Conformed Copy - C2149 - Integrated Roads Project - Amendment 2

Page 1 June 19, 1992 Hon. Kighoma Malima Minister of Finance Ministry of Finance P.O. Box 9111 Dar es Salaam Tanzania Re: Credit No. 2149-TA (Integrated Roads Project) Amendment Dear Sir: We refer to the Development Credit Agreement for the Integrated Roads Project between the United Republic of Tanzania (the Borrower) and the International Development Association (the Association) dated September 28, 1990. We also refer to various discussions between the Borrower and the Association and to Mr. P.J. Ngumbullu's letter dated May 9, 1992, requesting amendment to the Development Credit Agreement to reflect the split in the Ministry of Communications and Works, and the establishment of the Plan and Equipment Hire Company. This letter is to inform you of our agreement to the request. We therefore propose to amend the Development Credit Agreement as follows: 1. Section 1.02 (b) is amended to read as follows: "MOW" means the Borrower's Ministry of Works; 2. "MCW" in Section 1.02 (g), (i), (n) (o), Section 5.01 (c), Schedule 2, Part A.1, and 9, Schedule 4, paragraphs 1 (a), (b) and (c), 4, 5, 6 (b) and 6 (c) is amended to read "MOW"; 3. Section 1.02 (n) is amended to read as follows: "MWTI" means the Morogoro Works Training Institute; 4. The following subsections are added to Section 1.02; "(q) "MCT" means the Borrower's Ministry of Communications and Transport; and (r) "PEHCOL" means the Plant and Equipment Hire Company Limited, a public company incorporated under the Companies Ordinance." 5. Section 3.01 is amended to read as follows; "Section 3.01 (a) The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to this Agreement and, to this end, shall carry out Parts A.1 through 8, B. C.1, 2 (a), 4 and 5 of the Project through MOW, Part A.9 through MOF, Part A.10 through NCC, Part A.11 through NIT, Part A.12 through MCT, Parts C.2 (b), 3 and 6 through PEHCOL, Part D.1 through ATC and Part D.2 through NTC, all with due diligence and efficiency and in conformity with appropriate administrative, financial and transportation practices, and shall provide, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) The Borrower shall make the proceeds of the Credit allocated to Parts A.10; A.11; C.2 (b), 3 and 6; D.1 and D.2 of the Project available to NCC, NIT, PEHCOL, ATC and NTC, respectively, as grants." Page 2 6. The figure in Category (1) (c) of the table in paragraph 1 of Schedule 1 is amended to read "20,000,000" and the figure in Category (ll) is amended to read "1,800,000". 7. Part A.1 of Schedule 2 is amended by replacing the words "transport sector" with "roads sub-sector". 8. Part A.8 of Schedule 2 is amended by replacing "MCW" with "MOW" and "MOT". 9. Part A.9 of Schedule 2 is amended by adding "MCT and the Stock Verification and External Departments of MOF". 10. Part A of Schedule 2 is amended by the addition of the following: "12. Strengthening MCT's departments and divisions involved in policy, feasibility, engineering and operations studies in the transport sector, through training, provision of office equipment and technical assistance". 11. Part B.1 (c) of Schedule 2 is amended to read as follows: "(c) in FY 1992/1993, Mwanza to Usagara, Usagara to Nzega, Songea to Masasi, Tanga to Horohoro and Marangu to Tarakea" 12. Part C.2 of Schedule 2 is amended to read as follows: "2 (a) Acquisition of equipment, vehicles and spare parts for REOs; and (b) acquisition of equipment, vehicles, initial stock of spare parts and workshop items for PEHCOL" 13. A new Part C.6 is added to Schedule 2 as follows: "6. Strengthening of PEHCOL's management, equipment and workshop operations and plant hire capabilities" 14. Paragraph 6 (a) of Schedule 4 is amended by replacing the words "MCW's plant pool" by "PEHCOL". All other provisions of the Development Credit Agreement as amended herein shall remain in full force and effect. These amendments shall take effect as of the date of this letter. Please confirm your agreement to the above by signing and dating the form of confirmation on the enclosed copy of this letter and returning it to us. Yours sincerely, Stephen Denning, Director Southern Africa Department CONFIRMED: UNITED REPUBLIC OF TANZANIA By Authorized Representative Date: July 18, 1992 Page 3