Conformed Copy - C3771 - Dar es Salaam Water Supply and Sanitation Project - Project Agreement

Page 1 CONFORMED COPY CREDIT NUMBER 3771 TA Project Agreement (Dar es Salaam Water Supply and Sanitation Project) between INTERNATIONAL DEVELOPMENT ASSOCIATION and DAR ES SALAAM WATER AND SEWERAGE AUTHORITY Dated June 23, 2003 Page 2 CREDIT NUMBER 3771 TA PROJECT AGREEMENT AGREEMENT, dated June 23, 2003, between INTERNATIONAL DEVELOPMENT ASSOCIATION (the Association) and DAR ES SALAAM WATER AND SEWERAGE AUTHORITY (DAWASA). WHEREAS (A) by the Development Credit Agreement of even date herewith between United Republic of Tanzania (the Borrower) and the Association, the Association has agreed to make available to the Borrower an amount in various currencies equivalent to forty-five million Special Drawing Rights (SDR 45,000,000), on the terms and conditions set forth in the Development Credit Agreement, but only on condition that DAWASA agree to undertake such obligations toward the Association as are set forth in this Agreement; (B) by a Subsidiary Agreement to be entered into between the Borrower and DAWASA, part of proceeds of the Credit provided for under the Development Credit Agreement will be on-lent to DAWASA and part of the proceeds provided on a grant and equity basis, on the terms and conditions set forth in the said Subsidiary Agreement; and WHEREAS DAWASA, in consideration of the Association