Tanzania - Mwanza-Shinyanga Rural Development Project (Loan 2-TAN) : Credit 0803 - Loan Agreement - Conformed

CREDIT NUMBER 803 TA Development Credit Agreement (Mwanza/Shinyanga Rural Development Project) between UNITED REPUBLIC OF TANZANIA and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated June 14, 1978 CREDIT NUMBER 803 TA DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated as of June 14, 1978, between UNITED REPUBLIC OF TANZANIA (hereinafter called the Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION (hereinafter called the Association). WHEREAS (A) the Borrower has requested the Association to assist in the financing of a rural development project by extend- ing the Credit as hereinafter provided; (B) by agreement of even date herewith (hereinafter called the Fund Loan Agreement), the International Fund for Agricultural Development (the Fund) has agreed to make a loan (hereinafter called the Fund Loan) to the Borrower in an aggregate principal amount equivalent to $12,000,000 to assist in financing the same project on the terms and conditions therein set forth; and (C) the Borrower, the Association, and the Fund have entered into an agreement of even date herewith (hereinafter called the Joint Project Agreement) providing for the description of the p,oject to be financed by the Credit and Fund Loan and for certain other matters of common interest in connection with the financing and execution of the said project; WHEREAS the Association has agreed, on the basis inter alia of the foregoing, to extend the Credit to the Borrower upon the terms and conditions hereinafter set forth; NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I General Conditions; Definitions Section 1.01. The parties to this Agreement accept all the provisions of the General Conditions Applicable to Development Credit Agreements of the Association, dated March 15, 1974, with the same force and effect as if they were fully set forth herein (said General Conditions Applicable to Development Credit Agree- ments of the Association being hereinafter called the General Conditions). Section 1.02. Wherever used in this Agreement, unless the context otherwise requires, the several terms defined in the General Conditions have the respective meanings therein set forth. -2- ARTICLE II The Credit Section 2.01. The Association agrees to lend to the Borrower, on the terms and conditions in the Development Credit Agreement set forth or referred to, an amount in various currencies equiva- lent to twelve million dollars ($12,000,000). Section 2.02. The amount of the Credit may be withdrawn from the Credit Account and used for the Project in accordance with the provisions of the Joint Project Agreement. Section 2.03. The Closing Date shall be December 31, 1984, or such later date as the Association shall establish. The Association shall promptly notify the Borrower of such later date. Section 2.04. The Borrower shall pay to the Association a service charge at the rate of three-fourths of one per cent (3/4 of 1%) per annum on the principal amount of the Credit withdrawn and outstanding from time to time. Section 2.05. Service charges shall be payable semiannually on March 15 and September 15 in each year. Section 2.06. The Borrower shall repay the principal amount of the Credit in semiannual installments payable on each March 15 and September 15 commencing September 15, 1988, and ending March 15, 2028, each installment to and including the installment payable on March 15, 1998, to be one-half of one per cent (1/2 of 1%) of such principal amount, and each installment thereafter to be one and one-half per cent (1-1/2%) of such principal amount. Section 2.07. The currency of the United Kingdom of Great Britain and Northern Ireland is hereby specified for the purposes of Section 4.02 of the General Conditions. ARTICLE III Execution of the Project Section 3.01. The Borrower shall duly perform all its obliga- tions set forth in the Joint Project Agreement as if they -are fully set forth herein. -3- ARTICLE IV Remedies of the Association Section 4.01. For the purposes of Section 6.02 of the General Conditions, the following additional events are specified pursuant to paragraph (k) thereof: (a) The Tanzania Rural Development Bank shall have failed to perform any of its obligations under the Subsidiary Loan Agreement. (b) (i) Subject to subparagraph (ii) of this paragraph: (A) the right of the Borrower to withdraw the proceeds of the Fund Loan made to the Borrower for the financing of the Project shall have been suspended, cancelled or terminated in whole or in part, pursupnt to the terms of the agreement providing therefor, or (B) such loan shall have become due and payable prior to the agreed maturity thereof. (ii) Subparagraph (i) of this paragraph shall not apply if: (A) such suspension, cancellation, termination or prematuring is not caused by the failure of the Borrower to perform any of its obligations under such agreement, and (B) adequate funds for the Project are available to the Borrower from other sources on terms and conditions consistent with the obligations of the Borrower under this Agreement. Section 4.02. For the purposes of Section 7.01 of the General Conditions, the following events are specified pursuant to para- graph (h) thereof, namely, that any of the events specified in paragraphs (a) and (b) (i) (B) of Section 4.01 of this Agreement shall occur. ARTICLE V Effective Date; Termination Section 5.01. The following events are specified as addi- tional conditions to the effectiveness of the Development Credit -4- Agreement within the meaning of Section 12.01 (c) of the General Conditions: (i) the execution and delivery on behalf of th- Borrower of the Joint Project Agreement has been duly authorized or ratified by all necessary governmental action; (ii) the Fund Loan Agreement has become effective; and (iii) the Project Coordi- nator and the Financial Controller referred to in paragraph D.1 of Schedule 1 to the Joint Project Agreement shall have been appointed in each region. Section 5.02. The date September 14, 1978, is hereby speci- fied for the purposes of Section 12.04 of the General Conditions. ARTICLE VI Representative of the Borrower; Addresses Section 6.01. The Minister of the Borrower at the time responsible for Finance is designated as representative of the Borrower for the purposes of Section 11.03 of the General Condi- tions. Section 6.02. The following addresses are specified for the purposes of Section 11.01 of the General Conditions: For the Borrower: Ministry of Finance and Planning P.O. Box 9111 Dar es Salaam Tanzania Cable address: TREASURY Dar es Salaam For the Association: International Development Association 1818 H Street, N.W. Washington, D.C. 20433 U-i.ted States of America Cable address: Telex: INDEVAS 440098 (ITT) Washington, D.C. 248423 (RCA) or 64145 (WUI) IN WITNESS WHEREOF, the parties hereto, acting through their representatives thereunto duly authorized, have caused this Agreement to be signed in their respective names in the District of Columbia, United States of America, as of the day and year first above written. UNITED REPUBLIC OF TANZANIA By /s/ Paul Bomani Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION By /s/ W.A. Wapenhans Regional Vice President Eastern Africa