Conformed Copy - C2598 - Second Integrated Roads Project - Supplemental Letter 3

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) Part D.2 of Schedule 3 to the Development Credit Agreement Development of the Domestic Construction Industry Dear Sirs: We refer to the above-mentioned Part of Schedule 3 to the Development Credit Agreement, of even date herewith, between the United Republic of Tanzania (the Borrower) and the International Development Association (the Association) for implementation of the National Construction Council's (NCC) program for the development of the domestic construction industry. We wish to confirm that, in order to facilitate the training of domestic contractors under the program, we shall ensure that: (i) The Ministry of Works, Communications and Transport, shall award trial contracts, of up to $250,000 each to NCC's domestic trainee contractors on the basis of prices determined by independent consultants; and (ii) NCC shall assist the trainee contractors to obtain performance bonds under the trial contracts. 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 Authorized Representative