Tanzania - Multisector Rehabilitation Credit : Credit 1741 - Credit Agreement - 5 - Conformed

I OFFICIL SWEDISH GRANT RELATED TO CREDIT NUMBER 1741-0 TA Development Grant Agreement (Multisector Rehabilitation Credit) between UNITED REPUBLIC OF TANZANIA and INTERNATIONAL DEVELOPMENT ASSOCIATION as Administrator on behalf of the SWEDISH INTERNATIONAL DEVELOPMENT AUTHORITY Dated 9 1988 SWEDISH \GRANT RELATED TO CREDIT NUMBER 1741 TA DEVELOPMT GRANT AGREEMENT AGREEMENT, dated A 9 , 1988, between UNITED REPUBLIC OF TANZANIA (the Recipient) and INTERNATIONAL DEVELOPMENT ASSOCIATION acting as Administrator (the Administrator) of a-Gran provided by the SWEDISH INTERNATIONAL DEVELOPMENT AUTHORITY (SIDA). WHEREAS, the Recipient has requested the assistance of the Governmeint of Sweden (Sweden) acting thro6gh SIDA in the financing of a program described in the letter of Development Policy dated October 29, 1986, referred to in Recital A of the Development Credit Agreement dated November 21, 1986, between the Recipient and the Association (IDA Credit Agreement) and in particular to provide assistance for the Rehabilitation of the Dar es Salaam Harbor; WHEREAS in consideration of the above-mentioned request, SIDA has opened a trust account and deposited therein an amount of forty-eight million Swedish Kronor (SEK 48,000,000) (the Swedish Grant) and has, pursuant to an agreement of even date herewith between SIDA and the Association, (the Administration Agreement), appointed the Association as Administrator of the said Trust Account for the purpose of providing assistance to the Recipi4nt; WHEREAS, the Recipient acknowledges that the finncial assistance extended to the Recipient under this Agreement shall be considered as part of the bilateral development aid extended by Sweden to the Recipient; and WHEREAS, the Association, as Administrator as heteinbefore mentioned has agreed on the basis, inter alia, of the foregoing to extend the Swedish Grant to the Recipient upon the tey'ms and con- ditions 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" (the General Conditions) of the Association, -2- dated January 1, 1985, with the same force and affect as if they were fully set forth herein, subject, however," to the following modifications thereof: (a) the term "Association", whenever 'used in the General Conditions, means the lIAternational Develop Int Association acting as Administrator of the Swedish Grant pursuant to the provisions of the Administration Agreement; (b) the term "Development Credit /Agreement", whenever used in the General Conditions, means this Agreemeitt; (c) the term "Credit", whenever used in the General Condi- tions, means the Swedish Grant hereunder; (d) the term "Credit Account", whenever used in the General Conditions, means the Account opened by the Association in its books in the name of the Rtcipient to which the amount of the Swedish Grant is credited; (e) Section 2.01, para aph 9, shall be modified to read: "'Project' means the imports and other activities that may be financed out of the proceeds of the Swedish Grant pursuant to the provisions of Schedule 1 to the Development Credit fgreement;" (f) Section 9.06 (c) s'iall be modified to read: "(c) Not latisr than six months after the Closing Date or such later date as may be agreed for this purpose between tIje Recipient and the Administrator, the Recipient shall prepare and furnish to the Administrator a report, of such scope and in such detail as the Administrator shall reasonably request, on the execution of the Project referred to in the Preamble to the Development Grant Agreement, the performance by the Recipient and the Administrator of their respective obligations under the Development Grant Agreement and the accomplishment of the purposes of the Swedish Grant"; (g) Sections 3.02, 3.03, 3.04, 3.05, 4.01, 4.02, 4.03, 4.04, 4.06, 6.05, 7.01, 8.01 (a), 12.02 and 12.05 of the General Condi- tions are deleted; and -3- (h) inf Sections 6.02 and 7.01 of the General Conditions, the term "Association" shall include also the Association acting in its own capacity. Section 1.02. Whenever used in this Agreement the following terms "Swedish Kronor" and "SEK" mean the currency of Sweden. ARTICLE II The Grant Section 2.01. The Administrator agrees to extend to the Recipient, on the terms and conditions herein set forth or referred to, a grant in an amount of forty-eight million Swedish Kronor (SEK 48,000t000). Section 2.02. (a) The amount of the Swedish Grant may be withdrawn from the Credit Account in accordance with the provi- sions of the Schedule to this Agreement, as such Schedule may be amended from time to time by agreement among the parties, for expenditures made (or, if the Administrator shall so agree, to be made) in respect of the reasonable cost of goods and services required for the Program and to be financed out of the proceeds of the Swedish Grant. (b) WithdrawAls from the Credit Account shall be made in the respective currencies in which the expenditures to be financed out of the proceeds of the Swedish Grant have been paid or are payable or, at the option of the Administrator in Swedish Kronor. Section 2.03. Except as the Administrator shall otherwise agree, procurement of the works and goods required for the Program and to be financed out of the proceeds of the Swedish Grant shall be procured in accordance with the provisions of Schedule 2 to the IDA Credit Agreement. Section 2.04. The Closing Date shall be June 30, 1990, or such later date as the Administrator shall establish. The Administrator shall promptly notify the Recipient of such later date. ARTICLE III Execution of the Program Section 3.01. Except as the Administrator shall otherwise agree, Articles III and IV of the IDA Credit Agreement are hereby incorporated into this Agreement with the same force and effect as if they were fully .set forth herein, it being understood that all references in such Articles III and IV to the "Association" shall be deemed to be references to the Association, as Administrator on behalf of the Government of the Kingdom of Sweden under this Agreement, all references to the "Development Credit Agreement" shall be deemed to be references to this Development Grant Agree- ment and all references to the "Credit" shall be deemed to be references to the Swedish Grant. ARTICLE IV Effectiveness; Termination; Representation Section 4.01. This Agreement shall become effective upon signature. Section 4.02. This Agreement and all obligations of the Recipient and the Administrator hereunder shall terminate on the date on which the IDA Credit Agreement shall terminate in accor- dance with its terms. Section 4.03. The representative designated in Section 6.01 of the IDA Credit Agreement shall be the representative of the Recipient for the purposes of Section 11.03 of the General Condi- tions. Section 4.04. The addresses specified in Section 6.02 of the IDA Credit Agreement shall be the addresses specified for the purposes of Section 11.01 of the General Conditions. Section 4.05. All the provisions of this Agreement shall continue in full force and effect notwithstanding any cancellation or suspension under the IDA Credit Agreement. ARTICLE V Transfer of Rights and Obligations Section 5.01. In accordance with the Administration Agree- ment, the rights and obligations of the Administrator under this Agreement may be transferred to SIDA,. The Recipient 'accepts and agrees that, upon notice by the Administrator to the Recipient to that effect, SIDA shall, ipso facto,, from the date specified in such notice, be substituted in all rights and obligations of the Administrator under this Agreement as if SIDA had been an original party to this Agreement, without any further action or formality -5- required on the part of any party, and from such date the Admini- strator shall cease to have any rights or obligations as a party under this Agreement. IN WITNESS WHEREOF, the parties hereto, acting through their representatives thereunto duly authorized, have caused this Agree- ment 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 r Authorized Representative INTERNATIONAL DEVELOPMENT ASSOCIATION, as ADMINISTRATOR on behalf of the SWEDISH INTERNATIONAL DEVELOPMENT AUTHORITY By (S Regional Vice President Africa -6- SCHEDULE Withdrawal of the Proceeds of the Swedish Grant 1. The table below sets forth the Categories of items to be financed out of the proceeds of the Swedish Grant, the allocation of the amounts of the Swedish Grant to each category and the percentage of expenditures for items so to be financed in each Category: Amount of % of Swedish Grant Expen- Allocated ditures (Expressed in to be Category Swedish Kronor Financed (1) Civil Works 42,000,000 100% of foreign expenditures (2) Equipment 6,000,000 100% of foreign expenditures TOTAL 48,000,000 2. Notwithstanding the provisions of paragraph 1 above, no withdrawals shall be made in respect of: (a) payments made for expenditures prior to April 14, 1988; (b) payments made in the currency of Tanzania; (c) payments for taxes levied by, or in the territory of Tanzania, on goods or services or on the importation, manufacture, procurement or supply thereof; and (d) expenditures for goods supplied under a contract which any national or international financing institution or agency other than Sweden shall have financed or agreed to finance. 3. If the Administrator shall have reasonably determined that the procurement of any item in any Category is inconsistent with the procedures set forth or referred to in this Agreement, no expenditures for such item shall be financed out of the proceeds of the Swedish Grant, and the Administrator may, without in any way restricting or limiting any other right, power or remedy of SIDA under this Agreement, by notice to Tanzania, cancel such amount of the Swedish Grant, which in the Administrator's -7- reasonable opinion, represents the amount of such expenditures which would otherwise have been eligible for financing out of the proceeds of the Swedish Grant.