Project Agreement, CCFB C3991-MZ Conformed

Page 1 CREDIT NUMBER 3991 MOZ Project Agreement (Beira Railway Project) between INTERNATIONAL DEVELOPMENT ASSOCIATION and COMPANHIA DOS CAMINHOS DE FERRO DA BEIRA, S.A.R.L. Dated , 2004 Page 2 CREDIT NUMBER 3991 MOZ PROJECT AGREEMENT AGREEMENT dated , 2004, between INTERNATIONAL DEVELOPMENT ASSOCIATION (the Association) and COMPANHIA DOS CAMINHOS DE FERRO DA BEIRA, S.A.R.L (CCFB); WHEREAS (A) by the Development Credit Agreement of even date herewith between Republic of Mozambique (the Borrower) and the Association, the Association has agreed to make available to the Borrower an amount in various currencies equivalent to seventy five million six hundred thousand Special Drawing Rights (SDR 75,600,000), on the terms and conditions set forth in the Development Credit Agreement, but only on conditions that CCFB agree to undertake such obligations toward the Association as are set forth in this Agreement; (B) by a Tripartite Agreement to be entered into among the Borrower, CCFB and CFM, part of the proceeds of the credit provided for under the Development Credit Agreement will be made available to CCFB on the terms and conditions set forth in the said Tripartite Agreement; and WHEREAS CCFB, in consideration of the Association