Conformed Copy - L4271 - Haryana Power Sector Restructuring Project - Project Agreement 2

Page 1 CONFORMED COPY LOAN NUMBER 4271 IN HSEB Project Agreement (Haryana Power Sector Restructuring Project) between INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT and HARYANA STATE ELECTRICITY BOARD Dated January 16, 1998 LOAN NUMBER 4271 IN HSEB PROJECT AGREEMENT AGREEMENT, dated January 16, 1998, between INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (the Bank) and HARYANA STATE ELECTRICITY BOARD (HSEB). WHEREAS (A) by the Loan Agreement of even date herewith between India, acting by its President (the Borrower) and the Bank, the Bank has agreed to lend to the Borrower an amount of sixty million dollars ($60,000,000), on the terms and conditions set forth in the Loan Agreement, but only on condition that HSEB agree to undertake such obligations toward the Bank as are set forth in this Agreement; (B) by the Haryana Project Agreement of even date herewith between the Bank and the State of Haryana (Haryana), Haryana has undertaken certain obligations towards the Bank as set forth in the Haryana Project Agreement; (C) by the Subsidiary Loan Agreement to be entered into between Haryana and HSEB, the proceeds of the loan provided for under the Loan Agreement and made available to Haryana will be relent to HSEB on the terms and conditions set forth in said Subsidiary Loan Agreement; (D) the Bank has received a letter dated November 12, 1997 from Haryana enclosing a detailed policy statement approved by Haryana designed to restructure, reform and develop the power sector in Haryana (hereinafter the Reform Program or Program) and declaring Haryana