Conformed Copy - C3041 - Urban Water Supply Project - Project Agreement

Page 1 CONFORMED COPY CREDIT NUMBER 3041 KH Project Agreement (Urban Water Supply Project) between INTERNATIONAL DEVELOPMENT ASSOCIATION and PHNOM PENH WATER SUPPLY AUTHORITY Dated March 20, 1998 CREDIT NUMBER 3041 KH PROJECT AGREEMENT AGREEMENT, dated March 20 998, between INTERNATIONAL DEVELOPMENT ASSOCIATION (the "Association") and PHNOM PENH WATER SUPPLY AUTHORITY ("PPWSA"). WHEREAS: (A) By the Development Credit Agreement of even date herewith between the Kingdom of Cambodia (the "Borrower") and the Association, the Association has agreed to make available to the Borrower an amount in various currencies equivalent to twenty-two million seven hundred thousand Special Drawing Rights (SDR 22,700,000), on the terms and conditions set forth in the Development Credit Agreement, but only on conditions that PPWSA agree to undertake such obligations toward the Association as are set forth in this Agreement; WHEREAS: (B) By a Subsidiary Loan Agreement to be entered into between the Borrower and PPWSA, part of the proceeds of the Credit provided for under the Development Credit Agreement will be made available to PPWSA on the terms and conditions set forth in said Subsidiary Loan Agreement; and WHEREAS: (C) PPWSA, in consideration of the Association