CONFORMED COPY Public Disclosure Authorized

LOAN NUMBER 1352-CO Public Disclosure Authorized

LOAN AGREEMENT

(Integrated Rural Development Project)

between

REPUBLIC OF COLOMBIA

and

INTERNATIONAL BANK FOR RECONSTRUCTION

Public Disclosure Authorized AND DEVELOPMENT Public Disclosure Authorized

Dated January 7, 1977 LOAN AGREEMENT

AGREEMENT, dated January 7, 1977, between REPUBLIC OF COLOMBIA (hereinafter called the Borrover) and INTERNATIONAL 'BANK FOR RECONSTRUCTION AND DEVELOPMENT (hereinafter called the Bank).

WHEREAS (A) the Borrower has requested the Bank to assist in the financing of the Project described in Schedule 2 to this Agree- ment by making the Loan as hereinafter provided;

(B) the Project will be carried out by Caja de Cr4dito Agrario, Industrial y Minero (hereinafter called Caja) and other entities with the Borrower's assistance and, as part of such assistance, the Borrower will make available to Caja, and through it to such other entities, if necessary, the proceeds of the Loan as herein- after provided; and

(C) the Bank is willing to make the Loan available to the Borrower upon the terms and conditions set forth hereinafter and in a project agreement of even date herewith between the Bank and Ca a;

NOW THEREFORE the parties hereto hereby agree as follows: - 2 -

ARTICLE I

General Conditions; Definitions

Section 1.01. The parties to this Agreement accept all the provisions of the General Conditions Applicable to Loan and Guar- antee Agreements of the Bank, dated March 15, 1974, with the same force and effect as if they were fully set forth herein (said Gen- eral Conditions Applicable to Loan and Guarantee Agreements of the Bank being hereinafter called the General Conditions).

Section 1.02. Wherever used in this Agreement, unless the context otherwise requires, the several terms defined in the Gen- eral Conditions and in the Preamble to this Agreement have the respective meanings therein set forth and the following additional terms have the following meanings:

(a) "Project Agreement" means the agreement between the Bank and Caja of even date herewith, as the same may be amended from time to time, and such term includes the schedule to the Project Agreement;

(b) "the symbol "Col.$" and the term "pe" mean the unit of the currency of tAe Borrower;

(c) "DNP" means Departamento Nacional de Planeaci6n;

(d) "ICA" means Instituto Colombiano Agropecuario; -3-

(e) "INDERENA" means Instituto Nacional de los Recursos Naturales Renovables y del Medio Ambiente;

(f) "CECORA" means Central de Cooperativas de la Reforma Agraria, Ltda.;

(g) "SENA" means Servicio Nacional de Aprendizaj,e;

(h) "ICCE" means Instituto Colombiano de Construcciones Escolares;

(i) "Minsalud" means Ministerio de Salud P6blica;

(j) "INAS" means Instituto Nacional de Salud;

(k) "Caminales" means Fondo Nacional de Caminos Vecinales;

(1) "ICEL" means Instituto Colombiano d Energia Ellctrica;

(m) "Project Entities" means collectively the entities re- ferred to in paragraphs (d), (e), (f), (g), (h), (i), (j), (k) and (1) hereof, and such term shall include any other agencies and legal entities of the Borrower which shall participate with Caja in the carrying out of the Project;

(n) "Project Area" means the area covered by the Municipios referred to in Schedule 4 to this Agreement as such Schedule may be amended from time to time; (o) "Small Farmer" means a farmer in the Project Area who (i) exploits a farm of less than twenty hectares; (ii) derives at least seventy per cent (TO%) of his income from farming and other local activities; and (iii) has gross assets (including assets of the spouse) not exceeding the equivalent of $15,000;

(p) "Marketing Association of Small Farmers" means a marketing association in which at least 75% of its members are Small Farmers;

(q) "Sub-loan" means a short- medium- or long-term loan made by C Ja to a Small Farmer under Part A of the Project, or to a Marketing Association of Small Farmers, under Part B of the Project, in accordance with the lending and operating policies and procedures set forth in Schedule 1 to the Project Agreement, as such Schedule may be amended from time to time;

(r) "Basic Laws" means Leyes Nos. 57 of 1931 and 33 of 1971 and Decretos Nos. 553 of 1932 and 33 of 1933, of the Re- public of Colombia, establishing and organizing Caja, as such Basic Laws may be amended from time to time;

(s) "Project Management Unit" means the unit to be estab- lished by the Borrower in accordance with paragraph (b) of Sec- tion 3.01 of this Agreement; and -5-

(t) "Project Administration and Monitoring Unit" means the unit in Caja referred to in paragraph (a) of Section 2.06 of the Project Agreement. - 6 -

ARTICLE II

The Loan

Section 2.01. The Bank agrees to lend to the Borrower, on the terms and conditions in the Loan Agreement set forth or re- ferred to, an amount in various currencies equivalent to fifty-two million dollars ($52,000,000).

Section 2.02. The amount of the Loan may be withdrawn from the Loan Account in accordance with the provisions of Schedule 1 to this Agreement, as such Schedule may be amended from time to time by agreement between the Borrower and the Bank, for expendi- tures made (or, if the Bank shall so agree, to be made) in respect of the reasonable cost of goods and services required for the Project and to be financed out of the proceeds of the Loan.

Section 2.03. Except as the Bank shall otherwise agree, con- tracts for the purchase of goods or for civil works to be financed out of the proceeds of the Loan, shall be procured in accordance with the provisions set forth or referred to in Section 2.04 of the Project Agreement.

Section 2.04. The Closing Date shall be December 31, 1982 or such later date as the Bank shall establish. The Bank shall promptly notify the Borrower of such later date.

Section 2.05. The Borrower shall pay to the Bank a commitment charge at the rate of three-fourths of one per cent (3/4 of 1%) per annum on the principal amount of the Loan not withdrawn from time to time. -7-

Section 2.06. The Borrower shall pay interest at the rate of eight and seventy hundredths per cent (8.70%) per annum on the principal amount of the Loan withdrawn and outstanding from time to time.

Section 2.07. Interest and other charges shall be payeble aemi-annually on May 1 and November 1 in each year.

Section 2.08. The Borrower shall repay the principal amount of the Loan in accordance with the amortization schedule set forth in Schedule 3 to this Agreement. -8 -

ARTICLE III

Execution of the Project

Section 3.01. (O ithout any limitation or restriction upon any of its other obligations under the Loan Agreement, the Borrower shall cause Ca and the Project Entities to perform, in accordance with the provisions of the Project Agreement and the agreements referred to in Section 2.02 of the Project Agreement, all their obligations 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 Caja and the Project Entities to perform such obligations, and shall not take or permit to be taken any action which would prevent or inter- fere with such performance.

(b) The Borrower shall, to the satisfaction of the Bank, op- erate under the responsibility of DNP a Project Management Unit to, inter alia: (i) manage, coordinate and integrate all Project activities with C9Ja and the Project Entities, with any other re- levant ministries, authorities and agencies of the Borrower, and with the Bank; and (ii) approve the annual programs and review the progress reports prepared by Caja and the Project Entities on the carrying out of the Project, and advise on policy matters; and shall provide, or cause to be provided, the Project Management Unit, promptly as needed, with such qualified and experienced sup- porting staff, facilities, funds and other resources as shall be required for the efficient operation thereof. -9-

(c) The Borrower shall make the proceeds of the Loan avail- able to C_qa and the Project Entities under an agreement to be entered into between the Borrower and Caja, under terms and con- ditions satisfactory to the Bank.

(d) The Borrower shall exercise its rights under the agree- ment referred to in paragraph (c) above in such manner as to pro- tect the interests of the Borrower and the Bank and to accomplish the purposes of the Loan, and except as the Bank shall otherwise agree, the Borrower shall not assign, nor amend, abrogate or waive such agreement or any provision thereof.

(e) Without limitation or restriction upon the provisions of paragraph (a) above, the Borrower shall: (i) make available to Ca and the Project Entities funds aggregating the equivalent of forty-two million nine hundred thousand dollars; and (ii) if there is reasonable cause to believe that the funds in (i) hereof will be inadequate to meet the estimated expenditures required for the carrying out of the Project, make or cause to be made arrange- ments, satisfactory to the Bank, to enable Caja and the Project Entities promptly to be provided with such funds as are needed to meet such expenditures.

Section 3.02. The Borrower shall take and shall cause its agencies and entities to take all action which shall be necessary on their part to enable Caja to perform its obligations under the Project Agreement and the agreements referred to in Section 2.02 of the Project Agreement, and to enable all Project Entities to carry out the activities required from them, and shall not take or permit to be taken any action which might interfere with the performance of such obligations. - 10 -

Section 3.03. The Borrower shall, to the satisfaction of the Bank:

(a) organize and maintain, for a period of not less than ten years from the Effective Date, a special evaluation group which shall (i) review continuously the progress of the Borrower's in- tegrated rural development program of which the Project is a part, and (ii) periodically evaluate the effects of such program;

(b) prepare or cause to be prepared semi-annual progress reports and annual evaluation reports on the Project;

(c) furnish to the Bank the reports in (b) hereof within two months from the end of each such period; and

(d) assign adequate staff to the said special evaluation group and provide it with the funds, facilities and other resources required to fulfill its purpose.

Section 3.04. (a) For the purpose of carrying out Part F (b) of the Project, the Borrower shall:

(i) operate within Minsalud a special unit for the Project Area; and

(ii) provide, or cause to be provided, the aforesaid unit, promptly as needed, with such supporting staff, facilities, funds and other resources as shall be required for the efficient operation thereof. - 11 -

(b) The Borrower shall establish and operate a communication system satisfactory to the Bank among all health posts, centers, ambulances and hospitals in the Project Area.

Section 3.05. The Borrower shall, by December 31, 1977 or such later date as the Bank shall agree, make arrangements satisfactory to the Bank for providing CECORA with technical assistance on marketing agricultural output from the areas covered by the in- tegrated rural development program of the Borrower of which the Project is a part.

Section 3.06. (a) The Borrower shall, within three months from the Effective Date or such later date as the Bank shall agree:

(i) initiate and operate thereafter, a system of national, departmental, municipal and community committees, satisfactory to the Bank, to give advice to the Project Management Unit with regard to the management, coordination and integration of the Project activities at the national, de- partmental, municipal and community levels; provided that each municipal and community committee need not be established before the year preceding the start of Project activities in the corresponding municipality or community; and

(ii) prepare and implement a program, satisfactory to the Bank, to ensure at the community and municipal - 12 -

levels an adequate involvement of farmers and asso- ciations of farmers in the carrying out of the Project.

(b) The Borrower shall provide, or cause to be provided, the committees referred to in paragraph (a) above, promptly as needed, with such supporting staff, facilities and resources as shall be required for the efficient operation thereof.

Section 3.07. The Borrover, the Bank and Caja shall annually (i) review the appropriateness of the lending terms and conditions set forth in Schedule 1 to the Project Agreement and (ii) agree on any amendments to such terms and conditions as shall be required for the carrying out of the lending program included in the Project. - 13 -

ARTICLE IV

Other Covenants

- Section 4.01. (a) It is the policy of the Bank, in making loans to, or with the guarantee of, its members not to seek, in - normal circumstances, special security from the member concerned but to ensure that no other external debt shall have priority over its loans in the allocation, realization or distribution of for- eign exchange held under the control or for the benefit of such member. To that end, if any lien shall be created on any public assets (as hereinafter defined), as security for any external debt, which will or might result in a priority for the benefit of the creditor of such external debt in the allocation, realization or distribution of foreign exchange, such lien shall, unless the Bank shall otherwise agree, ipso facto and at no cost to the Bank, equally and ratably secure the principal of, and interest and other charges on, the Loan, and the Borrower, in creating or per- mitting the creation of such lien, shall make express provision to that effect; provided, however, that, if for any constitutional or other legal reason such provision cannot be made with respect to any lien created on assets of any of its political or admini- strative subdivisions, the Borrower shall promptly and at no cost to the Bank secure the principal of, and interest and other charges on, the Loan by an equivalent lien on other public assets satisfac- tory to the Bank.

(b) The foregoing undertaking shall not apply to: (i) any lien created on property, at the time of purchase.thereof, solely as security for payment of the purchase price of such property; and (ii) any lien arising in the ordinary course of banking trans- actions and securing a debt maturing not more than one year after its date.

(c) As used in this Section, the term "nublic assets" means assets of the Borrower, of any political or administrative subdi- vision thereof and of any entity owned or controlled by, or oper- ating for the account or benefit of, the Borrower or any such sub- division, including gold and other foreign exchange assets held by any institution performing the functions of a central bank or ex- change stabilization fund, or similar functions, for the Borrower.

Section 4.02. Without limitation or restriction upon the provisions of paragraph (a) of Section 3.01 of this Agreement, the Borrower shall take and cause to be taken all action, including the provision of funds and resources, to ensure that the roads and education and health facilities constructed under the Project are adequately operated, maintained, renewed and repaired.

Section 4.03. Except as the Bank shall otherwise agree, the Borrover shall put into effect and maintain, or cause to be put into effect and maintained: (a) with respect to the works com- pleted under Part E (b) (c) of the Project, a system of charges for the recovery from the users of such works of all operating and maintenance costs, including depreciation and for the contri- bution by such users of a percentage, satisfactory to the Bank, of all investment costs; and (b) with respect to the works com- pleted under Part F (b) of the Project, a system of contributions by the community benefited by such works consisting of a percent- age, satisfactory to the Bank, of all investment costs. - 15 -

Section 4.04. The Borrower shall take all action, including the granting of all necessary authorizations, import licenses, foreign exchange permits and all other approvals required under the laws of the Borrower to ensure the timely procurement of the goods and services required for the Project. - 16 -

ARTICLE V

Remedies of the Bank

Section 5.01. For the purposes of Section 6.02 of the Gen- eral Conditions, the following additional events are specified:

(a) Ca or any of the Project Entities with which Caia shall have entered into an agreement pursuant to Section 2.02 of the Project Agreement shall have failed to perform any of its respective obligations under the Project Agreement or any such agreement;

(b) an extraordinary situation 'hall have arisen which shall make it improbable that Caja or any of the Project Entities will be able to perform any of its respective obligations under the Project Agreement or any such agreement;

(c) the Borrower or any other authority having jurisdiction shall have taken any action for the dissolution or disestablishment of Ca or any of the Project Entities or for the suspension of its operations related to the execution of the Project;

(d) the Borrower or any other authority having jurisdiction shall divest Caja or any of the Project Entities of any of the functions or powers vested in any of them as of the date of this Agreement, which are necessary for the efficient carrying out of the Project; and (e) the Basic Laws of CaJa or any provision thereof shall have been amended, suspended or abrogated so as to affect adversely the performance by Caja of its obligations under the Project Agree- ment.

Section 5.02. For the purposes of Section 7.01 of the Gen- eral Conditions, the following additional events are specified, namely, any of the events specified in paragraphs (a), (c), (d) and (e) of Section 5.01 of this Agreement shall occur and shall continue for a period of 60 days after notice thereof shall have been given by the Bank to the Borrower. - 18 -

ARTICLE VI

Effective Date; Termination

Section 6.01. The following events are specified as addi- tional conditions to the effectiveness of the Loan Agreement within the meaning of Section 12.01 (c) of the General Condi- tions:

(a) the execution and delivery of the Project Agreement on behalf of CaJa have been duly authorized or ratified by all necessary corporate and governmental action;

(b) the execution and delivery of the agreement referred to in Section 3.01 (c) of this Agreement on behalf of the Bor- rover and Caja, respectively, have been duly authorized or rati- fied,by all necessary corporate and governmental action;

(c) the execution and delivery of the agreements referred to in Section 2.02 of the Project Agreement on behalf of Caia and ICA, INDERENA, CECORA and SENA, respectively, have been duly authorized or ratified by all necessary corporate and govern- mental action; and

(d) the special evaluation group referred to in Section 3.03 (a) of this Agreement has been organized. - 19 -

Section 6.02. The following are specified as additional mat- ters, within the meaning of Section 12.02 (c) of the General Con- ditions, to be included in the opinion or opinions to be furnished to the Bank, namely, that each of the agreements referred to in Section 6.01 above has been duly authorized or ratified by, and executed and delivered on behalf of, the parties thereto and is legally binding upon them in accordance with its terms.

Section 6.03. The date April 28, 1977, is hereby specified for the purposes of Section 12.04 of the General Conditions. - 20 -

ARTICLE VII

Representative of the Borrover; Addresses

Section 7.01. The Ministro de Hacienda y Cr6dito Pfblico of the Borrower is designated as representative of the Borrower for the purposes of Section 11.03 of the General Conditions.

Section 7.02. The following addresses are specified for the purposes of Section 11.01 of the General Conditions:

For the Borrower:

Ministerio de Hacienda y Cr6dito PbGblico Palacio de los Ministerios Plaza San Agustfn Bogoti, Colombia

Cable address:

MINHACIENDA Bogot(

For the Bank:

International Bank for Reconstruction and Development 1818 H Street, N.W. Washington, D.C. 20433 United States of America

Cable address:

INTBAFRAD Washington, D.C. - 21 -

IN WITNESS WHEREOF, the parties hereto, acting through their representatives thereunto duly authorized, have caused this Agree- ment to be signed in their respective names in the District of Columbia, United States of America, as of the day and year first above written.

REPUBLIC OF COLOMBIA

By /s/ Alfonso Dfvila Authorized Representative

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

By /s/ Adalbert Krieger Regional Vice President Latin America and the Caribbean - 22 - 12-21-76

SCHEDULE 1

Withdrawal of the Proceeds of the Loan

1. The table below sets forth the Categories of items to be financed out of the proceeds of the Loan, the allocation of the amounts of the Loan to each Category and the percentage of expendi- tures for items so to be financed in each Category:

Amount of the % of Expenditures Loan Allocated of Caja and Proj- (Expressed in ect Entities to Category Dollar Equivalent) be Financed (1) Sub-loans under 21,600,000 49% of amounts Part A of the disbursed by Project Caja

(2) Sub-loans under 1,100,000 49% of amounts Part B of the disbursed by Project Caja

(3) Technical Assistance (Part C of the Proj- ect):

(a) Salaries and 5,200,000 36% other opera- tional expenses, office furniture and equipment, survey instru- ments, develop- ment of forest tree nurseries - 23 -

Amount of the % of Expenditures Loan Allocated of Caja and Proj- (Expressed in ect Entities to Category Dollar Equivalent) be Financed

(b) Vehicles 1,100,000 100% of foreign expenditures or 40% of the ex- factory cost of locally manufac- tured goods

(4) Training (Part D of the Project)

(a) Salaries and 1,900,000 36% other opera- tional expenses, and equipment

(b) Vehicles 100,000 100% of foreign expenditures or 40% of the ex- factory cost of locally manufac- tured goods

(5) Physical Infra- structure (Part E of the Project)

(a) Roads 3,500,000 36%

(b) Electric Power

(i) Civil works 1,000,000 36% Amount of the % of Expenditures Loan Allocated of CaJa and ProJ- (Expressed in ect Entities to Category Dollar Equivalent) be Financed

(ii) Cables and 1,100,000 100% of foreign equipment expenditures or 80% of the ex- factory cost of locally manufac- tured goods

(c) Water Supply

(i) Civil works 2,200,000 36%

(ii) Pipes and 1,000,000 100% of foreign equipment expenditures or 80% of the ex- factory cost of locally manufac- tured goods

(6) Social Infrastruc- ture (Part F of the Project)

(a) Education 1,100,000 36%

(b) Health

(i) Medical 1,100,000 100% of foreign equipment expenditures or and vehi- 40% of the ex- c1es factory cost of locally manufac- tured goods

(ii) Other 500,000 36% - 25 -

Amount of the % of Expenditures Loan Allocated of Caja and Proj- (Expressed in ect Entities to Category Dollar Equivalent) be Financed

(7) Project Management Unit (Section 3.01 (b) of Loan Agree- ment):

Salaries and other 200,000 36% operational expenses, office furniture and equipment

(8) Project Administra- tion and Monitoring Unit (Section 2.06 of the Project Agree- ment):

(a) Salar'es and 1,000,000 36% other opera- tional expenses, office furniture and equipment

(b) Vehicles 300,000 100% of foreign expenditures or 40% of the ex- factory cost of locally manufac- tured goods

(9) Unallocated 8,000,000

TOTAL 52,000,000 - 26 -

2. For the purpose of this Schedule, the term "foreign expendi- tures" means expenditures in the currency of a country other than the Borrower and for goods or services supplied from the territory of any country other than the Borrower.

3. The disbursement percentages have been calculated in compli- ance with the policy of the Bank that no proceeds of the Loan shall be disbursed on account of payments for taxes levied by, or in the territory of, the Borrower on goods or services, or on the importation, manufacture, procurement or supply thereof; to that end, if the amount of any such taxes levied on or in respect of any item to be financed out of the proceeds of the Loan decreases or increases, the Bank may, by notice to the Borrower, increase or decrease the disbursement percentage then applicable to such item as required to be consistent with the aforementioned policy of the Bank.

4. Notwithstanding the provisions of paragraph 1 above, no with- drawals shall be made in respect of payments made for:

(a) expenditures prior to the date of this Agreement, except that withdrawals, in an aggregate amount not exceeding the equiva- lent of $500,000, may be made in respect of (i) engineering studies under Category (5) and (ii) Categories (3) (a) and (4) (a) on account of payments made for such expenditures before that date but after July 1, 1976; and

(b) expenditures of any Project Entity (other than ICA, INDERENA, CECORA and SENA) until evidence satisfactory to the Bank has been furnished to the Bank: - 27 -

(i) that the agreement between CaJa and such Project Entity, provided for in Section 2.02 of the Project Agreement, has been duly executed and delivered; and

(ii) that there has been furnished to the Bank an opinion or opinions satisfactory to the Bank of counsel ac- ceptable to the Bank that such agreement has been duly authorized or ratified by, and executed and delivered on behalf of Caja and the respective Proj- ect Entity and is legally binding upon Caja and the Project Entity in accordance with its terms.

5. Notwithstanding the allocation of an amount of the Loan or the disbursement percentages set forth in the table in paragraph 1 above, if the Bank has reasonably estimated that the amount of the Loan then allocated to any Category will be insufficient to finance the agreed percentage of all expenditures in that Category, the Bank may (i) reallocate, at the request of the Borrower, to such Category, to the extent required to meet the estimated short- fall, proceeds of the Loan which are then allocated to another Category and which in the opinion of the Bank and the Borrower are not needed to meet other expenditures; and (ii) if such re- allocation cannot fully meet the estimated shortfall, reduce, by notice to the Borrower, the disbursement percentage then appli- cable to such expenditures in order that further withdrawals under such Category may continue until all expenditures thereunder shall have been made. - 28 -

6. If the Bank shall have reasonably determined that the pro- curement of any item in any Category is inconsistent with the procedures set forth or referred to in this Agreement, no expen- ditures for such item shall be financed out of the proceeds of the Loan and the Bank may, without in any way restricting or lim- iting any other right, power or remedy of the Bank under the Loan Agreement, by notice to the Borrower, cancel such amount of the Loan as, in the Bank's reasonable opinion, represents the amount of such expenditures vhich vould otherwise have been eligible for financing out of the proceeds of the Loan. - 29-

SCHEDULE 2

Description of the Project

The Project is part of a program of the Borrower to develop agricultural production and raise living standards in poor rural areas in Colombia by providing credit and technical services, im- proving social services and carrying out investments in infrastruc- ture.

The Project consists of the following Parts:

Part A: Agricultural Production Credit

Provision to Small Farmers of: i) short-term Sub-loans to finance seasonal farm operational expenses; (ii) medium-term Sub- loans to finance investment costs for crops (except coffee), minor livestock species, on-farm stores and minor home improvements re- lated to hygiene; and (iii) long-term Sub-loans to finance invest- ment costs for dairy development and forestry.

Part B: Agricultural Marketing Credit

Provision to Marketing Associations of Small Farmers of: (i) short-term Sub-loans for working capital; (ii) medium-term Sub- loans to finance the purchase of trucks; and (iii) long-term Sub- loans to finance investment costs in produce collection centers and produce stores. - 30 -

Part C: Technical Assistance

Provision of technical assistance to beneficiaries under Parts A and B of the Project, including, inter alia, assistance in the preparation of technical and financial plans for the credit applications under such Parts of the Project.

Part D: Training

Training of staff of Caja and the Project Entities engaged in services related to the carrying out of the Project and of beneficiaries under Parts A and B of the Project, under programs satisfactory to the Bank.

Part E: Physical Infrastructure

(a) Construction of about 313 kilometers of new rural roads and improvement of about 647 kilometers of existing rural roads in the Project Area;

(b) Construction of electric power connecting lines and dis- tribution systems benefitting approximately 14,335 fam- ilies in the Project Area; and

(c) Construction, expansion or improvement of about 248 water supply systems in the Project Area. - 31 -

Part F: Social Infrastructure

(a) Purchase of furniture for about 2,300 existing classrooms, plus about 3,800 teaching aid kits; and

(b) Construction and equipping of 75 new health posts and restructuring and improvement of 26 existing health posts, 8 health centers and 17 local hospitals; and construction of latrines at public places.

* * *

The Project is expected to be completed by December 31, 1981. SCHEDULE 3

Amortization Schedule

Payment of Principal Date Payment Due (expressed in dollars)*

On each May 1 and November 1 Beginning May 1, 1980 through November 1, 1992 1,925,000 On May 1, 1993 1,950,000

To the extent that any portion of the Loan is repayable in a currency other than dollars (see General Conditions, Section 4.02), the figures in this column represent dollar equiva- lents determined as for purposes of withdrawal. - 33 -

Premiums on Prepayment

The following percentages are specified as the premiums pay- able on repayment in advance of maturity of any portion of the principal amount of the Loan pursuant to Section 3.05 (b) of the General Conditions:

Time of Prepayment Premium

Not more than three years 1.55% before maturity

More than three years but not more than six years before maturity 3.05%

More than six years but not more than eleven years before maturity 5.65%

More than eleven years but not more than fifteen years before maturity 7.70%

More than fifteen years before maturity 8.70% SCHEDULE 4

Municipios

Imues San Sebastitn Tena Funes Almaguer Sn. Antonio Ospina Patia (El Bordo) de Tena Sampuyes Balboa Quipile Guachucal La Sierra Bojaca Cumbal La Vega Zipac6n Ipiales Rosas Anolaima Pupiales Sotara Ospina Pérez Gualmat9n Purace San Bernardo Iles Popayán Pandi Potosf Totoro Arbelaez Puerres Cajibio Tibacuy Guaspud Morales Pasca C6rdoba Piendamo Fusagasuga Contadero Silvia Silvania Aldana Timbio Cabrera Pasto El Tambo Sn. Juan Tangua Inza de Rioseco Yacuanquer Belalcázar (Páez) Chaguani Tuquerres Girardot Viani Guaitarilla Ricaurte Guayabal de Santacruz Nilo Siquima Ancuya Agua de Dios Bituima Samaniego Mariño Facatativa La Florida Sufrez San Francisco Sandona Guataqui Supata Linares Jerusalén Vergara Albtn Puli Nimaima Buesaco Cunday La Vega El Tambo Icononzo Villeta La Cruz Melgar Quebradanegra Arboleda Carmen de Apicala Utica San Lorenzo Villarrica Albtn Col6n La Mesa La Peña San Pablo Tocaima Gutiérrez La Unién Viota Quetame Taminango Rafael Reyes Fosca Mercaderes Anapoima Caqueza Bolfvar El Colegio Une - 35 -

Municipios

Chipaque Ubaque Fomeque Choachi Sta. Rosa de Osos Angostura Campamento Yarumal Valdivia San J. de la Montaña San Andrés Ituango Don Matfas San Pedro Belmira Entrerfos Alejandrfa San Rafael San Carlos San Luis San Vicente Guarne Sons6n Nariño Argelia Cocorna Abejorral La Uni6n La Ceja Retiro Rfonegro Marinilla Carmen de Viboral Granata Santuario Peñol Guatapé Concepci6n