Conformed Copy - L4594 - Rajasthan Power Sector Restructuring Project - Project Agreement 2

Page 1 CONFORMED COPY LOAN NUMBER 4594 IN Rajasthan Project Agreement (Rajasthan Power Sector Restructuring Project) between INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT and STATE OF RAJASTHAN Dated February 27, 2001 LOAN NUMER 4594 IN RAJASTHAN PROJECT AGREEMENT AGREEMENT, dated February 27, 2001, between INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (the Bank) and STATE OF RAJASTHAN, acting by its Governor (Rajasthan). WHEREAS (A) by the Loan Agreement of even date herewith between India, acting by its President (the Borrower) and the Bank, the Bank has agreed to lend to the Borrower an amount of one hundred eighty million dollars ($180,000,000), on the terms and conditions set forth in the Loan Agreement, but only on condition that Rajasthan agree to undertake such obligations toward the Bank as are set forth in this Agreement; (B) the proceeds of the loan provided for under the Loan Agreement will be made available by the Borrower to Rajasthan as provided for in the Loan Agreement; (C) by the Project Agreement of even date herewith among the Bank and Rajasthan Rajya Vidyut Utpadan Nigam Limited (RVUN), Rajasthan Rajya Vidyut Prasaran Nigam Limited (RVPN), Jaipur Vidyut Vitran Nigam Limited (JAIPUR DISCOM), Ajmer Vidyut Vitran Nigam Limited (AJMER DISCOM) and Jodhpur Vidyut Vitran Nigam Limited (JODHPUR DISCOM), RVUN, RVPN, JAIPUR DISCOM, AJMER DISCOM and JODHPUR DISCOM have undertaken Page 2 certain obligations towards the Bank as set forth in the Project Agreement; (D) the Bank has received a letter dated September 25, 2000 from Rajasthan enclosing a policy statement designed to restructure, reform and develop the power sector in Rajasthan (hereinafter the Reform Program or Program) and declaring Rajasthan