Tanzania - Mwanza-Shinyanga Rural Development Project (Loan 2-TAN between GoT and IFAD) : Credit 0803 - Loan Agreement - Conformed

CONFORMED COPY LOAN NUMBER 2-TAN Loan Agreement (Mkwanza/Shinyanga Rural Development Project) between UNITED REPUBLIC OF TANZANIA and INTERNATIONAL FUND FOR AGRICULTURAL DEVELOPMENT Dated June 14, 1978 LOAN NUMBER 2-TAN LOAN AGREEMENT AGREEMENT, dated as of June 14, 1978, between UNITED REPUBLIC OF TANZANIA (hereinafter called the Borrower) and INTERNATIONAL FUND FOR AGRICULTURAL DEVELOPMENT (hereinafter called the Fund). WHEREAS (A) the Borrower has requested the Fund to assist in the financing of a rural development project by extending the Loan as hereinafter provided; and (B) by agreement of even date herewith (hereinafter called the IDA Credit Agreement), the International Development Associa- tion (the Association) has agreed to make a development credit (hereinafter called the IDA Credit) to the Borrower in an aggre- gate principal amount equivalent to $12,000,000 to assist in financing the same project on the terms and conditions therein set forth; and (C) the Borrower, the Association and the Fund have entered into an agreement of even date herewith (hereinafter called the Joint Project Agreement) providing for the description of the project to be financed by the Loan and the IDA Credit and for certain other matters of common interest in connection with the financing and execution of the said project; WHEREAS the Fund has agreed, on the basis inter alia of the foregoing, to extend the Loan to the Borrower upon the terms and conditions hereinafter set forth; NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I General Conditions; Definitions; Cooperating Institution Section 1.01. The parties to this Agreement accept all the provisions of the General Conditions Applicable to Loan and Guarantee Agreements of the Fund, dated December 15, 1977, with the same force and effect as if they were fully set forth herein, subject, however, to the addition in Section 4.01 thereof of the following new paragraph: "(d) in various currencies equivalent to an amount in United States dollars" (said General Conditions Applicable to Loan and Guarantee Agreements of the Fund being hereinafter called the General Conditions). -2- 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. Section 1.03. The Association is appointed as the Cooperating Institution for the administration of the Loan, with the responsi- bilities set forth in Article V of the General Conditions, and the Joint Project Agreement shall be the Loan Administration Agreement defined in the General Conditions. ARTICLE II The Loan Section 2.01. The Fund agrees to lend to the Borrower, on the terms and conditions in the Loan Agrezment set forth or referred to, an amount in various currencies equivalent to twelve million dollars ($12,000,000). Section 2.02. The amount of the Loan may be withdrawn from the Loan Account and used for the Project in accordance with the provisions of the Joint Project Agreement. Section 2.03. The Closing Date shall be December 31, 1984, or such later date as the Fund shall establish. The Fund shall promptly notify the Borrower of such later date. Section 2.04. The Borrower shall pay to the Fund a service charge at the rate of one per cent (1.O) per annum on the prin- cipal amount of the Loan withdrawn and outstanding from time to time. Section 2.05. Except as the Fund and the Borrower shall otherwise agree, a charge at the rate of 0.5% per annum shall be paid by the Borrower to the Fund on the principal amount outstand- ing of any special commitment entered into by or on behalf of the Fund, at the request of the Borrower pursuant to Section 6.02 of the General Conditions. Section 2.06. The Borrower shall repay the principal amount of the Loan in equal semiannual installments payable on each March 15 and September 15 commencing September 15, 1988 and ending March 15, 2028. -3- ARTICLE III Execution of the Project Section 3.01. (a) The Borrower shall punctually perform all its obligations set forth in the Joint Project Agreement as if they were fully set forth herein. ARTICLE IV Remedies of the Fund Section 4.01. For the purposes of Section 9.02 of the General Conditions, the following additional events are specified pursuant to paragraph (1) thereof: (a) The Tanzania Rural Development Bank shall have failed to perform any of its obligations under the Subsidiary Loan Agreement. (b) (i) Subject to subparagraph (ii) of this paragraph: (A) the right of the Borrower to withdraw the proceeds of any grant or loan made to the Borrower for the financing of the Project shall have been suspended, cancelled or terminated in whole or in part, pursuant to the terms of the agreement providing therefor, or (B) such loan shall have become due and payable prior to the agreed maturity therefor. (ii) Subparagraph (i) of this paragraph shall not apply if: (A) such suspension, cancellation, termination or prematuring is not caused by the failure of the Borrower to perform any of its obligations under such agreement, and (B) adequate funds for the Project are available to the Borrower from other sources on terms and conditions consis- tent with the obligations of the Borrower under this Agreement. Section 4.02. For the purposes of Section 9.07 of the General Conditions, the following events are specified pursuant to para- graph (h) thereof, namely, that, any of the events specified in -4- paragraphs (a) and (b) (i) (B) of Section 4.01 of this Agreement shall occur. ARTICLE V Effective Date; Termination Section 5.01. The following events are specified as addi- tional conditions to the effectiveness of the Loan Agreement within the meaning of Section 10.01 (c) of the General Conditions: (i) the execution and delivery on behalf of the Borrower of the Joint Project Agreement has been duly authorized or ratified by all necessary governmental action; (ii) the execution and delivery of the IDA Credit Agreement on behalf of the Borrower has been duly authorized or ratified by all necessary governmental action; and (iii) the Project Coordinator and the Financial Controller referred to in pararaph D.1 of Schedule 1 to the Joint Project Agreement shall have been appointed in each region. Section 5.02. The date September 14, 1978, is hereby speci- fied for the purposes of Section 12.04 of the General Conditions. ARTICLE VI Representatives 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 12.02 of the General Condi- tions. Section 6.02. The following addresses are specified for the purposes of Section 11.01 of the General Conditions: For the Borrower: Ministry of Finance and Planning P. 0. Box 9111 Dar es Salaam Tanzania Cable address: TREASURY Dar es Salaam -5- For the Fund: International Fund for Agricultural Development Via del Serafico 107 EUR Rome Cable address: Telex: IFAD 65160 IFAD Rome Rome IN WITNESS'WHEREOF, the parties hereto, acting through their representatives thereunto duly authorized, have caused this Agreement to be signed in their respective names in Rome, Italy, as of the day and year first above written. UNITED REPUBLIC OF TANZANIA * By /s/ E. Mtei Authorized Representative INTERNATIONAL FUND FOR AGRICULTURAL DEVELOPMENT By /s/ A. Sudeary Authorized Representative