Conformed Copy - L4271 - Haryana Power Sector Restructuring Project - Project Agreement 1

Page 1 CONFORMED COPY LOAN NUMBER 4271 IN Haryana Project Agreement (Haryana Power Sector Restructuring Project) between INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT and STATE OF HARYANA Dated January 16, 1998 LOAN NUMBER 4271 IN HARYANA PROJECT AGREEMENT AGREEMENT, dated January 16, 1998, between INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (the Bank) and STATE OF HARYANA, acting by its Governor (Haryana). WHEREAS (A) by the Loan Agreement of even date herewith between India, acting by its President (the Borrower) and the Bank, the Bank has agreed to lend to the Borrower an amount of sixty million dollars ($60,000,000), on the terms and conditions set forth in the Loan Agreement, but only on condition that Haryana agree to undertake such obligations toward the Bank as are set forth in this Agreement; (B) the proceeds of the loan provided for under the Loan Agreement will be made available by the Borrower to Haryana as provided for in the Loan Agreement; (C) by the HSEB Project Agreement of even date herewith between the Bank and Haryana State Electricity Board (HSEB), HSEB has undertaken certain obligations towards the Bank as set forth in the HSEB Project Agreement; and (D) the Bank has received a letter dated November 12, 1997 from Haryana enclosing a detailed policy statement approved by Haryana designed to restructure, reform and develop the power sector in Haryana (hereinafter the Reform Program or Program) and declaring Haryana