Conformed Copy - C3545 - Fourth Power Project - Development Credit Agreement

Page 1 CONFORMED COPY CREDIT NUMBER 3545-UG Development Credit Agreement (Fourth Power Project) between THE REPUBLIC OF UGANDA and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated August 29, 2001 CREDIT NUMBER 3545-UG DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated August 29, 2001, between THE REPUBLIC OF UGANDA (the Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION (the Association). WHEREAS (A) the Borrower, having satisfied itself as to the feasibility and priority of the project described in Schedule 2 to this Agreement (the Project), has requested the Association to assist in the financing of the Project; (B) the Association has received a letter, dated March 19, 2001, from the Borrower describing a program of actions, objectives and policies for transforming the power sub-sector into an efficient and financially viable electricity industry through the reform and restructuring of the power sub-sector, including: (i) the unbundling of Uganda Electricity Board (UEB) into separate companies for power generation, transmission and distribution; (ii) the subsequent privatization of the generation and distribution businesses; (iii) the operation of the transmission company on a commercial basis; and (iv) attracting new private sector investments, (the Program) and declaring the Borrower