Conformed Copy - C3581 - Telecommunications Sector Reform Project - Project Agreement

Page 1 CONFORMED COPY CREDIT NUMBER 3581 NEP Project Agreement (Telecommunications Sector Reform Project) between INTERNATIONAL DEVELOPMENT ASSOCIATION and NEPAL TELECOMMUNICATIONS AUTHORITY Dated February 5, 2002 CREDIT NUMBER 3581 NEP PROJECT AGREEMENT AGREEMENT, dated February 5, 2002, between the INTERNATIONAL DEVELOPMENT ASSOCIATION (the Association) and the NEPAL TELECOMMUNICATIONS AUTHORITY (NTA). WHEREAS (A) by the Development Credit Agreement of even date herewith between Page 2 the Kingdom of Nepal (the Borrower) and the Association, the Association has agreed to make available to the Borrower an amount in various currencies equivalent to seventeen million five hundred thousand Special Drawing Rights (SDR 17,500,000), on the terms and conditions set forth in the Development Credit Agreement, but only on conditions that NTA agree to undertake such obligations toward the Association as are set forth in this Agreement; (B) by a Grant Agreement to be entered into between the Borrower and NTA, a portion of the proceeds of the credit provided for under the Development Credit Agreement will be made available to NTA on the terms and conditions set forth in said Grant Agreement; and WHEREAS NTA, in consideration of the Association