schedule 4 to this Agreement. 8. The provisions of the preceding paragraphs 5, 6 and 7 shall not apply to contracts on account of which the Administrator has authorized withdrawals from the African Facility Credit Account on the basis of international shopping procedures statements of expenditure. Actions Referred to in Paragraph 3 (b) of Schedule I to this Agreement 1. The Borrower shall have achieved progress in the following areas: (a) the implementation of its exchange rate reform; (b) the implementation of its action plan to reduce the size of the civil service; (c) the settlement of debt owed by the public sector enterprises to BNSTP and the Borrower; and (d) the implementation of a gradual increase of the price of rice, beans, milk, sugar, wheat flour and cooking oil; 2. The Borrower shall have approved: (a) a fiscal program and credit targets, including a public investment program, for 1988; (b) an action plan to restructure, privatize and close public sector enterprises; (c) an action plan for setting up a new tariff structure for fuels, electricity and water in order to achieve full cost recovery. (d) an action plan to restructure ECOMEX accounts in order to settle past debt; and (e) an action plan for the reform of the cocoa export tax system. 1. For the purposes of this Schedule: (a) the term "eligible expenditures" means expenditures in respect of the reasonable cost of goods required during the execution of the Program and to be financed out of the proceeds of the African Facility Credit in accordance with the provisions of paragraphs 3.5 Schedule I to this Agreement; and (b) the term "Authorized Allocation" means an amount equivalent to $500,000 to be withdrawn from the African Facility Credit Account and 3.6 deposited in the Special Account pursuant to paragraph 3 (a) of the Guidelinesthis Schedule. 2. National Shopping TelephonesExcept as the Administrator shall otherwise agree, local area networks wiring, library supplies, and office supplies, estimated to cost $50,000 equivalent or less per contract and $900,000 equivalent or less in the aggregate (which aggregate shall not apply in the case of goods financed under Part E payments out of the Project), may Special Account shall be procured under contracts awarded on the basis of national shopping procedures made exclusively for eligible expenditures in accordance with the provisions of paragraphs 3.5 and 3.6 of the Guidelinesthis Schedule. 3. Procurement After the Administrator has received evidence satisfactory to it that the Special Account has been duly opened, withdrawals of Small Works Eligible works estimated not the Authorized Allocation and subsequent withdrawals to exceed $75,000 equivalent per contract, and not to exceed $600,000 in replenish the aggregate, shall Special Account may be procured and awarded on made as follows: (a) On the basis of quotations obtained from three qualified domestic contractors in response a request or requests by the Borrower for a deposit or deposits which add up to a written invitation. The invitation shall include a detailed description the aggregate amount of the works, including basic specificationsAuthorized Allocation, the required completion dateAdministrator shall, a basic form on behalf of agreement acceptable the Borrower, withdraw from the African Facility Credit Account and deposit in the Special Account such amount or amounts as the Borrower shall have requested. (b) The Borrower shall furnish to the BankAdministrator requests for replenishment of the Special Account at such intervals as the Administrator shall specify. On the basis of such requests, the Administrator shall withdraw from the African Facility Credit Account and relevant drawingsdeposit into the Special Account such amounts as shall be required to replenish the Special Account with amounts not exceeding the amount of payments made out of the Special Account for eligible expenditures. All such deposits shall be withdrawn by the Administrator from the African Facility Credit Account in the respective equivalent amounts, where applicableas shall have been justified by the evidence supporting the request for such deposit furnished pursuant to paragraph 4 of this Schedule. 4. The award For each payment made by the Borrower out of the Special Account for which the Borrower requests replenishment pursuant to paragraph 3 (b) of this Schedule, the Borrower shall furnish to the Administrator, prior to or at the time of such request, such documents and other evidence as the Administrator shall reasonably request, showing that such payment was made for eligible expenditures. (a) Notwithstanding the provisions of paragraph 3 of this Schedule, no further deposit into the Special Account shall be made to the contractor who offers the lowest price quotation for the required work, and who has the experience and resources to successfully complete the contract. Part D: Review by the Bank Administrator when either of Procurement Decisionsthe following situations first arises: 1. Procurement Planning Prior to (i) the issuance of any invitations to prequalify for bidding or to bid for contracts, Administrator shall have determined that all further withdrawals should be made by the proposed procurement plan for Borrower directly from the Project shall be furnished to the Bank for its review and approval, African Facility Credit Account in accordance with the provisions of Article V of the General Conditions and paragraph 1 (a) of Appendix 1 Section 2.02 of this Agreement; or (ii) the total unwithdrawn amount of the African Facility Credit, minus the amount of any outstanding special commitment entered into by the Administrator pursuant to Section 5.02 of the General Conditions with respect to the Guidelines. Procurement of all goods and works Program, shall be undertaken in accordance with equal to the equivalent of twice the amount of the Authorized Allocation. (b) Thereafter, withdrawal from the African Facility Credit Account of the remaining unwithdrawn amount of the African Facility Credit shall follow such procurement plan procedures as the Administrator shall specify by notice to the Borrower. Such further withdrawals shall be made only after and to the extent that the Administrator shall have been approved by satisfied that all such amounts remaining on deposit in the Bank, and with Special Account as of the provisions date of said paragraph 1such notice will be utilized in making payments for eligible expenditures. 2. Prior Review With respect to: (a) If the first two contracts under Parts C.1 and C.2 hereofAdministrator shall have determined at any time that any payment out of the Special Account: (i) was made for any expenditure or in any amount not eligible pursuant to paragraph 2 of this Schedule; and or (ii) was not justified by the evidence furnished pursuant to paragraph 4 of this Schedule, the Borrower shall, promptly upon notice from the Administrator deposit into the Special Account (or, if the Administrator shall so request, refund to the Administrator) an amount equal to the amount of such payment or the portion thereof not so eligible or justified. No further deposit by the Administrator into the Special Account shall be made until the Borrower has made such deposit or refund. (b) each contract under Parts B and C.3 hereofIf the Administrator shall have determined at any time that any amount outstanding in the Special Account will not be required to cover further payments for eligible expenditures, the procedures set forth in paragraphs 2 and 3 of Appendix 1 Borrower shall, promptly upon notice from the Administrator, refund to the Guidelines shall applyAdministrator such outstanding amount for crediting to the African Facility Credit Account.

Notification and Advertising. The international community should be notified in a timely manner of the opportunity to bid. This will be done by advertising invitations to apply for inclusion in a bidder’s invitation list, to prequalify apply for prequalification, or to bid; such advertisements should be placed in at least one newspaper of general circulation in the Borrower’s country and, in addition, in at least one of the following forms: (i) a notice in the United Nations publication, Development Forum, Business Edition; or (ii) an advertisement in a newspaper, periodical or technical journal of wide international circulation; or (iii) a notice to local representatives of countries and territories referred to in the Guidelines, that are potential suppliers of the goods required." (b) The following is added at the end of paragraph 2.21 of the Guidelines: "As a further alternative, bidding documents may require the bidder to state the bid price in a single currency widely used in international trade and specified in the bidding documents." (c) Paragraphs 2.55 and 2.56 of the Guidelines are deleted. (d) Goods shall be exempted from pre-shipment price inspection by a third-party inspection firm. 2. Contracts for each contract the procurement of goods estimated to cost the equivalent of less than $10,000,000 equivalent or more 5,000,000 shall be advertised awarded: (a) by purchasers required to follow the Borrower’s public procurement procedures for the importation of goods, on the basis of such procedures, provided that such procedures shall have been found acceptable by the Association; and (b) by other purchasers, in accordance with the procedures applicable to large established commercial practice, provided that such contracts under paragraph 2.8 of the Guidelines. Part C: Other Procurement Procedures 1. International Shopping Office equipment, including telephone exchanges, copiers, fax machines, and microcomputers, estimated to cost more than $50,000, but $300,000 equivalent or less per contract, may shall be procured under contracts awarded on the basis of international shopping evaluation and comparison of quotations obtained from suppliers from at least two countries, except that direct contracting procedures in accordance with acceptable to the provisions of paragraphs 3.5 and 3.6 of the Guidelines. 2. National Shopping Telephones, local area networks wiring, library supplies, and office supplies, estimated to cost $50,000 equivalent or less per contract and $900,000 equivalent or less in the aggregate (which aggregate shall not apply in the case of goods financed under Part E of the Project), Association may be procured used where considered appropriate under contracts awarded on the basis of national shopping procedures in accordance with the provisions of paragraphs paragraph 3.5 and 3.6 of the Guidelines. 3. Procurement Subject to the prior approval of Small Works Eligible works estimated not the Association, commonly traded commodities may be procured through organized international commodity markets or other channels of competitive procurement acceptable to exceed $75,000 equivalent per the Association, in accordance with procedures acceptable to the Association. 4. With respect to each contract referred to in paragraph 1 of this Schedule, the Borrower shall furnish to the Association, prior to the submission to the Association of the first application for withdrawal of funds from the Credit Account in respect of such contract, two conformed copies of such contract, together with the analysis of the respective bids and not to exceed $600,000 in the aggregaterecommendations for award, shall be procured and awarded on the basis of quotations obtained from three qualified domestic contractors in response to a written invitation. The invitation shall include a detailed description of the worksadvertising and tendering procedures followed and such other information as the Association shall reasonably request. Where payments under a contract are to be made out of the proceeds of the Special Account, including basic specifications, such copies together with the other information required completion date, a basic form of agreement acceptable to be furnished to the Bank, and relevant drawings, where applicable. The award shall be made Association pursuant to the contractor who offers the lowest price quotation for the required work, and who has the experience and resources to successfully complete the contract. Part D: Review by the Bank of Procurement Decisions 1. Procurement Planning Prior to the issuance of any invitations to prequalify for bidding or to bid for contracts, the proposed procurement plan for the Project this paragraph shall be furnished to the Bank Association as part of the evidence required under paragraph 4 of Schedule 3 to this Agreement. 5. With respect to each contract referred to in paragraphs 2 and 3 of this Schedule, the Borrower shall furnish to the Association, prior to the submission to the Association of the first application for its review withdrawal of funds from the Credit Account in respect thereof, such documentation and approvalinformation as the Association may reasonably request to support withdrawal applications in respect of such contract. Where payments under a contract are to be made out of the proceeds of the Special Account, the documentation and the information to be furnished to the Association pursuant to the provisions of this paragraph shall be furnished to the Association as part of the evidence required under paragraph 4 of Schedule 3 to this Agreement. 6. The provisions of the preceding paragraph 5 of this Schedule shall not apply to contracts on account of which withdrawals from the Credit Account are to be made on the basis of statements of expenditure. 1. For the purposes of this Schedule: (a) the term "eligible expenditures" means expenditures in respect of the reasonable cost of goods and services required during the execution of the Program and to be financed out of the proceeds of the Credit in accordance with the provisions of paragraph 1 of Appendix Schedule 1 to the Guidelines. Procurement of all goods and works shall be undertaken in accordance with such procurement plan as shall have been approved by the Bank, and with the provisions of said paragraph 1. 2. Prior Review With respect to: (a) the first two contracts under Parts C.1 and C.2 hereofthis Agreement; and (b) each contract under Parts B and C.3 hereof, the procedures set forth in paragraphs 2 and 3 of Appendix 1 to the Guidelines shall apply.and

Notification and Advertising. The international community should be notified in a timely manner of the opportunity to bid. This will be done by advertising invitations to apply for inclusion in a bidder’s invitation list, to prequalify apply for prequalification, or to bid; such advertisements should be placed in at least one newspaper of general circulation in the Borrower’s country and, in addition, in at least one of the following forms: (i) a notice in the United Nations publication, Development Forum, Business of wide referred required." Edition; or (ii) an advertisement in a newspaper, periodical or technical journal international circulation; or (iii) a notice to local representatives of countries and territories to in the Guidelines, that are potential suppliers of the goods (b) The following is added at the end of paragraph 2.21 of the Guidelines: "As a further alternative, bidding documents may require the bidder to state the bid price in a single currency widely used in international trade and specified in the bidding documents." (c) Paragraphs 2.55 and 2.56 of the Guidelines are deleted. 2. Contracts for each contract goods to be imported by the Borrower or its public sector entities and estimated to cost the equivalent of less than $10,000,000 equivalent 1,500,000 each, as well as all contracts for goods to be imported by persons other than the Borrower or more its public sector entities, shall be advertised in accordance with the procedures applicable to large contracts under paragraph 2.8 of the Guidelines. Part C: Other Procurement Procedures 1. International Shopping Office equipment, including telephone exchanges, copiers, fax machines, and microcomputers, estimated to cost more than $50,000, but $300,000 equivalent or less per contract, may be procured under contracts awarded on the basis of international shopping the normal procurement procedures of the purchaser of such goods. 3. With respect to each contract referred to in accordance paragraph 1 of this Schedule, the Borrower shall furnish to the Bank, prior to the submission to the Bank of the first application for withdrawal of funds from the Loan Account in respect of such contract, two conformed copies of such contract, together with the analysis of the respective bids and recommendations for award, a description of the advertising and tendering procedures followed and such other information as the Bank shall reasonably request. 4. With respect to each contract referred to in paragraph 2 of this Schedule, the Borrower shall furnish to the Bank, prior to the submission to the Bank of the first application for withdrawal of funds from the Loan Account in respect thereof, such documentation and information as the Bank may reasonably request to support withdrawal applications in respect of such contract. 5. Notwithstanding the provisions of paragraphs 3.5 3 and 3.6 4 of this Schedule, where payments under a contract are to be made out of the Guidelines. 2. National Shopping Telephones, local area networks wiring, library supplies, and office supplies, estimated to cost $50,000 equivalent or less per contract and $900,000 equivalent or less in the aggregate (which aggregate shall not apply in the case of goods financed under Part E proceeds of the Project)Special Account, may the copies of such contract or the documentation and the information to be procured under contracts awarded on furnished to the basis of national shopping procedures in accordance with Bank pursuant to the provisions of paragraphs 3.5 and 3.6 paragraph 3 or paragraph 4 of this Schedule, as the Guidelines. 3. Procurement of Small Works Eligible works estimated not to exceed $75,000 equivalent per contractcase may be, and not to exceed $600,000 in the aggregate, shall be procured and awarded on the basis of quotations obtained from three qualified domestic contractors in response to a written invitation. The invitation shall include a detailed description of the works, including basic specifications, the required completion date, a basic form of agreement acceptable to the Bank, and relevant drawings, where applicable. The award shall be made to the contractor who offers the lowest price quotation for the required work, and who has the experience and resources to successfully complete the contract. Part D: Review by the Bank of Procurement Decisions 1. Procurement Planning Prior to the issuance of any invitations to prequalify for bidding or to bid for contracts, the proposed procurement plan for the Project shall be furnished to the Bank for its review and approval, in accordance with as part of the evidence required under paragraph 4 of Schedule 5 to this Agreement. 6. The provisions of paragraph 1 the preceding paragraphs 3, 4 and 5 shall not apply to contracts on account of Appendix 1 to which the GuidelinesBank has authorized withdrawals from the Loan Account on the basis of statements of expenditure. 1. Procurement of all goods The Borrower has prepared its "esquisses financieres" (draft financing plans) for the period 1988-1990 and works shall be undertaken in accordance with such procurement plan as shall have been has approved by its "Loi de Finances" for the Bank, and with the provisions of said paragraph 1year 1988 including authorizations for programming public investments. 2. Prior Review With respect toThe Borrower has prepared a strategy for its oil palm sector. 3. The Borrower has implemented its revised price structure for petroleum refined products. 4. The Borrower has: (a) the first two contracts under Parts C.1 and C.2 hereofimplemented its PE divestiture program; and (b) each contract under Parts B and C.3 hereofachieved progress in the implementation of its action plan for the settlement of debt, the procedures set forth in paragraphs 2 and 3 of Appendix 1 accrued up to the Guidelines shall apply.end of calendar year 1985, owed by PEs selected in agreement with the Bank;

Notification and Advertising. The international community should be notified in a timely manner of the opportunity to bid. This will be done by advertising invitations to apply for inclusion in a bidder’s invitation list, to prequalify apply for prequalification, or to bid; such advertisements should be placed in at least one newspaper of general circulation in the Borrower’s country and, in addition, in at least one of the following forms: (i) a notice in the United Nations publication, Development Forum, Business Edition; or (ii) an advertisement in a newspaper, periodical or technical journal of wide international circulation; or (iii) a notice to local representatives of countries and territories referred to in the Guidelines, that are potential suppliers of the goods required." (b) The following is added at the end of paragraph 2.21 of the Guidelines: "As a further alternative, bidding documents may require the bidder to state the bid price in a single currency widely used in international trade and specified in the bidding documents." (c) Paragraphs 2.55 and 2.56 of the Guidelines are deleted. 2. Contracts for each contract the procurement of goods estimated to cost the equivalent of less than $10,000,000 equivalent or more 2,000,000 shall be advertised awarded: (a) by purchasers required to follow the Borrower’s public procurement procedures for the importation of goods, on the basis of such procedures, provided that such procedures shall have been found acceptable by the Association; (b) by other purchasers, in accordance with the procedures applicable to large established commercial practice, provided that, wherever possible, such contracts under paragraph 2.8 of the Guidelines. Part C: Other Procurement Procedures 1. International Shopping Office equipment, including telephone exchanges, copiers, fax machines, and microcomputers, estimated to cost more than $50,000, but $300,000 equivalent or less per contract, may shall be procured under contracts awarded on the basis of international shopping evaluation and comparison of quotations obtained from suppliers from at least two countries, except that direct contracting procedures acceptable to the Association may be used where considered appropriate under paragraph 3.5 of the Guidelines; and (c) by any purchasers, for the supply of commodities, on the basis of evaluation and comparison of quotations obtained from more than one supplier. 3. With respect to each contract referred to in paragraph 1 of this Schedule, the Borrower shall furnish to the Association, prior to the submission to the Association of the first application for withdrawal of funds from the Credit Account in respect of such contract, two conformed copies of such contract, together with the analysis of the respective bids and recommendations for award, a description of the advertising and tendering procedures followed and such other information as the Association shall reasonably request, including a pre-shipment certificate by a specialized company, satisfactory to the Association, and a certificate of verification of the quantity and quality of the goods upon arrival. 4. With respect to each contract referred to in paragraph 2 of this Schedule, the Borrower shall furnish to the Association, prior to the submission to the Association of the first application for withdrawal of funds from the Credit Account in respect thereof, such documentation and information as the Association may reasonably request to support withdrawal applications in respect of such contract, including a pre-shipment certificate by a specialized company, satisfactory to the Association, and a certificate of verification of the price, quantity and quality of the goods upon arrival. 5. Notwithstanding the provisions of paragraphs 3 and 4 of this Schedule, where payments under a contract are to be made out of the proceeds of the Special Account, the copies of such contract or the documentation and the information to be furnished to the Association pursuant to the provisions of paragraph 3 or paragraph 4 of this Schedule, as the case may be, shall be furnished to the Association as part of the evidence required under paragraph 4 of Schedule 4 to this Agreement. SCHEDULE 3 Actions Referred to in Paragraph 4 (b) of Schedule 1 to this Agreement - Land legislation has been adopted recognizing private ownership, and setting up a system of title registration and publication; - The first phase of the customs reform program set forth in the Program has been implemented; and - The new investment promotion institutional structure has been established and key staff has been appointed. SCHEDULE 4 Special Account 1. For the purposes of this Schedule: (a) the term "eligible expenditures" means expenditures in respect of the reasonable cost of goods required during the execution of the Program and to be financed out of the proceeds of the Credit in accordance with the provisions of paragraphs 3.5 and 3.6 of the Guidelines. 2. National Shopping Telephones, local area networks wiring, library supplies, and office supplies, estimated to cost $50,000 equivalent or less per contract and $900,000 equivalent or less in the aggregate (which aggregate shall not apply in the case of goods financed under Part E of the Project), may be procured under contracts awarded on the basis of national shopping procedures in accordance with the provisions of paragraphs 3.5 and 3.6 of the Guidelines. 3. Procurement of Small Works Eligible works estimated not to exceed $75,000 equivalent per contract, and not to exceed $600,000 in the aggregate, shall be procured and awarded on the basis of quotations obtained from three qualified domestic contractors in response to a written invitation. The invitation shall include a detailed description of the works, including basic specifications, the required completion date, a basic form of agreement acceptable to the Bank, and relevant drawings, where applicable. The award shall be made to the contractor who offers the lowest price quotation for the required work, and who has the experience and resources to successfully complete the contract. Part D: Review by the Bank of Procurement Decisions 1. Procurement Planning Prior to the issuance of any invitations to prequalify for bidding or to bid for contracts, the proposed procurement plan for the Project shall be furnished to the Bank for its review and approval, in accordance with the provisions of paragraph 1 of Appendix Schedule 1 to the Guidelines. Procurement of all goods and works shall be undertaken in accordance with such procurement plan as shall have been approved by the Bank, and with the provisions of said paragraph 1. 2. Prior Review With respect to: (a) the first two contracts under Parts C.1 and C.2 hereofthis Agreement; and (b) each contract under Parts B and C.3 hereof, the procedures set forth in paragraphs 2 and 3 of Appendix 1 to the Guidelines shall apply.and

Notification and Advertising. The international community should be notified in a timely manner of the opportunity to bid. This will be done by advertising invitations to apply for inclusion in a bidder’s invitation list, to prequalify apply for prequalification, or bid for each contract estimated to cost $10,000,000 equivalent bid; such advertisements should be placed in at least one newspaper of general circulation in the Borrower’s country and, in addition, in at least one of the following forms: (i) a notice in the United Nations publication, Development Forum, Business Edition; or (ii) an advertisement in a newspaper, periodical or more shall be advertised technical journal of wide international circula- tion; or (iii) a notice to local representatives of countries and territories referred to in accordance with the procedures applicable to large contracts under Guidelines, that are potential suppliers of the goods required." (b) The following is added at the end of paragraph 2.8 2.21 of the Guidelines: "As a further alternative, bidding documents may require the bidder to state the bid price in a single currency widely used in international trade and specified in the bidding documents." (c) Paragraphs 2.55 and 2.56 of the Guidelines are deleted. Part CB: Other Procurement Procedures 1. International Shopping Office equipment, including telephone exchanges, copiers, fax machines, and microcomputers, Contracts for goods estimated to cost more the equivalent of less than $50,000, but $300,000 equivalent or less per contract, 5,000,000 each may be procured under contracts awarded on the basis of international shopping the normal procurement procedures in accordance with the provisions of paragraphs 3.5 and 3.6 of the Guidelinespurchaser of such goods acceptable to the Bank. 2. National Shopping Telephones, local area networks wiring, library supplies, and office supplies, estimated to cost $50,000 equivalent or less per contract and $900,000 equivalent or less in the aggregate (which aggregate shall not apply in the case of goods financed under Part E of the Project), Commonly traded commodities may be procured under contracts awarded on the basis through organized international commodity markets or other channels of national shopping procedures in accordance with the provisions of paragraphs 3.5 and 3.6 of the Guidelines. 3. Procurement of Small Works Eligible works estimated not to exceed $75,000 equivalent per contract, and not to exceed $600,000 in the aggregate, shall be procured and awarded on the basis of quotations obtained from three qualified domestic contractors in response to a written invitation. The invitation shall include a detailed description of the works, including basic specifications, the required completion date, a basic form of agreement competitive procurement acceptable to the Bank, and relevant drawings, where applicable. The award shall be made in accordance with procedures acceptable to the contractor who offers the lowest price quotation for the required work, and who has the experience and resources to successfully complete the contractBank. Part DC: Review by the Bank of Procurement Decisions 1. Procurement Planning Prior With respect to each contract referred to in Part A of this Schedule, the Borrower shall furnish to the issuance Bank, prior to the submission to the Bank of any invitations the first application for withdrawal of funds from the Loan Account in respect of such contract, two conformed copies of such contract, together with the analysis of the respective bids and recommendations for award, a description of the advertising and tendering procedures followed and such other information as the Bank shall reasonably request. 2. With respect to prequalify for bidding or each contract referred to bid for contractsin paragraphs 1 and 2 of Part B of this Schedule, the proposed procurement plan Borrower shall furnish to the Bank, prior to the submission to the Bank of the first application for withdrawal of funds from the Project Loan Account in respect thereof, such documentation and information as the Bank may reasonably request to support withdrawal applications in respect of such contract. 3. Notwithstanding the provisions of paragraphs 1 and 2 of Part C of this Schedule, where payments under a contract are to be made out of the proceeds of the Special Account, the copies of such contract or the documentation and the information to be furnished to the Bank pursuant to the provisions of paragraph 1 or paragraph 2 of Part C of this Schedule, as the case may be, shall be furnished to the Bank as part of the evidence required under paragraph 4 of Schedule 5 to this Agreement. 4. The provisions of the preceding paragraphs 1, 2 and 3 of Part C of this Schedule shall not apply to contracts on account of which the Bank has authorized withdrawals from the Loan Account on the basis of statements of expenditure. Such contracts shall be retained in accordance with Section 3.03 (c) (ii) of this Agreement. Part A. SCHEDULE 4 Actions Referred to in Paragraph 3 of Schedule 1 to this Agreement 1. Final decisions by appropriate authorities on the manner of disposition of all Government Corporations. 2. Completion of all actions (including offering for its sale) necessary towards the transfer to private persons of title to the capital presently owned by, or on behalf of, the Borrower in each of at least thirty Government Corporations, representing at least twenty percent of the value in fiscal year 1985 of such part of the assets of Government Corporations as are approved for privatization under the Program. 3. Finalization of an implementation plan, agreed with the Bank, in respect of about one hundred Government Corporations, for: (i) the conversion of selected Government Corporations, which are not to be retained as Government Corporations in their present form, including absorption as line agencies or departments, reorganization as non-profit private corporations, mergers and consolidation; and (ii) the liquidation of designated Government Corporations. 4. Satisfactory progress towards amendments of charters of Government Corporations as necessary to implement the plan referred to in paragraph 3 of Part A of this Schedule. 5. Completion of a review of charters of Government Corporations, and approvalthe formulation of recommendations arising from such review, to ensure that (i) where the Chairman of a Government Corporation is the representative of the Department to which that Government Corporation is attached, (a) arrangements for monitor- ing and inter-departmental evaluation of the Government Corpora- tion by the Borrower’s Government Corporate Monitoring and Coordinating Committee (GCMCC) are appropriately adjusted to take into account this fact; and (b) the other responsibilities of such representative are consistent with the need that the repre- sentative devote adequate time and attention in the discharge of his/her responsibilities as Chairman; and (ii) where ex-officio members constitute the majority of the members of the Board of Directors of a Government Corporation, the selection of the Departments represented on the Board in each case adequately takes into account the relevance of the functions of such Department to the activities of the Government Corporation. 6. Finalization of an implementation plan, agreed with the Bank, to introduce computerized accounting systems for Government Corporations developed pursuant to the Technical Assistance. 7. Approval of a corporate planning program for Government Corporations agreed with the Bank and developed pursuant to the Technical Assistance, by the Board of Directors of each of at least five Government Corporations. 8. Design of a performance evaluation and incentive system for Government Corporations, agreed with the Bank and developed pursuant to the Technical Assistance. 9. Appointment of adequate staff for the Corporate Affairs Group of the Department of Finance. 10. Satisfactory progress towards amendments of charters of Government Corporations to incorporate in such charters the principles set forth in paragraph 7 of the Borrower’s Letter of Development Policy. 11. Issuance by the Borrower of regulations to: (i) eliminate automatic guarantee by the Borrower of loans contracted by Government Corporations; and (ii) ensure that when Government Corporations are required by the Government to undertake activities which are not financially viable, the Government shall take adequate and timely steps to protect the financial viability of such Government Corporations on the basis of arrangements agreed between the Government and the concerned Government Corporation as part of the monitoring and supervision of such Government Corporation by GCMCC. 12. Satisfactory progress towards establishing an appropriate corporate career executive service for Government Corporations. 13. Appointment of consultants, with qualifications and experience and terms of reference agreed with the Bank, for carrying out the Technical Assistance. Part B. 1. Completion of all actions (including offering for sale) necessary towards the transfer to private persons of title to the capital presently owned by, or on behalf of, the Borrower in each of at least sixty Government Corporations, representing at least fifty percent of the value in fiscal year 1985 of such part of the assets of Government Corporations as are approved for privatization under the Program. 2. Finalization of an implementation plan, agreed with the Bank, for Government Corporations not covered under paragraph 3 of Part A of this Schedule, for (i) the conversion of selected Government Corporations, which are not to be retained as Govern- ment Corporations in their present form, including absorption as line agencies or departments, reorganization as non-profit private corporations, mergers and consolidation; and (ii) the liquidation of designated Government Corporations. 3. Implementation of the plan referred to in paragraph 3 of Part A of this Schedule, including satisfactory progress towards amendments of charters of Government Corporations necessary for the same. 4. Satisfactory progress in implementing recommendations formulated pursuant to paragraph 5 of Part A of this Schedule. 5. Satisfactory progress towards amendments of charters of Government Corporations for the purposes set out in paragraph 10 of Part A of this Schedule. 6. Approval of the corporate planning program referred to in paragraph 7 of Part A of this Schedule by the Board of Directors of each of at least fifteen Government Corporations (including the Government Corporations referred to in paragraph 7 of Part A of this Schedule). 7. Introduction of the computerized accounting systems agreed with the Bank by each of at least ten Government Corporations. 8. Introduction of the performance evaluation and incentive system referred to in paragraph 8 of Part A of this Schedule, by each of at least fifteen Government Corporations. 9. Satisfactory progress in the implementation of the Technical Assistance. Special Account 1. For the purposes of this Schedule: (a) the term "eligible expenditures" means expenditures in respect of the reasonable cost of goods and services required during the execution of the Program and to be financed out of the proceeds of the Loan in accordance with the provisions of paragraph 1 of Appendix Schedule 1 to the Guidelines. Procurement of all goods and works shall be undertaken in accordance with such procurement plan as shall have been approved by the Bank, and with the provisions of said paragraph 1. 2. Prior Review With respect to: (a) the first two contracts under Parts C.1 and C.2 hereofthis Agreement; and (b) each contract under Parts B and C.3 hereof, the procedures set forth in paragraphs 2 and 3 of Appendix 1 to the Guidelines shall apply.and

Notification and Advertising. The invitation to prequalify or bid for each contract estimated to cost $10,000,000 equivalent or more shall international community should be advertised notified in accordance with the procedures applicable to large contracts under paragraph 2.8 a timely manner (see also para. 2.44) of the opportunity to bid. This will be done by advertising invitations to apply for inclusion in a bidder’s invitation list, prequalify, or bid, in at least one newspaper of general circulation in the Borrower’s country and by at least one of the following methods: (i) a notice in the United Nations publication, Development Forum, Business Edition; or (ii) an advertisement in a newspaper, periodical or technical journal of wide international circulation; or (iii) notice to local representatives of countries and territories referred to in these Guidelines, that are potential suppliers of the goods required." (b) By the addition at the end of paragraph 2.21 of the following: "As an alternative, the bidding documents may require the bidder to state the bid price in a single currency widely used in international trade and specified in the bidding documents." (c) By the deletion of paragraph 2.55 and Appendix 2. Part CB: Other Procurement Procedures 1. International Shopping Office equipmentContracts for commonly traded commodities may be awarded on the basis of price quotations available from organized international commodity markets. 2. Whenever the Borrower and the Association shall be satisfied that goods of a specific type, including telephone exchangesdesign or manufacture shall be required in the interest of equipment standardization or of other valid considerations relating to the efficient utilization of existing productive capacity, copierssuch goods, fax machinesup to an aggregate amount not to exceed the equivalent of $20,000,000, may be procured under contracts awarded on a negotiated basis under terms and microcomputersconditions satisfactory to the Association. 3. Other goods, estimated to cost more less than the equivalent of $50,000, but $300,000 equivalent or less 2,000,000 per contract, may be procured under contracts awarded on the basis of international shopping the normal procurement procedures in accordance with the provisions of paragraphs 3.5 and 3.6 of the Guidelines. 2. National Shopping Telephones, local area networks wiring, library supplies, and office supplies, estimated to cost $50,000 equivalent or less per contract and $900,000 equivalent or less in the aggregate (which aggregate shall not apply in the case purchaser of goods financed under Part E of the Project), may be procured under contracts awarded on the basis of national shopping procedures in accordance with the provisions of paragraphs 3.5 and 3.6 of the Guidelines. 3. Procurement of Small Works Eligible works estimated not to exceed $75,000 equivalent per contract, and not to exceed $600,000 in the aggregate, shall be procured and awarded on the basis of quotations obtained from three qualified domestic contractors in response to a written invitation. The invitation shall include a detailed description of the works, including basic specifications, the required completion date, a basic form of agreement acceptable to the Bank, and relevant drawings, where applicable. The award shall be made to the contractor who offers the lowest price quotation for the required work, and who has the experience and resources to successfully complete the contractsuch goods. Part DC: Review by the Bank Association of Procurement Decisions 1. Procurement Planning Prior to the issuance Review of any invitations to prequalify for bidding or to bid for and of proposed awards and final contracts, the proposed procurement plan for the Project shall be furnished to the Bank for its review and approval, in accordance with the provisions of paragraph 1 of Appendix 1 to the Guidelines. Procurement of all goods and works shall be undertaken in accordance with such procurement plan as shall have been approved by the Bank, and with the provisions of said paragraph 1.: 2. Prior Review With respect to: (a) the first two contracts under Parts C.1 and C.2 hereof; and (b) With respect to each contract under Parts B and C.3 hereoffor goods referred to in Part B.2 of this Schedule estimated to cost the equivalent of $200,000 or more, the procedures set forth in paragraphs 2 and 3 4 of Appendix 1 to the Guidelines shall apply. Where payments for such contract are to be made out of the Special Account, such procedures shall be modified to ensure that the two conformed copies of the contract required to be furnished to the Association pursuant to said paragraph 2 (d) shall be furnished to the Association prior to the making of the first payment out of the Special Account in respect of such contract. (b) With respect to each contract for goods referred to in Part A.l of this Schedule, and each contract for goods referred to in Parts X.x and B.3 of this Schedule estimated to cost the equivalent of $500,000 or more, the procedures set forth in paragraphs 3 and 4 of Appendix 1 to the Guidelines shall apply. Where payments for such contract are to be made out of the Special Account, such procedures shall be modified to ensure that the two conformed copies of the contract together with the other information required to be furnished to the Association pursuant to said paragraph 3 shall be furnished to the Association as part of the evidence to be furnished pursuant to paragraph 4 of Schedule 5 to this Agreement. (c) With respect to each contract not governed by the preceding paragraphs, the procurement decisions may be reviewed by the Association on a random basis, in which event the procedures set forth in paragraphs 3 and 4 of Appendix 1 to the Guidelines shall apply. Where payments for such contract are to be made out of the Special Account, such procedures shall be modified to ensure that the two conformed copies of the contract together with the other information required to be furnished to the Association pursuant to said paragraph 3 shall be furnished to the Association as part of the evidence to be furnished pursuant to paragraph 4 of Schedule 5 to this Agreement. 2. The figure of 15% is hereby specified for purposes of paragraph 4 of Appendix 1 to the Guidelines. 1. In implementing Part A.1 of the Project, the Borrower shall establish in the National Board of Revenue of the Ministry of Finance a Duty Exemption-Drawback Office (DEDO). As the principal agency responsible for all policy-related and technical tasks pertaining to duty-free imports, DEDO shall: (a) prepare guidelines and administrative orders for duty-free imports; (b) approve input coefficients for application to duty-free imports; and (c) monitor the implementation of the duty-free system. 2. For purposes of Part A.2 of the Project, the Borrower shall take suitable measures to rationalize the structure of export financing. Such measures shall: (a) enable indirect exporters to have access to pre-shipment financing; and (b) provide exporters with a choice of method of payment for imported inputs. The Borrower shall also take measures to modernize and strengthen its Export Credit Guarantee Scheme. Such measures shall include the provision of necessary capital, staff and management. 3. In carrying out Part A.3 of the Project, the Borrower shall implement administrative mechanisms, satisfactory to the Association, for the application of export incentives to indirect exporters. 4. In carrying out Part A.4 of the Project, the Borrower shall staff and equip the Export Monitoring Unit, so as to enable it to monitor the export of items subject to external quota limitations in a manner satisfactory to the Association. 5. To implement Part B.1 of the Project, the Borrower shall introduce, not later than July 1, 1988, a revised tariff schedule, reducing the number of customs duty rates to seven (namely, 2.5%, 5%, 10%, 20%, 50%, 75% and 100%) (except as provided in paragraph 6 of this Schedule) and the number of sales tax rates to one (namely, 20%), with the customs duty rates for raw materials not to exceed 20%, for intermediate products not to exceed 75%, and for final products not to exceed 100%. 6. The Borrower shall lower the effective protection for the domestic production of luxury goods with a view to discouraging such production. To that end, the Borrower under Part B.2 of the Project shall: (a) in FY88, reduce all customs duty rates above 150% to 150%; and (b) in FY89, reduce all customs duty rates above 100% to 100%, except in the case of tobacco products, beverage concentrate, furs and fur apparel, perfumes and cosmetic products, and precious and semi-precious stones, for which the rates shall not exceed 200%, and in the case of whisky and spirits and luxury motorcars, for which the rates shall not exceed 300%. 7. In implementing Part B.3 of the Project, the Borrower shall over a three-year period beginning FY88 restructure tariffs and reduce quantitative restrictions on imports of textile, steel and engineering products through a reduction in total nominal tariffs, in amounts to be agreed for each year between the Borrower and the Association, so that at the end of said period such tariffs fall within a range of 0% to 85% provided, however, that, if at any time the excise duty rates for locally manufactured products are increased significantly (i.e., by 5% or more), such tariffs shall be adjusted correspondingly. 8. Under Part B.4 of the Project, the Borrower shall remove items from its Negative List and Restricted List as follows: (a) by reducing the number of items in the Negative List by about 20% each year beginning FY88, but giving priority to the textiles and steel and engineering sectors so that the bans in these sectors are completely removed by FY90; and (b) by reducing the number of items relating to industrial inputs in the Restricted List by about 33% each year beginning FY88 so that the restrictions are completely removed and such items become commercially importable by FY90. 9. In implementation of Part B.5 of the Project, the Borrower shall, not later than September 30, 1987, agree with the Association on a timetable for implementing reform measures on the basis of studies carried out by the Borrower. 10. To carry out Part C of the Project, the Borrower shall, not later than September 30, 1987, strengthen the Autonomous Bodies Wing in the Ministry of Finance, in a manner satisfactory to the Association, to oversee a system of performance indicators for, and a program for the monitoring and evaluation of, public enterprises and to coordinate the work of the various ministries and agencies in setting performance targets. During FY87 the Borrower shall apply said performance indicators to one industrial enterprise on a pilot basis and during FY88 shall extend said monitoring and evaluation program to three additional industrial enterprises to be agreed with the Association.

Notification and Advertising. The international community should be notified in a timely manner of the opportunity to bid. This will be done by advertising invitations to apply for inclusion in a bidder’s invitation list, to prequalify apply for prequalification, or to bid; such advertisements should be placed in at least one newspaper of general circulation in the Borrower’s country and, in addition, in at least one of the following forms: (i) a notice in the United Nations publication, Devel- opment Forum, Business Edition; or (ii) an advertisement in a newspaper, periodical or technical journal of wide international circulation; or (iii) a notice to local representatives of countries and territories referred to in the Guidelines, that are potential suppliers of the goods required." (b) The following is added at the end of paragraph 2.21 of the Guidelines: "As a further alternative, bidding documents may require the bidder to state the bid price in a single currency widely used in international trade and specified in the bidding documents." (c) Paragraphs 2.55 and 2.56 of the Guidelines are deleted. 2. Subject to the prior approval of the Association, commonly traded commodities may be procured through organized international commodity markets or other channels of competitive procurement acceptable to the Association, in accordance with procedures acceptable to the Association. 3. Contracts for each contract the procurement of goods estimated to cost the equivalent of less than $10,000,000 equivalent or more 5,000,000 shall be advertised awarded: (a) by purchasers required to follow the Borrower’s public procurement procedures for the importation of goods, on the basis of such procedures, provided that such procedures shall have been found acceptable by the Association; (b) by other purchasers, in accordance with the procedures applicable to large established commercial practice, provided that such contracts under paragraph 2.8 of the Guidelines. Part C: Other Procurement Procedures 1. International Shopping Office equipment, including telephone exchanges, copiers, fax machines, and microcomputers, estimated to cost more than $50,000, but $300,000 equivalent or less per contract, may shall be procured under contracts awarded on the basis of international shopping evaluation and comparison of quotations obtained from suppliers from at least two countries, except that direct contracting procedures in accordance with acceptable to the provisions of paragraphs Association may be used where considered appropriate under paragraph 3.5 and 3.6 of the Guidelines.; and 2. National Shopping Telephones(c) by any purchasers, local area networks wiringfor the supply of commodities, library supplies, and office supplies, estimated to cost $50,000 equivalent or less per contract and $900,000 equivalent or less in the aggregate (which aggregate shall not apply in the case of goods financed under Part E of the Project), may be procured under contracts awarded on the basis of national shopping procedures in accordance with the provisions of paragraphs 3.5 evaluation and 3.6 of the Guidelines. 3. Procurement of Small Works Eligible works estimated not to exceed $75,000 equivalent per contract, and not to exceed $600,000 in the aggregate, shall be procured and awarded on the basis comparison of quotations obtained from three qualified domestic contractors more than one supplier. 4. With respect to each contract referred to in response paragraph 1 of this Schedule, the Borrower shall furnish to the Association, prior to the submission to the Association of the first application for withdrawal of funds from the Credit Account in respect of such contract, two conformed copies of such contract, together with the analysis of the respective bids and recommendations for award, a written invitation. The invitation shall include a detailed description of the works, including basic specifications, advertising and tendering procedures followed and such other information as the required completion date, a basic form of agreement acceptable to the Bank, and relevant drawings, where applicable. The award Association shall be made to the contractor who offers the lowest price quotation for the required work, and who has the experience and resources to successfully complete the contract. Part D: Review by the Bank of Procurement Decisions 1. Procurement Planning Prior to the issuance of any invitations to prequalify for bidding or to bid for contracts, the proposed procurement plan for the Project shall be furnished to the Bank for its review and approval, in accordance with the provisions of paragraph 1 of Appendix 1 to the Guidelines. Procurement of all goods and works shall be undertaken in accordance with such procurement plan as shall have been approved by the Bank, and with the provisions of said paragraph 1reasonably request. 25. Prior Review With respect to: (a) the first two contracts under Parts C.1 and C.2 hereof; and (b) to each contract under Parts B and C.3 hereof, the procedures set forth referred to in paragraphs 2 and 3 of Appendix 1 this Schedule, the Borrower shall furnish to the Guidelines Association, prior to the submission to the Association of the first application for withdrawal of funds from the Credit Account in respect thereof, such documentation and information as the Association may reasonably request to support withdrawal applications in respect of such contract. 6. Notwithstanding the provisions of paragraphs 3 and 4 of this Schedule, where payments under a contract are to be made out of the proceeds of the Special Account, the copies of such contract or the documentation and the information to be furnished to the Association pursuant to the provisions of paragraph 3 or paragraph 4 of this Schedule, as the case may be, shall applybe furnished to the Association as part of the evidence required under paragraph 4 of Schedule 4 to this Agreement. Actions Referred to in Paragraph 6 (b) of Schedule I to this Agreement 1. Stabilization and Macroeconomic Policies Satisfactory progress on the macroeconomic stabilization program agreed with the Association, as indicated by the following: (a) subsidies for rice, wheat-flour, fertilizer and the Sri Lanka Central and Regional Transport Boards have been eliminated, and have not been reinstated; (b) a plan for the restructuring of the sugar industry, aimed at reducing the domestic producer price of sugar and eliminating subsidies, has been agreed with the Association; (c) a plan to implement recommendations of the Tax Commission has been agreed with the Association, and the first phase of such plan has been incorporated in the 1991 draft budget presented to the Parliament; and (d) the macroeconomic policies, including the exchange rate policy, outlined in the Second Year Policy Framework Paper have been implemented. 2. Public Sector Rationalization Satisfactory progress on the public sector rationalization program agreed with the Association, as indicated by the following: (a) central and provincial administrations staff have been reduced in accordance with the plan agreed with the Association; the September 1990 census has been completed, and an expenditure control system for the Provincial Councils has been established; (b) a plan for reducing central and provincial administrations staff in 1991 has been agreed with the Association, and has been reflected in the budget referred to in Part 1 (c) above; (c) a plan for reducing staff in non-commercial parastatals in 1991 has been agreed with the Association, and has been reflected in the budget referred to in Part 1 (c) above; (d) legislation has been approved by the Cabinet establishing an independent commission to oversee recruitment, promotion and discipline throughout the public sector; (e) the conversion of the Employees Provident Fund into an employee pension scheme has been completed, provided the actuarial study proves that the employee pension scheme is financially viable; (f) a plan to reduce the fiscal cost of the Borrower’s staff pension scheme has been agreed with the Association; and (g) a plan to rationalize the implementation of projects under the Public Investment Program has been agreed with the Association, and has been incorporated in the budget referred to in Part 1 (c) above. 3. Private Sector Development Satisfactory progress on the private sector development program agreed with the Association, as indicated by the following: (a) air freight operations have been deregulated; (b) a plan to introduce a four-band tariff system and to reduce the maximum nominal tariff has been agreed; (c) the Paddy Marketing Board has been restructured; (d) a plan to increase the private sector role in the importation and distribution of fertilizer has been agreed with the Association; (e) the plan to restructure the Sri Lanka Central and Regional Transport Boards has been implemented; and (f) a plan for the restructuring of the tree-crops sector has been agreed with the Association.

Notification and Advertising. The international community should be notified in a timely manner of the opportunity to bid. This will be done by advertising invitations to apply for inclusion in a bidder’s invitation list, invitations to prequalify apply for prequalification, or bid for each contract estimated invitations to cost $10,000,000 equivalent bid. Such advertisements should be placed in at least one newspaper of general circulation in the Borrower’s country and, in addition, in at least one of the following forms: (i) a notice in the United Nations publication, Development Forum, Business Edition; or (ii) an advertisement in a newspaper, periodical or more shall be advertised technical journal of wide international circula- tion; or (iii) a notice to local representatives of countries and territories referred to in accordance with the procedures applicable to large contracts under Guidelines, that are potential suppliers of the goods required." (b) The following is added at the end of paragraph 2.8 2.21 of the Guidelines. Part C: Other Procurement Procedures"As a further alternative, bidding documents may require the bidder to state the bid price in a single currency widely used in international trade and specified in the bidding documents." 1. International Shopping Office equipment, including telephone exchanges, copiers, fax machines, (c) Paragraphs 2.55 and microcomputers2.56 of the Guidelines are deleted. (a) Contracts for goods, estimated to cost more the equivalent of less than two million dollars ($50,000, but $300,000 equivalent or less per contract, may 2,000,000) to be procured under contracts by private entities and contractors, shall be awarded on the basis of international shopping the normal procurement procedures in accordance with the provisions of paragraphs 3.5 and 3.6 of the Guidelinespurchaser of such goods. 2. National Shopping Telephones(b) Contracts for goods to be procured by the Borrower, local area networks wiring, library supplies, and office suppliesits political subdivisions or state-owned enterprises, estimated to cost the equivalent of less than two million dollars ($50,000 equivalent or less per contract and $900,000 equivalent or less in the aggregate (which aggregate shall not apply in the case of goods financed under Part E of the Project2,000,000), may be procured under contracts awarded on the basis of national shopping the normal procurement procedures of the purchaser of such goods, and such procedures shall be satisfactory to the Association. 3. With respect to each contract referred to in accordance paragraph 1 of this Schedule, the Borrower shall furnish to the Association, prior to the submission to the Association of the first applica- tion for withdrawal of funds from the Credit Account in respect of such contract, two conformed copies of such contract, together with the analysis of the respective bids and recommendations for award, a description of the advertising and tendering procedures followed and such other information as the Association shall reasonably request. 4. With respect to each contract referred to in paragraph 2 of this Schedule, the Borrower shall furnish to the Association, prior to the submission to the Association of the first applica- tion for withdrawal of funds from the Credit Account in respect thereof, such documentation and information as the Association may reasonably request to support withdrawal applications in respect of such contract. 5. Notwithstanding the provisions of paragraphs 3.5 3 and 3.6 4 of this Schedule, where payments under a contract are to be made out of the Guidelines. 3. Procurement of Small Works Eligible works estimated not to exceed $75,000 equivalent per contract, and not to exceed $600,000 in the aggregate, shall be procured and awarded on the basis of quotations obtained from three qualified domestic contractors in response to a written invitation. The invitation shall include a detailed description proceeds of the works, including basic specificationsSpecial Account, the required completion date, a basic form copies of agreement acceptable such contract or documentation and information to be furnished to the Bank, and relevant drawings, where applicable. The award shall be made Association pursuant to the contractor who offers provisions of paragraph 3 or paragraph 4 of this Schedule, as the lowest price quotation for the required workcase may be, and who has the experience and resources to successfully complete the contract. Part D: Review by the Bank of Procurement Decisions 1. Procurement Planning Prior to the issuance of any invitations to prequalify for bidding or to bid for contracts, the proposed procurement plan for the Project shall be furnished to the Bank for its review Association as part of the evidence required under paragraph 4 of Schedule 4 to this Agreement. 6. The provisions of the preceding paragraphs 3, 4 and approval, 5 shall not apply to contracts on account of which the Association has authorized withdrawals from the Credit Account on the basis of statements of expenditure. Such contracts shall be retained in accordance with the provisions Section 3.03 (c) (ii) of paragraph 1 this Agreement. Actions Referred to in Paragraph 3 (b) of Appendix Schedule 1 to this Agreement 1. The Borrower has prepared and adopted a public investment program satisfactory to the Guidelines. Procurement of all goods and works shall be undertaken in accordance with such procurement plan as shall have been approved by the Bank, and with the provisions of said paragraph 1Association for its 1988/90-1990/91 fiscal years. 2. Prior Review With respect to: The Borrower has consulted with the Association on its proposals based on a methodology, satisfactory to the Association, for the revision of its May 1987 producer prices for export crops. 3. The Borrower has adopted: (a) an open general licensing system giving eligible producers in priority industries access to foreign exchange upon request for the first two contracts under Parts C.1 and C.2 hereofimportation of eligible imports; and and (b) each contract under Parts B and C.3 hereoffollowing a review of the implementation of the system, the procedures set forth in paragraphs 2 and 3 a plan of Appendix 1 action, satisfactory to the Guidelines shall applyAssociation, for expanding its coverage. 4. The Borrower has finalized an action plan for restructuring the public enterprise (industrial and non-industrial) sector, including a classification of enterprises, to be maintained in the Borrower’s portfolio, liquidated or wholly or partly privatized. 5. The Borrower’s Verification Committee has completed the verification of the ownership of a significant number of industrial enterprises and the Borrower has submitted a plan of action, satisfactory to the Association, for the completion of the verification and valuation of all properties and enterprises subject to the Expropriated Properties Act, and for the return to former owners or sale of such properties and enterprises. Special Account 1. For the purposes of this Schedule:

Notification and Advertising. The international community should be notified in a timely manner of the opportunity to bid. This will be done by advertising invitations to apply for inclusion in a bidder’s invitation list, to prequalify apply for prequalification, or to bid; such advertisements should be placed in at least one newspaper of general circulation in the Borrower’s country and, in addition, in at least one of the following forms: (i) a notice in the United Nations publication, Development Forum, Business Edition; or (ii) an advertisement in a newspaper, periodical or technical journal of wide international circulation; or (iii) a notice to local representatives of countries and territories referred to In the Guidelines, that are potential suppliers of the goods required." (b) The following is added at the end of paragraph 2.21 of the Guidelines: "As a further alternative, bidding documents may require the bidder to state the bid price in a single currency widely used in international trade and specified in the bidding documents. (c) Paragraphs 2.55 and 2.56 of the Guidelines are deleted. 2. Contracts for each contract goods estimated to cost the equivalent of less than $10,000,000 equivalent or more 5,000,000 each shall be advertised in accordance with the procedures applicable to large contracts under paragraph 2.8 of the Guidelines. Part C: Other Procurement Procedures 1. International Shopping Office equipment, including telephone exchanges, copiers, fax machines, and microcomputers, estimated to cost more than $50,000, but $300,000 equivalent or less per contract, may be procured under contracts awarded on the basis of international shopping the normal procurement procedures in accordance with the provisions of paragraphs 3.5 and 3.6 of the Guidelines. 2. National Shopping Telephones, local area networks wiring, library supplies, and office supplies, estimated to cost $50,000 equivalent or less per contract and $900,000 equivalent or less in the aggregate (which aggregate shall not apply in the case purchaser of goods financed under Part E of the Project), may be procured under contracts awarded on the basis of national shopping procedures in accordance with the provisions of paragraphs 3.5 and 3.6 of the Guidelinessuch goods. 3. Procurement With respect to each contract referred to in paragraph 1 of Small Works Eligible works estimated not to exceed $75,000 equivalent per contract, and not to exceed $600,000 in the aggregate, shall be procured and awarded on the basis of quotations obtained from three qualified domestic contractors in response to a written invitation. The invitation shall include a detailed description of the works, including basic specificationsthis Schedule, the required completion date, a basic form of agreement acceptable borrower shall furnish to the Bank, and relevant drawings, where applicable. The award shall be made prior to the contractor who offers the lowest price quotation for the required work, and who has the experience and resources submission to successfully complete the contract. Part D: Review by the Bank of Procurement Decisionsthe first application for withdrawal of funds from the Loan Account in respect of such contract, two conformed copies of such contract, together with the analysis of the respective bids and recommendations for award, a description of the advertising and tendering procedures followed and such other information as the Bank shall reasonably request. 14. Procurement Planning Prior With respect to each contract referred to in paragraph 2 of this Schedule, the Borrower shall furnish to the issuance of any invitations Bank, prior to prequalify for bidding or to bid for contracts, the proposed procurement plan for the Project shall be furnished submission to the Bank of the first application for its review withdrawal of funds from the Loan Account in respect thereof, such documentation and approval, information as the Bank may reasonably request to support withdrawal applications in accordance with the respect of such contract. 5. The provisions of paragraph 1 of Appendix 1 to the Guidelines. Procurement of all goods and works shall be undertaken in accordance with such procurement plan as shall have been approved by the Bank, and with the provisions of said paragraph 1. 2. Prior Review With respect to: (a) the first two contracts under Parts C.1 and C.2 hereof; and (b) each contract under Parts B and C.3 hereof, the procedures set forth in preceding paragraphs 2 and 3 of Appendix 1 to the Guidelines shall apply.and

Notification and Advertising. The international community should be notified in a timely manner of the opportunity to bid. This will be done by advertising invitations to apply for inclusion in a bidder’s invitation list, to prequalify apply for prequalification, or to bid; such advertisements should be placed in at least one newspaper of general circulation in the Borrower’s country and, in addition, in at least one of the following forms: (i) a notice in the United Nations publication, Development Forum, Business Edition; or (ii) an advertisement in a newspaper, periodical or technical journal of wide international circula- tion; or (iii) a notice to local representatives of countries and territories referred to in the Guidelines, that are potential suppliers of the goods required." (b) The following is added at the end of paragraph 2.21 of the Guidelines: "As a further alternative, bidding documents may require the bidder to state the bid price in a single currency widely used in international trade and specified in the bidding documents." (c) Paragraphs 2.55 and 2.56 of the Guidelines are deleted. (a) Contracts for each contract goods to be procured by the Borrower, its political subdivisions or state-owned enterprises estimated to cost $10,000,000 the equivalent or more shall be advertised in accordance with the procedures applicable to large contracts under paragraph 2.8 of the Guidelines. Part C: Other Procurement Procedures 1. International Shopping Office equipment, including telephone exchanges, copiers, fax machines, and microcomputers, estimated to cost more less than $50,000, but $300,000 equivalent or less per contract, 500,000 each may be procured under contracts awarded on the basis of the normal procurement procedures of the purchaser of such goods. (b) Contracts for goods to be procured by private entities and contracts for foodstuffs and petroleum products commonly traded in the international shopping market may be awarded on the basis of the normal procurement procedures of the purchaser of such goods. 3. With respect to each contract referred to in paragraph 1 of this Schedule, the Borrower shall furnish to the Association, prior to the submission to the Association of the first applica- tion for withdrawal of funds from the Credit Account in respect of such contract, two conformed copies of such contract, together with the analysis of the respective bids and recommendations for award, a description of the advertising and tendering procedures followed and such other information as the Association shall rea- sonably request. 4. With respect to each contract referred to in paragraph 2 of this Schedule, the Borrower shall furnish to the Association, prior to the submission to the Association of the first applica- tion for withdrawal of funds from the Credit Account in respect thereof, such documentation and information as the Association may reasonably request to support withdrawal applications in respect of such contract. 5. Notwithstanding the provisions of paragraphs 3 and 4 of this Schedule, where payments under a contract are to be made out of the proceeds of the Special Account, the copies of such contract or the documentation and the information to be furnished to the Association pursuant to the provisions of paragraph 3 or paragraph 4 of this Schedule, as the case may be, shall be furnished to the Association as part of the evidence required under paragraph 4 of Schedule 4 to this Agreement. 6. The provisions of the preceding paragraphs 3, 4 and 5 shall not apply to contracts on account of which the Association has authorized withdrawals from the Credit Account on the basis of statements of expenditure. Such contracts shall be retained in accordance with Section 3.04 (c)(ii) of this Agreement. Actions Referred to in Paragraph 3 (b) of Schedule 1 to this Agreement 1. The Borrower has enacted financial (including budgeting and accounting) regulations and procedures governing central govern- ment financial transactions. 2. The Borrower has adopted a public investment program for the period 1989-1991. 3. The 1989 budget has been enacted; a public accounting system has been set in place; and a report on the execution of the 1988 budget and an interim report on the execution of the 1989 budget have been prepared. 4. The Borrower has adopted new organizational structures (cadres organiques) for the decentralized departments of its administration. 5. The Borrower has for all its departments with the exception of the teachers of the Ministry of Education: (i) completed the staff testing and selection process; (ii) confirmed selected staff; and (iii) transferred non-selected staff to the severance scheme. 6. The Borrower has established a central payroll service at its Ministry of Economy and Finance and a permanent mechanism for the monitoring and control of personnel rolls and wage bills. 7. The Borrower has established a central corporate taxpayer file on the basis of a census of corporate taxpayers. 8. A law governing the relations between the Borrower and its public enterprises has been enacted. Special Account 1. For the purposes of this Schedule: (a) the term "eligible expenditures" means expenditures in respect of the reasonable cost of goods required during the execu- tion of the Program and to be financed out of the proceeds of the Credit into accordance with the provisions of paragraphs 3.5 and 3.6 of the Guidelines. 2. National Shopping Telephones, local area networks wiring, library supplies, and office supplies, estimated to cost $50,000 equivalent or less per contract and $900,000 equivalent or less in the aggregate (which aggregate shall not apply in the case of goods financed under Part E of the Project), may be procured under contracts awarded on the basis of national shopping procedures in accordance with the provisions of paragraphs 3.5 and 3.6 of the Guidelines. 3. Procurement of Small Works Eligible works estimated not to exceed $75,000 equivalent per contract, and not to exceed $600,000 in the aggregate, shall be procured and awarded on the basis of quotations obtained from three qualified domestic contractors in response to a written invitation. The invitation shall include a detailed description of the works, including basic specifications, the required completion date, a basic form of agreement acceptable to the Bank, and relevant drawings, where applicable. The award shall be made to the contractor who offers the lowest price quotation for the required work, and who has the experience and resources to successfully complete the contract. Part D: Review by the Bank of Procurement Decisions 1. Procurement Planning Prior to the issuance of any invitations to prequalify for bidding or to bid for contracts, the proposed procurement plan for the Project shall be furnished to the Bank for its review and approval, in accordance with the provisions of paragraph 1 of Appendix Schedule 1 to the Guidelines. Procurement of all goods and works shall be undertaken in accordance with such procurement plan as shall have been approved by the Bank, and with the provisions of said paragraph 1. 2. Prior Review With respect to: (a) the first two contracts under Parts C.1 and C.2 hereofthis Agreement; and (b) each contract under Parts B and C.3 hereof, the procedures set forth in paragraphs 2 and 3 of Appendix 1 to the Guidelines shall apply.and

Notification and Advertising. The international community should be notified in a timely manner of the opportunity to bid. This will be done by advertising invitations to apply for inclusion in a bidder’s invitation list, to prequalify apply for prequalification, or bid for each contract estimated to cost $10,000,000 equivalent bid; such advertisements should be placed in at least one news- paper of general circulation in the Borrower’s country and, in addition, in at least one of the following forms: (i) a notice in the United Nations publication, Devel- opment Forum Business Edition; or (ii) an advertisement in a newspaper, periodical or more shall be advertised technical journal of wide international circula- tion; or (iii) a notice to local representatives of countries and territories referred to in accordance with the procedures applicable to large contracts under Guidelines that are potential suppliers of the goods required." (b) The following is added at the end of paragraph 2.8 2.21 of the Guidelines: "As a further alternative, bidding documents may require the bidder to state the bid price in a single currency widely used in international trade and specified in the bidding documents." (c) Paragraphs 2.55 and 2.56 of the Guidelines are deleted. Part CB: Other Procurement Procedures 1. International Shopping Office equipment, including telephone exchanges, copiers, fax machines, Items to be procured by the Private Sector and microcomputers, Public Sector Enterprises under Part A of the Project estimated to cost more the equivalent of less than $50,000, but $300,000 equivalent or less per contract, 400,000 may be procured under contracts awarded on the basis of international shopping procedures in accordance with the provisions comparison of paragraphs 3.5 and 3.6 price quotations solicited from a list of at least three suppliers eligible under the Guidelines. 2. National Shopping Telephones, local area networks wiring, library supplies, and office supplies, Items to be procured by the ministries under Part B of the Project estimated to cost not more than the equivalent of $50,000 equivalent or less per contract and $900,000 equivalent or less in the aggregate (which aggregate shall not apply in the case of goods financed under Part E of the Project)200,000, may be procured under contracts awarded through limited international bidding procedures on the basis of national shopping procedures comparison of price quotations solicited from a list of at least three suppliers eligible under the Guidelines and in accordance with the provisions of paragraphs 3.5 procedures set forth in Sections I and 3.6 II of the GuidelinesGuidelines (excluding para- graphs 2.8, 2.9, 2.55 and 2.56 thereof). 3. Procurement Contracts for goods to be procured by the Private Sector and Public Sector Enterprises under Part A of Small Works Eligible works the Project estimated not to exceed cost the equivalent of less than $75,000 equivalent per contract, and not to exceed $600,000 in the aggregate200,000 each, shall be procured and awarded on the basis of quotations obtained from three qualified domestic contractors in response to a written invitation. The invitation shall include a detailed description established commercial practices of the works, including basic specifications, the required completion date, a basic form of agreement acceptable Borrower satisfactory to the Bank, and relevant drawings, where applicable. The award shall be made to the contractor who offers the lowest price quotation Association for the required workpurchase of such goods. 4. Notwithstanding the provisions of Parts B.1 and B.2 above, and who has the experience and resources to successfully complete the contract. items under Part D: Review by the Bank A of Procurement Decisions 1. Procurement Planning Prior to the issuance of any invitations to prequalify for bidding or to bid for contracts, the proposed procurement plan for the Project shall may be furnished to the Bank for its review and approval, procured under direct contracting methods in accordance with Paragraph 3.5 of the provisions Guide- lines in the following circumstances: (i) if the importer is the supplier’s authorized dis- tributor or dealer; or (ii) if the importer is precluded from buying from another supplier; or (iii) if the importer is purchasing a brand name commodity from a supplier who is the exclusive distributor of paragraph 1 of Appendix 1 to the Guidelines. Procurement of all goods and works shall be undertaken in accordance with such procurement plan as shall have been approved by the Bank, and with the provisions of said paragraph 1that commodity. 2. Prior Review With respect to: (a) the first two contracts under Parts C.1 and C.2 hereof; and (b) each contract under Parts B and C.3 hereof, the procedures set forth in paragraphs 2 and 3 of Appendix 1 to the Guidelines shall apply.

Notification and Advertising. The international community should be notified in a timely manner of the opportunity to bid. This will be done by advertising invitations to apply for inclusion in a bidder’s invitation list, to prequalify apply for prequalification, or to bid; such advertisements should be placed in at least one newspaper of general circulation in the Borrower’s country and, in addition, in at least one of the following forms: (i) a notice in the United Nations publication, Development Forum, Business Edition; or (ii) an advertisement in a newspaper, periodical or technical journal of wide international circulation; or (iii) a notice to local representatives of countries and territories referred to in the Guidelines, that are potential suppliers of the goods required." (b) The following is added at the end of paragraph 2.21 of the Guidelines: "As a further alternative, bidding documents may require the bidder to state the bid price in a single currency widely used in international trade and specified in the bidding documents." (c) Paragraphs 2.55 and 2.56 of the Guidelines are deleted. 2. Contracts for each contract goods estimated to cost the equivalent of less than $10,000,000 equivalent or more 1,000,000 each shall be advertised awarded on the basis of: (a) price quotations solicited from a list of at least three suppliers eligible under the Guidelines, in accordance with procedures acceptable to the Association, if procured by the Borrower, its political subdivisions or state-owned enterprises; and (b) price quotations solicited from a list of at least two suppliers eligible under the Guidelines or in accordance with the normal procurement procedures applicable to large contracts under paragraph 2.8 of the Guidelines. Part C: Other Procurement Procedures 1. International Shopping Office equipmentpurchaser of such goods, including telephone exchanges, copiers, fax machines, and microcomputers, estimated acceptable to cost more than $50,000, but $300,000 equivalent or less per contract, may be the Association if procured under contracts awarded on the basis of international shopping procedures in accordance with the provisions of paragraphs 3.5 and 3.6 of the Guidelines. 2. National Shopping Telephones, local area networks wiring, library supplies, and office supplies, estimated to cost $50,000 equivalent or less per contract and $900,000 equivalent or less in the aggregate (which aggregate shall not apply in the case of goods financed under Part E of the Project), may be procured under contracts awarded on the basis of national shopping procedures in accordance with the provisions of paragraphs 3.5 and 3.6 of the Guidelinesby private entities. 3. Procurement of Small Works Eligible works estimated not to exceed $75,000 equivalent per contract, Medical equipment and not to exceed $600,000 in the aggregate, shall drugs may be procured through the United Nations Children Fund in accordance with said Fund’s own procedures. 4. With respect to each contract referred to in paragraphs 1, 2 and awarded on 3 above, the basis of quotations obtained from three qualified domestic contractors in response Borrower shall furnish to a written invitation. The invitation shall include a detailed description the Association, prior to the submission to the Association of the worksfirst application for withdrawal of funds from the Credit Account in respect thereof, including basic specificationssuch documentation and information as the Association may reasonably request to support withdrawal applications in respect of such contract. 5. Notwithstanding the provisions of paragraph 4 above, where payments under a contract are to be made out of the proceeds of the Special Account Program, the required completion date, a basic form copies of agreement acceptable such documentation and the information to be furnished to the Bank, and relevant drawings, where applicable. The award shall be made Association pursuant to the contractor who offers the lowest price quotation for the required work, and who has the experience and resources to successfully complete the contract. Part D: Review by the Bank provisions of Procurement Decisions 1. Procurement Planning Prior to the issuance of any invitations to prequalify for bidding or to bid for contracts, the proposed procurement plan for the Project paragraph 3 above shall be furnished to the Bank for Association as part of the evidence required under paragraph 4 of Schedule 5 to this Agreement. 6. The provisions of the preceding paragraphs 4 and 5 shall not apply to contracts on account of which the Association has authorized withdrawals from the Credit Account on the basis of statements of expenditure. Part A: For the purposes of the second tranche release 1. Restructuring of MSP and redeployment of its review and approval, staff in accordance with the provisions Borrower’s restructuring plan referred to in Section 6.01 (d)(i) of paragraph 1 of Appendix 1 to the Guidelines. Procurement of all goods and works shall be undertaken in accordance with such procurement plan as shall have been approved by the Bank, and with the provisions of said paragraph 1this Agreement. 2. Prior Review With respect toAdoption of a framework regulating the sale of drugs and the operation of clinics by the private sector. 3. Evaluation of the Borrower’s cost recovery measures for health services in the Project Area, referred to in Section 6.01 (f) of this Agreement, including, inter alia, a review of price levels of drugs and health care services and the ability of consumers to pay for said drugs and services. 4. Adoption of a program for nationwide implementation of costrecovery measures for drugs and health services, acceptable to the Association. 5. Establishment of a non-profit institution, in a form acceptable to the Association, for the non-exclusive procurement, distribution and stock management of pharmaceutical products in the Borrower’s territory. 6. Agreement between the Borrower and the Association on a three-year rolling investment plan for the health sector covering the years 1990 to 1992 and a recurrent budget for the year 1990, both in accordance with Section 3.07 of this Agreement. 7. Completion of a performance review of the regulatory framework establishing the Borrower’s reference list of essential drugs and a national drugs formulary. Part B: For the purposes of the third tranche release 1. Agreement between the Borrower and the Association on a three year rolling investment plan for the health sector covering the years 1991 to 1993 and a recurrent budget for the year 1991, both in accordance with Section 3.07 of this Agreement. 2. Completion of a performance review of: (a) the first two contracts under Parts C.1 institution referred to in Part A.5 of this Schedule and C.2 hereof; discussion of said review between the Borrower and the Association; (b) each contract under Parts B the nationwide implementation of the cost recovery program referred to in Part A.4 of this Schedule; and (c) the regulatory framework establishing the Borrower’s reference list of essential drugs and C.3 hereof, national drugs formulary. 3. Redeployment of MSP staff in accordance with the procedures set forth Borrower’s restructuring plan referred to in paragraphs 2 and 3 Section 6.01 (d)(i) of Appendix 1 to this Agreement. 1. For the Guidelines shall apply.purposes of this Schedule:

Notification and Advertising. The international community should be notified in a timely manner of the opportunity to bid. This will be done by advertising invitations to apply for inclusion in a bidder’s invitation list, to prequalify apply for prequalification, or to bid; such advertisements should be placed in at least one newspaper of general circulation in the Borrower’s country and, in addition, in at least one of the following forms: (i) a notice in the United Nations publication, Development Business; or (ii) an advertisement in a newspaper, periodical or technical journal of wide international circula- tion; or (iii) a notice to local representatives of countries and territories referred to in the Guidelines, that are potential suppliers of the goods required." (b) The following is added at the end of paragraph 2.21 of the Guidelines: "As a further alternative, bidding documents may require the bidder to state the bid price in a single currency widely used in international trade and specified in the bidding documents." (c) Paragraphs 2.55 and 2.56 of the Guidelines are deleted. 2. Contracts for each contract the procurement of goods estimated to cost the equivalent of less than $10,000,000 equivalent or more 5,000,000 shall be advertised awarded: (a) subject to paragraph (e) below, by purchasers required to follow the Borrower’s public procurement procedures for the importation of goods, on the basis of such procedures, provided such procedures shall have been found acceptable to the Bank; (b) by other purchasers, in accordance with established commercial practice, provided that such contracts shall be awarded on the basis of evaluation and comparison of quotations obtained from suppliers from at least two countries, except that direct contracting procedures acceptable to the Bank may be used where considered appropriate under paragraph 3.5 of the Guidelines; (c) notwithstanding the provisions of subparagraph (b) above, in the case of the purchasers referred to therein, if the estimated cost of the contract is equivalent to less than $1,000,000, in accordance with established commercial practices under procedures satisfactory to the Bank; (d) by any purchasers for the supply of commodities, on the basis of evaluation and comparison of quotations obtained from more than one supplier; and (e) with respect to Part B of the Project: (A) Items or groups of items estimated to cost more than the equivalent of $50,000 may be procured under contracts awarded through limited inter- national bidding procedures on the basis of evaluation and comparison of bids invited from a list of at least three qualified suppliers eligible under the Guidelines and in accordance with the procedures applicable to large contracts under paragraph 2.8 set forth in Sections I and II of the Guidelines. Part C: Other Procurement ProceduresGuidelines (excluding paragraphs 2.8, 2.9, 2.55 and 2.56 thereof). 1. International Shopping Office equipment, including telephone exchanges, copiers, fax machines, and microcomputers, (B) Items or groups of items estimated to cost more less than the equivalent of $50,000, but $300,000 equivalent or less per contract, 50,000 may be procured under contracts awarded on the basis of international shopping procedures com- parison of price quotations solicited from a list of at least three suppliers eligible under the Guidelines, in accordance with procedures acceptable to the provisions of paragraphs 3.5 and 3.6 of the Guidelines. 2. National Shopping Telephones, local area networks wiring, library supplies, and office supplies, estimated to cost $50,000 equivalent or less per contract and $900,000 equivalent or less in the aggregate (which aggregate shall not apply in the case of goods financed under Part E of the Project), may be procured under contracts awarded on the basis of national shopping procedures in accordance with the provisions of paragraphs 3.5 and 3.6 of the GuidelinesBank. 3. Procurement With respect to each contract referred to in paragraph 1 of Small Works Eligible works estimated not to exceed $75,000 equivalent per contract, and not to exceed $600,000 in the aggregate, shall be procured and awarded on the basis of quotations obtained from three qualified domestic contractors in response to a written invitation. The invitation shall include a detailed description of the works, including basic specificationsthis Schedule, the required completion date, a basic form of agreement acceptable Borrower shall furnish to the Bank, and relevant drawings, where applicable. The award shall be made prior to the contractor who offers the lowest price quotation for the required work, and who has the experience and resources submission to successfully complete the contract. Part D: Review by the Bank of Procurement Decisionsthe first application for withdrawal of funds from the Loan Account in respect of such contract, two conformed copies of such contract, together with the analysis of the respective bids and recommendations for award, a description of the advertising and tendering procedures followed and such other information as the Bank shall reasonably request. 14. Procurement Planning Prior With respect to each contract referred to in paragraph 2 of this Schedule, other than in sub-paragraph (e) thereof, the Borrower shall furnish to the issuance of any invitations Bank, prior to prequalify for bidding or to bid for contracts, the proposed procurement plan for the Project shall be furnished submission to the Bank of the first application for its review withdrawal of funds from the Loan Account in respect thereof, such documentation and approval, information as the Bank may reasonably request to support withdrawal applications in accordance with the provisions respect of paragraph 1 of Appendix 1 to the Guidelines. Procurement of all goods and works shall be undertaken in accordance with such procurement plan as shall have been approved by the Bank, and with the provisions of said paragraph 1contract. 25. Prior Review With of invitations to bid and of proposed awards and final contracts in respect to: (a) the first two contracts under Parts C.1 and C.2 hereof; and (b) of each contract under Parts B and C.3 hereof, the procedures set forth referred to in paragraphs 2 and 3 of Appendix 1 to the Guidelines shall apply.sub-paragraph

Notification and Advertising. The international community should be notified in a timely manner of the opportunity to bid. This will be done by advertising invitations to apply for inclusion in a bidder’s invitation list, to prequalify apply for prequalification, or to bid; such advertisements should be placed in at least one news- paper of general circulation in the Borrower’s country and, in addition, in at least one of the following forms: (i) a notice in the United Nations publication, Devel- opment Forum, Business Edition; or (ii) an advertisement in a newspaper, periodical or technical journal of wide international circu- lation; or (iii) a notice to local representatives of countries and territories referred to in the Guidelines that are potential suppliers of the goods required." (b) The following is added at the end of paragraph 2.21 of the Guidelines: "As a further alternative, bidding documents may require the bidder to state the bid price in a single currency widely used in international trade and specified in the bidding documents." (c) Paragraphs 2.55 and 2.56 of the Guidelines are deleted. 2. Contracts for each contract goods estimated to cost the equivalent of less than $10,000,000 equivalent or more 2,000,000 each and for proprietary spare parts shall be advertised in accordance with the procedures applicable to large contracts under paragraph 2.8 of the Guidelines. Part C: Other Procurement Procedures 1. International Shopping Office equipment, including telephone exchanges, copiers, fax machines, and microcomputers, estimated to cost more than $50,000, but $300,000 equivalent or less per contract, may be procured under contracts awarded on the basis of international shopping the normal procurement procedures of the purchaser of such goods. 3. With respect to each contract referred to in accordance paragraph 1 of this Schedule, the Borrower shall furnish to the Administrator, prior to the submission to the Association of the first applica- tion for withdrawal of funds from the African Facility Credit Account in respect of such contract, two conformed copies of such contract, together with the analysis of the respective bids and recommendations for award, a description of the advertising and tendering procedures followed and such other information as the Administrator shall reasonably request. 4. With respect to each contract referred to in paragraph 2 of this Schedule, the Borrower shall furnish to the Administrator, prior to the submission to the Administrator of the first applica- tion for withdrawal of funds from the African Facility Credit Account in respect thereof, such documentation and information as the Administrator may reasonably request to support withdrawal applications in respect of such contract. 5. Notwithstanding the provisions of paragraphs 3.5 3 and 3.6 4 of this Schedule, where payments under a contract are to be made out of the Guidelines. 2. National Shopping Telephonesproceeds of Special Account B, local area networks wiring, library supplies, the copies of such contract or the documentation and office supplies, estimated the information to cost $50,000 equivalent or less per contract and $900,000 equivalent or less in be furnished to the aggregate (which aggregate shall not apply in the case of goods financed under Part E of the Project), may be procured under contracts awarded on the basis of national shopping procedures in accordance with Administrator pursuant to the provisions of paragraphs 3.5 and 3.6 paragraph 3 or para- graph 4 of this Schedule, as the Guidelines. 3. Procurement of Small Works Eligible works estimated not to exceed $75,000 equivalent per contractcase may be, and not to exceed $600,000 in the aggregate, shall be procured and awarded on the basis of quotations obtained from three qualified domestic contractors in response to a written invitation. The invitation shall include a detailed description of the works, including basic specifications, the required completion date, a basic form of agreement acceptable to the Bank, and relevant drawings, where applicable. The award shall be made to the contractor who offers the lowest price quotation for the required work, and who has the experience and resources to successfully complete the contract. Part D: Review by the Bank of Procurement Decisions 1. Procurement Planning Prior to the issuance of any invitations to prequalify for bidding or to bid for contracts, the proposed procurement plan for the Project shall be furnished to the Bank for its review and approval, in accordance with Association as part of the evidence required under para- graph 4 of Schedule 4 to this Agreement. 6. The provisions of paragraph 1 the preceding paragraphs 3, 4 and 5 shall not apply to contracts on account of Appendix 1 which the Administrator has authorized withdrawals from the African Facility Credit Account on the basis of statements of expenditure. Conditions of Tranche Release (a) the Borrower shall have eliminated all import prohibi- tions for protective purposes in a manner acceptable to the Guidelines. Procurement Administrator; (b) the Borrower shall have simplified and reformed the import tariff system in a manner acceptable to the Administrator; (c) the Borrower shall have taken all necessary measures to reduce the number of goods for which profit margins are controlled by the Borrower from 16 to 8; (d) the Borrower shall have completed rehabilitation plans for ten public enterprises; such plans to be acceptable to the Administrator; (e) the Borrower shall have prepared portfolio rehabilita- tion plans for BNI, BTM and BFV, acceptable to the Administrator; (f) the Borrower shall have furnished the Administrator with a public investment program for 1988, acceptable to the Administrator; and (g) all goods conditions precedent to the effectiveness of the OECF Loan Agreement and works shall be undertaken in accordance with such procurement plan as the Japanese Grant Agreement shall have been approved by the Bank, and with the provisions of said paragraph 1fulfilled. 2. Prior Review With respect to: The Borrower shall have: (a) adopted a four-year program of tariff reform, acceptable to the first two contracts under Parts C.1 Association, to reduce the average level and C.2 hereof; and dispersion of import tariffs; (b) each contract under Parts B implemented rules and C.3 hereofprocedures, the procedures set forth in paragraphs 2 and 3 of Appendix 1 acceptable to the Guidelines shall apply.Administrator, to be applied by its central bank in supervising the banking sector; (c) implemented the portfolio restructuring plan for BNI, BTM and BFV; (d) introduced an open general licensing system acceptable to the Administrator; and (e) taken all necessary measures to eliminate all restric- tions on profit margins. Special Account B 1. For the purposes of this Schedule:

Notification and Advertising. The international community should be notified in a timely manner of the opportunity to bid. This will be done by advertising invitations to apply for inclusion in a bidder’s invitation list, to prequalify apply for prequalification, or to bid; such advertisements should be placed in at least one newspaper of general circulation in the Borrower’s country and, in addition, in at least one of the following forms: (i) a notice in the United Nations publication, Development Forum, Business Edition; or (ii) an advertisement in a newspaper, periodical or technical journal of wide international cir- culation; or (iii) a notice to local representatives of countries and territories referred to in the Guidelines, that are potential suppliers of the goods and services required." (b) The following is added at the end of paragraph 2.21 of the Guidelines: "As a further alternative, bidding documents may require the bidder to state the bid for each contract price in a single currency widely used in international trade and specified in the bidding documents." (c) Paragraphs 2.55 and 2.56 of the Guidelines are deleted. 2. Goods estimated to cost the equivalent of $10,000,000 equivalent or more shall be advertised in accordance with the procedures applicable 100,000 to large contracts under paragraph 2.8 of the Guidelines. Part C: Other Procurement Procedures 1. International Shopping Office equipment, including telephone exchanges, copiers, fax machines, and microcomputers, estimated to cost more than $50,000, but $300,000 equivalent or less 1,000,000 per contract, may shall be procured under contracts awarded on the basis of international shopping procedures comparison of price quotations obtained from a list of at least three suppliers from at least three different countries eligible under the Guidelines, in accordance with procedures acceptable to the provisions of paragraphs 3.5 and 3.6 of the GuidelinesBank. 23. National Shopping Telephones, local area networks wiring, library supplies, and office supplies, Goods estimated to cost the equivalent of less than $50,000 equivalent or less 100,000 per contract and $900,000 equivalent or less in the aggregate (which aggregate contract, shall not apply in the case of goods financed under Part E of the Project), may be procured under contracts awarded on the basis of national shopping comparison of price quotations obtained from a list of at least three suppliers eligible under the Guidelines, in accordance with procedures acceptable to the Bank. 4. Services shall be procured in accordance with the provisions of paragraphs 3.5 and 3.6 normal commercial practices of the Guidelines. 3. Procurement Beneficiaries, at a reasonable price, account being taken also of Small Works Eligible works estimated not to exceed $75,000 equivalent per contract, and not to exceed $600,000 in other relevant factors such as the aggregate, shall be procured and awarded on the basis of quotations obtained from three qualified domestic contractors in response to a written invitation. The invitation shall include a detailed description quality of the works, including basic specifications, services and the required completion date, a basic form competence of agreement acceptable to the Bank, and relevant drawings, where applicable. The award shall be made to the contractor who offers the lowest price quotation for the required work, and who has the experience and resources to successfully complete the contractparties rendering them. Part DB: Review by the Bank of Procurement Decisions 1. Procurement Planning Prior to the issuance Review of any invitations to prequalify for bidding or to bid for and of proposed awards and final contracts, the proposed procurement plan for the Project shall be furnished to the Bank for its review and approval, in accordance with the provisions of paragraph 1 of Appendix 1 to the Guidelines. Procurement of all goods and works shall be undertaken in accordance with such procurement plan as shall have been approved by the Bank, and with the provisions of said paragraph 1.: 2. Prior Review With respect to: (a) the first two contracts under Parts C.1 and C.2 hereof; and (b) With respect to each contract under Parts B and C.3 hereoffor goods estimated to cost the equivalent of $1,000,000 or more, the procedures set forth in paragraphs 2 and 3 4 of Appendix 1 to the Guidelines shall apply. Where payments for such contract are to be made out of the Special Account, such procedures shall be modified to ensure that the two conformed copies of the contract required to be furnished to the Bank pursuant to said paragraph 2 (d) shall be furnished to the Bank prior to the making of the first payment out of the Special Account in respect of such contract. (b) With respect to each contract not governed by the preceding paragraph, the procedures set forth in paragraphs 3 and 4 of Appendix 1 to the Guidelines shall apply. Where payments for such contract are to be made out of the Special Account, said procedures shall be modified to ensure that the two conformed copies of the contract together with the other information required to be furnished to the Bank pursuant to said paragraph 3 shall be furnished to the Bank as part of the evidence to be furnished pursuant to paragraph 4 of Schedule 6 to this Agreement. (c) The provisions of the preceding subparagraph (b) shall not apply to contracts on account of which withdrawals are to be made on the basis of statements of expenditure. 2. The figure of 15% is hereby specified for purposes of paragraph 4 of Appendix 1 to the Guidelines. Special Account 1. For the purposes of this Schedule:

Notification and Advertising. The international community should be notified in a timely manner of the opportunity to bid. This will be done by advertising invitations to apply for inclusion in a bidder's invitation list, to prequalify apply for prequalification, or to bid; such advertisements should be placed in at least one newspaper of general circulation in the Borrower's country and, in addition, in at least one of the following forms: (i) a notice in the United Nations publication, Development Business; or (ii) an advertisement in a newspaper, periodical or technical journal of wide international circula- tion; or (iii) a notice to local representatives of countries and territories referred to in the Guidelines, that are potential suppliers of the goods required." (b) The following is added at the end of paragraph 2.21 of the Guidelines: "As a further alternative, bidding documents may require the bidder to state the bid price in a single currency widely used in international trade and specified in the bidding documents." (c) Paragraphs 2.55 and 2.56 of the Guidelines are deleted. 2. Contracts for each contract the procurement of goods estimated to cost the equivalent of less than $10,000,000 equivalent or more 5,000,000 shall be advertised awarded: (a) by purchasers required to follow the Borrower’s public procurement procedures for the importation of goods, on the basis of such procedures, provided that such procedures shall have been found acceptable by the Bank; and (b) by other purchasers, in accordance with the procedures applicable to large established commercial practice, provided that such contracts under paragraph 2.8 of the Guidelines. Part C: Other Procurement Procedures 1. International Shopping Office equipment, including telephone exchanges, copiers, fax machines, and microcomputers, estimated to cost more than $50,000, but $300,000 equivalent or less per contract, may shall be procured under contracts awarded on the basis of international shopping evaluation and comparison of quotations obtained from suppliers from at least two countries, except that direct contracting procedures in accordance with acceptable to the provisions of paragraphs 3.5 and 3.6 of the Guidelines. 2. National Shopping Telephones, local area networks wiring, library supplies, and office supplies, estimated to cost $50,000 equivalent or less per contract and $900,000 equivalent or less in the aggregate (which aggregate shall not apply in the case of goods financed under Part E of the Project), Bank may be procured used where considered appropriate under contracts awarded on the basis of national shopping procedures in accordance with the provisions of paragraphs paragraph 3.5 and 3.6 of the Guidelines. 3. Procurement Subject to the prior approval of Small Works Eligible works estimated not to exceed $75,000 equivalent per contractthe Bank, and not to exceed $600,000 in the aggregate, shall commonly traded commodities may be procured and awarded on the basis through organized international commodity markets or other channels of quotations obtained from three qualified domestic contractors in response to a written invitation. The invitation shall include a detailed description of the works, including basic specifications, the required completion date, a basic form of agreement competitive procurement acceptable to the Bank, and relevant drawings, where applicable. The award shall be made in accordance with procedures acceptable to the contractor who offers Bank. 4. With respect to each contract referred to in paragraph 1 of this Schedule, the lowest price quotation for Borrower shall furnish to the required workBank, and who has prior to the experience and resources submission to successfully complete the contract. Part D: Review by the Bank of Procurement Decisions 1the first application for withdrawal of funds from the Loan Account in respect of such contract, two conformed copies of such contract, together with the analysis of the respective bids and recommendations for award, a description of the advertising and tendering procedures followed and such other information as the Bank shall reasonably request. Procurement Planning Prior Where payments under a contract are to be made out of the proceeds of the Special Account, such copies together with the other information required to be furnished to the issuance of any invitations Bank pursuant to prequalify for bidding or to bid for contracts, the proposed procurement plan for the Project this paragraph shall be furnished to the Bank as part of the evidence required under paragraph 4 of Schedule 5 to this Agreement. 5. With respect to each contract referred to in paragraphs 2 and 3 of this Schedule, the Borrower shall furnish to the Bank, prior to the submission to the Bank of the first application for withdrawal of funds from the Loan Account in respect thereof, such documentation and information as the Bank may reasonably request to support withdrawal applications in respect of such contract. Where payments under a contract are to be made out of the proceeds of the Special Account, the documentation and the information to be i h d to the Bank pursuant to as part of the evidence required under paragraph 4 of Schedule 5 to this Agreement. 6. The provisions of the preceding paragraph 5 of this Schedule shall not apply to contracts on account of which withdrawals from the Loan Account are to be made on the basis of statements of expenditure. ˇ SCHEDULE 4 Actions Referred to in Paragraph 4 (c) of Schedule 1 to this Agreement 1. That the Borrower has introduced in its Parliament a Bill to amend its Sick Industrial Companies Act of 1985 (XXXX), satisfactory to the Bank, providing, inter alia, for the following: (a) improving the criteria for determining sick industries; and (b) strengthening the Board for Industrial and Financial Reconstruction (BIFR) created under XXXX and improving and stream- lining its functions and procedures. 2. That the Borrower has specified, in respect of its National Renewal Fund established for the purpose of financing unemployment insurance and redeployment and retraining for public and private workers, all relevant details including, inter alia, its objectives, scope, structure, operations, sources and methods of funding, criteria and mechanisms for providing support to workers and, nature and amount of such support. 3. That the Borrower has issued guidelines under its Industries (Development and Regulations) Act 1951, as amended, clarifying that industrial licensing decisions in respect of projects and facilities located within less than 25 kms of cities of over one million population will be based solely on environmental, safety, land-use, congestion, urban planning, and other related considerations. 4. That the Borrower has adopted a plan of action, including a timetable for implementing such plan, satisfactory to the Bank, to deregulate and decontrol the steel industry, such plan to provide, inter alia, for the removal of price and distribution controls. 5. That the Borrower has: (a) completed a review of the relevant laws and approvalregulations governing labor relations and transfer of land, the role of state and local governments in industrial restructuring, and the proce- dures for liquidation under the Borrower's Companies Act of 1956, as (b) based on the recommendations of such review, formulated a policy, including a timetable for implementing such policy, satisfactory to the Bank, to facilitate the process of adjustment by industrial firms, including rehabilitation, winding up and liquidation, taking into account the need for adequate safeguards for workers, including programs for redeployment, retraining, and appropriate compensation where necessary; and (c) begun the implementation of such policy in accordance with such timetable. 6. That the Borrower has adopted appropriate measures, as may be required or necessary, in order to provide automatic approval for the import of capital goods in projects requiring such imports, where the CIF value of such imported capital goods is less than 50% of the total value of plant and equipment (net of taxes) required for such project and does not exceed Rs. 100 million. 7. That the Borrower has adopted appropriate measures, as may be required or necessary, to abolish the following restrictions imposed by its Reserve Bank since October 25, 1990: (a) cash margins requirement for imports; (b) the requirement that capital goods are importable only with foreign financing; and (c) the preferential queuing system for approval of letters of credit. 8. That the Borrower has adopted appropriate measures, as may be required or necessary: (a) to implement a program, satisfactory to the Bank, to reduce and eliminate the availability of foreign exchange at the official exchange rate to its public sector agencies for importing those products with respect to which imports by the private sector have been permitted solely with the use of Eximscrip; (b) to further reduce the list of products with respect to which its public sector agencies have the exclusive monopoly to import so that private sector imports relating thereto are permitted and such monopoly is retained only for the following products and such other products acceptable to the Bank; petroleum products; fertilizers; oilseeds; cereals; and certain fatty acids and acid oils; and (c) to require its public sector agencies, in respect of the import of products for which private sector importers are required to use Eximscrip, to also use Eximscrip from the date private sector imports are permitted pursuant to clause (b) of this paragraph 8, or to adopt an action plan, satisfactory to the Bank, to reduce and eliminate the availability of foreign exchange at the official exchange rate to its public sector agencies for such imports. 9. That the Borrower has adopted appropriate measures, as may be required or necessary, to permit such intermediate items, except items related to health, environment and security, as set forth in Appendix 2-B (Restricted List) of the Borrower’s Import and Export Policy, 1991-93 (hereinafter "Import and Export Policy") correspond- ing to at least two-thirds of the domestic production of such goods to be freely importable using Eximscrip or using Open General License under Appendix 6 thereinafter "Open General License" of the Import and Export Policy. 10. That the Borrower has adopted appropriate measures, as may be required or necessary, to permit the import of all unlisted capital goods with Eximscrip whether or not such Eximscrip is earned by the exports of the importing firm. 11. That the Borrower has eliminated licensing requirements for imports of such capital goods, except capital goods related to health, environment and security, included in the Capital Goods Restricted List as set forth in Appendix l-A of the Import and Export Policy corresponding to at least 50 percent of the aggregate domestic production of such goods. 12. That the Borrower has abolished the requirement that importers actually use the items imported. 13. That the Borrower has adopted appropriate measures, as may be required or necessary, to abolish the Limited Permissible List as set forth in Appendix 3 to the Import and Export Policy and to revise such Policy so as to permit any item not included in any of the Appendices to be imported with the use of Eximscrip. 14. That the Borrower has adopted appropriate measures, as may be required or necessary, to abolish the preference provided by its Director General of Supplies and Disposals in the procurement of goods to domestic suppliers over the duty paid price of imports. 15. That the Borrower has removed export licensing, canalization and minimum export price requirements for all products except those included in a negative list, satisfactory to the Bank, with respect to which such requirements are retained. 16. That the Borrower has completed a review to reform the customs tariffs and, based on the recommendations of such review, has: (a) adopted a medium-term plan of action, including a timetable for implementing such plan, satisfactory to the Bank, in order to simplify the structure of tariff rates so as to substantially reduce their variability and the incidence of exemptions and partial exemptions, minimize the use of specific tariffs, and substantially reduce the average and maximum levels of tariffs; and (b) reduced the maximum level of customs tariffs to a level satisfactory to the Bank. 17. That the Borrower has: (a) adopted a plan of action, including a timetable for implementing such plan within a period of three years from the date of such adoption, satisfactory to the Bank, in order to: (i) eliminate budgetary transfers and loans to central public enterprises deemed to be sick under criteria set forth in XXXX, as such criteria may be amended; (ii) eliminate budgetary plan support through loans and equity for public enterprise investments except in the energy, transport and other infrastructure sectors; and (iii) limit government guarantees of central public enterprise borrowings to those enterprises engaging in essential infrastructure, exploitation of oil and mineral reserves, and strategic activities; and (b) begun the implementation of such plan in accordance with such timetable. 18. That the Borrower has: (a) adopted a plan of action, including a timetable for implementing such plan, satisfactory to the Bank, in order to initiate the closure or winding up of unviable central public enterprises in accordance with existing procedures; and (b) taken all necessary steps, satisfactory to the Bank, in order to require central public enterprises deemed to be sick under criteria set forth in XXXX, as such criteria may be amended, to be referred to BIFR for assessment of their prospects and subsequent rehabilita- tion or winding up and that all such enterprises meeting such criteria have been referred to BIFR and the procedures for such assessment have been initiated, except in respect of those enter- prises for which closure and winding up proceedings have already begun prior to requiring such enterprises to be referred to BIFR. 19. That the Borrower has completed the divestment of at least 20% of the equity of selected central public enterprises satisfactory to the Bank so as to yield a sum of at least Rs. 25 billion. 20. That the Borrower has adopted a plan of action, including a timetable for implementing such plan within a period of three years from the date of such adoption, satisfactory to the Bank, to increase the private equity share in profitable central public enterprises to at least 49 per cent, including preparation of a list of such enterprises. 21. That the Borrower has adopted measures, satisfactory to the Bank, to gradually reduce the Statutory Liquidity Ratio required to be maintained by Scheduled Commercial Banks, in a manner consistent with the reduction of the Borrower’s fiscal deficit, such measures to be implemented beginning in April 1992. 22. That the Borrower has completed a review to reform the financial system and, based on the recommendations of such review, has adopted a plan of action, including a timetable satisfactory to the Bank, to gradually reduce and eliminate interest rate subsidies in direct credit schemes, such plan to be implemented beginning in April 1992. 23. That the Borrower has introduced in its Parliament appropriate legislation, satisfactory to the Bank, to confer on the Stock Exchange Board of India statutory powers to operate as an indepen- dent regulatory body, including power to investigate with due diligence. 24. That the Borrower has adopted a plan of action, including a timetable for implementation, satisfactory to the Bank, to reform the trading mechanism of stock exchanges, including a system of national clearing and settlement and setting up a central depository trust.ˇ25. That the Borrower has adopted a plan of action, including a timetable for implementation, satisfactory to the Bank, for setting up of mutual funds in the private sector, and has begun the implementation of such plan in accordance with such timetable. ˇ SCHEDULE 5 Special Account 1. For the purposes of this Schedule: (a) the term "eligible expenditures" means expenditures in respect of the reasonable cost of goods required during the execution of the Program and to be financed out of the proceeds of the Loan in accordance with the provisions of paragraph 1 of Appendix Schedule 1 to the Guidelines. Procurement of all goods and works shall be undertaken in accordance with such procurement plan as shall have been approved by the Bank, and with the provisions of said paragraph 1. 2. Prior Review With respect to: (a) the first two contracts under Parts C.1 and C.2 hereofthis Agreement; and (b) each contract under Parts B and C.3 hereof, the procedures set forth in paragraphs 2 and 3 of Appendix 1 to the Guidelines shall apply.and

Notification and Advertising. The international community should be notified in a timely manner of the opportunity to bid. This will be done by advertising invitations to apply for inclusion in a bidder’s invitation list, to prequalify apply for prequalification, or bid for each contract estimated to cost $10,000,000 equivalent bid; such advertisements should be placed in at least one newspaper of general circulation in the Borrower’s country and, in addition, in at least one of the following forms: (i) a notice in the United Nations publication, Development Forum, Business Edition; or (ii) an advertisement in a newspaper, periodical or more shall be advertised technical journal of wide international circulation; or (iii) a notice to local representatives of countries and territories referred to in accordance with the procedures applicable to large contracts under Guidelines, that are potential suppliers of the goods required." (b) The following is added at the end of paragraph 2.8 2.21 of the Guidelines. Part C: Other Procurement Procedures"As a further alternative, bidding documents may require the bidder to state the bid price in a single currency widely used in international trade and specified in the bidding documents." 1. International Shopping Office equipment, including telephone exchanges, copiers, fax machines, (c) Paragraphs 2.55 and microcomputers, estimated to cost more than $50,000, but $300,000 equivalent or less per contract, may be procured under contracts awarded on the basis of international shopping procedures in accordance with the provisions of paragraphs 3.5 and 3.6 2.56 of the GuidelinesGuidelines are deleted. 2. National Shopping TelephonesWith respect to each contract referred to in paragraph 1 of this Section, local area networks wiringthe Borrower shall furnish to the Association, library supplies, and office supplies, estimated prior to cost $50,000 equivalent or less per contract and $900,000 equivalent or less in the aggregate (which aggregate shall not apply in submission to the case of goods financed under Part E Association of the Project)first application for withdrawal of funds from the Credit Account in respect of such contract, may be procured under contracts awarded on the basis two conformed copies of national shopping procedures in accordance such contract, together with the provisions of paragraphs 3.5 and 3.6 analysis of the Guidelines. 3. Procurement of Small Works Eligible works estimated not to exceed $75,000 equivalent per contractrespective bids and recommendations for award, and not to exceed $600,000 in the aggregate, shall be procured and awarded on the basis of quotations obtained from three qualified domestic contractors in response to a written invitation. The invitation shall include a detailed description of the works, including basic specifications, advertising and tendering procedures followed and such other information as the required completion date, a basic form Association shall reasonably request. Conditions for Release of agreement acceptable to the Bank, and relevant drawings, where applicable. The award shall be made to the contractor who offers the lowest price quotation for the required work, and who has the experience and resources to successfully complete the contract. Part D: Review by the Bank of Procurement Decisions 1. Procurement Planning Prior to the issuance of any invitations to prequalify for bidding or to bid for contracts, the proposed procurement plan for the Project shall be furnished to the Bank for its review and approval, in accordance with the provisions Sector Import Financing (Category (8) of paragraph 1 of Appendix Schedule 1 to the Guidelines. Procurement of all goods and works this Agreement) The following actions shall be undertaken in accordance with such procurement plan as shall have been approved by the Bank, and taken consistent with the provisions principles outlined in the Program and in a manner satisfactory to the Association: Part A: Actions Referred to in Paragraph 4 (a) of said paragraph Schedule 1 to this Agreement (Conditions for Release of Second Tranche) 1. The Borrower has: (a) kept MEN’s recurrent budget at not less than 25 percent of the Borrower’s recurrent budget; (b) increased the share of Cycle I financing in MEN’s recurrent budget to not less than 40 percent; (c) kept the share of higher education financing in MEN’s recurrent budget to not more than 19 percent; (d) increased the share of materials in MEN’s recurrent budget to not less than eight percent; and (e) reduced the aggregate amount attributed to higher education scholarships by at least ten percent of the amount of the previous school year. 2. Prior Review With respect toThe Borrower has: (a) prepared a study on MEN’s personnel policies and procedures, including proposals to reduce the first two contracts under Parts C.1 number of Cycle II and C.2 hereofsecondary teachers and to establish appropriate levels of recruitment for Cycle I and Cycle II teachers; and (b) each contract under Parts B reviewed with the Association the recommendations contained therein. 3. The Borrower has modified its Decision No. 346 of March 23, 1986, and C.3 hereofits Arrete No. 5728 of June 6, 1986, by providing that Cycle I teachers shall be: (a) recruited among upper secondary education graduates; and (b) trained, in accordance with a curriculum acceptable to the procedures set forth Association, for not more than two years. 4. The Borrower has adopted a staffing plan for teachers insuring a student-teacher ratio of at least 35 to 1 for Cycle I; 18 to 1 for Cycle II; and 10 to I for secondary education. 5. The Borrower has submitted a plan satisfactory to the Association for the utilization of existing facilities of training colleges for cycle II teachers. 6. The Borrower has submitted a plan satisfactory to the Association for restructuring its secondary general, technical and vocational, and higher education system. Part B: Actions Referred to in paragraphs 2 and 3 Paragraph 4 (b) of Appendix Schedule 1 to this Agreement (conditions for Release of Third Tranche) 1. The Borrower has: (a) kept MEN’s recurrent budget at not less than 25 percent of the Guidelines shall applyBorrower’s recurrent budget; (b) increased the share of Cycle I financing in MEN’s recurrent budget to not less than 42 percent; (c) kept the share of higher education financing in MEN’s recurrent budget to not more than 19 percent; (d) increased the share of materials in MEN’s recurrent budget to not less than nine percent; and (e) reduced the aggregate amount attributed to higher education scholarships by at least five percent of the amount of the previous school year. 2. Satisfactory progress has been made in implementing the action plan referred to in Part A.6 of this Schedule. 3. A student-teacher ratio of at least 36 to 1 for Cycle I; 20 to 1 for Cycle II; and 12 to 1 for secondary education has been reached under the staffing plan referred to in Part A.4 of this Schedule. 4. The Borrower has submitted a plan for the revision of Cycle I curricula satisfactory to the Association. 5. The Borrower has implemented the recommendations of the study provided for in Part A.2 (a) of this Schedule, reviewed in accordance with Part A.2 (b) of this Schedule and satisfactory to the Association. 1. For the purposes of this Schedule:

Notification and Advertising. The invitation international community should be notified in a timely manner of the opportunity to prequalify bid. This will be done by advertising invitations to apply for inclusion in a bidder’s Invitation list, to apply for prequalification, or to bid; such advertisements should be placed in at least one newspaper of general circulation in the Borrower’s country and, in addition, in at least one of the following forms: (i) a notice in the United Nations publication, Development Forum, Business Edition; or (ii) an advertisement in a newspaper, periodical or technical journal of wide international circulation; or (iii) a notice to local representatives of countries and territories referred to in the Guidelines, that are potential suppliers of the goods required." (b) The following is added at the end of paragraph 2.21 of the Guidelines: "As a further alternative, bidding documents may require The bidder to state the bid price in a single currency widely used in international trade and specified in the bidding documents." (c) Paragraphs 2.55 and 2.56 of the Guidelines are deleted. 2. Contracts for each contract the procurement of goods estimated to cost the equivalent of less than five million dollars ($10,000,000 equivalent or more 5,000,000) shall be advertised awarded: (a) By purchasers required to follow the Borrower’s public procurement procedures for the importation of goods, on the basis of such procedures, provided that such procedures shall have been found acceptable by the Bank; (b) By other purchasers, in accordance with the procedures applicable to large established commercial practice, provided that such contracts under paragraph 2.8 of the Guidelines. Part C: Other Procurement Procedures 1. International Shopping Office equipment, including telephone exchanges, copiers, fax machines, and microcomputers, estimated to cost more than $50,000, but $300,000 equivalent or less per contract, may shall be procured under contracts awarded on the basis of international shopping evaluation comparison of quotations obtained from suppliers from at least two (2) countries, except that direct contracting procedures in accordance with acceptable to the provisions of paragraphs Bank may be used where considered appropriate under paragraph 3.5 and 3.6 of the Guidelines.; and 2. National Shopping Telephones(c) By any purchasers, local area networks wiringfor the supply of commodities, library supplies, and office supplies, estimated to cost $50,000 equivalent or less per contract and $900,000 equivalent or less in the aggregate (which aggregate shall not apply in the case of goods financed under Part E of the Project), may be procured under contracts awarded on the basis of national shopping procedures in accordance with the provisions evaluation and comparison of paragraphs 3.5 and 3.6 of the Guidelinesquotations obtained from more than one supplier. 3. Procurement With respect to each contract referred to in paragraph 1 of Small Works Eligible works estimated not to exceed $75,000 equivalent per contract, and not to exceed $600,000 in the aggregate, shall be procured and awarded on the basis of quotations obtained from three qualified domestic contractors in response to a written invitation. The invitation shall include a detailed description of the works, including basic specificationsthis Schedule, the required completion date, a basic form of agreement acceptable Borrower shall furnish to the Bank, and relevant drawings, where applicable. The award shall be made prior to the contractor who offers the lowest price quotation for the required work, and who has the experience and resources submission to successfully complete the contract. Part D: Review by the Bank of Procurement Decisions 1the first application for withdrawal of funds from the Loan Account in respect of such contract, two (2) conformed copies of such contract, together with the analysis of the respective bids and recommendations for award, a description of the advertising and tendering procedures followed and such other information as the Bank shall reasonably request. Procurement Planning Prior Where payments under a contract are to be made out of the proceeds of the Special Account, such copies together with the other information required to be furnished to the issuance of any invitations Bank pursuant to prequalify for bidding or to bid for contracts, the proposed procurement plan for the Project this paragraph shall be furnished to the Bank as part of the evidence required under paragraph 4 of Schedule 5 to this Agreement. 4. With respect to each contract referred to in paragraph 2 of this Schedule, the Borrower shall furnish to the Bank, prior to the submission to the Bank of the first application for its review withdrawal of funds from the Loan Account in respect thereof, such documentation and approvalinformation as the Bank may reasonably request to support withdrawal applications in respect of such contract. Where payments under a contract are to be made out of the proceeds of the Special Account, in accordance with the documentation and the information to be furnished to the Bank pursuant to the provisions of this paragraph 1 of Appendix 1 shall be furnished to the GuidelinesBank as part of the evidence required under paragraph 4 of Schedule 5 to this Agreement. 5. Procurement The provisions of the preceding paragraph 4 of this Schedule shall not apply to contracts on account of which the Bank has authorized withdrawals from the Loan Account on the basis of statements of expenditure. A. Public Enterprise Sector 1. The Borrower has issued and published in its Official Journal a decree, and related schedules, providing for the transfer of all goods and works shall be undertaken remaining products heretofore subject to ceilings on margins to the category of those products whose prices are freely determined by their producers (declared prices), except for twelve (12) categories of products previously specified in accordance agreement with such procurement plan as shall have been approved by the Bank, and with the provisions of said paragraph 1. 2. Prior Review With Based on the recommendations of the Diagnostic Studies, and in respect toof at least fifteen (15) of the Non-Autonomous Public Enterprises: (a) The Borrower shall carry out, or cause to be carried out, a set of measures for the immediate reduction of all deficits incurred by said enterprises; (b) In respect of each of said enterprises which the Borrower will not have decided to convert into an Economic Public Enterprise by December 31, 1991, the Borrower shall fix the maximum increase in their individual wage bill for Fiscal Year 1992, and shall ensure that the Central Bank sets an overall credit ceiling for such Fiscal Year, which ceiling shall promptly thereafter be allocated among said enterprises by the commercial banks operating within the Borrower’s territory; and (c) In respect of said enterprises requiring detailed restructuring studies, the Borrower shall submit to the Bank an action plan, acceptable to the Bank, which plan shall include, inter alia: (i) the terms of reference and the timetable for the execution of said restructuring studies; and (ii) a program for the implementation of measures for the progressive elimination of deficits caused by said enterprises’ activities which are deemed irremediable loss-makers. 3. The Borrower has taken any and all action necessary to cause the general assembly of the Participation Funds to ensure that each of said funds: (a) issues an operational report covering the first two contracts under Parts C.1 respective Participation Fund’s activities during the Fiscal Year 1991, which report shall include, inter alia, a review of the progress achieved by said Fund during such Fiscal Year in evaluating its asset portfolio and C.2 hereofthe financial objectives to be achieved by said Fund during the Fiscal Year 1992; and (b) each contract under Parts B and C.3 hereof, the procedures set forth in paragraphs 2 and 3 of Appendix 1 to the Guidelines shall apply.and

Notification and Advertising. The international community should be notified in a timely manner of the opportunity to bid. This will be done by advertising invitations to apply for inclusion in a bidder’s invitation list, to prequalify apply for prequalification, or to bid; such advertisements should be placed in at least one newspaper of general circulation in the Borrower’s country and, in addition, in at least one of the following forms: (i) a notice in the United Nations publication, Development Forum, Business Edition; or (ii) an advertisement in a newspaper, periodical or technical journal of wide international circulation; or (iii) a notice to local representatives of countries and territories referred to in the Guidelines, that are potential suppliers of the goods required." (b) The following is added at the end of paragraph 2.21 of the Guidelines: "As a further alternative, bidding documents may require the bidder to state the bid price in a single currency widely used in international trade and specified in the bidding documents." (c) Paragraphs 2.55 and 2.56 of the Guidelines are deleted 2. Contracts for each contract the procurement of goods estimated to cost the equivalent of less than $10,000,000 equivalent or more 500,000 shall be advertised awarded: (a) by purchasers required to follow Borrower’s public procurement procedures for the importation of goods, on the basis of such procedures, provided that such procedures shall have been found acceptable by the Association; (b) by other purchasers, in accordance with the procedures applicable to large established com- mercial practice, provided that such contracts under paragraph 2.8 of the Guidelines. Part C: Other Procurement Procedures 1. International Shopping Office equipment, including telephone exchanges, copiers, fax machines, and microcomputers, estimated to cost more than $50,000, but $300,000 equivalent or less per contract, may shall be procured under contracts awarded on the basis of international shopping evaluation and comparison of quotations obtained from suppliers from at least two countries, except that direct contracting procedures in accordance with acceptable to the provisions of paragraphs Association may be used where considered appropriate under paragraph 3.5 and 3.6 of the Guidelines.Guide- lines; and 2. National Shopping Telephones(c) by any purchasers, local area networks wiringfor the supply of commodities, library supplies, and office supplies, estimated to cost $50,000 equivalent or less per contract and $900,000 equivalent or less in the aggregate (which aggregate shall not apply in the case of goods financed under Part E of the Project), may be procured under contracts awarded on the basis of national shopping procedures in accordance with the provisions evaluation and comparison of paragraphs 3.5 and 3.6 of the Guidelinesquotations obtained from more than one supplier. 3. Procurement With respect to each contract referred to in paragraph 1 of Small Works Eligible works estimated not this Schedule, the Borrower shall furnish to exceed $75,000 equivalent per the Association, prior to the submission to the Association of the first application for withdrawal of funds from the Credit Account in respect of such contract, two conformed copies of such contract, together with the analysis of the respective bids and not to exceed $600,000 in the aggregaterecommendations for award, shall be procured and awarded on the basis of quotations obtained from three qualified domestic contractors in response to a written invitation. The invitation shall include a detailed description of the worksadvertising and tendering procedures followed and such other information as the Association shall reasonably request. Where payments under a contract are to be made out of the proceeds of the Special Account, including basic specifications, such copies together with the oth er information required completion date, a basic form of agreement acceptable to be furnished to the Bank, and relevant drawings, where applicable. The award shall be made Association pursuant to the contractor who offers the lowest price quotation for the required work, and who has the experience and resources to successfully complete the contract. Part D: Review by the Bank of Procurement Decisions 1. Procurement Planning Prior to the issuance of any invitations to prequalify for bidding or to bid for contracts, the proposed procurement plan for the Project this paragraph shall be furnished to the Bank Association as part of the evidence required under paragraph 4 of Schedule 4 to this Agreement. 4. With respect to each contract referred to in paragraph 2 of this Schedule, the Borrower shall furnish to the Association, prior to the submission to the Association of the first application for its review withdrawal of funds from the Credit Account in respect thereof, such documentation and approvalinformation as the Association may reasonably request to support withdrawal applications in respect of such contract. Where payments under a contract are to be made out of the proceeds of the Special Account, in accordance with the documentation and the information to be furnished to the Association pursuant to the provisions of this paragraph 1 shall be furnished to the Association as part of Appendix the evidence required under paragraph 4 of Schedule 4 to this Agreement. 5. The provisions of the preceding paragraph 4 of this Schedule shall not apply to contracts on account of which the Association has authorized withdrawals from the Credit Account on the basis of statements of expenditures. The following actions have been taken consistent with the principles outlined in the Program and are satisfactory to the Association: Part A: Actions Referred to in Paragraph 4 (a) (iii) of Schedule 1 to this Agreement (Conditions for Release of Second Tranche) 1. The revised PIP for the Guidelines. Procurement of all goods years 1991 to 1993 has been submitted and works shall be undertaken in accordance with such procurement plan as shall have been approved by is satisfactory to the Bank, and with the provisions of said paragraph 1Association. 2. Prior Review With respect toThe PIP for the years 1990 to 1992 has been satisfactorily implemented so far. 3. Liberalization of trade and prices and improvement of incentives for production and export, including: (a) introduction of an automatic import licensing system satisfactory to the first two contracts under Parts C.1 Association; (b) elimination of all price controls, including profit margin controls, on beans, cooking oil and C.2 hereofsugar; (c) elimination of restrictions on export and import of consumption goods including beans, cooking oil, sugar, rice, wheat flour and milk; (d) reduction in the rate of cocoa export taxes to at least 16 percent; and (e) adoption of an action plan to streamline and improve the cocoa quality and marketing process. 4. A land distribution program, including: (a) enactment of appropriate legislation; (b) each contract under Parts B and C.3 hereof, the procedures set forth in paragraphs 2 and 3 enactment of Appendix 1 to the Guidelines shall apply.regulations thereto; and

Notification and Advertising. The international community should be notified in a timely manner of the opportunity to bid. This will be done by advertising invitations to apply for inclusion in a bidder’s invitation list, to prequalify apply for prequalification, or to bid; such advertisements should be placed in at least one news- paper of general circulation in the Borrower’s country and, in addition, in at least one of the following forms: (i) a notice in the United Nations publication, Development Forum, Business Edition; or (ii) an advertisement in a newspaper, periodical or technical journal of wide international circula- tion; or (iii) a notice to local representatives of countries and territories referred to in the Guidelines that are potential suppliers of the goods required." (b) The following is added at the end of paragraph 2.21 of the Guidelines: "As a further alternative, bidding documents may require the bidder to state the bid price in a single currency widely used in international trade and specified in the bidding documents." (c) Paragraphs 2.55 and 2.56 of the Guidelines are deleted. 2. Contracts for each contract goods estimated to cost the equivalent of less than $10,000,000 equivalent or more 2,000,000 each and for proprietary spare parts shall be advertised in accordance with the procedures applicable to large contracts under paragraph 2.8 of the Guidelines. Part C: Other Procurement Procedures 1. International Shopping Office equipment, including telephone exchanges, copiers, fax machines, and microcomputers, estimated to cost more than $50,000, but $300,000 equivalent or less per contract, may be procured under contracts awarded on the basis of international shopping the normal procurement procedures of the purchaser of such goods. 3. With respect to each contract referred to in accordance paragraph 1 of this Schedule, the Borrower shall furnish to the Association, prior to the submission to the Association of the first applica- tion for withdrawal of funds from the Credit Account in respect of such contract, two conformed copies of such contract, together with the analysis of the respective bids and recommendations for award, a description of the advertising and tendering procedures followed and such other information as the Association shall reasonably request. 4. With respect to each contract referred to in paragraph 2 of this Schedule, the Borrower shall furnish to the Association, prior to the submission to the Association of the first applica- tion for withdrawal of funds from the Credit Account in respect thereof, such documentation and information as the Association may reasonably request to support withdrawal applications in respect of such contract. 5. Notwithstanding the provisions of paragraphs 3.5 3 and 3.6 4 of this Schedule, where payments under a contract are to be made out of the Guidelines. 2. National Shopping Telephonesproceeds of Special Account A, local area networks wiring, library supplies, the copies of such contract or the documentation and office supplies, estimated the information to cost $50,000 equivalent or less per contract and $900,000 equivalent or less in be furnished to the aggregate (which aggregate shall not apply in the case of goods financed under Part E of the Project), may be procured under contracts awarded on the basis of national shopping procedures in accordance with Association pursuant to the provisions of paragraphs 3.5 and 3.6 paragraph 3 or paragraph 4 of this Schedule, as the Guidelines. 3. Procurement of Small Works Eligible works estimated not to exceed $75,000 equivalent per contractcase may be, and not to exceed $600,000 in the aggregate, shall be procured and awarded on the basis of quotations obtained from three qualified domestic contractors in response to a written invitation. The invitation shall include a detailed description of the works, including basic specifications, the required completion date, a basic form of agreement acceptable to the Bank, and relevant drawings, where applicable. The award shall be made to the contractor who offers the lowest price quotation for the required work, and who has the experience and resources to successfully complete the contract. Part D: Review by the Bank of Procurement Decisions 1. Procurement Planning Prior to the issuance of any invitations to prequalify for bidding or to bid for contracts, the proposed procurement plan for the Project shall be furnished to the Bank Association as part of the evidence required under paragraph 4 of Schedule 4 to this Agreement. 6. The provisions of the preceding paragraphs 3, 4 and 5 shall not apply to contracts on account of which the Association has authorized withdrawals from the Credit Account on the basis of statements of expenditure. Conditions of Tranche Release (a) the Borrower shall have eliminated all import prohibitions, for its review and approvalprotective purposes, in accordance with the provisions of paragraph 1 of Appendix 1 a manner acceptable to the Guidelines. Procurement Association; (b) the Borrower shall have simplified and reformed the import tariff system in a manner acceptable to the Association; (c) the Borrower shall have taken all necessary measures to reduce the number of goods for which profit margins are controlled by the Borrower from 16 to 8; (d) the Borrower shall have completed rehabilitation plans for ten public enterprises; such plans to be acceptable to the Association; (e) the Borrower shall have prepared portfolio rehabilita- tion plans for BNI, BTM and BFV acceptable to the Association; (f) the Borrower shall have furnished the Association with a public investment program for 1988, acceptable to the Association; and (g) all goods conditions precedent to the effectiveness of the OECF Loan Agreement and works shall be undertaken in accordance with such procurement plan as the Japanese Grant Agreement shall have been approved by the Bank, and with the provisions of said paragraph 1fulfilled. 2. Prior Review With respect to: The Borrower shall have: (a) adopted a four-year program of tariff reform, acceptable to the first two contracts under Parts C.1 Association, to reduce the average level and C.2 hereof; and dispersion of import tariffs; (b) each contract under Parts B implemented rules and C.3 hereofprocedures, the procedures set forth in paragraphs 2 and 3 of Appendix 1 acceptable to the Guidelines shall apply.Association, to be applied by its central bank in super- vising the banking sector; (c) implemented the portfolio restructuring plan for BNI, BTM and BFV; (d) introduced an open general licensing system acceptable to the Association; and (e) taken all necessary measures to eliminate all restric- tions on profit margins. Special Account A 1. For the purposes of this Schedule:

Notification and Advertising. The international community should be notified in a timely manner of the opportunity to bid. This will be done by advertising invitations to apply for inclusion in a bidder’s invitation list, to prequalify apply for prequalification, or to bid; such advertisements should be placed in at least one newspaper of general circulation in the Borrower’s country and, in addition, in at least one of the following forms: (i) a notice in the United Nations publication, Deve- lopment Forum, Business Edition; or (ii) an advertisement in a newspaper, periodical or technical journal of wide international circula- tion; or (iii) a notice to local representatives of countries and territories referred to in the Guidelines, that are potential suppliers of the goods required." (b) The following is added at the end of paragraph 2.21 of the Guidelines: "As a further alternative, bidding documents may require the bidder to state the bid price in a single currency widely used in international trade and specified in the bidding documents." (c) Paragraphs 2.55 and 2.56 of the Guidelines are deleted. 2. Contracts for each contract goods estimated to cost the equivalent of less than $10,000,000 equivalent or more 3,500,000 each shall be advertised in accordance with the procedures applicable to large contracts under paragraph 2.8 of the Guidelines. Part C: Other Procurement Procedures 1. International Shopping Office equipment, including telephone exchanges, copiers, fax machines, and microcomputers, estimated to cost more than $50,000, but $300,000 equivalent or less per contract, may be procured under contracts awarded on the basis of international shopping the normal procurement procedures of the purchaser of such goods. 3. With respect to each contract referred to in accordance paragraph 1 of this Schedule, the Borrower shall furnish to the Association, prior to the submission to the Association of the first applica- tion for withdrawal of funds from the Credit Account in respect of such contract, two conformed copies of such contract, together with the analysis of the respective bids and recommendations for award, a description of the advertising and tendering procedures followed and such other information as the Association shall rea- sonably request. 4. With respect to each contract referred to in paragraph 2 of this Schedule, the Borrower shall furnish to the Association, prior to the submission to the Association of the first applica- tion for withdrawal of funds from the Credit Account in respect thereof, such documentation and information as the Association may reasonably request to support withdrawal applications in respect of such contract. 5. Notwithstanding the provisions of paragraphs 3.5 3 and 3.6 4 of this Schedule, where payments under a contract are to be made out of the Guidelines. 2. National Shopping Telephones, local area networks wiring, library supplies, and office supplies, estimated to cost $50,000 equivalent or less per contract and $900,000 equivalent or less in the aggregate (which aggregate shall not apply in the case of goods financed under Part E proceeds of the Project)Special Account, may the copies of such contract or the documentation and the information to be procured under contracts awarded on furnished to the basis of national shopping procedures in accordance with Association pursuant to the provisions of paragraphs 3.5 and 3.6 paragraph 3 or paragraph 4 of this Schedule, as the Guidelines. 3. Procurement of Small Works Eligible works estimated not to exceed $75,000 equivalent per contractcase may be, and not to exceed $600,000 in the aggregate, shall be procured and awarded on the basis of quotations obtained from three qualified domestic contractors in response to a written invitation. The invitation shall include a detailed description of the works, including basic specifications, the required completion date, a basic form of agreement acceptable to the Bank, and relevant drawings, where applicable. The award shall be made to the contractor who offers the lowest price quotation for the required work, and who has the experience and resources to successfully complete the contract. Part D: Review by the Bank of Procurement Decisions 1. Procurement Planning Prior to the issuance of any invitations to prequalify for bidding or to bid for contracts, the proposed procurement plan for the Project shall be furnished to the Bank for its review and approval, in accordance with Association as part of the evidence required under paragraph 4 of Schedule 4 to this Agreement. 6. The provisions of paragraph 1 the preceding paragraphs 3, 4 and 5 shall not apply to contracts on account of Appendix which the Association has authorized withdrawals from the Credit Account on the basis of statements of expenditure. Actions Referred to in Paragraph 3 (b) of Schedule 1 to this Agreement The Borrower has: (i) examined the Guidelines. Procurement impact on domestic industries of all goods unrestricted licensing for Categories B and works shall be undertaken in accordance with such procurement plan as shall have been approved by C of Schedule III of the Bank, import licensing system and with the provisions of said paragraph 1. 2. Prior Review With respect toformulated an action program which: (a) the first two contracts under Parts C.1 and C.2 hereofensures equivalent protection by tariffs only; and (b) each contract under Parts B and C.3 hereof, includes the procedures set forth in paragraphs 2 and 3 drafting of Appendix 1 to the Guidelines shall apply.anti-dumping legislation; and

Notification and Advertising. The international community should be notified in a timely manner of the opportunity to bid. This will be done by advertising invitations to apply for inclusion in a bidder’s invitation list, to prequalify apply for prequalification, or to bid; such advertisements should be placed in at least one newspaper of general circulation in the Borrower’s country and, in addition, in at least one of the following forms: (i) a notice in the United Nations publication, Development Forum, Business Edition; or (ii) an advertisement in a newspaper, periodical or technical journal of wide international circula- tion; or (iii) a notice to local representatives of countries and territories referred to in the Guidelines, that are potential suppliers of the goods re- (b) The following is added at the end of paragraph 2.21 of the Guidelines: "As a further alternative, bidding documents may require the bidder to state the bid for each contract price in a single currency widely used in international trade and specified in the bidding documents." (c) Paragraphs 2.55 and 2.56 of the Guidelines are deleted. 2. Limited International Bidding. Goods estimated to cost the equivalent of $10,000,000 equivalent 500,000 or more shall be advertised in accordance with the procedures applicable to large contracts under paragraph 2.8 of the Guidelines. Part C: Other Procurement Procedures 1. International Shopping Office equipmentmore, including telephone exchanges, copiers, fax machines, and microcomputers, estimated to cost more but less than $50,000, but $300,000 equivalent or less per contract, 1,000,000 may be procured under contracts awarded through limited international bidding procedures on the basis of international shopping procedures evaluation and comparison of bids invited from a list of at least three qualified suppliers eligible under the Guidelines and in accordance with the provisions of paragraphs 3.5 procedures set forth in Sections I and 3.6 II of the GuidelinesGuidelines (excluding paragraphs 2.8, 2.9, 2.55 and 2.56 thereof). 23. National Shopping Telephones, local area networks wiring, library supplies, and office supplies, Contracts for goods to be procured by the Borrower or by private entities estimated to cost the equivalent of less than $50,000 equivalent or less per contract and $900,000 equivalent or less in the aggregate (which aggregate 500,000 each shall not apply in the case of goods financed under Part E of the Project), may be procured under contracts awarded on the basis of national shopping the normal procure- ment procedures of the purchaser of such goods, which shall include, inter alia, that three pro-forma invoices be requested from eligible suppliers from at least two different countries. 4. Direct Contracting. Proprietary items, equipment and spare parts may be awarded after direct negotiations with suppliers, in accordance with procedures acceptable to the Association. 5. With respect to each contract referred to in paragraphs 1 and 2 of this Schedule, the Borrower shall furnish to the Association, prior to the submission to the Association of the first application for withdrawal of funds from the Credit Account and the Swiss Contribution Account in respect of such contract, two conformed copies of such contract, together with the analysis of the respec- tive bids and recommendations for award, a description of the advertising and tendering procedures followed and such other information as the Association shall reasonably request. 6. With respect to each contract referred to in paragraph 3 of this Schedule, the Borrower shall furnish to the Association, prior to the submission to the Association of the first application for withdrawal of funds from the Credit Account and the Swiss Contribu- tion Account in respect thereof, such documentation and information as the Association may reasonably request to support withdrawal applications in respect of such contract. 7. Notwithstanding the provisions of paragraphs 3.5 5 and 3.6 6 of this Schedule, where payments under a contract are to be made out of the Guidelines. 3. Procurement proceeds of Small Works Eligible works estimated not to exceed $75,000 equivalent per contract, and not to exceed $600,000 in the aggregate, shall be procured and awarded on the basis of quotations obtained from three qualified domestic contractors in response to a written invitation. The invitation shall include a detailed description any of the works, including basic specificationsSpecial Accounts, the required completion date, a basic form copies of agreement acceptable such contract or the documentation and the information to be furnished to the Bank, and relevant drawings, where applicable. The award shall be made Association pursuant to the contractor who offers provisions of paragraph 5 or paragraph 6 of this Schedule, as the lowest price quotation for the required workcase may be, and who has the experience and resources to successfully complete the contract. Part D: Review by the Bank of Procurement Decisions 1. Procurement Planning Prior to the issuance of any invitations to prequalify for bidding or to bid for contracts, the proposed procurement plan for the Project shall be furnished to the Bank for its review Association as part of the evidence required under paragraph 4 of Schedule 4 and approvalSchedule 5, in accordance with the respectively, to this Agreement. 8. The provisions of paragraph 1 the preceding paragraphs 5, 6 and 7 shall not apply to contracts on account of Appendix 1 to which the Guidelines. Procurement Association has authorized withdrawals from the Credit Account and the Swiss Contribution Account on the basis of all goods and works shall be undertaken in accordance with such procurement plan as shall have been approved by the Bank, and with the provisions statements of said paragraph 1expenditure. 2. Prior Review With respect to: (a) the first two contracts under Parts C.1 and C.2 hereof; and (b) each contract under Parts B and C.3 hereof, the procedures set forth in paragraphs 2 and 3 of Appendix 1 to the Guidelines shall apply.

Notification and Advertising. The international community should be notified in a timely manner of the opportunity to bid. This will be done by advertising invitations to apply for inclusion in a bidder’s invitation list, to prequalify apply for prequalification, or to bid; such advertisements should be placed in at least one news- paper of general circulation in the Borrower’s country and, in addition, in at least one of the following forms: (i) a notice in the United Nations publication, Devel- opment Forum, Business Edition; or (ii) an advertisement in a newspaper, periodical or technical journal of wide international circula- tion; or (iii) a notice to local representatives of countries and territories, referred to in the Guidelines, that are potential suppliers of the goods required." (b) The following is added at the end of paragraph 2.21 of the Guidelines: "As a further alternative, bidding documents may require the bidder to state the bid price in a single currency widely used in international trade and specified in the bidding documents." (c) Paragraphs 2.55 and 2.56 of the Guidelines are deleted. 2. Contracts for each contract goods estimated to cost the equivalent of less than $10,000,000 equivalent or more 1,000,000 each shall be advertised in accordance with the procedures applicable to large contracts under paragraph 2.8 of the Guidelines. Part C: Other Procurement Procedures 1. International Shopping Office equipment, including telephone exchanges, copiers, fax machines, and microcomputers, estimated to cost more than $50,000, but $300,000 equivalent or less per contract, may be procured under contracts awarded on the basis of international shopping the normal procurement procedures of the purchaser of such goods. 3. With respect to each contract referred to in paragraph 1 of this Schedule, the Borrower shall furnish to the Association, prior to the submission to the Association of the first applica- tion for withdrawal of funds from the Credit Account in respect of such contract, two conformed copies of such contract, together with the analysis of the respective bids and recommendations for award, a description of the advertising and tendering procedures followed and such other information as the Association shall reasonably request. 4. With respect to each contract referred to in paragraph 2 of this Schedule, the Borrower shall furnish to the Association, prior to the submission to the Association of the first applica- tion for withdrawal of funds from the Credit Account in respect thereof, such documentation and information as the Association may reasonably request to support withdrawal applications in respect of such contract. 5. Notwithstanding the provisions of paragraphs 3 and 4 of this Schedule, where payments under a contract are to be made out of the proceeds of the Special Account, the copies of such contract or the documentation and the information to be furnished to the Association pursuant to the provisions of paragraph 3 or para- graph 4 of this Schedule, as the case may be, shall be furnished to the Association as part of the evidence required under paragraph 4 of Schedule 4 to this Agreement. 6. The provisions of the preceding paragraphs 3, 4 and 5 shall not apply to contracts on account of which the Association has authorized withdrawals from the Credit Account on the basis of statements of expenditure. Actions Referred to in Paragraph 3 (b) of Schedule 1 to this Agreement The following actions shall have been taken consistent with the principle outlined in the Program: (a) Agreement between the Borrower and the Association on the Borrower’s investment program for 1988-1990. (b) Adoption of a public investment budget for 1988 satis- factory to the Association. (c) Adoption of an action program satisfactory to the Association to strengthen the capability of the Ministry of Economy and Finance to implement all actions required under the Program. (d) Agreement between the Borrower and the Association on cereal pricing and marketing policies. (e) A new system for setting electricity tariffs satis- factory to the Association has been enacted. (f) An organization structure and management procedures satisfactory to the Association have been adopted for CSA. (g) Agreement between the Borrower and the Association on a restructuring program of SMCPP and contract-plans for SMCPP and SONELEC. (h) Agreements satisfactory to the Association have been concluded: (A) with private partners for the rehabilitation of four primary banks; and (B) with all restructured banks to determine the conditions and modalities required for an adequate conduct of their operations and a timeframe for their full compliance with all requirements prescribed by the Banking Law. (i) Agreement with the Association on an investment program for the fisheries sector, and submission of an action-program satisfactory to the Association to: (A) enhance the control of fishing activities; and (B) formulate a training program for the fisheries sector. (j) Enactment of a revised Investment Code satisfactory to the Association. (k) Enactment of revised tax regulations satisfactory to the Association for fisheries operations, small businesses and SNIM operations. Special Account 1. For the purposes of this Schedule: (a) the term "eligible expenditures" means expenditures in respect of the reasonable cost of goods required during the execu- tion of the Program and to be financed out of the proceeds of the Credit in accordance with the provisions of paragraphs 3.5 Schedule 1 to this Agreement; and (b) the term "Authorized Allocation" means an amount of $3,000,000 to be withdrawn from the Credit Account and 3.6 deposited in the Special Account pursuant to paragraph 3 (a) of the Guidelinesthis Schedule. 2. National Shopping TelephonesExcept as the Association shall otherwise agree, local area networks wiring, library supplies, and office supplies, estimated to cost $50,000 equivalent or less per contract and $900,000 equivalent or less in the aggregate (which aggregate shall not apply in the case of goods financed under Part E payments out of the Project), may Special Account shall be procured under contracts awarded on the basis of national shopping procedures made exclusively for eligible expenditures in accordance with the provisions of paragraphs 3.5 and 3.6 of the Guidelinesthis Schedule. 3. Procurement After the Association has received evidence satisfactory to it that the Special Account has been duly opened, withdrawals of Small Works Eligible works estimated not the Authorized Allocation and subsequent withdrawals to exceed $75,000 equivalent per contract, and not to exceed $600,000 in replenish the aggregate, shall Special Account may be procured and awarded on made as follows: (a) On the basis of quotations obtained from three qualified domestic contractors in response a request or requests by the Borrower for a deposit or deposits which add up to a written invitation. The invitation shall include a detailed description the aggregate amount of the works, including basic specificationsAuthorized Allocation, the required completion dateAssociation shall, a basic form on behalf of agreement acceptable the Borrower, withdraw from the Credit Account and deposit in the Special Account such amount or amounts as the Borrower shall have requested. (b) The Borrower shall furnish to the BankAssociation requests for replenishment of the Special Account at such intervals as the Association shall specify. On the basis of such requests, the Association shall withdraw from the Credit Account and relevant drawingsdeposit into the Special Account such amounts as shall be required to replenish the Special Account with amounts not exceeding the amount of payments made out of the Special Account for eligible expenditures. Each such deposit shall be withdrawn by the Associa- tion from the Credit Account in the respective equivalent amounts as shall have been justified by the evidence supporting the request for such deposit furnished pursuant to paragraph 4 of this Schedule. 4. For each payment made by the Borrower out of the Special Account for which the Borrower requests replenishment pursuant to paragraph 3 (b) of this Schedule, where applicable. The award the Borrower shall furnish to the Association, prior to or at the time of such request, such documents and other evidence as the Association shall reasonably request, showing that such payment was made for eligible expenditures. (a) Notwithstanding the provisions of paragraph 3 of this Schedule, no further deposit into the Special Account shall be made to the contractor who offers the lowest price quotation for the required work, and who has the experience and resources to successfully complete the contract. Part D: Review by the Bank Association when either of Procurement Decisionsthe following situations first arises: 1. Procurement Planning Prior to (i) the issuance of any invitations to prequalify for bidding or to bid for contracts, Association shall have determined that all further withdrawals can be made by the proposed procurement plan for Borrower directly from the Project shall be furnished to the Bank for its review and approval, Credit Account in accordance with the provisions of Article V of the General Condi- tions and paragraph 1 (a) of Appendix 1 Section 2.02 of this Agreement; or (ii) the total unwithdrawn amount of the Credit, minus the amount of any outstanding special commitment entered into by the Association pursuant to Section 5.02 of the General Conditions with respect to the Guidelines. Procurement of all goods and works Program, shall be undertaken in accordance with equal to the equivalent of twice the amount of the Authorized Allocation. (b) Thereafter, withdrawal from the Credit Account of the remaining unwithdrawn amount of the Credit shall follow such procurement plan pro- cedures as the Association shall specify by notice to the Bor- rower. Such further withdrawals shall be made only after and to the extent that the Association shall have been approved by satisfied that all such amounts remaining on deposit in the Bank, and with Special Account as of the provisions date of said paragraph 1such notice will be utilized in making payments for eligible expenditures. 2. Prior Review With respect to: (a) If the first two contracts under Parts C.1 and C.2 hereof; and Association shall have determined at any time that any payment out of the Special Account: (i) was made for any expenditure or in any amount not eligible pursuant to paragraph 2 of this Schedule, or (ii) was not justified by the evidence furn- ished pursuant to paragraph 4 of this Schedule, the Borrower shall, promptly upon notice from the Association, deposit into the Special Account (or, if the Association shall so request, refund to the Association) an amount equal to the amount of such payment or the portion thereof not so eligible or justified. No further deposit by the Association into the Special Account shall be made until the Borrower has made such deposit or refund. (b) each contract under Parts B and C.3 hereofIf the Association shall have determined at any time that any amount outstanding in the Special Account will not be required to cover further payments for eligible expenditures, the procedures set forth in paragraphs 2 and 3 of Appendix 1 Borrower shall, promptly upon notice from the Association, refund to the Guidelines shall applyAssociation such outstanding amount for crediting to the Credit Account.

Notification and Advertising. The international community should be notified in a timely manner of the opportunity to bid. This will be done by advertising invitations to apply for inclusion in a bidder’s invitation list, to prequalify apply for prequalification, or to bid; such advertisements should be placed in at least one newspaper of general circulation in the Borrower’s country and, in addition, in at least one of the following forms: (i) a notice in the United Nations publication, Development Forum, Business Edition; or (ii) an advertisement in a newspaper, periodical or technical journal of wide international circulation; or (iii) a notice to local representatives of countries and territories referred to in the Guidelines, that are potential suppliers of the goods required." (b) The following is added at the end of paragraph 2.21 of the Guidelines: "As a further alternative, bidding documents may require the bidder to state the bid price in a single currency widely used in international trade and specified in the bidding documents." (c) Paragraphs 2.55 and 2.56 of the Guidelines are deleted. 2. Contracts for each contract the procurement of goods estimated to cost the equivalent of less than $10,000,000 equivalent or more 5,000,000 shall be advertised in accordance with awarded: (a) by purchasers required to follow the Borrower’s public procurement procedures applicable to large contracts under paragraph 2.8 for the importation of the Guidelines. Part C: Other Procurement Procedures 1. International Shopping Office equipmentgoods, including telephone exchanges, copiers, fax machines, and microcomputers, estimated to cost more than $50,000, but $300,000 equivalent or less per contract, may be procured under contracts awarded on the basis of international shopping such procedures, provided that such procedures shall have been found acceptable by the Bank; and (b) by other purchasers, in accordance with established commercial practice. 3. With respect to each contract referred to in paragraph 1 of this Schedule, the Borrower shall furnish to the Bank, prior to the submission to the Bank of the first application for withdrawal of funds from the Loan Account in respect of such contract, two conformed copies of such contract, together with the analysis of the respective bids and recommendations for award, a description of the advertising and tendering procedures followed and such other information as the Bank shall reasonably request. 4. With respect to each contract referred to in paragraph 2 of this Schedule, the Borrower shall furnish to the Bank, prior to the submission to the Bank of the first application for withdrawal of funds from the Loan Account in respect thereof, such documentation and information as the Bank may reasonably request to support withdrawal applications in respect of such contract. 5. The provisions of paragraphs 3.5 and 3.6 the preceding paragraph 4 of the Guidelines. 2. National Shopping Telephones, local area networks wiring, library supplies, and office supplies, estimated to cost $50,000 equivalent or less per contract and $900,000 equivalent or less in the aggregate (which aggregate this Schedule shall not apply in to contracts on account of which the case of goods financed under Part E of Bank has authorized withdrawals from the Project), may be procured under contracts awarded Loan Account on the basis of national shopping procedures in accordance with the provisions statements of paragraphs 3.5 and 3.6 of the Guidelinesexpenditure. 3. Procurement of Small Works Eligible works estimated not to exceed $75,000 equivalent per contract, and not to exceed $600,000 in the aggregate, shall be procured and awarded on the basis of quotations obtained from three qualified domestic contractors in response to a written invitation. The invitation shall include a detailed description of the works, including basic specifications, the required completion date, a basic form of agreement acceptable to the Bank, and relevant drawings, where applicable. The award shall be made to the contractor who offers the lowest price quotation for the required work, and who has the experience and resources to successfully complete the contract. Part D: Review by the Bank of Procurement Decisions 1. Procurement Planning Prior to the issuance of any invitations to prequalify for bidding or to bid for contracts, the proposed procurement plan for the Project shall be furnished to the Bank for its review and approval, in accordance with the provisions of paragraph 1 of Appendix 1 to the Guidelines. Procurement of all goods and works shall be undertaken in accordance with such procurement plan as shall have been approved by the Bank, and with the provisions of said paragraph 1. 2. Prior Review With respect to: (a) the first two contracts under Parts C.1 and C.2 hereof; and (b) each contract under Parts B and C.3 hereof, the procedures set forth in paragraphs 2 and 3 of Appendix 1 to the Guidelines shall apply.

Notification and Advertising. The invitation to prequalify or bid for each contract estimated to cost $10,000,000 equivalent or more shall be advertised in accordance with the procedures applicable to large contracts under paragraph 2.8 of the Guidelines. Part C: Other Procurement ProceduresProcedure 1. International Shopping Office equipment, including telephone exchanges, copiers, fax machines, and microcomputers, (a) Goods estimated to cost more less than $50,000, but $300,000 500,000 equivalent or less per contract, up to an aggregate amount not to exceed $1,500,000 equivalent, and works estimated to cost less than $10,000,000 equivalent per contract up to an aggregate amount not to exceed $273,000,000 equivalent, may be procured under contracts awarded on the basis of international shopping procedures in accordance with the provisions of paragraphs 3.5 3.3 and 3.6 3.4 of the Guidelines. 2(b) The procedures to be followed for National Competitive Bidding under Part C.1 of this Section shall be those set forth in the Law on Tendering and Bidding of the People’s Republic of China promulgated by Order No. National Shopping Telephones21 of the President of the People’s Republic of China on August 30, local area networks wiring1999, library supplieswith the following clarifications required for compliance with the Guidelines: (i) All invitations to prequalify or to bid shall be advertised in a newspaper of national circulation in China and such advertisement shall be made in sufficient time for prospective bidders to obtain prequalification or bidding documents and prepare and submit their responses. In any event, a minimum of thirty (30) days shall be given to bidders between the date of advertisement in such newspaper and the deadline for submission of bids, and office supplies, estimated to cost $50,000 equivalent or less per contract the advertisement and $900,000 equivalent or less bidding documents shall specify the deadline for such submission. (ii) Qualification requirements of bidders and the method of evaluating the qualification of each bidder shall be specified in detail in the aggregate bidding documents. (which aggregate iii) All bidders shall be required to provide security in an amount sufficient to protect the Borrower, in case of breach of contract by the contractor, and the bidding documents shall specify the required form and amount of such security. (iv) The time for opening of all bids shall be the same as the deadline for receipt of such bids. (v) All bids shall be opened in public; all bidders shall be afforded an opportunity to be present (either in person or through their representatives) at the time of bid opening, but bidders shall not apply in be required to be present at the case of goods financed under Part E of the Project), bid opening. (vi) No bid may be procured under contracts awarded rejected solely on the basis that the bid price falls outside any standard contract estimate, or margin or bracket of national shopping procedures average bids established by the Borrower. (vii) Each contract shall be awarded to the lowest evaluated responsive bidder, that is, the bidder who meets the appropriate standards of capability and resources and whose bid has been determined (A) to be substantially responsive to the bidding documents and (B) to offer the lowest evaluated cost. The winning bidder shall not be required, as a condition of award, to undertake responsibilities for work not stipulated in accordance the bidding documents or otherwise to modify the bid as originally submitted. (viii) Each contract financed with the provisions of paragraphs 3.5 and 3.6 proceeds of the Guidelines. 3. Procurement of Small Works Eligible works estimated not to exceed $75,000 equivalent per contract, Loan shall provide that the suppliers and not to exceed $600,000 in the aggregate, contractors shall be procured and awarded on the basis of quotations obtained from three qualified domestic contractors in response to a written invitation. The invitation shall include a detailed description of the works, including basic specifications, the required completion date, a basic form of agreement acceptable to permit the Bank, at its request, to inspect their accounts and relevant drawings, where applicable. The award shall be made records relating to the contractor who offers performance of the lowest price quotation for contract and to have said accounts and records audited by auditors appointed by the required work, and who has the experience and resources to successfully complete the contractBank. Part D: Review by the Bank of Procurement Decisions 1. Procurement Planning Prior to the issuance of any invitations to prequalify for bidding or to bid for contracts, the proposed procurement plan for the Project shall be furnished to the Bank for its review and approval, in accordance with the provisions of paragraph 1 of Appendix 1 to the Guidelines. Procurement of all goods and works shall be undertaken in accordance with such procurement plan as shall have been approved by the Bank, and with the provisions of said paragraph 1. 2. Prior Review With respect to: (a) the first two contracts under Parts C.1 and C.2 hereof; and (b) each contract under Parts B and C.3 hereof, the procedures set forth in paragraphs 2 and 3 of Appendix 1 to the Guidelines shall apply.

Notification and Advertising. The international community should be notified in a timely manner of the opportunity to bid. This will be done by advertising invitations to apply for inclusion in a bidder’s invitation list, to prequalify apply for prequalification, or to bid; such advertisements should be placed in at least one newspaper of general circulation in the Borrower’s country and, in addition, in at least one of the following forms: (i) a notice in the United Nations publication, Development Forum, Business Edition; or (ii) an advertisement in a newspaper, periodical or technical journal of wide international circulation; or (iii) a notice to local representatives of countries and territories referred to in the Guidelines, that are potential suppliers of the goods required." (b) The following is added at the end of paragraph 2.21 of the Guidelines: "As a further alternative, bidding documents may require the bidder to state the bid price in a single currency widely used in international trade and specified in the bidding documents." (c) Paragraphs 2.55 and 2.56 of the Guidelines are deleted. 2. Contracts for each contract the procurement of goods estimated to cost the equivalent of less than $10,000,000 equivalent or more 5,000,000 shall be advertised awarded: (a) by purchasers required to follow the Borrower’s public procurement procedures for the importation of goods, on the basis of such procedures, provided that such procedures shall have been found acceptable by the Association; (b) by other purchasers, in accordance with the procedures applicable to large established commercial practice, provided that s such contracts under paragraph 2.8 of the Guidelines. Part C: Other Procurement Procedures 1. International Shopping Office equipment, including telephone exchanges, copiers, fax machines, and microcomputers, estimated to cost more than $50,000, but $300,000 equivalent or less per contract, may shall be procured under contracts awarded on the basis of international shopping evaluation and comparison of quotations obtained from suppliers from at least two countries, except that direct contracting procedures acceptable to the Association may be used where considered appropriate under paragraph 3.5 of the Guidelines; provided, however, that contracts for the procurement of goods on the basis of paragraph 3.5 (b) and (c) of the Guidelines shall not exceed an aggregate amount equivalent to $20,000,000; and (c) by any purchasers, for the supply of commodities, on the basis of evaluation and comparison of quotations obtained from more than one supplier. 3. With respect to each contract referred to in accordance paragraph 1 of this Schedule, the Borrower shall furnish to the Association, prior to the submission to the Association of the first application for withdrawal of funds from the Credit Account in respect of such contract, two conformed copies of such contract, together with the analysis of the respective bids and recommendations for award, a description of the advertising and tendering procedures followed and such other information as the Association shall reasonably request. 4. With respect to each contract referred to in paragraph 2 of this Schedule, the Borrower shall furnish to the Association, prior to the submission to the Association of the first application for withdrawal of funds from the Credit Account in respect thereof, such documentation and information as the Association may reasonably request to support withdrawal applications in respect of such contract. 5. Notwithstanding the provisions of paragraphs 3.5 3 and 3.6 4 of this Schedule, where payments under a contract are to be made out of the Guidelines. 2. National Shopping Telephones, local area networks wiring, library supplies, and office supplies, estimated to cost $50,000 equivalent or less per contract and $900,000 equivalent or less in the aggregate (which aggregate shall not apply in the case of goods financed under Part E proceeds of the Project)Special Account, may the copies of such contract or the documentation and the information to be procured under contracts awarded on furnished to the basis of national shopping procedures in accordance with Association pursuant to the provisions of paragraphs 3.5 and 3.6 paragraph 3 or paragraph 4 of this Schedule, as the Guidelines. 3. Procurement of Small Works Eligible works estimated not to exceed $75,000 equivalent per contractcase may be, and not to exceed $600,000 in the aggregate, shall be procured and awarded on the basis of quotations obtained from three qualified domestic contractors in response to a written invitation. The invitation shall include a detailed description of the works, including basic specifications, the required completion date, a basic form of agreement acceptable to the Bank, and relevant drawings, where applicable. The award shall be made to the contractor who offers the lowest price quotation for the required work, and who has the experience and resources to successfully complete the contract. Part D: Review by the Bank of Procurement Decisions 1. Procurement Planning Prior to the issuance of any invitations to prequalify for bidding or to bid for contracts, the proposed procurement plan for the Project shall be furnished to the Association as part of the evidence required under paragraph 4 of Schedule 4 to this Agreement. 1. The Borrower shall cause Bangladesh Bank to implement the new interest rate policy in accordance with Bangladesh Bank Circular No. 33 of November 16, 1989 and methodology agreed with the Association which includes semi-annual reviews of the interest rate and adjustments in interest rate structure as necessary to reflect changes in inflation rates and the cost of lending of Scheduled Banks. 2. The Borrower shall cause Bangladesh Bank to implement the procedures for monetary programming, policy formulation and regular review of interest rates. 3. The Borrower shall reimburse the Scheduled Banks for their cost of interest rate subsidies covering the period January 1 to June 30, 1990. 4. The Borrower shall cause Bangladesh Bank to establish and implement a system by which the Scheduled Banks are required to report regularly to Bangladesh Bank on loans and debt servicing status of their public sector borrowers. 5. The Borrower shall cause Bangladesh Bank to establish and staff a supervision unit for non-bank financial institutions. 6. The Borrower shall cause Bangladesh Bank to design and commence a training program for its supervision and inspection personnel, acceptable to the Association. 7. The Borrower shall cause the Accounting and Auditing Committee of Bangladesh Bank to establish criteria, acceptable to the Association, for selection of auditors, external audits, and review and approval, of audit reports for financial institutions for which Bangladesh Bank has supervisory responsibility. 8. The Borrower shall cause the NCBs to reclassify their December 1989 portfolio in accordance with the provisions of paragraph 1 of Appendix 1 to the Guidelines. Procurement of all goods and works shall be undertaken in accordance with such procurement plan as shall have been approved by the Bank, and with the provisions of said paragraph 1. 2. Prior Review With respect to: (a) the first two contracts under Parts C.1 and C.2 hereof; and (b) each contract under Parts B and C.3 hereof, the procedures requirements set forth in paragraphs 2 and 3 of Appendix 1 to the Guidelines shall apply.Bangladesh Bank Circular No. 34

Notification and Advertising. The international community should be notified in a timely manner of the opportunity to bid. This will be done by advertising invitations to apply for inclusion in a bidder’s invitation list, to prequalify apply for prequalification, or to bid; such advertisements should be placed in at least one newspaper of general circulation in the Borrower’s country and, in addition, in at least one of the following forms: (i) a notice in the United Nations publication, Development Forum, Business Edition; or (ii) an advertisement in a newspaper, periodical or technical journal of wide international circulation; or (iii) a notice to local representatives of countries and territories referred to in the Guidelines, that are potential suppliers of the goods required." (b) The following is added at the end of paragraph 2.21 of the Guidelines: "As a further alternative, bidding documents may require the bidder to state the bid price in a single currency widely used in international trade and specified in the bidding documents." (c) Paragraphs 2.55 and 2.56 of the Guidelines are deleted. 3. Goods to be procured under paragraph 1 of this Schedule shall be exempted from pre-shipment price inspection by a third party. 4. Contracts for each contract the procurement of goods estimated to cost the equivalent of less than $10,000,000 equivalent or more 300,000 shall be advertised awarded: (a) by purchasers required to follow the Borrower’s public procurement procedures for the importation of goods, on the basis of such procedures, provided that such procedures shall have been found acceptable by the Association; and (b) by other purchasers, in accordance with the procedures applicable to large established commercial practice, provided that such contracts under paragraph 2.8 of the Guidelines. Part C: Other Procurement Procedures 1. International Shopping Office equipment, including telephone exchanges, copiers, fax machines, and microcomputers, estimated to cost more than $50,000, but $300,000 equivalent or less per contract, may shall be procured under contracts awarded on the basis of international shopping evaluation and comparison of quotations obtained from suppliers from at least two countries, except that direct contracting procedures in accordance with acceptable to the provisions of paragraphs Association may be used where considered appropriate under paragraph 3.5 and 3.6 of the Guidelines. 25. National Shopping Telephones, local area networks wiring, library supplies, and office supplies, estimated Subject to cost $50,000 equivalent or less per contract and $900,000 equivalent or less in the aggregate (which aggregate shall not apply in the case of goods financed under Part E prior approval of the Project)Association, commonly traded commodities may be procured under contracts awarded on through organized international commodity markets or other channels of competitive procurement acceptable to the basis of national shopping procedures Association, in accordance with procedures acceptable to the provisions Association. 6. With respect to each contract referred to in paragraph 1 of paragraphs 3.5 and 3.6 this Schedule, the Borrower shall furnish to the Association, prior to the submission to the Association of the Guidelines. 3. Procurement first application for withdrawal of Small Works Eligible works estimated not to exceed $75,000 equivalent per funds from the Credit Account in respect of such contract, two conformed copies of such contract, together with the analysis of the respective bids and not to exceed $600,000 in the aggregaterecommendations for award, shall be procured and awarded on the basis of quotations obtained from three qualified domestic contractors in response to a written invitation. The invitation shall include a detailed description of the worksadvertising and tendering procedures followed and such other information as the Association shall reasonably request. Where payments under a contract are to be made out of the proceeds of the Special Account, including basic specifications, such copies together with the other information required completion date, a basic form of agreement acceptable to be furnished to the Bank, and relevant drawings, where applicable. The award shall be made Association pursuant to the contractor who offers the lowest price quotation for the required work, and who has the experience and resources to successfully complete the contract. Part D: Review by the Bank of Procurement Decisions 1. Procurement Planning Prior to the issuance of any invitations to prequalify for bidding or to bid for contracts, the proposed procurement plan for the Project this paragraph shall be furnished to the Bank for its review and approval, in accordance with Association as part of the provisions evidence required under paragraph 4 of paragraph 1 of Appendix 1 Schedule 4 to the Guidelines. Procurement of all goods and works shall be undertaken in accordance with such procurement plan as shall have been approved by the Bank, and with the provisions of said paragraph 1this Agreement. 27. Prior Review With respect to: (a) the first two contracts under Parts C.1 and C.2 hereof; and (b) to each contract under Parts B and C.3 hereof, the procedures set forth referred to in paragraphs 2 and 3 of Appendix this Schedule, the Borrower shall furnish to the Association, prior to the submission to the Association of the first application for withdrawal of funds from the Credit Account in respect thereof, such documentation and information as the Association may reasonably request to support withdrawal applications in respect of such contract. Where payments under a contract are to be made out of the proceeds of the Special Account, the documentation and the information to be furnished to the Association pursuant to the provisions of this paragraph shall be furnished to the Association as part of the evidence required under paragraph 4 of Schedule 4 to this Agreement. 8. The provisions of the preceding paragraph 6 of this Schedule shall not apply to contracts on account of which withdrawals from the Credit Account are to be made on the basis of statements of expenditure. Actions Referred to in Paragraph 4 of Schedule 1 to this Agreement Part A: Second Tranche Release Conditions 1. The Borrower has reviewed and simplified to the Guidelines shall applyAssociation’s satisfaction its export regulatory procedures. 2. The Borrower has brought the actual composition of its expenditures for fiscal year 1993/94, in particular expenditures for the social sectors, into line with the agreement reached with the Association. 3. The Borrower has completed the modernization of income tax administration and collection as agreed with the Association. 4. The Borrower has implemented the results of the job inspection and functional review for the Borrower’s Department of Works, as agreed with the Association. 5. The Borrower has implemented to the Association’s satisfaction the first phase of the action program for the reform of public enterprises agreed by the Borrower and the Association. 6. The Borrower has completed a management audit of BSL to be carried out, in accordance with international accounting standards satisfactory to the Association, for the Borrower by an inter- national accounting firm acceptable to the Association.

Notification and Advertising. The international community should be notified in a timely manner of the opportunity to bid. This will be done by advertising invitations to apply for inclusion in a bidder’s invitation list, to apply for prequalification, or to bid; such advertisements should be placed in at least one newspaper of general circulation in the Borrower’s country and, in addition, in at least one of the following forms: (i) a notice in the United Nations publication, Development Forum, Business Edition; or (ii) an advertisement in a newspaper, periodical or technical journal of wide international circulation; or (iii) a notice to local representatives of countries and territories referred to in the Guidelines, that are potential suppliers of the goods required." (b) Paragraphs 2.55 and 2.56 of the Guidelines are deleted. (c) For fixed-price contracts, the invitation to prequalify or bid referred to in paragraph 2.13 of the Guidelines shall provide that, when contract award is delayed beyond the original bid validity period, the successful bidder’s bid price will be increased for each contract week of delay by two predisclosed correction factors acceptable to the Association, one to be applied to all foreign currency components and the other to the local currency component of the bid price. Such an increase shall not be taken into account in the bid evaluation. 2. Contracts for the procurement of goods estimated to cost the equivalent of less than $10,000,000 equivalent or more 300,000 shall be advertised awarded: (a) on the basis of comparison of price quotations obtained from at least three suppliers from at least two different countries eligible under the Guidelines, in accordance with procedures acceptable to the Association; or (b) in case of a limited number of suppliers, through limited international bidding procedures on the basis of evaluation and comparison of bids invited from qualified suppliers acceptable to the Association and in accordance with the procedures applicable set forth in Sections I and II of the Guidelines (excluding paragraphs 2.8, 2.9, 2.55 and 2.56 thereof), except that direct contracting procedures acceptable to large contracts the Association may be used where considered appropriate under paragraph 2.8 of the Guidelines. Part C: Other Procurement Procedures 1. International Shopping Office equipment, including telephone exchanges, copiers, fax machines, and microcomputers, estimated to cost more than $50,000, but $300,000 equivalent or less per contract, may be procured under contracts awarded on the basis of international shopping procedures in accordance with the provisions of paragraphs 3.5 and 3.6 of the Guidelines. 2. National Shopping Telephones, local area networks wiring, library supplies, and office supplies, estimated to cost $50,000 equivalent or less per contract and $900,000 equivalent or less in the aggregate (which aggregate shall not apply in the case of goods financed under Part E of the Project), may be procured under contracts awarded on the basis of national shopping procedures in accordance with the provisions of paragraphs 3.5 and 3.6 of the Guidelines. 3. Procurement Subject to the prior approval of Small Works Eligible works estimated not to exceed $75,000 equivalent per contractthe Association, and not to exceed $600,000 in the aggregate, shall commonly traded commodities may be procured and awarded on the basis through organized international commodity markets or other channels of quotations obtained from three qualified domestic contractors in response to a written invitation. The invitation shall include a detailed description of the works, including basic specifications, the required completion date, a basic form of agreement competitive procurement acceptable to the Bank, and relevant drawings, where applicable. The award shall be made to the contractor who offers the lowest price quotation for the required work, and who has the experience and resources to successfully complete the contract. Part D: Review by the Bank of Procurement Decisions 1. Procurement Planning Prior to the issuance of any invitations to prequalify for bidding or to bid for contracts, the proposed procurement plan for the Project shall be furnished to the Bank for its review and approvalAssociation, in accordance with the provisions of paragraph 1 of Appendix 1 procedures acceptable to the Guidelines. Procurement of all goods and works shall be undertaken in accordance with such procurement plan as shall have been approved by the Bank, and with the provisions of said paragraph 1Association. 24. Prior Review With respect to: (ai) each contract estimated to cost the equivalent of $500,000 or more, (ii) each contract awarded under direct contracting procedures, and (iii) the first two contracts for the procurement of goods under Parts C.1 and C.2 hereof; and (b) each contract under Parts B and C.3 hereofsub-sector included in the pre- identified list of eligible imports, the procedures set forth in paragraphs 2 and 3 4 of Appendix 1 to the Guidelines shall apply. Where payments under a contract are to be made out of the proceeds of the Special Account, such procedures shall be modified to ensure that the two conformed copies of the contract required to be furnished to the Association pursuant to said paragraph 2 (d) shall be furnished to the Association prior to the making of the first payment out of the Special Account in respect of such contract. 5. The provisions of the preceding paragraph 4 of this Schedule shall not apply to contracts on account of which withdrawals from the Credit Account are to be made on the basis of statements of expenditure. 6. With respect to each contract not governed by the preceding paragraphs 4 and 5, the procedures set forth in paragraphs 3 and 4 of Appendix 1 to the Guidelines shall apply. Where payments for such contract are to be made out of the Special Account, such procedures shall be modified to ensure that the two conformed copies of the contract together with the other information required to be furnished to the Association pursuant to said paragraph 3 shall be furnished to the Association as part of the evidence to be furnished pursuant to paragraph 4 of Schedule 5 to this Agreement.

Notification and Advertising. The international community should be notified in a timely manner of the opportunity to bid. This will be done by advertising invitations to apply for inclusion in a bidder’s invitation list, to prequalify apply for prequalification, or bid for each contract estimated to cost $10,000,000 equivalent bid. Such advertisements should be placed in at least one newspaper of general circulation in the Borrower’s country and, in addition, in at least one of the following forms: (i) a notice in the United Nations publication, Development Forum, Business Edition; or (ii) an advertisement in a newspaper, periodical or more shall be advertised technical journal of wide international circulation; or (iii) a notice to local representatives of countries and territories, referred to in accordance with the procedures applicable to large contracts under Guidelines, that are potential suppliers of the goods required." (b) The following is added at the end of paragraph 2.8 2.21 of the Guidelines. Part C: Other Procurement Procedures"As a further alternative, bidding documents may require the bidder to state the bid price in a single currency widely used in international trade and specified in the bidding documents." 1. International Shopping Office equipment, including telephone exchanges, copiers, fax machines, (c) Paragraphs 2.55 and microcomputers2.56 of the Guidelines are deleted. (a) Contracts for goods, estimated to cost more the equivalent of less than two million dollars ($50,0002,000,000) each, but $300,000 equivalent or less per contract, may to be procured under contracts by private entities and contractors shall be awarded on the basis of international shopping the normal procurement procedures in accordance with the provisions of paragraphs 3.5 and 3.6 of the Guidelinespurchaser of such goods. 2. National Shopping Telephones(b) Contracts for goods to be procured by the Borrower, local area networks wiring, library supplies, and office suppliesits political subdivisions or state-owned enterprises, estimated to cost the equivalent of less than two million dollars ($50,000 equivalent or less per contract and $900,000 equivalent or less in the aggregate (which aggregate shall not apply in the case of goods financed under Part E of the Project)2,000,000) each, may be procured under contracts awarded on the basis of national shopping the normal procurement procedures in accordance with the provisions of paragraphs 3.5 and 3.6 of the Guidelinespurchaser of such goods, and such procedures shall be satisfactory to the Association. 3. Procurement of Small Works Eligible works estimated not to exceed $75,000 equivalent per contract, and not to exceed $600,000 in the aggregate, shall Contracts for commonly traded commodities may be procured and awarded on the basis of price quotations obtained available from three qualified domestic contractors organized inter- national commodity markets. 4. With respect to each contract referred to in response paragraph 1 of this Schedule, the Borrower shall furnish to the Association, prior to the submission to the Association of the first applica- tion for withdrawal of funds from the Credit Account in respect of such contracts, two conformed copies of each such contract, together with the analysis of the respective bids and recommenda- tions for award, a written invitation. The invitation shall include a detailed description of the works, including basic specificationsadvertising and tendering procedures followed and such other information as the Association shall reasonably request. 5. With respect to each such contract referred to in paragraph 2 of this Schedule, the required completion date, a basic form of agreement acceptable Borrower shall furnish to the BankAssociation, prior to the submission to the Association of the first applica- tion for withdrawal of funds from the Credit Account in respect thereof, such documentation and relevant drawingsinformation as the Association may reasonably request to support withdrawal applications in respect of such contracts. 6. Notwithstanding the provisions of paragraphs 4 and 5 of this Schedule, where applicable. The award shall payments under a contract are to be made out of the proceeds of the Special Account, the copies of such contracts or the documentation and the information to be furnished to the contractor who offers the lowest price quotation for the required workAssociation, and who has the experience and resources to successfully complete the contract. Part D: Review by the Bank of Procurement Decisions 1. Procurement Planning Prior pursuant to the issuance provisions of any invitations to prequalify for bidding paragraph 4 or to bid for contractsparagraph 5 of this Schedule, as the proposed procurement plan for the Project case may be, shall be furnished to the Bank for its review Association as part of the evidence required under paragraph 4 of Schedule 4 to this Agreement. 7. The provisions of the preceding paragraphs 4, 5 and approval, 6 shall not apply to contracts on account of which the Association has authorized withdrawals from the Credit Account on the basis of statements of expenditure. Such contracts shall be retained in accordance with the provisions Section 3.04 (c) (ii) of paragraph 1 this Agreement. Actions Referred to in Paragraph 5 (b) of Appendix Schedule 1 to this Agreement 1. The Borrower has: (a) removed the Guidelines. Procurement requirement of prior RBM foreign exchange approval for the importation of: (i) the equivalent of a further fifty percent (50%) of spare parts and raw materials; and (ii) an appropriate number of intermediate finished goods, satisactory to the Association; and (b) adopted a plan, satisfactory to the Association, for the total elimination of prior RBM approval on all goods and works shall be undertaken in accordance with such procurement plan as shall have been approved by the Bank, and with the provisions of said paragraph 1other imports. 2. Prior Review With respect to: The Borrower has: (a) adopted budgetary measures to reduce the first two contracts under Parts C.1 and C.2 hereofdeficit for the fiscal year 1989/90 to a level acceptable to the Association; and and (b) each contract under Parts B and C.3 hereofprepared a rolling public investment program for the fiscal years 1989/90 through 1992/93, the procedures set forth in paragraphs 2 and 3 of Appendix 1 acceptable to the Guidelines shall applyAssociation. 3. The Borrower has announced the subsequent phase of its tax- reform program, acceptable to the Association. 4. The Borrower has made revisions to the RBM Act and adopted a timetable, acceptable to the Association, for the revision of its Banking Act. Special Account 1. For the purposes of this Schedule:

Notification and Advertising. The international community should be notified in a timely manner of the opportunity to bid. This will be done by advertising invitations to apply for inclusion in a bidder’s invitation list, to prequalify apply for prequalification, or to bid; such advertisements should be placed in at least one newspaper of general circulation in the Borrower’s country and, in addition, in al least one of the following forms: (A) a notice in the United Nations publication, Development Business; or (B) an advertisement in a newspaper, periodical ortechnical journal of wide international circulation; or (C) a notice to local representatives of countries and territories referred to in the Guidelines, that are potential suppliers of the goods required." (ii) The following is added at the end of paragraph 2.21 of the Guidelines: "As a further alternative, bidding documents may require the bidder to state the bid for each contract price in a single currency widely used in international trade and specified in the bidding documents." (iii) Paragraphs 2.55 and 2.56 of the Guidelines are deleted. (b) Livestock feed estimated to cost $10,000,000 less than the equivalent or more shall be advertised in accordance with the procedures applicable to large contracts under paragraph 2.8 of the Guidelines. Part C: Other Procurement Procedures 1. International Shopping Office equipment, including telephone exchanges, copiers, fax machines, and microcomputers, estimated to cost more than $50,000, but $300,000 equivalent or less L5,000,000 per contract, may be procured under contracts awarded on the basis of international shopping procedures evaluation and comparison of price quotations obtained from more than one supplier, in accordance with the provisions of paragraphs 3.5 and 3.6 of the Guidelines. 2. National Shopping Telephones, local area networks wiring, library supplies, and office supplies, estimated to cost $50,000 equivalent or less per contract and $900,000 equivalent or less in the aggregate (which aggregate shall not apply in the case of goods financed under Part E of the Project), may be procured under contracts awarded on the basis of national shopping procedures in accordance with the provisions of paragraphs 3.5 and 3.6 of the Guidelines. 3. Procurement of Small Works Eligible works estimated not to exceed $75,000 equivalent per contract, and not to exceed $600,000 in the aggregate, shall be procured and awarded on the basis of quotations obtained from three qualified domestic contractors in response to a written invitation. The invitation shall include a detailed description of the works, including basic specifications, the required completion date, a basic form of agreement acceptable to the Bank, and relevant drawings, where applicable. The award shall be made to the contractor who offers the lowest price quotation for the required work, and who has the experience and resources to successfully complete the contract. Part D: Review by the Bank of Procurement Decisions 1. Procurement Planning Prior to the issuance Review of any invitations to prequalify for bidding or to bid for and of proposed awards and final contracts, the proposed procurement plan for the Project shall be furnished to the Bank for its review and approval, in accordance with the provisions of paragraph 1 of Appendix 1 to the Guidelines. Procurement of all goods and works shall be undertaken in accordance with such procurement plan as shall have been approved by the Bank, and with the provisions of said paragraph 1.: 2. Prior Review With respect to: (a) the first two contracts under Parts C.1 and C.2 hereof; and (b) With respect to each contract under Parts B and C.3 hereofestimated to cost the equivalent of L300,000 or more, the procedures set forth in paragraphs 2 and 3 4 of Appendix 1 to the Guidelines shall apply. Where payments for such contract are to be made out of the Special Account, such procedures shall be modified to ensure that the two conformed copies of the contract required to be furnished to the Bank pursuant to said paragraph 2 (d) shall be furnished to the Bank prior to the making of the first payment out of the Special Account in respect of such contract. (b) With respect to each contract not governed by the preceding paragraph, the procedures set forth in paragraphs 3 and 4 of Appendix 1 to the Guidelines shall apply. Where payments for such contract are to be made out of the Special Account, such procedures shall be modified to ensure that the two conformed copies of the contract together with the other information required to be furnished to the Bank pursuant to said paragraph 3 shall be furnished to the Bank as part of the evidence to be furnished pursuant to paragraph 4 of Schedule 6 to this Agreement 2. The figure of 15% is hereby specified for purposes of paragraph 4 of Appendix 1 to the Guidelines.

Notification and Advertising. The international community should be notified in a timely manner of the opportunity to bid. This will be done by advertising invitations to apply for inclusion in a bidder’s invitation list, to prequalify apply for prequalification, or to bid; such advertisements should be placed in at least one news- paper of general circulation in the Borrower’s country and, in addition, in at least one of the following forms: (i) a notice in the United Nations publication, Devel- opment Forum, Business Edition; or (ii) an advertisement in a newspaper, periodical or technical journal of wide international cir- culation; or (iii) a notice to local representatives of countries and territories referred to in the Guidelines that are potential suppliers of the goods required." (b) The following is added at the end of paragraph 2.21 of the Guidelines: "As a further alternative, bidding documents may require the bidder to state the bid price in a single currency widely used in international trade and specified in the bidding documents." (c) Paragraphs 2.55 and 2.56 of the Guidelines are deleted. (a) Contracts for each contract goods estimated to cost less than the equivalent of $10,000,000 equivalent 2,000,000 each may be awarded: (i) in the case of procurement of goods by the Borrower, its political subdivisions or more shall be advertised in accordance with state-owned enterprises, on the procedures applicable to large contracts under paragraph 2.8 basis of the Guidelines. Part C: Other Procurement ProceduresBorrower’s or the state-owned enterprise’s procedures which have been reviewed and found acceptable to the Association; and (ii) in the case of procurement by private entities, on the basis of their normal procurement procedures. 1. International Shopping Office equipment, including telephone exchanges, copiers, fax machines, (b) Contracts for petroleum and microcomputers, estimated to cost more than $50,000, but $300,000 equivalent or less per contract, petroleum products commonly traded on the international market may be procured under contracts awarded on the basis of international shopping the normal procurement procedures of the purchaser of such items. 3. With respect to each contract referred to in accordance paragraph 1 of this Schedule, the Borrower shall furnish to the Association, prior to the submission to the Association of the first applica- tion for withdrawal of funds from the Credit Account in respect of such contract, two conformed copies of such contract, together with the analysis of the respective bids and recommendations for award, a description of the advertising and tendering procedures followed and such other information as the Association shall reasonably request. 4. With respect to each contract referred to in paragraph 2 of this Schedule, the Borrower shall furnish to the Association, prior to the submission to the Association of the first applica- tion for withdrawal of funds from the Credit Account in respect thereof, such documentation and information as the Association may reasonably request to support withdrawal applications in respect of such contract. 5. Notwithstanding the provisions of paragraphs 3.5 3 and 3.6 4 of this Schedule, where payments under a contract are to be made out of the Guidelines. 2. National Shopping Telephones, local area networks wiring, library supplies, and office supplies, estimated to cost $50,000 equivalent or less per contract and $900,000 equivalent or less in the aggregate (which aggregate shall not apply in the case of goods financed under Part E proceeds of the Project)Special Accounts, may the copies of such contract or the documentation and the information to be procured under contracts awarded on furnished to the basis of national shopping procedures in accordance with Association pursuant to the provisions of paragraphs 3.5 and 3.6 paragraph 3 or paragraph 4 of this Schedule, as the Guidelines. 3. Procurement of Small Works Eligible works estimated not to exceed $75,000 equivalent per contractcase may be, and not to exceed $600,000 in the aggregate, shall be procured and awarded on the basis of quotations obtained from three qualified domestic contractors in response to a written invitation. The invitation shall include a detailed description of the works, including basic specifications, the required completion date, a basic form of agreement acceptable to the Bank, and relevant drawings, where applicable. The award shall be made to the contractor who offers the lowest price quotation for the required work, and who has the experience and resources to successfully complete the contract. Part D: Review by the Bank of Procurement Decisions 1. Procurement Planning Prior to the issuance of any invitations to prequalify for bidding or to bid for contracts, the proposed procurement plan for the Project shall be furnished to the Bank for its review and approval, in accordance with Association as part of the evidence required under paragraph 4 of Schedule 4 to this Agreement. 6. The provisions of paragraph 1 the preceding paragraphs 3, 4 and 5 shall not apply to contracts on account of Appendix which the Association has authorized withdrawals from the Credit Account on the basis of statements of expenditure. Actions Referred to in Paragraph 3 (a) of Schedule 1 to the Guidelinesthis Agreement 1. Procurement of all goods and works shall be undertaken in accordance with such procurement plan as shall have The foreign exchange auction system has been expanded to include service payments on approved by the Bank, and with the provisions of said paragraph 1private external borrowings. 2. Prior Review With respect to: (a) Changes in the first two contracts under Parts C.1 tax structure have been introduced and C.2 hereof; are reflected in the 1990 budget. 3. Allocations for recurrent expenditures and (b) each contract under Parts B the public invest- ment program 1990-1992 are reflected in the 1990 budget. 4. Performance agreements for all 14 priority state-owned enter- prises have been updated and C.3 hereof, signed. 5. The 1989 program of pay reform for the procedures civil service and the 1989 program of integrating the payroll and management information systems have been implemented. 6. The cocoa producer price for 1989/90 has been set forth in paragraphs 2 and 3 of Appendix 1 announced and the cocoa producer price for 1990/91 has been proposed and transmitted to the Guidelines shall apply.Association. Special Account 1. For the purposes of this Schedule:

Notification and Advertising. The international community should be notified in a timely manner of the opportunity to bid. This will be done by advertising invitations to apply for inclusion in a bidder’s invitation list, to prequalify apply for prequalification, or bid for each contract estimated to cost $10,000,000 equivalent bid; such advertisements should be placed in at least one newspaper of general circulation in the Borrower’s country and, in addition, in at least one of the following forms: (i) a notice in the United Nations publication, Development Business; or (ii) an advertisement in a newspaper, periodical or more shall be advertised technical journal of wide international circulation; or (iii) a notice to local representatives of countries and territories referred to in accordance with the procedures applicable to large contracts under Guidelines, that are potential suppliers of the goods required." (b) The following is added at the end of paragraph 2.8 2.21 of the Guidelines. Part C: Other Procurement Procedures"As a further alternative, bidding documents may require the bidder to state the bid price in a single currency widely used in international trade and specified in the bidding documents." 1. International Shopping Office equipment(c) Paragraphs 2.55 and 2.56 of the Guidelines are deleted. (d) When contract award is delayed beyond the original bid validity period, including telephone exchanges, copiers, fax machines, and microcomputers, estimated to cost more than $50,000, but $300,000 equivalent or less per contract, such period may be procured under contracts awarded on the basis of international shopping procedures extended once, subject to and in accordance with the provisions of paragraphs 3.5 and 3.6 paragraph 2.59 of the Guidelines, by the minimum amount of time required to complete the evaluation, obtain necessary approvals and clearances and award the contract. The bid validity period may be extended a second time only if the bidding documents or the request for extension shall provide for appropriate adjustment of the bid price to reflect changes in the cost of inputs for the contract over the period of extension. Such an increase in the bid price shall not be taken into account in the bid evaluation. (e) In the procurement of goods in accordance with this paragraph 1, the Borrower shall use the relevant standard bidding documents issued by the Bank, with such modifications thereto as the Bank shall have agreed to be necessary for the purposes of the Loan. Where no relevant standard bidding documents have been issued by the Bank, the Borrower shall use bidding documents based on other internationally recognized standard forms agreed with the Bank. 2. National Shopping Telephones, local area networks wiring, library supplies, and office supplies, Contracts for the procurement of goods estimated to cost the equivalent of less than three million Dollars ($50,000 equivalent or less per contract and $900,000 equivalent or less 3,000,000) shall be awarded: (a) by purchasers required to follow the Borrower’s public procurement procedures for the importation of goods, on the basis of such procedures, provided that such procedures shall have been found acceptable by the Bank; and (b) by other purchasers, in the aggregate (which aggregate accordance with established commercial practice, provided that such contracts shall not apply in the case of goods financed under Part E of the Project), may be procured under contracts awarded on the basis of national shopping evaluation and comparison of quotations obtained from suppliers from at least two countries, except that direct contracting procedures in accordance with acceptable to the provisions of paragraphs Bank may be used where considered appropriate under paragraph 3.5 and 3.6 of the Guidelines. 3. Procurement Subject to the prior approval of Small Works Eligible works estimated not to exceed $75,000 equivalent per contractthe Bank, and not to exceed $600,000 in the aggregate, shall commonly traded commodities may be procured and awarded on the basis through organized international commodity markets or other channels of quotations obtained from three qualified domestic contractors in response to a written invitation. The invitation shall include a detailed description of the works, including basic specifications, the required completion date, a basic form of agreement competitive procurement acceptable to the Bank, and relevant drawings, where applicable. The award shall be made in accordance with procedures acceptable to the contractor who offers Bank. 4. With respect to each contract referred to in paragraph 1 of this Schedule, the lowest price quotation for Borrower shall furnish to the required workBank, and who has prior to the experience and resources submission to successfully complete the contract. Part D: Review by the Bank of Procurement Decisions 1. Procurement Planning Prior to the issuance first application for withdrawal of any invitations to prequalify funds from the Loan Account in respect of such contract, two conformed copies of such contract, together with the analysis of the respective bids and recommendations for bidding or to bid for contractsaward, a description of the proposed procurement plan for the Project shall be furnished to advertising and tendering procedures followed and such other information as the Bank for its review and approval, in accordance with the provisions of paragraph 1 of Appendix 1 to the Guidelines. Procurement of all goods and works shall be undertaken in accordance with such procurement plan as shall have been approved by the Bank, and with the provisions of said paragraph 1reasonably request. 25. Prior Review With respect to: (a) the first two contracts under Parts C.1 and C.2 hereof; and (b) to each contract under Parts B and C.3 hereof, the procedures set forth referred to in paragraphs 2 and 3 of Appendix this Schedule, the Borrower shall furnish to the Bank, prior to the submission to the Bank of the first application for withdrawal of funds from the Loan Account in respect thereof, such documentation and information as the Bank may reasonably request to support withdrawal applications in respect of such contract. 6. The provisions of the preceding paragraph 5 of this Schedule shall not apply to contracts on account of which withdrawals from the Loan Account are to be made on the basis of statements of expenditure. Actions Referred to in Paragraph 4 (b) of Schedule 1 to this Agreement 1. Offer for sale through auctions under the Guidelines shall applyNational Privatization Program established pursuant to Presidential Decree No. 1135, dated March 5, 1993, all of the Borrowerþs shares in the Borrowerþs grain storage facilities (elevators), except in those facilities which the Bank agrees are required to meet direct consumption requirements of the Borrowerþs governmentþs agencies and entities. 2. Adopt a plan to privatize fully, within one year, in each of the three operating regions of the Borrowerþs petroleum product distribution companies, at least 60 percent of objects in the retail distribution area and at least 50 percent of bulk terminals belonging to such companies, and initiate the implementation of such a plan. 3. Adopt in the Borrowerþs Council of Ministers a proposed land legislation for submission to the Borrowerþs parliament, reviewed with the Bank, covering, inter alia, land tenure, use and transfer. 4. Offer for sale through public auctions an average of 500 establishments and an average of 500 trucks included in the Borrowerþs Small Scale Privatization, established pursuant to Presidential Decree No. 1135, dated March 5, 1993, per calendar month, following April 30, 1995. 5. Offer for privatization through auctions against privatization investment coupons only, a majority ownership in an average of 150 majority state-owned enterprises designated for the Borrowerþs Mass Privatization Program, pursuant to Presidential Decree No. 1135, dated March 5, 1993, per calendar month, following April 30, 1995. 6. Adopt a plan, satisfactory to the Bank, to reduce the Borrowerþs ownership in firms included in the Borrowerþs Mass Privatization Program referred to in paragraph 5 of this Schedule 4, to less than 30 percent. 7. Fund the 1995 operations of the Borrowerþs Rehabilitation Trust, established pursuant to Presidential Decree No. 2154, dated March 29, 1995, in accordance with national budgetary appropriation; transfer the bank accounts of all enterprises assigned to the Rehabilitation Trust to such trust; and initiate legal proceedings for liquidation or other forms of debt resolution available under the Borrowerþs Decree (Law) on Bankruptcy No. 2173, dated April 7, 1995 against at least four

Notification and Advertising. The international community should be notified in a timely manner of the opportunity to bid. This will be done by advertising invitations to apply for inclusion in a bidder’s invitation list, to prequalify apply for prequalification, or to bid, such advertisements should be placed in at least one newspaper of general circulation in the Borrower’s country and, in addition, in at least one of the following forms: (i) a notice in the United Nations publication, Development Forum, Business Edition; or (ii) an advertisement in a newspaper, periodical or technical journal of wide international circulation; or (iii) a notice to local representatives of countries and territories referred to in the Guidelines, that are potential suppliers of the goods required." (b) The following is added at the end of paragraph 2.21 of the Guidelines: "As a further alternative, bidding documents may require the bidder to state the bid price in a single currency widely used in international trade and specified in the bidding documents." (c) Paragraphs 2.55 and 2.56 of the Guidelines are deleted. 2. Contracts for each contract goods estimated to cost the equivalent of less than $10,000,000 equivalent or more 2,000,000 each shall be advertised in accordance with the procedures applicable to large contracts under paragraph 2.8 of the Guidelines. Part C: Other Procurement Procedures 1. International Shopping Office equipment, including telephone exchanges, copiers, fax machines, and microcomputers, estimated to cost more than $50,000, but $300,000 equivalent or less per contract, may be procured under contracts awarded on the basis of international shopping the normal procurement procedures of the purchaser of such goods. 3. With respect to each contract referred to in accordance paragraph 1 of this Schedule, the Borrower shall furnish to the Association, prior to the submission to the Association of the first applica- tion for withdrawal of funds from the Credit Account and the Swiss Contribution Account in respect of such contract, two conformed copies of such contract, together with the analysis of the respective bids and recommendations for award, a description of the advertising and tendering procedures followed and such other information as the Association shall reasonably request. 4. With respect to each contract referred to in paragraph 2 of this Schedule, the Borrower shall furnish to the Association, prior to the submission to the Association of the first applica- tion for withdrawal of funds from the Credit Account and the Swiss Contribution Account in respect thereof, such documentation and information as the Association may reasonably request to support withdrawal applications in respect of such contract. 5. Notwithstanding the provisions of paragraphs 3.5 3 and 3.6 4 of this Schedule, where payments under a contract are to be made out of the Guidelines. 2. National Shopping Telephones, local area networks wiring, library supplies, and office supplies, estimated to cost $50,000 equivalent or less per contract and $900,000 equivalent or less in the aggregate (which aggregate shall not apply in the case of goods financed under Part E proceeds of the Project)Special Accounts, may the copies of such contract or the documentation and the information to be procured under contracts awarded on furnished to the basis of national shopping procedures in accordance with Association pursuant to the provisions of paragraphs 3.5 and 3.6 paragraph 3 or paragraph 4 of this Schedule, as the Guidelines. 3. Procurement of Small Works Eligible works estimated not to exceed $75,000 equivalent per contractcase may be, and not to exceed $600,000 in the aggregate, shall be procured and awarded on the basis of quotations obtained from three qualified domestic contractors in response to a written invitation. The invitation shall include a detailed description of the works, including basic specifications, the required completion date, a basic form of agreement acceptable to the Bank, and relevant drawings, where applicable. The award shall be made to the contractor who offers the lowest price quotation for the required work, and who has the experience and resources to successfully complete the contract. Part D: Review by the Bank of Procurement Decisions 1. Procurement Planning Prior to the issuance of any invitations to prequalify for bidding or to bid for contracts, the proposed procurement plan for the Project shall be furnished to the Bank for its review Association as part of the evidence required under paragraph 4 of Schedule 4 to this Agreement. 6. The provisions of the preceding paragraphs 3, 4 and approval, 5 shall not apply to contracts on account of which the Association has authorized withdrawals from the Credit Account and the Swiss Contribution Account on the basis of statements of expenditure. Actions Referred to in Paragraph 4 (b) of Schedule 1 to this Agreement The Borrower has: (i) (a) expanded the existing Open General License Facility in accordance with the provisions a list of paragraph 1 of Appendix 1 to the Guidelines. Procurement of all goods and works shall be undertaken in accordance with such procurement plan as shall have been approved by the Bank, and agreed with the provisions of said paragraph 1. 2. Prior Review With respect to: (a) the first two contracts under Parts C.1 and C.2 hereofAssociation; and (b) each contract under Parts B and C.3 hereof, agreed with the procedures set forth Association on a list of goods to be included in paragraphs 2 and 3 a further expansion of Appendix 1 to the Guidelines shall apply.facility; and

Notification and Advertising. The international community should be notified in a timely manner of the opportunity to bid. This will be done by advertising invitations to apply for inclusion in a bidder’s invitation list, to prequalify apply for prequalification, or to bid; such advertisements should be placed in at least one newspaper of general circulation in the Borrower’s country and, in addition, in at least one of the following forms: (i) a notice in the United Nations publication, Development Business; or (ii) an advertisement in a newspaper, periodical or technical journal of wide international circulation; or (iii) a notice to local representatives of countries and territories referred to in the Guidelines, that are potential suppliers of the goods required." (b) The following is added at the end of paragraph 2.21 of the Guidelines: "As a further alternative, bidding documents may require the bidder to state the bid price in a single currency widely used in international trade and specified in the bidding documents." (c) Paragraphs 2.55 and 2.56 of the Guidelines are deleted. 2. Contracts for each contract goods estimated to cost the equivalent of less than $10,000,000 equivalent or more 5,000,000 each shall be advertised in accordance with the procedures applicable to large contracts under paragraph 2.8 of the Guidelines. Part C: Other Procurement Procedures 1. International Shopping Office equipment, including telephone exchanges, copiers, fax machines, and microcomputers, estimated to cost more than $50,000, but $300,000 equivalent or less per contract, may be procured under contracts awarded on the basis of international shopping the normal procurement procedures of the purchaser of such goods. 3. With respect to each contract referred to in paragraph 1 of this Schedule, the Borrower shall furnish to the Bank, prior to the submission to the Bank of the first application for withdrawal of funds from the Loan Account in respect of such contract, two conformed copies of such contract, together with the analysis of the respective bids and recommendations for award, a description of the advertising and tendering procedures followed and such other information as the Bank shall reasonably request. 4. With respect to each contract referred to in paragraph 2 of this Schedule, the Borrower shall furnish to the Bank, prior to the submission to the Bank of the first application for withdrawal of funds from the Loan Account in respect thereof, such documenta- tion and information as the Bank may reasonably request to support withdrawal applications in respect of such contract. 5. Notwithstanding the provisions of paragraphs 3 and 4 of this Schedule, where payments under a contract are to be made out of the proceeds of the Special Account, the copies of such contract or the documentation and the information to be furnished to the Bank pursuant to the provisions of paragraph 3 or paragraph 4 of this Schedule, as the case may be, shall be furnished to the Bank as part of the evidence required under paragraph 4 of Schedule 5 to this Agreement. 6. The provisions of the preceding paragraphs 3, 4 and 5 shall not apply to contracts on account of which the Bank has authorized withdrawals from the Loan Account on the basis of statements of expenditure. Actions Referred to in Paragraph 3 (b) of Schedule 1 to this Agreement 1. Enterprise Performance Plans (a) Implementation of the enterprise performance plans referred to in Section 5.01 (a) (i) of this Agreement in accordance with their terms. (b) Establishment of enterprise performance plans, which have been approved by the Borrower and the enterprises referred to in Section 5.01 (a) (ii) of this Agreement and the principal elements of which are satisfactory to the Bank. 2. Divestiture Completion of all arrangements required to ensure the efficient divestiture of government holdings in the enterprises selected pursuant to Section 5.01 (b) (ii) of this Agreement. 3. Public Enterprise Restructuring Fund (a) Commitment, in accordance with the Program, of an amount equivalent at least to $35,000,000 of the amounts allocated to the Public Enterprise Restructuring Fund pursuant to Section 5.01 (c) of this Agreement. (b) Allocation to said Fund, in addition to the amounts referred to in Section 5.01 (c) of this Agreement, of an amount equivalent at least to $60,000,000. Special Account 1. For the purposes of this Schedule: (a) the term "eligible expenditures" means expenditures in respect of the reasonable cost of goods to be financed out of the proceeds of the Loan in accordance with the provisions of paragraphs 3.5 and 3.6 of the Guidelines. 2. National Shopping Telephones, local area networks wiring, library supplies, and office supplies, estimated to cost $50,000 equivalent or less per contract and $900,000 equivalent or less in the aggregate (which aggregate shall not apply in the case of goods financed under Part E of the Project), may be procured under contracts awarded on the basis of national shopping procedures in accordance with the provisions of paragraphs 3.5 and 3.6 of the Guidelines. 3. Procurement of Small Works Eligible works estimated not to exceed $75,000 equivalent per contract, and not to exceed $600,000 in the aggregate, shall be procured and awarded on the basis of quotations obtained from three qualified domestic contractors in response to a written invitation. The invitation shall include a detailed description of the works, including basic specifications, the required completion date, a basic form of agreement acceptable to the Bank, and relevant drawings, where applicable. The award shall be made to the contractor who offers the lowest price quotation for the required work, and who has the experience and resources to successfully complete the contract. Part D: Review by the Bank of Procurement Decisions 1. Procurement Planning Prior to the issuance of any invitations to prequalify for bidding or to bid for contracts, the proposed procurement plan for the Project shall be furnished to the Bank for its review and approval, in accordance with the provisions of paragraph 1 of Appendix Schedule 1 to the Guidelines. Procurement of all goods and works shall be undertaken in accordance with such procurement plan as shall have been approved by the Bank, and with the provisions of said paragraph 1. 2. Prior Review With respect to: (a) the first two contracts under Parts C.1 and C.2 hereofthis Agreement; and (b) each contract under Parts B and C.3 hereof, the procedures set forth in paragraphs 2 and 3 of Appendix 1 to the Guidelines shall apply.and

Notification and Advertising. The international community should be notified in a timely manner of the opportunity to bid. This will be done by advertising invitations to apply for inclusion in a bidder’s invitation list, to prequalify apply for prequalification, or to bid; such advertisements should be placed in at least one newspaper of general circulation in the Borrower’s country and, in addition, in at least one of the following forms: (i) a notice in the United Nations publication, Development Forum, Business Edition; or (ii) an advertisement in a newspaper, periodical or technical journal of wide international circulation; or (iii) a notice to local representatives of countries and territories referred to in the Guidelines, that are potential suppliers of the goods required." (b) The following is added at the end of paragraph 2.21 of the Guidelines: "As a further alternative, bidding documents may require the bidder to state the bid price in a single currency widely used in international trade and specified in the bidding documents." (c) Paragraphs 2.55 and 2.56 of the Guidelines are deleted. 2. Contracts for each contract the procurement of goods estimated to cost the equivalent of less than $10,000,000 equivalent or more 5,000,000 shall be advertised awarded: (a) by purchasers required to follow the Borrower’s public procurement procedures for the importation of goods, on the basis of such procedures, provided that such procedures shall have been found acceptable by the Association; and (b) by other purchasers, in accordance with the procedures applicable to large established commercial practice, provided that such contracts under paragraph 2.8 of the Guidelines. Part C: Other Procurement Procedures 1. International Shopping Office equipment, including telephone exchanges, copiers, fax machines, and microcomputers, estimated to cost more than $50,000, but $300,000 equivalent or less per contract, may shall be procured under contracts awarded on the basis of international shopping evaluation and comparison of quotations obtained from suppliers from at least two countries, except that direct contracting procedures in accordance with acceptable to the provisions of paragraphs 3.5 and 3.6 of the Guidelines. 2. National Shopping Telephones, local area networks wiring, library supplies, and office supplies, estimated to cost $50,000 equivalent or less per contract and $900,000 equivalent or less in the aggregate (which aggregate shall not apply in the case of goods financed under Part E of the Project), Association may be procured used where considered appropriate under contracts awarded on the basis of national shopping procedures in accordance with the provisions of paragraphs paragraph 3.5 and 3.6 of the Guidelines. 3. Procurement Subject to the prior approval of Small Works Eligible works estimated not the Association, commonly traded commodities may be procured through organized international commodity markets or other channels of competitive procurement acceptable to exceed $75,000 equivalent per the Association, in accordance with procedures acceptable to the Association. 4. With respect to each contract referred to in paragraph 1 of this Schedule, the Borrower shall furnish to the Association, prior to the submission to the Association of the first application for withdrawal of funds from the Credit Account in respect of such contract, two conformed copies of such contract, together with the analysis of the respective bids and not to exceed $600,000 in the aggregaterecommendations for award, shall be procured and awarded on the basis of quotations obtained from three qualified domestic contractors in response to a written invitation. The invitation shall include a detailed description of the worksadvertising and tendering procedures followed and such other information as the Association shall reasonably request. Where payments under a contract are to be made out of the proceeds of the Special Account, including basic specifications, such copies together with the other information required completion date, a basic form of agreement acceptable to be furnished to the Bank, and relevant drawings, where applicable. The award shall be made Association pursuant to the contractor who offers the lowest price quotation for the required work, and who has the experience and resources to successfully complete the contract. Part D: Review by the Bank of Procurement Decisions 1. Procurement Planning Prior to the issuance of any invitations to prequalify for bidding or to bid for contracts, the proposed procurement plan for the Project this paragraph shall be furnished to the Bank for its review and approval, in accordance with Association as part of the provisions evidence required under paragraph 4 of paragraph 1 of Appendix 1 Schedule 4 to the Guidelines. Procurement of all goods and works shall be undertaken in accordance with such procurement plan as shall have been approved by the Bank, and with the provisions of said paragraph 1this Agreement. 25. Prior Review With respect to: (a) the first two contracts under Parts C.1 and C.2 hereof; and (b) to each contract under Parts B and C.3 hereof, the procedures set forth referred to in paragraphs 2 and 3 of Appendix 1 this Schedule, the Borrower shall furnish to the Guidelines Association, prior to the submission to the Association of the first application for withdrawal of funds from the Credit Account in respect thereof, such documentation and information as the Association may reasonably request to support withdrawal applications in respect of such contract. Where payments under a contract are to be made out of the proceeds of the Special Account, the documentation and the information to be furnished to the Association pursuant to the provisions of this paragraph shall applybe furnished to the Association as part of the evidence required under paragraph 4 of Schedule 4 to this Agreement. 6. The provisions of the preceding paragraph 5 of this Schedule shall not apply to contracts on account of which withdrawals from the Credit Account are to be made on the basis of statements of expenditure. 1. The Borrower has approved and published an operative tariff schedule for Fiscal Year 1993-94 specifying, inter alia, the rates of customs duty, value added tax and supplementary excise duty in accordance with criteria satisfactory to the Association. 2. The Borrower has eliminated the fee for license permits and letter of credit authorizations. 3. The Borrower has abolished quantitative restrictions on imports of all items and eliminated all import restrictions other than pre-shipment certification requirements and restrictions based on non-commercial reasons satisfactory to the Association. 4. The Borrower has continued to make progress, satisfactory to the Association, in implementing the export development strategy referred to in paragraph (d) of Section 5.01 of this Agreement. 5. The Borrower has continued to make progress, satisfactory to the Association, in implementing the plan of action for industrial development referred to in paragraph

Notification and Advertising. The international community should be notified in a timely manner of the opportunity to bid. This will be done by advertising invitations to apply for inclusion in a bidder’s invitation list, to prequalify apply for prequalification, or to bid; such advertisements should be placed in at least one newspaper of general circulation in the Borrower’s country and, in addition, in at least one of the following forms: (i) a notice in the United Nations publication, Development Forum, Business Edition; or (ii) an advertisement in a newspaper, periodical or technical journal of wide international circulation; or (iii) a notice to local representatives of countries and territories referred to in the Guidelines, that are potential suppliers of the goods required." (b) The following is added at the end of paragraph 2.21 of the Guidelines: "As a further alternative, bidding documents may require the bidder to state the bid price in a single currency widely used in international trade and specified in the bidding documents." (c) Paragraphs 2.55 and 2.56 of the Guidelines are deleted. 2. Contracts for each contract the procurement of goods estimated to cost the equivalent of less than $10,000,000 equivalent or more 5,000,000 shall be advertised awarded: (a) by purchasers required to follow the Borrower’s public procurement procedures for the importation of goods, on the basis of such procedures, provided that such procedures shall have been found acceptable by the Association; (b) by other purchasers, in accordance with the procedures applicable to large established commercial practice, provided that such contracts under paragraph 2.8 of the Guidelines. Part C: Other Procurement Procedures 1. International Shopping Office equipment, including telephone exchanges, copiers, fax machines, and microcomputers, estimated to cost more than $50,000, but $300,000 equivalent or less per contract, may shall be procured under contracts awarded on the basis of international shopping evaluation comparison of quotations obtained from suppliers from at least two countries, except that direct contracting procedures in accordance with acceptable to the provisions of paragraphs Association may be used where considered appropriate under paragraph 3.5 and 3.6 of the Guidelines.; and 2. National Shopping Telephones(c) by any purchasers, local area networks wiringfor the supply of commodities, library supplies, and office supplies, estimated to cost $50,000 equivalent or less per contract and $900,000 equivalent or less in the aggregate (which aggregate shall not apply in the case of goods financed under Part E of the Project), may be procured under contracts awarded on the basis of national shopping procedures in accordance with the provisions evaluation and comparison of paragraphs 3.5 and 3.6 of the Guidelinesquotations obtained from more than one supplier. 3. Procurement With respect to each contract referred to in paragraph 1 of Small Works Eligible works estimated not this Schedule, the Borrower shall furnish to exceed $75,000 equivalent per the Association, prior to the submission to the Association of the first application for withdrawal of funds from the Credit Account and the Swiss Contribution Account in respect of such contract, two conformed copies of such contract, together with the analysis of the respective bids and not to exceed $600,000 in the aggregaterecommendations for award, shall be procured and awarded on the basis of quotations obtained from three qualified domestic contractors in response to a written invitation. The invitation shall include a detailed description of the worksadvertising and tendering procedures followed and such other information as the Association shall reasonably request. Where payments under a contract are to be made out of the proceeds of the Special Account, including basic specifications, such copies together with the other information required completion date, a basic form of agreement acceptable to be furnished to the Bank, and relevant drawings, where applicable. The award shall be made Association pursuant to the contractor who offers the lowest price quotation for the required work, and who has the experience and resources to successfully complete the contract. Part D: Review by the Bank of Procurement Decisions 1. Procurement Planning Prior to the issuance of any invitations to prequalify for bidding or to bid for contracts, the proposed procurement plan for the Project this paragraph shall be furnished to the Bank Association as part of the evidence required under paragraph 4 of Schedule 4 to this Agreement. 4. With respect to each contract referred to in paragraph 2 of this Schedule, the Borrower shall furnish to the Association, prior to the submission to the Association of the first application for its review withdrawal of funds from the Credit Account and approvalthe Swiss Contribution Account in respect thereof, such documentation and information as the Association may reasonably request to support withdrawal applications in accordance with respect of such contract. Where payments under a contract are to be made out of the proceeds of the Special Account, the documentation and the information to be furnished to the Association pursuant to the provisions of this paragraph 1 of Appendix 1 shall be furnished to the GuidelinesAssociation as part of the evidence required under paragraph 4 of Schedule 4 to this Agreement. 5. Procurement of all goods and works shall be undertaken in accordance with such procurement plan as shall have been approved by the Bank, and with the The provisions of said the preceding paragraph 1. 24 of this Schedule shall not apply to contracts on account of which the Association has authorized withdrawals from the Credit Account and the Swiss Contribution Account on the basis of statements of expenditure. Prior Review With respect to: Actions Referred to in Paragraphs 4 (a) the first two contracts under Parts C.1 (iii) and C.2 hereof; and 4 (b) each contract under Parts B and C.3 hereof, the procedures set forth in paragraphs 2 and 3 (iii) of Appendix Schedule 1 to this Agreement A. For the Guidelines shall apply.purposes of release of the Second Tranche The following actions have been taken by the Borrower and are satisfactory to the Association: 1. (a) A three-year rolling public investment program for 1992-1994 has been approved and the applicable portion thereof has been carried out as approved; and

Notification and Advertising. The international community should be notified in a timely manner of the opportunity to bid. This will be done by advertising invitations to apply for inclusion in a bidder’s invitation list, to apply for prequalification, or to bid; such advertisements should be placed in at least one newspaper of general circulation in the Borrower’s country and, in addition, in at least one of the following forms: (i) a notice in the United Nations publication, Development Business; or (ii) an advertisement in a newspaper, periodical or technical journal of wide international circulation; or (iii) a notice to local representatives of countries and territories referred to in the Guidelines, that are potential suppliers of the goods required." (b) The following is added at the end of paragraph 2.21 of the Guidelines: "As a further alternative, bidding documents may require the bidder to state the bid price in a single currency widely used in international trade and specified in the bidding documents." (c) Paragraphs 2.55 and 2.56 of the Guidelines are deleted. (d) For fixed-price contracts, the invitation to prequalify or bid referred to in paragraph 2.13 of the Guidelines shall provide that, when contract award is delayed beyond the original bid validity period, the successful bidder’s bid price will be increased for each contract week of delay by two predisclosed correction factors acceptable to the Bank, one to be applied to all foreign currency components and the other to the local currency component of the bid price. Such an increase shall not be taken into account in the bid evaluation. (e) In the procurement of goods in accordance with this paragraph, the Borrower shall use the relevant standard bidding documents issued by the Bank, with such modifications thereto as the Bank shall have agreed to be necessary for the purposes of the Project. Where no relevant standard bidding documents have been issued by the Bank, the Borrower shall use bidding documents based on other internationally recognized standard forms agreed with the Bank. 2. Contracts for the procurement of goods under Category (2) of Schedule 1 to this Agreement: (a) estimated to cost the equivalent of less than $10,000,000 1,000,000 shall be awarded in accordance with established commercial practices; and (b) estimated to cost the equivalent of $1,000,000 or more shall be advertised in accordance with the procedures applicable to large contracts under paragraph 2.8 of the Guidelines. Part C: Other Procurement Procedures 1. International Shopping Office equipment, including telephone exchanges, copiers, fax machines, and microcomputers, estimated to cost more than $50,000, but $300,000 equivalent or less per contract, may be procured under contracts awarded on the basis of international shopping procedures in accordance with the provisions of paragraphs 3.5 and 3.6 the preceding paragraph 1 of the Guidelines. 2. National Shopping Telephones, local area networks wiring, library supplies, and office supplies, estimated to cost $50,000 equivalent or less per contract and $900,000 equivalent or less in the aggregate (which aggregate shall not apply in the case of goods financed under Part E of the Project), may be procured under contracts awarded on the basis of national shopping procedures in accordance with the provisions of paragraphs 3.5 and 3.6 of the Guidelinesthis Schedule. 3. Procurement of Small Works Eligible works estimated not Subject to exceed $75,000 equivalent per contract, and not to exceed $600,000 in the aggregate, shall be procured and awarded on the basis of quotations obtained from three qualified domestic contractors in response to a written invitation. The invitation shall include a detailed description prior approval of the worksBank, including basic specifications, the required completion date, a basic form commonly traded commodities maybe procured through organized international commodity markets or other channels of agreement competitive procurement acceptable to the Bank, and relevant drawings, where applicable. The award shall be made in accordance with procedures acceptable to the contractor who offers Bank. 4. With respect to each contract referred to in paragraphs 1 (i) and 2 (b) of this Schedule, the lowest price quotation for Borrower shall furnish to the required workBank, and who has prior to the experience and resources submission to successfully complete the contract. Part D: Review by the Bank of Procurement Decisions 1the first application for withdrawal of funds from the Loan Account in respect of such contract, two conformed copies of such contract, together with the analysis of the respective bids and recommendations for award, a description of the advertising and tendering procedures followed and such other information as the Bank shall reasonably request. Procurement Planning Prior Where payments under a contract are to be made out of the proceeds of the Special Account, such copies together with the other information required to be furnished to the issuance of any invitations Bank pursuant to prequalify for bidding or to bid for contracts, the proposed procurement plan for the Project this paragraph shall be furnished to the Bank as part of the evidence required under paragraph 4 of Schedule 4 to this Agreement. 5. With respect to each contract referred to in paragraphs 1 (ii), 2 (a) and 3 of this Schedule, the Borrower shall furnish to the Bank, prior to the submission to the Bank of the first application for its review withdrawal of funds from the Loan Account in respect thereof, such documentation and approvalinformation as the Bank may reasonably request to support withdrawal applications in respect of such contract. Where payments under a contract are to be made out of the proceeds of the Special Account, in accordance with the documentation and the information to be furnished to the Bank pursuant to the provisions of this paragraph 1 of Appendix 1 shall be furnished to the GuidelinesBank as part of the evidence required under paragraph 4 of Schedule 4 to this Agreement. 6. Procurement of all goods and works shall be undertaken in accordance with such procurement plan as shall have been approved by the Bank, and with the The provisions of said the preceding paragraph 5 of this Schedule shall not apply to contracts on account of which withdrawals from the Loan Account are to be made on the basis of statements of expenditure. Special Account 1.. For the purposes of this Schedule: 2. Prior Review With respect to: (a) the first two contracts under Parts C.1 term "eligible expenditures" means expenditures in respect of the reasonable cost of goods required during the execution of the Program and C.2 hereof; and to be financed out of the proceeds of the Loan allocated from time to time to Category (b1) each contract under Parts B and C.3 hereof, of the procedures set forth table in paragraphs 2 and 3 of Appendix Schedule 1 to this Agreement and to be disbursed pursuant to the Guidelines shall apply.provisions of Section 2.02 of, Schedule 1 to, this Agreement; and

Notification and Advertising. The international community should be notified in a timely manner of the opportunity to bid. This will be done by advertising invitations to apply for inclusion in a bidder’s invitation list, to prequalify apply for pre-qualification, or to bid; such advertisements should be placed in at least one newspaper of general circulation in the Borrower’s country and, in addition, in at least one of the following forms: (i) a notice in the United Nations publication, Development Forum, Business Edition; or (ii) an advertisement in a newspaper, periodical or technical journal of wide international circula- tion; or (iii) a notice to local representatives of countries and territories referred to in the Guidelines, that are potential suppliers of the goods re- quired." (b) The following is added at the end of paragraph 2.21 of the Guidelines: "As a further alternative, bidding documents may require the bidder to state the bid price in a single currency widely used in international trade and specified in the bidding documents." (c) Paragraphs 2.55 and 2.56 of the Guidelines are deleted. 2. Contracts for each contract the procurement of goods estimated to cost the equivalent of less than five million dollars ($10,000,000 equivalent or more 5,000,000) shall be advertised awarded: (a) By purchasers required to follow the Borrower’s public procurement procedures for the importation of goods, on the basis of such procedures, provided that such procedures shall have been found acceptable by the Bank; and (b) By other purchasers, in accordance with the procedures applicable to large established commercial practice, provided that such contracts under paragraph 2.8 of the Guidelines. Part C: Other Procurement Procedures 1. International Shopping Office equipment, including telephone exchanges, copiers, fax machines, and microcomputers, estimated to cost more than $50,000, but $300,000 equivalent or less per contract, may shall be procured under contracts awarded on the basis of international shopping evaluation comparison of quotations obtained from suppliers from at least two (2) countries, except that direct contracting procedures in accordance with acceptable to the provisions of paragraphs 3.5 and 3.6 of the Guidelines. 2. National Shopping Telephones, local area networks wiring, library supplies, and office supplies, estimated to cost $50,000 equivalent or less per contract and $900,000 equivalent or less in the aggregate (which aggregate shall not apply in the case of goods financed under Part E of the Project), Bank may be procured used where considered appropriate under contracts awarded on the basis of national shopping procedures in accordance with the provisions of paragraphs paragraph 3.5 and 3.6 of the Guidelines. 3. Procurement Subject to the prior approval of Small Works Eligible works estimated not to exceed $75,000 equivalent per contractthe Bank, and not to exceed $600,000 in the aggregate, shall commonly traded commodities may be procured and awarded on the basis through organized international commodity markets or other channels of quotations obtained from three qualified domestic contractors in response to a written invitation. The invitation shall include a detailed description of the works, including basic specifications, the required completion date, a basic form of agreement competitive procurement acceptable to the Bank, and relevant drawings, where applicable. The award shall be made in accordance with procedures acceptable to the contractor who offers Bank. 4. With respect to each contract referred to in paragraph 1 of this Schedule, the lowest price quotation for Borrower shall furnish to the required workBank, and who has prior to the experience and resources submission to successfully complete the contract. Part D: Review by the Bank of Procurement Decisions 1. Procurement Planning Prior to the issuance first application for withdrawal of any invitations to prequalify funds from the Loan Account in respect of such contract, two (2) conformed copies of such contract, together with the analysis of the respective bids and recommendations for bidding or to bid for contractsaward, a description of the proposed procurement plan for the Project shall be furnished to advertising and tendering procedures followed and such other informa- tion as the Bank for its review and approval, in accordance with the provisions of paragraph 1 of Appendix 1 to the Guidelines. Procurement of all goods and works shall be undertaken in accordance with such procurement plan as shall have been approved by the Bank, and with the provisions of said paragraph 1reasonably request. 25. Prior Review With respect to: (a) the first two contracts under Parts C.1 and C.2 hereof; and (b) to each contract under Parts B and C.3 hereof, the procedures set forth referred to in paragraphs 2 and 3 of Appendix this Schedule, the Borrower shall furnish to the Bank, prior to the submission to the Bank of the first application for withdrawal of funds from the Loan Account in respect thereof, such documentation and information as the Bank may reasonably request to support withdrawal applications in respect of such contract. 6. The provisions of the preceding paragraph 5 of this Schedule shall not apply to contracts on account of which withdrawals from the Loan Account are to be made on the basis of statements of expendi- ture. Actions Referred to in Paragraph 4 (b) of Schedule 1 to this Agreement 1. Continued maintenance by the Guidelines Borrower of a macro-economic framework consistent with the objectives of the Program, as determined on the basis of indicators acceptable to the Bank. 2. Completion of all actions (including offering for sale) neces- sary towards the transfer to private persons of title to the capital presently owned by, or on behalf of, the Borrower in at least ninety- five (95) Government Corporations the aggregate assets of which shall applyrepresent at least seventy-five percent (75%) of the value, in Fiscal Year 1985, of the Borrower’s assets of Government Corporations which have been approved for privatization under the Program. 3. The Borrower has taken all action necessary, including the sub- mission to its Congress of required legislation, to eliminate all quantitative restrictions on imports of all goods, except for those goods which have been previously specified in agreement with the Bank. 4. The Borrower has proposed for adoption by its Congress draft legislation, satisfactory to the Bank, providing for the change in the method of computation of import tariffs and related structures to one based on fair market valuation, or such other valuation acceptable to the Bank. 5. The Borrower has adopted the Energy Sector Plan, satisfactory to the Bank, and has implemented all energy related price reform measures as scheduled in said Plan. 6. The Borrower has proposed for adoption by its Congress draft legislation, satisfactory to the Bank and certified as priority legislation by the Borrower’s Executive, reforming the Borrower’s laws on land and maritime transport. 7. The Central Bank has: (a) adopted policy resolutions, satis- factory to the Bank, enabling the Central Bank to achieve and main- tain a positive level of net foreign assets; and (b) the Central Bank has achieved a positive level of net foreign assets. 8. The Borrower has proposed for adoption by its Congress measures (including budgetary action), satisfactory to the Bank, providing for the unencumbered payment to, or transfer of debt from, the Central Bank in the amount of at least Peso 9.99 billion.

Notification and Advertising. The international community should be notified in a timely manner of the opportunity to bid. This will be done by advertising invitations to apply for inclusion in a bidder’s invitation list, to prequalify apply for prequalification, or to bid; such advertisements should be placed in at least one newspaper of general circulation in the Borrower’s country and, in addition, in at least one of the following forms: (i) a notice in the United Nations publication, Development Business; or (ii) an advertisement in a newspaper, periodical or technical journal of wide international circulation; or (iii) a notice to local representatives of countries and territories referred to in the Guidelines, that are potential suppliers of the goods required." (b) The following is added at the end of paragraph 2.21 of the Guidelines: "As a further alternative, bidding documents may require the bidder to state the bid price in a single currency widely used in international trade and specified in the bidding documents." (c) Paragraphs 2.55 and 2.56 of the Guidelines are deleted. 2. Contracts for each contract the procurement of goods estimated to cost the equivalent of less than $10,000,000 equivalent or more 5,000,000 shall be advertised awarded: (a) by purchasers subject to the Guarantor’s public procurement procedures for the importation of goods, on the basis of such procedures, provided that such procedures shall have been found acceptable by the Bank; or (b) by other purchasers, in accordance with the procedures applicable to large established commercial practice, provided that such contracts under paragraph 2.8 of the Guidelines. Part C: Other Procurement Procedures 1. International Shopping Office equipment, including telephone exchanges, copiers, fax machines, and microcomputers, estimated to cost more than $50,000, but $300,000 equivalent or less per contract, may shall be procured under contracts awarded on the basis of international shopping procedures in accordance with the provisions evaluation and comparison of paragraphs quotations obtained from suppliers from at least two countries, except where direct contracting is permitted under paragraph 3.5 and 3.6 of the Guidelines. 2. National Shopping Telephones, local area networks wiring, library supplies, and office supplies, estimated to cost $50,000 equivalent or less per contract and $900,000 equivalent or less in the aggregate (which aggregate shall not apply in the case of goods financed under Part E of the Project), may be procured under contracts awarded on the basis of national shopping procedures in accordance with the provisions of paragraphs 3.5 and 3.6 of the Guidelines. 3. Procurement With respect to each contract referred to in paragraph 1 of Small Works Eligible works estimated not to exceed $75,000 equivalent per contract, and not to exceed $600,000 in the aggregate, shall be procured and awarded on the basis of quotations obtained from three qualified domestic contractors in response to a written invitation. The invitation shall include a detailed description of the works, including basic specificationsthis Schedule, the required completion date, a basic form of agreement acceptable Borrower shall furnish to the Bank, and relevant drawings, where applicable. The award shall be made prior to the contractor who offers the lowest price quotation for the required work, and who has the experience and resources submission to successfully complete the contract. Part D: Review by the Bank of Procurement Decisionsthe first application for withdrawal of funds from the Loan Account in respect of such contract, two conformed copies of such contract, together with the analysis of the respective bids and recommendations for award, a description of the advertising and tendering procedures followed and such other information as the Bank shall reasonably request. 14. Procurement Planning Prior With respect to each contract referred to in paragraph 2 of this Schedule, the Borrower shall furnish to the issuance Bank, prior to the submission to the Bank of any invitations the first application for withdrawal of funds from the Loan Account in respect thereof, such documentation and information as the Bank may reasonably request to prequalify for bidding or support withdrawal applications in respect of such contract. 5. Notwithstanding the provisions of paragraphs 3 and 4 of this Schedule, where payments under a contract are to bid for contractsbe made out of the proceeds of the Special Account, the proposed procurement plan for copies of such contract or the Project documentation and the information to be furnished to the Bank pursuant to the provisions of paragraph 3 or paragraph 4 of this Schedule, as the case may be, shall be furnished to the Bank for its review as part of the evidence required under paragraph 4 of Schedule 4 to this Agreement. 6. The provisions of the preceding paragraphs 3, 4 and approval, 5 shall not apply to contracts on account of which the Bank has authorized withdrawals from the Loan Account on the basis of statements of expenditure. SCHEDULE 4 Special Account 1. For the purposes of this Schedule: (a) the term "eligible expenditures" means expenditures in respect of the reasonable cost of goods required during the execution of the Program and to be financed out of the proceeds of the Loan in accordance with the provisions of paragraph 1 of Appendix Schedule 1 to the Guidelines. Procurement of all goods and works shall be undertaken in accordance with such procurement plan as shall have been approved by the Bank, and with the provisions of said paragraph 1. 2. Prior Review With respect to: (a) the first two contracts under Parts C.1 and C.2 hereofthis Agreement; and (b) each contract under Parts B and C.3 hereof, the procedures set forth in paragraphs 2 and 3 of Appendix 1 to the Guidelines shall apply.and

Notification and Advertising. The international community should be notified in a timely manner of the opportunity to bid. This will be done by advertising invitations to apply for inclusion in a bidder’s invitation list, to prequalify apply for prequalification, or to bid; such advertisements should be placed in at least one newspaper of general circulation in the Borrower’s country and, in addition, in at least one of the following forms: (i) a notice in the United Nations publication, Development Business; or (ii) an advertisement in a newspaper, periodical or technical journal of wide international circulation; or (iii) a notice to local representatives of countries and territories referred to in the Guidelines, that are potential suppliers of the goods required." (b) The following is added at the end of paragraph 2.21 of the Guidelines: "As a further alternative, bidding documents may require the bidder to state the bid price in a single currency widely used in international trade and specified in the bidding documents." (c) Paragraphs 2.55 and 2.56 of the Guidelines are deleted. 2. Subject to paragraph 3 below, contracts for each contract the procurement of goods estimated to cost the equivalent of less than $10,000,000 equivalent or more 5,000,000 shall be advertised awarded: (a) by purchasers required to follow the Borrower’s public procurement procedures for the importation of goods, on the basis of such procedures, provided that such procedures shall have been found acceptable by the Bank; and (b) by other purchasers, in accordance with the procedures applicable to large established commercial practice, provided that such contracts under paragraph 2.8 of the Guidelines. Part C: Other Procurement Procedures 1. International Shopping Office equipment, including telephone exchanges, copiers, fax machines, and microcomputers, estimated to cost more than $50,000, but $300,000 equivalent or less per contract, may shall be procured under contracts awarded on the basis of international shopping evaluation and comparison of quotations obtained from suppliers, except that direct contracting procedures in accordance with acceptable to the provisions of paragraphs 3.5 and 3.6 of the Guidelines. 2. National Shopping Telephones, local area networks wiring, library supplies, and office supplies, estimated to cost $50,000 equivalent or less per contract and $900,000 equivalent or less in the aggregate (which aggregate shall not apply in the case of goods financed under Part E of the Project), Bank may be procured used where considered appropriate under contracts awarded on the basis of national shopping procedures in accordance with the provisions of paragraphs paragraph 3.5 and 3.6 of the Guidelines. 3. Procurement Subject to the prior approval of Small Works Eligible works estimated not to exceed $75,000 equivalent per contractthe Bank, and not to exceed $600,000 in the aggregate, shall commonly traded commodities may be procured and awarded on the basis through organized international commodity markets or other channels of quotations obtained from three qualified domestic contractors in response to a written invitation. The invitation shall include a detailed description of the works, including basic specifications, the required completion date, a basic form of agreement competitive procurement acceptable to the Bank, and relevant drawings, where applicable. The award shall be made to the contractor who offers the lowest price quotation for the required work, and who has the experience and resources to successfully complete the contract. Part D: Review by the Bank of Procurement Decisions 1. Procurement Planning Prior to the issuance of any invitations to prequalify for bidding or to bid for contracts, the proposed procurement plan for the Project shall be furnished to the Bank for its review and approval, in accordance with the provisions of paragraph 1 of Appendix 1 procedures acceptable to the Guidelines. Procurement of all goods and works shall be undertaken in accordance with such procurement plan as shall have been approved by the Bank; provided, and with the provisions of said paragraph 1. 2. Prior Review With respect tohowever, that: (a) in respect of petroleum imports under existing contracts entered into with oil suppliers, the first two contracts under Parts C.1 Bank shall finance out of the Loan an amount not to exceed, per unit, the average between lower and C.2 hereofhigher FOB (free on board) prices as reflected in the Xxxxx’x Oilgram for the US Gulf Coast or the Caribbean, as applicable, for the relevant date of loading (with due adjustment for type and quality of crude or petroleum product) plus the ocean freight rates that would apply to the largest tankers that can be handled at the receiving terminal, insurance and inspection costs, and ocean losses allowances; and or (b) in respect of other commodity imports under existing contracts entered into with the corresponding suppliers, the Bank shall finance out of the Loan an amount not to exceed the average FOB (free on board) price posted (for the commodity in question and for the relevant date of shipment) by a commodity exchange acceptable to the Borrower and the Bank plus the additional costs referred to above, if applicable. 4. With respect to each contract under Parts B and C.3 hereofreferred to in paragraph 1 of this Schedule, the Borrower shall furnish to the Bank, prior to the submission to the Bank of the first application for withdrawal of funds from the Loan Account in respect of such contract, two conformed copies of such contract, together with the analysis of the respective bids and recommendations for award, a description of the advertising and tendering procedures set forth followed and such other information as the Bank shall reasonably request. 5. With respect to each contract referred to in paragraphs 2 and 3 of Appendix 1 this Schedule, the Borrower shall furnish to the Guidelines Bank, prior to the submission to the Bank of the first application for withdrawal of funds from the Loan Account in respect thereof, such documentation and information as the Bank may reasonably request to support withdrawal applications in respect of such contract. 6. The provisions of the preceding paragraph 5 of this Schedule shall applynot apply to contracts on account of which withdrawals from the Loan Account are to be made on the basis of statements of expenditure. Part A: 1. The Borrower shall have brought CEMPASA and FERTICA to the point of sale. 2. The Borrower shall have completed a study on its petroleum sector under terms of reference acceptable to the Bank and submitted to the Bank an action plan, based on the results and recommendations of the referred study and an exchange of views between the Borrower and the Bank on such results and recommendations, for the reform of its petroleum sector. 3. The staff reduction targets for 1993 included in the Labor Mobility Program shall have been substantially achieved. 4. The Borrower shall have submitted to the Bank an action plan, based on the evaluation by the Bank and the Borrower of the results of the Pilot Program, for a comprehensive reform of its budgetary system. 5. The Borrower shall have: (a) enacted legislation which substantially adopts the provisions of the Proposed Tax Efficiency Law and the Proposed Property Tax Reform Law and such legislation shall be in full force and effect; and (b) through its Executive Branch, submitted to its Legislative Assembly a proposed bill or bills of law incorporating the provisions included in the Tax Base Program. 6. The Borrower shall have enacted legislation which substantially adopts the provisions of the Proposed Complementary Pensions Law and such legislation is in full force and effect. 7. The Borrower shall have revised its import tariffs to the effect that the maximum tariff shall not exceed twenty percent (20%) and the minimum tariff shall not be lower than ten percent (10%) of the dutiable value of all imported items, except for the Exempted Items; provided, however, that if as a result of a binding decision by the Consejo under article 26 of the Treaty, the Borrower shall have been unable to apply the above minimum tariff on any specific item or items, in such case the Borrower shall have taken alternative measures to achieve the objectives of the Program. 8. The Borrower shall have: (a) enacted legislation which adopts a comprehensive regulatory framework for public services and all necessary regulations related thereto and such legislation and regulations shall be in full force and effect; and (b) submitted to the Bank a plan to restructure the Borrower’s SNE (Servicio Nacional de Electricidad), or its successor, in accordance with its new functions pursuant to the legislation and regulations referred to in paragraph (a) above. 9. The Borrower shall have adopted a duty draw-back system based on criteria and procedures agreed between the Borrower and the Bank. 10. The Borrower shall have made progress in the implementation of the AGEF’s Action Plan. 11. The Borrower shall have enacted legislation, and regulations related thereto, for extending AGEF’s authority over credit cooperatives, and such legislation and regulations shall be in full force and effect. 12. The Borrower shall have enacted legislation enabling the operation of private insurance companies in Costa Rica not later than thirty (30) months from the date of publication of the respective legislation and establishing a supervisory body for all insurance institutions; and such legislation shall be in full force and effect. 13. The Borrower shall have: (a) adopted an action plan, based on the results from the Registry and the LSMS Data, to improve the targeting and coverage of its social programs; and (b) commenced the implementation of such action plan. 14. The Borrower shall have made progress in the implementation of the Displaced Workers Program. 15. The Subsidized Credit granted by Public Commercial Banks from any of their resources shall be maintained, at all times, at the June 30, 1992 level of 9,594,000,000 colones. 16. The Borrower shall have implemented a system whereby private finance companies (entidades financieras de caracter no bancario) are granted access to the Central Bank as lender of last resort in cases of temporary liquidity shortfalls. 17. The legislation referred to in Section 5.01 (b) of this Agreement is being implemented in a manner consistent with the objectives of the Program. Part B: 1. The Borrower shall have brought FANAL to the point of sale. 2. The Borrower shall have made progress in the implementation of the action plan referred to in Paragraph 2 of Part A of this Schedule. 3. The staff reduction targets for 1994 included in the Labor Mobility Program shall have been substantially achieved. 4. The Borrower shall have made progress in the implementation of the action plan referred to in paragraph 4 of Part A of this Schedule. 5. The Borrower shall have enacted legislation which substantially adopts the provisions of the proposed bill or bills of law referred to in paragraph 5 (b) of Part A of this Schedule and such legislation shall be in full force and effect. 6. The Borrower shall have revised its import tariffs to apply the tariff range in paragraph 7 of Part A of this Schedule to tariffs imposed on imported footwear, tires (llantas) and textiles. 7. The Borrower shall have made progress in the implementation of the plan referred to in paragraph 8 (b) of Part A of this Schedule. 8. The Borrower shall have made progress in the implementation of the duty draw-back system referred to in paragraph 9 of Part A of this Schedule. 9. The Borrower shall have completed the implementation of the AGEF’s Action Plan. 10. The Borrower shall have enacted all necessary regulations relating to the legislation referred to in paragraph 12 of Part A of this Schedule and made operational the supervisory body established under such legislation. 11. The Borrower shall have made progress in the implementation of the action plan referred to in paragraph 13 of Part A of this Schedule. 12. The Borrower shall have made progress in the implementation of the Displaced Workers Program. 13. The legislation referred to in Section 5.01 (b) of this Agreement is being implemented in a manner consistent with the objectives of the Program.

Notification and Advertising. The international community should be notified in a timely manner of the opportunity to bid. This will be done by advertising invitations to apply for inclusion in a bidder’s invitation list, to prequalify apply for prequalification, or to bid; such advertisements should be placed in at least one news- paper of general circulation in the Borrower’s country and, in addition, in at least one of the following forms: (i) a notice in the United Nations publication, Devel- opment Forum, Business Edition; or (ii) an advertisement in a newspaper, periodical or technical journal of wide international circula- tion; or (iii) a notice to local representatives of countries and territories referred to in the Guidelines, that are potential suppliers of the goods required." (b) The following is added at the end of paragraph 2.21 of the Guidelines: "As a further alternative, bidding documents may require the bidder to state the bid price in a single currency widely used in international trade and specified in the bidding documents." (c) Paragraphs 2.55 and 2.56 of the Guidelines are deleted. 2. Contracts for each contract goods estimated to cost the equivalent of $10,000,000 equivalent or more shall be advertised in accordance with the procedures applicable to large contracts under paragraph 2.8 of the Guidelines. Part C: Other Procurement Procedures 1. International Shopping Office equipment, including telephone exchanges, copiers, fax machines, and microcomputers, estimated to cost more than $50,000, but $300,000 equivalent or less per contract, 2,000,000 each may be procured under contracts awarded awarded: (a) in case of procurement of goods by the Borrower, its political subdivisions or state-owned enterprises, on the basis of international shopping the Borrower’s or the state-owned enterprise’s procedures which have been reviewed and found acceptable to the Association; and (b) in accordance case of procurement by private entities, on the basis of their normal procurement procedures. 3. With respect to each contract referred to in paragraph 1 of this Schedule, the Borrower shall furnish to the Association, prior to the submission to the Association of the first applica- tion for withdrawal of funds from the Credit Account and the Swiss Contribution Account in respect of such contract, two conformed copies of such contract, together with the analysis of the respective bids and recommendations for award, a description of the advertising and tendering procedures followed and such other information as the Association shall reasonably request. 4. With respect to each contract referred to in paragraph 2 of this Schedule, the Borrower shall furnish to the Association, prior to the submission to the Association of the first applica- tion for withdrawal of funds from the Credit Account and the Swiss Contribution Account in respect thereof, such documentation and information as the Association may reasonably request to support withdrawal applications in respect of such contract. 5. Notwithstanding the provisions of paragraphs 3.5 3 and 3.6 4 of this Schedule, where payments under a contract are to be made out of the Guidelines. 2. National Shopping Telephones, local area networks wiring, library supplies, and office supplies, estimated to cost $50,000 equivalent or less per contract and $900,000 equivalent or less in the aggregate (which aggregate shall not apply in the case of goods financed under Part E proceeds of the Project)Special Accounts, may the copies of such contract or the documentation and the information to be procured under contracts awarded on furnished to the basis of national shopping procedures in accordance with Association pursuant to the provisions of paragraphs 3.5 and 3.6 paragraph 3 or paragraph 4 of this Schedule, as the Guidelines. 3. Procurement of Small Works Eligible works estimated not to exceed $75,000 equivalent per contractcase may be, and not to exceed $600,000 in the aggregate, shall be procured and awarded on the basis of quotations obtained from three qualified domestic contractors in response to a written invitation. The invitation shall include a detailed description of the works, including basic specifications, the required completion date, a basic form of agreement acceptable to the Bank, and relevant drawings, where applicable. The award shall be made to the contractor who offers the lowest price quotation for the required work, and who has the experience and resources to successfully complete the contract. Part D: Review by the Bank of Procurement Decisions 1. Procurement Planning Prior to the issuance of any invitations to prequalify for bidding or to bid for contracts, the proposed procurement plan for the Project shall be furnished to the Bank for its review Association as part of the evidence required under paragraph 4 of Schedule 4 to this Agreement. 6. The provisions of the preceding paragraphs 3, 4 and approval5 shall not apply to contracts on account of which the Association has authorized withdrawals from the Credit Account and the Swiss Contribution Account on the basis of statements of expenditure. 1. Actions referred to in Section 5.01 of this Agreement The Borrower has submitted to the Association, in accordance with the provisions of paragraph 1 of Appendix 1 form and substance satisfactory to the Guidelines. Procurement Association: (a) proposals for amendments of all goods the Banking Act and works shall be undertaken in accordance with such procurement plan as shall have been approved by other relevant regulations covering, inter alia, prudential rules relating to the Bankcapital adequacy of banks, reserve requirements, limits on loans, penalties and with reporting requirements to the provisions Bank of said paragraph 1Ghana; and (b) proposals for establishing uniform auditing and accounting standards for banks. 2. Prior Review With respect to: Actions referred to in paragraph 4 (a) of Schedule 1 to this Agreement (a) The amendments to the first two contracts under Parts C.1 Banking Law and C.2 hereofother regulations referred to in paragraph 1 (a) (i) above have been enacted. (b) The monitoring of compliance of banks with the uniform auditing and accounting standards has been commenced by the Bank of Ghana. (c) A timetable for the phased decontrol of banking charges has been submitted to the Association. (d) The amendment to the Social Security Decree expanding the investment opportunities for the Social Security and National Insurance Trust has been enacted. (e) A statement has been submitted to the Association detailing the modalities for the restructuring of banks and in particular: (i) the restructuring or conversion of loans and deposits extended to banks by the Borrower, the Bank of Ghana and external lenders; (ii) dealing with banks’ portfolios of non- performing loans; and (biii) each contract under Parts B additional measures for dealing with non-performing loans to state-owned enterprises. (f) Plans for the reduction by at least 50% of doubtful loans and C.3 hereof, off-balance sheet items in the procedures set forth in paragraphs 2 and 3 aggregate portfolio of Appendix 1 the banks have been submitted to the Guidelines shall applyAssociation. (g) Restructuring plans for banks accounting for at least 50% of commercial banks’ assets and 50% of development banks’ assets have been submitted to the Association. (h) An action program for the strengthening of the Consolidated Discount House Ltd. has been prepared and is being implemented. (i) A study on the potential for capital market development and related requirements has been completed. (j) A study on exchange risk protection has been completed.

Notification and Advertising. The international community should be notified in a timely manner of the opportunity to bid. This will be done by advertising invitations to apply for inclusion in a bidder’s invitation list, to prequalify apply for prequalification, or bid to bid; such advertisements should be placed in at least one newspaper of general circulation in the Borrower’s country and, in addition, in at least one of the following forms: (i) a notice in the United Nations publication, Development Forum, Business Edition; or (ii) an advertisement in a newspaper, periodical or technical journal of wide international circula- tion; or (iii) a notice to local representatives of countries and territories referred to in the Guidelines, that are potential suppliers of the goods re- quired." 2. Contracts for each contract the procurement of goods estimated to cost the equivalent of less than five million dollars ($10,000,000 equivalent or more 5,000,000) shall be advertised awarded: (a) by purchasers required to follow the Borrower’s public procurement procedures for the importation of goods, on the basis of such procedures, provided that such procedures shall have been found acceptable by the Bank; and (b) by other purchasers, in accordance with the procedures applicable to large established commercial practice, provided that such contracts under paragraph 2.8 of the Guidelines. Part C: Other Procurement Procedures 1. International Shopping Office equipment, including telephone exchanges, copiers, fax machines, and microcomputers, estimated to cost more than $50,000, but $300,000 equivalent or less per contract, may shall be procured under contracts awarded on the basis of international shopping evaluation and comparison of quotations obtained from suppliers from at least two (2) countries, except that direct contracting procedures in accordance with acceptable to the provisions of paragraphs 3.5 and 3.6 of the Guidelines. 2. National Shopping Telephones, local area networks wiring, library supplies, and office supplies, estimated to cost $50,000 equivalent or less per contract and $900,000 equivalent or less in the aggregate (which aggregate shall not apply in the case of goods financed under Part E of the Project), Bank may be procured used where considered appropriate under contracts awarded on the basis of national shopping procedures in accordance with the provisions of paragraphs paragraph 3.5 and 3.6 of the Guidelines. 3. Procurement Subject to the prior approval of Small Works Eligible works estimated not to exceed $75,000 equivalent per contractthe Bank, and not to exceed $600,000 in the aggregate, shall commonly traded commodities may be procured and awarded on the basis through organized international commodity markets or other channels of quotations obtained from three qualified domestic contractors in response to a written invitation. The invitation shall include a detailed description of the works, including basic specifications, the required completion date, a basic form of agreement competitive procurement acceptable to the Bank, and relevant drawings, where applicable. The award shall be made in accordance with procedures acceptable to the contractor who offers Bank. 4. With respect to each contract referred to in paragraph 1 of this Schedule, the lowest price quotation for Borrower shall furnish to the required workBank, and who has prior to the experience and resources submission to successfully complete the contract. Part D: Review by the Bank of Procurement Decisions 1. Procurement Planning Prior to the issuance first application for withdrawal of any invitations to prequalify funds from the Loan Account in respect of such contract, two (2) conformed copies of such contract, together with the analysis of the respective bids and recommendations for bidding or to bid for contractsaward, a description of the proposed procurement plan for the Project shall be furnished to advertising and tendering procedures followed and such other information as the Bank for its review and approval, in accordance with the provisions of paragraph 1 of Appendix 1 to the Guidelines. Procurement of all goods and works shall be undertaken in accordance with such procurement plan as shall have been approved by the Bank, and with the provisions of said paragraph 1reasonably request. 25. Prior Review With respect to: (a) the first two contracts under Parts C.1 and C.2 hereof; and (b) to each contract under Parts B and C.3 hereof, the procedures set forth referred to in paragraphs 2 and 3 of Appendix this Schedule, the Borrower shall furnish to the Bank, prior to the submission to the Bank of the first application for withdrawal of funds from the Loan Account in respect thereof, such documenta- tion and information as the Bank may reasonably request to support withdrawal applications in respect of such contract. 6. The provisions of the preceding paragraph 5 of this Schedule shall not apply to contracts on account of which withdrawals from the Loan Account are to be made on the basis of statements of expenditure. SCHEDULE 4 Actions Referred to in Paragraph 4 (b) of Schedule 1 to this Agreement 1. Macroeconomic Framework Continued maintenance of a satisfactory macroeconomic framework, consistent with the Guidelines shall applyobjectives of the Program, as determined on the basis of indicators acceptable to the Borrower and the Bank.

Notification and Advertising. The international community should be notified in a timely manner of the opportunity to bid. This will be done by advertising invitations to apply for inclusion in a bidder’s invitation list, to prequalify apply for prequalification, or to bid; such advertisements should be placed in at least one newspaper of general circulation in the Borrower’s country and, in addition, in at least one of the following forms: (i) a notice in the United Nations publication, Development Forum, Business Edition; or (ii) an advertisement in a newspaper, periodical or technical journal of wide international circulation; or (iii) a notice to local representatives of countries and territories referred to in the Guidelines, that are potential suppliers of the goods required." (b) The following is added at the end of paragraph 2.21 of the Guidelines: "As a further alternative, bidding documents may require the bidder to state the bid price in a single currency widely used in international trade and specified in the bidding documents." (c) Paragraphs 2.55 and 2.56 of the Guidelines are deleted. 2. Contracts for each contract the procurement of goods estimated to cost the equivalent of less than $10,000,000 equivalent or more 2,000,000 shall be advertised awarded: (a) by purchasers required to follow the Borrower’s public procurement procedures for the importation of goods, on the basis of such procedures, provided that such procedures shall have been found acceptable to the Association; (b) by other purchasers, in accordance with the procedures applicable to large established commercial practice, provided that such contracts under paragraph 2.8 of the Guidelines. Part C: Other Procurement Procedures 1. International Shopping Office equipment, including telephone exchanges, copiers, fax machines, and microcomputers, estimated to cost more than $50,000, but $300,000 equivalent or less per contract, may shall be procured under contracts awarded on the basis of international shopping evaluation and comparison of quotations obtained from suppliers from at least two countries, except that direct contracting procedures acceptable to the Association may be used where considered appropriate under paragraph 3.5 of the Guidelines; and (c) by any purchasers, for the supply of commodities, on the basis of evaluation and comparison of quotations obtained from more than one supplier. 3. With respect to each contract referred to in accordance paragraph 1 of this Schedule, the Borrower shall furnish to the Association, prior to the submission to the Association of the first application for withdrawal of funds from the Credit Account in respect of such contract, two conformed copies of such contract, together with the analysis of the respective bids and recommendations for award, a description of the advertising and tendering procedures followed and such other information as the Association shall reasonably request. 4. With respect to each contract referred to in paragraph 2 of this Schedule, the Borrower shall furnish to the Association, prior to the submission to the Association of the first application for withdrawal of funds from the Credit Account in respect thereof, such documentation and information as the Association may reasonably request to support withdrawal applications in respect of such contract. 5. Notwithstanding the provisions of paragraphs 3.5 3 and 3.6 4 of this Schedule, where payments under a contract are to be made out of the Guidelines. 2. National Shopping Telephones, local area networks wiring, library supplies, and office supplies, estimated to cost $50,000 equivalent or less per contract and $900,000 equivalent or less in the aggregate (which aggregate shall not apply in the case of goods financed under Part E proceeds of the Project)Special Account, may the copies of such contract or the documentation and the information to be procured under contracts awarded on furnished to the basis of national shopping procedures in accordance with Association pursuant to the provisions of paragraphs 3.5 and 3.6 paragraph 3 or paragraph 4 of this Schedule, as the Guidelines. 3. Procurement of Small Works Eligible works estimated not to exceed $75,000 equivalent per contractcase may be, and not to exceed $600,000 in the aggregate, shall be procured and awarded on the basis of quotations obtained from three qualified domestic contractors in response to a written invitation. The invitation shall include a detailed description of the works, including basic specifications, the required completion date, a basic form of agreement acceptable to the Bank, and relevant drawings, where applicable. The award shall be made to the contractor who offers the lowest price quotation for the required work, and who has the experience and resources to successfully complete the contract. Part D: Review by the Bank of Procurement Decisions 1. Procurement Planning Prior to the issuance of any invitations to prequalify for bidding or to bid for contracts, the proposed procurement plan for the Project shall be furnished to the Bank for its review and approval, in accordance with Association as part of the evidence required under paragraph 4 of Schedule 4 to this Agreement. 6. The provisions of paragraph 1 the preceding paragraphs 3, 4 and 5 shall not apply to contracts on account of Appendix which the Association has authorized withdrawals from the Credit Account on the basis of statements of expenditure. of Schedule 1 to this Agreement The Borrower has: 1. prepared and submitted to the Guidelines. Procurement of all goods and works shall be undertaken in accordance with such procurement plan as shall have been approved by Association a PublicSector Investment Program for 1990/91 - 1993/94, satisfactory to the Bank, and with the provisions of said paragraph 1.Association; 2. Prior Review With respect to: (a) maintained the first two contracts under Parts C.1 exchange rate of the Malawi Kwacha and C.2 hereof; and (b) each contract under Parts B and C.3 hereof, the procedures set forth in paragraphs 2 and 3 of Appendix 1 fiscal deficit for 1990-1991 at levels satisfactory to the Guidelines shall apply.Association;

Notification and Advertising. The international community should be notified in a timely manner of the opportunity to bid. This will be done by advertising invitations to apply for inclusion in a bidder’s invitation list, to prequalify apply for prequalification, or to bid; such advertisements should be placed in at least one news- paper of general circulation in the Borrower’s country and, in addition, in at least one of the following forms: (i) a notice in the United Nations publication, Development Forum, Business Edition; or (ii) an advertisement in a newspaper, periodical or technical journal of wide international circula- tion; or (iii) a notice to local representatives of countries and territories referred to in the Guidelines, that are potential suppliers of the goods required." (b) The following is added at the end of paragraph 2.21 of the Guidelines: "As a further alternative, bidding documents may require the bidder to state the bid price in a single currency widely used in international trade and specified in the bidding documents." (c) Paragraphs 2.55 and 2.56 of the Guidelines are deleted. 2. Contracts for each contract the procurement of goods (other than petroleum and petroleum products) or groups of goods estimated to cost less than the equivalent of $10,000,000 equivalent or more shall be advertised in accordance with the procedures applicable to large contracts under paragraph 2.8 of the Guidelines. Part C: Other Procurement Procedures 1. International Shopping Office equipment, including telephone exchanges, copiers, fax machines, and microcomputers, estimated to cost more than $50,000, but $300,000 equivalent or less 500,000 per contract, contract may be procured under contracts awarded awarded: (i) in the case of imports by the public sector, on the basis of international shopping procedures comparison of price quotations solicited from a list of at least three suppliers eligible under the Guide- lines, in accordance with procedures acceptable to the provisions of paragraphs 3.5 Associa- tion; and 3.6 of the Guidelines. 2. National Shopping Telephones, local area networks wiring, library supplies, and office supplies, estimated to cost $50,000 equivalent or less per contract and $900,000 equivalent or less in the aggregate (which aggregate shall not apply ii) in the case of goods financed under Part E of imports by the Project)private sector, may be procured under contracts awarded on the basis of national shopping the normal procurement procedures in accordance with the provisions of paragraphs 3.5 and 3.6 of the Guidelinespurchaser of such goods. 3. Procurement Contracts for petroleum and petroleum products shall be awarded either through bilateral arrangements based on prevailing market prices of Small Works Eligible works estimated not such commodity or products, or on the spot market, through direct negotiations in accordance with normal practices. 4. With respect to exceed $75,000 equivalent per each contract referred to in paragraph 1 of this Schedule, the Borrower shall furnish to the Association, prior to the submission to the Association of the first applica- tion for withdrawal of funds from the Credit Account in respect of such contract, two conformed copies of such contract, together with the analysis of the respective bids and not to exceed $600,000 in the aggregaterecommendations for award, shall be procured and awarded on the basis of quotations obtained from three qualified domestic contractors in response to a written invitation. The invitation shall include a detailed description of the works, including basic specifications, advertising and tendering procedures followed and such other information as the required completion date, a basic form of agreement acceptable to the Bank, and relevant drawings, where applicable. The award Association shall be made to the contractor who offers the lowest price quotation for the required work, and who has the experience and resources to successfully complete the contract. Part D: Review by the Bank of Procurement Decisions 1. Procurement Planning Prior to the issuance of any invitations to prequalify for bidding or to bid for contracts, the proposed procurement plan for the Project shall be furnished to the Bank for its review and approval, in accordance with the provisions of paragraph 1 of Appendix 1 to the Guidelines. Procurement of all goods and works shall be undertaken in accordance with such procurement plan as shall have been approved by the Bank, and with the provisions of said paragraph 1rea- sonably request. 25. Prior Review With respect to: (a) the first two contracts under Parts C.1 and C.2 hereof; and (b) to each contract under Parts B and C.3 hereof, the procedures set forth referred to in paragraphs 2 and 3 of Appendix this Schedule, the Borrower shall furnish to the Association, prior to the submission to the Association of the first applica- tion for withdrawal of funds from the Credit Account in respect thereof, such documentation and information as the Association may reasonably request to support withdrawal applications in respect of such contract. 6. Notwithstanding the provisions of paragraphs 4 and 5 of this Schedule, where payments under a contract are to be made out of the proceeds of the Special Account, the copies of such contract or the documentation and the information to be furnished to the Association pursuant to the provisions of paragraph 4 or paragraph 5 of this Schedule, as the case may be, shall be furnished to the Association as part of the evidence required under paragraph 4 of Schedule 4 to this Agreement. 7. The provisions of the preceding paragraphs 4, 5 and 6 shall not apply to contracts on account of which the Association has authorized withdrawals from the Credit Account on the basis of statements of expenditure. Actions Referred to in Paragraph 3 (a) (ii) and (b) (ii) of Schedule 1 to this Agreement The Borrower shall have: (a) with relation to the Guidelines release of the second Tranche: (i) prepared and furnished to the Association a macro- economic development strategy and implementation plan, satisfactory to the Association, including, inter alia, macroeconomic analysis, sectoral analysis, and a review of the competitiveness of the economy; (ii) carried out a review of the Borrower’s negative list of imports and, on the basis of the results of such review, shall apply.have agreed with the Association on a plan of action for the reduction of such negative list of imports; (iii) prepared and furnished to the Association a core public sector investment program, satisfactory to the Association, for fiscal year 1989; (iv) agreed with the Association on the Borrower’s tax reform proposal, including a timetable therefor; (v) completed, in a manner satisfactory to the Associa- tion, the consolidation of the functions of the Industrial Development Corporation and the Tourist Board of the Borrower; (vi) adopted a capital and operational expenditures program for fiscal year 1989, satisfactory to the Association, for the new entity resulting from the consolidation referred to in paragraph (v) above; (vii) made progress, satisfactory to the Association, in the implementation of the Borrower’s system for strengthening the formulation and monitoring of public sector investment programs; (viii) completed the third phase of the Organization and Methods survey currently being carried out by the Borrower for the restructuring of its civil service, in a manner satisfactory to the Associa- tion; (ix) prepared and furnished to the Association a plan of action, satisfactory to the Association, for achieving the following targets: (A) that in fiscal year 1989 civil service salaries will not exceed 50% of total recurrent revenues (calculated without taking into account the impact of the tax reform referred to in (iv) above); and (B) that in fiscal years 1988 and 1989 civil service salaries will not exceed 56% of total recurrent expenditures; (x) maintained minimum wages at levels established by the Borrower in Statutory Rules and Order No. 4 of 1980; (xi) taken steps to simplify and improve, in a manner satisfactory to the Association, the procedures for wage negotiations in the public sector; (xii) furnished to the Association a plan of action, satisfactory to the Association, for implementing the Borrower’s training program for agricultural extension staff; and

Notification and Advertising. The international community should be notified in a timely manner of the opportunity to bid. This will be done by advertising invitations to apply for inclusion in a bidder’s invitation list, to prequalify apply for prequalification, or to bid; such advertisements should be placed in at least one newspaper of general circulation in the Borrower’s country and, in addition, in at least one of the following forms: (i) a notice in the United Nations publication, Development Forum, Business Edition; or (ii) an advertisement in a newspaper, periodical or technical journal of wide international circulation; or (iii) a notice to local representatives of countries and territories referred to in the Guidelines, that are potential suppliers of the goods required." (b) The following is added at the end of paragraph 2.21 of the Guidelines: "As a further alternative, bidding documents may require the bidder to state the bid price in a single currency widely used in international trade and specified in the bidding documents." (c) Paragraphs 2.55 and 2.56 of the Guidelines are deleted. 2. Contracts for each contract goods to be procured by the Borrower or by private entities estimated to cost the equivalent of less than $10,000,000 equivalent or more 2,000,000 each shall be advertised in accordance with the procedures applicable to large contracts under paragraph 2.8 of the Guidelines. Part C: Other Procurement Procedures 1. International Shopping Office equipment, including telephone exchanges, copiers, fax machines, and microcomputers, estimated to cost more than $50,000, but $300,000 equivalent or less per contract, may be procured under contracts awarded on the basis of international shopping the normal procurement procedures of the purchaser of such goods. 3. With respect to each contract referred to in accordance paragraph 1 of this Schedule, the Borrower shall furnish to the Association, prior to the submission to the Association of the first application for withdrawal of funds from the Credit Account and the Swiss Contribution and FINNIDA Credit Accounts in respect of such contract, two conformed copies of such contract, together with the analysis of the respective bids and recommendations for award, a description of the advertising and tendering procedures followed and such other information as the Association shall reasonably request. 4. With respect to each contract referred to in paragraph 2 of this Schedule, the Borrower shall furnish to the Association, prior to the submission to the Association of the first application for withdrawal of funds from the Credit Account, the Swiss Contribution and the FINNIDA Credit Accounts in respect thereof, such documentation and information as the Association may reasonably request to support withdrawal applications in respect of such contract. 5. Notwithstanding the provisions of paragraphs 3.5 3 and 3.6 4 of this Schedule, where payments under a contract are to be made out of the Guidelines. 2. National Shopping Telephones, local area networks wiring, library supplies, and office supplies, estimated to cost $50,000 equivalent or less per contract and $900,000 equivalent or less in the aggregate (which aggregate shall not apply in the case of goods financed under Part E proceeds of the Project)Special Account, may the copies of such contract or the documentation and the information to be procured under contracts awarded on furnished to the basis of national shopping procedures in accordance with Association pursuant to the provisions of paragraphs 3.5 and 3.6 paragraph 3 or paragraph 4 of this Schedule, as the Guidelines. 3. Procurement of Small Works Eligible works estimated not to exceed $75,000 equivalent per contractcase may be, and not to exceed $600,000 in the aggregate, shall be procured and awarded on the basis of quotations obtained from three qualified domestic contractors in response to a written invitation. The invitation shall include a detailed description of the works, including basic specifications, the required completion date, a basic form of agreement acceptable to the Bank, and relevant drawings, where applicable. The award shall be made to the contractor who offers the lowest price quotation for the required work, and who has the experience and resources to successfully complete the contract. Part D: Review by the Bank of Procurement Decisions 1. Procurement Planning Prior to the issuance of any invitations to prequalify for bidding or to bid for contracts, the proposed procurement plan for the Project shall be furnished to the Bank for its review and approval, in accordance with Association as part of the evidence required under paragraph 4 of Schedule 4 to this Agreement. 6. The provisions of paragraph 1 the preceding paragraphs 3, 4 and 5 shall not apply to contracts on account of Appendix 1 to which the Guidelines. Procurement of all goods and works shall be undertaken in accordance with such procurement plan as shall have been approved by Association has authorized withdrawals from the Bank, and with the provisions of said paragraph 1. 2. Prior Review With respect to: (a) the first two contracts under Parts C.1 and C.2 hereof; and (b) each contract under Parts B and C.3 hereofCredit Account, the procedures set forth in paragraphs 2 Swiss Contribution and 3 FINNIDA Credit Accounts on the basis of Appendix 1 to the Guidelines shall applystatements of expenditure.

Notification and Advertising. The international community should be notified in a timely manner of the opportunity to bid. This will be done by advertising invitations to apply for inclusion in a bidder’s invitation list, to prequalify apply for prequalification, or to bid; such advertisements should be placed in at least one newspaper of general circulation in the Borrower’s country and, in addition, in at least one of the following forms: (i) a notice in the United Nations publication, Development Forum, Business Edition; or (ii) an advertisement in a newspaper, periodical or technical journal of wide international circulation; or (iii) a notice to local representatives of countries and territories referred to in the Guidelines, that are potential suppliers of the goods required." 2. The following is added at the end of paragraph 2.21 of the Guidelines: "As a further alternative, bidding documents may require the bidder to state the bid price in a single currency widely used in international trade and specified in the bidding documents." 3. Paragraphs 2.55 and 2.56 of the Guidelines are deleted. Part B: Other Procurement Procedures Contracts for each contract the procurement of goods estimated to cost the equivalent of less than $10,000,000 equivalent or more 5,000,000 shall be advertised awarded: 1. by purchasers required to follow the Borrower’s public procurement procedures for the importation of goods, on the basis of such procedures, provided that such procedures shall have been found acceptable by the Bank; 2. by other purchasers, in accordance with the procedures applicable to large established commercial practice, provided that such contracts under paragraph 2.8 of the Guidelines. Part C: Other Procurement Procedures 1. International Shopping Office equipment, including telephone exchanges, copiers, fax machines, and microcomputers, estimated to cost more than $50,000, but $300,000 equivalent or less per contract, may shall be procured under contracts awarded on the basis of international shopping evaluation and comparison of quotations obtained from suppliers from at least two countries, except that direct contracting procedures in accordance with acceptable to the provisions of paragraphs Bank may be used where considered appropriate under paragraph 3.5 and 3.6 of the Guidelines.; and 23. National Shopping Telephonesby any purchasers, local area networks wiringfor the supply of commodities, library supplies, and office supplies, estimated to cost $50,000 equivalent or less per contract and $900,000 equivalent or less in the aggregate (which aggregate shall not apply in the case of goods financed under Part E of the Project), may be procured under contracts awarded on the basis of national shopping procedures in accordance with the provisions of paragraphs 3.5 evaluation and 3.6 of the Guidelines. 3. Procurement of Small Works Eligible works estimated not to exceed $75,000 equivalent per contract, and not to exceed $600,000 in the aggregate, shall be procured and awarded on the basis comparison of quotations obtained from three qualified domestic contractors in response to a written invitation. The invitation shall include a detailed description of the works, including basic specifications, the required completion date, a basic form of agreement acceptable to the Bank, and relevant drawings, where applicable. The award shall be made to the contractor who offers the lowest price quotation for the required work, and who has the experience and resources to successfully complete the contractmore than one supplier. Part DC: Review by the Bank of Procurement Decisions 1. Procurement Planning Prior With respect to each contract referred to in Part A of this Schedule, the Borrower shall furnish to the issuance of any invitations Bank, prior to prequalify for bidding or to bid for contracts, the proposed procurement plan for the Project shall be furnished submission to the Bank of the first application for its review and approvalwithdrawal of funds from the Loan Account in respect of such contract, in accordance two conformed copies of such contract, together with the provisions analysis of paragraph 1 the respective bids and recommendations for award, a description of Appendix 1 to the Guidelines. Procurement of all goods advertising and works tendering procedures followed and such other information as the Bank shall be undertaken in accordance with such procurement plan as shall have been approved by the Bank, and with the provisions of said paragraph 1reasonably request. 2. Prior Review With respect to: (a) to each contract referred to in Part B of this Schedule, the Borrower shall furnish to the Bank, prior to the submission to the Bank of the first two application for withdrawal of funds from the Loan Account in respect thereof, such documentation and information as the Bank may reasonably request to support withdrawal applications in respect of such contract. 3. The provisions of the preceding paragraph 2 of this Part shall not apply to contracts under Parts C.1 and C.2 hereof; and (b) each contract under Parts B and C.3 hereof, on account of which the procedures set forth in paragraphs 2 and 3 Bank has authorized withdrawals from the Loan Account on the basis of Appendix 1 to the Guidelines shall applystatements of expenditure.

Notification and Advertising. The international community should be notified in a timely manner of the opportunity to bid. This will be done by advertising invitations to apply for inclusion in a bidder’s invitation list, to prequalify apply for prequalification, or to bid; such advertisements should be placed in at least one newspaper of general circulation in the Borrower’s country and, in addition, in at least one of the following forms: (i) a notice in the United Nations publication, Development Forum, Business Edition; or (ii) an advertisement in a newspaper, periodical or technical journal of wide international circulation; or (iii) a notice to local representatives of countries and territories referred to in the Guidelines, that are potential suppliers of the goods required." (b) The following is added at the end of paragraph 2.21 of the Guidelines: "As a further alternative, bidding documents may require the bidder to state the bid price in a single currency widely used in international trade and specified in the bidding documents." (c) Paragraphs 2.55 and 2.56 of the Guidelines are deleted. 2. Subject to the prior approval of the Bank, commonly traded commodities may be procured through organized international commodity markets or other channels of competitive procurement acceptable to the Bank, in accordance with procedures acceptable to the Bank. 3. Contracts for each contract the procurement of goods estimated to cost the equivalent of less than $10,000,000 equivalent or more 2,000,000 shall be advertised awarded: (a) by purchasers required to follow the Borrower’s public procurement procedures for the importation of goods, on the basis of such procedures, provided that such procedures shall have been found acceptable by the Bank; (b) by other purchasers, in accordance with the procedures applicable to large established commercial practice, provided that such contracts under paragraph 2.8 of the Guidelines. Part C: Other Procurement Procedures 1. International Shopping Office equipment, including telephone exchanges, copiers, fax machines, and microcomputers, estimated to cost more than $50,000, but $300,000 equivalent or less per contract, may shall be procured under contracts awarded on the basis of international shopping evaluation comparison of quotations obtained from suppliers from at least two countries, except that direct contracting procedures in accordance with acceptable to the provisions of paragraphs Bank may be used where considered appropriate under paragraph 3.5 and 3.6 of the Guidelines.; and 2. National Shopping Telephones(c) by any purchasers, local area networks wiringfor the supply of commodities, library supplies, and office supplies, estimated to cost $50,000 equivalent or less per contract and $900,000 equivalent or less in the aggregate (which aggregate shall not apply in the case of goods financed under Part E of the Project), may be procured under contracts awarded on the basis of national shopping procedures in accordance with the provisions of paragraphs 3.5 evaluation and 3.6 of the Guidelines. 3. Procurement of Small Works Eligible works estimated not to exceed $75,000 equivalent per contract, and not to exceed $600,000 in the aggregate, shall be procured and awarded on the basis comparison of quotations obtained from three qualified domestic contractors more than one supplier. 4. With respect to each contract referred to in response to a written invitation. The invitation shall include a detailed description paragraph 1 of the works, including basic specificationsthis Schedule, the required completion date, a basic form of agreement acceptable Borrower shall furnish to the Bank, and relevant drawings, where applicable. The award shall be made prior to the contractor who offers the lowest price quotation for the required work, and who has the experience and resources submission to successfully complete the contract. Part D: Review by the Bank of Procurement Decisions 1. Procurement Planning Prior to the issuance first application for withdrawal of any invitations to prequalify funds from the Loan Account in respect of such contract, two conformed copies of such contract, together with the analysis of the respective bids and recommendations for bidding or to bid for contractsaward, a description of the proposed procurement plan for the Project shall be furnished to advertising and tendering procedures followed and such other information as the Bank for its review and approval, in accordance with the provisions of paragraph 1 of Appendix 1 to the Guidelines. Procurement of all goods and works shall be undertaken in accordance with such procurement plan as shall have been approved by the Bank, and with the provisions of said paragraph 1reasonably request. 25. Prior Review With respect to: (a) the first two contracts under Parts C.1 and C.2 hereof; and (b) to each contract under Parts B and C.3 hereof, the procedures set forth referred to in paragraphs 2 and 3 of Appendix this Schedule, the Borrower shall furnish to the Bank, prior to the submission to the Bank of the first application for withdrawal of funds from the Loan Account in respect thereof, such documentation and information as the Bank may reasonably request to support withdrawal applications in respect of such contract. 6. The provisions of the preceding paragraph 5 of this Schedule shall not apply to contracts on account of which the Bank has authorized withdrawals from the Loan Account on the basis of statements of expenditure. Actions Referred to in Paragraph 4 (b) of Schedule 1 to this Agreement 1. The Borrower has adopted a budget for its fiscal year 1991 which proposes to maintain an overall balanced budgetary position in accordance with the Guidelines shall applyformat agreed with the Bank. 2. The Borrower has agreed to extend its policy of refraining from external commercial borrowings for budgetary financing through December 31, 1991. 3. The Borrower has agreed to limit guaranteed and non-guaranteed new external commercial borrowings by public commercial enterprises, except for the Mineral Resources Development Corporation, to a maximum of $25,000,000 equivalent during 1991. 4. The Borrower has furnished to the Bank proposals for the restructuring of its tax system, acceptable to the Bank. 5. The Borrower has implemented tax measures that are consistent with (i) the target of maintaining an overall balanced budgetary position in 1991, and (ii) the proposals referred to in para- graph 4 of this Schedule. 6. The Borrower has initiated, in a manner acceptable to the Bank, the implementation of a medium-term public service restructuring program, acceptable to the Bank, including retrenchment of staff, revised staffing levels and revised departmental structures. 7. The Borrower has adopted a recurrent budget for 1991 of a size and composition acceptable to the Bank, including: (i) a limit on wages, salaries and other employee payments of its national and provincial departments equal to K335,000,000; and (ii) an allocation for maintenance works of at least K50,000,000. 8. The Borrower has set out in its 1991 budget a Public Investment Program of a composition acceptable to the Bank and has increased such Program by about 7% in real terms over the Public Investment Program set out in its revised 1990 budget. 9. The Borrower has completed, in a manner acceptable to the Bank, the establishment of the new project cycle for public investments, referred to in Section 5.01 (c) of this Agreement. 10. The Borrower has taken all measures necessary to ensure satisfactory implementation of the legislation referred to in Section 5.01 (a) and (b) of this Agreement. 11. The Borrower is implementing an exchange rate policy acceptable to the Bank. 12. The Borrower has (i) implemented, in a manner acceptable to the Bank, its wage policy for 1990 agreed with the Bank, and

Notification and Advertising. The international community should be notified in a timely manner of the opportunity to bid. This will be done by advertising invitations to apply for inclusion in a bidder’s invitation list, to prequalify apply for prequalification, or to bid; such advertisements should be placed in at least one newspaper of general circulation in the Borrower’s country and, in addition, in at least one of the following forms: (i) a notice in the United Nations publication, Development Forum, Business Edition; or (ii) an advertisement in a newspaper, periodical or technical journal of wide international cir- culation; or (iii) a notice to local representatives of countries and territories referred to in the Guidelines, that are potential suppliers of the goods required." (b) The following is added at the end of paragraph 2.21 of the Guidelines: "As a further alternative, bidding documents may require the bidder to state the bid price in a single currency widely used in international trade and specified in the bidding documents." (c) Paragraphs 2.55 and 2.56 of the Guidelines are deleted. 2. Contracts for each contract the procurement of goods estimated to cost the equivalent of less than $10,000,000 equivalent or more 2,000,000 shall be advertised awarded: (a) by purchasers required to follow the Borrower’s public procurement procedures for the importation of goods, on the basis of such procedures, provided that such procedures shall have been found acceptable by the Association; (b) by other purchasers, in accordance with the procedures applicable to large established commercial practice, provided that such contracts under paragraph 2.8 of the Guidelines. Part C: Other Procurement Procedures 1. International Shopping Office equipment, including telephone exchanges, copiers, fax machines, and microcomputers, estimated to cost more than $50,000, but $300,000 equivalent or less per contract, may shall be procured under contracts awarded on the basis of international shopping evaluation and comparison of quotations obtained from suppliers from at least two countries, except that direct contracting procedures in accordance with acceptable to the provisions of paragraphs Association may be used where considered appropriate under paragraph 3.5 and 3.6 of the Guidelines.; and 2. National Shopping Telephones(c) by any purchasers, local area networks wiring, library supplies, and office supplies, estimated to cost $50,000 equivalent or less per contract and $900,000 equivalent or less in for the aggregate (which aggregate shall not apply in the case supply of goods financed under Part E of the Project), may be procured under contracts awarded commodities on the basis of national shopping procedures in accordance with the provisions evaluation and comparison of paragraphs 3.5 and 3.6 of the Guidelinesquotations obtained from more than one supplier. 3. Procurement With respect to each contract referred to in paragraph 1 of Small Works Eligible works estimated not this Section, the Borrower shall furnish to exceed $75,000 equivalent per the Association, prior to the submission to the Association of the first application for withdrawal of funds from the Credit Account in respect of such contract, two conformed copies of such contract, together with the analysis of the respective bids and not to exceed $600,000 in the aggregaterecommendations for award, shall be procured and awarded on the basis of quotations obtained from three qualified domestic contractors in response to a written invitation. The invitation shall include a detailed description of the worksadvertising and tendering procedures followed and such other information as the Association shall reasonably request. Where payments under a contract are to be made out of the proceeds of the Special Accounts, including basic specifications, such copies together with the other information required completion date, a basic form of agreement acceptable to be furnished to the Bank, and relevant drawings, where applicable. The award shall be made Association pursuant to the contractor who offers the lowest price quotation for the required work, and who has the experience and resources to successfully complete the contract. Part D: Review by the Bank of Procurement Decisions 1. Procurement Planning Prior to the issuance of any invitations to prequalify for bidding or to bid for contracts, the proposed procurement plan for the Project this paragraph shall be furnished to the Bank Association as part of the evidence required under paragraph 4 of Schedule 4 to this Agreement. 4. With respect to each contract referred to in paragraph 2 of this Section, the Borrower shall furnish to the Association, prior to the submission to the Association of the first application for withdrawal of funds from the Credit Account in respect thereof, such documentation and information as the Association may reasonably request to support withdrawal applications in respect of such contract. Where payments under a contract are to be made out of the proceeds of a Special Account, the documentation and the information to be furnished to the Association pursuant to the provisions of this paragraph shall be furnished to the Association as part of the evidence required under paragraph 4 of Schedule 5 to this Agreement. 5. The provisions of the preceding paragraph 4 of this Section shall not apply to contracts on account of which the Association has authorized withdrawals from the Credit Account on the basis of statements of expenditure. Actions Referred to in Paragraph 4 (b) and (c) of Schedule 1 to this Agreement Part A: For the purpose of second tranche release 1. The Borrower has provided satisfactory evidence that the funds allocated for road maintenance in the Finance Law 1992 have actually been used for that purpose, has made adequate allocations in its review FY 1993 budget for road maintenance and approval, has deposited an adequate amount into the account in accordance with the provisions Section 6.01 (d) of paragraph 1 of Appendix 1 to the Guidelines. Procurement of all goods and works shall be undertaken in accordance with such procurement plan as shall have been approved by the Bank, and with the provisions of said paragraph 1this Agreement. 2. Prior Review With respect to: The Borrower has provided evidence satisfactory to the Association, establishing that: (a) all periodic maintenance works and 20% of all routine maintenance works in the first two contracts under Parts C.1 and C.2 hereofroad sub-sector have been carried out by contractors; and and (b) each contract payment delays of the Borrower vis- -vis such contractors do not exceed three months. 3. The Borrower and SNCS are in compliance with their respective obligations under Parts B the SNCS contrat-plan. 4. The Borrower and C.3 hereof, PAD are in compliance with their respective obligations under the procedures set forth PAD contrat-plan. 5. PAD has revised its tariff structure in paragraphs 2 and 3 of Appendix 1 a manner satisfactory to the Guidelines shall applyAssociation. 6. The Borrower and AIR SENEGAL are in compliance with their respective obligations under the AIR SENEGAL contrat-plan.

Notification and Advertising. The international community should be notified in a timely manner of the opportunity to bid. This will be done by advertising invitations to apply for inclusion in a bidder’s invitation list, to prequalify apply for prequalification, or to bid; such advertisements should be placed in at least one newspaper of general circulation in the Borrower’s country and, in addition, in at least one of the following forms: (i) a notice in the United Nations publication, Development Forum, Business Edition; or (ii) an advertisement in a newspaper, periodical or technical journal of wide international circulation; or (iii) a notice to local representatives of countries and territories referred to in the Guidelines, that are potential suppliers of the goods required." (b) The following is added at the end of paragraph 2.21 of the Guidelines: "As a further alternative, bidding documents may require the bidder to state the bid price in a single currency widely used in international trade and specified in the bidding documents." (c) Paragraphs 2.55 and 2.56 of the Guidelines are deleted. 2. The above-mentioned eligibility restrictions shall be stated in the tender or prequalification documents for each contract the procurement of goods pursuant to paragraph I of this Schedule. 3. Contracts for goods estimated to cost the equivalent of less than $10,000,000 equivalent or more 1,000,000 each shall be advertised in accordance with the procedures applicable to large contracts under paragraph 2.8 of the Guidelines. Part C: Other Procurement Procedures 1. International Shopping Office equipment, including telephone exchanges, copiers, fax machines, and microcomputers, estimated to cost more than $50,000, but $300,000 equivalent or less per contract, may be procured under contracts awarded on the basis of international shopping the normal procurement procedures of the purchaser of such goods. 4. With respect to each contract referred to in accordance paragraph 1 of this Schedule, the Borrower shall furnish to the Administrator, prior to the submission to the Administrator of the first application for withdrawal of funds from the African Facility Credit Account in respect of such contract, two conformed copies of such contract, together with the analysis of the respective bids and recommendations for award, a description of the advertising and tendering procedures followed and such other information as the Administrator shall reasonably request. 5. With respect to each contract referred to in paragraph 3 of this Schedule, the Borrower shall furnish to the Administrator, prior to the submission to the Administrator of the first application for withdrawal of funds from the African Facility Credit Account in respect thereof, such documentation and information as the Administrator may reasonably request to support withdrawal applications in respect of such contract. 6. Notwithstanding the provisions of paragraphs 3.5 4 and 3.6 5 of this Schedule, where payments under a contract are to be made out of the Guidelines. 2. National Shopping Telephones, local area networks wiring, library supplies, and office supplies, estimated to cost $50,000 equivalent or less per contract and $900,000 equivalent or less in the aggregate (which aggregate shall not apply in the case of goods financed under Part E proceeds of the Project)Special Account, may the copies of such contract or the documentation and the information to be procured under contracts awarded on furnished to the basis of national shopping procedures in accordance with Administrator pursuant to the provisions of paragraphs 3.5 and 3.6 paragraph 4 or paragraph 5 of this Schedule, as the Guidelines. 3. Procurement of Small Works Eligible works estimated not to exceed $75,000 equivalent per contractcase may be, and not to exceed $600,000 in the aggregate, shall be procured and awarded on the basis of quotations obtained from three qualified domestic contractors in response to a written invitation. The invitation shall include a detailed description of the works, including basic specifications, the required completion date, a basic form of agreement acceptable to the Bank, and relevant drawings, where applicable. The award shall be made to the contractor who offers the lowest price quotation for the required work, and who has the experience and resources to successfully complete the contract. Part D: Review by the Bank of Procurement Decisions 1. Procurement Planning Prior to the issuance of any invitations to prequalify for bidding or to bid for contracts, the proposed procurement plan for the Project shall be furnished to the Bank Administrator as part of the evidence required under paragraph 4 of Schedule 3 to this Agreement. 7. The provisions of the preceding paragraphs 4, 5 and 6 shall not apply to contracts on account of which the Administrator has authorized withdrawals from the African Facility Credit Account on the basis of statements of expenditure. The Borrower has: 1. adopted its three-year public investment program for its review and approval, 1989-1991; 2. implemented the supplementary budget for 1988 in accordance with the provisions Program; 3. adopted its 1989 budget for current expenditures, including an increase in non-personnel operating expenditures of paragraph 1 development-oriented ministries; 4. completed the review of Appendix 1 to XXXXXXXXXX’s performance for the Guidelines. Procurement of all goods and works shall be undertaken in accordance with such procurement plan as shall have been approved by the Bank1988/89 cotton crop year, and with lowered the provisions of said paragraph 1. 2. Prior Review With respect to: (a) floor price for the first two contracts under Parts C.1 and C.2 hereof; and (b) each contract under Parts B and C.3 hereof, the procedures set forth in paragraphs 2 and 3 of Appendix 1 to the Guidelines shall apply.1989/90 cotton crop year;

Notification and Advertising. The international community should be notified in a timely manner of the opportunity to bid. This will be done by advertising invitations to apply for inclusion in a bidder’s invitation list, to prequalify apply for prequalification, or to bid; such advertisements should be placed in at least one newspaper of general circulation in the Borrower’s country and, in addition, in at least one of the following forms: (i) a notice in the United Nations publication, Development Forum, Business Edition; or (ii) an advertisement in a newspaper, periodical or technical journal of wide international circulation; or (iii) a notice to local representatives of countries and territories referred to in the Guidelines, that are potential suppliers of the goods required." (b) The following is added at the end of paragraph 2.21 of the Guidelines: "As a further alternative, bidding documents may require the bidder to state the bid price in a single currency widely used in international trade and specified in the bidding documents." (c) Paragraphs 2.55 and 2.56 of the Guidelines are deleted. 2. Contracts for each contract goods estimated to cost the equivalent of $10,000,000 equivalent 100,000 or more shall be advertised in accordance with the procedures applicable to large contracts under paragraph 2.8 of the Guidelines. Part C: Other Procurement Procedures 1. International Shopping Office equipment, including telephone exchanges, copiers, fax machines, and microcomputers, estimated to cost more than $50,000more, but not to exceed the equivalent of $300,000 equivalent or less per contract1,000,000, may be procured under contracts awarded through limited international bidding procedures, on the basis of international shopping procedures evaluation and comparison of bids invited from a list of at least three qualified suppliers eligible under the Guidelines, from at least two qualified countries, in accordance with the provisions of paragraphs 3.5 procedures set forth in Sections I and 3.6 II of the GuidelinesGuidelines (excluding paragraph 2.8, 2.9, 2.55 and 2.56 thereof). 23. National Shopping Telephones, local area networks wiring, library supplies, and office supplies, Contracts for goods estimated to cost the equivalent of less than $50,000 equivalent or less per contract and $900,000 equivalent or less in the aggregate (which aggregate 100,000 each, shall not apply in the case be awarded to suppliers of such goods financed under Part E of the Project), may be procured under contracts awarded on the basis of national shopping procedures comparison of price quotations from at least three suppliers eligible under the Guidelines, in accordance with Section I and Section II, paragraph 3.4 of the Guidelines, or with procedures acceptable to the Association. 4. Contracts for goods for which there is a sole source of supply worldwide, or that are for proprietary goods, may be purchased by direct contracting with the supplier or manufacturer, in accordance with procedures acceptable to the Association. 5. With respect to each contract referred to in paragraphs 1 and 2 of this Schedule, Central Bank shall furnish to the Association, prior to the submission to the Association of the first application for withdrawal of funds from the Credit Account in respect of such contract, two conformed copies of such contract, together with the analysis of the respective bids and recommendations for award, a description of the advertising and tendering procedures followed and such other information as the Association shall reasonably request. 6. With respect to each contract referred to in paragraphs 3 and 4 of this Schedule, Central Bank shall furnish to the Association, prior to the submission to the Association of the first application for withdrawal of funds from the Credit Account in respect thereof, such documentation and information as the Association may reasonably request to support withdrawal applications in respect of such contract. 7. Notwithstanding the provisions of paragraphs 3.5 5 and 3.6 6 of this Schedule, where payments under a contract are to be made out of the Guidelines. 3. Procurement of Small Works Eligible works estimated not to exceed $75,000 equivalent per contract, and not to exceed $600,000 in the aggregate, shall be procured and awarded on the basis of quotations obtained from three qualified domestic contractors in response to a written invitation. The invitation shall include a detailed description proceeds of the works, including basic specificationsSpecial Account, the required completion date, a basic form copies of agreement acceptable such contract or the documentation and the information to be furnished to the Bank, and relevant drawings, where applicable. The award shall be made Association pursuant to the contractor who offers the lowest price quotation for the required work, provisions of paragraphs 5 and who has the experience and resources to successfully complete the contract. Part D: Review by the Bank 6 of Procurement Decisions 1. Procurement Planning Prior to the issuance of any invitations to prequalify for bidding or to bid for contracts, the proposed procurement plan for the Project this Schedule shall be furnished to the Bank for its review Association as part of the evidence required under paragraph 4 of Schedule 4 to the Development Credit Agreement. 8. The provisions of the preceding paragraphs 5 and approval6 shall not apply to contracts on account of which the Association has authorized withdrawals from the Credit Account on the basis of statements of expenditure. 9. In order to assist the Borrower in carrying out the Project, the Borrower shall cause to be employed, consultants whose qualifications, experience, terms and conditions of employment shall be satisfactory to the Association. Such consultants shall be selected in accordance with the provisions of paragraph 1 of Appendix 1 principles and procedures satisfactory to the Guidelines. Procurement Association on the basis of all goods the "Guidelines for the Use of Consultants by World Bank Borrowers and works shall be undertaken in accordance with such procurement plan as shall have been approved by the BankWorld Bank as Executing Agency" published by the Bank in August 1981. 1. The Central Bank shall enter into a separate Financing Agreement with YPFB and ENFE, and a separate SNC Grant Agreement with SNC for purposes of carrying out Parts A, B and C of the provisions Project, respectively, that shall provide the terms and conditions for, and procedures to be followed in, carrying out the respective import plan of said paragraph 1such Public Enterprise and SNC. 2. Prior Review With respect to: The procedures to be followed under each Financing Agreement and the SNC Grant Agreement shall be satisfactory to the Association and shall include, inter alia: (ai) review and verification by the first two contracts Comision of proposed expenditures for goods under Parts C.1 the respective import plan of each Public Enterprise and C.2 hereofSNC, and of eligibility of proposed expenditures for services under the Project for purposes of determining eligibility for financing out of the proceeds of the Credit; (ii) approval and authorization of credit or transfer of proceeds by the Project Coordinating Committee; (iii) issuance of credit by Central Bank to each Public Enterprise for financing the importation of eligible goods, services, or technical assistance; and (iv) transfer of proceeds by Central Bank to SNC for financing the importation of eligible goods and services. 3. The terms and conditions of the Financing Agreement and the SNC Grant Agreement shall be satisfactory to the Association and shall include, inter alia, provisions that: (bi) such credit received by each contract under Parts B Public Enterprise shall be denominated in dollars and C.3 hereofrepaid to the Borrower, through the Central Bank, in national currency, the procedures set forth in paragraphs 2 rate of exchange to be determined as of the date each payment is made, such payments to be made at least semiannually; (ii) such credit shall bear a fixed interest rate of eight and 3 of Appendix 1 one-half (8.5%) per annum on the principal amount withdrawn and outstanding from time to time, or such other rate and on such other terms as shall be acceptable to the Guidelines shall apply.Association;

Notification and Advertising. The international community should be notified in a timely manner of the opportunity to bid. This will be done by advertising invitations to apply for inclusion in a bidder’s invitation list, to prequalify apply for prequalification, or to bid; such advertisements should be placed in at least one newspaper of general circulation in the Borrower’s country and, in addition, in at least one of the following forms: (i) a notice in the United Nations publication, Development Business; or (ii) an advertisement in a newspaper, periodical or technical journal of wide international circulation; or (iii) a notice to local representatives of countries and territories referred to in the Guidelines, that are potential suppliers of the goods required." (b) The following is added at the end of paragraph 2.21 of the Guidelines: "As a further alternative, bidding documents may require the bidder to state the bid price in a single currency widely used in international trade and specified in the bidding documents." (c) Paragraphs 2.55 and 2.56 of the Guidelines are deleted. 2. Contracts for each contract the procurement of goods estimated to cost the equivalent of less than $10,000,000 equivalent or more 5,000,000 shall be advertised awarded: (a) by purchasers required to follow the Borrower’s public procurement procedures for the importation of goods, on the basis of such procedures, provided that such procedures shall have been found acceptable by the Bank; and (b) by other purchasers, in accordance with the procedures applicable to large established commercial practice, provided that such contracts under paragraph 2.8 of the Guidelines. Part C: Other Procurement Procedures 1. International Shopping Office equipment, including telephone exchanges, copiers, fax machines, and microcomputers, estimated to cost more than $50,000, but $300,000 equivalent or less per contract, may shall be procured under contracts awarded on the basis of international shopping evaluation and comparison of quotations obtained from suppliers from at least two countries, except that direct contracting procedures in accordance with acceptable to the provisions of paragraphs 3.5 and 3.6 of the Guidelines. 2. National Shopping Telephones, local area networks wiring, library supplies, and office supplies, estimated to cost $50,000 equivalent or less per contract and $900,000 equivalent or less in the aggregate (which aggregate shall not apply in the case of goods financed under Part E of the Project), Bank may be procured used where considered appropriate under contracts awarded on the basis of national shopping procedures in accordance with the provisions of paragraphs paragraph 3.5 and 3.6 of the Guidelines. 3. Procurement Subject to the prior approval of Small Works Eligible works estimated not to exceed $75,000 equivalent per contractthe Bank, and not to exceed $600,000 in the aggregate, shall commonly traded commodities may be procured and awarded on the basis through organized international commodity markets or other channels of quotations obtained from three qualified domestic contractors in response to a written invitation. The invitation shall include a detailed description of the works, including basic specifications, the required completion date, a basic form of agreement competitive procurement acceptable to the Bank, and relevant drawings, where applicable. The award shall be made in accordance with procedures acceptable to the contractor who offers Bank. 4. With respect to each contract referred to in paragraph 1 of this Schedule, the lowest price quotation for Borrower shall furnish to the required workBank, and who has prior to the experience and resources submission to successfully complete the contract. Part D: Review by the Bank of Procurement Decisions 1. Procurement Planning Prior to the issuance first application for withdrawal of any invitations to prequalify funds from the Loan Account in respect of such contract, two conformed copies of such contract, together with the analysis of the respective bids and recommendations for bidding or to bid for contractsaward, a description of the proposed procurement plan for the Project shall be furnished to advertising and tendering procedures followed and such other information as the Bank for its review and approval, in accordance with the provisions of paragraph 1 of Appendix 1 to the Guidelines. Procurement of all goods and works shall be undertaken in accordance with such procurement plan as shall have been approved by the Bank, and with the provisions of said paragraph 1reasonably request. 25. Prior Review With respect to: (a) the first two contracts under Parts C.1 and C.2 hereof; and (b) to each contract under Parts B and C.3 hereof, the procedures set forth referred to in paragraphs 2 and 3 of Appendix this Schedule, the Borrower shall furnish to the Bank, prior to the submission to the Bank of the first application for withdrawal of funds from the Loan Account in respect thereof, such documentation and information as the Bank may reasonably request to support withdrawal applications in respect of such contract. 6. The provisions of the preceding paragraph 5 of this Schedule shall not apply to contracts on account of which withdrawals from the Loan Account are to be made on the basis of statements of expenditure. Actions Referred to in Paragraph 5 (a) of Schedule 1 to this Agreement 1. Adequate progress in the Guidelines execution of the EBRP Sub-program as provided in the EBRP Law, the EBRP Decree and the Intervention Decree, including substantial compliance by the SOCBs and XXX with the obligations and deadlines therein set forth and appropriate monitoring of the SOCBs’ execution of the EBRP Sub-program by the Monitoring Unit. 2. The Recapitalization Bonds have been issued and delivered to the SOCBs in an aggregate amount and on terms and conditions acceptable to the Bank. 3. Adequate progress in increasing the capabilities of WODs by SOCBs. 4. The Borrower and the Bank shall applyhave agreed on the amount of appropriations for providing financial support to Special SOEs under the draft budget for fiscal year 1994. 5. Progress in the execution of the Privatization Sub-program, as measured by privatization targets therein set forth. 6. The Privatization Law has been amended to facilitate the carrying out of the Privatization Sub-program. 7. Enactment of the Law on the creation of National Investment Funds and their privatization. 8. The Borrower has formally assigned ownership of SOEs to the relevant Governmental agencies. 9. The MOP 1993 Program of Organizational and Staffing Strengthening has been carried out and the Borrower and the Bank have agreed on a program of organizational and staffing strengthening to be carried out by MOP in 1994. 10. The Borrower has developed a medium-term program aimed at the privatization of the banking system, including targets to attain its objectives. 11. Adequate progress in the execution of the Bank Supervision Sub-program by NBP. 12. The Borrower has provided financial assistance to Special SOEs under the EBRP Sub-program in accordance with the 1993 Budget Law, and the Intervention Decree. 13. Adequate progress in the execution of the XXX Program of Organizational and Staffing Strengthening - Phase I, and the Borrower and the Bank have agreed on a second phase of such program to be carried out by XXX in 1994. 14. The Borrower has implemented measures ensuring that the Specialized Banks will not cause disruptions in the execution of the EBRP Sub-program. SCHEDULE 6 Actions Referred to in Paragraph 5 (b) of Schedule 1 to this Agreement 1. Adequate progress in the execution of the EBRP Sub-program as provided in the EBRP Law, the EBRP Decree and the Intervention Decree, including substantial compliance by the SOCBs and XXX with the obligations and deadlines therein set forth and appropriate monitoring of the SOCBs’ execution of the EBRP Sub-program by the Monitoring Unit. 2. Timely compliance by the Borrower of its obligations to service the Recapitalization Bonds. 3. The Borrower’s Budget Law for fiscal year 1994 has been enacted, including appropriations, in amounts satisfactory to the Bank, for providing assistance to Special SOEs under the EBRP Sub- program. 4. The Borrower has provided financial assistance to Special SOEs under the EBRP Sub-program in accordance with the Borrower’s 1994 Budget Law, and the Intervention Decree. 5. Progress in the execution of the Privatization Sub-program, as measured by the privatization targets therein set forth. 6. Progress in the execution of the Banking System Transformation Sub-program and particularly in the privatization of SOCBs. 7. NBP shall have carried out the Bank Supervision Sub-program in accordance with its terms. 8. Of those SOEs that have concluded conciliation procedures pursuant to the EBRP Law about seventy percent have been converted into joint stock companies and about thirty percent of such SOEs have been either privatized or the share of the Borrower’s Treasury in their capital stock has been reduced to less than fifty percent. 9. Adequate progress in the execution of the MOP 1994 Program of Organizational and Staffing Strengthening. 10. Adequate progress in the execution of the XXX Program of Organizational and Staffing Strengthening - Phase II. 11. The MOF shall have contracted for full portfolio and financial audits of the SOCBs as of December 31, 1993, and assessments of the performance of the SOCBs of their obligations under the EBRP law and the EBRP Decree, and shall have furnished to the Bank copies of such audits and assessments, with the exception of the portfolio and financial audits of SOCBs selected by the MOF for privatization in 1994.

Notification and Advertising. The international community should be notified in a timely manner of the opportunity to bid. This will be done by advertising invitations to apply for inclusion in a bidder’s invitation list, to prequalify apply for prequalification, or bid for each contract estimated to cost $10,000,000 equivalent bid; such advertisements should be placed in at least one newspaper of general circulation in the Borrower’s country and, in addition, in at least one of the following forms: (a) a notice in the United Nations publication, Development Business; (b) an advertisement in a newspaper, periodical or more shall be advertised technical journal of wide international circu- lation; or (c) a notice to local representatives of countries and territories referred to in accordance with the procedures applicable to large contracts under Guidelines, that are potential suppliers of the goods required." (3) The following is added at the end of paragraph 2.8 2.21 of the Guidelines: "As a further alternative, bidding documents may require the bidder to state the bid price in a single currency widely used in international trade and specified in the bidding documents." (4) Paragraph 2.55 and 2.56 of the Guidelines are deleted. Part CB: Other Procurement Procedures 1. International Shopping Office equipment, including telephone exchanges, copiers, fax machines, and microcomputers, estimated to cost more than $50,000, but $300,000 equivalent or less per contractContracts for goods which the Bank agrees are available through limited sources of supply, may be procured awarded through limited international bidding procedures on the basis of evaluation and comparison of bids invited from a list of at least three qualified suppliers eligible under contracts the Guidelines and in accordance with the procedures set forth in Sections I and II of the Guidelines (excluding paragraphs 2.8, 2.9, 2.55 and 2.56 thereof). 2. Contracts for goods which the Bank agrees the early delivery thereof is essential for achieving the objectives of the Project, may be awarded on the basis of international shopping procedures comparison of price quotations obtained from at least three suppliers from at least two different countries eligible under the Guidelines, in accordance with procedures acceptable to the provisions of paragraphs 3.5 and 3.6 of the Guidelines. 2. National Shopping Telephones, local area networks wiring, library supplies, and office supplies, estimated to cost $50,000 equivalent or less per contract and $900,000 equivalent or less in the aggregate (which aggregate shall not apply in the case of goods financed under Part E of the Project), may be procured under contracts awarded on the basis of national shopping procedures in accordance with the provisions of paragraphs 3.5 and 3.6 of the GuidelinesBank. 3. Procurement of Small Works Eligible works estimated not to exceed $75,000 equivalent per contractContracts for goods which the Bank agrees are proprietary, and not to exceed $600,000 may be awarded after direct negotiations with suppliers, in the aggregate, shall be procured and awarded on the basis of quotations obtained from three qualified domestic contractors in response to a written invitation. The invitation shall include a detailed description of the works, including basic specifications, the required completion date, a basic form of agreement accordance with procedures acceptable to the Bank, and relevant drawings, where applicable. The award shall be made to the contractor who offers the lowest price quotation for the required work, and who has the experience and resources to successfully complete the contract. Part DC: Review by the Bank of Procurement Decisions 1. Procurement Planning Prior to the issuance of any invitations to prequalify for bidding or to bid for contracts, the proposed procurement plan for the Project shall be furnished to the Bank for its review and approval, in accordance with the provisions of paragraph 1 of Appendix 1 to the Guidelines. Procurement of all goods and works shall be undertaken in accordance with such procurement plan as shall have been approved by the Bank, and with the provisions of said paragraph 1. 2. Prior Review With respect to: (a) the first two contracts under Parts C.1 and C.2 hereof; and (b) each contract under Parts B and C.3 hereof, the The procedures set forth in paragraphs 2 and 3 4 of Appendix 1 to the Guidelines shall applyapply in respect of the review of invitations to bid and of proposed awards and final contracts. 2. The figure of 15% is hereby specified for purposes of paragraph 4 of appendix 1 to the Guidelines.

Notification and Advertising. The international community should be notified in a timely manner of the opportunity to bid. This will be done by advertising invitations to apply for inclusion in a bidder’s invitation list, to prequalify apply for prequalification, or to bid; such advertisements should be placed in at least one newspaper of general circulation in the Borrower’s country and, in addition, in at least one of the following forms: (i) a notice in the United Nations publication, Development Forum, Business Edition; or (ii) an advertisement in a newspaper, periodical or technical journal of wide international circula- tion; or (iii) a notice to local representatives of countries and territories referred to in the Guidelines, that are potential suppliers of the goods required." (b) The following is added at the end of paragraph 2.21 of the Guidelines: "As a further alternative, bidding documents may require the bidder to state the bid price in a single currency widely used in international trade and specified in the bidding documents." (c) Paragraphs 2.55 and 2.56 of the Guidelines are deleted. 2. Contracts for each contract goods estimated to cost the equivalent of less than $10,000,000 equivalent or more 5,000,000 each shall be advertised in accordance with the procedures applicable to large contracts under paragraph 2.8 of the Guidelines. Part C: Other Procurement Procedures 1. International Shopping Office equipment, including telephone exchanges, copiers, fax machines, and microcomputers, estimated to cost more than $50,000, but $300,000 equivalent or less per contract, may be procured under contracts awarded on the basis of international shopping the normal procurement procedures of the purchaser of such goods. 3. With respect to each contract referred to in paragraph 1 of this Schedule, the Borrower shall furnish to the Bank, prior to the submission to the Bank of the first application for withdrawal of funds from the Loan Account in respect of such contract, two conformed copies of such contract, together with the analysis of the respective bids and recommendations for award, a description of the advertising and tendering procedures followed and such other information as the Bank shall reasonably request. 4. With respect to each contract referred to in paragraph 2 of this Schedule, the Borrower shall furnish to the Bank, prior to the submission to the Bank of the first application for withdrawal of funds from the Loan Account in respect thereof, such documentation and information as the Bank may reasonably request to support withdrawal applications in respect of such contract. 5. The provisions of the preceding paragraphs 3, 4 and 5 shall not apply to contracts on account of which the Bank has authorized withdrawals from the Loan Account on the basis of statements of expenditure. Actions Referred to in Paragraph 3 (b) of Schedule 1 to this Agreement 1. The value of the aggregate expenditures for 1988 of the Consolidated Public Sector has been reduced by not less than 40 million Lempiras, such reduction to be calculated in accordance with a methodology satisfactory to the provisions of paragraphs 3.5 Borrower and 3.6 of the GuidelinesBank. 2. National Shopping Telephones, local area networks wiring, library supplies, and office supplies, estimated to cost $50,000 equivalent or less per contract and $900,000 equivalent or less in the aggregate (which aggregate shall not apply in the case of goods financed under Part E The deficit of the Project)Consolidated Public Sector during the last six months of 1988 has been reduced by not less than 65 million Lempiras, may all to be procured under contracts awarded on the basis of national shopping procedures calculated in accordance with a methodology satisfactory to the provisions Borrower and the Bank. (a) Enactment of paragraphs 3.5 a law by the Borrower’s Legislative Branch, and 3.6 promulgation thereof by the Borrower’s Executive Branch, setting forth the Borrower’s Central Government budget for 1989; and (b) approval by the Borrower’s Executive Branch of budgets, at levels satisfactory to the Borrower and the Bank, for each of the GuidelinesAutonomous Institutions. The measures mentioned above will be taken so as to achieve overall results, as follows: (i) that the aggregate value of the aforesaid budgets, when combined with the duly approved budgets for 1989 of all other entities and agencies referred to in Section 1.02 (c) of this Agreement, will show that the deficit of the Consolidated Public Sector for 1989, when compared with the deficit of said Sector for 1988, all calculated in accordance with a methodology satisfactory to the Borrower and the Bank, has been reduced by one and eight-tenths of a percentage point of the estimated 1989 gross domestic product estimated in accordance with a methodology satisfactory to the Borrower and the Bank; and (ii) that the level of Net Current Expenditures of the Borrower’s Central Government for 1989 has been reduced to 17.6% of the 1989 gross domestic product estimated in accordance with a methodology satisfactory to the Borrower and the Bank. 34. Procurement Preparation of Small Works Eligible works estimated not an administrative reform program aimed at improving tax collection procedures during 1989. 5. Preparation of a program of reforms for Autonomous Institutions to exceed $75,000 equivalent per contractbe initiated during 1989. 6. Preparation of a month-by-month action plan for 1989 for the execution of CONADI’s privatization program, as defined in the Borrower’s Decrees No.161/85 and 197/85. 7. Preparation of a plan of action to be implemented during 1989 to rationalize ENEE’s expenditures, investment and management, and to restructure ENEE’s debt. 8. Agreement has been reached between the Borrower and the Bank on an investment program for 1989 of the Consolidated Public Sector. 9. A list of non-essential items has been set forth and all such measures as shall be necessary have been taken to ensure that foreign exchange for the import of any item included in such list will not be available at any point in time at a rate that is lower than the implied rate of exchange derived from the price, prevailing at the point in time in question, at which CETRAs are being acquired in their secondary market; provided, however, that the aggregate value of the imports during 1987 corresponding to exceed $600,000 items included in the aggregateaforesaid list is not lower than 40% of the aggregate value of all imports into Honduras during such year. 10. Enactment of a law by the Borrower’s Legislative Branch and promulgation thereof by the Borrower’s Executive Branch, shall be procured which will eliminate import duty exemptions, and awarded certain surcharges already agreed between the Borrower and the Bank, while allowing increases in yearly revenues, substantially in the terms on which the basis corresponding xxxx was submitted by said Executive Branch to said Legislative Branch on June 22, 1988. 11. Measures have been taken to comply with the targets for the September 30, 1988 through December 31, 1988 period of quotations obtained from three qualified domestic contractors in response to a written invitationthe Monetary Program. 12. The invitation shall include a detailed description program of action referred to in Section 3.05 of the works, including basic specifications, draft Loan Agreement between the required completion date, a basic form of agreement acceptable Borrower and the Bank (Fourth Agricultural Credit Project) submitted to the Bank’s Board of Directors for its consideration and approval in its meeting of September 15, 1988 has begun to be carried out and relevant drawingsthe Borrower’s Central Bank rediscount rate has been raised, where applicable. The award shall be made as of January 1, 1989, to not less than 10% per annum, except for loans directly related to the contractor who offers the lowest price quotation for the required work, and who has the experience and resources production of basic grains. 13. Presentation to successfully complete the contract. Part D: Review by the Bank of Procurement Decisions 1. Procurement Planning Prior a plan of action aimed at strengthening the ability of the Borrower’s Superintendency of Banks to monitor commercial banks’ transactions and performance taking into account the issuance recommendations of any invitations to prequalify for bidding or to bid for contracts, the proposed procurement plan consultants already selected for the related study to be carried out under Part B.3 of the Project shall be furnished to described in the Loan Agreement between the Borrower and the Bank (Third Industrial Credit Project) for its review and approvalLoan 2703-HO, in accordance with the provisions of paragraph 1 of Appendix 1 dated July 7, 1986, as amended from time to the Guidelines. Procurement of all goods and works shall be undertaken in accordance with such procurement plan as shall have been approved by the Bank, and with the provisions of said paragraph 1time. 2. Prior Review With respect to: (a) the first two contracts under Parts C.1 and C.2 hereof; and (b) each contract under Parts B and C.3 hereof, the procedures set forth in paragraphs 2 and 3 of Appendix 1 to the Guidelines shall apply.

Notification and Advertising. The international community should be notified in a timely manner of the opportunity to bid. This will be done by advertising invitations to apply for inclusion in a bidder’s invitation list, to prequalify apply for prequalification, or to bid; such advertisements should be placed in at least one newspaper of general circulation in the Borrower’s country and, in addition, in al least one of the following forms: (A) a notice in the United Nations publication, Development Business; or (B) an advertisement in a newspaper, periodical ortechnical journal of wide international circulation; or (C) a notice to local representatives of countries and territories referred to in the Guidelines, that are potential suppliers of the goods required." (ii) The following is added at the end of paragraph 2.21 of the Guidelines: "As a further alternative, bidding documents may require the bidder to state the bid for each contract price in a single currency widely used in international trade and specified in the bidding documents." (iii) Paragraphs 2.55 and 2.56 of the Guidelines are deleted. (b) Livestock feed estimated to cost less than the equivalent of $10,000,000 equivalent or more shall be advertised in accordance with the procedures applicable to large contracts under paragraph 2.8 of the Guidelines. Part C: Other Procurement Procedures 1. International Shopping Office equipment, including telephone exchanges, copiers, fax machines, and microcomputers, estimated to cost more than $50,000, but $300,000 equivalent or less 5,000,000 per contract, may be procured under contracts awarded on the basis of international shopping procedures evaluation and comparison of price quotations obtained from more than one supplier, in accordance with the provisions of paragraphs 3.5 and 3.6 of the Guidelines. 2. National Shopping Telephones, local area networks wiring, library supplies, and office supplies, estimated to cost $50,000 equivalent or less per contract and $900,000 equivalent or less in the aggregate (which aggregate shall not apply in the case of goods financed under Part E of the Project), may be procured under contracts awarded on the basis of national shopping procedures in accordance with the provisions of paragraphs 3.5 and 3.6 of the Guidelines. 3. Procurement of Small Works Eligible works estimated not to exceed $75,000 equivalent per contract, and not to exceed $600,000 in the aggregate, shall be procured and awarded on the basis of quotations obtained from three qualified domestic contractors in response to a written invitation. The invitation shall include a detailed description of the works, including basic specifications, the required completion date, a basic form of agreement acceptable to the Bank, and relevant drawings, where applicable. The award shall be made to the contractor who offers the lowest price quotation for the required work, and who has the experience and resources to successfully complete the contract. Part D: Review by the Bank of Procurement Decisions 1. Procurement Planning Prior to the issuance Review of any invitations to prequalify for bidding or to bid for and of proposed awards and final contracts, the proposed procurement plan for the Project shall be furnished to the Bank for its review and approval, in accordance with the provisions of paragraph 1 of Appendix 1 to the Guidelines. Procurement of all goods and works shall be undertaken in accordance with such procurement plan as shall have been approved by the Bank, and with the provisions of said paragraph 1.: 2. Prior Review With respect to: (a) the first two contracts under Parts C.1 and C.2 hereof; and (b) With respect to each contract under Parts B and C.3 hereofestimated to cost the equivalent of $300,000 or more, the procedures set forth in paragraphs 2 and 3 4 of Appendix 1 to the Guidelines shall apply. Where payments for such contract are to be made out of the Special Account, such procedures shall be modified to ensure that the two conformed copies of the contract required to be furnished to the Bank pursuant to said paragraph 2 (d) shall be furnished to the Bank prior to the making of the first payment out of the Special Account in respect of such contract. (b) With respect to each contract not governed by the preceding paragraph, the procedures set forth in paragraphs 3 and 4 of Appendix 1 to the Guidelines shall apply. Where payments for such contract are to be made out of the Special Account, such procedures shall be modified to ensure that the two conformed copies of the contract together with the other information required to be furnished to the Bank pursuant to said paragraph 3 shall be furnished to the Bank as part of the evidence to be furnished pursuant to paragraph 4 of Schedule 6 to this Agreement 2. The figure of 15% is hereby specified for purposes of paragraph 4 of Appendix 1 to the Guidelines.

Notification and Advertising. The international community should be notified in a timely manner of the opportunity to bid. This will be done by advertising invitations to apply for inclusion in a bidder’s invitation list, to prequalify apply for prequalification, or to bid; such advertisements should be placed in at least one newspaper of general circulation in the Borrower’s country and, in addition, in at least one of the following forms: (i) a notice in the United Nations publication, Development Forum, Business Edition; or (ii) an advertisement in a newspaper, periodical or technical journal of wide international circulation; or (iii) a notice to local representatives of countries and territories referred to in the Guidelines, that are potential suppliers of the goods required." (b) The following is added at the end of paragraph 2.21 of the Guidelines: "As a further alternative, bidding documents may require the bidder to state the bid price in a single currency widely used in international trade and specified in the bidding documents." (c) Paragraphs 2.55 and 2.56 of the Guidelines are deleted. 2. Contracts for each contract goods estimated to cost the equivalent of less than $10,000,000 equivalent or more 1,000,000 each shall be advertised in accordance with the procedures applicable to large contracts under paragraph 2.8 of the Guidelines. Part C: Other Procurement Procedures 1. International Shopping Office equipment, including telephone exchanges, copiers, fax machines, and microcomputers, estimated to cost more than $50,000, but $300,000 equivalent or less per contract, may be procured under contracts awarded on the basis of international shopping the normal procurement procedures of the purchaser of such goods. 3. With respect to each contract referred to in paragraph 1 of this Schedule, the Borrower shall furnish to the Association, prior to the submission to the Association of the first application for withdrawal of funds from the Credit Account in respect of such contract, two conformed copies of such contract, together with the analysis of the respective bids and recommendations for award, a description of the advertising and tendering procedures followed and such other information as the Association shall reasonably request. 4. With respect to each contract referred to in paragraph 2 of this Schedule, the Borrower shall furnish to the Association, prior to the submission to the Association of the first application for withdrawal of funds from the Credit Account in respect thereof, such documentation and information as the Association may reasonably request to support withdrawal applications in respect of such contract. 5. Notwithstanding the provisions of paragraphs 3 and 4 of this Schedule, where payments under a contract are to be made out of the proceeds of the Special Account, the copies of such contract or the documentation and the information to be furnished to the Association pursuant to the provisions of paragraph 3 or paragraph 4 of this Schedule, as the case may be, shall be furnished to the Association as part of the evidence required under paragraph 4 of Schedule 4 to this Agreement. 6. The provisions of the preceding paragraphs 3, 4 and 5 shall not apply to contracts on account of which the Association has authorized withdrawals from the Credit Account on the basis of statements of expenditure. The Borrower has: 1. adopted its three-year public investment program for 1989-1991; 2. implemented the supplementary budget for 1988 in accordance with the Program; 3. adopted its 1989 budget for current expenditures, including an increase in non-personnel operating expenditures of development-oriented ministries; 4. completed the review of XXXXXXXXXX’s performance for the 1988/89 cotton crop year, and lowered the floor price for the 1989/90 cotton crop year; 5. established a fund to support cotton producer floor price and a mechanism for distributing cotton sector surplus; and 6. made significant progress in the public enterprises studies. 1. For the purposes of this Schedule: (a) the term "eligible expenditures" means expenditures in respect of the reasonable cost of goods required during the execution of the Program and to be financed out of the proceeds of the Credit in accordance with the provisions of paragraphs 3.5 and 3.6 of the Guidelines. 2. National Shopping Telephones, local area networks wiring, library supplies, and office supplies, estimated to cost $50,000 equivalent or less per contract and $900,000 equivalent or less in the aggregate (which aggregate shall not apply in the case of goods financed under Part E of the Project), may be procured under contracts awarded on the basis of national shopping procedures in accordance with the provisions of paragraphs 3.5 and 3.6 of the Guidelines. 3. Procurement of Small Works Eligible works estimated not to exceed $75,000 equivalent per contract, and not to exceed $600,000 in the aggregate, shall be procured and awarded on the basis of quotations obtained from three qualified domestic contractors in response to a written invitation. The invitation shall include a detailed description of the works, including basic specifications, the required completion date, a basic form of agreement acceptable to the Bank, and relevant drawings, where applicable. The award shall be made to the contractor who offers the lowest price quotation for the required work, and who has the experience and resources to successfully complete the contract. Part D: Review by the Bank of Procurement Decisions 1. Procurement Planning Prior to the issuance of any invitations to prequalify for bidding or to bid for contracts, the proposed procurement plan for the Project shall be furnished to the Bank for its review and approval, in accordance with the provisions of paragraph 1 of Appendix Schedule 1 to the Guidelines. Procurement of all goods and works shall be undertaken in accordance with such procurement plan as shall have been approved by the Bank, and with the provisions of said paragraph 1. 2. Prior Review With respect to: (a) the first two contracts under Parts C.1 and C.2 hereofthis Agreement; and (b) each contract under Parts B and C.3 hereof, the procedures set forth in paragraphs 2 and 3 of Appendix 1 to the Guidelines shall apply.and

Notification and Advertising. The international community should be notified in a timely manner of the opportunity to bid. This will be done by advertising invitations to apply for inclusion in a bidder’s invitation list, to prequalify apply for prequalification, or to bid; such advertisements should be placed in at least one newspaper of general circulation in the Borrower’s country and, in addition, in at least one of the following forms: (i) a notice in the United Nations publication, Development Forum, Business Edition; or (ii) an advertisement in a newspaper, periodical or technical journal of wide international circulation; or (iii) a notice to local representatives of countries and territories referred to in the Guidelines, that are potential suppliers of the goods required." (b) The following is added at the end of paragraph 2.21 of the Guidelines: "As a further alternative, bidding documents may require the bidder to state the bid price in a single currency widely used in international trade and specified in the bidding documents." (c) Paragraphs 2.55 and 2.56 of the Guidelines are deleted. 2. Contracts for each contract the procurement of goods estimated to cost the equivalent of less than $10,000,000 equivalent or more 5,000,000 shall be advertised awarded: (a) by purchasers required to follow the Borrower’s public procurement procedures for the importation of goods, on the basis of such procedures, provided that such procedures shall have been found acceptable by the Association; and (b) by other purchasers, in accordance with the procedures applicable to large established commercial practice, provided that such contracts under paragraph 2.8 of the Guidelines. Part C: Other Procurement Procedures 1. International Shopping Office equipment, including telephone exchanges, copiers, fax machines, and microcomputers, estimated to cost more than $50,000, but $300,000 equivalent or less per contract, may shall be procured under contracts awarded on the basis of international shopping evaluation comparison of quotations obtained from suppliers from at least two countries, except that direct contracting procedures in accordance with acceptable to the provisions of paragraphs 3.5 and 3.6 of the Guidelines. 2. National Shopping Telephones, local area networks wiring, library supplies, and office supplies, estimated to cost $50,000 equivalent or less per contract and $900,000 equivalent or less in the aggregate (which aggregate shall not apply in the case of goods financed under Part E of the Project), Association may be procured used where considered appropriate under contracts awarded on the basis of national shopping procedures in accordance with the provisions of paragraphs paragraph 3.5 and 3.6 of the Guidelines. 3. Procurement Subject to the prior approval of Small Works Eligible works estimated not the Association, commonly traded commodities may be procured through organized international commodity markets or other channels of competitive procurement acceptable to exceed $75,000 equivalent per the Association, in accordance with procedures acceptable to the Association. 4. With respect to each contract referred to in paragraph 1 of this Schedule, the Borrower shall furnish to the Association, prior to the submission to the Association of the first application for withdrawal of funds from the Credit Account in respect of such contract, two conformed copies of such contract, together with the analysis of the respective bids and not to exceed $600,000 in the aggregaterecommendations for award, shall be procured and awarded on the basis of quotations obtained from three qualified domestic contractors in response to a written invitation. The invitation shall include a detailed description of the worksadvertising and tendering procedures followed and such other information as the Association shall reasonably request. Where payments under a contract are to be made out of the proceeds of the Special Account, including basic specifications, such copies together with the other information required completion date, a basic form of agreement acceptable to be furnished to the Bank, and relevant drawings, where applicable. The award shall be made Association pursuant to the contractor who offers the lowest price quotation for the required work, and who has the experience and resources to successfully complete the contract. Part D: Review by the Bank of Procurement Decisions 1. Procurement Planning Prior to the issuance of any invitations to prequalify for bidding or to bid for contracts, the proposed procurement plan for the Project this paragraph shall be furnished to the Bank for its review and approval, in accordance with Association as part of the provisions evidence required under paragraph 4 of paragraph 1 of Appendix 1 Schedule 4 to the Guidelines. Procurement of all goods and works shall be undertaken in accordance with such procurement plan as shall have been approved by the Bank, and with the provisions of said paragraph 1this Agreement. 25. Prior Review With respect to: (a) the first two contracts under Parts C.1 and C.2 hereof; and (b) to each contract under Parts B and C.3 hereof, the procedures set forth referred to in paragraphs 2 and 3 of Appendix 1 this Schedule, the Borrower shall furnish to the Guidelines Association, prior to the submission to the Association of the first application for withdrawal of funds from the Credit Account in respect thereof, such documentation and information as the Association may reasonably request to support withdrawal applications in respect of such contract. Where payments under a contract are to be made out of the proceeds of the Special Account, the documentation and the information to be furnished to the Association pursuant to the provisions of this paragraph shall applybe furnished to the Association as part of the evidence required under paragraph 4 of Schedule 4 to this Agreement. 6. The provisions of the preceding paragraph 5 of this Schedule shall not apply to contracts on account of which withdrawals from the Credit Account are to be made on the basis of statements of expenditure. 1. The Borrower has achieved the targets set forth in its income and expenditure estimates approved for Fiscal Year 1991-92 for increases in revenues and control of current expenditures, and has approved income and expenditure estimates for Fiscal Year 1992-93, including adoption of appropriate measures as may be necessary or required in order to meet the following targets in a manner satisfactory to the Association: (a) increase in revenues by at least 0.5 percent of GDP; (b) rate of growth of current expenditures not to exceed the rate of growth of nominal GDP; and (c) increase in the annual development program consistent with the above targets. 2. The Borrower has expanded the coverage of the value-added tax (VAT) to include at least natural gas and cigarettes. 3. The Borrower has initiated a study under terms of reference satisfactory to the Association to examine alternative taxation regimes for yarn and textiles. 4. The Borrower has: (a) satisfactorily implemented the plan of action for Fiscal Year 1991-92 dated February 6, 1992 for improving the administration of the VAT system; (b) completed a study on the administrative feasibility of expanding the VAT register to include, inter alia, commercial importers and exporters, and wholesalers serving manufacturers, and based on the results of such study has adopted a plan of action for Fiscal Year 1992-93, satisfactory to the Association, to expand the VAT register; and (c) adopted a plan of action including a timetable for implementation, satisfactory to the Association, for improving the administration of the VAT system for Fiscal Year 1992-93. 5. The Borrower has: (a) limited the exemption of small and cottage industries from the VAT to those industries with annual turnover less than the threshold for the turnover tax as such threshold may be established from time to time by the Borrower;

Notification and Advertising. The international community should be notified in a timely manner of the opportunity to bid. This will be done by advertising invitations to apply for inclusion in a bidder’s invitation list, to prequalify apply for prequalification, or to bid; such advertisements should be placed in at least one newspaper of general circulation in the Borrower’s country and, in addition, in at least one of the following forms: (i) a notice in the United Nations publication, Development Forum, Business Edition; or (ii) an advertisement in a newspaper, periodical or technical journal of wide international circulation; or (iii) a notice to local representatives of countries and territories referred to in the Guidelines, that are potential suppliers of the goods required." (b) The following is added at the end of paragraph 2.21 of the Guidelines: "As a further alternative, bidding documents may require the bidder to state the bid price in a single currency widely used in international trade and specified in the bidding documents." (c) Paragraphs 2.55 and 2.56 of the Guidelines are deleted. 2. Contracts for each contract goods estimated to cost the equivalent of less than $10,000,000 equivalent or more 250,000 each shall be advertised awarded through limited international bidding procedures on the basis of evaluation and comparison of bids invited from a list of at least three qualified suppliers eligible under the Guidelines and in accordance with the procedures applicable to large contracts under paragraph 2.8 set forth in Sections I and II of the GuidelinesGuidelines (excluding paragraphs 2.8, 2.9, 2.55 and 2.56 therefor). 3. Part C: Other Procurement Procedures 1. International Shopping Office equipment, including telephone exchanges, copiers, fax machines, and microcomputers, estimated Goods to cost more than $50,000, but $300,000 equivalent or less per contract, may be procured under contracts awarded estimated to cost the equivalent of less than $50,000 (but not exceeding an aggregate amount of $1,000,000) may be purchased directly from suppliers eligible under the Guidelines, when a demonstrated urgency so requires. 4. Goods which are proprietary items may be purchased directly from suppliers eligible under the Guidelines. 5. With respect to each contract referred to in paragraph 1 of this Schedule, the Borrower shall furnish to the Association, prior to the submission to the Association of the first application for withdrawal of funds from the Credit Account in respect of such contract, two conformed copies of such contract, together with the analysis of the respective bids and recommendations for award, a description of the advertising and tendering procedures followed and such other information as the Association shall reasonably request. 6. With respect to each contract referred to in paragraphs 2, 3 and 4 of this Schedule, the Borrower shall furnish to the Association, prior to the submission to the Association of the first application for withdrawal of funds from the Credit Account in respect thereof, such documentation and information as the Association may reasonably request to support withdrawal applications in respect of such contract. 7. Notwithstanding the provisions of paragraphs 5 and 6 of this Schedule, where payments under a contract are to be made out of the proceeds of the Special Account, the copies of such contract or the documentation and the information to be furnished to the Association pursuant to the provisions of paragraph 5 or paragraph 6 of this Schedule, as the case may be, shall be furnished to the Association as part of the evidence required under para- graph 4 of Schedule 4 to this Agreement. 8. The provisions of the preceding paragraphs 5, 6 and 7 shall not apply to contracts on account of which the Association has authorized withdrawals from the Credit Account on the basis of international shopping procedures statements of expenditure. Actions Referred to in Paragraph 3 (b) of Schedule 1 to this Agreement 1. The Borrower shall have achieved progress in the following are as: (a) the implementation of its exchange rate reform; (b) the implementation of its action plan to reduce the size of the civil service; (c) the settlement of debt owed by the public sector enterprises to BNSTP and the Borrower; and (d) the implementation of a gradual increase of the price of rice, beans, milk, sugar, wheat flour and cooking oil; 2. The Borrower shall have approved: (a) a fiscal program and credit targets, including a public investment program, for 1988; (b) an action plan to restructure, privatize and close public sector enterprises; (c) an action plan for setting up a new tariff structure for fuels, electricity and water in order to achieve full cost recovery; (d) an action plan to restructure ECOMEX accounts in order to settle past debt; and (e) an action plan for the reform of the cocoa export tax system. 1. For the purposes of this Schedule: (a) the term "eligible expenditures" means expenditures in respect of the reasonable cost of goods required during the execution of the Program and to be financed out of the proceeds of the Credit in accordance with the provisions of paragraphs 3.5 and 3.6 of the Guidelines. 2. National Shopping Telephones, local area networks wiring, library supplies, and office supplies, estimated to cost $50,000 equivalent or less per contract and $900,000 equivalent or less in the aggregate (which aggregate shall not apply in the case of goods financed under Part E of the Project), may be procured under contracts awarded on the basis of national shopping procedures in accordance with the provisions of paragraphs 3.5 and 3.6 of the Guidelines. 3. Procurement of Small Works Eligible works estimated not to exceed $75,000 equivalent per contract, and not to exceed $600,000 in the aggregate, shall be procured and awarded on the basis of quotations obtained from three qualified domestic contractors in response to a written invitation. The invitation shall include a detailed description of the works, including basic specifications, the required completion date, a basic form of agreement acceptable to the Bank, and relevant drawings, where applicable. The award shall be made to the contractor who offers the lowest price quotation for the required work, and who has the experience and resources to successfully complete the contract. Part D: Review by the Bank of Procurement Decisions 1. Procurement Planning Prior to the issuance of any invitations to prequalify for bidding or to bid for contracts, the proposed procurement plan for the Project shall be furnished to the Bank for its review and approval, in accordance with the provisions of paragraph 1 of Appendix Schedule 1 to the Guidelines. Procurement of all goods and works shall be undertaken in accordance with such procurement plan as shall have been approved by the Bank, and with the provisions of said paragraph 1. 2. Prior Review With respect to: (a) the first two contracts under Parts C.1 and C.2 hereofthis Agreement; and (b) each contract under Parts B and C.3 hereof, the procedures set forth in paragraphs 2 and 3 of Appendix 1 to the Guidelines shall apply.and

Notification and Advertising. The international community should be notified in a timely manner of the opportunity to bid. This will be done by advertising invitations to apply for inclusion in a bidder’s invitation list, to apply for prequalification, or to bid; such advertisements should be placed in at least one newspaper of general circulation in the Borrower’s country and, in addition, in at least one of the following forms: (i) a notice in the United Nations publication, Development Forum, Business Edition; or (ii) an advertisement in a newspaper, periodical or technical journal of wide international circula- tion; or (iii) a notice to local representatives of countries and territories referred to in the Guidelines, that are potential suppliers of the goods re- quired." (b) The following is added at the end of paragraph 2.21 of the Guidelines: "As a further alternative, bidding documents may require the bidder to state the bid price in a single currency widely used in international trade and specified in the bidding documents." (c) Paragraphs 2.55 and 2.56 of the Guidelines are deleted. (d) For fixed-price contracts, the invitation to prequalify or bid referred to in paragraph 2.13 of the Guidelines shall provide that, when contract award is delayed beyond the original bid validity period, the successful bidder’s bid price will be increased for each contract week of delay by two predisclosed correction factors acceptable to the Bank, one to be applied to all foreign currency components and the other to the local currency component of the bid price. Such an increase shall not be taken into account in the bid evaluation. (e) In the procurement of goods in accordance with this paragraph 1, the Borrower shall use the relevant standard bidding documents issued by the Bank, with such modifications thereto as the Bank shall have agreed to be necessary for the purposes of the Project. Where no relevant standard bidding documents have been issued by the Bank, the Borrower shall use bidding documents based on other internationally recognized standard forms agreed with the Bank. 2. Contracts for the procurement of goods estimated to cost $10,000,000 the equivalent or more shall be advertised in accordance with the procedures applicable to large contracts under paragraph 2.8 of the Guidelines. Part C: Other Procurement Procedures 1. International Shopping Office equipment, including telephone exchanges, copiers, fax machines, and microcomputers, estimated to cost more less than $50,000, but $300,000 equivalent or less per contract, 2,000,000 each may be procured under contracts awarded awarded: (a) by public entities, on the basis of international shopping procedures evaluation and comparison of price quotations obtained from at least three suppliers from at least two different countries eligible under the Guidelines, in accordance with procedures acceptable to the provisions of paragraphs 3.5 and 3.6 of the Guidelines.Bank; and 2. National Shopping Telephones(b) by private entities, local area networks wiring, library supplies, and office supplies, estimated to cost $50,000 equivalent or less per contract and $900,000 equivalent or less in the aggregate (which aggregate shall not apply in the case of goods financed under Part E of the Project), may be procured under contracts awarded on the basis of national shopping procedures in accordance with established commercial practices acceptable to the provisions of paragraphs 3.5 and 3.6 of the GuidelinesBank. 3. Procurement Subject to the prior approval of Small Works Eligible works estimated not to exceed $75,000 equivalent per contractthe Bank, and not to exceed $600,000 in the aggregate, shall commonly traded commodities may be procured and awarded on the basis through organized international commodity markets or other channels of quotations obtained from three qualified domestic contractors in response to a written invitation. The invitation shall include a detailed description of the works, including basic specifications, the required completion date, a basic form of agreement competitive procurement acceptable to the Bank, and relevant drawings, where applicable. The award shall be made in accordance with procedures acceptable to the contractor who offers Bank. 4. Goods of a proprietary nature or where the lowest price quotation need for compati- bility with existing items calls for standardization may be purchased from suppliers on the required workbasis of negotiated contracts pursuant to procedures acceptable to the Bank. 5. With respect to each contract referred to in paragraph 1 of this Schedule, and who has the experience and resources Borrower shall furnish to successfully complete the contract. Part D: Review by Bank, prior to the submission to the Bank of Procurement Decisions 1. Procurement Planning Prior to the issuance first application for withdrawal of any invitations to prequalify funds from the Loan Account in respect of such contract, two conformed copies of such contract, together with the analysis of the respective bids and recommendations for bidding or to bid for contractsaward, a description of the proposed procurement plan for the Project shall be furnished to advertising and tendering procedures followed and such other information as the Bank for its review and approval, in accordance with the provisions of paragraph 1 of Appendix 1 to the Guidelines. Procurement of all goods and works shall be undertaken in accordance with such procurement plan as shall have been approved by the Bank, and with the provisions of said paragraph 1reasonably request. 26. Prior Review With respect to: (a) the first two contracts under Parts C.1 and C.2 hereof; and (b) to each contract under Parts B and C.3 hereof, the procedures set forth referred to in paragraphs 2 and 3 of Appendix 1 this Schedule, the Borrower shall furnish to the Guidelines Bank, prior to the submission to the Bank of the first application for withdrawal of funds from the Loan Account in respect thereof, such documenta- tion and information as the Bank may reasonably request to support withdrawal applications in respect of such contract. 7. The provisions of the preceding paragraph 6 of this Schedule shall applynot apply to contracts on account of which withdrawals from the Loan Account are to be made on the basis of statements of expenditure.

Notification and Advertising. The international community should be notified in a timely manner of the opportunity to bid. This will be done by advertising invitations to apply for inclusion in a bidder’s invitation list, to prequalify apply for prequalification, or to bid; such advertisements should be placed in at least one newspaper of general circulation in the Borrower’s country and, in addition, in at least one of the following forms: (i) a notice in the United Nations publication, Development Forum, Business Edition; or (ii) an advertisement in a newspaper, periodical or technical journal of wide international circulation; or (iii) a notice to local representatives of countries and territories referred to in the Guidelines, that are potential suppliers of the goods required." (b) The following is added at the end of paragraph 2.21 of the Guidelines: "As a further alternative, bidding documents may require the bidder to state the bid price in a single currency widely used in international trade and specified in the bidding documents." (c) Paragraphs 2.55 and 2.56 of the Guidelines are deleted. 2. Contracts for each contract the procurement of goods estimated to cost the equivalent of less than $10,000,000 equivalent or more 2,000,000 shall be advertised awarded: (a) by purchasers required to follow the Borrower’s public procurement procedures for the importation of goods, on the basis of such procedures, provided that such procedures shall have been found acceptable by the Association; (b) by other purchasers, in accordance with established commercial practice, provided that, to the procedures applicable to large extent practicable, such contracts under paragraph 2.8 of the Guidelines. Part C: Other Procurement Procedures 1. International Shopping Office equipment, including telephone exchanges, copiers, fax machines, and microcomputers, estimated to cost more than $50,000, but $300,000 equivalent or less per contract, may shall be procured under contracts awarded on the basis of international shopping evaluation and comparison of quotations obtained from suppliers from at least two countries, except that direct contracting procedures acceptable to the Association may be used where considered appropriate under paragraph 3.5 of the Guidelines; and (c) by any purchasers, for the supply of commodities, on the basis of evaluation and comparison of quotations obtained from more than one supplier. 3. With respect to each contract referred to in paragraph 1 of this Schedule, the Borrower shall furnish to the Association, prior to the submission to the Association of the first applica- tion for withdrawal of funds from the Credit Account in respect of such contract, two conformed copies of such contract, together with the analysis of the respective bids and recommendations for award, a description of the advertising and tendering procedures followed and such other information as the Association shall rea- sonably request. 4. With respect to each contract referred to in paragraph 2 of this Schedule, the Borrower shall furnish to the Association, prior to the submission to the Association of the first applica- tion for withdrawal of funds from the Credit Account in respect thereof, such documentation and information as the Association may reasonably request to support withdrawal applications in respect of such contract. 5. Notwithstanding the provisions of paragraphs 3 and 4 of this Schedule, where payments under a contract are to be made out of the proceeds of the Special Account, the copies of such contract or the documentation and the information to be furnished to the Association pursuant to the provisions of paragraph 3 or paragraph 4 of this Schedule, as the case may be, shall be furnished to the Association as part of the evidence required under paragraph 4 of Schedule 4 to this Agreement. 6. The provision of the preceding paragraphs 3, 4 and 5 shall not apply to contracts on account of which the Association has authorized withdrawals from the Credit Account on the basis of statements of expenditure. Actions Referred to in Paragraph 4 (b) of Schedule 1 to this Agreement 1. The Borrower has reviewed, in consultation with BCEAO, the methods, procedures and, if warranted, an implementation timetable satisfactory to the Association for the replacement of bank-by-bank credit ceilings by market-oriented mechanisms. 2. The performance of the revised system of crop credit financing and of prior authorizations for borrowings has been reviewed in consultation with the BCEAO and APB. Measures, satisfactory to the Association, have been proposed to correct any deficiency or difficulty revealed by such review. 3. The financial restructuring of BSK, MASSRAF and BIAOS has been completed. 4. A program of actions to facilitate the establishment of a network of grass-roots banks has been prepared and is satisfactory to the Association. 5. The level of bad debt recovery set forth in the Program has been reached. 6. The Borrower is current in the payment of all its liabilities incurred in the financial sector restructuring. 7. The Borrower has taken all necessary measures satisfactory to the Association to bring the total of its direct and indirect ownership to not more than 25% in each bank and financial institution. 8. The macro-economic policy framework of the Borrower is con- sistent with the objectives of the Program. Special Account 1. For the purposes of this Schedule: (a) the term "eligible expenditures" means expenditures in respect of the reasonable cost of goods required for the Project and to be financed out of the proceeds of the Credit in accordance with the provisions of paragraphs 3.5 and 3.6 of the Guidelines. 2. National Shopping Telephones, local area networks wiring, library supplies, and office supplies, estimated to cost $50,000 equivalent or less per contract and $900,000 equivalent or less in the aggregate (which aggregate shall not apply in the case of goods financed under Part E of the Project), may be procured under contracts awarded on the basis of national shopping procedures in accordance with the provisions of paragraphs 3.5 and 3.6 of the Guidelines. 3. Procurement of Small Works Eligible works estimated not to exceed $75,000 equivalent per contract, and not to exceed $600,000 in the aggregate, shall be procured and awarded on the basis of quotations obtained from three qualified domestic contractors in response to a written invitation. The invitation shall include a detailed description of the works, including basic specifications, the required completion date, a basic form of agreement acceptable to the Bank, and relevant drawings, where applicable. The award shall be made to the contractor who offers the lowest price quotation for the required work, and who has the experience and resources to successfully complete the contract. Part D: Review by the Bank of Procurement Decisions 1. Procurement Planning Prior to the issuance of any invitations to prequalify for bidding or to bid for contracts, the proposed procurement plan for the Project shall be furnished to the Bank for its review and approval, in accordance with the provisions of paragraph 1 of Appendix Schedule 1 to the Guidelines. Procurement of all goods and works shall be undertaken in accordance with such procurement plan as shall have been approved by the Bank, and with the provisions of said paragraph 1. 2. Prior Review With respect to: (a) the first two contracts under Parts C.1 and C.2 hereofthis Agreement; and (b) each contract under Parts B and C.3 hereof, the procedures set forth in paragraphs 2 and 3 of Appendix 1 to the Guidelines shall apply.and

Notification and Advertising. The international community should be notified in a timely manner of the opportunity to bid. This will be done by advertising invitations to apply for inclusion in a bidder’s invitation list, to prequalify apply for prequalification or to bid; such advertisements should be placed in at least one newspaper of general circulation in the Borrower’s country and, in addition, in at least one of the following forms: (i) a notice in the United Nations publication, Development Forum, Business Edition; or (ii) an advertisement in a newspaper, periodical or technical journal of wide international circulation; or (iii) a notice to local representatives of countries and territories, referred to in the Guidelines, that are potential suppliers of the goods required." (b) The following is added at the end of paragraph 2.21 of the Guidelines: "As a further alternative, bidding documents may require the bidder to state the bid price in a single currency widely used in international trade and specified in the bidding documents." (c) Paragraphs 2.55 and 2.56 of the Guidelines are deleted. 2. Contracts for each contract goods estimated to cost the equivalent of less than $10,000,000 equivalent or more 2,000,000 each shall be advertised in accordance with the procedures applicable to large contracts under paragraph 2.8 of the Guidelines. Part C: Other Procurement Procedures 1. International Shopping Office equipment, including telephone exchanges, copiers, fax machines, and microcomputers, estimated to cost more than $50,000, but $300,000 equivalent or less per contract, may be procured under contracts awarded on the basis of international shopping the normal procurement procedures of the purchaser of such goods. 3. With respect to each contract referred to in accordance paragraph 1 of this Schedule, the Borrower shall furnish to the Association, prior to the submission to the Association of the first applica- tion for withdrawal of funds from the Credit Account and the Swiss Contribution Account in respect of such contract, two conformed copies of such contract, together with the analysis of the respective bids and recommendations for award, a description of the advertising and tendering procedures followed and such other information as the Association shall reasonably request. 4. With respect to each contract referred to in paragraph 2 of this Schedule, the Borrower shall furnish to the Association, prior to the submission to the Association of the first applica- tion for withdrawal of funds from the Credit Account and the Swiss Contribution Account in respect thereof, such documentation and information as the Association may reasonably request to support withdrawal applications in respect of such contract. 5. Notwithstanding the provisions of paragraphs 3.5 3 and 3.6 4 of this Schedule, where payments under a contract are to be made out of the Guidelines. 2. National Shopping Telephones, local area networks wiring, library supplies, and office supplies, estimated to cost $50,000 equivalent or less per contract and $900,000 equivalent or less in the aggregate (which aggregate shall not apply in the case of goods financed under Part E proceeds of the Project)Special Accounts, may the copies of such contract or documentation and information to be procured under contracts awarded on furnished to the basis of national shopping procedures in accordance with Association pursuant to the provisions of paragraphs 3.5 and 3.6 paragraph 3 or paragraph 4 of this Schedule, as the Guidelines. 3. Procurement of Small Works Eligible works estimated not to exceed $75,000 equivalent per contractcase may be, and not to exceed $600,000 in the aggregate, shall be procured and awarded on the basis of quotations obtained from three qualified domestic contractors in response to a written invitation. The invitation shall include a detailed description of the works, including basic specifications, the required completion date, a basic form of agreement acceptable to the Bank, and relevant drawings, where applicable. The award shall be made to the contractor who offers the lowest price quotation for the required work, and who has the experience and resources to successfully complete the contract. Part D: Review by the Bank of Procurement Decisions 1. Procurement Planning Prior to the issuance of any invitations to prequalify for bidding or to bid for contracts, the proposed procurement plan for the Project shall be furnished to the Bank for its review and approval, in accordance with Association as part of the evidence required under paragraph 4 of Schedule 4 to this Agreement. 6. The provisions of paragraph 1 the preceding paragraphs 3, 4 and 5 shall not apply to contracts on account of Appendix which the Association has authorized withdrawals from the Credit Account and the Swiss Contribution Account on the basis of statements of expenditure. Actions Referred to in Paragraph 3 (b) of Schedule 1 to this Agreement 1. The Borrower shall: (i) reduce the Guidelines. Procurement number of all goods product groups on its fixed price list from 46 to 37; and works shall be undertaken in accordance with such procurement (ii) furnish to the Association a plan as shall have been approved by of action, satisfactory to the BankAssociation, and with the provisions of said paragraph 1for further reductions from 37 to 32. 2. Prior Review With respect toThe Borrower shall establish an improved foreign exchange allocation system, that will, inter alia, incorporate quarterly assessments of foreign exchange availability and demand, and take into account the overall economic efficiency of operations of proposed users according to criteria agreed between the Borrower and the Association. 3. The Borrower shall: (ai) complete the first two contracts under Parts C.1 and C.2 hereofstudy of the interim trading measures; and (bii) each contract under Parts B and C.3 hereof, the procedures set forth in paragraphs 2 and 3 of Appendix 1 furnish to the Guidelines Association a plan of action satisfactory to the Association, to implement the results of such study. 4. The Borrower shall applyreduce the number of products which must be imported through only one trading corporation from eleven to five and the number of export commodities from three to one. 5. The Borrower shall: (i) complete the study of the 25 industrial and 15 agricultural enterprises; and (ii) furnish to the Association a plan of action, satisfactory to the Association, to implement the recommendations for restructuring (rehabili- tation, divestiture or closure) of these enterprises. 6. The Borrower shall complete the study of the fruit and vegetable marketing system. 7. The Borrower shall make progress, satisfactory to the Association, in the carrying out of the study of the system by which goods are allocated domestically. 1. For the purposes of this Schedule:

Notification and Advertising. The invitation to prequalify or bid for each contract estimated to cost $10,000,000 equivalent or more shall be advertised in accordance with the procedures applicable to large contracts under paragraph 2.8 of the Guidelines. Part C: Other Procurement Procedures 1. International Shopping Office equipment, including telephone exchanges, copiers, fax machines, and microcomputers, estimated to cost more than $50,000, but $300,000 equivalent or less per contract, National Competitive Bidding The following may be procured under contracts awarded on the basis of international shopping procedures in accordance with the provisions of paragraphs 3.5 3.3 and 3.6 3.4 of the Guidelines: (a) works up to $10,000,000 equivalent per contract, up to an aggregate amount not to exceed $100,000,000 equivalent; and (b) goods estimated to cost less than $200,000 equivalent per contract, up to an aggregate amount not to exceed $2,000,000 equivalent. 2. National Shopping Telephones, local area networks wiring, library supplies, and office supplies, Goods estimated to cost less than $50,000 equivalent or less per contract and contract, up to an aggregate amount not to exceed $900,000 equivalent or less in the aggregate (which aggregate shall not apply in the case of goods financed under Part E of the Project)2,000,000 equivalent, may be procured under contracts awarded on the basis of national shopping procedures in accordance with the provisions of paragraphs 3.5 and 3.6 of the Guidelines. 3. Procurement of Small Works Eligible works Works estimated to cost less than $200,000 equivalent per contract, up to an aggregate amount not to exceed $75,000 equivalent per contract3,600,000 equivalent, and not to exceed $600,000 in the aggregate, shall may be procured and under lump-sum, fixed-price contracts awarded on the basis of quotations obtained from three (3) qualified domestic contractors in response to a written invitation. The invitation shall include a detailed description of the works, including basic specifications, the required completion date, a basic form of agreement acceptable to the Bank, and relevant drawings, where applicable. The award shall be made to the contractor who offers the lowest price quotation for the required work, and who has the experience and resources to successfully complete the contractcontract successfully. Part D: Review by the Bank of Procurement Decisions 1. Procurement Planning Prior to the issuance of any invitations to prequalify for bidding or to bid for contracts, the proposed procurement plan for the Project shall be furnished to the Bank for its review and approval, in accordance with the provisions of paragraph 1 of Appendix 1 to the Guidelines. Procurement of all goods and works shall be undertaken in accordance with such procurement plan as shall have been approved by the Bank, and with the provisions of said paragraph 1. 2. Prior Review With respect to: (a) the first two contracts under Parts C.1 and C.2 hereof; and (b) each contract under Parts B and C.3 hereof, the The procedures set forth in paragraphs 2 and 3 of Appendix 1 to the Guidelines shall apply to: (a) each contract for civil works estimated to cost equal to or more than the equivalent of $5,000,000; (b) the first three contracts for civil works that cost less than the equivalent of $5,000,000; and (c) each contract for goods estimated to cost more than the equivalent of $100,000. 3. Post Review With respect to each contract not governed by paragraph 2 of this Part, the procedure set forth in paragraph 4 to Appendix 1 to the Guidelines shall apply.