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Page 1 CONFORMED COPY CREDIT NUMBER 4003 TA Development Credit Agreement (Local Government Support Project) between THE UNITED REPUBLIC OF TANZANIA and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated January 19, 2005 Page 2 CREDIT NUMBER 4003 TA DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated January 19, 2005, between THE UNITED REPUBLIC OF TANZANIA (the Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION (the Association). WHEREAS (A) the Association has received a letter from the Borrower, dated October 15, 2004 (the Letter of Sector Policy) describing a program designed to strengthen fiscal decentralization and upgrade urban infrastructure (the Program) and declaring the Borrower