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Page 1 CONFORMED COPY CREDIT NUMBER 3965 TA GRANT NUMBER H118 TA Development Financing Agreement (Second Poverty Reduction Support Credit) between UNITED REPUBLIC OF TANZANIA and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated August 5, 2004 Page 2 CREDIT NUMBER 3965 TA GRANT NUMBER H118 TA DEVELOPMENT FINANCING AGREEMENT AGREEMENT, dated August 5, 2004 between UNITED REPUBLIC OF TANZANIA (the Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION (the Association). WHEREAS: (A) the Association has received from the Borrower a letter dated June 30, 2004 (the Letter of Development Policy), describing a program of actions, objectives and policies designed to eradicate poverty from the Borrower