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June 3, 1996
Mr. Askar Sarygulov
Vice-Chairman
State Commission on Foreign Investment and Economic Assistance 58a Erkindik 
Boulevard
Bishkek, 720874
Kyrgyz Republic
Dear Mr. Sarygulov:
Kyrgyz Republic: Private Enterprise Support Project (Cr. 2717-KG)
Amendment to Development Credit Agreement
     We refer to Development Credit Agreement dated June 20, 1995, between the Kyrgyz 
Republic and the International Development Association (the Association) for the 
above-mentioned Credit, and to our discussions.
     We hereby acree to amend the following sections and schedules of the Development 
Credit Agreement as follows:
Section 1.02 (d) is amended to read:
"FERD means the Fund for Enterprise Restructuring and Development established 
by the Borrower pursuant to a Decree dated April 6, 1995";
Section 3.01 (c) (ii) is amended to read:
"a grant in respect of the funds made available out of the proceeds of the 
Credit for the TA Financing under Part B of the Project, and a grant to the 
FERD to be made available to the PAU, in respect of the funds made available 
out of the proceeds of the Credit under Part C of the Project, and for audit 
of Project accounts; and";
Section 3.05 (a) and (b) is amended to change the dates for the preparation of 
the mid-term review report, and the date for the joint review of such report to "July 
31, 1997," and "October 31, 1997," respectively;
     Schedule 1: the table in paragraph 1 is amended by introduction of a new Category 
(8), and reallocation of Credit proceeds as set forth in the attached table to this 
letter;
Schedule 1: in the table in paragraph 1, Category (8) is renumbered as Category 
(9);
Schedule 1, paragraph 2,: the word "and" is deleted at the end of paragraph (b), 
the "." at the end of paragraph (c) is replaced by "; and" and a new paragraph (d) is 
added and reads:
"the term "operating, expenditures of the PAU" means expenditures incurred by 
the PAU for telecommunication expenses, including local and international 
telephone, telefax, electronic mail, access to internet, and for international 
mail; the term "first year" means the period from January 1 to December 31, 
1996; the term "second year" means the period from January 1 to December 31, 
1997; and the term "third year" means the period from January I to December 
31, 1998;
Schedule 1, paragraph 4 is amended to read:
"The Association may require withdrawals from the Credit Account to be made on 
the basis of statements of expenditures for expenditures for goods, works and 
services under contracts not exceeding $200,000 equivalent in respect of 
expenditures under Part A of the Project, includin- expenditures under 
Categories 
(3) and (6), in respect of expenditures under Part B and C of the  Project, and in 
respect of operating expenditures of the PAU, not exceeding 
$50,000, under such 
terms and conditions as the Association shall specify by 
notice to the Borrower."
Schedule 2, Part C is amended to read:
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"Strengthening of the local financial intermediation capacity through the 
carrying out of selected financial sector studies by the PAU, including 
strengthening of the Borrower's capacity for Project coordination and 
administration, also through training and study tours of the local staff of 
the 
PAU";
Schedule 4: the first sentence of Section II.1 is amended to read:
"Except as the Association shall otherwise agree, the principal amount of each 
Sub-loan made, or proposed to be made, out of the proceeds of the Credit shall 
be:";
Schedule 4: the second sentence of Section III.1 is amended to read:
"Except as the Association shall otherwise agree, the principal amount of each 
loan portion of the TA Financino, made, or proposed to be made, out of the 
proceeds of the Credit shall be:
Schedule 5:, paragraph 1 is amended to read:
"(a) the term "eligible Categories" means Categories (3), (4), (5), (6), and 
(8) set forth in the table in paragraph 1 of Schedule 1 to this Aareement in 
the case of Special Account A;
(b)
the term "eligible Categories" means Categories (1) and (2) set forth in 
the table in paragraph 1 of Schedule 1 to this Agreement in the case of 
Special Account B;
(c)
the term "eligible expenditures" means expenditures in respect of the 
reasonable cost of goods, works and services required for the Project, and 
operating expenditures of the PAU, to be financed out of the proceeds of the 
Credit allocated from time to time to the eligible Categories in accordance 
with the provisions of Schedule 1 to this Agreement; and "
Please confirm your agreement on behalf of the Kyrgyz Republic with the 
foregoing by signing and returning to us the enclosed original copy of this letter.
Sincerely,
By /s/ Jonathan Brown
Acting Director
Country Department III
Europe and Central Asia Reaion
Attachment
CONFIRMED:
KYRGYZ REPUBLIC
By /s/
Authorized Representative
Date:
06/10/1996
REVISED SCHEDULE 1
Withdrawal of the Proceeds of the Credit
     The table below sets forth the Categories of items to be financed out of the 
proceeds of the Credit, the allocation of the amounts of the Credit of each Category 
and the percentage of expenditures for items so to be financed in each Category:
Amount of the
Credit Allocated
   % of
(Expressed in Expenditures
Category
SDR Equivalent)
to be Financed
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(1)
Part A of the Project:
(a) Sub-loans for specific 6,330,000
100% of amounts
development projects,
disbursed
including incremental
working capital
(b) Sub-loans for free-
2,680,000
100% of amounts
standing, incremental
disbursed
working capital
(2)
TA Financing under Part B
   20,000
100% of amounts
of the Project
disbursed
(3)
Services in respect of the    20,000
100%
management of the FERD
(4)
Consultants' services and
   40,000
100%
training under Part C of the
Project for the PAU
(5)
Goods under Part C of the
100% of foreign
Project for:
expenditures,
100% of local
expenditures
(ex-factory cost);
and 90% of local
expenditures for other
items procured
locally
(a)
the PAU
   40,000
(b)
the FERD
   83,000
(6)
Audit of Project accounts
  110,000
100%
(7)
Refunding of Project
  640,000
Amounts due
Preparation Advance
pursuant to
Section 2.02 (c)
of this Agreement
(8)
Operating Expenditures  
   58,000
100% of expenditures
of the PAU
incurred in the
first year; 90% of
expenditures
incurred in the
second year; and 70% of
expenditures
incurred in the
third year
(9)
Unallocated
   79,000
TOTAL
10.100.000