Resolution 093/2001

BOARD RESOLUTION NO. 093/2001
SUBJECT: INTERNATIONAL OPERATIONS MANAGEMENT - MODIFICATION OF THE OPERATIONAL REGULATION OF THE GERMAN AID IN GOODS III CREDIT.

HAVING REVIEWED:
Law 1670 of October 31, 1995.
Republic Law 1244 of June 18, 1991, which ratifies the Financial Cooperation Agreement signed between the Republic of Bolivia and the Federal Republic of Germany, which includes the Aid in Goods III project. Supreme Decree 23192 of June 25, 1992, which approves the German Aid in Goods III Credit and designates the Central Bank of Bolivia as its administrator. The Aid in Goods III Credit Contract signed between Kreditanstalt für Wiederaufbau and the Republic of Bolivia on June 26, 1992, for 20,000,000.00 German Marks (DEM), and the Separate Agreement of the same date determining the disbursement procedure through Letters of Credit or Direct Payments, to be carried out by Kreditanstalt für Wiederaufbau and the Central Bank of Bolivia. The Subsidiary Credit Agreement signed on October 20, 1992, between the Ministry of Finance and the Central Bank of Bolivia. Board Resolution No. 003/93 of January 14, 1993, which approves the Operational Regulation of the German Aid in Goods III Credit.

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The A.J.I. Financing Contract No. 009/94 signed on July 27, 1994, between the Ministry of Finance, the Central Bank of Bolivia, and the Autonomous Administration for Sanitary Works in Potosí (AAPOS), through which DEM 475,502.67 from the resources of the German Aid in Goods III Credit are transferred to be administered by AAPOS. Board Resolution No. 147/95 of November 21, 1995, which authorizes the debt substitution of CORDEPAZ for DEM 4,729,759.73 by the General Treasury of the Nation.

The debt assignment and recognition contract signed on May 15, 1997, between the Ministry of Finance, the Central Bank of Bolivia, Bolivian State Petroleum Company (YPFB), and the Mixed Economy Company Transportes de Hidrocarburos Sociedad de Economía Mixta – TRANSREDES S.A.M., through which DEM 4,783,277.42 are transferred to TRANSREDES, releasing YPFB from this obligation. The Financing Contract No. 004/93 and its Amendment signed on March 2, 1993, and November 12, 1998, respectively, between the Ministry of Finance, the Central Bank of Bolivia, and the Vinto Metallurgical Company, through which DEM 4,008,963.23 are transferred to the latter instead of the DEM 10,000,000.00 from the original allocation. The notes VIPFE/DGFE/NEG-5291/97 and D.C.B. Off. 05-129-98 dated December 24, 1997, and January 21, 1998, through which the Ministry of Finance requested the disbursement of DEM 3,802,496.95 from the resources of the German Aid in Goods III Credit to be administered by the Vice Ministry of Public Investment and External Financing (VIPFE) for the Civil Service Program. The notes DGCP 05-016 UDPE 857/01 and 1002 dated July 12, 2001, and August 9, 2001, from the Ministry of Finance, requesting the transfer of DEM 2,200,000.00 from the resources of the German Aid in Goods III Credit to Compañía Minera Colquiri S.A. The GOI Report No. 009/2001 from the International Operations Management of September 19, 2001. The SAJU-1219/2001 Report from the Legal Affairs Management of September 21, 2001.

CONSIDERING:
That the resources disbursed in the amount of DEM 3,802,496.95, administered by VIPFE for the Civil Service Program, are being paid by the General Treasury of the Nation under the same financial conditions as those held with the external creditor KFW. That to effectuate the transfer of DEM 2,200,000.00 from the resources of the German Aid in Goods III Credit to Compañía Minera Colquiri S.A., it is necessary to modify the Operational Regulation approved by Board Resolution No. 003/93.

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That according to the SAJU-1219/2001 Report from the Legal Affairs Management, the Central Bank of Bolivia (BCB) must be released from its status as borrower for the DEM 2,200,000.00, so that the General Treasury of the Nation (TGN) can transfer them to Compañía Minera Colquiri S.A.

THEREFORE,
THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BOLIVIA RESOLVES:

Article 1.- Modify clause 2.3.1. of the Operational Regulation of the German Aid in Goods III Credit approved by Board Resolution No. 003/93, as follows:

SAYS:
2.3.1. The public companies and institutions benefiting from the loan contract as well as the assigned amounts are the following:
2.3.1.1. VINTO METALLURGICAL COMPANY
DEM 10,000,000.00
(Arsenic dust environmental pollution equipment)
2.3.1.2. CORDEPAZ
DEM 5,000,000.00
(Heavy construction equipment and machinery for roads)
2.3.1.3. Y.P.F.B.
DEM 4,772,000.00
(Operations materials and equipment)
2.3.1.4. A A S A N A
DEM 228,000.00
(Payment for freight transport – airport equipment) __________________________ TOTAL DEM 20,000,000.00

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SHOULD SAY:
“The beneficiary institutions with the loan contract as well as the assigned amounts are the following:
2.3.1.1. VINTO METALLURGICAL COMPANY DEM 4,008,963.23
2.3.1.2. GENERAL TREASURY OF THE NATION DEM 4,729,759.73
2.3.1.3. AAPOS DEM 475,502.67
2.3.1.4. YPFB DEM 4,783,277.42

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TOTAL DEM 13,997,503.05”

Article 2.- Authorize the Presidency of the BCB to sign the amendment to the Subsidiary Credit Agreement signed on October 20, 1992, between the Ministry of Finance and the Central Bank of Bolivia, to release the Issuing Institute from the obligations for DEM 3,802,496.95 disbursed to the Vice Ministry of Public Investment and External Financing and DEM 2,200,000.00 to be disbursed to Compañía Minera Colquiri S.A., which will be assumed by the General Treasury of the Nation.

Article 3.- The Presidency and the General Management are charged with the execution and compliance of this Resolution.

La Paz, September 25, 2001

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Juan Antonio Morales A.

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Armando Pinell S. Juan Medinaceli V.

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Armando Méndez M. Roberto Camacho S.

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Javier Comboni S.