Conformed Copy - C3772 - Poverty Reduction Support Credit - Development Financing Agreement

Page 1 CONFORMED COPY CREDIT NUMBER 3772 TA GRANT NUMBER H040 TA Development Financing Agreement (Poverty Reduction Support Credit) between UNITED REPUBLIC OF TANZANIA and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated June 23, 2003 Page 2 CREDIT NUMBER 3772 TA GRANT NUMBER H040 TA DEVELOPMENT FINANCING AGREEMENT AGREEMENT, dated June 23, 2003, between UNITED REPUBLIC OF TANZANIA (the Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION (the Association). WHEREAS (A) the Association has received a letter dated April 10, 2003, (the Letter of Development Policy) from the Borrower describing a program of actions, objectives and policies designed to eradicate poverty from the Borrower's territory (hereinafter called the Program), declaring the Borrower's commitment to the execution of the Program, and requesting assistance from the Association in support of the Program during the execution thereof; (B) the Borrower has carried out the measures and taken the actions described in Schedule 2 to this Agreement to the satisfaction of the Association and has maintained a macroeconomic policy framework satisfactory to the Association; (C) the Borrower and the Association intend, to the extent practicable, that the proceeds of the Grant be disbursed in support of the Program before disbursements of the proceeds of the Credit are made; and (D) on the basis, inter alia , of the foregoing, the Association has decided to, in support of the Program, provide such assistance to the Borrower by making the Credit and the Grant to the Borrower as hereinafter provided; NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I General Conditions; Definitions Section 1.01. The