Project Agreement C3888-TZ - Conformed

Page 1 CONFORMED COPY CREDIT NUMBER 3888 TA Project Agreement (Central Transport Corridor Project) between INTERNATIONAL DEVELOPMENT ASSOCIATION and TANZANIA RAILWAYS CORPORATION Dated Mat 31, 2004 Page 2 CREDIT NUMBER 3888 TA PROJECT AGREEMENT AGREEMENT, dated May 31, 2004 between INTERNATIONAL DEVELOPMENT ASSOCIATION (the Association) and TANZANIA RAILWAYS CORPORATION (TRC). WHEREAS (A) by the Development Credit Agreement of even date herewith between 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 eighty one million and six hundred thousand Special Drawing Rights (SDR 81,600,000), on the terms and conditions set forth in the Development Credit Agreement, but only on condition that TRC 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 TRC, part of the proceeds of the Credit provided for under the Development Credit Agreement will be granted to TRC, on the terms and conditions set forth in the said Subsidiary Grant Agreement; and WHEREAS TRC, in consideration of the Association