Conformed Copy - C2149 - Integrated Roads Project - Amendment 1

Page 1 August 21, 1991 His Excellency Steven Kibona Minister of Finance Ministry of Finance P.O. Box 9111 Dar es Salaam, Tanzania Re: Credit No. 2149-TA (Integrated Roads Project). Amendment to the Development Credit Agreement Dear Sir: We refer to the Development Credit Agreement for the abovementioned Project dated September 28,1990, between the United Republic of Tanzania and the International Development Association and to Professor S. Mbilinyi's telex dated August 7, 1991, requesting amendments to the Project to provide for the completion of three sections of the TANZAM highway. This letter is to inform you of our agreement to your request and to propose the following amendments to the Development Credit Agreement: 1. The date in Section 3.06 is amended to read December 31, 1991. 2. The table in paragraph 1 of Schedule 1 is amended to read as appears in the Annex to this letter. 3. Part B.l. of Schedule 2 is amended by the addition of a new Part as follows: "(d) Rehabilitation of three sections of the TANZAM highway totalling about 222 km." 4. The date in Paragraph 7 of Schedule 4, is amended to read December 31, 1991. All other provisions of the Development Credit Agreement remain in full force and effect. Your telex of August 7, 1991, and this letter shall constitute an agreement between the Borrower and the Association and the amendment shall become effective as of the date of this letter. Yours sincerely, Chaim Helman, Acting Director Southern Africa Department Attachment SCHEDULE 1 The table in paragraph 1 of Schedule 1 is amended to read as follows: Amount of the Credit Allocated % of (Expressed in Expenditures Category SDR Equivalent to be financed (1) Trunk road 100% of foreign rehabilitation expenditures and and upgrading 50% of local Page 2 expenditures (a) for Part B.1 20,700,000 (a) of the Project (b) for Part B.1 14,300,000 (b) of the Project (c) for Part B.1 13,600,000 (c) of the Project (d) for Part B.1 6,000,000 (d) of the Project (2) Other roads, 26,000,000 85% bridges, buildings and road main- tenance works (3) Equipment for 3,900,000 100% of foreign road contractors expenditures (4) Equipment, 6,200,000 100% of foreign vehicles, spare expenditures and parts and mate- 80% of local rials expenditures (5) Equipment, 9,800,000 100% of foreign vehicles and expenditures spare parts for private plant pools (6) Equipment hire 5,800,000 35% for road main- tenance by REOs (7) Equipment and ferry 4,600,000 100% repair contracts including trans- portation (8) Consultants' 16,900,000 100% services (9) Training, 2,700,000 100% seminars, fellowships and workshops (10) Refunding of 1,200,000 Amounts due pur- Project Prepara- suant to Section tion Advance 2.02 (c) of this Agreement (11) Unallocated 8,200,000 TOTAL 139,900,000\1a