Tanzania - Morogoro Industrial Complex Project : Loan 1385 - Loan Agreement - Conformed

CONFORMED COPY LOAN NUMBER 1385 T-TA LOAN AGREEMENT (Morogoro Industrial Complex Project) between UNITED REPUBLIC OF TANZANIA and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Dated April 6, 1977 LOAN NUMBER 1385 T-TA LOAN AGREEMENT AGR1TMENT, dated April 6, 1977, between UNITED REPUBLIC OF TANZANIA hereinafter called the Borrower) and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (hereinafter called the Bank). WHEREAS (A) by an agreement (hereinafter called the First Loan Agreement) of even date herewith between the Borrower and the Bank, the Bank is agreeing to assist in the financing of the Project described in Schedule 2 to the First Lcan Agreement by making a loan (hereinafter called the First Loan) in an amount in various currencies equivalent to eleven million five hundred thousand dollars ($11,500,000); (B) the Borrower has also requested the Bank to provide additional financial assistance towards the financing of the Project by making the present Loan (hereinafter called the Loan) as hereinafter provided; (C) the Bank has determined that the Borrower is eligible to receive the Loan as an intermediate term loan, as that term is defined in Resolution No. 75-111 of the Executive Directors of the Bank establishing an Interest Subsidy Fund for the Third Window (hereinafter called the Fund) and upon the *--s and conditions set forth in such Resolution; (D) the Administ.ator of the Fund (hereinafter called the Administrator), subject to the terms and conditions set forth in the Resolution referred to in (C) above, is obligated to pay to -2- the Bank semi-annually from the resources of the Fund an amount equal to four per cent (4%) per annum of the outstanding amounts of principal on intermediate term loans, of which this Loan is one; (E) the Borrower and. the Bank intend that the proceeds of the First Loan and of this Loan be disbursed pS rata on the basis of 1:1 ratio; and WHEREAS the Bank has agreed, on the basis inter alia of the foregoing, to make the Loan to the Borrower upon the terms and conditions hereinafter set forth; NOW THEREFORE the parties hereto hereby agree as follows: - 3 - 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 Guarantee ',reements of the Bank, dated March 15, 1974, with the same force and effect as if they were fully set forth herein (said General Conditions Applicable to Loan asd Guarantee Agreements of the Bank being herei-after cilled the General Conditions). Section 1.02. Wherever used in this *: ement, unless the context otherwise requires, the several terms defined in the General Conditions and in the Preamble to this Agreement have the respective meanings therein set forth. 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 referred to, an amount in various currencies equivalent to eleven million five hundred thousand dollars ($11,500,000). Section 2.02. (a) The amount of the Loan may be withdrawn from the Loan Account in accordance with the provisions of Schedule 1 to the First Loan Agreement, as such Schedule may be amended from time to time by agreement between the Borrower and the Bank, for expenditures 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 described in Schedule 2 to the First Loan Agreement and to be financed out of the proceeds of the Loan and in respect of interest and other charges on the Loan. (b) On each of the semi-annual interest payment dates specified in Section 2.06 of this Agreement, the Bank shall, on behalf of the Borrower, withdraw from the Loan Account and pay to itself such amounts as the Borrower shall be required to pay to the Bank on such date pursuant to Section 2.05 of this Agreement, on account of interest and other charges on the Loan accrued and payable on the date set forth, and up to the amount allocated therefor in Schedule 1 to the First Loan Agreement, as such Schedule may be amended from time to time by agreement between the Borrower and the Bank. - 5 - Section 2.03. The Closing Date shall be December 31, 1982 or such later date as the Bank shall otherwise establish. The Bqnk shall promptly notify the Borrower of such later date. Section 2.04. 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. Section 2.05. The Borrower shall pay interest at the rate of four and one-half per cent (4-1/2%) per annum on the principal amount of the Loan withdrawn and outstanding from time to time; provided, however, that if the Administrator shall at any time determine that the resources of the Fund shall not be sufficient to pay to the Bank at the next succeeding semi-annual interest payment date of the Loan the amount scheduled to be paid by the Administrator at that interest payment date as specified in paragraph (C) of the Preamble to this Agreement, the Borrower shall, upon notification by the Administrator of such determination and the amount of the resulting shortfall, pay additional interest on such principal amount of the Loan equal to such shortfall. Section 2.06. Interest and other charges shall be payable semi-annually on January 15 and July 15 in each year. Section 2.07. The Borrower shall repay the principal amount of the Loan in accordance with the amortization schedule set forth in the Schedule to this Agreement. -6- ARTICLE III Execution of the Project Section 3.01. Section 2.03 and Articles III and IV of the First Loan Agreement are incorporated in, and made a part of, this Loan Agreement.