Conformed Copy - C2598 - Second Integrated Roads Project - Amendment 3

Page 1 Mr. P. J. Ngumbullu April 24, 2002 Permanent Secretary Ministry of Finance P. O. Box 9111 Dar Es Salaam, Tanzania Re: Tanzania Second Integrated Roads Project (Cr. 2598-TA) Amendment to the Development Credit Agreement (Cancellation of US$70 million) Dear Mr. Ngumbullu, We refer to the Development Credit Agreement (Agreement) for the above-mentioned Project, dated June 24, 1994, between United Republic of Tanzania (the Borrower) and International Development Association (the Association), as amended to date and to your letter dated April 18, 2002, requesting the amendment of the Agreement to cancel the equivalent of US$ 70,000,000 (SDR50.7 million) related to the Singida- Shelui Road rehabilitation. We are taking into consideration your request for additional financing related to the Singida- Shelui Road rehabilitation and look forward to be discussing with you in the future the different options for financing this road. We are pleased to inform you that the Association accedes to your request for cancellation and consequently proposes to hereby amend the Agreement as follows: 1. The table in paragraph 1 of Schedule 1 to the Agreement is amended to read as in Attachment A to this letter. 2. Schedule 2 to the Agreement is amended to read as in Attachment B to this letter. All other provisions of the Agreement, except as amended herein, shall remain in full force and effect. Please confirm your agreement to the amendment by countersigning, dating and returning to us the enclosed copy of this letter, while keeping one original for your records. The amendment shall become effective as of the date of confirmation of this letter by you. Page 2 Sincerely, Ted Ahlers Acting Country Director for Tanzania and Uganda Africa Region CONFIRMED THE UNITED REPUBLIC OF TANZANIA By: _________________________________ Authorized Representative Date: _______________________________ Attachments cc: Mr. J. Kijazi Permanent Secretary Ministry of Works Dar Es Salaam, Tanzania Mr. Abdu K. Abdalla Principal Secretary Minister of Communications and Transport Zanzibar, Tanzania Mr. O. Ellevset Chief Executive Tanzania National Roads Agency Page 3 Dar Es Salaam, Tanzania To be cleared with & cc: Messrs/Mme: Dubois (LEGAF); Gaginis (LOAG2) cc: Messrs/Mme: Patel (AFTIE); Ndulu, Sakaya (AFTMZ); Brigish, Ahuja (AFCO4); Abeille, Koen (AFTQK); Plessis-Fraissard, Kedia, Kamhi, Kawasumi, Rudge, Khan, Jones (AFTTR); Kim (LOAG2), IRIS3 File FKhan/fk Q:Word/Tanzania/RoadsII/Ltr_to_MoF_Cancellation.doc Attachment A THE UNITED REPUBLIC OF TANZANIA SECOND INTEGRATED ROADS PROJECT (CR. 2598-TA) SCHEDULE 1 Withdrawal of the Proceeds of the Credit 1. The table below sets forth the Categories of items to be financed out of the proceeds of the Credit, the allocation of the amount of the Credit to each Category, and the percentage of expenditures for items so to be financed in each Category. Category Amount of the Credit Allocated (Expressed in SDR Equivalent) % of Expenditures to be financed (1) Civil Works for: 100% of foreign and 50% of local expenditures (a) Part B (8) of the Project 9,120,000 (b) Part B (2), B (4), and B (6) of the Project 14,244,000 (c) Part B (7) of the Project 0 (d) Part B (1) (c) of the Project 14,489,000 (e) Part D of the Project 7,884,000 (2 ) Part B (9) Vehicles and Equipment 1,220,000 100% of foreign expenditures Page 4 (3 ) Consultants