Tanzania - Program Credit : Credit 0688 - Credit Agreement - Conformed

CONFORMED COPY CREDIT NUMBER 688-TA DEVELOPMENT CREDIT AGREEMENT (Program Credit) between UNITED REPUBLIC OF TANZANIA and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated March 24, 1977 DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated March 24, 1977, between UNITED REPUBLIC OF TANZANIA (hereinafter called the Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION (hereinafter called the Association). - 2 - ARTICLE I General Conditions; Definitions Section 1.01. The parties to this Agreement accept all the provisions of the General Conditions Applicable to Development Credit Agreements of the Association, dated March 15, 1974, with the same force and effect as if they were fully set forth herein (said General Conditions Applicable to Development Credit Agree- ments of the Association being hereinafter called the General Conditions). Section 1.02. Wherever used in this Agreement, unless the context otherwise requires, the several terms defined in the General Conditions have the respective meanings therein set forth and the following additional terms have the following meanings: (a) "Customs Co-operation Council" means the Customs Co- operation Council established by a convention signed in Brussels on December 15, 1950. (b) "BTN" means the Nomenclature for the Classification of Goods in Customs Tariffs established by the Convention establishing the Customs Co-operation Council, as amended'on January 1, 1972. (c) "Project Account" means the account established in the name of the Borrower pursuant to Section 3.02 (a) of this Agreement. -3- ARTICLE II The Credit Section 2.01. The Association agrees to lend to the Borrower, on the terms and conditions in the Development Credit Agreement set forth or referred to, an amount in various currencies equiv- alent to fifteen million dollars ($15,000,000). Section 2.02. The amount of the Credit may be withdrawn from the Credit Account in accordance with the provisions of Schedule 1 to this Agreement, as such Schedule may be amended from time to time by agreement between the Borrower and the Association, for expenditures made (or, if the Association shall so agree, to be made) in respect of the reasonable cost of the imported goods in- cluded in such Schedule and to be financed out of the proceeds of the Credit. Section 2.03. Except as the Association shall otherwise agree, goods imported by the public sector under the Project described in Schedule 2 to this Agreement and to be financed out of the proceeds of the Credit shall be procured in accordance with the Borrower's usual procurement procedures. Section 2.04. The Closing Date shall be March 31, 1978, or such later date as shall be agreed between the Borrower and the Association. Section 2.05. The Borrower shall pay to the Association a service charge at the rate of three-fourths of one per cent (3/4 of 1%) per annum on the principal amount of the Credit withdrawn and outstanding from time to time. Section 2.06. Service charges shall be payable semi-annually on January 1 and July 1 in each year. Section 2.07. The Borrower shall repay the principal amount of the Credit in semi-annual installments payable on each January 1 and July 1 commencing July 1, 1987, and ending January 1, 2027, each installment to and including the installment payable on Jan- uary 1, 1997 to be one-half of one per cent (1/2 of 1%) of such principal amount, and each installment thereafter to be one and one-half per cent (1-1/2%) of such principal amount. Section 2.08. The currency of the United Kingdom of Great Britain and Northern Ireland is hereby specified for the purposes of Section 4.02 of the General Conditions. -5- ARTICLE IL Execution of the Project Section 3.01. The Borrower shall carry out the Project, or cause it to be carried out, with due diligence and efficiency. Section 3.02. (a) The Borrower shall cause the Bank of Tanzania to open an account (hereinafter referred to as the Proj- ect Account) in the name of the Borrower, and to credit to the Project Account, upon each withdrawal from the Credit Account, the equivalent in Tanzanian Shillings of the currency or currencies withdrawn from the Credit Account (such equivalent to be deter- mined as of the respective dates of such withdrawals). (b) Except as the Association shall otherwise agree, and subject to the provisions of subsection (c) hereinafter, the amounts credited to the Project Account shall be used exclusively to finance expenditures included under Votes of the Borrower's 1976/77 and 1977/78 Development Budgets for such of the Borrower's Ministries and Offices as are listed in Schedule 3 to this Agree- ment. (c) Notwithstanding the provisions of subsection (b) here- inabove and except as the Association shall otherwise agree, no withdrawals shall be made from the Project Account in respect of expenditures for goods or services financed or to be financed from sources outside Tanzania. - 6 - (d) The Borrower shall furnish to the Association on a quarterly basis, a certification by its Accountant General in such form and detail as shall be reasonably requested by the Association, showing expenditures actually made under the respective Vote of its 1976/77 or 1977/78 Development Budget for each of the Borrower's Ministries and Offices listed in Schedule 3 to this Agreement, and the amounts withdrawn from the Project Account in respect of such expenditures. (e) The Borrower shall cause the Project Account to be audited by its Auditor General, and shall transmit to the Associ- ation, not later than September 30, 1978, certified copies of the financial statements in connection with the Project Account, and a signed copy of the Auditor General's report. Section 3.03. The Borrower undertakes to insure, or make adequate provision for the insurance of, the imported goods to be financed out of the proceeds of the Credit against hazards incident to the acquisition, transportation and delivery thereof to the place of use or installation, and for such insurance any indemnity shall be payable in a currency freely usable by the Borrower to re- place or repair such goods. Section 3.04. The Borrower: (i) shall maintain records ade- quate to record the progress of the Project (including the cost thereof) and to identify the imported goods financed out of the proceeds of the Credit; (ii) shall enable the Association's accred- ited representatives to inspect any relevant records and documents; and (iii) shall furnish or cause to be furnished to the Association all such information as the Association shall resonably request concerning the Project, the expenditure of the proceeds of the Credit and the goods financed out of such proceeds. Section 3.05. The Borrower shall cause the proceeds of the Credit to be used exclusively for the Project. -8- ARTICLE IV Other Covenants Section 4.01. The Borrower shall maintain or cause to be maintained records adequate to reflect in accordance with consis- tently maintained appropriate accounting practices the operations, resources and expenditures, in respect of the Project, of the de- partments or agencies of the Borrower responsible for carrying out the Project or any part thereof. -9- ARTICLE V Terminat ion Section 5.ul. The date June 28, 1977, is hereby specified for the purposes of Section 12.04 of the 'ene: e Condi-ions. - 10 - ARTICLE VI Representative of the Borrower; Addresses Section 6.01. The Minister of the Borrower at the time responsible for Finance is designated as representative of the Borrower for the purposes of Section 11.03 of the Gen- eral Conditions. Section 6.02. The following addresses are specified for the purposes of Section 11.01 of the General Conditions: For the Borrower: The Principal Secretary Ministry of Finance and Planning P.O. Box 9111 Dar es Salaam United Republic of Tanzania Cable address: TREASURY Dar es Salaam For the Association: International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Cable address: INDEVAS Washington, D.C. - 11 - IN WITNESS WHEREOF, the parties hereto, acting through their representatives thereunto duly authorized, have caused this Agree- ment to be signed in their respective names in the District of Columbia, United States of America, as of the day and year first above written. UNITED REPUBLIC OF TANZANIA By /s/ Paul Bomani Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By /s/ W.A. Wapenhans Regional Vice President Eastern Africa - 12 - SCHEDULE 1 Withdrawal of the Proceeds of the Credit 1. The imported items that may be financed out of the proceeds of the Credit shall be those included in the BTN Chapters listed in the table below, provided that any such item included in any of the BT1 Headings listed in the table below as "Excluded P'N Headings" may not be so financed: Excluded BTN Section Number and Title BTN Chapter BTN Headings II Vegetable Prd.cts 13 V Mineral Products 25-26 VI Products of the 28-30 Chemical and Allied 32 Industries 33 33.04, 33.06 34 34.01, 34.03, 34.05, 34.06, 34.07 35 38 VII Artificial Resins and 39 39.07 Plastic Materials, 40 40.13, 40.14 Cellulose Esters and Ethers, and Articles Thereof; Rubber, Synthetic Rubber, Factice, and Articles Thereof - 13 - Excluded BTN Section Number and Title BTN Chapter BTN Headings VIII Raw Hides and Skins, 43 43.03, 43.04 Leather, Furskins and Articles Thereof; Saddlery and Harness; Travel Goods, Handbags and Similar Containers; Articles of Gut (Other than Silk-Worm Gut) IX Wood and Articles of 44 44.01, 44.24, Wood; Wood Charcoal; 44.27, 44.28 Cork and Articles of 45 45.03 Cork; Manufactures of 46 46.01, 46.03 Straw, of Esparto and of Other Plaiting Materials; Basketware and Wickerwork X Paper-Making Material; 47-49 Paper and Paperboard and Articles Thereof XI Textiles and Textile 50-57 Articles 58 58.01, 58.02, 58.03, 58.04 59 6o 60.02, 60.03, 60.o4, 60.05, 60.06 XIII Articles of Stone, of 68 Plaster, of Cement, of 69 69.11, 69.12, Asbestos, of Mica and 69.13, 69.14 of Similar Materials; 70 70.13, 70.19, Ceramic Products; Glass 70.21 and Glassware - l4 - Excluded BTN Section Number and Title BTN Chapter BTN Headings XV Base Metals and Articles 73 73.38 of Base Metal 74 74.17, 74.18, 74.19 75 76 76.15, 76.16 77-81 82 82.08, 82.11, 82.12, 82.13, 82.14, 82.15 83 83.06, 83.07, 83.12 XVI Machinery and Mechanical 84 84.12, 84.15 Appliances; Electrical 85 85.07 Equipment; Parts Thereof XVII Vehicles, Aircraft, and 86-87 87.02(A), 87.08 Parts Thereof; Vessels 88-89 and Certain Associated Transport Equipment XVIII Optical, Photographic, 90 90.07 Cinematographic, Measuring, Checking, Precision, Medical and Surgical Instruments and Apparatus; Clocks and Watches; Musical Instruments; Sound Recorders and Reproducers, Magnetic; Parts Thereof XX Miscellaneous Manu- 94 94.01, 94.03, factured Articles 94.04 - 15 - 2. Notwithstanding the provisions of paragraph 1 above, no with- drawals shall be made in respect of: (a) expenditures in the currency of the Borrower, or for goods or services supplied from, the territory of the Borrower; (b) expenditures prior to the date of this Agreement; (c) payments for taxes levied by, or in the territory of, the Borrower on goods or services, or on the importation, manu- facture, procurement or supply thereof; (d) expenditures for goods to be supplied under a contract which any official bilateral lender or any international develop- ment finance institution shall have agreed to finance; e) expenditures for goods procured under invoices for less than $1,000 equivalent; and (f) expenditures for any goods imported by the public sector if the Association shall have reasonably determined that the pro- curement thereof has been inconsistent with the procedures referred to in Section 2.03 of this Agreement. - 16 - SCHEDULE 2 Description of the Project The Project consists of the provision by the Borrower of foreign exchange required for the import into Tanzania by the public and private sectors of essential capital and intermediate goods and raw materials as listed in Schedule 1 to this Agreement, and of the implementation by the Borrower of such parts of its 1976/77 and 1977Y78 investment program as are to be financed under Votes of the Borrower's 1976/77 and 1977/78 Development Budgets for such of the Borrower's Ministries and Offices as are listed in Schedule 3 to this Agreement. - 17 - SCHEDULE 3 1976/77 and 1977/78 Development Budgets; Ministries and Offices of the Borrower referred to in Section 3.02 of this Agreement and in Schedule 2 to this Agreement 1. Prime Minister and Second Vice President's Office 2. Ministry of Agriculture 3. Ministry of National Education 4. Ministry of Commerce 5. Ministry of Industries 6. Ministry of Communications and Transport T. Ministry of Lands, Housing and Urban Development 8. Ministry of Finance and Planning 9. Ministry of Health 10. Ministry of Natural Resources and Tourism 11. Ministry of Water, Energy and Minerals 12. Ministry of Works