Page  1
CONFORMED COPY
CREDIT NUMBER 2908-1 TA
(Amendment)
Agreement Amending
Development Credit Agreement
(Lake Victoria Environment Management Project)
between
UNITED REPUBLIC OF TANZANIA
and
INTERNATIONAL DEVELOPMENT ASSOCIATION
Dated February 5, 2002
CONFORMED COPY
CREDIT NUMBER 2908-1 TA
(Amendment)
AGREEMENT AMENDING
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DEVELOPMENT CREDIT AGREEMENT
AGREEMENT, dated February 5, 2002, between UNITED REPUBLIC OF TANZANIA 
(the Borrower) and INTERNATIONAL DEVELOPMENT ASSOCIATION (the Association).
WHEREAS (A) the Borrower and the Association have entered into a Development 
Credit Agreement dated September 10, 1996, as amended from time to time (the Development 
Credit Agreement), for the financing of the Lake Victoria Environment Management Project, 
Credit Number 2908 TA described in Schedule 1 to the Joint Project Agreement (the Project);
(B)
the Borrower has requested the Association to provide additional assistance 
towards financing of the Project, including civil works, equipment and consultants’ services, by 
increasing the amount made available under the Development Credit Agreement by an amount in 
various currencies equivalent to four million Special Drawing Rights (SDR 4,000,000); and
WHEREAS the Association has agreed on the basis, 
inter alia
,
of
the foregoing, to 
provide such additional assistance to the Borrower upon the terms and conditions set forth in this 
Agreement Amending the Development Credit Agreement (as hereinafter defined);
NOW THEREFORE the parties hereto hereby agree as follows:
ARTICLE I
Section 1.01. The “General Conditions Applicable to Development Credit Agreements” 
of the Association, dated January 1, 1985 (as amended through October 6, 1999), with the 
modifications set forth below (the General Conditions), constitute an integral part of this 
Agreement.
(a)
A new paragraph (12) is added to Section 2.01 to read as set forth below, and the 
existing paragraphs (12) through (14) of said Section are accordingly renumbered as paragraphs 
(13) through (15):
“12.
‘Participating Country’ means any country that the Association 
determines meets the requirements set forth in Section 11 of Resolution No. 194 
of the Board of Governors of the Association, adopted on April 8, 1999; and 
‘Participating Countries’ means, collectively, all such countries.” ; and
(b)
the second sentence of Section 5.01 is modified to read:
“Except as the Borrower and the Association shall otherwise agree, no 
withdrawals shall be made: (a) on account of expenditures in the territories of 
any country which is not a Participating Country or for goods produced in, or 
services supplied from, such territories; or (b) for the purpose of any payment to 
persons or entities, or for any import of goods, if such payment or import, to the 
knowledge of the Association, is prohibited by a decision of the United Nations 
Security Council taken under Chapter VII of the Charter of the United Nations.”
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Section 1.02. Section 1.02 of the Development Credit Agreement is amended as follows:
(a)
the word “and” at the end of sub-section (a) is deleted, and the “.” at the 
end of sub-section (b) replaced with “ ;” and
(b)
new sub-sections (c), (d) and (e) are added to read as follows:
“(c)
“Agreement Amending the Development Credit Agreement” means this 
Agreement Amending the Development Credit Agreement between the Borrower 
and the Association, dated February 5, 2002;
(d)
“Project Account” means the account referred to in Section 3.04 of the 
Development Credit Agreement; and 
(e)
“Project Quarter” means the three-month period beginning from the 
Effective Date of the Agreement Amending the Development Credit Agreement, 
and ending three months thereafter (the First Project Quarter) and any 
three-month period beginning at the end of the First Project Quarter, or at the 
end of any subsequent Project Quarter.”
Section 1.03. Section 2.01 of the Development Credit Agreement is amended to read as 
follows:
“Section 2.01. The Association agrees to lend to the Borrower, on the terms and 
conditions set forth or referred to in the Development Credit Agreement, an 
amount in various currencies equivalent to eleven million Special Drawing 
Rights (SDR 11,000,000) (the Credit), which includes: (a) an original amount in 
various currencies equivalent to seven million Special Drawing Rights (SDR 
7,000,000) (the Initial Financing); and (b) a supplemental amount in various 
currencies equivalent to four million Special Drawing Rights (SDR 4,000,000) 
(the Supplemental Credit).”
Section 1.04. In Section 2.03, the Closing Date is amended to read “June 30, 2004”.
Section 1.05. Section 2.04 (b) (i) of the Development Credit Agreement is amended by 
adding after the term “cancelled” the following proviso
:
“provided however, that any commitment charge on the Supplemental Credit 
shall accrue from a date sixty (60) days after the date of the Agreement 
Amending the Development Credit Agreement.”
Section 1.06. Section 2.07 is amended to read as follows:
“(a)
Subject to paragraphs (b) and (c) below, the Borrower shall: 
(A)
repay the principal amount of the Initial Financing in semiannual 
installments payable on each March 1 and September 1, 
commencing September 1, 2006 and ending March 1, 2036. 
Each installment to and including the installment payable on 
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March 1, 2016, shall be one percent (1%) of such principal 
amount, and each installment thereafter shall be two percent 
(2%) of such principal amount; and
(B)
repay the principal amount of the Supplemental Credit in 
semiannual installments payable on each March 1 and 
September 1, commencing March 1,
 
2012
and ending September 
1,
 
2041. Each installment to and including the installment 
payable on September 1, 2021 shall be one percent (1%) of such 
principal amount, and each installment thereafter shall be two 
percent (2%) of such principal amount.”
Section 1.07. A new section 3.04 is added to read as follows:
“Section 3.04. Without limitation to its obligations under Section 3.01 of the 
Development Credit Agreement, the Borrower shall, for the purposes of making 
available its counterpart contribution for the financing of the Project:
(a)
open, and thereafter maintain until the completion of the Project, a 
Project Account in a commercial bank on terms and conditions satisfactory to the 
Association;
(b)
deposit into the Project Account an initial contribution of $20,000;
(c)
thereafter replenish said account up to the initial amount of $20,000 at 
the end of each Project Quarter until the completion of the Project, or whenever 
its balance shall be less than $5,000; and 
(d)
ensure that amounts deposited into the Project Account shall be used 
exclusively to make payments to meet expenditures made or to be made in 
respect of the reasonable cost of goods, works and services for the Project in 
addition to those financed from the proceeds of the Credit.”
Section 1.08. The table set forth in paragraph 1 of Schedule 1 to the Development Credit 
Agreement is deleted and replaced with the table set forth in the attachment to this Agreement 
Amending the Development Credit Agreement.
ARTICLE II
Effective Date; Termination
Section 2.01. This Agreement Amending the Development Credit Agreement shall not 
become effective until:
(a)
the Borrower’s Project Account has been opened and the initial contribution 
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referred to in Section 3.04 (b) of the Development Credit Agreement has been deposited therein; 
and
(b)
evidence satisfactory to the Association shall have been furnished to the 
Association that the execution and delivery of this Agreement Amending the Development Credit 
Agreement on behalf of the Borrower has been duly authorized or ratified by all necessary 
governmental action, and this Agreement Amending the Development Credit Agreement is 
legally binding upon the Borrower in accordance with its terms.
Section 2.02. As part of the evidence to be furnished pursuant to Section 2.01 of this 
Agreement Amending the Development Credit Agreement, there shall be furnished to the 
Association an opinion or opinions satisfactory to the Association showing, on behalf of the 
Borrower, that this Agreement Amending the Development Credit Agreement has been duly 
authorized or ratified by, and executed and delivered on behalf of the Borrower and is legally 
binding upon the Borrower in accordance with its terms.
Section 2.03. This Agreement Amending the Development Credit Agreement shall come 
into force and effect on the date upon which the Association shall dispatch to the Borrower 
notice of its acceptance of the evidence required by Section 2.01 of this Agreement Amending 
the Development Credit Agreement.
Section 2.04. If this Agreement Amending the Development Credit Agreement shall not  
come into force and effect by a date ninety (90) days after the date of this Agreement Amending 
the Development Credit Agreement, this Agreement Amending the Development Credit 
Agreement and all obligations of the parties hereunder shall terminate, unless the Association 
establishes a later date for the purposes of this Section.  If this Agreement Amending the 
Development Credit Agreement shall terminate under the provisions of this Section, the 
Development Credit Agreement shall continue in full force and effect, as if this Agreement 
Amending the Development Credit Agreement had not been executed.
IN WITNESS WHEREOF, the parties hereto, acting through their duly authorized 
representatives, have caused this Agreement Amending the Development Credit Agreement to be 
signed in their respective names in the District of Columbia, United States of America, as of the 
day and year first above written.
UNITED REPUBLIC OF TANZANIA
By  /s/ Alex C. Massinda
Authorized Representative
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INTERNATIONAL DEVELOPMENT ASSOCIATION
By /s/ Pamela Cox
Acting Regional Vice President
Africa
Attachment
SCHEDULE 1
Withdrawal of the Proceeds of the Credit
1.
The table below sets forth the Categories of items to be financed out of the proceeds of 
the Credit, the allocation of the amounts of the Credit to each Category and the percentage of 
expenditures for items to be financed in each Category:
Category
Amount of the Credit
Allocated (Expressed
in SDR Equivalent
)
% of
Expenditures
to be Financed
(1)    Civil Works
(a)
Initial Financing
(b)
Supplemental Credit
112,900
250,000
100% of foreign 
expenditures and 
95% of local 
expenditures
(2)    Vehicles and Equipment
(a)
Initial Financing
(b)
Supplemental Credit
1,508,000
325,000
100% of foreign
expenditures and 
95% of local 
expenditures
(3)    Consultants Services and
         Training
(a)
Initial Financing
(b)
Supplemental Credit
2,570,000
1,675,000
100%
(4)    Goods, works and 
         services for Microprojects
(a)
Initial Financing
(b)
Supplemental Credit
650,000
325,000
95%
(5)    Operating Costs
95%
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(a)
Initial Financing
(b)
Supplemental Credit
2,159,100
1,425,000
(6)    Unallocated
-
              TOTAL
__________
11,000,000
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