Conformed Copy - C3581 - Telecommunications Sector Reform Project - Development Credit Agreement

Page 1 CONFORMED COPY CREDIT NUMBER 3581 NEP Development Credit Agreement (Telecommunications Sector Reform Project) between KINGDOM OF NEPAL and INTERNATIONAL DEVELOPMENT ASSOCIATION Dated February 5, 2002 CREDIT NUMBER 3581 NEP DEVELOPMENT CREDIT AGREEMENT AGREEMENT, dated February 5, 2002, between the KINGDOM OF NEPAL (the Borrower) and the INTERNATIONAL DEVELOPMENT ASSOCIATION (the Association). WHEREAS (A) the Borrower, having satisfied itself as to the feasibility and priority of the project described in Schedule 2 to this Agreement (the Project), has requested the Page 2 Association to assist in the financing of the Project; (B) Part B of the Project will be carried out by the Nepal Telecommunications Authority (NTA) with the Borrower's assistance and, as part of such assistance, the Borrower will make a portion of the proceeds of the credit provided for in Article II of this Agreement (the Credit) available to NTA, as set forth in this Agreement; and WHEREAS the Association has agreed, on the basis, inter alia, of the foregoing, to extend the Credit to the Borrower upon the terms and conditions set forth in this Agreement and in the agreement of even date herewith between the Association and NTA (the Project Agreement); NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I General Conditions; Definitions Section 1.01. The