Common use of Execution of the Project Clause in Contracts

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

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

Execution of the Project. (a) Section 3.01. The Borrower declares its commitment to the objectives objective of the Project, and, to this end, shall: (a) carry out Part D.2 of the Project, through the UEC, with due diligence and efficiency and in conformity with appropriate administrative, financial, technical, social, engineering and environmental practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for said Part of the Project; (i) cause each Participating Province I through the corresponding SUEP (pursuant to the terms of the corresponding Subsidiary Loan Agreement I, as said term is defined in Section 1.02 (t) of this Agreement) to carry out the pertinent Subproject (as said term is defined in Section 1.02 (o) of this Agreement) and Project activities under Parts A, B and D.1 of the Project as set forth in Schedule 2 to this Agreement(all under the territorial jurisdiction of each Participating Province I), and to this end shall cause: (i) SDR to coordinate (at with the federal level) and issue guidelines related to the carrying out assistance of the Programpertinent Provincial Public Institutions and municipalities (as the case may be), to propose annual budgets for such Program with due diligence and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program efficiency and in a timely mannerconformity with appropriate administrative, financial, technical, social, engineering and environmental practices; (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, to carry out the credit program included in Parts D and I of the Project; and (iv) EMBRAPA to carry out Part H of the Project, all with due diligence and efficiency, in accordance with appropriate administrative, financial and agricultural practices. (b) Without any limitation or restriction upon any of its other obligations under the Loan Agreement, the Borrower shall cause the State, under contractual arrangements satisfactory to the Bank, to perform in accordance with the provisions of the Project Agreement, all the respective obligations of the State therein set forth, shall take or and/or cause to be taken (as the case may be) all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable each Participating Province I to carry out the State to perform its obligations, corresponding Subproject and shall Project activities under said Parts of the Project; and (iii) not take or permit to be taken any action which would prevent or interfere with such performance. (c) Without limitation to its obligations under paragraph (a) above, the Borrower shall: (i) take all action as shall be required to regulate, in a manner satisfactory to the Bank, the funding procedures which will ensure that the Executing Entities shall have the funds required for carrying out the Project available to them in a timely manner; and (ii) provide or cause SUDENE to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h) of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H of the Project and under the State Project, respectively, as provided in each POA. (d) The Borrower shall make the proceeds of the Loan allocated respectively: (i) for purposes of the State Project available to the State; and (ii) for Part H of the Project available to EMBRAPA; under arrangements satisfactory to the Bank. (e) The Borrower, through DTN, shall enter into agreements, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions of Schedule 5 to this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program; (B) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiariessame; and (F) exercise its rights in relation to each Subproject in such manner as to: (i) protect cause each Participating Province II (pursuant to the interest terms of the Bank corresponding Subsidiary Loan Agreement II, as said term is defined in Section 1.02 (u) of this Agreement) to carry out the pertinent Project activity under Part A.2 of the Project under the territorial jurisdiction of each Participating Province II), with due diligence and the Borrowerefficiency and in conformity with appropriate administrative, financial, technical, social, engineering and environmental practices; (ii) take and/or cause to be taken (as the case may be) all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable each Participating Province II to carry out the Borrower to comply with its obligations corresponding Project activity under this Agreementsaid Part of the Project; and (iii) achieve not take or permit to be taken any action which would prevent or interfere with the purposes carrying out of the Projectsame. (fa) Unless the Bank shall otherwise agree, the Borrower shall not amend, abrogate or waive the provisions of the MCR applicable to the Program. (g) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms and conditions satisfactory to the Bank, not later than six months after the date of the Amending Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive or fail to enforce any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendations. Section 3.02. Except as the Bank shall otherwise agree, procurement of the goods, works and services required for the carrying out of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan shall be made in accordance with governed by the provisions of Schedule 2 4 to this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Borrower shall update the Procurement Plan in accordance with guidelines acceptable to the Project AgreementBank, and furnish such update to the Bank not later than 12 months after the date of the preceding Procurement Plan, for the Bank’s approval. Section 3.03. For the purposes of Section 9.07 of the General Conditions and without limitation thereto, the Borrower shall: (a) The Borrower shall: (i) prepare, on the basis of guidelines acceptable to the Bank, and furnish to the Bank by October 31 in each yearnot later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Bank, for its review and comment, the proposed POA and budget a plan for the Project and for future operation of the Northeast Rural Development Program for the following fiscal yearProject; and (iib) afford the Bank a reasonable opportunity to comment on any modifications exchange views with the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budgetsaid plan. (b) In order to assist the EMBRAPA in carrying out Part H of the Project, the Borrower shall cause EMBRAPA, under contractual arrangements satisfactory to the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the bank in August 1981. Section 3.04. The Bank and the Borrower hereby agree that the obligations set forth in Sections 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out, or caused to be carried out, by (i) the State in respect of the State Project, and by

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

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

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

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

Execution of the Project. (a) The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and and, to this end end, shall cause: (i) SDR to coordinate (at the federal level) carry out Parts A and issue guidelines related to the carrying out B of the Program, to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely manner; (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, to carry out the credit program included in Parts D and I of the Project; and (iv) EMBRAPA to carry out Part H of the Project, all Project with due diligence and efficiency, efficiency and in accordance conformity with appropriate administrative, financial financial, engineering, social and agricultural environmental practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for Parts A and B of the Project. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Borrower and the Association shall otherwise agree, the Borrower shall carry out Parts A and B of the Project in accordance with the Implementation Program set forth in Schedule 4 to this Agreement. (c) Without any limitation or restriction upon any of its other obligations under the Loan this Agreement, the Borrower shall cause the State, under contractual arrangements satisfactory to the Bank, NEA to perform in accordance with the provisions of the Project Agreement, Agreement all the respective obligations of the State NEA therein set forth, shall take or and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable the State NEA to perform its such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (c) Without limitation to its obligations under paragraph (a) above, the Borrower shall: (i) take all action as shall be required to regulate, in a manner satisfactory to the Bank, the funding procedures which will ensure that the Executing Entities shall have the funds required for carrying out the Project available to them in a timely manner; and (ii) provide or cause SUDENE to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h) of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H of the Project and under the State Project, respectively, as provided in each POA. (d) The Borrower shall make the proceeds of the Loan Financing allocated respectively: from time to time to Category 3 of the table in paragraph 1 of Schedule 1 to this Agreement available to NEA under a Subsidiary Financing Agreement to be entered into between the Borrower and NEA under terms and conditions satisfactory to the Association, and which shall include: (i) for purposes repayment of principal in twenty-five years with a grace period of five years; (ii) interest at a rate of 10.25% per annum, or such other rate as may be agreed by the State Project available Borrower and NEA, acceptable to the StateAssociation; and (iiiii) for Part H the bearing by the Borrower of the Project available to EMBRAPA; under arrangements satisfactory to the Bankany foreign exchange risks. (e) The Borrower, through DTN, Borrower shall enter into agreements, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions of Schedule 5 to this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program; (B) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject under the Subsidiary Financing Agreement in such manner as to: (i) to protect the interest interests of the Bank Borrower and the Borrower; (ii) enable the Borrower Association and to comply with its obligations under this Agreement; and (iii) achieve accomplish the purposes of the Project. (f) Unless Credit and the Bank Grant, and, except as the Association shall otherwise agree, the Borrower shall not assign, amend, abrogate or waive the provisions of the MCR applicable to the Program. (g) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms and conditions satisfactory to the Bank, not later than six months after the date of the Amending Subsidiary Financing Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive or fail to enforce any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendationsthereof. Section 3.02. Except as the Bank Association shall otherwise agree, procurement of the goods, works works, and consultants’ services required for the carrying out Parts A and B of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan Financing shall be made in accordance with governed by the provisions of Schedule 2 3 to the Project this Agreement. (a) Section 3.03. The Borrower shall: (i) furnish to the Bank by October 31 in each year, for its review and comment, the proposed POA and budget for the Project and for the Northeast Rural Development Program for the following fiscal year; (ii) afford the Bank a reasonable opportunity to comment on any modifications the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budget. (b) In order to assist the EMBRAPA in carrying out Part H of the Project, the Borrower shall cause EMBRAPA, under contractual arrangements satisfactory to the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the bank in August 1981. Section 3.04. The Bank and the Borrower Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07, 9.07 and 9.08 and 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of Part C of the Project, shall be carried out, or caused out by NEA pursuant to be carried out, by (i) the State in respect Section 2.04 of the State Project Agreement. Section 3.04. For the purposes of Section 9.07 of the General Conditions and without limitation thereto, the Borrower shall: (a) prepare, on the basis of guidelines acceptable to the Association and furnish to Association not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Association, a plan designed to ensure the continued achievement of the objectives of Parts A and B of the Project; and (b) afford the Association a reasonable opportunity to exchange views with the Borrower on said plan. Section 3.05. The Borrower shall, no later than December 31, 2003, prepare and furnish to the Association, a Vulnerable Communities Development Plan (VCDP), satisfactory to the Association, for the purpose of the carrying out of Community Subgrants under Part B of the Project, including, inter alia, guidelines and byprocedures for the informed participation of ethnic and indigenous people, as defined by the laws of the Borrower, and for the preparation, adoption and implementation of culturally appropriate plans to mitigate or offset adverse impact of the Project upon them.

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

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

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

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

Execution of the Project. (a) The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and and, to this end shall cause: (i) SDR to coordinate (at the federal level) and issue guidelines related to the carrying out of the Programend, to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely manner; (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, to carry out the credit program included in Parts D and I of the Project; and (iv) EMBRAPA to carry out Part H of the Project, all with due diligence and efficiency, in accordance with appropriate administrative, financial and agricultural practices. (b) Without without any limitation or restriction upon any of its other obligations under the Loan Development Credit Agreement, the Borrower shall cause the State, under contractual arrangements satisfactory to the Bank, North-East Provincial Council to perform in accordance with the provisions of the Project Agreement, Agreement all the respective obligations of the State North-East Provincial Council therein set forth, shall take or and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable the State North-East Provincial Council to perform its such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (cb) Without limitation to its obligations under upon the provisions of paragraph (a) aboveof this Section and except as the Borrower and the Association shall otherwise agree, the Borrower shall: shall cause the North-East Provincial Council to: (i) take all action as shall be required to regulate, carry out its obligations in a manner satisfactory to accordance with the Bank, the funding procedures which will ensure that the Executing Entities shall have the funds required for carrying out the Project available to them in a timely manner; provisions of this Agreement and (ii) provide or cause SUDENE to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h) of the Project Agreement; all and (ii) implement the Project in a timely manner accordance with the Operational Manual, the Financial Manual, the Environmental Management Framework, and the Social Safeguards Framework, and except as the Association shall otherwise agree, the Borrower shall not amend or waive any provision thereof if, in sufficient amounts for the purpose of financing the activities under Part H opinion of the Project Association, such amendment or waiver may materially and under adversely affect the State implementation of the Project, respectively, as provided in each POA. (da) The Borrower shall make the proceeds of the Loan allocated respectively: (i) for purposes of the State Project Credit available to the State; North-East Provincial Council in accordance with terms and (ii) for Part H of the Project available to EMBRAPA; under arrangements satisfactory conditions acceptable to the BankAssociation. (eb) The Borrower, through DTN, Borrower shall enter into agreements, satisfactory take adequate and timely measures to ensure that sufficient funds from its own resources are made available to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) onNorth-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 East Provincial Council to this 2. to the extent that they are compatible with the provisions of Schedule 5 to this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program; (B) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying carry out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject in such manner as to: (i) protect the interest of the Bank and the Borrower; (ii) enable the Borrower to comply with its obligations under this Agreement; and (iii) achieve the purposes of the Project. (fa) Unless the Bank shall otherwise agree, the Borrower shall not amend, abrogate or waive the provisions of the MCR applicable to the Program. (g) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms and conditions satisfactory to the Bank, not later than six months after the date of the Amending Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive or fail to enforce any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendations. Section 3.02. Except as the Bank Association shall otherwise agree, procurement of the goods, works works, consultants’ services, training, and services Sub-grants required for the carrying out of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan Credit shall be made in accordance with governed by the provisions of Schedule 2 1 to the Project Agreement. (a) The Borrower shall: (i) furnish to , as such provisions may be further elaborated in the Bank by October 31 in each year, for its review and comment, the proposed POA and budget for the Project and for the Northeast Rural Development Program for the following fiscal year; (ii) afford the Bank a reasonable opportunity to comment on any modifications the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budgetProcurement Plan. (b) In order The Borrower shall cause the North-East Provincial Council to assist update the EMBRAPA Procurement Plan in carrying accordance with the terms of reference acceptable to the Association, and furnish such update to the Association not later than twelve (12) months after the date of the preceding Procurement Plan, for the Association’s approval. Section 3.04. (a) Without prejudice to the Borrower’s obligations under Section9.04 of the General Conditions to ensure that all goods, works, services, training, and Sub-grants financed out Part H of the Credit proceeds are used exclusively for the Project, the Borrower shall cause EMBRAPAthe North-East Provincial Council to ensure that, under contractual arrangements satisfactory to no circumstances, any proceeds of the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment Credit shall be satisfactory to withdrawn, utilized, or made available for the Bankpayment of any taxes, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank levies, fees, or any other surcharges collected or levied by any group, cadre, entity or other non-governmental organization on goods, works, services, training, or Sub-grants or on the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the bank in August 1981importation, manufacture, procurement or supply thereof. Section 3.04. The Bank and the Borrower hereby agree that the obligations set forth in Sections 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out, or caused to be carried out, by (i) the State in respect of the State Project, and by

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

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

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

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

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

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

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

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

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

Execution of the Project. (a) Section 3.01. The Borrower Recipient declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and and, to this end end, shall cause: cause the Federation to carry out the Project through MORSA, with due diligence and efficiency and in accordance with the Implementation Program set forth in Schedule 3 to this Agreement, as such Implementation Program shall be modified from time to time by the agreement of the Recipient and the Administrator. (ia) SDR to coordinate (at the federal level) and issue guidelines related to For purposes of the carrying out of the ProgramProject, to propose annual budgets for such Program and to take all actions necessary to ensure the availability Recipient shall provide the proceeds of the counterpart funds for Grant to the carrying out of Federation under a Subsidiary Grant Agreement to be entered into between the Recipient and the Federation under terms and conditions which shall have been approved by the Administrator, which shall include those described in the Implementation Program set forth in Schedule 3 to this Agreement, as such Implementation Program in a timely manner; (ii) SUDENE shall be modified from time to coordinate (at time by the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, to carry out the credit program included in Parts D and I agreement of the Project; Recipient and (iv) EMBRAPA to carry out Part H of the Project, all with due diligence and efficiency, in accordance with appropriate administrative, financial and agricultural practicesAdministrator. (b) Without any limitation or restriction upon any of its other obligations under the Loan Agreement, the Borrower The Recipient shall cause the State, under contractual arrangements satisfactory to the Bank, to perform in accordance with the provisions of the Project Agreement, all the respective obligations of the State therein set forth, shall take or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable the State to perform its obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (c) Without limitation to its obligations under paragraph (a) above, the Borrower shall: (i) take all action as shall be required to regulate, in a manner satisfactory to the Bank, the funding procedures which will ensure that the Executing Entities shall have the funds required for carrying out the Project available to them in a timely manner; and (ii) provide or cause SUDENE to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h) of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H of the Project and under the State Project, respectively, as provided in each POA. (d) The Borrower shall make the proceeds of the Loan allocated respectively: (i) for purposes of the State Project available to the State; and (ii) for Part H of the Project available to EMBRAPA; under arrangements satisfactory to the Bank. (e) The Borrower, through DTN, shall enter into agreements, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions of Schedule 5 to this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program; (B) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject under the Subsidiary Grant Agreement in such manner as to: (i) to protect the interest interests of the Bank Recipient and the Borrower; (ii) enable the Borrower Administrator and to comply with its obligations under this Agreement; and (iii) achieve accomplish the purposes of the Project. (f) Unless Grant, and except as the Bank Administrator shall otherwise agree, the Borrower Recipient shall not assign, amend, abrogate or waive the provisions of the MCR applicable to the Program. (g) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms and conditions satisfactory to the Bank, not later than six months after the date of the Amending Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive Subsidiary Grant Agreement or fail to enforce any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendations. Section 3.02. Except as the Bank shall otherwise agree, procurement of the goods, works and services required for the carrying out of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan shall be made in accordance with the provisions of Schedule 2 to the Project Agreementthereof. (a) The Borrower shall: Recipient shall cause the Federation to maintain records and accounts adequate to reflect in accordance with sound accounting practices the operations, resources and expenditures in respect of the Project of the departments or agencies of the Federation responsible for carrying out the Project or any part thereof. (b) The Recipient shall cause the Federation to: (i) have the records and accounts referred to in paragraph (a) of this Section and those for the Special Account for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Administrator; (ii) furnish to the Bank by October 31 Administrator as soon as available, but in any case not later than six (6) months after the end of each such year, for its review the report of such audit by said auditors, of such scope and comment, in such detail as the proposed POA and budget for the Project and for the Northeast Rural Development Program for the following fiscal yearAdministrator shall have reasonably requested; (ii) afford the Bank a reasonable opportunity to comment on any modifications the Borrower may intend to introduce to such proposed POA and budget; and and (iii) furnish to the Bank by January 1 Administrator such other information concerning said records and accounts and the audit thereof as the Administrator shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Account were made on the basis of statements of expenditure, the Recipient shall cause the Federation to: (i) maintain or cause to be maintained, in each accordance with paragraph (a) of this Section, records and accounts reflecting such expenditures; (ii) retain, until at least one year after the administrative regulation approving Administrator has received the POA audit report for the fiscal year in which is being initiated on the last withdrawal from the Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such date expenditures; (iii) enable the Administrator’s representatives to examine such records; and (iv) ensure that such records and by March 15 accounts are included in each year the final approved version of such budget. annual audit referred to in paragraph (b) In order to assist the EMBRAPA in carrying out Part H of the Project, the Borrower shall cause EMBRAPA, under contractual arrangements satisfactory to the Bank, to employ consultants whose qualifications, experience this Section and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the bank in August 1981. Section 3.04. The Bank and the Borrower hereby agree that the obligations set forth report of such audit contains a separate opinion by said auditors as to whether the statements of expenditure submitted during such fiscal year, together with the procedures and internal controls involved in Sections 9.04their preparation, 9.05, 9.06, 9.07, 9.08 and 9.09 of can be relied upon to support the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out, or caused to be carried out, by (i) the State in respect of the State Project, and byrelated withdrawals.

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

Execution of the Project. (a) The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and and, to this end shall cause: carry out, through MOG, Parts A (i) SDR to coordinate (at the federal level1) and issue guidelines related to the carrying out of the Program, to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely manner; (ii) SUDENE to coordinate (at the regional level3), supervise B, C, D, E and monitor the Program; (iii) the Participating Banks, through Participating Agreements, to carry out the credit program included in Parts D and I F of the Project; and (iv) EMBRAPA to carry out Part H , with the assistance of the ProjectProject Companies as hereinafter provided, and Part A (2) of the Project through MOF, with the assistance of MOG, all with due diligence and efficiency, efficiency and in accordance conformity with appropriate administrative, petroleum industry, training and financial practices and agricultural practices. (b) Without any limitation or restriction upon any of its other obligations under the Loan Agreementshall provide, promptly as needed, the Borrower shall cause the State, under contractual arrangements satisfactory to the Bank, to perform in accordance with the provisions of the Project Agreement, all the respective obligations of the State therein set forth, shall take or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable resources required for the State to perform its obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performanceProject. (c) Without limitation to its obligations under paragraph (a) above, the Borrower shall: (i) take all action as shall be required to regulate, in a manner satisfactory to the Bank, the funding procedures which will ensure that the Executing Entities shall have the funds required for carrying out the Project available to them in a timely manner; and (ii) provide or cause SUDENE to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h) of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H of the Project and under the State Project, respectively, as provided in each POA. (db) The Borrower shall make available the portion of the proceeds of the Loan allocated respectively:to Categories (1) (a) and (3) (ia) for purposes of in the State Project available table in Schedule 1 to this Agreement to the State; Project Companies under a subsidiary agreement (the Subsidiary Agreement) to be entered into between the Borrower and (ii) for Part H each of the Project available to EMBRAPA; Companies, under arrangements satisfactory to the Bank. (e) The Borrower, through DTN, terms and conditions which shall enter into agreements, satisfactory to have been approved by the Bank, with each of the Participating Banksincluding provisions on procurement, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D project accounting and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions of Schedule 5 to this Agreementaudit, the lending policies and procedures set forth in the MCR applicable to the Program; (B) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure use of the proceeds of the Loan, consultants’ services, right of the goods Bank to supervise directly the execution of the Project, reporting requirement, insurance and services financed out of such proceeds and the repayment performance of Beneficiaries; andcost recovery. (Fc) The Borrower shall exercise its rights in relation to under each Subproject Subsidiary Agreement in such manner as to: (i) to protect the interest interests of the Borrower and the Bank and the Borrower; (ii) enable the Borrower to comply with its obligations under this Agreement; and (iii) achieve accomplish the purposes of the Project. (f) Unless Loan, and, except as the Bank shall otherwise agree, the Borrower shall not assign, amend, abrogate or waive the provisions of the MCR applicable to the Program. (g) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms and conditions satisfactory to the Bank, not later than six months after the date of the Amending Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive Subsidiary Agreement or fail to enforce any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendationsthereof. Section 3.02. Except as the Bank shall otherwise agree, procurement of the goods, works goods and consultants’ services required for the carrying out of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan shall be made in accordance with governed by the provisions of Schedule 2 4 to the Project this Agreement. (a) The Borrower shall: (i) furnish to the Bank by October 31 in each year, for its review and comment, the proposed POA and budget for the Project and for the Northeast Rural Development Program for the following fiscal year; (ii) afford the Bank a reasonable opportunity to comment on any modifications the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budget. (b) In order to assist the EMBRAPA in carrying out Part H of the Project, the Borrower shall cause EMBRAPA, under contractual arrangements satisfactory to the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the bank in August 1981. Section 3.043.03. The Bank and the Borrower hereby agree that the obligations set forth in Sections 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of Parts B (1) and (2) of the Project shall be carried outout by each Project Company pursuant to the provisions of the Subsidiary Agreements. Section 3.04. The Borrower shall ensure that the PIU is at all times headed by a high ranking official of MOG, assisted by a coordinator with qualifications, terms of reference and experience satisfactory to the Bank, who shall be also assisted by qualified staff in adequate numbers and by consultants, acceptable to the Bank, advising on the following matters: procurement, disbursements, training and general project coordination and supervision. (a) The Borrower shall: (i) carry out all studies included in the Project under terms of reference satisfactory to the Bank which, when applicable, shall include specific programs or caused plans of action to meet the objectives of the Project; (ii) promptly after the completion of each study, furnish to the Bank copy of its findings and recommendations including such programs or plans of action; and (iii) afford the Bank a reasonable opportunity to comment on such findings, recommendations and programs or plans of action. (b) The Borrower undertakes to carry out the programs and plans of action referred to in paragraph (a) of this Section as required to meet the objectives of the Project as set forth in Schedule 2 to this Agreement and to take into account the findings and recommendations of the studies included under the Project in its future investment plans in the petroleum and gas sectors. Section 3.06. Regarding the training programs to be carried outout under the Project, by the Borrower shall: (ia) establish a training center (the State in respect Training Center) responsible for the execution of Part C of the State Project; (b) establish an advisory board (the Advisory Board), satisfactory to the Bank, including representatives of the Project Companies and other petroleum sector enterprises, to advise the Borrower on the content, scope and timing of the training programs to be carried out under the Project and assist in the supervision and evaluation of such programs; (c) after the Advisory Board has evaluated and approved the training programs to be carried out under the Project, furnish to the Bank for approval the content of each of such programs as well as the schedule for its implementation; (d) select the beneficiaries of such training programs in accordance with criteria satisfactory to the Bank; (e) not later than September 30 of each year, exchange views with the Bank on the training programs to be carried out in the following calendar year; and (f) furnish to the Bank a report of such scope and detail as the Bank shall reasonably request, on the results of each training program and the benefits to be derived therefrom. Section 3.07. Not later than June 30 and December 31 of each year, the Borrower shall prepare and furnish to the Bank a list of the proposed investments to be reviewed under Part A (3) of the Project. Section 3.08. Not later than January 31, 1995, the Borrower shall prepare and furnish to the Bank a plan, satisfactory to the Bank, defining the scope of restructuring and privatization actions to be taken by the Borrower with regard to the petroleum sector. Such plan shall include a timetable for the execution of such actions. (a) Not later than July 31, 1995, the Borrower and the Bank shall exchange views on the progress achieved in carrying out the Project, and bythe plan referred to in Section 3.08 of this Agreement. (b) Prior to such exchange of views, the Borrower shall furnish to the Bank for its review and comment a report on the progress achieved in carrying out the Project and such plan, in such detail as the Bank shall reasonably request. (a) The Borrower shall establish arrangements, satisfactory to the Bank, to recover the cost of legal and invest- ment technical assistance services provided under the Project for the benefit of juridically independent petroleum sector enterprises. (b) As part of the foregoing, the Borrower shall establish and apply a fee system, satisfactory to the Bank, for the training provided under the Project, which will allow the Borrower to recover the reasonable cost of all expenditures incurred by the Borrower in providing training services to the staff of such petroleum sector enterprises.

Execution of the Project. Section 3.01. The following new section is added at the end of Article III of each Selected Legal Agreement: (a) The Borrower Sri Lanka declares its commitment to the objectives of Part Z of the Project as set forth in Schedule 2 to this Agreement, and (as amended by the Part Z Amendment) and, to this end end, shall cause: (i) SDR to coordinate (at the federal level) and issue guidelines related to the carrying out of the Program, to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely manner; (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, to carry out the credit program included in Parts D and I of the Project; shall cause various implementing agencies (including provincial councils, districts, statutory authorities, government departments, and (ivnon-governmental organizations and other entities) EMBRAPA to undertake their respective obligations to carry out Part H Z of the Project, all Project with due diligence and efficiency, efficiency and in accordance conformity with appropriate administrative, financial environmental, technical, and agricultural public health practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for Part Z of the Project. (b) Without any limitation or restriction upon any the provisions of paragraph (a) of this Section and except as Sri Lanka and the Association shall otherwise agree, Sri Lanka shall: (i) Project in accordance with the Implementation Program for Part Z set forth in Schedule 100 to this Agreement (as amended by the Part Z Amendment) and the Environmental and Social Framework; (ii) make all required efforts on its part to cause various implementing agencies (including provincial councils, districts, statutory authorities, government departments, non-governmental organizations and other entities) to undertake their respective obligations under to carry out Part Z of the Loan Agreement, the Borrower shall cause the State, under contractual arrangements satisfactory to the Bank, to perform Project in accordance with the provisions of this Agreement and the Project AgreementEnvironmental and Social Framework; and (iii) take, all the respective obligations of the State therein set forth, shall take or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable the State various implementing agencies (including provincial councils, districts, statutory authorities, government departments, non-governmental organizations, and other entities) to perform its obligationstheir respective obligations to carry out Part Z of the Project, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (c) Without limitation to its obligations under paragraph (a) above, the Borrower shall: (i) take all action as shall be required to regulate, in a manner satisfactory to the Bank, the funding procedures which will ensure that the Executing Entities shall have the funds required for carrying out the Project available to them in a timely manner; and (ii) provide or cause SUDENE to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h) of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H of the Project and under the State Project, respectively, as provided in each POA. (d) The Borrower shall make the proceeds of the Loan allocated respectively: (i) for purposes of the State Project available to the State; and (ii) for Part H of the Project available to EMBRAPA; under arrangements satisfactory to the Bank. (e) The Borrower, through DTN, shall enter into agreements, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions of Schedule 5 this Agreement relating to this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program; (B) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject in such manner as to: (i) protect the interest of the Bank and the Borrower; (ii) enable the Borrower to comply with its obligations under this Agreement; and (iii) achieve the purposes of the Project. (f) Unless the Bank shall otherwise agree, the Borrower shall not amend, abrogate or waive the provisions of the MCR applicable to the Program. (g) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms and conditions satisfactory to the Bank, not later than six months after the date of the Amending Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive or fail to enforce any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendations. Section 3.02. Except as the Bank shall otherwise agree, procurement of the goods, works works, and services required for the carrying out of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan Financing shall apply to all Parts of the Project except for Part Z. Except as the Association shall otherwise agree, procurement of the goods, works, and services required for Part Z of the Project and to be financed out of the proceeds of the Financing shall be made in accordance with governed by the provisions of Schedule 2 99 to the Project Agreement. this Agreement (a) The Borrower shall: (i) furnish to the Bank by October 31 in each year, for its review and comment, the proposed POA and budget for the Project and for the Northeast Rural Development Program for the following fiscal year; (ii) afford the Bank a reasonable opportunity to comment on any modifications the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budget. (b) In order to assist the EMBRAPA in carrying out Part H of the Project, the Borrower shall cause EMBRAPA, under contractual arrangements satisfactory to the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers and as amended by the World Bank as Executing Agency" published by the bank in August 1981Part Z Amendment). Section 3.04. The Bank and the Borrower hereby agree that the obligations set forth in Sections 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out, or caused to be carried out, by (i) the State in respect of the State Project, and by

Execution of the Project. (a) The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this AgreementAgreement and, and to this end shall causeend: (i) SDR to coordinate (at the federal level) shall carry out Parts A.4, B, C, E, F and issue guidelines related to the carrying out G of the ProgramProject with due diligence and efficiency and in conformity with appropriate agricultural, to propose annual budgets engineering, educational, environmental, public health, administrative and financial practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely manner; (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, to carry out the credit program included in those Parts D and I of the Project; and (ivii) EMBRAPA to carry out Part H of the Project, all with due diligence and efficiency, in accordance with appropriate administrative, financial and agricultural practices. (b) Without without any limitation or restriction upon any of its other obligations under the Loan Development Credit Agreement, the Borrower shall cause the State, under contractual arrangements satisfactory to the Bank, ABS and STPC to perform in accordance with the provisions of the respective Project Agreement, Agreements all the respective obligations of the State ABS and STPC, respectively, therein set forth, shall take or and cause to be taken all actionactions, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable the State ABS and STPC, respectively, to perform its such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (c) Without limitation to its obligations under paragraph (a) above, the Borrower shall: (i) take all action as shall be required to regulate, in a manner satisfactory to the Bank, the funding procedures which will ensure that the Executing Entities shall have the funds required for carrying out the Project available to them in a timely manner; and (ii) provide or cause SUDENE to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h) of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H of the Project and under the State Project, respectively, as provided in each POA. (db) The Borrower shall make relend, out of the proceeds of the Loan allocated respectivelyCredit: (i) for purposes an amount not exceeding the equivalent of SDR 11,130,000 to ABS under a subsidiary loan agreement to be entered into between the State Project available to the State; Borrower and (ii) for Part H of the Project available to EMBRAPA; ABS, under arrangements satisfactory to the Bank. (e) The Borrower, through DTN, shall enter into agreements, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to which shall have been approved by the extent that they are compatible with Association and which shall include charges at the provisions rate of Schedule 5 to this Agreementfourteen percent (14%) per annum, the lending policies and procedures set forth in the MCR applicable to the Program; (B) allocate on a priority basisrepayment over ten years, adequate funds for the financing including two years of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CARgrace, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of foreign exchange risk to be borne by the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds of the Loan, the goods and services financed out of such proceeds and the repayment performance of BeneficiariesBorrower; and (Fii) an amount not exceeding the equivalent of SDR 8,550,000 to STPC under a subsidiary loan agreement to be entered into between the Borrower and STPC, under terms and conditions which shall have been approved by the Association and which shall include charges at the rate of nineteen percent (19%) per annum, repayment over twenty years, including five years of grace, and the foreign exchange risk to be borne by the Borrower. (c) The Borrower shall exercise its rights in relation to each Subproject under the ABS and STPC Subsidiary Loan Agreements, respectively, in such manner as to: (i) to protect the interest interests of the Bank Borrower and the Borrower; (ii) enable the Borrower Association and to comply with its obligations under this Agreement; and (iii) achieve accomplish the purposes of the Project. (f) Unless Credit and, except as the Bank Association shall otherwise agree, the Borrower shall not assign, amend, abrogate or waive the provisions of the MCR applicable to the Program. (g) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms and conditions satisfactory to the Bank, not later than six months after the date of the Amending Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive Subsidiary Loan Agreements or fail to enforce any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendationsthereof. Section 3.02. Except as the Bank Association shall otherwise agree, : (a) procurement of the goods, works and consultants’ services required for the carrying out Parts A.4, B, C, E, F and G of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan Credit shall be made in accordance with governed by the provisions of Schedule 2 3 to this Agreement; and (b) procurement of the goods and works required for Part A.1-3 of the Project and to be financed out of the proceeds of the Credit shall be governed by the provisions of the Schedule to the ABS Project Agreement; (c) procurement of the goods, works and consultants’ services required for Part D of the Project and to be financed out of the proceeds of the Credit shall be governed by the provisions of the Schedule to the STPC Project Agreement. (a) Section 3.03. The Borrower shall: (i) furnish to the Bank by October 31 in each year, for its review and comment, the proposed POA and budget for the Project and for the Northeast Rural Development Program for the following fiscal year; (ii) afford the Bank a reasonable opportunity to comment on any modifications the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budget. (b) In order to assist the EMBRAPA in carrying out Part H of the Project, the Borrower shall cause EMBRAPA, under contractual arrangements satisfactory to the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the bank in August 1981. Section 3.04. The Bank and the Borrower Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07, 9.07 and 9.08 and 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried outout by ABS and STPC, or caused respectively, pursuant to Sections 2.03 of the ABS and STPC Project Agreements, respectively, for Parts A.1-3 and D of the Project. Section 3.04. In carrying out Part A.4 of the Project, the Borrower shall: (a) make available the fuel acquired under the Project to its Ministry of Agriculture to replace stocks used during the flood emergency activities; (b) sell the fertilizers, spare parts and jute sacks acquired under the Project to agricultural corporations; and (c) deposit the Sudanese Pounds generated by such sales into separate account to be carried out, by (i) opened in the State in respect name of the State Ministry of Finance and Economic Planning with the Bank of Sudan and to be used to finance the local costs of development projects included in the Borrower’s budget. Section 3.05. In carrying out Part E.2 of the Project, the Borrower shall cause the Khartoum Commissionerate to distribute the low-income housing construction materials to beneficiaries who meet the eligibility criteria agreed upon between the Borrower and bythe Association.

Execution of the Project. (a) The Borrower Maharashtra declares its commitment to the objectives of the Project as set forth in Schedule 2 to this the Loan Agreement, and and, to this end end, shall causecarry out: (i) SDR to coordinate (at the federal level) and issue guidelines related to the carrying out of the Program, to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely manner; (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, to carry out the credit program included in Parts D and I Part A of the Project; and (ivii) EMBRAPA cause to carry be carried out Part H B of the ProjectProject through the Board, all with due diligence and efficiency, efficiency and in accordance conformity with appropriate administrative, financial financial, engineering and agricultural public utility practices. (b) Without any limitation or restriction upon any of its other obligations under the Loan Agreement, the Borrower and shall cause the Stateprovide, under contractual arrangements satisfactory to the Bank, to perform in accordance with the provisions of the Project Agreement, all the respective obligations of the State therein set forth, shall take or cause to be taken all actionprovided, including promptly as needed, the provision of funds, facilities, services and other resources, necessary or appropriate to enable resources required for the State to perform its obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performanceProject. (cb) Without limitation to its obligations under upon the provisions of paragraph (a) aboveof this Section and except as the Bank and Maharashtra shall otherwise agree, the Borrower shall: (i) take all action as Maharashtra shall carry out or cause to be required to regulate, in a manner satisfactory to the Bank, the funding procedures which will ensure that the Executing Entities shall have the funds required for carrying carried out the Project available in accordance with the Implementation Program set forth in Schedule 2 to them in a timely manner; and (ii) provide or cause SUDENE to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h) of the Project this Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H of the Project and under the State Project, respectively, as provided in each POA. (d) The Borrower Section 2.02. Maharashtra shall make relend an amount equivalent to $170,000,000 to the Board out of the proceeds of the Loan allocated respectively: (i) for purposes of made available by the State Project available Borrower to the State; Maharashtra, under terms and (ii) for Part H of the Project available to EMBRAPA; under arrangements satisfactory to the Bank. (e) The Borrower, through DTN, conditions which shall enter into agreements, satisfactory to have been approved by the Bank, with each of the Participating Bankswhich shall, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions of Schedule 5 to this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program; (B) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject in such manner as to: (i) protect the interest of the Bank and the Borrower; (ii) enable the Borrower to comply with its obligations under this Agreement; and (iii) achieve the purposes of the Project. (f) Unless the Bank shall otherwise agree, the Borrower shall not amend, abrogate or waive the provisions of the MCR applicable to the Program. (g) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms and conditions satisfactory to the Bank, not later than six months after the date of the Amending Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of the Project and except as the Bank shall may otherwise agree, cause SUDENE and EMBRAPA include interest at a rate not less than the prevailing standard rate of interest applicable to amend, abrogate, waive or fail to enforce any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory loans from Maharashtra to the BankBoard (and in no event less than 9% per annum) on the principal amount so relent and withdrawn by the Board and outstanding from time to time, and shallrepayment over a period of twenty years, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendationsincluding therein a period of grace of five years. Section 3.022.03. Except as the Bank shall otherwise agree, procurement pro- curement of the goods, works and consultants’ services required for the carrying out of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan shall be made in accordance with governed by the provisions of Schedule 2 1 to the Project Agreement. (a) The Borrower shall: (i) furnish to the Bank by October 31 in each year, for its review and comment, the proposed POA and budget for the Project and for the Northeast Rural Development Program for the following fiscal year; (ii) afford the Bank a reasonable opportunity to comment on any modifications the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budget. (b) In order to assist the EMBRAPA in carrying out Part H of the Project, the Borrower shall cause EMBRAPA, under contractual arrangements satisfactory to the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the bank in August 1981this Agree- ment. Section 3.042.04. The Bank and the Borrower hereby agree that Maharashtra shall carry out or cause to be carried out the obligations set forth in Sections 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out, or caused to be carried out, by (i) the State in respect of the State Project Agreement. Section 2.05. (a) Maharashtra shall, at the request of the Bank, exchange views with the Bank with regard to progress of the Project, and bythe performance of its obligations under this Agreement other matters relating to the purposes of the Loan.

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

Execution of the Project. Section 3.01. The following new section is added at the end of Article III of each Selected Legal Agreement: (a) The Borrower Sri Lanka declares its commitment to the objectives of Part Z of the Project as set forth in Schedule 2 to this Agreement, and (as amended by the Part Z Amendment) and, to this end end, shall cause: (i) SDR to coordinate (at the federal level) and issue guidelines related to the carrying out of the Program, to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely manner; (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, to carry out the credit program included in Parts D and I of the Project; shall cause various implementing agencies (including provincial councils, districts, statutory authorities, government departments, and (ivnon-governmental organizations and other entities) EMBRAPA to undertake their respective obligations to carry out Part H Z of the Project, all Project with due diligence and efficiency, efficiency and in accordance conformity with appropriate administrative, financial environmental, technical, and agricultural public health practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for Part Z of the Project. (b) Without any limitation or restriction upon any the provisions of paragraph (a) of this Section and except as Sri Lanka and the Association shall otherwise agree, Sri Lanka shall: (i) Project in accordance with the Implementation Program for Part Z set forth in Schedule 100 to this Agreement (as amended by the Part Z Amendment) and the Environmental and Social Framework; (ii) make all required efforts on its part to cause various implementing agencies (including provincial councils, districts, statutory authorities, government departments, non- governmental organizations and other entities) to undertake their respective obligations under to carry out Part Z of the Loan Agreement, the Borrower shall cause the State, under contractual arrangements satisfactory to the Bank, to perform Project in accordance with the provisions of this Agreement and the Project AgreementEnvironmental and Social Framework; and (iii) take, all the respective obligations of the State therein set forth, shall take or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable the State various implementing agencies (including provincial councils, districts, statutory authorities, government departments, non-governmental organizations, and other entities) to perform its obligationstheir respective obligations to carry out Part Z of the Project, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (c) Without limitation to its obligations under paragraph (a) above, the Borrower shall: (i) take all action as shall be required to regulate, in a manner satisfactory to the Bank, the funding procedures which will ensure that the Executing Entities shall have the funds required for carrying out the Project available to them in a timely manner; and (ii) provide or cause SUDENE to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h) of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H of the Project and under the State Project, respectively, as provided in each POA. (d) The Borrower shall make the proceeds of the Loan allocated respectively: (i) for purposes of the State Project available to the State; and (ii) for Part H of the Project available to EMBRAPA; under arrangements satisfactory to the Bank. (e) The Borrower, through DTN, shall enter into agreements, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions of Schedule 5 this Agreement relating to this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program; (B) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject in such manner as to: (i) protect the interest of the Bank and the Borrower; (ii) enable the Borrower to comply with its obligations under this Agreement; and (iii) achieve the purposes of the Project. (f) Unless the Bank shall otherwise agree, the Borrower shall not amend, abrogate or waive the provisions of the MCR applicable to the Program. (g) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms and conditions satisfactory to the Bank, not later than six months after the date of the Amending Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive or fail to enforce any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendations. Section 3.02. Except as the Bank shall otherwise agree, procurement of the goods, works works, and services required for the carrying out of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan Financing shall apply to all Parts of the Project except for Part Z. Except as the Association shall otherwise agree, procurement of the goods, works, and services required for Part Z of the Project and to be financed out of the proceeds of the Financing shall be made in accordance with governed by the provisions of Schedule 2 99 to the Project Agreement. this Agreement (a) The Borrower shall: (i) furnish to the Bank by October 31 in each year, for its review and comment, the proposed POA and budget for the Project and for the Northeast Rural Development Program for the following fiscal year; (ii) afford the Bank a reasonable opportunity to comment on any modifications the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budget. (b) In order to assist the EMBRAPA in carrying out Part H of the Project, the Borrower shall cause EMBRAPA, under contractual arrangements satisfactory to the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers and as amended by the World Bank as Executing Agency" published by the bank in August 1981Part Z Amendment). Section 3.04. The Bank and the Borrower hereby agree that the obligations set forth in Sections 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out, or caused to be carried out, by (i) the State in respect of the State Project, and by

Execution of the Project. (a) The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this AgreementAgreement and, and to this end shall causeend: (i) SDR to coordinate (at the federal level) and issue guidelines related to the carrying out of the Program, to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely manner; (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, to shall carry out the credit program included Project with due diligence and efficiency and in Parts D conformity with appropriate financial, technical, administrative, engineering and I of environmental practices, and shall provide promptly as needed, the funds, facilities, services and other resources required for the Project; and (ivii) EMBRAPA to carry out Part H of the Project, all with due diligence and efficiency, in accordance with appropriate administrative, financial and agricultural practices. (b) Without without any limitation or restriction upon any of its other obligations under the Loan this Agreement, the Borrower shall cause the State, under contractual arrangements satisfactory to the Bank, each MG Municipality to perform in accordance with the provisions of the Project Agreement, their individual Grant Participation Agreement all the respective obligations of the State municipalities therein set forth, shall take or and cause to be taken all actionactions, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable the State municipalities to perform its such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance.; (b) Without limitation upon the provisions of paragraph (a) of this Section and, except as the Borrower and the Association shall otherwise agree, the Borrower shall carry out the Project in accordance with the Implementation Program set forth in Schedule 4 to this Agreement; (c) Without limitation to its obligations under upon the provisions of paragraph (a) aboveof this Section and, except as the Borrower and the Association shall otherwise agree, the Borrower shall assist the municipalities in carrying out Part B of the Project in accordance with the terms and conditions Implementation Program set forth in the Grant Participation Agreements; and (d) For the purposes of Part B of the Project, the Borrower shall: (i) take all action make available part of the proceeds of the Credit under Category 1, 2 (ab) and , 3 (b) of the table in paragraph A of Schedule 1 to this Agreement and 4(b)to the municipalities as shall grants under a subsidiary agreement to be required to regulate, in a manner satisfactory to entered into between the Bank, Borrower and each MG Municipality (the funding procedures Grant Participation Agreement) under terms and conditions which will ensure that the Executing Entities shall have been approved by the funds required for carrying out the Project available to them in a timely mannerAssociation; and (ii) provide or cause SUDENE to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h) of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H of the Project and under the State Project, respectively, as provided in each POA. (d) The Borrower shall make the proceeds of the Loan allocated respectively: (i) for purposes of the State Project available to the State; and (ii) for Part H of the Project available to EMBRAPA; under arrangements satisfactory to the Bank. (e) The Borrower, through DTN, shall enter into agreements, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions of Schedule 5 to this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program; (B) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject under the Grant Participation Agreement in such manner as to: (i) to protect the interest interests of the Bank Borrower and the Borrower; (ii) enable the Borrower Association and to comply with its obligations under this Agreement; and (iii) achieve accomplish the purposes of the Project. (f) Unless the Bank shall otherwise agree, the Borrower shall not amend, abrogate or waive the provisions of the MCR applicable to the Program. (g) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms and conditions satisfactory to the Bank, not later than six months after the date of the Amending Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive or fail to enforce any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendations. Section 3.02. Except as the Bank Association shall otherwise agree, procurement of the goods, works and services required for the carrying out of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan Credit shall be made in accordance with governed by the provisions of Schedule 2 3 to the Project this Agreement. Section 3.03. For the purposes of Section 9.07 of the General Conditions and without limitation thereto, the Borrower shall: (a) The Borrower shall: (i) prepare, on the basis of guidelines acceptable to the Association, and furnish to the Bank by October 31 in each yearAssociation not later than six months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Association, for its review and comment, a plan designed to ensure the proposed POA and budget for sustainability of the Project and for the Northeast Rural Development Program for the following fiscal yearProject; and (iib) afford the Bank Association a reasonable opportunity to comment on any modifications exchange views with the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budget. (b) In order to assist the EMBRAPA in carrying out Part H of the Project, the Borrower shall cause EMBRAPA, under contractual arrangements satisfactory to the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the bank in August 1981said plan. Section 3.04. The Bank and Without limitation to its obligations under Section 3.01 of this Agreement, the Borrower hereby agree that shall: (a) open and thereafter maintain, until the obligations set forth in Sections 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09 completion of the General Conditions Project, an account (relating the Project Account) in Meticais, in a commercial bank acceptable to insurancethe Association, use on terms and conditions satisfactory to the Association; (b) deposit, no later than 60 days after the Date of goods and servicesEffectiveness, plans and schedules, records and reports, maintenance and land acquisition, respectivelyan initial amount in Meticais equivalent to $12,000_____ (Initial Deposit) into such account to finance the Borrower’s contribution to the Project; (c) thereafter deposit into the Project Account by the first day of each quarter each year during Project implementation such amounts as shall be carried out, or caused required and agreed upon with the Association to be carried out, by timely replenish the Project Account back to the amount of the Initial Deposit referred to in paragraph (b); (d) use the funds in the Project Account exclusively to finance expenditures under the Project; and (e) cause each MG Municipality to: (i) open and maintain, in Meticais, in one or more commercial banks acceptable to the State Association, a Municipal Project Account, on terms and conditions satisfactory to the Association, in respect the name of each MG Municipality to be used by such MG Municipality as the MG Municipality’s counterpart contribution to the costs of Part B of the State Project; and (ii) deposit into each Municipal Project Account, and byan initial amount sufficient to cover the counterpart funds contribution to the Project for each MG Municipality as determined by its Aannual MG Iinvestment Pplan.

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

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

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

Execution of the Project. (a) The Borrower Section 2.01. Madhya Pradesh declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreementthe Development Credit Agreement (Narmada River Development (Gujarat) Sardar Sarovar Dam and Power Project), and and, to this end shall cause: (i) SDR to coordinate (at the federal level) and issue guidelines related to the carrying out of the Programend, to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely manner; (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, to carry out the credit program included in Parts D and I of the Project; and (iv) EMBRAPA to carry out Part H of the Project, all with due diligence and efficiency, in accordance with appropriate administrative, financial and agricultural practices.shall: (ba) Without any limitation or restriction upon any of its other obligations under the Loan Agreementprovide, the Borrower shall cause the State, under contractual arrangements satisfactory to the Bank, to perform in accordance with the provisions of the Project Agreement, all the respective obligations of the State therein set forth, shall take or cause to be taken all actionprovided, including to Gujarat, promptly as needed and pursuant to the provision cost-sharing provisions of the Decision, the funds, facilities, services and other resources, necessary or appropriate resources required to enable Gujarat to carry out Parts A through O (i) of the Project described in said Schedule (to the extent that such Parts of the Project or components thereof are located within Gujarat’s State to perform its obligationsboundaries) with due diligence and efficiency, and shall not take take, or permit to be taken taken, any action which would prevent or interfere with such performance; (b) carry out Part L (to the extent that such Part of the Project or components thereof are located within Madhya Pradesh’s State boundaries), and Part O (ii) of the Project described in said Schedule, all with due diligence and efficiency and in conformity with appropriate administrative, engineering, monitoring and evaluation, financial, and resettlement and rehabilitation practices, and shall provide, promptly as needed, the funds, facilities, staffing, services and other resources required for the purposes; (c) carry out in coordination with Gujarat, Maharashtra and NCA, the procurement, construction, installation, operation and maintenance of such portions of the hydrometeorological network under Part N of the Project (to be located within Madhya Pradesh’s State boundaries), with due diligence and efficiency and in conformity with appropriate administrative, financial and engineering practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, staffing, services and other resources required for the purposes; (d) without limitation to the provisions of paragraph (c) of this Section, provide, or cause to be provided, to NCA, promptly as needed and pursuant to the cost-sharing provisions of the Decision, the funds, facilities, services and other resources required to enable NCA to carry out its responsibilities provided for in the Decision, inter alia, the overall operation and maintenance of the hydrometeorological network under Part N of the Project, and shall not take, or permit to be taken, any action which would prevent or interfere with such responsibilities; and (e) without limitation to the provisions of paragraph (d) of this Section, provide, or cause to be provided, to NCA, promptly as needed and pursuant to the cost-sharing provisions of the Decision, the funds, facilities, services and other resources required to enable NCA to assist the Borrower in carrying out Part P of the Project with due diligence and efficiency and shall not take, or permit to be taken, any action which would prevent or interfere with such performance. (c) Section 2.02. Without limitation to its obligations the provisions of Section 2.01 of this Agreement, Madhya Pradesh shall: (a) carry out the planning, design and construction of the works under Part N of the Project (located within Madhya Pradesh’s State boundaries), and the installation of the equipment under Part N of the Project (located within Madhya Pradesh’s State boundaries) all in accordance with standards and criteria acceptable to the Association; (b) without limitation to the provisions of paragraph (a) aboveof this Section, the Borrower shall: (i) take all action as shall be required to regulateby December 31, 1986, in a manner satisfactory coordination with Gujarat, Maharashtra and NCA, prepare and furnish to the BankAssociation, for its approval, a final system design for the funding procedures which will ensure that hydrometeorological network under Part N of the Executing Entities shall have the funds required for carrying Project, including equipment specifications and construction schedules, and, thereafter, carry out the Project available to them in a timely manner; and (ii) provide or cause SUDENE to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h) such Part of the Project Agreement; all pursuant to such system design and construction schedule, as so approved; (c) by December 31, 1987, in a timely manner coordination with Gujarat, Maharashtra and in sufficient amounts NCA, prepare and furnish to the Association, for its approval, an operation and maintenance plan for the purpose of financing the activities hydrometeorological network under Part H N of the Project and under the State Project, respectivelywhich plan shall include the provision of funds, staff and other resources and, thereafter, adopt and implement such plan, as provided in each POA.so approved; and (d) The Borrower shall make by December 31, 1991 or such other date as may be agreed upon between the proceeds Association and Madhya Pradesh, complete within Madhya Pradesh’s State boundaries, the construction of the Loan allocated respectively: (i) transmission lines and substations required for purposes the full integration of the State power-related facilities under the Project available with the Borrower’s western region power grid. Section 2.03. In order to the State; and (ii) for assist Madhya Pradesh in carrying out Part H N of the Project available to EMBRAPA; under arrangements satisfactory to the Bank. (e) The Borrower, through DTN, shall enter into agreements, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions of Schedule 5 to this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program; (B) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs such Part of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital creditproject or portions thereof are located within Madhya Pradesh’s State boundaries), the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank Madhya Pradesh shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject in such manner as to: (i) protect the interest of the Bank and the Borrower; (ii) enable the Borrower to comply with its obligations under this Agreement; and (iii) achieve the purposes of the Project. (f) Unless the Bank shall otherwise agree, the Borrower shall not amend, abrogate or waive the provisions of the MCR applicable to the Program. (g) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms and conditions satisfactory to the Bank, not later than six months after the date of the Amending Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive or fail to enforce any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Programemploy, in accordance coordination with terms of reference satisfactory to the BankGujarat and Maharashtra, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendations. Section 3.02. Except as the Bank shall otherwise agree, procurement of the goods, works and services required for the carrying out of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan shall be made in accordance with the provisions of Schedule 2 to the Project Agreement. (a) The Borrower shall: (i) furnish to the Bank by October 31 in each year, for its review and comment, the proposed POA and budget for the Project and for the Northeast Rural Development Program for the following fiscal year; (ii) afford the Bank a reasonable opportunity to comment on any modifications the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budget. (b) In order to assist the EMBRAPA in carrying out Part H of the Project, the Borrower shall cause EMBRAPA, under contractual arrangements satisfactory to the Bank, to employ consultants and/or experts whose qualifications, experience and terms and conditions of employment shall be satisfactory to the BankAssociation, such consultants and/or experts to be selected in accordance with principles and procedures satisfactory to the Bank Association on the basis of the "‘Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" ’ published by the bank Bank in August 1981. Section 3.042.04. The Bank Except as the Association shall otherwise agree, procurement of the goods and civil works required for Part N of the Project and to be financed out of the proceeds of the Credit shall be governed by the provisions of Schedule 1 to the Gujarat Project Agreement. (a) Madhya Pradesh undertakes to insure, or make adequate provision for the insurance of, the imported goods to be financed out of the proceeds of the Credit made available to it by the Borrower against hazards incident to the acquisition, transportation and delivery thereof to the place of use or installation, and for such insurance any indemnity shall be payable in a currency freely usable by Madhya Pradesh to replace or repair such goods. (b) Madhya Pradesh shall cause all goods and services financed out of the proceeds of the Credit made available to it by the Borrower to be used exclusively for the purposes of the Project. Section 2.06. Madhya Pradesh shall take all such action as shall be necessary to maintain, at all times, the Narmada Control Authority, the Sardar Sarovar Construction Advisory Committee and the Borrower hereby agree that Narmada Review Committee, each with such powers, functions, responsibilities and membership as provided for in the obligations Decision, and staffing and funds as shall be required to enable each of them to accomplish its purposes, and shall not take, or cause to be taken, any action which shall prevent or interfere with such purposes. Section 2.07. Madhya Pradesh shall adopt and, thereafter, implement within its State boundaries, a resettlement and rehabilitation plan for the Oustees, satisfactory to the Association, which plan shall include the principles and objectives set forth or referred to in Sections 9.04Schedule 3 to the Development Credit Agreement (Narmada River Development (Gujarat) Sardar Sarovar Dam and Power Project) and the institutional arrangements provided for in the Schedule to this Agreement. Section 2.08. (a) Madhya Pradesh shall, 9.05in collaboration with Gujarat and Maharashtra, 9.06, 9.07, 9.08 prepare and 9.09 of furnish to the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out, or caused to be carried out, by Association for its approval: (i) by December 31, 1985, a work, plan for the State in respect environmental effects derived and to be derived from the implementation of the State Sardar Sarovar Project, which work plan shall include (A) suitable training programs for the Project’s staff of Gujarat, Madhya Pradesh and byMaharashtra, including plans, schedules, syllabi and provision of funds, and (B) studies and implementation schedules therefore, for fish and fisheries, forest and wildlife, and public health aspects; (ii) by June 30, 1989, a suitable training program of operation and maintenance of the facilities under the Sardar Sarovar Project, including plans, schedules, syllabi and provision of funds; and (iii) by December 31, 1985, a suitable training program on resettlement and rehabilitation of the Oustees for the Project’s staff of Gujarat, Madhya Pradesh and Maharashtra, including plans, schedules, syllabi and provision of funds.

Execution of the Project. (a) The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and and, to this end end, shall causecarry out: (i) SDR to coordinate (at the federal level) Parts A, B and issue guidelines related to the carrying out D of the Program, to propose annual budgets for such Program and to take all actions necessary to ensure Project through STU with the availability assistance of the counterpart funds for Municipal Councils and the carrying out of such Program in a timely mannerMunicipalities; and (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, to carry out the credit program included in Parts D and I Part C of the Project; and (iv) EMBRAPA to carry out Part H of the ProjectProject through GEPLAN, all with due diligence and efficiency, efficiency and in accordance conformity with appropriate social, administrative, agricultural, environmental, financial and agricultural engineering practices. (b) Without any limitation or restriction upon any of its other obligations under the Loan Agreement, the Borrower and shall cause the State, under contractual arrangements satisfactory to the Bank, to perform in accordance with the provisions of the Project Agreement, all the respective obligations of the State therein set forth, shall take provide or cause to be taken all actionprovided, including promptly as needed, the provision of funds, facilities, services and other resourcesresources required for the Project. (b) Without limitation to the provisions of Section 3.01 (a) of this Agreement, necessary or appropriate to enable the State to perform its obligationsBorrower shall, as applicable, carry out, and shall not take or permit cause to be taken carried out, the Project in accordance with the provisions and/or recommendations of: (i) the Approved POA; (ii) the plan, furnished by the Borrower to the Bank on October 30, 2003, for the development of indigenous peoples carrying out Community Subprojects, or benefiting in any action manner from the carrying out of the Project, with the assistance of the Guarantor’s Fundação Nacional do Índio (FUNAI); and (iii) a manual, satisfactory to the Bank (the Operational Manual), which would prevent or interfere with shall contain the policies and procedures for the carrying out, monitoring and evaluation of the Project, including, inter alia: (A) the procedures for preparation, prioritization and approval of Community Subprojects, including environmental criteria and procedures for screening and management of such performanceSubprojects, as provided in the environmental management plan furnished by the Borrower to the Bank on October 30, 2003, and the expected contribution of such Subprojects to a positive impact on the HDI; (B) the criteria for eligibility of Community Associations to participate in the Project, (C) the organization and membership of Municipal Councils; (D) the responsibilities and functions of the Municipal Councils in the selection of Community Associations and Community Subprojects; (E) the procedures and criteria for the provision of Area A Grants and Area B Grants; (F) the model form of Grant Agreements; (G) the Project procurement and financial management requirements and procedures; and (H) the indicators to be used for Project monitoring and evaluation. In case of any inconsistency between a provision of the Operational Manual and this Agreement, the provision of this Agreement will prevail. (c) Without limitation to its obligations under paragraph (a) aboveThe Borrower shall maintain the STU, the Borrower shall: (i) take all action as shall be required to regulateduring Project implementation, in a manner with responsibilities, structure and functions satisfactory to the Bank, the funding procedures which will ensure that the Executing Entities shall have the funds required for carrying out the Project available to them in a timely manner; and (ii) provide or cause SUDENE to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h) of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H of the Project and under the State Project, respectively, as provided in each POA. (d) The Borrower shall make the proceeds of the Loan allocated respectively: (i) for purposes of the State Project available to the State; and (ii) for Part H of the Project available to EMBRAPA; under arrangements satisfactory to the Bank. (e) The Borrower, through DTN, shall enter into agreements, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions of Schedule 5 to this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program; (B) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject in such manner as to: (i) protect the interest of the Bank and the Borrower; (ii) enable the Borrower to comply with its obligations under this Agreement; and (iii) achieve the purposes of the Project. (f) Unless the Bank shall otherwise agree, the Borrower shall not amend, abrogate or waive the provisions of the MCR applicable to the Program. (g) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms and conditions satisfactory to the Bank, not later than six months after the date of the Amending Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive or fail to enforce any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendations. Section 3.02. Except as the Bank shall otherwise agree, procurement of the goods, works and consultants’ services required for the carrying out of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan shall be made in accordance with governed by the provisions of Schedule 2 4 to the Project this Agreement. (a) The Borrower shall: (i) furnish to the Bank by October 31 in each year, for its review and comment, the proposed POA and budget for the Project and for the Northeast Rural Development Program for the following fiscal year; (ii) afford the Bank a reasonable opportunity to comment on any modifications the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budget. (b) In order to assist the EMBRAPA in carrying out Part H of the Project, the Borrower shall cause EMBRAPA, under contractual arrangements satisfactory to the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the bank in August 1981. Section 3.04. The Bank and the Borrower hereby agree that the obligations set forth in Sections 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out, or caused to be carried out, by (i) the State in respect of the State Project, and by

Execution of the Project. (a) Section 3.01. The Borrower Recipient declares its commitment to the objectives of the Project as set forth in Schedule 2 Project, and, to this Agreementend, and to this end shall cause: (i) SDR to coordinate (at the federal level) and issue guidelines related to the carrying out of the Program, to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely manner; (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, to carry out the credit program included in Parts D and I of the Project; and (iv) EMBRAPA to carry out Part H of the Project, all Project with due diligence and efficiency, efficiency and in accordance conformity with appropriate financial, technical, administrative, financial and agricultural environmental practices. (b) Without any limitation or restriction upon any of its other obligations under the Loan Agreement, and shall provide, promptly as needed, the Borrower shall cause the State, under contractual arrangements satisfactory to the Bank, to perform in accordance with the provisions of the Project Agreement, all the respective obligations of the State therein set forth, shall take or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable resources required for the State to perform its obligationsProject. Section 3.02. Without limitation upon the provisions of Section 3.01 of this Agreement, and except as the Administrator and Recipient shall not take or permit to be taken any action which would prevent or interfere with such performance. (c) Without limitation to its obligations under paragraph (a) aboveotherwise agree, the Borrower shall: (i) take all action as Recipient shall be required to regulate, in a manner satisfactory to the Bank, the funding procedures which will ensure that for the Executing Entities shall have the funds required for carrying out the Project available to them in a timely manner; and (ii) provide or cause SUDENE to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h) purposes of the Project Agreement; all in a timely manner and in sufficient amounts for during the purpose of financing the activities under Part H term of the Project the PMU is maintained with staff and under resources necessary and appropriate for the State Project, respectively, as provided in each POA. (d) The Borrower shall make the proceeds of the Loan allocated respectively: (i) for purposes of the State Project available to the State; and (ii) for Part H of the Project available to EMBRAPA; under arrangements satisfactory to the Bank. (ea) The Borrower, through DTN, Recipient shall enter into agreements, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend make the proceeds of the Loan Grant, allocated for purposes from time to time to the Categories of the credit programs included in Parts D and I of the Project in accordance with: Agreement; and 1. the terms and conditions table set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions paragraph 1 of Schedule 5 1 to this Agreement, the lending policies and procedures set forth in the MCR applicable available to the Program;Republic of Serbia under a subsidiary grant and project implementation agreement (Sub-Grant and Project Implementation Agreement) to be entered into between the Recipient and the Republic of Serbia, under terms and conditions which shall have been approved by the Administrator. (Bb) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank The Recipient shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject under the Sub-Grant and Project Implementation Agreement in such manner as to: (i) to protect the interest interests of the Bank Recipient and the Borrower; (ii) enable the Borrower Administrator and to comply with its obligations under this Agreement; and (iii) achieve accomplish the purposes of the Project. (f) Unless Grant, and, except as the Bank Administrator shall otherwise agree, the Borrower Recipient shall not assign, amend, abrogate or waive the provisions of the MCR applicable to the Program. (g) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms Sub-Grant and conditions satisfactory to the Bank, not later than six months after the date of the Amending Project Implementation Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive or fail to enforce any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendationsthereof. Section 3.023.04. Except as the Bank Administrator shall otherwise agree, procurement of the goods, works goods and services required for the carrying out of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan Grant shall be made in accordance with governed by the provisions of Schedule 2 3 to the Project this Agreement. (a) The Borrower Recipient and Administrator shall: (i) furnish , from time to time, at the Bank by October 31 request of either party, exchange views on the progress achieved in each year, for its review and comment, carrying out the proposed POA and budget for the Project and for the Northeast Rural Development Program for the following fiscal year; (ii) afford the Bank a reasonable opportunity to comment on any modifications the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budgetProgram. (b) In order Prior to assist such exchange of views, the EMBRAPA Recipient shall furnish to the Administrator for its review and comment a report on the progress achieved in carrying out Part H the Program, in such detail as the Administrator shall reasonably request. (c) Without limitations upon the provisions of paragraph (a) of this Section, the Recipient shall exchange views with the Administrator on any proposed action to be taken after the disbursement of Category (5) which would have the effect of materially reversing the objectives of the ProjectProgram, or any action taken under the Program, including any action set forth in Schedule 5 to this Agreement. Section 3.06. For the purposes of Section 24 of the General Conditions and without limitation thereto, the Borrower shall cause EMBRAPARecipient shall: (a) prepare, under contractual arrangements satisfactory to the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis of guidelines acceptable to the "Guidelines Administrator, and furnish to the Administrator not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Use Recipient and the Administrator, a plan designed to ensure the continued achievement of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by Project’s objectives; and (b) afford the bank in August 1981Administrator a reasonable opportunity to exchange views with the Recipient on said plan. Section 3.043.07. The Bank Recipient shall maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with the indicators agreed upon from time to time between the Recipient and the Borrower hereby agree that Administrator, the obligations set forth in Sections 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09 carrying out of the General Conditions (relating to insurance, use of goods Project and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out, or caused to be carried out, by (i) the State in respect achievement of the State Project, and byobjectives thereof.

Execution of the Project. (a) The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this AgreementAgreement and, and to this end shall cause: (i) SDR to coordinate (at the federal level) and issue guidelines related to the carrying out of the Programend, to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely manner; (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, to carry out the credit program included in Parts D and I of the Project; and (iv) EMBRAPA to carry out Part H of the Project, all with due diligence and efficiency, in accordance with appropriate administrative, financial and agricultural practices. (b) Without without any limitation or restriction upon any of its other obligations under the Loan this Agreement, the Borrower shall shall: (i) cause the State, under contractual arrangements satisfactory to the Bank, AGETUR and SERHAU-SEM to perform in accordance with the provisions of the Project relevant Subsidiary Agreement and, in the case of SERHAU-SEM, in accordance with the PNCU Agreement, all the respective obligations of the State AGETUR and SERHAU-SEM therein set forth, shall take or and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable the State AGETUR and SERHAU-SEM to perform its such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance; (ii) cause the Cotonou CU and the Porto-Novo CU to provide the funds, facilities, services and other resources agreed upon between the Borrower and the Association to be the contribution of the said CUs towards the execution of Part D.4 of the Project, and to this end, cause the Cotonou CU and the Porto-Novo CU to deposit into project accounts on terms acceptable to the Association the amounts agreed upon between the Borrower and the Association, as set forth in Schedule 6 to this Agreement, as the contribution of said CUs towards the financing of the said part of the Project; and (iii) for the purposes of Part B of the Project, cause the AMSM to perform in accordance with the provisions of the Menontin Agreement all the obligations of AMSM therein set forth shall take and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable AMSM to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (cb) Without limitation to its obligations under paragraph (a) aboveFor the purpose of carrying out the Project, the Borrower shall: shall enter into an agreement or agreements with each of AGETUR and SERHAU-SEM (the Subsidiary Agreement) on terms and conditions satisfactory to the Association which shall include, inter alia: (i) take delegation of authority for all action procurement actions and for award and signature of contracts, as shall be required to regulate, in a manner satisfactory well as for signature and presentation of disbursement requests to the Bank, the funding procedures which will ensure that the Executing Entities shall have the funds required for carrying out the Project available to them in a timely manner; and Association; (ii) provide or cause SUDENE to provide advances in Cruzeiros intoprovision for the transfer of the proceeds of the Credit on a non-reimbursable basis: (A) an account opened and operated by EMBRAPAfor purposes of financing the activities to be carried out under the Project; and (B) an account opened in the case of AGETUR, for the operating costs and operated by equipment of AGETUR, including the State, as referred obligation of AGETUR to in Section 2.01 (h) return all of its equipment to the Borrower upon completion of the Project Agreement; all in a timely manner and in sufficient amounts for or the purpose of financing the activities under Part H of the Project and under the State Project, respectively, as provided in each POA. (d) The Borrower shall make the proceeds of the Loan allocated respectively: (i) for purposes of the State Project available to the State; and (ii) for Part H of the Project available to EMBRAPA; under arrangements satisfactory to the Bank. (e) The Borrower, through DTN, shall enter into agreements, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of the Project day before its dissolution in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions statutes of Schedule 5 to this AgreementAGETUR, the lending policies and procedures set forth in the MCR applicable to the Programwhatever happens first; (Biii) allocate on a priority basisthe obligation of AGETUR and SERHAU-SEM to take all measures necessary to ensure that the Project is carried out with due diligence and efficiency and in accordance with appropriate administrative, adequate funds for the financing of working capital (custeio) needs of the Beneficiariestechnical and financial practices; (Civ) maintain separate accounts the obligation of AGETUR and records SERHAU-SEM to keep key positions filled with employees with adequate to record experience and monitor the progress of the credit programs under Parts D and I of the Projectqualifications; (Dv) undertake the obligation of AGETUR and SERHAU-SEM to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), promptly inform the demand for working capital credit and for credit under Part I of the Project Borrower and the preceding month’s lending performance Association of any condition which interferes, or threatens to interfere, with the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I progress of the Project, the Subloans, the Beneficiaries, the expenditure accomplishment of the proceeds purposes of the LoanCredit, or the goods performance by AGETUR and services financed out SERHAU-SEM of such proceeds and its obligations under the repayment performance of Beneficiariesrespective Subsidiary Agreement; and (Fvi) the obligation of AGETUR and SERHAU-SEM to provide quarterly and annual reports of such scope and in such detail as the Borrower or the Association shall reasonably request. (c) The Borrower shall exercise its rights in relation under each Subsidiary Agreement, and shall cause SERHAU-SEM to each Subproject exercise its rights under the PNCU Agreement, in such manner as to: (i) to protect the interest interests of the Bank Borrower and the Borrower; (ii) enable the Borrower Association and to comply with its obligations under this Agreement; and (iii) achieve accomplish the purposes of the Project. (f) Unless Credit and, except as the Bank Association shall otherwise agree, the Borrower shall not assign, amend, abrogate or waive either Subsidiary Agreement or any provision thereof and shall ensure that SERHAU-SEM shall not assign, amend, abrogate or waive the provisions of the MCR applicable to the Program. (g) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms and conditions satisfactory to the Bank, not later than six months after the date of the Amending Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive PNCU Agreement or fail to enforce any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendationsthereof. Section 3.02. The Borrower shall, for the purposes of overall Project coordination, maintain the CIS-PRGUX with composition and functions acceptable to the Association for the duration of the Project. Section 3.03. Except as the Bank Association shall otherwise agree, procurement of the goods, works and consultants’ services required for the carrying out of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan Credit shall be made in accordance with governed by the provisions of Schedule 2 3 to the Project this Agreement. (a) The Borrower shall: (i) furnish to the Bank by October 31 in each year, for its review and comment, the proposed POA and budget for the Project and for the Northeast Rural Development Program for the following fiscal year; (ii) afford the Bank a reasonable opportunity to comment on any modifications the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budget. (b) In order to assist the EMBRAPA in carrying out Part H of the Project, the Borrower shall cause EMBRAPA, under contractual arrangements satisfactory to the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the bank in August 1981. Section 3.04. The Bank Borrower and the Borrower hereby agree that the obligations set forth in Sections 9.04Association shall, 9.05not later than December 31, 9.06, 9.07, 9.08 and 9.09 1993 undertake a comprehensive mid-term review of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out, or caused to be carried out, by (i) the State in respect of the State Project, and by.

Execution of the Project. (a) The Borrower declares its commitment to the objectives of the Project project as set forth in Schedule 2 to this Agreement, and and, to this end end, shall cause: (i) SDR to coordinate (at the federal level) and issue guidelines related to the carrying out of the Program, to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely manner; (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, to carry out the credit program included in Parts D and I of Project or cause the Project; and (iv) EMBRAPA Project to carry out Part H of the Projectbe carried out, all with due diligence and efficiency, efficiency and in accordance conformity with appropriate administrativepublic health practices, financial and agricultural practicesshall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without any limitation or restriction upon any of its other obligations under the Loan Development Credit Agreement, the Borrower shall cause the State, under contractual arrangements satisfactory to the Bank, Provinces to perform in accordance with the provisions of the Project Agreement, Agreement all the respective obligations of the State Provinces therein set forth, shall take or and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable the State Provinces to perform its such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (c) Without limitation to its obligations under paragraph (a) above, the Borrower shall: (i) take all action as shall be required to regulate, in a manner satisfactory to the Bank, the funding procedures which will ensure that the Executing Entities shall have the funds required for carrying out the Project available to them in a timely manner; and (ii) provide or cause SUDENE to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h) of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H of the Project and under the State Project, respectively, as provided in each POA. (d) The Borrower shall make the proceeds of the Loan allocated respectively: (i) for purposes of the State Project available to the State; and (ii) for Part H of the Project available to EMBRAPA; under arrangements satisfactory to the Bank. (e) The Borrower, through DTN, shall enter into agreements, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions of Schedule 5 to this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program; (B) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure part of the proceeds of the Loan, Credit available to the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject in such manner as to: (i) protect the interest of the Bank and the Borrower; (ii) enable the Borrower to comply with its obligations under this Agreement; and (iii) achieve Provinces for the purposes of the Project. (f) Unless the Bank shall otherwise agree, the Borrower shall not amend, abrogate or waive the provisions their respective parts of the MCR applicable to the Program. (g) Without limitation to its other obligations Project under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on procedures and terms and conditions satisfactory to the Bank, not later than six months after the date of the Amending Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive or fail to enforce any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendationsAssociation. Section 3.02. Except as the Bank Association shall otherwise agree, procurement of the goods, works and consultants’ services required for the carrying out of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan Credit shall be made in accordance with governed by the provisions of the Schedule 2 to the Project Agreement. (a) The Borrower shall: (i) furnish and the Association shall annually prior to the Bank by October 31 beginning of each fiscal year exchange views on the progress achieved in each year, for its review and commentcarrying out the Policy Guidelines, the proposed POA Regional Health Plans and budget for the Project and for Provincial components under the Northeast Rural Development Program for the following fiscal year; (ii) afford the Bank a reasonable opportunity to comment on any modifications the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budgetProject. (b) In order Prior to assist the EMBRAPA in carrying out Part H each such exchange of the Projectviews, the Borrower shall cause EMBRAPA, under contractual arrangements satisfactory furnish to the BankAssociation for its review and comment a progress report, in such detail as the Association shall reasonably request including the progress in carrying out the Regional Health Plans and the Provincial components according to employ consultants whose qualifications, experience and terms and conditions of employment indicators agreed with the Association. (c) The Borrower shall be satisfactory to the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis ensure that during it’s fiscal year disbursements by each of the "Guidelines for Implementing Regions and the Use Provinces out of Consultants the proceeds of the Credit will be made only after the broad parameters of such fiscal year’s program and budget under each of the Regional Health Plans and the Provincial components shall have been reviewed and found generally acceptable by World Bank Borrowers both MOPH and by the World Bank as Executing Agency" published by the bank in August 1981Association. Section 3.04. The Bank Borrower and the Borrower Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07, 9.07 and 9.08 and 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of relevant part of the Project shall be carried out, or caused out by each of the Provinces pursuant to Section 2.03 of the Project Agreement. Section 3.05. The Borrower shall cause the Project to be carried outout under an Implementation Arrangement among the Implementing Regions, by (i) the State in respect of Provinces and MOPH, with terms and conditions acceptable to the State Project, Association. Section 3.06. The Borrower shall maintain the World Bank Loan Office within MOPH with functions and bystaffing acceptable to the Association.

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

Execution of the Project. (a) The Borrower BEA declares its commitment to the objectives of the Project as set forth in Schedule 2 to this the Loan Agreement, and and, to this end shall cause: end: (i) SDR to coordinate (at the federal level) shall carry out Parts A and issue guidelines related to the carrying out B of the Program, to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely manner; (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, to carry out the credit program included in Parts D and I of the Project; and (iv) EMBRAPA to carry out Part H of the Project, all Project with due diligence and efficiency, efficiency and in accordance conformity with appropriate administrative, and financial practices, and agricultural practices. (b) Without any limitation or restriction upon any of its other obligations under the Loan Agreementshall provide, the Borrower shall cause the State, under contractual arrangements satisfactory to the Bank, to perform in accordance with the provisions of the Project Agreement, all the respective obligations of the State therein set forth, shall take or cause to be taken all actionprovided, including promptly as needed, the provision of funds, facilities, services and other resources, necessary or appropriate to enable the State to perform its obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (c) Without limitation to its obligations under paragraph (a) above, the Borrower shall: (i) take all action as shall be required to regulate, in a manner satisfactory to the Bank, the funding procedures which will ensure that the Executing Entities shall have the funds resources required for carrying out the Project available to them in a timely manner; and (ii) provide or cause SUDENE to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h) of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H of the Project and under the State Project, respectively, as provided in each POA. (d) The Borrower shall make the proceeds of the Loan allocated respectively: (i) for purposes of the State Project available to the State; and (ii) for Part H of the Project available to EMBRAPA; under arrangements satisfactory to the Bank. (e) The Borrower, through DTN, shall enter into agreements, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions of Schedule 5 to this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program; (B) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject in such manner as to: (i) protect the interest of the Bank and the Borrower; (ii) enable the Borrower to comply with its obligations under this Agreement; assist, as needed, Goskomstat in respect of procurement and (iii) achieve the purposes disbursement for Part C of the Project. (fb) Unless Without limitation upon the provisions of paragraph (a) of this Section and except as the Bank and the BEA shall otherwise agree, the Borrower BEA shall not amend, abrogate or waive the provisions of the MCR applicable to the Program. (g) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms carry out Parts A and conditions satisfactory to the Bank, not later than six months after the date of the Amending Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H B of the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive or fail to enforce any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory the Operations Manual and the Implementation Program set forth in the Schedule to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendationsthis Agreement. Section 3.022.02. Except as the Bank shall otherwise agree, procurement of the goods, works goods and consultants’ services required for the carrying out of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan shall be made in accordance with governed by the provisions of Schedule 2 4 to the Project Loan Agreement. (a) The Borrower shall: (i) furnish to BEA shall carry out the Bank by October 31 in each year, for its review and comment, the proposed POA and budget for the Project and for the Northeast Rural Development Program for the following fiscal year; (ii) afford the Bank a reasonable opportunity to comment on any modifications the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budget. (b) In order to assist the EMBRAPA in carrying out Part H of the Project, the Borrower shall cause EMBRAPA, under contractual arrangements satisfactory to the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the bank in August 1981. Section 3.04. The Bank and the Borrower hereby agree that the obligations obliga tions set forth in Sections 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out, or caused to be carried out, by (i) the State in respect of the State Project Agreement. (b) Without limitation upon the provisions of paragraph (a) of this Section, the BEA shall: (i) prepare, on the basis of guidelines acceptable to the Bank, and furnish to the Bank not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Bank and the BEA, a plan for the future operation of Parts A and B of the Project; (ii) afford the Bank a reasonable opportunity to exchange views with the BEA on said plan; and (iii) thereafter, carry out said plan with due diligence and efficiency and in accordance with appropriate practices, taking into account the Bank’s comments thereon. Section 2.04. The BEA shall duly perform all its obligations under the Subsidiary Agreement. Except as the Bank shall otherwise agree, the BEA shall not take or concur in any action which would have the effect of amending, abrogating, assigning or waiving the Subsidiary Agreement or any provision thereof. (a) The BEA shall promptly inform the Bank of any condition which interferes or threatens to interfere with the progress of the Project, the accomplishment of the purposes of Loan, or the performance by the BEA of its obligations under this Agreement. (b) The BEA shall promptly inform the Bank of any condition which interferes or threatens to interfere with the progress of the Project, the accomplishment of the purposes of the Loan, or the performance by the BEA of its obligations under this Agreement and byunder the Subsidiary Agreement.

Execution of the Project. (a) The Borrower Recipient declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement and, to this end, without any limitation or restriction upon any of its other obligations under this Agreement, shall carry out through DOLIDAR, and to this end shall cause: (i) SDR to coordinate (at the federal level) and issue guidelines related to the carrying out of the Program, to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely manner; (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, cause each DDC to carry out out, the credit program included in Parts D and I of the Project; and (iv) EMBRAPA to carry out Part H of the Project, all Project with due diligence and efficiency, efficiency and in accordance conformity with appropriate administrative, financial financial, engineering, transport, environmental and agricultural social practices, and shall provide, and cause each DDC to provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Recipient and the Association shall otherwise agree, the Recipient shall carry out through DOLIDAR, and cause each DDC to carry out, the Project in accordance with the implementation program set forth in Schedule 4 to this Agreement. (c) Without any limitation or restriction upon any of its other obligations under the Loan this Agreement, the Borrower Recipient shall cause the Stateexecute with each DDC a Memorandum of Understanding, under contractual arrangements satisfactory to the BankAssociation and including the provisions set forth in Schedule 5 to this Agreement, and promptly upon such execution furnish a copy thereof to the Association, before such DDC participates in the carrying out of any activities under the Project. If any provision of any such Memorandum of Understanding is inconsistent with a provision of this Agreement, the provision of this Agreement shall govern. (d) Without any limitation or restriction upon any of its other obligations under this Agreement, the Recipient shall cause each DDC to perform in accordance with the provisions of the Project Agreement, applicable Memorandum of Understanding all the respective obligations of the State such DDC therein set forth, shall take or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable the State such DDC to perform its such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (ce) Without limitation to its obligations under paragraph (a) above, the Borrower shall: (i) take all action as The Recipient shall be required to regulate, in a manner satisfactory to the Bank, the funding procedures which will ensure that the Executing Entities shall have the funds required for carrying out the Project make available to them each DDC under its Memorandum of Understanding, as a grant and in a timely manner, (i) part of the proceeds of the Grant; and (ii) provide or cause SUDENE additional funds from the Recipient’s own resources if and as required for such DDC to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h) of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the carry out its activities under Part H of the Project and under the State Project, respectively, as provided in each POA. (d) The Borrower shall make the proceeds of the Loan allocated respectively: (i) for purposes of the State Project available to the State; and (ii) for Part H of the Project available to EMBRAPA; under arrangements satisfactory to the Bank. (e) The Borrower, through DTN, shall enter into agreements, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions of Schedule 5 to this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program; (B) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject in such manner as to: (i) protect the interest of the Bank and the Borrower; (ii) enable the Borrower to comply with its obligations under this Agreement; and (iii) achieve the purposes of the Project. (fa) Unless the Bank shall otherwise agree, the Borrower shall not amend, abrogate or waive the provisions of the MCR applicable to the Program. (g) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms and conditions satisfactory to the Bank, not later than six months after the date of the Amending Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive or fail to enforce any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendations. Section 3.02. Except as the Bank Association shall otherwise agree, procurement of the goods, works and consultants’ services required for the carrying out of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan Grant shall be made in accordance with governed by the provisions of Schedule 2 3 to this Agreement, as said provisions may be further elaborated in the Project Agreement. (a) The Borrower shall: (i) furnish to the Bank by October 31 in each year, for its review and comment, the proposed POA and budget for the Project and for the Northeast Rural Development Program for the following fiscal year; (ii) afford the Bank a reasonable opportunity to comment on any modifications the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budgetProcurement Plan. (b) In order to assist the EMBRAPA in carrying out Part H of the ProjectThe Recipient shall, the Borrower and shall cause EMBRAPAeach DDC to, under contractual arrangements satisfactory to update the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected Procurement Plan in accordance with principles and procedures satisfactory guidelines acceptable to the Bank Association, and furnish such update to the Association not later than nine (9) months after the date of the preceding Procurement Plan, for the Association’s approval. Section 3.03. For the purposes of Section 9.06 of the General Conditions and without limitation thereto, the Recipient shall: prepare, on the basis of guidelines acceptable to the "Guidelines Association, and furnish to the Association not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the bank in August 1981. Section 3.04. The Bank Recipient and the Borrower hereby agree that Association, a plan designed to ensure the obligations set forth in Sections 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09 continued achievement of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out, or caused to be carried out, by (i) the State in respect of the State Project, and by’s objectives; and

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

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

Execution of the Project. (a) The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and and, to this end shall causeshall: (i) SDR to coordinate (at the federal level) and issue guidelines related to the carrying through ENBPG, carry out Part A.3 of the Program, to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely mannerProject; (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, to carry out the credit program included in Parts D and I of the Project; and (iv) EMBRAPA to carry out Part H of the Project, all with due diligence and efficiency, in accordance with appropriate administrative, financial and agricultural practices. (b) Without any limitation or restriction upon any of its other obligations under the Loan Agreement, the Borrower shall cause the State, under contractual arrangements satisfactory to the Bank, GRA to perform in accordance with the provisions of the GRA Project Agreement, Agreement all of the respective obligations of the State GRA therein set forth, shall ; (iii) cause ELCOM and GRA each to perform in accordance with the provisions of the ELCOM MOA all of the obligations of ELCOM and GRA therein set forth; and (iv) take or and cause to be taken all action, including the provision of funds, facilities, services and other resources, resources necessary or appropriate to enable the State GRA and ELCOM to perform its their respective obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) The Borrower shall make available the proceeds of the Loan to GRA on a grant basis under a financing agreement to be entered into between the Borrower and GRA, under terms and conditions satisfactory to the Bank. (c) Without limitation The Borrower shall cause ELCOM and GRA to its obligations under paragraph (a) aboveenter into an agreement, the Borrower shall: (i) take all action as shall be required to regulate, in a manner satisfactory to the Bank, to provide the funding procedures which will ensure that the Executing Entities shall have the funds required for carrying out supply of electricity to and within the Project available to them in a timely manner; and (ii) provide or cause SUDENE to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h) of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H of the Project and under the State Project, respectively, as provided in each POAarea. (d) The Borrower shall make exercise its rights under the proceeds GRA Financing Agreement in such manner as to protect the interests of the Loan allocated respectively: (i) for purposes of the State Project available to the State; and (ii) for Part H of the Project available to EMBRAPA; under arrangements satisfactory to the Bank. (e) The Borrower, through DTN, shall enter into agreements, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions of Schedule 5 to this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program; (B) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project Borrower and the preceding month’s lending performance of Bank and to accomplish the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds purposes of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject in such manner except as to: (i) protect the interest of the Bank and the Borrower; (ii) enable the Borrower to comply with its obligations under this Agreement; and (iii) achieve the purposes of the Project. (f) Unless the Bank shall otherwise agree, the Borrower shall not assign, amend, abrogate or waive the GRA Financing Agreement or any provisions of the MCR applicable to the Program. (g) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms and conditions satisfactory to the Bank, not later than six months after the date of the Amending Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive or fail to enforce any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendationsthereof. Section 3.02. Except as the Bank shall otherwise agree, procurement of the goods, works works, and consultants’ services required for the carrying out of the Project assigned to EMBRAPA (except Part A.3 thereof) and to be financed out of the proceeds of the Loan shall be made in accordance with governed by the provisions of Schedule 2 to the Project Agreement. (a) Section 3.03. The Borrower shall: (i) furnish to and the Bank by October 31 in each year, for its review and comment, the proposed POA and budget for the Project and for the Northeast Rural Development Program for the following fiscal year; (ii) afford the Bank a reasonable opportunity to comment on any modifications the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budget. (b) In order to assist the EMBRAPA in carrying out Part H of the Project, the Borrower shall cause EMBRAPA, under contractual arrangements satisfactory to the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the bank in August 1981. Section 3.04. The Bank and the Borrower hereby agree that the obligations set forth in Sections 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out, or caused to be carried out, by (i) the State in respect of the State Project (except Part A.3 thereof). Section 3.04. Without limitation upon the provisions of paragraph (a) of Section 3.01 of this Agreement, the Borrower shall on each calendar quarter, commencing on October 1, 1999 and thereafter, deposit into the Executing Agency Trust Account in Kina, amounts sufficient to cover counterpart funding for estimated disbursements under the Project for the succeeding three month period; provided, however, that the first deposit to be done on October 1, 1999, shall cover the total expenditures to be incurred by GRA on account of the Project during the calendar quarter ending on December 31, 1999. Section 3.05. The Borrower shall establish and, thereafter, maintain at all times during the implementation of the Project, a Steering Committee chaired by GRA and bywith representatives of ENBPG, the National Department of Transport and Works, the National Water Board, ELCOM, the Harbours Board, the National Broadcasting Corporation, Cocoa and Coconut Research Institute, and the National Agricultural Research Institute, assigned with such functions and responsibilities, satisfactory to the Bank, as shall be required for the overall coordination and oversight of Project implementation. The Steering Committee shall meet quarterly to review progress reports and to resolve any issues arising in the implementation of the Project. Section 3.06. The Borrower shall ensure that the Affected Persons in the relocation site located at Vunakambi therein shall be compensated, resettled and rehabilitated in accordance with the Vunakambi Resettlement Action Plan. In the unforeseeable event that additional resettlement sites under Part A.1 of the Project may give rise to Affected Persons, the Borrower shall, through ENBPG, ensure that the Affected Persons shall be compensated, resettled and rehabilitated in accordance with action plans satisfactory to the Bank prepared in accordance with the Policy for Relocation and Compensation. For such purposes, the Borrower shall, through ENBPG, prepare and furnish to the Bank for its concurrence such action plans, and, thereafter, carry the said action plans as so approved. Section 3.07. The Borrower shall take all such action as shall be necessary to adequately maintain, through ENBPG, the road between Rabaul Port and Kokopo Town being restored under Part B.1 of the Project, including provision of annual budgetary allocations thereof based on the estimated funding levels furnished by ENBPG to the Borrower’s Department of Treasury and Planning by not later than September 30 of each calendar year, commencing on September 30, 2000; provided, further, the said budgetary funding shall be made available by the Borrower to ENBPG on a quarterly basis.

Execution of the Project. (a) Section 3.01. The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and and, to this end end, shall cause: (i) SDR to coordinate (at the federal level) and issue guidelines related to the carrying out of the Program, to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely manner; (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, to carry out the credit program included in Parts D and I of Project through the Project; and (iv) EMBRAPA to carry out Part H of the Project, all MOH with due diligence and efficiency, efficiency and in accordance conformity with appropriate financial, economic, administrative, financial health care and agricultural environmental practices. (b) Without any limitation or restriction upon any of its other obligations under the Loan Agreement, and shall provide, promptly as needed, the Borrower shall cause the State, under contractual arrangements satisfactory to the Bank, to perform in accordance with the provisions of the Project Agreement, all the respective obligations of the State therein set forth, shall take or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable resources required for the State to perform its obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performanceProject. (c) Without limitation Section 3.02. In order to its obligations under paragraph (a) aboveensure the proper implementation of the Project, the Borrower shall: (i) take all action as shall be required to regulate, in a manner satisfactory to the Bank, the funding procedures which will ensure that the Executing Entities shall have the funds required for carrying out the Project available to them in a timely manner; and (ii) provide or cause SUDENE to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h) of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H of the Project and under the State Project, respectively, as provided in each POA. (d) The Borrower shall make the proceeds of the Loan allocated respectively: (ia) for purposes Establish and thereafter maintain with functions, membership and terms of reference all satisfactory to both the Bank and the Borrower, a Health Sector Reform Management Board (the CGRH) to be responsible for, inter alia, monitoring the implementation of the State Project available to the State; institutional and (ii) for Part H financial management restructuring of the Project available to EMBRAPA; under arrangements satisfactory to the Bank. (e) The BorrowerHospitals, through DTN, shall enter into agreements, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions of Schedule 5 to this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program; (B) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject in such manner as to: (i) protect Establish and thereafter maintain within the interest MOH, in a form and with functions, resources and terms of reference all satisfactory to both the Bank and the Borrower; , a Project Coordina- tion Unit (the PCU) to assist the CGRH in carrying out its functions and, in particular, to be responsible for, inter alia, supervising, coordinating and administering the overall implementation of the Project, and (ii) enable ensure that the PCU is at all times staffed with personnel, including a Director, in numbers and with qualifications, experience and terms of reference all satisfactory to both the Bank and the Borrower. Section 3.03. The Borrower shall take all action necessary to ensure that: (a) Its government shall prepare, on the basis of the draft law previously furnished to the Bank by the Borrower under cover of its letter dated March 25, 1991, and present to comply its National Assembly for enactment, a proposed law authorizing the creation of public health establishments in the form of independent public enterprises with its obligations under this Agreement; legal, financial, administrative and managerial autonomy; (iiib) achieve Immediately upon the purposes enactment of the Project. (f) Unless the Bank shall otherwise agree, the Borrower shall not amend, abrogate or waive the provisions of the MCR applicable to the Program. (g) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending law referred to in paragraph (ea) aboveof this Section, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms and conditions satisfactory to the Bank, not later than six months after the date of the Amending AgreementDecember 31, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive or fail to enforce any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE1992, the Program, legal personality of each and every Hospital set forth in accordance with terms Part B of reference satisfactory Schedule 6 to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendations. Section 3.02. Except as the Bank shall otherwise agree, procurement of the goods, works and services required for the carrying out of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan this Agreement shall be made duly converted to that of a public health establishment and the statutes of each of said Hospital, reflecting its new legal personality and the appointment of its general manager, shall be duly issued, all in accordance with the provisions of Schedule 2 said law; (c) Immediately upon the enactment of the law referred to the Project Agreement. in paragraph (a) The Borrower shall: (i) furnish to the Bank by October 31 in each yearof this Section, for its review and commentnot later than December 31, 1993, the proposed POA legal personality of each and budget for every Hospital set forth in Part C of Schedule 6 to this Agreement shall be duly converted to that of a public health establishment and the Project statutes of each of said Hospital, reflecting its new legal personality and for the Northeast Rural Development Program for appointment of its general manager, shall be duly issued, all in accordance with the following fiscal yearprovisions of said law; and (iid) afford Immediately upon the Bank enactment of the law referred to in paragraph (a) of this Section, and not later than December 31, 1994, the legal personality of each and every Hospital set forth in Part D of Schedule 6 to this Agreement shall be duly converted to that of a reasonable opportunity to comment on any modifications public health establishment and the Borrower may intend to introduce to such proposed POA statutes of each of said Hospital, reflecting its new legal personality and budget; and (iii) furnish to the Bank by January 1 appointment of its general manager, shall be duly issued, all in each year accordance with the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version provisions of such budgetsaid law. (b) Section 3.04. In order to assist achieve the EMBRAPA in carrying out Part H objectives of the Project, the Borrower shall cause EMBRAPAtake all action necessary to ensure, under contractual arrangements after the conversion of the legal personality of the Hospitals into that of public health establishments, in accordance with the provisions of Sections 3.03 and 5.01 (b) of this Agreement, that their legal personality, statutes and basic structures and functions shall be at all times maintained. Section 3.05. Not later than September 30, 1991, the Borrower shall take all action necessary to ensure that: (a) A Center for Health Information (the CIS), with func- tions, resources and terms of reference all satisfactory to both the BankBank and the Borrower, is duly established, possessing the legal personality of a public establishment to employ consultants whose be responsible for, inter alia, managing, standardizing and coordinating the development, installation and maintenance of a computer network system for the Hospitals; and (b) A director is appointed to head the CIS, possessing the requisite qualifications, experience and terms and conditions of employment reference. Section 3.06. (a) Not later than September 30, 1992, the Borrower shall be satisfactory furnish to the Bank, such consultants to be selected in accordance with principles for its review and procedures satisfactory to comments, the Bank on the basis of the "Guidelines Borrower’s medium-term plan for the Use restructuring and further development of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the bank in August 1981. Section 3.04. The Bank and the Borrower hereby agree that the obligations set forth in Sections 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out, or caused to be carried out, by (i) the State in respect of the State Project, and byits public hospital sector; and

Execution of the Project. (a) The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and and, to this end end, shall cause: (i) SDR to coordinate (at the federal level) carry out Parts A.1, B, C, D and issue guidelines related to the carrying out E of the ProgramProject through Public Project Entities and such other Public Project Entities as may be designated by the Borrower from time to time, to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely manner; (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, to carry out the credit program included in Parts D and I of the Project; and (iv) EMBRAPA to carry out Part H of the Project, all with due diligence and efficiency, efficiency and in accordance conformity with appropriate administrative, financial financial, agricultural, engineering, accounting, information technology and agricultural environmental standards and practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without any limitation or restriction upon any For the purpose of its other obligations under carrying out Parts A.1, B, C, D and E of the Loan AgreementProject, the Borrower shall cause make available to each of the Statedesignated Public Project Entities the funds, facilities, services and other resources required for carrying out of the Project, including the corresponding portions of the proceeds of the Loan, under contractual or other arrangements satisfactory to the bank. (c) Without limitation upon the provisions of paragraph (a) of this Section, and except as the Borrower and the Bank shall otherwise agree, the Borrower shall carry out the Project in accordance with the Implementation Program set forth in Schedule 5 to this Agreement. (a) For the purpose of carrying out Part A.2 of the Project, the Borrower shall: (i) select, in accordance with criteria satisfactory to the Bank, an Agency Bank capable of administering the Sub-loans; (ii) make available to each Private Enterprise, out of the proceeds of the Loan allocated from time to time to Category (3) of the table set forth in paragraph 1 of Schedule 1 to this Agreement, the amount of financing required for its respective Private Sub-project under a Subsidiary Loan Agreement to be entered into between the Borrower and the Private Enterprise, under terms and conditions satisfactory to the Bank, which shall include, without limitation, the terms and conditions set forth in Part C of Schedule 7 to this Agreement; and (iii) cause the Private Enterprises to perform in accordance with the provisions of the Project Agreementrespective Subsidiary Loan Agreements, all the respective obligations of set forth therein. (b) Unless the State therein Bank shall otherwise agree, the Borrower shall select and approve the Private Sub-projects in accordance with the procedures and eligibility criteria set forth, shall take forth or cause referred to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate in Schedule 7 to enable the State to perform its obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performancethis Agreement. (c) Without limitation to its obligations under paragraph (a) above, the Borrower shall: (i) take all action as shall be required to regulate, in a manner satisfactory to the Bank, the funding procedures which will ensure that the Executing Entities shall have the funds required for carrying out the Project available to them in a timely manner; and (ii) provide or cause SUDENE to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h) of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H of the Project and under the State Project, respectively, as provided in each POA. (d) The Borrower shall make the proceeds of the Loan allocated respectively: (i) for purposes of the State Project available to the State; and (ii) for Part H of the Project available to EMBRAPA; under arrangements satisfactory to the Bank. (e) The Borrower, through DTN, shall enter into agreements, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions of Schedule 5 to this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program; (B) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject the Sub-loans in such manner as to: (i) protect the interest interests of the Bank and the Borrower; (ii) enable the Borrower to comply with its obligations under this Agreement; and (iii) achieve the purposes of the Project. (f) Unless Section 3.03. In order to facilitate the Bank shall otherwise agreeefficient carrying out of the Project, the Borrower shall not amendestablish, abrogate or waive the provisions of the MCR applicable to the Program. (g) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds cause to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement established, and thereafter maintain, with SUDENEstaff and other resources, on terms and conditions satisfactory to the Bank, not later than six months after the date of the Amending Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive or fail to enforce any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with under terms of reference satisfactory to the Bank: (a) a PIU within GOZKOMPROGNOZSTAT responsible for, inter alia, various administrative functions relating to the day-to- day coordination and execution of the Project; and (b) CIUs within each Public Project Entity responsible for carrying out Parts A.1, B, C, D and E of the Project. Section 3.04. The Borrower shall: (a) carry out all studies included in the Project under terms of reference acceptable to the Bank, which, when applicable, shall include specific programs or plans of action to meet the objectives of the Project; (b) promptly after the completion of each study, furnish to the Bank a copy of its findings and recommendations including such programs or plans of action; and (c) afford the Bank a reasonable opportunity to comment on findings, recommendations and programs or plans of action. Section 3.05. Without limitation to the provisions of Section 3.01 of this Agreement, the Borrower shall for purposes of the Project: (a) open and maintain in a commercial bank, in the name of the PIU, an account (the Project Account), in local currency, to be used for financing the expenditures required to be made by Public Project Entities in conjunction with the implementation of the Project, the establishment and maintenance of the necessary facilities for the carrying out of the Project, and the coordination of Project activities and shall, immediately thereafterfor this purpose, if recommended make an initial deposit in such an Account in an amount equivalent to $500,000; (b) for each fiscal year during the execution of the Project, make appropriate budgetary allocations to replenish such Project Account on a quarterly basis, and ensure availability of an amount equivalent to $500,000 at the beginning of each quarter for the financing of expenditures by such reviewPublic Project Entities during the following fiscal year, amend in amounts satisfactory to the Program, taking into account such recommendationsBank. Section 3.023.06. Except as the Bank shall otherwise agree, procurement of the goods, works and consultants’ services required for the carrying out of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan shall be made in accordance with governed by the provisions of Schedule 2 4 to the Project this Agreement. (a) The Borrower shall: (i) furnish to the Bank by October 31 in each year, for its review and comment, the proposed POA and budget for the Project and for the Northeast Rural Development Program for the following fiscal year; (ii) afford the Bank a reasonable opportunity to comment on any modifications the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budget. (b) In order to assist the EMBRAPA in carrying out Part H of the Project, the Borrower shall cause EMBRAPA, under contractual arrangements satisfactory to the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the bank in August 1981. Section 3.04. The Bank and the Borrower hereby agree that the obligations set forth in Sections 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out, or caused to be carried out, by (i) the State in respect of the State Project, and by

Execution of the Project. (a) The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and and, to this end end, shall cause: (i) SDR to coordinate (at the federal level) and issue guidelines related to the carrying out of the Program, to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely manner; (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, to carry out the credit program included in Parts D and I of Project or cause the Project; and (iv) EMBRAPA Project to carry be carried out Part H of the Project, all with due diligence and efficiency, efficiency and in accordance conformity with appropriate administrative, financial and agricultural engineering practices. (b) Without any limitation or restriction upon any of its other obligations under the Loan Agreement, and shall provide, promptly as needed, the Borrower shall cause the State, under contractual arrangements satisfactory to the Bank, to perform in accordance with the provisions of the Project Agreement, all the respective obligations of the State therein set forth, shall take or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable resources required for the State to perform its obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performanceProject. (cb) Without limitation to its obligations under upon the provisions of paragraph (a) aboveof this Section and except as the Borrower and the Bank shall otherwise agree, the Borrower shall: (i) take all action as shall be required to regulate, in a manner satisfactory to the Bank, the funding procedures which will ensure that the Executing Entities shall have the funds required for carrying carry out the Project available to them in a timely manner; and (ii) provide or cause SUDENE to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h) of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H of the Project and under the State Project, respectively, as provided in each POA. (d) The Borrower shall make the proceeds of the Loan allocated respectively: (i) for purposes of the State Project available to the State; and (ii) for Part H of the Project available to EMBRAPA; under arrangements satisfactory to the Bank. (e) The Borrower, through DTN, shall enter into agreements, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of the Project be carried out in accordance with: Agreement; and 1. with the terms and conditions Implementation Program set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions of Schedule 5 to this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program;. (Ba) allocate on The Borrower shall enter into a priority basis, adequate funds Participation Agreement with each Participating State for the financing purposes of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate enabling such Participating State to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank participate in the carrying out of the credit program included Project under terms and conditions which shall have been approved by the Bank, which shall include, inter alia, those set forth or referred to in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; andSchedule 6 to this Agreement. (Fb) The Borrower shall exercise its rights in relation to under each Subproject Partici- pation Agreement in such manner as to: (i) to protect the interest interests of the Bank Borrower and the Borrower; (ii) enable the Borrower to Bank, comply with its obligations under this Agreement; , and (iii) achieve accomplish the purposes of the Project. (f) Unless Loan, and except as the Bank shall otherwise agree, the Borrower shall not assign, amend, abrogate or waive the provisions of the MCR applicable to the Program. (g) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms and conditions satisfactory to the Bank, not later than six months after the date of the Amending Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive Participation Agreement or fail to enforce any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendationsthereof. Section 3.023.03. Except as the Bank shall otherwise agree, procurement procure- ment of the goods, works and consultants’ services required for the carrying out of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan shall be made in accordance with governed by the provisions of Schedule 2 4 to the Project this Agreement. Section 3.04. For the purposes of Section 9.08 of the General Conditions and without limitation thereto, the Borrower shall: (a) The Borrower shall: (i) prepare, on the basis of guidelines acceptable to the Bank, and furnish to the Bank by October 31 in each yearnot later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Bank, for its review and comment, a plan designed to ensure the proposed POA and budget for continued achievement of the Project and for the Northeast Rural Development Program for the following fiscal yearProject’s objectives; and (iib) afford the Bank a reasonable opportunity to comment on any modifications exchange views with the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budgetsaid plan. (b) In order to assist the EMBRAPA in carrying out Part H of the Project, the Borrower shall cause EMBRAPA, under contractual arrangements satisfactory to the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the bank in August 1981. Section 3.04. The Bank and the Borrower hereby agree that the obligations set forth in Sections 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out, or caused to be carried out, by (i) the State in respect of the State Project, and by

Execution of the Project. (a) Section 3.01. The Borrower declares its commitment to the objectives objective of the Project as set forth in Schedule 2 to this Agreement, and and, to this end shall causeend, shall: (ia) SDR to coordinate through ADAP, carry out Parts A.1, A.2, A.3 (at the federal level) a), A.4, B.5, C.1, C.2, C.4, C.5 and issue guidelines related to the carrying out D of the ProgramProject; (b) through AFAP, to propose annual budgets for such Program carry out Parts B.1, B.2, B.3 and to take all actions necessary to ensure the availability B.4 of the counterpart funds for the carrying out of such Program in a timely mannerProject; (iic) SUDENE to coordinate (at the regional level)through ADAP, supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, cause Urban Community Associations to carry out the credit program included in Parts D and I Part A.3 (b) of the Project; and (ivd) EMBRAPA through ADAP, cause Rural Community Associations and Rural Producers’ Associations to carry out Part H C.3 of the Project, all with due diligence and efficiency, efficiency and in accordance conformity with appropriate administrative, financial financial, environmental, social and agricultural sustainable urban and rural development practices. (b) Without any limitation or restriction upon any of its other obligations under the Loan Agreement, and shall provide, promptly as needed, the Borrower shall cause the State, under contractual arrangements satisfactory to the Bank, to perform in accordance with the provisions of the Project Agreement, all the respective obligations of the State therein set forth, shall take or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable the State to perform its obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (c) Without limitation to its obligations under paragraph (a) above, the Borrower shall: (i) take all action as shall be required to regulate, in a manner satisfactory to the Bank, the funding procedures which will ensure that the Executing Entities shall have the funds resources required for carrying out the Project available to them in a timely manner; and (ii) provide or cause SUDENE to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h) of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H of the Project and under the State Project, respectively, as provided in each POA. (d) The Borrower shall make the proceeds of the Loan allocated respectively: (i) for purposes of the State Project available to the State; and (ii) for Part H of the Project available to EMBRAPA; under arrangements satisfactory to the Bank. (e) The Borrower, through DTN, shall enter into agreements, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions of Schedule 5 to this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program; (B) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject in such manner as to: (i) protect the interest of the Bank and the Borrower; (ii) enable the Borrower to comply with its obligations under this Agreement; and (iii) achieve the purposes of the Project. (fa) Unless the Bank shall otherwise agree, the Borrower shall not amend, abrogate or waive the provisions of the MCR applicable to the Program. (g) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms and conditions satisfactory to the Bank, not later than six months after the date of the Amending Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive or fail to enforce any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendations. Section 3.02. Except as the Bank shall otherwise agree, procurement of the goods, works and services required for the carrying out of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan shall be made in accordance with governed by the provisions of Schedule 2 4 to this Agreement, as said provisions may be further elaborated in the Project AgreementProcurement Plan. (ab) The Borrower shall update the Procurement Plan in accordance with guidelines acceptable to the Bank, and furnish such update to the Bank not later than 12 months after the date of the preceding Procurement Plan, for the Bank’s approval. (c) The Borrower shall: (i) through an independent consultant, under terms of reference satisfactory to the Bank, carry out, at the end of the first year of execution of Subprojects, and every twelve-month period thereafter, a review of the compliance with the provisions of this Agreement of a sample of cases of procurement of goods and works carried out under the Subprojects (including a review of the relevant documentation) in the twelve-month period preceding the date of each such review; and (ii) promptly thereafter, furnish to the Bank by October 31 in each yearthe report of such review. (d) The Borrower shall: (i) submit to the Bank, for its prior review and commentapproval, all proposed terms of reference for consultants’ services to be financed out of the proceeds of the Loan; and (ii) in the employment of consultants’ services, use the terms of reference approved by the Bank. Section 3.03. Without limitation to the provisions of Section 3.01 of this Agreement, the Borrower shall carry out, and shall cause to be carried out, the Project in accordance with the provisions and/or recommendations of: (a) the relevant POA; (b) the Special Groups Inclusion Strategy; (c) the Environmental Management Plan; and (d) a manual, satisfactory to the Bank (the Operational Manual), which shall contain the policies and procedures for the carrying out of the Project, including, inter alia, the procedures for preparation, prioritization and approval of Subprojects, the criteria for eligibility of Associations to participate in the Project, the arrangements for collaboration among ADAP, the Associations and Municipal Development Fora in the carrying out of the Project, the model agreements to be entered into between ADAP and any Association governing such collaboration, the carrying out of Urban Subprojects and Rural Subprojects and the transfer of funds from ADAP to the Associations for the financing of such Subprojects, the procurement procedures to be followed under the Project (including model documents), the Project’s financial management arrangements, the roles and responsibilities of the PC, PCU and Municipal Development Fora under the Project, the composition of the PC, the environment-related provisions applicable to Project activities, the procedures, terms and conditions for the financing of AFAP Subprojects under the AMASOL, the criteria for selection of Beneficiaries of Subloans under the AMASOL, the arrangements between AFAP and ADAP for the collaboration between such agencies in the carrying out of the Project, and the indicators to be used for Project monitoring and evaluation. In case of any inconsistency between a provision of the Operational Manual and this Agreement, the provision of this Agreement will prevail. (a) The Borrower, through ADAP, shall maintain during the execution of the Project a unit within ADAP for purposes of coordinating and managing the carrying out of the Project (the PCU), such unit to have a structure and functions satisfactory to the Bank, and qualified staff in adequate numbers as required to carry out its responsibilities under the Project. (b) The Borrower, through ADAP, shall employ, as provided in Section II of Schedule 4 to this Agreement, a consulting firm to assist and train the PCU in carrying out its functions (especially in the areas of procurement and financial management and in the operation of the MIS), such firm to be employed until such time as the PCU shall be able, in the opinion of the Bank and the Borrower, to carry out its functions without any assistance. (c) The Borrower shall maintain, during the execution of the Project, a Project Council (the PC) to be responsible for: (i) approving Urban Subprojects and Rural Subprojects; (ii) facilitating inter-institutional relations under the Project; (iii) approving the POAs; and (iv) providing strategic guidance for Project implementation. (a) The Borrower shall ensure that at least 10% of the funds allocated to finance Rural Subprojects shall be used for the benefit of Special Groups. (b) Prior to initiating any activity under the Project which will benefit an indigenous community, the Borrower, through ADAP, shall obtain from Fundação Nacional do Índio, the Guarantor’s foundation which deals with indigenous peoples in Brazil: (i) permission for ADAP to carry out any such activity; and (ii) a commitment to collaborate with ADAP in the carrying out of any such activity, and with the indigenous communities in the carrying out of Rural Subprojects. Section 3.06. The Borrower shall: (a) by September 30 of each year during Project implementation, prepare and furnish to the Bank a draft operating plan and budget, satisfactory to the Bank, detailing the Project activities proposed POA to be carried out during the next succeeding year and the respective sources of funding therefor; and (b) not later than 30 days after the approval of the Borrower’s annual budget by its Assembléia Legislativa (Legislative Assembly), furnish to the Bank the final operating plan and budget for the Project’s activities for each year in question approved on the basis of the relevant Borrower’s annual budget (the POA). Section 3.07. The Borrower shall: (a) establish and maintain Project monitoring and information systems (the MIS), satisfactory to the Bank, one in ADAP and another in AFAP, to enable the monitoring and evaluation on an on-going basis, in accordance with the indicators set forth in the Operational Manual, of the carrying out of the Project and the achievement of the objective thereof; and (b) review with the Bank, on or about the 24th month after the Effective Date, or such later date as the Bank shall request, the progress achieved in the carrying out of the Project during the period preceding the date of such review, based on the monitoring and evaluation activities referred to in paragraph (a) above, and, thereafter, take all measures required to ensure the efficient completion of the Project and the achievement of the objective thereof, based on the conclusions and recommendations of said review. Section 3.08. The Borrower shall: (a) prepare, on the basis of guidelines acceptable to the Bank, and furnish to the Bank not later than six months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Bank, a plan for the Northeast Rural Development Program for future operation of the following fiscal yearProject; and (iib) afford the Bank a reasonable opportunity to comment on any modifications exchange views with the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budgetsaid plan. (b) In order to assist the EMBRAPA in carrying out Part H of the Project, the Borrower shall cause EMBRAPA, under contractual arrangements satisfactory to the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the bank in August 1981. Section 3.04. The Bank and the Borrower hereby agree that the obligations set forth in Sections 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out, or caused to be carried out, by (i) the State in respect of the State Project, and by

Execution of the Project. (a) The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and and, to this end shall cause: end: (i) SDR to coordinate (at the federal level) and issue guidelines related to the carrying out of the Program, to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely manner; (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, to shall carry out or cause to be carried out the credit program included in Parts D and I of the Project; and (iv) EMBRAPA to carry out Part H of the Project, all Project with due diligence and efficiency, efficiency and in accordance conformity with appropriate administrative, financial and agricultural practices.population practices and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project; and (bii) Without any without limitation or restriction upon any of its other obligations under the Loan Development Credit Agreement, the Borrower shall cause the StateProvinces, under contractual arrangements satisfactory to the Bank, AJK and FATA to perform all their obligations set forth in accordance with the provisions of the Project Agreement, all the respective obligations of the State therein set forth, shall take or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable the State Provinces, AJK and FATA to perform its such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) The Borrower shall make available to the Provinces, AJK and FATA a portion of the proceeds of the Credit in accordance with its standard budgetary procedures, for purposes of the respective Parts of the Project to be carried out by them. (c) Without any limitation to its obligations under paragraph the generality of paragraph (a) above, the Borrower shall: (i) take all action as shall ensure that sufficient funds will be required to regulate, in a manner satisfactory released to the Bank, Ministry of Population Welfare and the funding procedures which will ensure that Departments of Population Welfare by the Executing Entities shall have fifteenth of the funds required for carrying out first month of every quarter during the Project available to them in a timely manner; and (ii) provide or cause SUDENE to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the Stateperiod, as referred to in Section 2.01 (h) of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H implementing such part of the Project and under the State Project, respectively, approved sub-program as provided in each POA. (d) The Borrower shall make the proceeds of the Loan allocated respectively: (i) for purposes of the State Project available to the State; and (ii) for Part H of the Project available to EMBRAPA; under arrangements satisfactory to the Bank. (e) The Borrower, through DTN, shall enter into agreements, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions of Schedule 5 to this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program; (B) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject in such manner as to: (i) protect the interest of the Bank and the Borrower; (ii) enable the Borrower to comply with its obligations under this Agreement; and (iii) achieve the purposes of the Project. (f) Unless the Bank shall otherwise agree, the Borrower shall not amend, abrogate or waive the provisions of the MCR applicable to the Program. (g) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds is to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms and conditions satisfactory to the Bank, not later than six months after the date of the Amending Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive or fail to enforce any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, carried out in accordance with terms of reference satisfactory to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendationssaid quarter. Section 3.02. Except as the Bank Association shall otherwise agree, procurement of the goods, works and consultants’ services required for the carrying out of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan Credit shall be made in accordance with governed by the provisions of Schedule 2 3 to the Project this Agreement. (a) The Borrower shall: (i) furnish to the Bank by October 31 in each year, for its review and comment, the proposed POA and budget for the Project and for the Northeast Rural Development Program for the following fiscal year; (ii) afford the Bank a reasonable opportunity to comment on any modifications the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budget. (b) In order to assist the EMBRAPA in carrying out Part H of the Project, the Borrower shall cause EMBRAPA, under contractual arrangements satisfactory to the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the bank in August 1981. Section 3.04. The Bank and the Borrower Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07, 9.07 and 9.08 and 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of their respective parts of the Project shall be respectively carried outout by the Provinces, or caused AJK and FATA pursuant to be carried outSection 2.03 of the Project Agreement. (b) Without limitation upon the provisions of Article IX of the General Conditions, by the Borrower shall: (i) prepare, on the State basis of guidelines acceptable to the Association, and furnish to the Association not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Borrower and the Association, a plan designed to ensure the continued achievement of the Project’s objectives; (ii) afford the Association a reasonable opportunity to exchange views with the Borrower on said plan; and (iii) thereafter, carry out said plan with due diligence and efficiency and in accordance with appropriate practices, taking into account the Association’s comments thereon. (a) The Borrower shall take all such measures, satisfactory to the Association, as may be necessary or required for the purpose of increasing the overall level of expenditures for the Population Welfare Program in each Fiscal Year during the implementation of the Project to such target levels as agreed with the Association within the framework of the Population Welfare Program; provided, however, that such levels shall rise by at least 22% per year (in constant price terms) in FY96 through FY99, and that the aggregate amount of spending for the Population Welfare Program for the same four- year period shall not be less than Rs 10.34 billion; and provided further that the Borrower and the Association may agree on a different percentage for FY99 as determined by the Borrower’s next Five-Year Plan commencing in such fiscal year, and that such percentage may yield a different aggregate spending for the aforesaid four-year period. (b) In achieving such expenditure increases, the Borrower shall ensure that, in each Fiscal Year during the implementation of the Project, the financing of the Population Welfare Program from its own resources increases in FY96 through FY99 from 57% to 60% of total spending on population, including the Borrower’s financing of an increasing proportion of incremental costs. Section 3.05. The Borrower shall ensure that no bans on recruitment of field staff are imposed in respect of the State Population Welfare Sector of the Borrower, FANA and ICT. Section 3.06. The Borrower shall: (a) by March 31 of each Fiscal Year during the implementation of the Project or such later date as may be acceptable to the Association, provide or cause to be provided to the Association, for its assessment and review, each proposed Sub-program to be carried out by the Borrower, whether on its own behalf or on behalf of FANA or ICT, as the case may be, in the next following Fiscal Year; (b) by June 30 of each such Fiscal Year during the implementation of the Project, or such later date as may be acceptable to the Association, provide to the Association for its approval each such Sub-program modified in a manner satisfactory to the Association taking into account its comments and byrecommendations; and (c) carry out or cause to be carried out each such Sub- program in form and substance as approved by the Association and in a manner satisfactory to the Association. Section 3.07. The Borrower shall by July 1, 1996, transfer to FANA and ICT the responsibility for the carrying out of its respective Sub-programs, and shall provide FANA and ICT with the powers and authority necessary for the purpose in the same way the Provinces are provided with such powers and authority. Section 3.08. The Borrower shall, by December 31, 1995, or such later date as may be agreed by the Association, clarify the administrative status of the staff of the Ministry of Population Welfare and the Population Welfare Departments in such a way as to provide said staff the employment conditions and benefits afforded to other similar federal and provincial staff. Section 3.09. The Borrower shall take all such measures as may be necessary on its part to ensure that the NATPOW is maintained and operated in a manner satisfactory to the Association. Section 3.10. The Borrower shall, through the Ministry of Population Welfare and not later than 60 days after the end of each six-month period of each Fiscal Year of Project implementation, furnish to the Association, in form and substance satisfactory to the Association, a progress report on the implementation of each Sub-program for which the Borrower is responsible, whether in its own behalf or on behalf of FANA or ICT, as the case may be, during such period. Section 3.11. The Borrower shall, with the participation of the Association, the Provinces, AJK and FATA, carry out, no later than March 31 of each Fiscal Year during the implementation of the Project, a review of the preceding eight months and a forecast for the ensuing four months of the Project for purposes, inter alia, of (i) monitoring and evaluating progress made to date under Sub-programs carried out in the current Fiscal Year; (ii) obtaining the approval of the Association in respect of the eligibility of Sub-programs for financing by the Association in the following Fiscal Year, including the amounts to be allocated in respect of such Sub- programs; and (iii) obtaining the approval of the Association in respect of the expenditure program and the financing plan for the Population Welfare Program in the following fiscal year and the Borrower’s contribution relating thereto.

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

Execution of the Project. (a) The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and and, to this end shall cause: (i) SDR to coordinate (at the federal level) and issue guidelines related to the carrying out of the Programend, to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely manner; (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, to carry out the credit program included in Parts D and I of the Project; and (iv) EMBRAPA to carry out Part H of the Project, all with due diligence and efficiency, in accordance with appropriate administrative, financial and agricultural practices. (b) Without without any limitation or restriction upon any of its other obligations under the Loan Development Credit Agreement, the Borrower shall cause the State, under contractual arrangements satisfactory to the Bank, North-East Provincial Council to perform in accordance with the provisions of the Project Agreement, Agreement all the respective obligations of the State North-East Provincial Council therein set forth, shall take or and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable the State North-East Provincial Council to perform its such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (cb) Without limitation to its obligations under upon the provisions of paragraph (a) aboveof this Section and except as the Borrower and the Association shall otherwise agree, the Borrower shall: shall cause the North-East Provincial Council to: (i) take all action as shall be required to regulate, carry out its obligations in a manner satisfactory to accordance with the Bank, the funding procedures which will ensure that the Executing Entities shall have the funds required for carrying out the Project available to them in a timely manner; provisions of this Agreement and (ii) provide or cause SUDENE to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h) of the Project Agreement; all and (ii) implement the Project in a timely manner accordance with the Operational Manual, the Social Safeguard Framework, the Environmental Management Framework, and the Financial Manual, and except as the Association shall otherwise agree, the Borrower shall not amend or waive any provision thereof if, in sufficient amounts for the purpose of financing the activities under Part H opinion of the Project Association, such amendment or waiver may materially and under adversely affect the State implementation of the Project, respectively, as provided in each POA. (da) The Borrower shall make the proceeds of the Loan allocated respectively: (i) for purposes of the State Project Credit available to the State; North-East Provincial Council in accordance with terms and (ii) for Part H of the Project available to EMBRAPA; under arrangements satisfactory conditions acceptable to the BankAssociation. (eb) The Borrower, through DTN, Borrower shall enter into agreements, satisfactory take adequate and timely measures to ensure that sufficient funds from its own resources are made available to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 North East Provincial Council to this 2. to the extent that they are compatible with the provisions of Schedule 5 to this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program; (B) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying carry out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject in such manner as to: (i) protect the interest of the Bank and the Borrower; (ii) enable the Borrower to comply with its obligations under this Agreement; and (iii) achieve the purposes of the Project. (fa) Unless the Bank shall otherwise agree, the Borrower shall not amend, abrogate or waive the provisions of the MCR applicable to the Program. (g) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms and conditions satisfactory to the Bank, not later than six months after the date of the Amending Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive or fail to enforce any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendations. Section 3.02. Except as the Bank Association shall otherwise agree, procurement of the goods, works and consultants’ services required for the carrying out of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan Credit shall be made in accordance with governed by the provisions of Schedule 2 1 to the Project Agreement. (a) The Borrower shall: (i) furnish to , as such provisions may be further elaborated in the Bank by October 31 in each year, for its review and comment, the proposed POA and budget for the Project and for the Northeast Rural Development Program for the following fiscal year; (ii) afford the Bank a reasonable opportunity to comment on any modifications the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budgetProcurement Plan. (b) In order The Borrower shall cause the North East Provincial Council to assist update the EMBRAPA Procurement Plan in carrying accordance with the terms of reference acceptable to the Association, and furnish such update to the Association not later than twelve (12) months after the date of the preceding Procurement Plan, for the Association’s approval. Section 3.04. (a) Without prejudice to the Borrower’s obligations under Section 9.04 of the General Conditions to ensure that all goods, works, services, training, and Sub-Grants financed out Part H of the Credit proceeds are used exclusively for the Project, the Borrower shall cause EMBRAPAthe North East Provincial Council to ensure that, under contractual arrangements satisfactory to no circumstances, any proceeds of the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment Credit shall be satisfactory to withdrawn, utilized, or made available for the Bankpayment of any taxes, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank levies, fees, or any other surcharges collected or levied by any group, cadre, entity or other non-governmental organization on goods, works or services, or on the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the bank in August 1981importation, manufacture, procurement or supply thereof. Section 3.04. The Bank and the Borrower hereby agree that the obligations set forth in Sections 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out, or caused to be carried out, by (i) the State in respect of the State Project, and by

Execution of the Project. (a) The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement, and and, to this end shall cause: (i) SDR to coordinate (at the federal level) and issue guidelines related to the carrying out of the Programend, to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely manner; (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, to carry out the credit program included in Parts D and I of the Project; and (iv) EMBRAPA to carry out Part H of the Project, all with due diligence and efficiency, in accordance with appropriate administrative, financial and agricultural practices. (b) Without any without limitation or restriction upon any of its other obligations under the Loan this Agreement, the Borrower shall cause the StateEDM to perform, under contractual arrangements satisfactory to the Bank, to perform in accordance with the provisions of the Project Agreement, all the respective its obligations of the State therein set forth, shall take or and cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable the State EDM to perform its such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (cb) Without limitation The Borrower shall relend out of the proceeds of the Credit the amount allocated from time to its obligations under paragraph time to Categories (1), (2), (3) (a) above, and (4) (b) of the table in paragraph 1 of Schedule 1 to this Agreement to EDM under an agreement to be entered into between the Borrower shalland EDM, under terms and conditions which shall have been approved by the Association and which shall include: (i) take all action as shall be required a repayment period of twenty five years, including a grace period not to regulateexceed five (5) years, in a manner satisfactory to the Bank, the funding procedures which will ensure that the Executing Entities shall have the funds required for carrying out the Project available to them in a timely manner; and (ii) provide or cause SUDENE to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; interest rate of 7.7 percent per annum, and (Biii) an account opened provisions requiring EDM to bear the foreign exchange risk. (c) The Borrower shall make available, out of the proceeds of the Credit, the amount allocated to Categories (3) (b) and operated by the State, as referred to in Section 2.01 (h4) (a) of the Project table in paragraph 1 of Schedule 1 to this Agreement; all in a timely manner , to EDM, on grant basis, under an agreement to be entered into between the Borrower and in sufficient amounts for the purpose of financing the activities under Part H of the Project EDM, and under terms and conditions which shall have been approved by the State Project, respectively, as provided in each POAAssociation. (d) The Borrower shall make the proceeds of the Loan allocated respectively: (i) for purposes of the State Project available to the State; and (ii) for Part H of the Project available to EMBRAPA; under arrangements satisfactory to the Bank. (e) The Borrower, through DTN, shall enter into agreements, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions of Schedule 5 to this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program; (B) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject under the Subsidiary Financing Agreement in such manner as to: (i) to protect the interest interests of the Bank Borrower and the Borrower; (ii) enable the Borrower Association and to comply with its obligations under this Agreement; and (iii) achieve accomplish the purposes of the Project. (f) Unless Credit and, except as the Bank Association shall otherwise agree, the Borrower shall not amend, abrogate abrogate, or waive the provisions of the MCR applicable to the Program. (g) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms and conditions satisfactory to the Bank, not later than six months after the date of the Amending Subsidiary Financing Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive or fail to enforce any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendationsthereof. Section 3.02. Except as the Bank Association shall otherwise agree, procurement of the goods, works and consultants’ services required for the carrying out of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan Credit shall be made in accordance with governed by the provisions of Schedule 2 1 to the Project Agreement. (a) Section 3.03. The Borrower shall: (i) furnish to the Bank by October 31 in each year, for its review and comment, the proposed POA and budget for the Project and for the Northeast Rural Development Program for the following fiscal year; (ii) afford the Bank a reasonable opportunity to comment on any modifications the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budget. (b) In order to assist the EMBRAPA in carrying out Part H of the Project, the Borrower shall cause EMBRAPA, under contractual arrangements satisfactory to the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis of the "Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the bank in August 1981. Section 3.04. The Bank and the Borrower Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out, or caused to be carried out, by (i) the State in respect of the State Project, and by9.07 and

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

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

Execution of the Project. (a) The Borrower CONAFOR declares its commitment to the objectives objective of the Project as set forth in Schedule 2 to this the Loan Agreement, and and, to this end end, shall cause: carry out the Project with the assistance of inter alia: (i) SDR to coordinate (at CNA and the federal level) Technical Support Agencies, States and issue guidelines related to the carrying out Municipalities, in respect of Part A of the Program, to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely manner; Project; (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, to carry out the credit program included CNA in Parts D and I respect of Part B of the Project; and and (iviii) EMBRAPA to carry out Part H Federal Agencies in respect of all Parts of the Project, all with due diligence and efficiency, efficiency and in accordance conformity with appropriate administrative, financial financial, economic, environmental and agricultural social practices. (b) Without any limitation or restriction upon any of its other obligations under the Loan Agreement, the Borrower and shall cause the Stateprovide, under contractual arrangements satisfactory to the Bank, to perform in accordance with the provisions of the Project Agreement, all the respective obligations of the State therein set forth, shall take or cause to be taken all actionprovided, including promptly as needed, the provision of funds, facilities, services and other resources, necessary or appropriate to enable resources required for the State to perform its obligationsProject. (b) CONAFOR shall not later than two months from the date of this Agreement establish, and thereafter maintain, during the implementation of the Project: (i) an advisory committee which shall include a scientific and technical group to advise CONAFOR with regard to the Project; and (ii) a Project team, all with functions and responsibilities satisfactory to the Bank, and those referred to in (ii) above, at all times headed by a Project coordinator and sub-unit managers, and assisted by administrative and technical staff in adequate numbers, and with qualifications and experience satisfactory to the Bank; with procurement and financial management experts employed no later than three months after the date of this Agreement and other key staff, not take or permit to be taken any action which would prevent or interfere with such performancelater than six months thereafter. (c) Without limitation to its obligations under paragraph (a) above, the Borrower shall: (i) take all action as CONAFOR shall be required to regulate, in a manner satisfactory to the Bank, the funding procedures which will ensure that the Executing Entities shall have the funds required for enter into an agreement with each Community and/or Ejido carrying out a Technical Strengthening Activity (the Project available Implementation Agreement) prior to them submitting (through NAFIN) the respective withdrawal application, under terms and conditions substantially similar to those of the model form contained in a timely manner; and the Operational Manual (ii) provide or cause SUDENE the Implementation Agreement), such agreement to provide advances for the Community’s and/or Ejido’s, and CONAFOR’s respective responsibilities in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h) carrying out of the Project Agreement; all Technical Strengthening Activity in a timely manner and in sufficient amounts for accordance with the purpose of financing the activities under Part H requirements of the Project and under the State Project, respectively, as provided in each POAOperational Manual. (d) The Borrower CONAFOR shall make the proceeds enter into an agreement with each Community, Ejido and/or land user providing Environmental Services under terms and conditions substantially similar to those of the Loan allocated respectively:model form contained in the Operational Manual, which shall include, inter alia, their respective responsibilities in the carrying out and financing of the Environmental Services (the PES Contracts). (ie) for purposes CONAFOR shall, not later than six months from the date of this Agreement, or such later date as the State Project available to the StateBank may agree, enter into an agreement or agreements, with: (a) CAN; and (iib) for Part H at least two Technical Support Agencies to assist in the development of the Project available to EMBRAPA; Water Environmental Services and Biodiversity Environmental Services respectively under arrangements terms and conditions satisfactory to the Bank. (ef) The Borrower, through DTN, CONAFOR shall enter into agreements, satisfactory to the Bank, an agreement with each Environmental Services provider, recipient of the Participating Banksa Local Financing Grant, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of the Project in accordance with: Agreement; and 1. the under terms and conditions set forth in Schedule 5 substantially similar to this 2. to those of the extent that they are compatible with the provisions of Schedule 5 to this Agreement, the lending policies and procedures set forth model form contained in the MCR applicable to the Program; (B) allocate on a priority basisOperational Manual, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CARwhich shall include, on credit availability (including working capital credit)inter alia, the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank their respective responsibilities in the carrying out and financing of the credit program included in Part I of Environmental Services (the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject in such manner as to: (i) protect the interest of the Bank and the Borrower; (ii) enable the Borrower to comply with its obligations under this Agreement; and (iii) achieve the purposes of the Project. (f) Unless the Bank shall otherwise agree, the Borrower shall not amend, abrogate or waive the provisions of the MCR applicable to the ProgramFinancing Agreements). (g) Without limitation to CONAFOR shall exercise its other rights and carry out its obligations under this Sectioneach of the Implementation Agreements, Cooperation Agreements, PES Contracts and Financing Agreements in such a manner as to protect the interests of the Borrower shall provide and the funds necessary Bank and to finance accomplish the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms and conditions satisfactory to the Bank, not later than six months after the date purposes of the Amending AgreementLoan and the GEF Trust Fund Grant, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of the Project and and, except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA CONAFOR shall not to assign, amend, abrogate, waive suspend, waive, terminate or fail to enforce any of the Implementation Agreements, Cooperation Agreements, PES Contracts, Financing Agreements or any provision of such agreementthereof. (ia) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendations. Section 3.02. Except as the Bank shall otherwise agree, procurement of the goods, works goods and services required for the carrying out of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan and the GEF Trust Fund Grant shall be made in accordance with governed by the provisions of the Schedule 2 to this Agreement, as said provisions may be further elaborated in the Project Agreement. (a) The Borrower shall: (i) furnish to the Bank by October 31 in each year, for its review and comment, the proposed POA and budget for the Project and for the Northeast Rural Development Program for the following fiscal year; (ii) afford the Bank a reasonable opportunity to comment on any modifications the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budgetProcurement Plan. (b) In order to assist CONAFOR shall update the EMBRAPA Procurement Plan in carrying out Part H of the Project, the Borrower shall cause EMBRAPA, under contractual arrangements satisfactory accordance with guidelines acceptable to the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, furnish such consultants to be selected in accordance with principles and procedures satisfactory update to the Bank on not later than 12 months after the basis date of the "Guidelines preceding Procurement Plan, for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the bank in August 1981Bank’s approval. Section 3.042.03. The Bank and the Borrower hereby agree that CONAFOR shall carry out the obligations set forth in Sections 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out, or caused to be carried out, by (i) the State in respect of the State ProjectProject Agreement. Section 2.04. CONAFOR shall duly perform all its obligations under the GEF Subsidiary Contract and the ▇▇▇▇▇▇▇ Contract. Except as the Bank shall otherwise agree, CONAFOR shall not take or concur in any action which would have the effect of amending, abrogating, assigning or waiving the GEF Subsidiary Contract or the ▇▇▇▇▇▇▇ Contract or any provision thereof. Section 2.05. CONAFOR shall carry out the Project in accordance with the Operational Manual, said manual to include, inter alia: (a) the procedures for the carrying out, monitoring and evaluation of the Project (including the procurement, financial management and disbursement requirements thereof); (b) the Operational Rules; (c) other criteria for the approval, implementation and monitoring of Technical Strengthening Activities, Local Financing Grants and Environmental Services complementary to those of the Operational Rules; (d) model agreements for implementation of Technical Strengthening Activities, Environmental Services and Local Financing Grants; (e) the Environmental Management Plan, and bythe IPDP; (f) the Performance Indicators; and (g) the organization of the Advisory Committee and the Project Team. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevail. Section 2.06. CONAFOR shall during the execution of the Project: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, and in accordance with the Performance Indicators the carrying out of the Project (including the Technical Strengthening Activities, Local Financing Grants and Environmental Services), and the achievement of its objective; (b) furnish to the Bank, not later than March 15 and September 15 of each year, commencing September 15, 2006, a progress report on the execution of the Project during the period immediately preceding the date of each such report, said report to be of such scope and detail as the Bank may reasonably request and to include the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section; (c) carry out, jointly with the Bank, not later than April 30 and October 31 of each year, commencing October 31, 2006, reviews of the progress of the Project and the attainment of Project objective on the basis of the reports referred to in paragraph (b) of this Section; and (d) thereafter, take all measures required to ensure the efficient completion of the Project and the achievement of its objective, based on the conclusions and recommendations of the said reports, and the Bank's views on the matter. Section 2.07. CONAFOR shall, in the event that the provision of Local Financing Grants in Eligible Pilot Areas involve indigenous peoples, comply with the requirements of the IPDP, and: (a) prepare, and prior to the submission of the respective withdrawal application (through NAFIN) seek the Bank’s approval of the respective IAP, and (b) thereafter carry out the IAP as set forth therein. Section 2.08. CONAFOR shall issue directives, satisfactory to the Bank, setting forth specific rules and procedures for the operation of the Endowment Fund including, inter alia, the Endowment Fund’s: (a) governance structure; (b) financial structure and asset management agency’s role; (c) mechanisms to finance Biodiversity Environmental Services; (d) the disbursement, auditing and reporting requirements, including those set forth in Section 2.09 of this Agreement; (e) the expenditures eligible for financing as Biodiversity Environmental Services; (f) the criteria for eligibility of Biodiversity Environmental Services and institutional arrangements required therefor; and (g) monitoring and evaluation requirements. In case of any conflict between the terms of this Agreement and those of the Endowment Fund Directives, the terms of this Agreement shall prevail. Section 2.09. With respect to Part A.2 (b) (iii) of the Project: (a) CONAFOR shall deposit within the Endowment Fund all proceeds of the GEF Trust Fund Grant disbursed under Category (2) of the table in paragraph A. 1 of Schedule 1 to the Loan Agreement. Once so deposited, said proceeds shall constitute part of the Endowment Fund’s capital. (b) The Endowment Fund’s capital shall be invested by CONAFOR through an asset management agency contracted under a contract, satisfactory to the Bank, between CONAFOR and said management agency, which contract shall require said agency to: (i) invest the Endowment Fund capital in accordance with the instructions issued by CONAFOR and set forth in the Endowment Fund Directives; (ii) for each year of Project implementation, only release to CONAFOR investment income derived from the Endowment Fund’s capital (and a portion of the Endowment Fund’s capital in case the use of such portion has been given prior explicit approval in writing by the Bank); (iii) not later than one month after the end of each semester in the relevant year of Project implementation, provide to CONAFOR bi-annual reports regarding management performance, capital value, asset allocation, and investment income (including dividends) with respect to the Endowment Fund; and (iv) provide CONAFOR with information required by CONAFOR to comply with its obligations under Section 4.02 of this Agreement in respect of the Endowment Fund. (c) CONAFOR shall exercise its rights and carry out its obligations under the Asset Management Contract in such a manner so as to protect the interests of the Bank and to accomplish the purposes of the GEF Trust Fund Grant. Except as the Bank may otherwise agree, CONAFOR shall not amend, waive or fail to enforce any provision of the Asset Management Contract. In case of any conflict between the terms of the Asset Management Contract and those of this Agreement, the terms of this Agreement shall prevail. (d) CONAFOR shall provide the Bank with plans for the use of the proceeds of the Endowment Fund for each year of the Project. Section 2.10. Amounts released by the Asset Management Agency to CONAFOR under Section 2.09 (b) (ii) of this Agreement shall be used for financing the costs of Biodiversity Environmental Services, all as prescribed, inter alia, in this Agreement, and the Endowment Fund Directives. Section 2.11. CONAFOR shall furnish to the Bank for its review and approval: (a) not later than six months after the Effective Date, the proposed revisions to the Operational Rules that may be required: (i) to comply with the environmental and social requirements of the Project; and (ii) for the financing of Local Financing Grants; and (b) thereafter any other proposed changes to the Operational Rules, including all those developed under Part B.1 (b) of the Project. Section 2.12. For the purposes of Section 9.07 of the General Conditions applicable to the Loan Agreement, the GEF Grant Agreement and this Agreement and without limitation thereto, CONAFOR shall: (a) prepare, on the basis of guidelines acceptable to the Bank, and furnish to the Bank not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Bank and CONAFOR, a plan for the future operation of the Project; and (b) afford the Bank a reasonable opportunity to exchange views with CONAFOR on said plan.

Execution of the Project. (a) The Borrower Recipient declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement and, to this end, without any limitation or restriction upon any of its other obligations under this Agreement, shall carry out through DOLIDAR, and to this end shall cause: (i) SDR to coordinate (at the federal level) and issue guidelines related to the carrying out of the Program, to propose annual budgets for such Program and to take all actions necessary to ensure the availability of the counterpart funds for the carrying out of such Program in a timely manner; (ii) SUDENE to coordinate (at the regional level), supervise and monitor the Program; (iii) the Participating Banks, through Participating Agreements, cause each DDC to carry out out, the credit program included in Parts D and I of the Project; and (iv) EMBRAPA to carry out Part H of the Project, all Project with due diligence and efficiency, efficiency and in accordance conformity with appropriate administrative, financial financial, engineering, transport, environmental and agricultural social practices, and shall provide, and cause each DDC to provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Recipient and the Association shall otherwise agree, the Recipient shall carry out through DOLIDAR, and cause each DDC to carry out, the Project in accordance with the implementation program set forth in Schedule 4 to this Agreement. (c) Without any limitation or restriction upon any of its other obligations under the Loan this Agreement, the Borrower Recipient shall cause the Stateexecute with each DDC a Memorandum of Understanding, under contractual arrangements satisfactory to the BankAssociation and including the provisions set forth in Schedule 5 to this Agreement, and promptly upon such execution furnish a copy thereof to the Association, before such DDC participates in the carrying out of any activities under the Project. If any provision of any such Memorandum of Understanding is inconsistent with a provision of this Agreement, the provision of this Agreement shall govern. (d) Without any limitation or restriction upon any of its other obligations under this Agreement, the Recipient shall cause each DDC to perform in accordance with the provisions of the Project Agreement, applicable Memorandum of Understanding all the respective obligations of the State such DDC therein set forth, shall take or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable the State such DDC to perform its such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (ce) Without limitation to its obligations under paragraph (a) above, the Borrower shall: (i) take all action as The Recipient shall be required to regulate, in a manner satisfactory to the Bank, the funding procedures which will ensure that the Executing Entities shall have the funds required for carrying out the Project make available to them each DDC under its Memorandum of Understanding, as a grant and in a timely manner, (i) part of the proceeds of the Grant; and (ii) provide or cause SUDENE additional funds from the Recipient’s own resources if and as required for such DDC to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h) of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the carry out its activities under Part H of the Project and under the State Project, respectively, as provided in each POA. (d) The Borrower shall make the proceeds of the Loan allocated respectively: (i) for purposes of the State Project available to the State; and (ii) for Part H of the Project available to EMBRAPA; under arrangements satisfactory to the Bank. (e) The Borrower, through DTN, shall enter into agreements, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions of Schedule 5 to this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program; (B) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish to the Bank, through DTN, at regular intervals, all such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject in such manner as to: (i) protect the interest of the Bank and the Borrower; (ii) enable the Borrower to comply with its obligations under this Agreement; and (iii) achieve the purposes of the Project. (fa) Unless the Bank shall otherwise agree, the Borrower shall not amend, abrogate or waive the provisions of the MCR applicable to the Program. (g) Without limitation to its other obligations under this Section, the Borrower shall provide the funds necessary to finance the costs of any subsidies related to the terms of onlending referred to in paragraph (e) above, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao). (h) the Borrower shall: (i) cause EMBRAPA to enter into an agreement with SUDENE, on terms and conditions satisfactory to the Bank, not later than six months after the date of the Amending Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive or fail to enforce any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory to the Bank, and shall, immediately thereafter, if recommended by such review, amend the Program, taking into account such recommendations. Section 3.02. Except as the Bank Association shall otherwise agree, procurement of the goods, works and consultants’ services required for the carrying out of the Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan Grant shall be made in accordance with governed by the provisions of Schedule 2 3 to this Agreement, as said provisions may be further elaborated in the Project Agreement. (a) The Borrower shall: (i) furnish to the Bank by October 31 in each year, for its review and comment, the proposed POA and budget for the Project and for the Northeast Rural Development Program for the following fiscal year; (ii) afford the Bank a reasonable opportunity to comment on any modifications the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish to the Bank by January 1 in each year the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budgetProcurement Plan. (b) In order to assist the EMBRAPA in carrying out Part H of the ProjectThe Recipient shall, the Borrower and shall cause EMBRAPAeach DDC to, under contractual arrangements satisfactory to update the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected Procurement Plan in accordance with principles and procedures satisfactory guidelines acceptable to the Bank Association, and furnish such update to the Association not later than nine (9) months after the date of the preceding Procurement Plan, for the Association’s approval. Section 3.03. For the purposes of Section 9.06 of the General Conditions and without limitation thereto, the Recipient shall: (a) prepare, on the basis of guidelines acceptable to the "Guidelines Association, and furnish to the Association not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between the Use Recipient and the Association, a plan designed to ensure the continued achievement of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by Project’s objectives; and (b) afford the bank in August 1981Association a reasonable opportunity to exchange views with the Recipient on said plan. Section 3.04. The Bank Recipient and the Borrower Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07, 9.08 9.06 and 9.09 9.07 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance reports and land acquisitionmaintenance, respectively) shall be carried out, or caused to be carried out, by (i) the State in respect of the State Project, and byactivities to be carried out by each DDC shall be carried out by such DDC pursuant to its Memorandum of Understanding.

Execution of the Project. (a) The Borrower declares its commitment State shall carry out and cause the Executing Entities to carry out the objectives State Project with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering and agricultural practices, and, without in any way limiting the obligation of the Project as set forth in Schedule 2 to this Borrower under Section 3.01 (b) of the Loan Agreement, shall provide whenever needed, in a timely manner, all funds, facilities, services and to this end shall cause: (i) SDR to coordinate (at the federal level) and issue guidelines related to other resources necessary for the carrying out of the ProgramState Project. (b) Without limitation to the foregoing, to propose annual budgets and for such Program and to purposes of carrying out the State Project, the State shall: (i) take all actions necessary to ensure the availability of the counterpart funds to be provided by the State for the carrying out of such Program the State Project in a timely manner; (ii) SUDENE to coordinate (at the regional level)maintain CAR with functions, supervise staff and monitor the Program; (iii) the Participating Banks, through Participating Agreements, to carry out the credit program included in Parts D and I of the Project; and (iv) EMBRAPA to carry out Part H of the Project, all with due diligence and efficiency, in accordance with appropriate administrative, financial and agricultural practices. (b) Without any limitation or restriction upon any of its other obligations under the Loan Agreement, the Borrower shall cause the State, under contractual arrangements organizational structure satisfactory to the Bank, inter alia, as provided for in Schedule 3 to perform this Agreement, and with the authority for, inter alia, entering into agreements, administering funds, and making payments; and (iii) cause CAR to enter into agreements with Associacaes and the Executing Entities, on terms and conditions satisfactory to the Bank, such agreements to contain, inter alia: (A) the obligation of the Associacaes and of the Executing Entities to carry out their respective Parts of the State Project in accordance with the provisions terms and conditions of this Agreement and of the Project Loan Agreement, all when applicable; (B) the obligation of CAR to provide the resources required by the Associacaes and the Executing Entities to carry out their obligations, with specific reference to the terms on which the funds will be transferred and disbursed; (C) the obligation of the Associacaes and of the Executing Entities to furnish to CAR periodic reports on physical and financial indicators showing the progress on the execution of their respective obligations Parts of the State therein set forth, shall take Project; and (D) the right of the CAR to suspend disbursements in respect of Associacaes or cause of Executing Entities and to be taken all action, including unilaterally terminate the provision agreement in case of funds, facilities, services and other resources, necessary failure by any such Associacao or appropriate Executing Entity to enable the State to perform carry out its obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performanceobligations in a diligent manner. (c) Without limitation The State shall cause CAR to its obligations under paragraph (a) aboveprepare a consolidated monitoring summary on the implementation of the State Project during each semester, the Borrower shall: (i) take all action of such scope and in such detail as shall be required to regulate, in a manner satisfactory to the Bank, and to furnish each such report to SUDENE and the funding procedures which will ensure that Bank no later than three months after the Executing Entities shall have the funds required for carrying out the Project available to them in a timely manner; and (ii) provide or cause SUDENE to provide advances in Cruzeiros into: (A) an account opened and operated by EMBRAPA; and (B) an account opened and operated by the State, as referred to in Section 2.01 (h) end of the Project Agreement; all in a timely manner and in sufficient amounts for the purpose of financing the activities under Part H of the Project and under the State Project, respectively, as provided in each POAsemester. (d) The Borrower State shall make the proceeds of the Loan allocated respectively: cause CAR to: (i) prepare, in consultation with SUDENE, a POA and a budget for purposes of the State Project available to the Statefor each fiscal year; and (ii) for Part H of the Project available to EMBRAPA; under arrangements satisfactory furnish to the BankBank and to SDR, for review, by not later than November 30 of each year, any such POA for the following year. (e) Except as the Bank shall otherwise agree, the preparation, appraisal, execution, supervision, monitoring and evaluation of Subprojects shall be done in accordance with Schedule 1 to this Agreement. (f) The Borrower, through DTN, State shall cause CAR to enter into agreements, satisfactory to the Bank, with each of the Participating Banks, providing for the Participating Bank to: (A) on-lend the proceeds of the Loan allocated for purposes of the credit programs included in Parts D and I of the Project in accordance with: Agreement; and 1. the terms and conditions set forth in Schedule 5 to this 2. to the extent that they are compatible with the provisions of Schedule 5 to this Agreement, the lending policies and procedures set forth in the MCR applicable to the Program; (B) allocate on a priority basis, adequate funds for the financing of working capital (custeio) needs of the Beneficiaries; (C) maintain separate accounts and records adequate to record and monitor the progress of the credit programs under Parts D and I of the Project; (D) undertake to provide monthly information to SUDENE and CAR, on credit availability (including working capital credit), the demand for working capital credit and for credit under Part I of the Project and the preceding month’s lending performance of the Participating Bank in the area where Sub-projects are carried out; (E) furnish public or private entities acceptable to the Bank, through DTN, at regular intervals, all for the Provisional Execution of a Subproject by such information as the Bank shall reasonably request concerning the performance of the Participating Bank in the carrying out of the credit program included in Part I of the Project, the Subloans, the Beneficiaries, the expenditure of the proceeds of the Loan, the goods and services financed out of such proceeds and the repayment performance of Beneficiaries; and (F) exercise its rights in relation to each Subproject in such manner as to: (i) protect the interest of the Bank and the Borrower; (ii) enable the Borrower to comply with its obligations under this Agreement; and (iii) achieve the purposes of the Project. (f) Unless the Bank shall otherwise agree, the Borrower shall not amend, abrogate or waive the provisions of the MCR applicable to the Programentities. (g) Without limitation The State shall cause CAR to its other obligations under this Sectionprepare, jointly with the Beneficiary, Subprojects to be carried out in 1993 and to provide SUDENE and the Bank, for their approval, by not later than December 31, 1992, the Borrower Subprojects which implementation shall provide begin during 1993, together with the funds necessary to finance the costs justification of any subsidies related to the terms of onlending referred to in paragraph (e) abovetheir technical, such funds to be allocated for such purpose from the federal budget (Orcamento da Uniao)economic, financial and managerial feasibility. (h) the Borrower The State shall: (i) cause EMBRAPA CAR to enter into establish an agreement with SUDENE, on account under terms and conditions satisfactory to the Bank, not later than six months after the date of the Amending Agreement, such agreement to define the respective responsibility of SUDENE and EMBRAPA regarding Part H of the Project and except as the Bank shall otherwise agree, cause SUDENE and EMBRAPA not to amend, abrogate, waive or fail to enforce any provision of such agreement. (i) The Borrower shall, by not later than June 30, 1993, review, together with the Bank and SUDENE, the Program, in accordance with terms of reference satisfactory a financial institution acceptable to the Bank, the proceeds of such account to be used exclusively for expenditures related to the carrying out the State Project; and shall(ii) promptly deposit in such account all advances received from the Borrower or SUDENE pursuant to Section 3.01 (c) (ii) of the Loan Agreement, immediately thereafter, if recommended in addition to all counterparts funds to be provided by such review, amend the Program, taking into account such recommendationsState pursuant to Section 2.01 (b) of this Agreement. Section 3.022.02. Except as the Bank shall otherwise agree, procurement of the goods, goods and works and services required for the carrying out of the State Project assigned to EMBRAPA and to be financed out of the proceeds of the Loan and the employment of consultants to assist the State and the Executing Entities in carrying out the State Project shall be made in accordance with governed by the provisions of Schedule 2 to this Agreement. Section 2.03. The State shall enable the Project AgreementBank’s representatives to examine all plants, installations, sites, works, buildings, property and equipment of the State and any relevant records and documents in respect of the State Project. (a) The Borrower State shall: (i) furnish , at the request of the Bank, exchange views with the Bank and SUDENE with regard to the Bank by October 31 in each year, for its review and commentprogress of the State Project, the proposed POA performance of its obligations under this Agreement and budget for the Project and for the Northeast Rural Development Program for the following fiscal year; (ii) afford the Bank a reasonable opportunity to comment on any modifications the Borrower may intend to introduce to such proposed POA and budget; and (iii) furnish other matters relating to the Bank by January 1 in each year purposes of the administrative regulation approving the POA for the fiscal year which is being initiated on such date and by March 15 in each year the final approved version of such budgetLoan. (b) In order The State shall promptly inform the Bank and SUDENE of any condition which interferes or threatens to assist interfere with the EMBRAPA in carrying out Part H progress of the State Project, the Borrower shall cause EMBRAPA, under contractual arrangements satisfactory to the Bank, to employ consultants whose qualifications, experience and terms and conditions of employment shall be satisfactory to the Bank, such consultants to be selected in accordance with principles and procedures satisfactory to the Bank on the basis accomplishment of the "Guidelines for purposes of the Use of Consultants by World Bank Borrowers and Loan, or the performance by the World Bank as Executing Agency" published by the bank in August 1981State of its obligations under this Agreement. Section 3.042.05. The Bank and the Borrower hereby agree that State shall carry out, or cause to be carried out, the obligations set forth in Sections 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) shall be carried out, or caused to be carried out, by (i) the State in respect of the State Project, and byprovided, however, that for purposes of Section 9.07, the State shall discharge its obligations through CAR.

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