Conformed Copy - C2598 - Second Integrated Roads Project - Supplemental Letter 1

Page 1 June 24, 1994 UNITED REPUBLIC OF TANZANIA International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Credit No. 2598-TA (Second Integrated Roads Project) Parts A.1 and 2 of Schedule 2 to the Development Credit Agreement Capacity Strengthening and Institutional Improvement Plans Dear Sirs: We refer to the above-mentioned Parts of Schedule 2 to the Development Credit Agreement, of even date herewith, between the United Republic of Tanzania (the Borrower) and the International Development Association (the Association) relating to the implementation by the Borrower of measures to strengthen road network management and to strengthen technical and managerial capacity within the sector. We wish to confirm that the various studies aimed at assisting the Borrower to strengthen the administration and coordination of the transport sector will be completed in accordance with the schedules in Attachment 1 to this letter. The studies cover the following matters, the regulation and management of parastatal and other autonomous transport agencies, strategic transport planning, transport policy formulation and transport regulation, regulation and monitoring of transport safety and environmental management. The Borrower undertakes to review the findings of these studies with the Association and to implement the agreed recommendations. We also confirm that we have developed and commenced implementation of an action plan to improve the organization and management of the road network. The action plan, including the dates of actions already taken as well as that for actions to be taken in the future is attached as Attachment 2 to this letter. As part of our efforts to develop an efficient and viable sector, we are committed to a strategy of strengthening technical and managerial capacity within the transport sector. For this purpose we have developed a program for strengthening capacity, comprising short-term courses, workshops,consultancy services and other academic courses. The program is attached as Attachment 3 to this letter. The attachment reflects agreements reached with the Association with regard to the contents of the Fiscal Year 1994/95 program as well as the agreement to review the program for subsequent years on an annual basis with the Association. As part of this program, a special on-the-job training program for the staff of the Ministry of Works Communications and Transport, will be implemented in accordance with Attachment 4 to this letter. It is our understanding that, in making the above-mentioned Credit, the Association may rely on the statements set forth or referred to herein. Very Truly Yours UNITED REPUBLIC OF TANZANIA By /s/ Charles Nyirabu Page 2 Authorized Representative