Project Agreement C3916-TZ - Conformed

Page 1 CONFORMED COPY CREDIT NUMBER 3916 TA Project Agreement (Emergency Power Supply Project) between INTERNATIONAL DEVELOPMENT ASSOCIATION and TANZANIA ELECTRIC SUPPLY COMPANY LIMITED Dated July 5 , 2004 Page 2 CREDIT NUMBER 3916 TA PROJECT AGREEMENT AGREEMENT dated July 5, 2004, between INTERNATIONAL DEVELOPMENT ASSOCIATION (the Association) and TANZANIA ELECTRIC SUPPLY COMPANY LIMITED (TANESCO). WHEREAS (A) by the Development Credit Agreement of even date herewith between the United Republic of Tanzania (the Borrower) and the Association, the Association has agreed to make available to the Borrower an amount in various currencies equivalent to thirty million two hundred thousand Special Drawing Rights (SDR 30,200,000), on the terms and conditions set forth in the Development Credit Agreement, but only on condition that TANESCO agree to undertake such obligations toward the Association as are set forth in this Agreement; (B) by a subsidiary grant agreement to be entered into between the Borrower and TANESCO, the proceeds of the Credit provided for under the Development Credit Agreement will be made available to TANESCO on the terms and conditions set forth in said Subsidiary Grant Agreement; and WHEREAS TANESCO, in consideration of the Association