Conformed Copy - C2050 - Cashew and Coconut Treecrops Project - Amendment

Page 1 March 22, 1996 The Honourable Simon Mbilinyi Minister of Finance Ministry of Finance P.O. Box 9111 Dar es Salaam, Tanzania Dear Sir: TANZANIA: Credit No. 2050-TA (Cashew and Coconut Tree Crops Project) Amendment to the Development Credit Agreement We refer to the Development Credit Agreement for the above-mentioned Project, dated July 28, 1989, between United Republic of Tanzania (the Borrower) and International Development Association (the Association), as amended by letters of agreement, dated April 2, 1993 and April 21, 1994, respectively. To facilitate the execution of the above-mentioned Project, the Association agrees to the request of the Borrower set out in a letter, dated February 13, 1996, from the Ministry of Finance, and accordingly proposes that the table in paragraph 1 of Schedule 1 to the said Development Credit Agreement be amended as set out in the Attachment to this letter. All provisions of the Development Credit Agreement, except as amended herein, shall remain in full force and effect. Kindly indicate your agreement with the proposed amendments by signing and returning to us the enclosed copy of this letter. These amendments shall be effective as of the date of countersignature by your authorized representative. Sincerely, Stephen Weissman Acting Director Eastern Africa Department Attachment CONFIRMED: UNITED REPUBLIC OF TANZANIA By: Peter Ngumbullu Authorized Representative Date: April 2, 1996 Attachment Page 1 of 3 "Amount of the Credit Allocated % of (expressed in Expenditures Category SDR Equivalent) to be Financed (1) Civil works for: 90% (a) Part A of 800,000 the Project (b) Part B of 660,000 Page 2 the Project (2) Vehicles and 100% equipment for: (a) Part A of 1,500,000 the Project (b) Part B of 815,000 the Project (3) Consultants' 100% services for: (a) Part A of 1,750,000 the Project (b) Part B of 1,350,000 the Project (4) Training for: 100% (a) Part A of 720,000 the Project (b) Part B of 660,000 the Project (5) Agricultural 100% inputs for: (a) Part A of 230,000 the Project (b) Part B of 150,000 the Project (6) Agricultural Credit 1,600,000 100% for chemicals and equipment (7) Incremental recurrent 75% up to operating costs for: June 30, 1992; 55% up to December 31, 1993; 90% up to December 31, 1994; 80% thereafter (a) Part A of 2,100,000 the Project (b) Part B of 1,280,000 the Project (8) Pilot Credit Scheme: 2,500,000 80% Goods and services financed under subloans (9) Refunding of 140,000 Amounts due Project pursuant to Preparation Section 2.01 (c) Advance of this Agreement (10) Unallocated 1,570,000 (11) Agricultural 90% up to Extension Services December 31, 1994; and 80% thereafter (a) Non-salary 900,000 Page 3 recurrent operating costs (b) Local training 300,000 (12) Research Fund 375,000 _________ TOTAL 19,400,000"