EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT
Office of the General Counsel
Mr V.G. PANSKOV
Minister of Finance
Ministry of Finance of the
Russian Federation
10 30 97 Moscow
ul. Ilyinka 9
Russian Federation
c.c. Mr Y.K. SHAFRANIK
Minister of Fuel and Energy
Ministry of Fuel and Energy of the
Russian Federation
Moscow
7, Kitaiskiy proezd
Russian Federation
20 September 1995
Dear Minister,
Re: Komi Emergency Oil Spill Recovery Project
Operation No. 312
Amendment to the Loan Agreement
Please refer to the Loan Agreement (the "Loan Agreement") dated
5 May 1995 between yourself (the "Borrower") and the European Bank
for Reconstruction and Development (the "Bank"). Expression
defined in the Loan Agreement bear the same meanings herein.
Pursuant to Section 10.03 of the Standard Terms and Conditions,
we hereby agree to amend the Loan Agreement as follows:
1. Schedule 2 - Categories and Drawdowns of the Loan Agreement
is hereby amended by inserting after paragraph "5" a new paragraph
"6" to read as follows:
"6. Notwithstanding the provisions of paragraph 2 above, no
drawdown shall be made in respect of payments made for
expenditures prior to the date of the Loan Agreement, except that
drawdowns in an aggregate amount not exceeding two and half
million dollars (USD 2,500,000) may be made in respect of category
A.1 and B.1 and C.4 of Schedule 1 on account of payments made for
expenditures before the date of the Loan Agreement but after 1
March 1995."
2. Section 2.03 of the Loan Agreement is hereby amended by
inserting a new subparagraph "(c)" to read as follows:
"(c) The Borrower authorises the Bank to drawdown, from time to
time, such amounts as are necessary to pay for the consultants
retained by the Bank and referred to in Section 2.07 of the
Project Agreement and the Bank may pay to itself such amounts."
3. The attachment to Schedule 2 to the Loan Agreement is hereby
amended in its entirety and the schedule attached hereto as Annex
A is inserted in lieu thereof.
Please note that we have changed the amount in "Social
Expenditures Category under Part A.5 of the Project" from USD 0.4
million to USD 0.8 million and we have added a new Part A.1
through A.3, B.1 and A.5 of the Project in the "Consultants
Services under Part C.1 of the Project" and we have decreased the
amount of the Loan allocated to "Consultants' Services under Part
C.1 of the Project" from USD 5.0 million to USD 4.0 million.
Furthermore, we have inserted a new category "Consultancy Fees
referred to in Section 2.07 of the Project Agreement", and
allocated USD 1.0 million thereto.
With these amendments the terms of the Loan Agreement are
hereby confirmed in its entirety.
Please confirm the binding agreement of the Borrower to the
above amendments by signing the three copies of this letter in the
space below and returning all three copies to the Bank, for the
attention of Tim Bezencon, Operation Administration Unit,
whereupon the Bank will sign the three copies and return on fully
signed copy to you.
These amendments will become effective as of the date indicated
on this letter upon the signature by both the Borrower and the
Bank.
Yours sincerely,
European bank for
reconstruction and development
Deputy Vice President
Accepted and agreed:
Ministry of finance
Deputy minister of finance
of the Russian Federation
Alexander SAMUSEV
Annex A
ATTACHMENT TO SCHEDULE 2
-------------------------T---------------------T-----------------¬
¦ Category ¦ Amount ¦% of Expenditures¦
¦ ¦of the Loan Allocated¦ to be Financed ¦
¦ ¦in the Loan Currency ¦ ¦
¦ ¦ USD millions ¦ ¦
+------------------------+---------------------+-----------------+
¦(1) Management of ¦ USD 9.0 ¦20% of foreign ¦
¦containment and clean up¦ ¦expenditures ¦
¦activities under ¦ ¦ ¦
¦Parts A.1 through A.3 of¦ ¦ ¦
¦the Project ¦ ¦ ¦
+------------------------+---------------------+-----------------+
¦(2) Emergency pipeline ¦ USD 2.9 ¦20% of foreign ¦
¦replacement works ¦ ¦expenditures and ¦
¦Part B.1 of the Project ¦ ¦16.46% of local ¦
¦ ¦ ¦expenditures ¦
+------------------------+---------------------+-----------------+
¦(3) Social Expenditures¦ USD 0.8 ¦20% of foreign ¦
¦under Part A.5 of the ¦ ¦expenditures, ¦
¦Project ¦ ¦16.46% of local ¦
¦ ¦ ¦expenditures ¦
+------------------------+---------------------+-----------------+
¦(4) Consultants' service¦ USD 4.0 ¦100% foreign ¦
¦under Parts A.1 through ¦ ¦expenditures ¦
¦A.3, B.1, A.5 and C.l of¦ ¦ ¦
¦the Project ¦ ¦ ¦
+------------------------+---------------------+-----------------+
¦(5) Interest accrued ¦ USD 0.06567367 ¦20% of foreign ¦
¦under the loan agreement¦ ¦expenditures ¦
¦between Komineft and ¦ ¦ ¦
¦Imperial Bank ¦ ¦ ¦
¦number 5-074-021 of ¦ ¦ ¦
¦17 March 1995 and under ¦ ¦ ¦
¦the loan agreement ¦ ¦ ¦
¦between Komineft and ¦ ¦ ¦
¦International Moscow ¦ ¦ ¦
¦Bank of 5 May 1995, to ¦ ¦ ¦
¦the extent these loans ¦ ¦ ¦
¦had been utilized by ¦ ¦ ¦
¦Komineft to fund the ¦ ¦ ¦
¦expenditures under ¦ ¦ ¦
¦Parts A.1 through A.3 ¦ ¦ ¦
¦and B.1 of the Project. ¦ ¦ ¦
+------------------------+---------------------+-----------------+
¦(6) Consultancy fees ¦ USD 1.0 ¦100% foreign ¦
¦referred to in ¦ ¦expenditures ¦
¦Section 2.07 of the ¦ ¦ ¦
¦Project Agreement ¦ ¦ ¦
+------------------------+---------------------+-----------------+
¦(7) Unallocated ¦ USD 6.98432633 ¦ ¦
¦(Contingency) ¦ ¦ ¦
+------------------------+---------------------+-----------------+
¦(8) Front-End Commission¦ USD 0.25 ¦ ¦
+------------------------+---------------------+-----------------+
¦TOTAL ¦ USD 25.0 ¦ ¦
L------------------------+---------------------+------------------
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