Tanzania - Flue-Cured Tobacco Project : Credit 0217 - Credit Agreement - 3 - Conformed

CREDIT NO. 217-TA (Second Amendment) Agreement AMENDING DEVELOPMENT CREDIT AGREEMENT DATED OCTOBER 9, 1970 AS AMENDED BETWEEN UNITED REPUBLIC OF TANZANIA AND INTERNATIONAL DEVELOPMENT ASSOCIATION DATED JANUARY 10, 1973 CREDIT NO. 217-TA (Second Amendment) Agreement AMENDING DEVELOPMENT CREDIT AGREEMENT DATED OCTOBER 9, 1970 AS AMENDED BETWEEN UNITED REPUBLIC OF TANZANIA AND INTERNATIONAL DEVELOPMENT ASSOCIATION DATED JANUARY 10, 1973 AMENDING DEVELOPMENT CREDIT AGREEMENT DATED OCTOBER 9, 1970 AS AMENDED BETWEEN UNITED REPUBLIC OF TANZANIA AND INTERNATIONAL DEVELOPMENT ASSOCIATION AGREEMENT, dated January 10, 1973, between UNITED REPUBLIC of TANZANIA (hereinafter called the Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION (hereinafter called the Association). (A) WHEREAS by an agreement dated October 9, 1970, between the Borrower and the Association as amended by an agreement between the Borrower and the Association dated April 28, 1971 (hereinafter called the Development Credit Agreement), the Association agreed to assist in the financing of a flue-cured tobacco development project of the Borrower by making available to the Borrower a development credit (hereinafter called the Credit) in an amount in various cur- rencies equivalent to nine million dollars ($9,000,000); (B) WHEREAS by an agreement (hereinafter called the Project Agreement) dated October 9, 1970 between the Association, Tanzania Rural Development Bank (hereinafter called TRDB) (as successor to the National Development Credit Agency), the Tanganyika Tobacco Board (hereinafter called TTB), and Tanzania Tobacco Processing Company Limited (hereinafter called TTPC), TRDB, TTB and TTPC, in consideration of the Association's entering into the Development Credit Agreement, undertook certain obligations to the Association in respect of the carrying out of the above-mentioned Project; (C) WHEREAS in consequence of the reorganization of certain public corporations of the Borrower the Tobacco Authority of Tanzania (hereinafter called TAT) lias been established by the Tobacco Indus- try Act 1972 for the purpose inter alia of promoting the development of the tobacco industry in Tanzania; (D) WHEREAs by the same Act the Borrower has made provision for the transfer of the rights and liabilities of TTB and TTPC under the Project Agreement to TAT; 4 (E) WHEREAS the Association concurs in the foregoing arrange- ments; and (F) WHEREAS the Borrower and the Association have, in view of the foregoing, agreed to amend the provisions of the Development Credit Agreement as hereinafter provided; Now THEREFORE the parties hereto hereby agree as follows: Section 1. Wherever used in this Agreement, unless the context shall otherwise require and subject to the amendments made herein, the several terms used in the Development Credit Agreement shall have the respective meanings therein set forth. Section 2. The definition of the term 4Project Agreement" set forth in Section 1.02 of the Development Credit Agreement is amended to read as follows: "The term "Project Agreement" means the agreement dated October 9, 1970 between the Association, the Tanzania Rural Devel- opment Bank (hereinafter called TRDB) (as successor to NDCA by virtue of Public Corporations (Transfer of Assets and Liabili- ties) (Tanzania Rural Development Bank) Order, 1971), the Tobacco Authority of Tanzania (hereinafter called TAT) (as successor to TTB by virtue of the Tobacco Industry Act 1972 and to TTPC by virtue of Companies (Transfer of Assets and Liabil- ities) (Tanzania Tobacco Processing Company Limited) Order, 1972) as the same may be amended or supplemented from time to time by agreement between the Borrower, the Association, TRDB and TAT." Section 3. Sections 4.01, 4.10, 4.11 and 5.02 of the Development Credit Agreement are amended by deleting the term "TTB" and substituting the term "TAT" for the term "TTPO". Section 4. Schedule 2 to the Development Credit Agreement is amended by (a) deleting from Part A(7) the clause "within the Borrower's Min- istry of Agriculture, Food and Cooperatives", and 5 (b) by substituting in Part B(3) the term "TAT" for the term "TTB ". Section 5. Section 5.02(c) of the Development Credit Agreement is amended by (a) substituting the term "Tobacco Industry Act, 1972" for the terms "the Agricultural Products (Control and Marketing) Act 1962, the Agricultural Products (Tanganyika Tobacco Board) (Amendment) Order 1965", and (b) deleting the clause "or the Memorandum and Articles of Asso- ciation of Tanzania Tobacco Processing Company Limited of October 19, 1966, ". Section 6. This Agreement shall come into force and effect on the date on which Parts III, IV, V and VI of the Tobacco Industry Act, 1972 shall come into operation. IN WITNESS WHEREOF, the parties hereto acting through their repre- sentatives duly authorized, have caused this Agreement to be signed in their respective names and delivered 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/ MICHAEL L. LEJEUNE Director Country Programs Department Eastern Africa Regional Office