Common use of Execution of the Project Clause in Contracts

Execution of the Project. (a) DAWASA declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit Agreement, and, to this end, shall: (i) carry out the Project with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project; (ii) duly and punctually perform in accordance with the provisions of the Development Contract, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Association and DAWASA shall otherwise agree, DAWASA shall carry out the Project in accordance with the Implementation Program set forth in Schedule 2 to this Agreement. Section 2.02. Except as the Association shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Credit shall be governed by the provisions of Schedule 1 to this Agreement. (a) DAWASA shall carry out or cause to be carried out, the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of this Agreement. (b) For the purposes of Section 9.06 of the General Conditions and without limitation thereto, DAWASA shall, in conjunction with the Borrower: (i) prepare, on the basis of guidelines acceptable to the Association and furnish to the Association not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose among the Association, the Borrower and DAWASA, a plan for the future operation of the Project designed to ensure its sustainability; and (ii) afford the Association a reasonable opportunity to exchange views with DAWASA and the Borrower on the said plan. Section 2.04. Without limitation to its obligations under Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the Project: (a) replenish the Project Account up to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion of the Project, or whenever its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and (b) 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.

Execution of the Project. (a) DAWASA The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit AgreementProject, and, to this end, shall: (i) shall carry out the Project through the SAGW with due diligence and efficiency and in conformity with appropriate administrative, financial, engineeringcadastral and real estate registration, environmental, water, sewerage and resettlement environmental practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project; (ii) duly and punctually perform in accordance with the provisions of the Development Contract, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Association Borrower and DAWASA the Bank shall otherwise agree, DAWASA the Borrower, through the SAGW, shall carry out the Project in accordance with the Implementation Program set forth in Schedule 2 5 to this Agreement. Section 2.02. (a) Except as the Association Bank shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Credit Loan shall be governed by the provisions of Schedule 1 4 to this Agreement. (a) DAWASA shall carry out or cause to , as said provisions may be carried out, further elaborated in the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of this AgreementProcurement Plan. (b) The Borrower shall update the Procurement Plan in accordance with guidelines acceptable to the Bank, and furnish such update to the Bank not later than 12 months after the date of the preceding Procurement Plan, for the Bank’s approval. Section 3.03. For the purposes of Section 9.06 9.07 of the General Conditions and without limitation thereto, DAWASA the Borrower shall, in conjunction with the Borrower: (ia) prepare, on the basis of guidelines acceptable to the Association Bank, and furnish to the Association Bank not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose among the Association, between the Borrower and DAWASAthe Bank, a plan for the future operation of the Project designed to ensure its sustainabilitythe continued achievement of the Project’s objectives; and (iib) afford the Association Bank a reasonable opportunity to exchange views with DAWASA and the Borrower on the said plan. Section 2.043.04. Without limitation to its obligations under Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing Where buildings or dwellings have been constructed or occupied otherwise than in accordance with applicable laws or regulations of the Project: (a) replenish Borrower, the Project Account up to Borrower shall only record the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at buildings or dwellings in the end of each Project Quarter REC, and shall not register any ownership rights over the relevant land, unless and until such buildings or dwellings have been regularized in accordance with such applicable laws or regulations, in which case ownership rights over the completion buildings or dwellings, and the relevant land, shall be registered by the Borrower in the REC upon application of the Project, or whenever its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and (b) 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 occupier and fulfillment of the reasonable cost of goods, works and services for the Project in addition to those financed from the proceeds of the Creditconditions prescribed by such laws or regulations.

Execution of the Project. (a) DAWASA DFCC Bank declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit Agreement, and, to this end, shall: (i) shall carry out the Project with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmentalrenewable energy, water, sewerage energy efficiency and resettlement energy conservation practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project; (ii) duly and punctually perform in accordance with the provisions of the Development Contract, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Association and DAWASA Bank shall otherwise agree, DAWASA DFCC Bank shall carry out the Project in accordance with the Implementation Program set forth in Schedule 2 1 to this Agreement, and, where applicable, the provisions of Schedule 2 (Recipient’s Project Obligations) and Schedule 3 (Investment Projects) of the Grant Agreement. Section 2.02. Except as the Association Bank shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Credit GEF Trust Fund Grant shall be governed by the provisions of Schedule 1 to this the XXX Project Agreement. Section 2.03. DFCC Bank shall, or shall cause an Investment Enterprise or a Participating Credit Institution (aas the case may be) DAWASA shall to, carry out or cause to be carried out, the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of this the GEF Project Agreement. (b) For the purposes of Section 9.06 of the General Conditions and without limitation thereto, DAWASA shall, in conjunction with the Borrower: (i) prepare, on the basis of guidelines acceptable to the Association and furnish to the Association not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose among the Association, the Borrower and DAWASA, a plan for the future operation of the Project designed to ensure its sustainability; and (ii) afford the Association a reasonable opportunity to exchange views with DAWASA and the Borrower on the said plan. Section 2.04. Without limitation to DFCC Bank shall duly perform all its obligations under the Administration Agreement. Except as the Bank shall otherwise agree, DFCC Bank shall not take or concur in any action which would have the effect of amending, abrogating, assigning or waiving the Administration Agreement or any provision thereof. Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the Project: 2.05. (a) replenish Until a completion report referred to in Section 9.06 (c) of the Project Account up General Conditions has been furnished to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) Association, DFCC Bank shall, at the end request of each Project Quarter until the completion Bank exchange views with the Bank with regard to the progress of the Project, or whenever the performance of its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and (b) ensure that amounts deposited into obligations under this Agreement and the Project Account shall be used exclusively Administration Agreement, and other matters relating to make payments to meet expenditures made or to be made in respect the purposes of the reasonable cost of goods, works and services for the Project in addition to those financed from the proceeds of the CreditGEF Trust Fund Grant.

Execution of the Project. (a) DAWASA The Borrower declares its commitment to the objectives objective of the Project as set forth in Schedule 2 to the Development Credit AgreementProject, and, to this end, shall: (i) carry out without any limitation or restriction upon any of its other obligations under the Project with due diligence and efficiency and in conformity with appropriate administrativeLoan Agreement, financial, engineering, environmental, water, sewerage and resettlement practices, and shall provide, or cause ECTEL to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project; (ii) duly and punctually perform in accordance with the provisions of the Development Contract, Lease Contract and the DAWASA Subloan Project Agreement all its the obligations of ECTEL therein set forth forth, shall take or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable ECTEL to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) The Borrower shall, jointly with the other Participating Countries, enter into a subsidiary loan agreement with ECTEL, under terms and conditions which have been approved by the Bank, for the purposes of governing their respective roles in the carrying out of the Project and making the proceeds of the Loan available to ECTEL. (c) The Borrower shall exercise its rights thereunder under the Subsidiary Loan Agreement in such manner as to protect the interests of the Borrower and the Association Bank and to accomplish the purposes of the Credit; Loan, and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Association and DAWASA Bank shall otherwise agree, DAWASA the Borrower shall carry out not assign, amend, abrogate or waive the Project in accordance with Subsidiary Loan Agreement or any provision thereof. In case of any conflict among the Implementation Program set forth in Schedule 2 to terms of the Subsidiary Loan Agreement and those of this AgreementAgreement and/or the Other Loan and Credit Agreements, the terms of this Agreement and/or the Other Loan and Credit Agreements shall prevail. Section 2.023.02. Except as The Bank and the Association shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Credit shall be governed by the provisions of Schedule 1 to this Agreement. (a) DAWASA shall carry out or cause to be carried out, Borrower hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 9.07, 9.08 and 9.08 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of this Agreement. (b) For the purposes of shall be carried out by ECTEL pursuant to Section 9.06 of the General Conditions and without limitation thereto, DAWASA shall, in conjunction with the Borrower: (i) prepare, on the basis of guidelines acceptable to the Association and furnish to the Association not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose among the Association, the Borrower and DAWASA, a plan for the future operation 2.03 of the Project designed to ensure its sustainability; and (ii) afford the Association a reasonable opportunity to exchange views with DAWASA and the Borrower on the said planAgreement. Section 2.04. Without limitation to its obligations under Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the Project: (a) replenish the Project Account up to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion of the Project, or whenever its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and (b) 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.

Execution of the Project. (a) DAWASA The Board declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit Agreement, and, to this end, shall: (i) shall carry out the Project with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage technical and resettlement engineering practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project; (ii) duly and punctually perform in accordance with the provisions of the Development Contract, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Association and DAWASA the Board shall otherwise agree, DAWASA the Board shall carry out the Project in accordance with Implementation Manuals, EMP, EMAP, IPDP, Formation Order, the Rules and the Implementation Program set forth in Schedule 2 to this Agreement. (c) The Board shall exercise its rights in relation to financing provided by it to communities in such manner as to: (i) protect the interests of the Borrower, the Association and the Board; (ii) comply with its obligations under this Agreement and the Subsidiary Grant Agreement; and (iii) achieve the purposes of the Project. Section 2.02. Except as the Association shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Credit shall be governed by the provisions of Schedule 1 to this Agreement. (a) DAWASA The Board shall carry out or cause to be carried out, the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, and 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisitionmaintenance, respectively) in respect of this Agreement. (b) For the purposes of Section 9.06 of the General Conditions and without limitation thereto, DAWASA the Board shall, in conjunction with the Borrower: (i) prepare, on the basis of guidelines acceptable to the Association and furnish to the Association not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose among between the Association, Association and the Borrower and DAWASABoard, a plan for the future operation of the Project designed to ensure its sustainabilityProject; and (ii) afford the Association a reasonable opportunity to exchange views with DAWASA and the Borrower Board on the said plan. Section 2.04. Without limitation to The Board shall duly perform all its obligations under Section 2.01 the Subsidiary Grant Agreement and, except as the Association shall otherwise agree, the Board shall not take or concur in any action which would have the effect of this Agreementamending, DAWASA shallabrogating, for assigning or waiving the purposes of making available the counterpart contribution to the financing of the Project:Subsidiary Grant Agreement or any provision thereof. (a) replenish The Board shall, at the Project Account up request of the Association, exchange views with the Association with regard to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion progress of the Project, or whenever the performance of its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); andobligations under this Agreement and under the Subsidiary Grant Agreement, and other matters relating to the purposes of the Credit. (b) ensure that amounts deposited into The Board shall promptly inform the Project Account shall be used exclusively Association of any condition which interferes or threatens to make payments to meet expenditures made or to be made in respect interfere with the progress of the reasonable cost Project, the accomplishment of goods, works and services for the Project in addition to those financed from the proceeds purposes of the Credit, or the performance by the Board of its obligations under this Agreement and under the Subsidiary Grant Agreement.

Execution of the Project. (a) DAWASA declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit Agreement, and, to this end, shall: (i) The Recipient shall carry out the Project with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage financial and resettlement environmental practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project; (ii) duly and punctually perform in accordance with the provisions of the Development Contract, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Association and DAWASA shall otherwise agree, DAWASA shall carry out the Project in accordance with the Implementation Program set forth in Schedule 2 to this Agreement. Section 2.023.02. Except as the Association Administrator shall otherwise agree, procurement of the goods, works goods and consultants’ ' services required for the Project and to be financed out of the proceeds of the Credit Grant shall be governed by the provisions of Schedule 1 3 to this Agreement. (a) DAWASA The Recipient shall carry out maintain or cause to be carried out, the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, maintained records and reportsaccounts adequate to reflect in accordance with sound accounting practices the operations, maintenance resources and land acquisition, respectively) expenditures in respect of this Agreementthe Project of the departments or agencies of the Recipient responsible for carrying out the Project or any part thereof. (b) For the purposes of Section 9.06 of the General Conditions and without limitation thereto, DAWASA The Recipient shall, in conjunction with the Borrower: (i) preparehave the records and accounts referred to in paragraph (a) of this Section for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Administrator; (ii) furnish to the Administrator as soon as available, but in any case not later than six months after the end of each such year, the report of such audit by said auditors, of such scope and in such detail as the Administrator shall have reasonably requested; and (iii) furnish to the Administrator such other information concerning said records and accounts and the audit thereof as the Administrator shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Account were made on the basis of guidelines acceptable statements of expenditure, the Recipient shall: (i) maintain or cause to the Association be maintained, in accordance with paragraph (a) of this Section, records and furnish to the Association not later than six accounts reflecting such expenditures; (6ii) months retain, until at least one year after the Closing Date or such later date as may be agreed for this purpose among Administrator has received the Association, the Borrower and DAWASA, a plan audit report for the future operation of fiscal year in which the Project designed last withdrawal from the Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Administrator's representatives to ensure its sustainabilityexamine such records; and (iiiv) afford ensure that such records and accounts are included in the Association a reasonable opportunity annual audit referred to exchange views with DAWASA and the Borrower on the said plan. Section 2.04. Without limitation to its obligations under Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the Project: (a) replenish the Project Account up to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion of the Project, or whenever its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and in paragraph (b) ensure of this Section and that amounts deposited into the Project Account shall report of such audit contains a separate opinion by said auditors as to whether the statements of expenditure submitted during such fiscal year, together with the procedures and internal controls involved in their preparation, can be used exclusively relied upon to make payments to meet expenditures made or to be made in respect of support the reasonable cost of goods, works and services for the Project in addition to those financed from the proceeds of the Creditrelated withdrawals.

Execution of the Project. (a) DAWASA Banxico declares its commitment to the objectives of the Project as set forth and to this end, shall carry out Parts A and B.2 of the Project described in Schedule 2 to the Development Credit Agreement, and, to this end, shall: (i) carry out the Project Loan Agreement with due diligence and efficiency and efficiency, in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage sound technical and resettlement financial practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project; (ii) duly and punctually perform in accordance with the provisions of the Development Contract, Lease Contract Schedule to this Agreement and the DAWASA Subloan Agreement Mandatory Housing Lending Regulations, and shall make available, in a timely manner, such funds and other resources as shall be required for the execution of Parts A and B.2 of the Project. (b) Banxico shall enter into and duly perform all of its obligations therein set forth under the Subsidiary Loan Agreement referred to in Section 3.01 of the Guarantee Agreement. Except as the Bank shall otherwise agree, Banxico shall not change or fail to enforce any provision of such Subsidiary Loan Agreement. (c) Banxico shall, for purposes of carrying out Parts A and B.2 of the Project, open and maintain in pesos, a Project Account on terms and conditions satisfactory to the Bank. Expenditures from such account shall exercise its be made exclusively for onlending of funds to Financial Intermediaries for purposes of making FOVI Subloans. (a) Banxico undertakes that unless the Bank shall otherwise agree, each FOVI Subloan shall be made on terms whereby Banxico shall, by a written agreement with the Financial Intermediary, obtain rights thereunder in such manner as and secure obligations adequate to protect the interests of the Borrower Bank and FOVI, including, without limitation, the Association rights and accomplish the purposes of the Credit; and obligations set forth in Section 3.01 (a) (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Association and DAWASA shall otherwise agree, DAWASA shall carry out the Project in accordance with the Implementation Program set forth in Schedule 2 to this Agreement. Section 2.02. Except as the Association shall otherwise agree, procurement of the goods, works Loan Agreement and consultants’ services required for the Project and to be financed out of the proceeds of the Credit shall be governed by the provisions of Schedule 1 to this Agreement. (b) Banxico shall cause each Financial intermediary to exercise its rights in relation to each FOVI Subloan in such manner as to: (i) protect the interests of the Bank, Banxico and FOVI; (ii) comply with its obligations in respect of each FOVI Subloan; and (iii) achieve the purposes of the Project. (a) DAWASA Banxico shall, on a twice-yearly basis and at the request of any party, exchange views with the Bank with regard to the progress of the Program, the Project, the performance of its obligations under this Agreement and other matters relating to the purposes of the Loan. (b) Banxico shall promptly inform the Bank of any condition which interferes,, or threatens to interfere with, the progress of the Project, the accomplishment of the purposes of the Loan, or the performance by Banxico of its obligations under this Agreement. Section 2.04. Banxico shall carry out or cause to be carried out, the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 9.07, 9.08 and 9.08 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance maintenance, and land acquisition, respectively) in respect of Parts A and B.2 of the Project. Section 2.05. Except as the Bank shall otherwise agree, procurement of the goods and works required for Parts A and B.2 of the Project and to be financed out of the proceeds of the Loan shall be governed ’by the provisions of paragraph 1 (d) of the Schedule to this Agreement. (b) For the purposes of Section 9.06 of the General Conditions and without limitation thereto, DAWASA 2.06. Banxico shall, in conjunction with the Borrower: (i) prepare, on the basis of guidelines acceptable to the Association and furnish to the Association not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose among the Association, the Borrower and DAWASA, a plan for the future operation of the Project designed to ensure its sustainability; and (ii) afford the Association a reasonable opportunity to exchange views with DAWASA and the Borrower on the said plan. Section 2.04. Without limitation to its obligations under Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the Project: (a) replenish by March 31, 1989, carry out and complete the Project Account up test-marketing program referred to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion in Part B.2 of the Project; (b) by June 30, or whenever its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000)1989, review the results of the program with the Guarantor and the Bank; and (bc) ensure that amounts deposited into promptly thereafter take all measures, necessary or appropriate, to finance Test Houses consistent with the Project Account shall be used exclusively to make payments to meet expenditures made or to be made in respect results of the reasonable cost of goods, works and services for the Project in addition to those financed from the proceeds of the Creditsuch program.

Execution of the Project. (a) DAWASA The Recipient declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit this Agreement, and, to this end, shall: (i) shall carry out the Project with due diligence and efficiency and in accordance with the criteria set forth in the Report of the Second Meeting of the Parties to the Montreal Protocol on Substances that Deplete the Ozone Layer (London, June 27 to 29, 1990 - UNEP/OZL. 2/3, Annex IV pages 42 to 44), as the same may be amended from time to time by the Parties to the Protocol, and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage administrative and resettlement practicesfinancial practices and with due regard to ecological and environmental factors, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project;. (iib) duly and punctually perform Without limitation to the provisions of paragraph (a) above, the Recipient shall carry out Part D of the Project with the assistance of GTO in accordance with the provisions of the Development Contract, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Association and DAWASA shall otherwise agree, DAWASA shall carry out the Project in accordance with the Implementation Program set forth in Schedule 2 to this AgreementGTO Arrangement. Section 2.023.02. Except as the Association Trustee shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Credit OTF Grant shall be governed by the provisions of Schedule 1 3 to this Agreement. Section 3.03. When submitting a Subproject to the Trustee, for approval of the Trustee or the Executive Committee (as the case may be, pursuant to paragraph 2 (b) and (c) of Schedule 1 to this Agreement), the Recipient shall furnish to the Trustee an application, in form and substance satisfactory to the Trustee, containing: (a) DAWASA shall carry out or cause an appraisal of the Subproject, and a description of the expenditures proposed to be carried out, financed out of the obligations proceeds of the OTF Grant; (b) a detailed description of how such Subproject meets the criteria and requirements set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 the Subproject Guidelines; and 9.08 of (c) such other information as the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) Trustee or the Executive Committee shall reasonably request in respect of such Subproject. (a) The Recipient shall enter into an agreement (the Subgrant Agreement) with each Beneficiary, under terms and conditions satisfactory to the Trustee, including those set forth in Schedule 5 to this Agreement, providing for the transfer, on a grant basis, of the proceeds of the OTF Grant allocated to such Beneficiary’s Subproject and the obligation of the Beneficiary to carry out such Subproject. (b) For The Recipient shall exercise its rights under the Subgrant Agreement in such a manner as to protect the interests of the Recipient and the Trustee and to accomplish the purposes of Section 9.06 of the General Conditions and without limitation theretoOTF Grant, DAWASA shalland, in conjunction with except as the Borrower: (i) prepare, on the basis of guidelines acceptable to the Association and furnish to the Association not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose among the AssociationTrustee shall otherwise agree, the Borrower and DAWASARecipient shall not assign, a plan for amend, abrogate or waive the future operation of the Project designed to ensure its sustainability; and (ii) afford the Association a reasonable opportunity to exchange views with DAWASA and the Borrower on the said planSubgrant Agreement or any part thereof. Section 2.043.05. Without limitation to its obligations under Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the Project: The Recipient shall be entitled to: (a) replenish the Project Account up a fee in an amount equivalent to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion 2.5% of the Projectamounts disbursed under each Subgrant Agreement, or whenever its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and (b) ensure that amounts deposited into the Project Account shall be used exclusively to make payments to meet expenditures made or such fee to be made in respect paid out of the reasonable cost of goods, works and services for the Project in addition to those financed from the proceeds of the Credit.OTF Grant as follows: (i) 1.25% of the Subgrant amount, on the date of the signing of the Subgrant Agreement; and

Execution of the Project. (a) DAWASA TANESCO declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit Agreement, and, to this end, shall: (i) shall carry out the Project with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage engineering and resettlement technical practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project; (ii) duly and punctually perform in accordance with the provisions of the Development Contract, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Association and DAWASA TANESCO shall otherwise agree, DAWASA TANESCO shall carry out the Project in accordance with the Implementation Program set forth in Schedule 2 to this Agreement. Section 2.02. Except as the Association shall otherwise agree, procurement of the goods, works and consultants’ services goods required for the Project and to be financed out of the proceeds of the Credit shall be governed by the provisions of Schedule 1 to this Agreement. (a) DAWASA TANESCO shall carry out or cause to be carried out, the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of this Agreementthe Project. (b) For the purposes of Section 9.06 of the General Conditions and without limitation thereto, DAWASA TANESCO shall, in conjunction with the Borrower: (i) prepare, on the basis of guidelines acceptable to the Association and furnish to the Association not later than six four (64) months after the Closing Date or such later date as may be agreed for this purpose among between the Association, the Borrower and DAWASATANESCO, a plan for the future operation of the Project designed to ensure its sustainabilitythe sustainability of the Project’s objectives; and (ii) afford the Association a reasonable opportunity to exchange views with DAWASA and the Borrower and TANESCO on the said plan. Section 2.04. Without limitation to TANESCO shall duly perform all its obligations under the Subsidiary Grant Agreement. Except as the Association shall otherwise agree, TANESCO shall not take or concur in any action which would have the effect of amending, abrogating, assigning or waiving the Subsidiary Grant Agreement or any provision thereof. Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the Project: 2.05. (a) replenish TANESCO shall, at the Project Account up request of the Association, exchange views with the Association with regard to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion progress of the Project, or whenever the performance of its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and (b) ensure that amounts deposited into obligations under this Agreement and under 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 CreditSubsidiary Grant Agreement.

Execution of the Project. (a) DAWASA The Harbor Bureau declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit Agreement, and, to this end, shall: (i) the Harbor Bureau shall carry out the Project with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage engineering and resettlement port practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project; (ii) duly and punctually perform in accordance with the provisions of the Development Contract, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon the provisions of paragraph (a) of this Section Section, and except as the Association Association, the Bank and DAWASA the Harbor Bureau shall otherwise agree, DAWASA the Harbor Bureau shall carry out Part B of the Project in accordance with the Implementation Program set forth in the Schedule 2 to this Agreement. Section 2.02. Except as the Association and the Bank shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Credit and of the Loan shall be governed by the provisions of Schedule 1 3 to this the Development Credit Agreement. (a) DAWASA Section 2.03. The Harbor Bureau shall carry out or cause to be carried out, the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions applicable to the Development Credit Agreement and in Sections 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09 of the General Conditions applicable to the Loan Agreement (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of the Project Agreement. Section 2.04. The Harbor Bureau shall duly perform all its obligations under the Subsidiary Loan Agreement. Except as the Association and the Bank shall otherwise agree, the Harbor Bureau shall not take or concur in any action which would have the effect of amending, abrogating, assigning or waiving the Subsidiary Loan Agreement or any provision thereof. (a) The Harbor Bureau shall, at the request of the Association or the Bank, exchange views with the Association or the Bank with regard to progress of the Project, the performance of its obligations under this Agreement and under the Subsidiary Loan Agreement, and other matters relating to the purposes of the Credit and the Loan. (b) For the purposes of Section 9.06 of the General Conditions and without limitation thereto, DAWASA shall, in conjunction with the Borrower: (i) prepare, on the basis of guidelines acceptable to The Harbor Bureau shall promptly inform the Association and furnish the Bank of any condition which interferes or threatens to interfere with the Association not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose among the Association, the Borrower and DAWASA, a plan for the future operation of the Project designed to ensure its sustainability; and (ii) afford the Association a reasonable opportunity to exchange views with DAWASA and the Borrower on the said plan. Section 2.04. Without limitation to its obligations under Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the Project: (a) replenish the Project Account up to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion progress of the Project, or whenever its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and (b) 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 accomplishment of the reasonable cost of goods, works and services for the Project in addition to those financed from the proceeds purposes of the CreditCredit and the Loan, or the performance by the Harbor Bureau of its obligations under this Agreement and under the Subsidiary Loan Agreement.

Execution of the Project. (a) DAWASA The Borrower declares its commitment to the objectives of the Project Project, as set forth in Schedule 2 to the Development Credit Agreement, this Agreement and, to this end, shall: (i) shall carry out the Project through DPWH with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage administrative and resettlement financial practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project; (ii) duly and punctually perform in accordance with the provisions of the Development Contract, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Association Borrower and DAWASA the Bank shall otherwise agree, DAWASA the Borrower shall carry out the Project in accordance with the Implementation Program set forth in Schedule 2 5 to this Agreement. Section 2.023.02. Except as the Association Bank shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Credit Loan shall be governed by the provisions of Schedule 1 4 to this Agreement. (a) DAWASA shall carry out or cause to be carried out, the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of this Agreement. (b) Section 3.03. For the purposes of Section 9.06 9.08 of the General Conditions and without limitation thereto, DAWASA the Borrower shall, in conjunction with the Borrower: (ia) prepare, on the basis of guidelines acceptable to the Association Bank, and furnish to the Association Bank not later than six (6) months after before the Closing Date or such later date as may be agreed for this purpose among the Association, between the Borrower and DAWASAthe Bank, a plan for the future operation of the Project designed to ensure its sustainabilityProject; and (iib) afford the Association Bank a reasonable opportunity to exchange views with DAWASA and the Borrower on the said plan. Section 2.043.04. Without limitation to its obligations under Section 2.01 of this Agreement, DAWASA The Borrower shall, for the purposes prior to commencing work on upgrading of making available the counterpart contribution to the financing roads under Part A of the ProjectProject and prior to any displacement of any Affected Persons: (ai) replenish undertake the Project Account up acquisition of all necessary land and other property, compensation therefor and resettlement in accordance with the principles and institutional procedures established in the Resettlement Policy. (ii) ensure that Affected Persons shall be compensated, resettled and rehabilitated in accordance with the Resettlement Policy; (iii) prepare and furnish to the initial amount Bank, for each road to be upgraded where the number of seven hundred fifty million Tanzanian Shillings Affected Persons is higher than 200, a detailed resettlement action plan acceptable to the Bank documenting the implementation arrangements for resettlement, including compensation, relocation and rehabilitation of Affected Persons; (Tshs 750,000,000iv) at complete the end implementation of such resettlement action plan in a manner satisfactory to the Bank; (v) prepare and furnish to the Bank, for each Project Quarter until road to be upgraded, an Environmental Management Plan, satisfactory to the completion of the ProjectBank, or whenever its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000)and thereafter implement such Plan accordingly; and (bvi) ensure that amounts deposited into prepare and furnish to the Project Account shall be used exclusively to make payments to meet expenditures made or Bank, for each road to be made upgraded where there are more than ten households in respect of the reasonable cost of goodsa “purok" or "sitio" comprising indigenous persons, works a separate social impact assessment, and services for the Project in addition to those financed from the proceeds of the Creditan Indigenous Peoples Plan.

Execution of the Project. (a) DAWASA The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit this Agreement, and, to this end, shall: (i) shall carry out the Project through HDA-PIU and the Project Implementation Agencies with due diligence and efficiency and in conformity with appropriate administrativeengineering, financial, engineering, environmental, water, sewerage administrative and resettlement environmental practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project; (ii) duly and punctually perform in accordance with the provisions of the Development Contract, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Association Borrower and DAWASA the Bank shall otherwise agree, DAWASA the Borrower shall carry out the Project in accordance with the Implementation Program set forth in Schedule 2 5 to this Agreement. (c) The Borrower shall make the proceeds of the Loan available to each Project Implementation Agency under a Protocol to be entered into between HDA and each Project Implementation Agency, under standard terms and conditions which shall have been approved by the Borrower and the Bank and which shall include, inter alia, provisions with respect to: (i) description of the activity to be financed under the Protocol and the amount of the proceeds of the Loan to be made available to the Project Implementation Agency for the implementation thereof; (ii) the arrangement for implementation of such activity under the overall supervision of the PIU; (iii) undertakings of the Project Implementation Agency to maintain separate records and accounts for such activity and to furnish the PIU with quarterly reports on progress of the implementation thereof; (iv) the obligation of the Project Implementation Agency to undertake, under the overall supervision of the PIU, the procurement of goods and works under such activity in accordance with the provisions of Schedule 4 to this Agreement; and (v) the technical assistance needs, if any, to be provided to the Project Implementation Agency for implementation of the activity. (d) The Borrower shall exercise its rights under each Protocol in such manner as to protect the interests of the Borrower and the Bank and to accomplish the purposes of the Loan, and, except as the Bank shall otherwise agree, the Borrower shall not assign, amend, abrogate or waive any Protocol or any provision thereof. Section 2.023.02. Except as the Association Bank shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Credit Loan shall be governed by the provisions of Schedule 1 4 to this Agreement. (a) DAWASA shall carry out or cause to be carried out, the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of this Agreement. (b) Section 3.03. For the purposes of Section 9.06 9.08 of the General Conditions and without limitation thereto, DAWASA the Borrower shall, in conjunction with the Borrower: (ia) prepare, on the basis of guidelines acceptable to the Association Bank, and furnish to the Association Bank not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose among the Association, between the Borrower and DAWASAthe Bank, a plan for the future operation of the Project designed to ensure its sustainabilityProject; and (iib) afford the Association Bank a reasonable opportunity to exchange views with DAWASA and the Borrower on the said plan. Section 2.04. Without limitation to its obligations under Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the Project: (a) replenish the Project Account up to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion of the Project, or whenever its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and (b) 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.

Execution of the Project. (a) DAWASA Each Sanitation and Drainage Company declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit Agreement, and, to this end, shall: shall carry out the following Parts or parts thereof of the Project: (i) the Cam Pha Urban Environmental Company shall carry out Parts A.1. A. 5, B.1 and C of the Project Project; (ii) the Danang Urban Environmental Company shall carry out Parts A.2, A.5, B.2 and C of the Project; (iii) the Haiphong Sewerage and Drainage Company shall carry out Parts A.3, A.5, B.3 and C of the Project; and (iv) the Ha Long Environmental Sanitation and Drainage Company shall carry out Parts A.4, A.5, B.4 and C of the Project; all with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, waterresettlement and rehabilitation of Affected Persons, sewerage and resettlement water supply practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project; (ii) duly and punctually perform in accordance with the provisions of the Development Contract, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practicesrequired. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Association and DAWASA the Sanitation and Drainage Companies shall otherwise agree, DAWASA each Sanitation and Drainage Company shall carry out its Respective Parts of the Project in accordance with the Implementation Program set forth in Schedule 2 1 to this Agreement. Section 2.02. Except as the Association shall otherwise agree, : (a) procurement of the goods, works and consultants’ services required for Parts A and B of the Project and to be financed out of the proceeds of the Credit shall be governed by the provisions of Schedule 1 2 to this Agreement; and (b) procurement of works, goods and services for the Sanitation Sub-projects financed by XXX-Sanitation Sub-loans shall be governed by the provisions of paragraph 6(b) of Schedule 3 to the Project Agreement. Section 2.03. (a) DAWASA Each Sanitation and Drainage Company shall carry out or cause to be carried out, the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of this Agreement. (b) For the purposes of Section 9.06 of the General Conditions and without limitation thereto, DAWASA shall, in conjunction with the Borrower: (i) prepare, on the basis of guidelines acceptable to the Association and furnish to the Association not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose among the Association, the Borrower and DAWASA, a plan for the future operation of the Project designed to ensure its sustainability; and (ii) afford the Association a reasonable opportunity to exchange views with DAWASA and the Borrower on the said plan. Section 2.04. Without limitation to its obligations under Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing Respective Parts of the Project: (a) replenish the Project Account up to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion of the Project, or whenever its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and (b) 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.

Execution of the Project. (a) DAWASA The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit Agreement, and, to this end, shall: (i) shall carry out the Project Project, through MOH (with the assistance of the Eligible Municipalities, in respect of Part A of the Project, as well as with the assistance of the Research Entity with regard to Part C.4 of the Project), with due diligence and efficiency and in conformity with appropriate health, economic, technical, administrative, financial, engineering, environmental, water, sewerage and resettlement environmental practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) The Borrower shall operate and maintain, during the implementation of the Project, a Project coordination unit (PCU) with functions and responsibilities satisfactory to the Bank, at all times headed by a Project coordinator and assisted by staff in adequate numbers, all with qualifications and experience acceptable to the Bank. (c) The Borrower shall, through MOH, enter into an agreement with each Eligible Municipality under terms and conditions satisfactory to the Bank, substantially in accordance with the terms of the Model Conversion Subproject Implementation Agreement, setting forth, inter alia, in respect of each Conversion Subproject: (i) The Eligible Municipality’s obligation: (A) to carry out the Conversion Subproject and to meet the performance benchmarks related thereto; (B) to procure the goods, works and services in accordance with: (I) the requirements of this Agreement; and (II) the contracting procedures and schedule specified in the procurement plan for all goods, works and services, including all the ICB Goods and QCBS Consultants (which plan shall form part of the Conversion Subproject Implementation Agreement); (C) to keep records and accounts for the expenditures financed under the Conversion Subproject; (D) to utilize the proceeds of the Conversion Subproject Transfers and provide information to MOH on the use thereof in accordance with the procedures set forth in the Operational Manual; and (E) to enable the Bank to review the Eligible Municipality’s accounts and other information as the Bank shall reasonably request in respect of the Conversion Subproject, the Basic Health Care Program and the Family Health Program; (ii) duly the schedule of disbursements, by MOH to the Eligible Municipality, of the Conversion Subproject Transfers; (iii) the technical, financial and punctually perform procurement requirements: (A) for the implementation of the Conversion Subproject, the Basic Health Care Program and the Family Health Program; and (B) to qualify for continued participation in the Basic Health Care Program and Family Health Program in years subsequent to the term of the relevant Conversion Subproject Implementation Agreement; (iv) the requirements for auditing the Conversion Subprojects and expenditures under the Basic Health Care Program and the Family Health Program; (v) the procurement review requirements applicable to Group 3 Municipalities for the Conversion Subproject and the Basic Health Care Program and the Family Health Program; (vi) MOH’s right to suspend disbursements, or cancel amounts to be disbursed, as the case may be, in the event of non compliance by the Eligible Municipality with the obligations set forth in the Conversion Subproject Implementation Agreement; and (vii) a list of the groups of Eligible Municipality expenditures that are eligible for financing by proceeds of the Loan. (d) The Borrower shall, through the MOH’s Fund, disburse to each Eligible Municipality’s health fund, the Conversion Subproject Transfers in accordance with the provisions of this Agreement. (e) The Borrower shall, through MOH, enter into an agreement with the Development ContractResearch Entity, Lease Contract under terms and conditions satisfactory to the DAWASA Subloan Agreement all its obligations therein set forth and Bank, setting forth, inter alia, the Research Entity’s obligation to carry out Part C.4 of the Project. (f) The Borrower shall exercise its rights thereunder and carry out its obligations under the Research Entity Agreement and each of the Conversion Subproject Implementation Agreements in such manner as to protect the interests of the Borrower and the Association Bank and to accomplish the purposes of the Credit; Loan, and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Association and DAWASA Bank shall otherwise agree, DAWASA the Borrower shall carry out not assign, amend, abrogate, suspend, waive, terminate or fail to enforce the Project in accordance with the Research Entity Agreement or any Conversion Subproject Implementation Program set forth in Schedule 2 to this Agreement. Section 2.023.02. (a) Except as the Association Bank shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Credit Loan, as well as those to be financed by the MOH’s Fund disbursements for Conversion Subproject Transfers under Conversion Subproject Implementation Agreements, shall be governed by the provisions of Schedule 1 4 to this Agreement. (a) DAWASA shall carry out or cause to be carried out, the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of this Agreement. (b) For the purposes of Section 9.06 of the General Conditions and without limitation thereto, DAWASA shall, in conjunction with the Borrower: (i) prepare, on the basis of guidelines acceptable to the Association and furnish to the Association not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose among the Association, the Borrower and DAWASA, a plan for the future operation of the Project designed to ensure its sustainability; and (ii) afford the Association a reasonable opportunity to exchange views with DAWASA and the Borrower on the said plan. Section 2.04. Without limitation to its obligations under Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the Project: (a) replenish the Project Account up to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion of the Project, or whenever its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and (b) 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.

Execution of the Project. (a) DAWASA declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit Agreement, and, to this end, shall: (i) Section 3.01. The Recipient shall carry out the Project with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage administrative and resettlement financial practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project; (ii) duly and punctually perform in accordance with the provisions of the Development Contract, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Association and DAWASA shall otherwise agree, DAWASA shall carry out the Project in accordance with the Implementation Program set forth in Schedule 2 to this Agreement. Section 2.023.02. Except as the Association Administrator shall otherwise agree, procurement of the goods, works and consultants’ ' services required for the Project and to be financed out of the proceeds of the Credit Grant shall be governed by the provisions of Schedule 1 3 to this Agreement. (a) DAWASA The Recipient shall carry out maintain or cause to be carried out, the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, maintained records and reportsaccounts adequate to reflect in accordance with sound accounting practices the operations, maintenance resour-ces and land acquisition, respectively) expenditures in respect of this Agreementthe Project of the departments or agencies of the Recipient responsible for carrying out the Project or any part thereof. (b) For the purposes of Section 9.06 of the General Conditions and without limitation thereto, DAWASA The Recipient shall, in conjunction with the Borrower: (i) preparehave the records and accounts referred to in paragraph (a) of this Section for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Administrator; (ii) furnish to the Administrator as soon as available, but in any case not later than six months after the end of each such year, the report of such audit by said auditors, of such scope and in such detail as the Administrator shall have reasonably requested; and (iii) furnish to the Administrator such other informa-xxxx concerning said records and accounts and the audit thereof as the Administrator shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Account were made on the basis of guidelines acceptable statements of expenditure, the Recipient shall: (i) maintain or cause to the Association be maintained, in accordance with paragraph (a) of this Section, records and furnish to the Association not later than six accounts reflecting such expenditures; (6ii) months retain, until at least one year after the Closing Date or such later date as may be agreed for this purpose among Admin-istrator has received the Association, the Borrower and DAWASA, a plan audit report for the future operation of fiscal year in which the Project designed last withdrawal from the Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Administrator's representatives to ensure its sustainabilityexamine such records; and (iiiv) afford ensure that such records and accounts are included in the Association a reasonable opportunity annual audit referred to exchange views with DAWASA and the Borrower on the said plan. Section 2.04. Without limitation to its obligations under Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the Project: (a) replenish the Project Account up to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion of the Project, or whenever its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and in paragraph (b) ensure of this Section and that amounts deposited into the Project Account shall report of such audit contains a separate opinion by said auditors as to whether the statements of expenditure submitted during such fiscal year, together with the procedures and internal controls involved in their preparation, can be used exclusively relied upon to make payments to meet expenditures made or to be made in respect of support the reasonable cost of goods, works and services for the Project in addition to those financed from the proceeds of the Creditrelated withdrawals.

Execution of the Project. (a) DAWASA Section 3.01. The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit AgreementProject, and, to this end, shall: (i) shall carry out the Project through SAS, with the assistance of the Participating Organizations, with due diligence and efficiency and in conformity with appropriate administrative, financialagricultural, engineeringcultural, educational, environmental, waterfinancial, sewerage managerial, social, and resettlement technical practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project; (ii) duly and punctually perform in accordance with the provisions of the Development Contract, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Association and DAWASA shall otherwise agree, DAWASA shall carry out the Project in accordance with the Implementation Program set forth in Schedule 2 to this Agreement. Section 2.023.02. Except as the Association Bank shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Credit Loan shall be governed by the provisions of Schedule 1 4 to this Agreement. (a) DAWASA The Borrower shall carry out or cause the Project in accordance with a manual (the Operational Manual), acceptable to the Bank, said manual to include, inter alia: (i) an institutional implementation plan of SAS for the management of the Project (including, inter alia, allocation of responsibilities within staff, yearly planning of activities and budget and time allocation for those activities); (ii) the procurement, financial management, project implementation plans and environmental guidelines to be followed during Project implementation by the Borrower and the Participating Organizations; (iii) the guidelines for the preparation of the Annual Action Plans; (iv) the criteria and procedures for: (A) the selection of Participating Organizations to receive Subproject Grants; (B) the preparation, review, approval and implementation of Subprojects (including, inter alia, the appropriate environmental requirements, a suggested list of possible activities to be carried outout under Subprojects and a negative list of activities that cannot be carried out under Subprojects); (C) the financial management procedures applicable to the Subprojects; and (D) the procurement and contracting procedures applicable to goods, works and consultant’s services procured by the Participating Organizations under Subprojects; and (v) the Model Forms of the Subproject Agreements. (b) Except as the Borrower, through SAS, and the Bank may otherwise agree in writing, the obligations set forth in Sections 9.03Borrower shall not amend, 9.04suspend, 9.05abrogate, 9.06, 9.07 and 9.08 waive or otherwise fail to enforce the Operational Manual or any provision thereof. (c) In case of any conflict between the terms of the General Conditions Operational Manual and those of this Agreement, the terms of this Agreement shall prevail. Section 3.04. The Borrower shall: (relating a) not later than October 15 of each year during Project implementation, starting in year 2002, furnish to insurancethe Bank, use for its approval, an annual action plan (the Annual Action Plan), each said plan to include, inter alia: (i) the Project activities to be carried out by the Borrower with the assistance of goods the Participating Organizations, during the calendar year following the presentation of each said plan; (ii) the procurement plan, disbursement schedule, and serviceschart of accounts for each said calendar year; and (iii) the amount of counterpart funds needed and to be provided by the Borrower to carry out the Project during said calendar year; (b) thereafter implement each said Annual Action Plan, plans approved by the Bank, in accordance with its terms; and schedules, records and reports, maintenance and land acquisition, respectively(c) in respect carry out the Annual Action Plan for the year 2002 as approved by the Bank prior to the date of this Agreement. (a) Upon approval of the corresponding Annual Action Plan by the Bank, the Borrower shall: (i) enter into an agreement or amend an existing agreement (the Subproject Agreement) with each relevant Participating Organization, on terms and conditions satisfactory to the Bank, including, inter alia, the obligation of each said Participating Organization to assist the Borrower in the implementation of the corresponding Annual Action Plan and to follow the provisions of the Operational Manual; and (ii) cause each relevant Participating Organization to carry out its obligations under each Subproject Agreement, respectively. (i) The Borrower shall exercise its rights and carry out its obligations under each Subproject Agreement in such manner as to protect the interests of the Borrower and the Bank and to accomplish the purposes of the Loan; and (ii) except as the Bank shall otherwise agree, the Borrower shall not assign, amend, abrogate, terminate, waive or fail to enforce any Subproject Agreement or any provision thereof. (c) In case of any conflict among the terms of any Subproject Agreement, the Operational Manual and those of this Agreement, the terms of this Agreement shall prevail. (a) The Borrower shall establish, and thereafter operate and maintain within SAS, at all times during Project implementation, a Project coordination unit (the PCU) with a structure, functions and responsibilities acceptable to the Bank, including, inter alia, the responsibility of the PCU to assist the Borrower in the coordination, monitoring and supervision of the Project. (b) The Borrower shall ensure that the PCU is, at all times during Project implementation, headed by a Project coordinator and staffed with a financial director, an administrative director, a procurement specialist and other professional and administrative staff, all hired through competitive processes, with qualifications and experience acceptable to the Bank. Turnover of PCU staff shall be duly justified by the Borrower, through SAS, and said justification shall be satisfactory to the Bank. Section 3.07. The Borrower shall: (a) maintain or cause to be maintained policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with the indicators set forth in the Implementation Letter and the data produced by the monitoring and evaluation program referred to in Part C.3 of the Project, the carrying out of the Project and the achievement of the objective thereof; (b) prepare, under terms of reference satisfactory to the Bank, and furnish to the Bank, each December 31 and June 30 during Project implementation, starting with the report due not later than December 31, 2002, a report integrating the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project during the calendar semester preceding the date of presentation of the report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objective thereof during the following calendar semester; (c) review with the Bank, within sixty days (60) of receipt of such report, or such later date as the Borrower and the Bank shall agree, the pertinent reports referred to in paragraph (b) of this Section, and, thereafter, take all measures required to ensure the efficient completion of the Project and the achievement of the objective thereof, based on the conclusions and recommendations of said reports and the Bank’s views on the matter; (d) employ independent auditors, under terms of reference satisfactory to the Bank, to monitor the eligibility of Participating Organizations and compliance with the requirements of the Operational Manual in respect of Subproject Grants; (e) provide to the Bank for its review, the first three urban and the first three rural subprojects to be approved each calendar year during Project implementation; and (f) carry out an in-depth review (the Mid-Term Review) jointly with the Bank, by December 31, 2004, or such later date as the Bank shall agree, on the progress achieved in the implementation of the Project. Section 3.08. Without limitation to the provisions of Section 3.01 of this Agreement, the Borrower shall include in each proposed annual budget to its legislature, and make available each year of Project implementation, promptly as needed, in Guaraníes, the minimum amounts set forth in Section 3.04 (a) (iii) of this Agreement, as counterpart funds for the carrying out of the Project. Section 3.09. For the purposes of Section 9.06 9.07 of the General Conditions and without limitation thereto, DAWASA the Borrower shall, in conjunction with the Borrower: (ia) prepare, on the basis of guidelines acceptable to the Association Bank, and furnish to the Association Bank not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose among the Association, between the Borrower and DAWASAthe Bank, a plan for the future operation of the Project designed to ensure its sustainabilitythe sustainability of the Project; and (iib) afford the Association Bank a reasonable opportunity to exchange views with DAWASA and the Borrower on the said plan. Section 2.04. Without limitation to its obligations under Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the Project: (a) replenish the Project Account up to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion of the Project, or whenever its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and (b) 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.

Execution of the Project. (a) DAWASA The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit this Agreement, and, to this end, shall: (i) shall carry out the Project Project, through DGI, with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage administrative and resettlement financial practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without limitation upon the provisions of paragraph (a) of this Section, the Borrower shall ensure that DGI, until the Closing Date, carries out its functions and responsibilities in respect of the Project in a manner satisfactory to the Bank, such functions and responsibilities to include, inter alia, the following: (i) the development of a computerized database in relation to the Borrower’s 2,000 largest taxpayers and supervising the implementation of adequate measures to prevent tax avoidance and to promote tax compliance by such taxpayers through use of the computerized database; (ii) duly implementing and punctually perform in accordance with the provisions monitoring a new internal auditing system which shall include a training program for current employees of the Development Contract, Lease Contract DGI and the DAWASA Subloan Agreement all employment of external and independent auditors for the purpose of an initial six-month internal auditing program and thereafter preparing an auditing program for 1990 satisfactory to the Bank; (iii) providing new computing equipment and the training of DGI personnel in its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect use; (iv) preparing annual reports on the interests progress of the Borrower and the Association and accomplish the purposes of the CreditProject; and (iiiv) cause maintaining a Coordinating Commission, a Project Director, and an Executive Unit, headed by an Executive Director and with functions satisfactory to the Operator to carry out its obligations under Bank, and Directors (the Component Directors) for the managing and supervision of each of the parts of the Project, Lease Contract . The Executive Director and DAWASA Subloan Agreement with due diligence each of the Component Directors shall have qualifications and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practicesfunctions satisfactory to the Bank. (bc) Without limitation upon the provisions of paragraph (a) of this Section and except as the Association Borrower and DAWASA the Bank shall otherwise agree, DAWASA the Borrower shall carry out the Project in accordance with the Implementation Program satisfactory to the Bank. (a) The Borrower through DGI shall enter into contractual arrangements (the Management Service Contract) satisfactory to the Bank, with an agent or agents acceptable to the Bank for handling the procurement and acquisition of new computing equipment for use in the DGI under Part F of the Project. (b) The Borrower through DGI shall exercise its rights under the Management Service Contract in such a manner as to protect the interest of the parties to this greement and to accomplish the purposes of the Loan and, except as the Bank shall otherwise agree, the Borrower shall not assign, amend, abrogate or waive any Management Service Contract or any provision thereof. (a) Not later than April 30, 1989, the Borrower, through DGI, shall provide to the Bank a list of key indicators applicable to information available within DGI and satisfactory to the Bank, to be used in improving DGI’s internal auditing and management. (b) Not later than each subsequent October 31 and April 30, until the Closing Date, the Borrower through DGI shall furnish to the Bank a written report of such scope and detail as the Bank shall reasonably request containing an evaluation of the performance of DGI through such key indicators during the preceding period of January 1 through June 30 or July 1 through December 31, as the case may be. In addition, the Borrower shall issue such report, within 90 days from the Closing Date, as to the period between the last date covered by such semi-annual report and the Closing Date. Section 3.04. The Borrower through DGI (i) will promptly upon the completion of the internal auditing program for 1989, constituting Part D (iv) of the Project, provide to the Bank the results of such auditing program; (ii) shall afford the Bank a reasonable opportunity to comment on said results, and (iii) shall take into account the Bank’s comments thereon in connection with the preparation of the auditing program for 1990 satisfactory to the Bank constituting Part D (v) of the Project. Section 3.05. The Borrower shall prepare and furnish to the Bank, through the DGI, not later than September 1 of each year, for its review and agreement, an Annual Action Program containing the objectives, activities, institutional arrangements and anticipated results of the execution of each part of the Project in the immediately following fiscal year. Section 3.06. The Borrower through DGI shall: (i) carry out the studies included under Parts D and E of the Project described in Schedule 2 to this Agreement under terms of reference satisfactory to the Bank which, unless the Borrower and the Bank shall otherwise agree, shall include specific programs or plans of action to meet the objectives of the Project; (ii) promptly after completion of each such study, furnish to the Bank a copy of its findings and recommendations including such programs or plans of action; (iii) afford the Bank a reasonable opportunity to comment on such findings, recommendations and programs or plans of action; (iv) where appropriate, taking into account the Bank’s comments thereon, prepare and carry out programs or plans of action satisfactory to the Bank to implement the recommendations of such studies as required to meet the objectives of the Project as set forth in Schedule 2 to this Agreement; and (v) shall carry out the recommendations of the study included under Part C of the Project which it regards as appropriate and feasible for attaining said objectives of the Project. Section 2.02. (a) Except as the Association Bank shall otherwise agree, procurement of the goods, works goods and consultants’ services required for the Project and to be financed out of the proceeds of the Credit Loan shall be governed by the provisions of Schedule 1 4 to this Agreement. (a) DAWASA shall carry out or cause to be carried out, the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of this Agreement. (b) For Notwithstanding the purposes provisions of Section 9.06 of the General Conditions paragraph (a) above and without limitation thereto, DAWASA shall, in conjunction with the Borrower: (i) prepare, on the basis acquisition of guidelines acceptable to the Association and furnish to the Association not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose among the Association, the Borrower and DAWASA, a plan for the future operation of the Project designed to ensure its sustainability; and (ii) afford the Association a reasonable opportunity to exchange views with DAWASA and the Borrower on the said plan. Section 2.04. Without limitation to its obligations under Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the Project: (a) replenish the Project Account up to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion of the Project, or whenever its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and (b) 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 any goods required for the Project in addition by means of leasing arrangements, as well as the acquisition of computer software by means other than purchase, shall be carried out under procedures satisfactory to those the Bank. (c) Public servants employed by the Borrower under any kind of administrative arrangements (including leave without pay) shall not be eligible during the term of employment by the Borrower, for providing consulting services to be financed from out of the proceeds of the CreditLoan. (d) The Borrower shall maintain in DGI qualified staff in adequate number as counterparts of the consultants employed under the Project.

Execution of the Project. (a) DAWASA Section 3.01. The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit AgreementProject, and, to this end, shall: (ia) cause BANSEFI to carry out Parts A, C.1 and D.1 of the Project with due diligence and efficiency and in conformity with appropriate administrative, financial, engineeringand technical practices; (b) carry out Parts B, environmentalC.2 and D.2 of the Project through SAGARPA, wateraccording to the terms, sewerage inter alia, of Part B of Schedule 6 to this Agreement and resettlement practiceswith due diligence and efficiency and in conformity with appropriate administrative, financial, and shall technical practices; and (c) provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project. Section 3.02. (a) The Borrower, through SHCP, and SAGARPA as co-executing agency, shall enter into a contract (Contrato xx Xxxxxxx) with BANSEFI, satisfactory to the Bank, whereby: (i) BANSEFI agrees to act as financial agent of the Borrower with regard to the Loan and entity responsible for the implementation of Parts A, C.1 and D.1 of the Project, meaning that, inter alia, BANSEFI agrees to: (A) represent the Borrower vis-à-vis the Bank for purposes of submitting Loan withdrawal applications to the Bank in form and substance sufficient to justify disbursement by the Bank to the Borrower of Loan proceeds; and (B) carry out Parts A, C.1 and D.1 of the Project according to the terms of this Agreement (particularly, but not limited to, the terms of Article IV of, Schedules 4 and 5 to, and Part A of Schedule 6 to, this Agreement); (ii) duly SAGARPA agrees to carry out Parts B, C.2 and punctually perform in accordance with the provisions D.2 of the Development Contract, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; andProject; (iii) cause the Operator Borrower agrees that, through SHCP and SAGARPA as co-executing agency, the Borrower shall cooperate fully with BANSEFI to carry out its ensure that BANSEFI is able to comply with all of BANSEFI’s obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and referred to in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon the provisions of paragraph (a) (i) (A) of this Section and except as the Association and DAWASA shall otherwise agree, DAWASA shall carry out the Project in accordance with the Implementation Program set forth in Schedule 2 to this Agreement. Section 2.02. Except as the Association shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Credit shall be governed by the provisions of Schedule 1 to this Agreement. (a) DAWASA shall carry out or cause to be carried out, the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 4.01 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect 4.02 of this AgreementAgreement as to consolidation of information provided by SAGARPA. (b) For the purposes of Section 9.06 of the General Conditions and without limitation thereto, DAWASA shall, in conjunction with the Borrower: (i) prepare, on the basis of guidelines acceptable to the Association and furnish to the Association not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose among the Association, the Borrower and DAWASA, a plan for the future operation of the Project designed to ensure its sustainability; and (ii) afford the Association a reasonable opportunity to exchange views with DAWASA and the Borrower on the said plan. Section 2.04. Without limitation to its obligations under Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the Project: (a) replenish the Project Account up to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion of the Project, or whenever its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and (b) 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.

Execution of the Project. (a) DAWASA The Recipient declares its commitment to the objectives objective of the Project as set forth in Schedule 2 to the Development Credit Agreement, this Agreement and, to this end, shall: (i) shall carry out the Project through MEPNS with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage financial and resettlement practices, administration practices and with due regard to ecological and environmental factors and shall provide, or cause to be provided, promptly as needed, the fundspersonnel, facilities, services and other resources required for the Project; (ii) duly and punctually perform in accordance with the provisions of the Development Contract, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Association Recipient and DAWASA the Bank shall otherwise agree, DAWASA the Recipient shall carry out the Project in accordance with the Implementation Program set forth in Schedule 2 4 to this Agreement. Section 2.023.02. Except as the Association Bank shall otherwise agree, procurement of the goods, works goods and consultants’ services required for the Project and to be financed out of the proceeds of the Credit GEF Trust Fund Grant shall be governed by the provisions of Schedule 1 3 to this Agreement. (a) DAWASA shall carry out or cause to be carried out, the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of this Agreement. (b) Section 3.03. For the purposes of Section 9.06 9.08 of the General Conditions and without limitation thereto, DAWASA the Recipient shall, in conjunction with the Borrower: (ia) prepare, on the basis of guidelines acceptable to the Association Bank, and furnish to the Association Bank not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose among between the Association, Recipient and the Borrower and DAWASABank, a plan for the future operation continued achievement of the Project designed to ensure its sustainabilityProject’s objectives; and (iib) afford the Association Bank a reasonable opportunity to exchange views with DAWASA and the Borrower Recipient on the said plan. Section 2.043.04. Without limitation The Recipient shall take all measures necessary to its obligations under Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the Projectensure that: (a) replenish each Beneficiary shall comply with all relevant environmental requirements of the Recipient for any ODS phase-out activity to be carried out under the Project; and (b) an environmental review of each Sub-project shall be undertaken by the MEPNS prior to conclusion of the Sub-project Agreement related thereto. Section 3.05. The Bank and the Recipient agree that in no event shall the selection by MEPNS of any Sub-project for inclusion in the Project Account up be deemed an irrevocable commitment by the Recipient or the Bank to finance the specified ODS phase-out activities out of the GEF Trust Fund Grant; and that, at any time prior to the initial amount making of seven hundred fifty million Tanzanian Shillings any disbursements to any Beneficiary any Sub-project may, by agreement between the Recipient and the Bank, be excluded from the Project or be substituted by another sub-project, provided the Sub-project which is proposed for substitution is: (Tshs 750,000,000a) at technically and financially feasible; (b) consistent with the end of each Project Quarter until the completion objectives of the Project, or whenever its balance shall be less than two hundred fifty million Tanzanian Shillings ; and (Tshs 250,000,000); and (bc) 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 meets with requirements of the reasonable cost of goods, works and services for the Project in addition to those financed from the proceeds of the CreditGEF.

Execution of the Project. (a) DAWASA declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit Agreement, and, to this end, shall: (i) Section 3.01. The Recipient shall carry out the Project with due diligence and efficiency and in conformity with appropriate environmental, administrative, financial, engineering, environmental, water, sewerage and resettlement financial practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project; (ii) duly and punctually perform in accordance with the provisions of the Development Contract, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Association and DAWASA shall otherwise agree, DAWASA shall carry out the Project in accordance with the Implementation Program set forth in Schedule 2 to this Agreement. Section 2.023.02. Except as the Association Administrator shall otherwise agree, procurement of the goods, works goods and consultants’ ' services required for the Project and to be financed out of the proceeds of the Credit Grant shall be governed by the provisions of Schedule 1 3 to this Agreement. (a) DAWASA The Recipient shall carry out maintain or cause to be carried out, the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, maintained records and reportsaccounts adequate to reflect in accordance with sound accounting practices the operations, maintenance resources and land acquisition, respectively) expenditures in respect of this Agreementthe Project of the departments or agencies of the Recipient responsible for carrying out the Project or any part thereof. (b) For the purposes of Section 9.06 of the General Conditions and without limitation thereto, DAWASA The Recipient shall, in conjunction with the Borrower: (i) preparehave the records and accounts referred to in paragraph (a) of this Section for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Administrator; (ii) furnish to the Administrator as soon as available, but in any case not later than four months after the end of each such year, the report of such audit by said auditors, of such scope and in such detail as the Administrator shall have reasonably requested; and (iii) furnish to the Administrator such other information concerning said records and accounts and the audit thereof as the Administrator shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Account were made on the basis of guidelines acceptable statements of expenditure, the Recipient shall: (i) maintain or cause to the Association be maintained, in accordance with paragraph (a) of this Section, records and furnish to the Association not later than six accounts reflecting such expenditures; (6ii) months retain, until at least one year after the Closing Date or such later date as may be agreed for this purpose among Administrator has received the Association, the Borrower and DAWASA, a plan audit report for the future operation of fiscal year in which the Project designed last withdrawal from the Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Administrator's representatives to ensure its sustainabilityexamine such records; and (iiiv) afford ensure that such records and accounts are included in the Association a reasonable opportunity annual audit referred to exchange views with DAWASA and the Borrower on the said plan. Section 2.04. Without limitation to its obligations under Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the Project: (a) replenish the Project Account up to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion of the Project, or whenever its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and in paragraph (b) ensure of this Section and that amounts deposited into the Project Account shall report of such audit contains a separate opinion by said auditors as to whether the statements of expenditure submitted during such fiscal year, together with the procedures and internal controls involved in their preparation, can be used exclusively relied upon to make payments to meet expenditures made or to be made in respect of support the reasonable cost of goods, works and services for the Project in addition to those financed from the proceeds of the Creditrelated withdrawals.

Execution of the Project. (a) DAWASA DFCC Bank declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit Agreement, and, to this end, shall: (i) shall carry out the Project with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmentalrenewable energy, water, sewerage energy efficiency and resettlement energy conservation practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project; (ii) duly and punctually perform in accordance with the provisions of the Development Contract, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Association and DAWASA shall otherwise agree, DAWASA DFCC Bank shall carry out the Project in accordance with the Implementation Program set forth in Schedule 2 to this Agreement and, where applicable, the provisions of Schedule 3 (Borrower’s Project Obligations) and Schedule 4 (Investment Projects) of the Development Credit Agreement. Section 2.02. Except as the Association shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Credit shall be governed by the provisions of Schedule 1 to this Agreement. Section 2.03. DFCC Bank shall, or shall cause an Investment Enterprise or a Participating Credit Institution (aas the case may be) DAWASA shall to, carry out or cause to be carried out, the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of this the GEF Project Agreement. (b) For the purposes of Section 9.06 of the General Conditions and without limitation thereto, DAWASA shall, in conjunction with the Borrower: (i) prepare, on the basis of guidelines acceptable to the Association and furnish to the Association not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose among the Association, the Borrower and DAWASA, a plan for the future operation of the Project designed to ensure its sustainability; and (ii) afford the Association a reasonable opportunity to exchange views with DAWASA and the Borrower on the said plan. Section 2.04. Without limitation to DFCC Bank shall duly perform all its obligations under the Administration Agreement. Except as the Association shall otherwise agree, DFCC Bank shall not take or concur in any action which would have the effect of amending, abrogating, assigning or waiving the Administration Agreement or any provision thereof. Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the Project: 2.05. (a) replenish Until a completion report referred to in Section 9.06 (c) of the Project Account up General Conditions has been furnished to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) Association, DFCC Bank shall, at the end request of each Project Quarter until the completion Association exchange views with the Association with regard to the progress of the Project, or whenever the performance of its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and (b) ensure that amounts deposited into obligations under this Agreement and the Project Account shall be used exclusively Administration Agreement, and other matters relating 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 purposes of the Credit.

Execution of the Project. (a) DAWASA The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit this Agreement, and, to this end, shall: (i) shall carry out the Project through the Ministry of Education with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project; (ii) duly and punctually perform in accordance with the provisions of the Development Contract, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Borrower and the Association and DAWASA shall otherwise agree, DAWASA the Borrower shall carry out the Project in accordance with the Implementation Program set forth in Schedule 2 4 to this Agreement. Section 2.023.02. Except as the Association shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Credit shall be governed by the provisions of Schedule 1 3 to this Agreement. Section 3.03. The Borrower shall establish a Project Implementation Unit (PIU) responsible for implementing the Project. The PIU shall be headed by a Project Director who shall be accountable to the Director General, DSHE. The Project Director shall be assisted by the Deputy Project Directors. Section 3.04. In order to assist the Borrower in carrying out the Project, the Borrower shall appoint Agrani Bank to be responsible for Project-related banking activities. For this purpose, the Borrower shall enter into a Participation Agreement with Agrani Bank satisfactory to the Association. The Participation Agreement shall provide inter alia for: (a) DAWASA shall carry out or cause to be carried out, the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of this Agreement. procedures for distributing stipends; (b) For Agrani Bank’s responsibilities on maintaining records; and (c) auditing of Agrani Bank activities under the purposes of Project. Section 9.06 of the General Conditions and without limitation thereto, DAWASA 3.05. The Borrower shall, in conjunction with the Borrower: (i) prepare, on the basis of guidelines acceptable to the Association and furnish to the Association not later than six (6) months after September 30, 1996 carry out jointly with the Closing Date or such later date as may be agreed for this purpose among Association a comprehensive mid term review of the Association, the Borrower and DAWASA, a plan for the future operation progress of the Project designed to ensure its sustainability; and (ii) afford and soon thereafter shall implement the Association a reasonable opportunity to exchange views with DAWASA and the Borrower on the said plan. Section 2.04recommendations of such review. Without limitation to its obligations under Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the Project: The review shall cover inter alia: (a) replenish evaluation of the impact of the Project Account up to the initial amount on enrollment of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion of the Project, or whenever its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000)girls in secondary schools; and (b) ensure that amounts deposited into recruitment of additional teachers; (c) the Project Account shall be used exclusively to make payments to meet expenditures made or to be made in respect implementation of the reasonable cost of goods, works and services for occupational skills development program; (d) the Project in addition to those financed from the proceeds implementation of the Creditfemale education awareness program; (e) the implementation of the water supply and sanitation program; and (f) the implementation of the institutional development program.

Execution of the Project. (a) DAWASA declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit Agreement, and, to this end, shall: (i) Section 4.01. The Recipient shall carry out the Project with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage financial and resettlement banking practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project; (ii) duly and punctually perform in accordance with the provisions of the Development Contract, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Association and DAWASA shall otherwise agree, DAWASA shall carry out the Project in accordance with the Implementation Program set forth in Schedule 2 to this Agreement. Section 2.024.02. Except as the Association Administrator shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Credit Grant shall be governed by the provisions of Schedule 1 3 to this Agreement. (a) DAWASA The Recipient shall carry out maintain or cause to be carried out, the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, maintained records and reportsaccounts adequate to reflect in accordance with sound accounting practices the operations, maintenance resources and land acquisition, respectively) expenditures in respect of this Agreementthe Project of the departments or agencies of the Recipient responsible for carrying out the Project or any part thereof. (b) For the purposes of Section 9.06 of the General Conditions and without limitation thereto, DAWASA The Recipient shall, in conjunction with the Borrower: (i) preparehave the records and accounts referred to in paragraph (a) of this Section for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Administrator; (ii) furnish to the Administrator as soon as available, but in any case not later than six months after the end of each such year, the report of such audit by said auditors, of such scope and in such detail as the Administrator shall have reasonably requested; and (iii) furnish to the Administrator such other information concerning said records and accounts and the audit thereof as the Administrator shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Account were made on the basis of guidelines acceptable statements of expenditure, the Recipient shall: (i) maintain or cause to the Association be maintained, in accordance with paragraph (a) of this Section, records and furnish to the Association not later than six accounts reflecting such expenditures; (6ii) months retain, until at least one year after the Closing Date or such later date as may be agreed for this purpose among Administrator has received the Association, the Borrower and DAWASA, a plan audit report for the future operation of fiscal year in which the Project designed last withdrawal from the Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Administrator’s representatives to ensure its sustainabilityexamine such records; and (iiiv) afford ensure that such records and accounts are included in the Association a reasonable opportunity annual audit referred to exchange views with DAWASA and the Borrower on the said plan. Section 2.04. Without limitation to its obligations under Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the Project: (a) replenish the Project Account up to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion of the Project, or whenever its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and in paragraph (b) ensure of this Section and that amounts deposited into the Project Account shall report of such audit contains a separate opinion by said auditors as to whether the statements of expenditure submitted during such fiscal year, together with the procedures and internal controls involved in their preparation, can be used exclusively relied upon to make payments to meet expenditures made or to be made in respect of support the reasonable cost of goods, works and services for the Project in addition to those financed from the proceeds of the Creditrelated withdrawals.

Execution of the Project. (a) DAWASA WAPDA declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit Loan Agreement, and, to this end, shall: (i) shall carry out the Project with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, waterecological, sewerage resettlement, engineering and resettlement power utility practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project; (ii) duly and punctually perform in accordance with the provisions of the Development Contract, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon the provisions of paragraph paragraph (a) of this Section and except as the Association Bank and DAWASA WAPDA shall otherwise agree, DAWASA WAPDA shall carry out the Project in accordance accor- dance with the Implementation Program set forth in Schedule 2 to this Agreement. Section 2.02. Except as the Association Bank shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Credit Loan shall be governed by the provisions of Schedule 1 to this Agreement. (a) DAWASA Section 2.03. WAPDA shall carry out or cause to be carried out, the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 9.07, 9.08 and 9.08 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of the Project Agreement and the Project. Section 2.04. WAPDA shall duly perform all its obligations under the Subsidiary Loan Agreement. Except as the Bank shall otherwise agree, WAPDA shall not take or concur in any action which would have the effect of amending, abrogating, assigning or waiving the Subsidiary Loan Agreement or any provision thereof. (a) WAPDA shall, at the request of the Bank, exchange views with the Bank with regard to progress of the Project, the performance of its obligations under this Agreement and under the Subsidiary Loan Agreement, and other matters relating to the purposes of the Loan. (b) For WAPDA shall promptly inform the purposes Bank of Section 9.06 of the General Conditions and without limitation thereto, DAWASA shall, in conjunction any condition which interferes or threatens to interfere with the Borrower: (i) prepare, on the basis of guidelines acceptable to the Association and furnish to the Association not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose among the Association, the Borrower and DAWASA, a plan for the future operation of the Project designed to ensure its sustainability; and (ii) afford the Association a reasonable opportunity to exchange views with DAWASA and the Borrower on the said plan. Section 2.04. Without limitation to its obligations under Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the Project: (a) replenish the Project Account up to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion progress of the Project, or whenever its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and (b) 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 accomplishment of the reasonable cost purposes of goodsLoan, works or the performance by WAPDA of its obligations under this Agreement and services for under the Project in addition to those financed from the proceeds of the CreditSubsidiary Loan Agreement.

Execution of the Project. (a) DAWASA The Borrower declares its commitment to the objectives objective of the Project as set forth in Schedule 2 to the Development Credit Agreement, and, to this end, shall: (i) shall carry out the Project Project, through MDS, with due diligence and efficiency and in conformity with appropriate economic, technical, administrative, financial, engineering, environmental, water, sewerage social and resettlement environmental practices, and shall provide, or provide and cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project;. (b) The Borrower shall establish and thereafter maintain in MDS, during the implementation of the Project, an organizational structure for Project implementation with functions and responsibilities set forth in the Operational Manual, at all times headed by the Executive Secretary of MDS as its Project coordinator, and assisted by staff in adequate numbers, all with qualifications and experience acceptable to the Bank. (c) The Borrower shall, through MDS, not later than December 31, 2005: (i) enter into an agreement or agreements (termo de cooperação, parceria or other legal form) with the Borrower’s agencies concerned with Indigenous Peoples and Quilombolas as needed for the Implementation of the IPDP; or (ii) duly and punctually perform in accordance with inform the provisions of the Development Contract, Lease Contract and the DAWASA Subloan Agreement all Bank that no such agreements are needed for its obligations therein set forth and implementation. (d) The Borrower shall through MDS: (i) exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract Financial Institution Agreement and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices.the IPDP Cooperation Agreement; and (bii) Without limitation upon the provisions of paragraph (a) of this Section and except as the Association and DAWASA Bank shall otherwise agree, DAWASA shall carry out the Project in accordance with the Implementation Program not assign, amend (except as set forth in Schedule 2 to Section 1.02 (i) of this Agreement), abrogate, suspend, waive, terminate or fail to enforce the Financial Institution Agreement or the IPDP Cooperation Agreement, or any provision thereof. Section 2.02. (a) Except as the Association Bank shall otherwise agree, procurement of the goods, works goods and consultants’ services required for Parts B, C, D and E of the Project and to be financed out of the proceeds of the Credit Loan, shall be governed by the provisions of Schedule 1 4 to this Agreement. (a) DAWASA shall carry out or cause to , as said provisions may be carried out, further elaborated in the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of this AgreementProcurement Plan. (b) For The Borrower shall update the purposes of Section 9.06 of the General Conditions and without limitation thereto, DAWASA shall, Procurement Plan in conjunction accordance with the Borrower: (i) prepare, on the basis of guidelines acceptable to the Association Bank, and furnish such update to the Association Bank not later than six (6) 12 months after the Closing Date or such later date as may be agreed for this purpose among of the Associationpreceding Procurement Plan, the Borrower and DAWASA, a plan for the future operation of the Project designed to ensure its sustainability; and (ii) afford the Association a reasonable opportunity to exchange views with DAWASA and the Borrower on the said planBank’s approval. Section 2.043.03. Without limitation to its obligations under Section 2.01 of this AgreementThe Borrower shall carry out the Project in accordance with an operational manual, DAWASA shall, for the purposes of making available the counterpart contribution satisfactory to the financing of the ProjectBank, said manual to include, inter alia: (a) replenish the procedures for the carrying out, monitoring and evaluation of the Project Account up (including the Performance Indicators) and the procurement and financial requirements thereof including the standard bidding documents to be used as per Schedule 4 to this Agreement; (b) the initial amount organizational structure for Project implementation; and (c) the criteria for identification, registration and selection of seven hundred fifty million Tanzanian Shillings BF Beneficiaries; the requirements to be fulfilled by BF Beneficiaries as conditions for the provision of BF Grants (Tshs 750,000,000which shall include those set forth in Schedule 6 to this Agreement); the mechanisms for verification of compliance with XX Xxxxx conditions; the detailed procedures for coordination and collaboration among the municipalities and other cooperating institutions, the Financial Institution, and other stakeholders in the carrying out of the Project. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevail. Section 3.04. The Borrower shall through MDS: (a) at the end of each Project Quarter until the completion maintain in respect of the Project, or whenever its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); andpolicies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with the Performance Indicators, the carrying out of the Project and the achievement of the objectives thereof; (b) ensure that amounts deposited into prepare under terms of reference satisfactory to the Bank, and furnish to the Bank, not later than six months after the Effective Date and semiannually thereafter during the period of Project implementation, a report integrating the results of the evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project Account shall be used exclusively during the period preceding the date of such report and setting out the measures recommended to make payments to meet expenditures made or to be made in respect ensure the efficient carrying out of the reasonable cost of goods, works Project and services for the Project in addition to those financed from the proceeds achievement of the Credit.objectives thereof during the period following such date; (c) (i) review, with the Bank, within no more than two months after such report’s preparation, the report referred to in paragraph (b) of this Section; and

Execution of the Project. (a) DAWASA The Borrower declares its commitment to the objectives objective of the Project as set forth in Schedule 2 to the Development Credit AgreementProject, and, to this end, shall: (i) carry out all parts of the Project (other than Part B.2 thereof) through CNA, with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage technical and resettlement environmental practices, the Environmental Management Plan and shall providethe Approved POAs; (ii) carry out Parts B.2 of the Project, or through SAGARPA, as part of the irrigated crop technology programs of Alianza Contigo, with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, technical and environmental practices and the Environmental Management Plan; and (iii) provide and cause to be provided, provided promptly as needed, the funds, facilities, services and other resources required for the Project. (b) The Borrower shall, through CNA, maintain during the implementation of the Project, a Project coordination system (PCS), with functions and responsibilities described in the Operational Manual. (c) The Borrower shall, through SHCP and CNA, enter into a contract with NAFIN (XXXXXXX Contract), satisfactory to the Bank, whereby: (i) NAFIN agrees to act as financial agent of the Borrower with regard to the Loan, meaning that, inter alia, NAFIN agrees to represent the Borrower vis-à-vis the Bank for purposes of submitting Loan withdrawal applications to the Bank in form and substance sufficient to justify disbursement by the Bank to the Borrower of Loan proceeds; (ii) duly and punctually perform in accordance with the provisions CNA agrees to carry out all Parts of the Development ContractProject (other than Part B.2 thereof), Lease Contract according to the terms of this Agreement; and (iii) the Borrower agrees that, through CNA (as executing agency) and SHCP, the DAWASA Subloan Agreement Borrower shall cooperate fully with NAFIN to ensure that NAFIN is able to comply with all its of NAFIN’s obligations therein set forth referred to in paragraph (c) (i) of this Section and in Sections 4.01 and 4.02 of this Agreement. (d) The Borrower shall exercise its rights thereunder and carry out its obligations under the XXXXXXX Contract in such a manner as to protect the interests of the Borrower Bank and the Association and Borrower to accomplish the purposes of the Credit; and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Association and DAWASA shall otherwise agree, DAWASA shall carry out the Project in accordance with the Implementation Program set forth in Schedule 2 to this Agreement. Section 2.02Loan. Except as the Association shall Bank may otherwise agree, procurement the Borrower shall not amend or fail to enforce any provision of the goods, works and consultants’ services required for XXXXXXX Contract. In case of any conflict between the Project and to be financed out of the proceeds of the Credit shall be governed by the provisions of Schedule 1 to this Agreement. (a) DAWASA shall carry out or cause to be carried out, the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of this Agreement. (b) For the purposes of Section 9.06 of the General Conditions and without limitation thereto, DAWASA shall, in conjunction with the Borrower: terms of: (i) prepare, on the basis of guidelines acceptable to the Association and furnish to the Association not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose among the Association, the Borrower and DAWASA, a plan for the future operation of the Project designed to ensure its sustainabilityXXXXXXX Contract; and (ii) afford the Association a reasonable opportunity to exchange views with DAWASA and the Borrower on the said plan. Section 2.04. Without limitation to its obligations under Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the Project: (a) replenish the Project Account up to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion of the Project, or whenever its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and (b) 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.

Execution of the Project. (a) DAWASA The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit this Agreement, and, to this end, shall: (i) shall carry out the Project through the Executing Agencies as described in the Annex to Schedule 2 to this Agreement, with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage financial and resettlement management practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) Without limitation upon the provisions of paragraph (a) of this Section, the Borrower shall establish and maintain in MEC, until the Closing Date, a project coordinating unit with functions and responsibilities satisfactory to the Bank, including, inter alia, the following: (i) coordinate the execution of all parts of the Project; (ii) duly approve the procurement of goods and punctually perform in accordance with the provisions selection of, and the terms of reference for, the consultants proposed by the Executing Agencies; (iii) review of all consultants’ reports and provision of feedback to the National Project Director, the Executing Agencies and the Bank on their content and on the soundness of the Development Contract, Lease Contract and consultants’ recommendations; (iv) prepare annual reports on the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect the interests progress of the Borrower and the Association and accomplish the purposes of the CreditProject; and (iiiv) cause make all necessary administrative arrangements for the Operator to carry out its obligations under timely procurement of goods and hiring of consultants required for the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (bc) The Borrower shall ensure that the Project Coordinating Unit is at all times headed by the Borrower’s Secretary of Economic Coordination as National Project Director, assisted by a full-time project coordinator with qualifications, experience and terms of reference satisfactory to the Bank, and by qualified staff in adequate numbers. (d) Without limitation upon the provisions of paragraph (a) of this Section and except as the Association Borrower and DAWASA the Bank shall otherwise agree, DAWASA the Borrower shall carry out the Project in accordance with the Implementation Project Execution Program. (a) The Borrower shall enter into contractual arrangements, satisfactory to the Bank, with an agent or agents acceptable to the Bank, for handling contracting of consultants, the procurement of goods and for arranging training activities under the Project. (b) The Borrower shall exercise its rights under the contractual arrangements referred to in paragraph (a) of this Section in such a manner as to protect the interests of the parties to this Agreement and to accomplish the purposes of the Loan and, except as the Bank shall otherwise agree, the Borrower shall not assign, amend, abrogate or waive such arrangements or any provision thereof. Section 3.03. The Borrower shall prepare and furnish to the Bank through each Executing Agency not later than September 1 of each year, for its review and agreement, an Annual Action Program containing the objectives, activities, institutional arrangements and anticipated results of the execution of each part of the Project in the immediately following fiscal year. (a) The Borrower shall: (i) carry out all studies included in the Project under terms of reference satisfactory to the Bank which, unless the Borrower and the Bank shall otherwise agree, shall include specific programs or plans of action to meet the objectives of the Project; (ii) promptly after the completion of each such study, furnish to the Bank copy of its findings and recommendations including such programs or plans of action; (iii) afford the Bank a reasonable opportunity to comment on such findings, recommendations and programs or plans of action; and (iv) where appropriate, and taking into account the Bank’s comments thereon, prepare programs or plans of action to carry out the recommendations of such studies. (b) The Borrower undertakes to carry out such programs and plans of action as required to meet the objectives of the Project as set forth in Schedule 2 to this Agreement. Section 2.02. Except as the Association shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Credit shall be governed by the provisions of Schedule 1 to this Agreement. (a) DAWASA The Borrower shall carry out or cause retain independent experts, with qualifications and experience satisfactory to be carried outthe Bank, to assist the obligations set forth Project Coordinating Unit in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 the review of the General Conditions (relating to insuranceterms of reference, use progress reports and findings and recommendations of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of this Agreementthe studies carried out under the Project. (b) For the purposes of Section 9.06 of the General Conditions and without limitation thereto, DAWASA The Borrower shall, in conjunction with through the Borrower: Project Coordinating Unit: (i) prepare, on the basis of guidelines acceptable to the Association and promptly furnish to the Association not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose among the Association, the Borrower and DAWASA, Bank a plan for the future operation copy of the Project designed to ensure its sustainabilityreports of such experts on each of such studies; and (ii) afford the Association a reasonable opportunity to exchange views with DAWASA and the Borrower on the said plan. Section 2.04. Without limitation to its obligations under Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the Project: (a) replenish the Project Account up to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion of the Project, or whenever its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and (b) 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.

Execution of the Project. (a) DAWASA declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit Agreement, and, to this end, shall: (i) Section 3.01. The Recipient shall carry out the Project with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage financial and resettlement banking practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project; (ii) duly and punctually perform in accordance with the provisions of the Development Contract, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Association and DAWASA shall otherwise agree, DAWASA shall carry out the Project in accordance with the Implementation Program set forth in Schedule 2 to this Agreement. Section 2.023.02. Except as the Association Administrator shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Credit Grant shall be governed by the provisions of Schedule 1 3 to this Agreement. (a) DAWASA The Recipient shall carry out maintain or cause to be carried out, the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, maintained records and reportsaccounts adequate to reflect in accordance with sound accounting practices the operations, maintenance resources and land acquisition, respectively) expenditures in respect of this Agreementthe Project of the departments or agencies of the Recipient responsible for carrying out the Project or any part thereof. (b) For the purposes of Section 9.06 of the General Conditions and without limitation thereto, DAWASA The Recipient shall, in conjunction with the Borrower: (i) preparehave the records and accounts referred to in paragraph (a) of this Section for each fiscal year audited, on the basis of guidelines in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Association and Administrator; (ii) furnish to the Association Administrator as soon as available, but in any case not later than six (6) months after the Closing Date or end of each such later date as may be agreed for this purpose among the Associationyear, the Borrower report of such audit by said auditors, of such scope and DAWASA, a plan for in such detail as the future operation of the Project designed to ensure its sustainabilityAdministrator shall have reasonably requested; and (iiiii) afford furnish to the Association a reasonable opportunity to exchange views with DAWASA Administrator such other information concerning said records and accounts and the Borrower audit thereof as the Administrator shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Account were made on the said plan.basis of statements of expenditure, the Recipient shall: Section 2.04. Without limitation (i) maintain or cause to its obligations under Section 2.01 of this Agreementbe maintained, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the Project:in accordance with paragraph (a) replenish of this Section, records and accounts reflecting such expenditures; (ii) retain, until at least one year after the Project Administrator has received the audit report for the fiscal year in which the last withdrawal from the Grant Account up was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Administrator’s representatives to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion of the Project, or whenever its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000)examine such records; and (biv) ensure that amounts deposited into such records and accounts are included in the Project Account shall annual audit referred to in paragraph (b) of this Section and that the report of such audit contains a separate opinion by said auditors as to whether the statements of expenditure submitted during such fiscal year, together with the procedures and internal controls involved in their preparation, can be used exclusively relied upon to make payments to meet expenditures made or to be made in respect of support the reasonable cost of goods, works and services for the Project in addition to those financed from the proceeds of the Creditrelated withdrawals.

Execution of the Project. (a) DAWASA The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit Agreement, this Agreement and, to this end, shall: (i) shall carry out the Project through MLGRUD, MPCNH, ZESA, the Eligible Local Authorities and the Building Societies as indicated in said Schedule, with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage engineering and resettlement urban development principles and practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project; (ii) duly and punctually perform in accordance with the provisions of the Development Contract, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon the provisions of paragraph (a) of this Section Section, the Borrower shall allocate not less than 60% of its annual budgetary provisions for housing projects to finance part of the costs of Part X.x of the Project. (c) Without limitation upon the provisions of paragraph (a) of this Section, and except as the Association Borrower and DAWASA the Bank shall otherwise agree, DAWASA the Borrower shall carry out the Project in accordance with the Implementation Program set forth in Schedule 2 5 to this Agreement. Section 2.023.02. Without any limitation or restriction upon any of its obligations under the Loan Agreement, the Borrower shall: (a) relend the proceeds of the Loan allocated to Parts A and B of the Project, excluding those allocated for electricity facilities, to Eligible Local Authorities under Subsidiary Loan Agreements to be entered into between the Borrower and such entities under terms and conditions which shall have been approved by the Bank, including those set forth in Parts B and C of Schedule 5 to this Agreement; (b) relend the proceeds of the Loan allocated to electricity facilities under Parts A and B of the Project to ZESA under a Subsidiary Loan Agreement to be entered into between the Borrower and ZESA under terms and conditions which shall have been approved by the Bank, including those set forth in Part D of Schedule 5 to this Agreement; (c) relend the proceeds of the Loan allocated for the acquisition of computer equipment to the Building Societies under Subsidiary Loan Agreements to be entered into between the Borrower and each of such entities under terms and conditions which shall have been approved by the Bank, including those set forth in Part E of Schedule 5 of this Agreement; and (d) exercise its rights under each of the Subsidiary Loan Agreements in such manner as to protect the interests of the Borrower and the Bank and to accomplish the purposes of the Loan and, except as the Bank shall otherwise agree, the Borrower shall not assign, amend, abrogate or waive any such Subsidiary Loan Agreement or any provision thereof. Section 3.03. Except as the Association Bank shall otherwise agree, procurement of the goods, goods and works and consultants’ services required for the Project and to be financed out of the proceeds of the Credit Loan shall be governed by the provisions of Schedule 1 4 to this Agreement. Section 3.04. The Borrower shall cause each Eligible Local Authority to: (a) DAWASA establish a revolving account in an approved financial institution into which the proceeds of sales of plots prepared under the Project shall carry out or cause be deposited, such account to be carried out, maintained on terms and conditions satisfactory to the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 Borrower and 9.08 of the General Conditions (relating Bank and to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of this Agreement.be used exclusively to finance housing infrastructure development; (b) For prepare and furnish to the purposes Borrower and the Bank, by not later than November 30, 1990, a FPP in form and substance satisfactory to the Borrower and the Bank; and (c) carry out its operations and affairs in accordance with sound financial principles and practices and meet financial targets which are satisfactory to the Borrower and the Bank. Section 3.05. Notwithstanding the generality of Section 9.06 of the General Conditions and without limitation theretoConditions, DAWASA shall, in conjunction with the Borrower: (i) prepare, on the basis of guidelines acceptable Borrower shall cause each Eligible Local Authority to the Association and furnish to the Association Bank for its review and comment prior to initiating bidding or procurement procedures, the final standards and designs for community facilities to be constructed under Part B.2 of the Project in each such Eligible Local Authority. Section 3.06. The Borrower declares its commitment to the policy of self-managed progressive housing construction and to that end, except as the Bank shall otherwise agree, the Borrower shall cause each Eligible Local Authority to institute the standards, to apply the eligibility criteria and to establish procedures set forth in Part C of Schedule 5 to this Agreement in the allocation of plots to Allottees under the Project. Section 3.07. The Borrower shall carry out, not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose among the Association, the Borrower and DAWASASeptember 30 each year, a plan for review of the future operation performance of the Building Societies under Part C.2 of the Project designed with a view to ensure its sustainability; and (ii) afford ensuring the Association a reasonable opportunity competitiveness of the Building Societies in mobilizing savings. The results of such review and any action proposed to exchange views with DAWASA and be taken by the Borrower on the said plan. Section 2.04. Without limitation to its obligations under Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution shall be communicated to the financing of the Project: (a) replenish the Project Account up to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion of the Project, or whenever Bank for its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and (b) 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 Creditcomments.

Execution of the Project. (a) DAWASA The Recipient declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit this Agreement, and, to this end, shall: (i) shall cause FUNAI to carry out the Project under the coordination of MMA; all with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmentalresettlement, watercompensation, sewerage managerial, personnel and resettlement practicesfinancial practices with due regard to ecological and environmental factors, and in accordance with the Annual Operating Plans, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project. (b) The Recipient shall, through MMA, enter into an agreement with FUNAI, satisfactory to the Trustee (the Implementation Agreement), such agreement to provide, inter alia, that FUNAI shall: (i) maintain the SPCU with responsibilities, structure and functions, all satisfactory to the Trustee, and with management and staff in adequate numbers and with adequate qualifications, for the purposes of, inter alia, providing overall supervision of the Project and technical advice to the TC; (ii) duly maintain the TC with responsibilities, structure and punctually perform functions, all satisfactory to the Trustee, and with management and staff in adequate numbers and with adequate qualifications, for the purposes of the carrying out of the Project; and (iii) establish and thereafter maintain a consultative commission for the Project (the PCC), with responsibilities, structure and functions, all satisfactory to the Trustee, and with members in adequate numbers and with adequate qualifications, for the purpose of advising FUNAI in, and assessing, the Project implementation. (a) Not later than November 30 of each year of Project implementation, the Recipient shall furnish to the Trustee: (i) an annual plan (the Annual Operating Plan), satisfactory to the Trustee, describing, inter alia, the Project activities to be carried out during the next calendar year and including information based on the monitoring indicators set forth in the letter from the Recipient to the Trustee dated February 23, 1995; and (ii) evidence, satisfactory to the Trustee, that the Recipient shall have allocated, in its budget proposal for the next calendar year, the amounts necessary for the carrying out of the Project during such year; (b) whenever an Annual Operating Plan provides for demarcation activities under the Project, within indigenous areas where resettlement of non-Indian populations may be required, the Recipient shall include in the Annual Operating Plan a study, under terms of reference satisfactory to the Trustee, to confirm the need for such resettlement and, if such need is confirmed, to provide a preliminary resettlement plan which shall include the costs and the potential financial sources related to such resettlement; and (c) whenever an Annual Operating Plan provides for demarcation activities under the Project within indigenous areas where: (i) resettlement of non-Indian Populations is required as confirmed by the study referred to in paragraph (b) above; or (ii) compensation of non-Indian populations is required; the Recipient shall, before beginning the demarcation activities under Part A of the Project for the relevant area, furnish to the Trustee, and thereafter carry out in a manner satisfactory to the Trustee, a time-bound specific resettlement and/or compensation plan, as the case may be, satisfactory to the Trustee (the Resettlement and/or Compensation Plan), for the non-Indian populations in the relevant area, such plan to be based on the Sectoral Resettlement and Compensation Principles, and, whenever applicable, on the study referred to in paragraph (b) above related to such area, and to include evidence, satisfactory to the Trustee, that all necessary inter-institutional arrangements, satisfactory to the Trustee, to implement such plan shall have been made. Section 3.03. Without limitation to Section 9.07 of the General Conditions, the Recipient shall, not later than February 28 and August 31 of each year during the Project implementation, furnish to the Trustee semi-annual reports on the progress in the implementation of the Project during the previous six months, of such scope and in such detail as the Trustee shall reasonably request. Section 3.04. Without limitation to Section 3.01 of this Agreement, the Recipient shall carry out Part B of the Project in accordance with the provisions letter from the Recipient to the Trustee dated February 23, 1995. Section 3.05. The Recipient shall, not later than June 30, 1995, furnish to the Trustee terms of reference, satisfactory to the Trustee, for the carrying out of the Development Contractlegal and policy studies under Part C (c) (iii) of the Project. Section 3.06. Without limitation to Section 9.01 of the General Conditions, Lease Contract the Recipient, through MMA, shall: (a) in the month of September of each year of Project implementation, hold annual reviews jointly with the Trustee and FUNAI, such reviews to be based on the reports referred to in Section 3.03 of this Agreement, and to focus, inter alia, on the overall implementation of the Project; and (b) take or cause to be taken all such action which shall have been agreed upon by the Recipient and the DAWASA Subloan Agreement all Trustee during the reviews referred to in paragraph (a) above, as necessary for the efficient execution of the Project or the achievement of its obligations therein set forth objectives, such action to be taken in the manner and within the timetable agreed upon during such reviews. Section 3.07. Without limitation to Sections 9.07 (a) (iii) and (c), the Recipient, through MMA, shall: (a) in the month of September 1997 and in the sixth month after the completion of the Project, furnish to the Trustee an evaluation report prepared by an independent consultant with qualifications and experience satisfactory to the Trustee (the mid-term report and the final report, respectively) assessing the overall implementation of the Project, such reports to be based on the terms of reference referred to in paragraph (b) and on the baseline study referred to in paragraph (c) of this Section; (b) not later than July 15, 1995, furnish to the Trustee terms of reference, satisfactory to Trustee, for the carrying out of the mid-term report, the final report and the baseline study referred to in paragraph (c) below; and (c) not later than December 31, 1995, furnish to the Trustee a baseline study on the Project prepared in accordance with the terms of reference referred to in paragraph (b) above. Section 3.08. The Recipient shall exercise its rights thereunder and comply with its obligations, under the Implementation Agreement in such a manner as to protect the interests of the Borrower Trustee and the Association and to accomplish the purposes of the Credit; RFT Grant, and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Association and DAWASA Trustee shall otherwise agree, DAWASA the Recipient shall carry out the Project in accordance with not assign, amend, abrogate, waive or fail to enforce the Implementation Program set forth in Schedule 2 to this Agreement, or any provision thereof. Section 2.023.09. Except as the Association Trustee shall otherwise agree, procurement of the goods, works goods and consultants’ services required for the Project and to be financed out of the proceeds of the Credit RFT Grant shall be governed by the provisions of Schedule 1 3 to this Agreement. (a) DAWASA shall carry out or cause to be carried out, the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of this Agreement. (b) For the purposes of Section 9.06 of the General Conditions and without limitation thereto, DAWASA shall, in conjunction with the Borrower: (i) prepare, on the basis of guidelines acceptable to the Association and furnish to the Association not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose among the Association, the Borrower and DAWASA, a plan for the future operation of the Project designed to ensure its sustainability; and (ii) afford the Association a reasonable opportunity to exchange views with DAWASA and the Borrower on the said plan. Section 2.04. Without limitation to its obligations under Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the Project: (a) replenish the Project Account up to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion of the Project, or whenever its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and (b) 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.

Execution of the Project. (a) DAWASA The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit Agreement, and, to this end, shallshall carry out: (i) carry out Parts A, B, C.2 and D of the Project through SEDUC; and (ii) Part C.1 of the Project through SARE and XXXXXX, all with due diligence and efficiency and in conformity with appropriate educational, economic, technical, administrative, financial, engineering, environmental, water, sewerage environmental and resettlement social practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project;. (b) The Borrower shall maintain, during the implementation of the Project, the Project Coordination Unit and a Special Bidding Committee with functions and responsibilities satisfactory to the Bank, at all times headed by a Project coordinator and assisted by staff in adequate numbers, all with qualifications and experience acceptable to the Bank. (c) The Borrower shall, through SEDUC, prior to submitting the Loan withdrawal application for the respective PME School Subproject, enter into an agreement with each School Subproject Implementation Entity, under terms and conditions satisfactory to the Bank, substantially in accordance with the terms of the Model PME School Subproject Implementation Agreement, setting forth, inter alia: (i) the terms and conditions for the financing of the PME School Subprojects; and (ii) duly and punctually perform the obligation of the School Subproject Implementation Entity to carry out the PME School Subproject in accordance with the provisions of the Development ContractOperational Manual, Lease Contract the PDE Guidelines and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; andPME Guidelines. (iiid) cause The Borrower shall, through SEDUC, prior to submitting the Operator to carry out its obligations Loan withdrawal application for related expenditures under Part B.2 of the Project, Lease Contract and DAWASA Subloan Agreement enter into an agreement with due diligence and efficiency and each municipality with jurisdiction over the schools participating in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon the provisions Part B.2 of paragraph (a) of this Section and except as the Association and DAWASA shall otherwise agree, DAWASA shall carry out the Project and those serving Quilombola students, under terms and conditions satisfactory to the Bank, substantially in accordance with the Implementation Program set forth in Schedule 2 to this Agreement. Section 2.02. Except as the Association shall otherwise agree, procurement terms of the goodsModel Municipality Cooperation Agreement, works and consultants’ services required for the Project and to be financed out of the proceeds of the Credit shall be governed by the provisions of Schedule 1 to this Agreement. (a) DAWASA shall carry out or cause to be carried outsetting forth, inter alia, the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of this Agreement. (b) For the purposes of Section 9.06 of the General Conditions and without limitation thereto, DAWASA shall, in conjunction with the Borrower: municipality’s obligation: (i) prepare, on to propose the basis of guidelines acceptable to Municipal Schools that could participate in the Association and furnish to the Association not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose among the Association, the Borrower and DAWASA, a plan for the future operation of the Project designed to ensure its sustainabilityProject; and (ii) afford the Association a reasonable opportunity to exchange views with DAWASA and the Borrower on the said plan. Section 2.04. Without limitation to its obligations under Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the Project: (a) replenish the Project Account up to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion of the Project, or whenever its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and (b) 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.

Execution of the Project. (a) DAWASA Section 3.01. The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit AgreementProject, and, to this end, shall: (ia) cause BANSEFI to carry out Parts A, C.1 and D.1 of the Project with due diligence and efficiency and in conformity with appropriate administrative, financial, engineeringand technical practices; (b) carry out Parts B, environmentalC.2 and D.2 of the Project through SAGARPA, wateraccording to the terms, sewerage inter alia, of Part B of Schedule 6 to this Agreement and resettlement practiceswith due diligence and efficiency and in conformity with appropriate administrative, financial, and shall technical practices; and (c) provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project. Section 3.02. (a) The Borrower, through SHCP, and SAGARPA as co-executing agency, shall enter into a contract (Contrato xx Xxxxxxx) with BANSEFI, satisfactory to the Bank, whereby: (i) BANSEFI agrees to act as financial agent of the Borrower with regard to the Loan and entity responsible for the implementation of Parts A, C.1 and D.1 of the Project, meaning that, inter alia, BANSEFI agrees to: (A) represent the Borrower vis-à-vis the Bank for purposes of submitting Loan withdrawal applications to the Bank in form and substance sufficient to justify disbursement by the Bank to the Borrower of Loan proceeds; and (B) carry out Parts A, C.1 and D.1 of the Project according to the terms of this Agreement (particularly, but not limited to, the terms of Article IV of, Schedules 4 and 5 to, and Part A of Schedule 6 to, this Agreement); (ii) duly SAGARPA agrees to carry out Parts B, C.2 and punctually perform in accordance with the provisions D.2 of the Development Contract, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; andProject; (iii) cause the Operator Borrower agrees that, through SHCP and SAGARPA as co- executing agency, the Borrower shall cooperate fully with BANSEFI to carry out its ensure that BANSEFI is able to comply with all of BANSEFI’s obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and referred to in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon the provisions of paragraph (a) (i) (A) of this Section and except as the Association and DAWASA shall otherwise agree, DAWASA shall carry out the Project in accordance with the Implementation Program set forth in Schedule 2 to this Agreement. Section 2.02. Except as the Association shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Credit shall be governed by the provisions of Schedule 1 to this Agreement. (a) DAWASA shall carry out or cause to be carried out, the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 4.01 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect 4.02 of this AgreementAgreement as to consolidation of information provided by SAGARPA. (b) For the purposes of Section 9.06 of the General Conditions and without limitation thereto, DAWASA shall, in conjunction with the Borrower: (i) prepare, on the basis of guidelines acceptable to the Association and furnish to the Association not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose among the Association, the Borrower and DAWASA, a plan for the future operation of the Project designed to ensure its sustainability; and (ii) afford the Association a reasonable opportunity to exchange views with DAWASA and the Borrower on the said plan. Section 2.04. Without limitation to its obligations under Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the Project: (a) replenish the Project Account up to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion of the Project, or whenever its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and (b) 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.

Execution of the Project. (a) DAWASA The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit Agreement, this Agreement and, to this end, shallin accordance with the Vocational and Technical Training Strategy: (i) shall carry out Parts X.x through B.6, C and D of the Project with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage financial and resettlement practices, engineering practices and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for such Parts of the Project; (ii) duly and punctually perform in accordance with the provisions of the Development Contract, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; and (iii) cause the Operator CNFTP to carry out its obligations under Part A of the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financialfinancial and educational practices and in accordance with the CNFTP Implementation Agreement to be entered into by the Borrower and CNFTP, engineeringwhose terms and conditions shall have been approved by the Association and which shall include the Xxxxxx de Procedure of CNFTP specifying eligibility criteria and legal procurement and financial arrangements to be made in respect of the carrying out of Training Sub-Projects and adequate provisions as shall be consistent with paragraphs 7 to 9 of Schedule 4 to this Agreement; (iii) shall cause INPF to carry out Part B.7 of the Project with due diligence and efficiency and in conformity with appropriate administrative, environmentalfinancial and educational practices and in accordance with the INPF Implementation Agreement to be entered into by the Borrower and INPF, waterwhose terms and conditions shall have been approved by the Association; (iv) shall cause ENFAR to carry out Part E of the Project with due diligence and efficiency and in conformity with appropriate administrative, sewerage financial and resettlement practiceseducational practices and in accordance with the ENFAR Implementation Agreement to be entered into by the Borrower and ENFAR, whose terms and conditions shall have been approved by the Association; (v) shall take or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable CNFTP, INPF and ENFAR to carry out the respective Parts of the Project and shall not take or permit to be taken any action which would prevent or interfere with the carrying out of the respective Parts of the Project by CNFTP, INPF or ENFAR; and (vi) without limitation upon the provisions of this Section, the Borrower shall for the purposes of making available its contribution to the Project: (A) open and maintain in the name of the Project a separate account, make an initial contribution of the equivalent of $150,000 into such account and replenish such account at least on a quarterly basis or whenever its balance shall be less than the equivalent of $30,000 up to the amount of the initial contribution; and (B) open and maintain two bank accounts (advance accounts), each in the name of BPE and in the name of CNFTP, in a commercial bank and make an initial deposit of the equivalent of $75,000 and $25,000, respectively, into such accounts; such accounts to be replenished out of the account referred to under sub-paragraph (vi) (A) above on the basis of adequate justifications for expenditures made. (b) Without limitation upon the provisions of paragraph (a) of this Section and and, except as the Borrower and the Association and DAWASA shall otherwise agree, DAWASA the Borrower shall carry out take all measures regarding the execution of the Project in accordance as shall be consistent with the Implementation Program set forth in Schedule 2 4 to this Agreement. (c) The Borrower shall exercise its rights under the Implementation Agreements in such a manner as to protect the interests of the Borrower and the Association and to accomplish the purposes of the Credit and, except as the Association shall otherwise agree, the Borrower shall not assign, amend, abrogate or waive the Implementation Agreements or any provision thereof. Section 2.023.02. Except as the Association shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Credit shall be governed by the provisions of Schedule 1 3 to this Agreement. (a) DAWASA Section 3.03. The Borrower shall carry out or cause to be carried out, the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 take all necessary legal and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of this Agreement. (b) For the purposes of Section 9.06 of the General Conditions and without limitation thereto, DAWASA shall, in conjunction with the Borrower: (i) prepare, on the basis of guidelines acceptable to the Association and furnish to the Association not later than six (6) months after the Closing Date or such later date as may be agreed administrative action so that its ministry responsible for this purpose among the Association, the Borrower and DAWASA, a plan for the future operation of the Project designed to ensure its sustainability; and (ii) afford the Association a reasonable opportunity to exchange views with DAWASA and the Borrower on the said plan. Section 2.04. Without limitation to its obligations under Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the Projectvocational training: (a) replenish the Project Account up to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion of the Projectby December 31, or whenever its balance 1992, shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000)responsible for public sector secondary technical schools with respect to investment expenditures, the contents of courses taught, the numbers of students enrolled and the opening and closing of said schools; and (b) ensure that amounts deposited into the Project Account by July 31, 1993, 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 responsible for the Project in addition full management of public sector technical education and vocational training schools and shall include DET. The Borrower shall thereafter entrust the technical and administrative tutelle for technical education and vocational training to those financed from the proceeds of the Credita single ministry.

Execution of the Project. (a) DAWASA Sri Lanka Telecom declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit Agreement, and, to this end, shall: (i) shall carry out the Project with due diligence and efficiency and in conformity with appropriate appropri- ate administrative, financial, engineering, environmental, water, sewerage financial and resettlement engineering practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project; (ii) duly and punctually perform in accordance with the provisions of the Development Contract, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Association Associa- tion and DAWASA Sri Lanka Telecom shall otherwise agree, DAWASA Sri Lanka Telecom shall carry out the Project in accordance with the Implementation Program set forth in the Schedule 2 to this Agreement. Section 2.02. Except as the Association shall otherwise agree, procurement of the goods, works and consultants’ services required for Part B of the Project and to be financed out of the proceeds of the Credit shall be governed by the provisions of Schedule 1 3 to this the Development Credit Agreement. (a) DAWASA Section 2.03. Sri Lanka Telecom shall carry out or cause to be carried out, the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedulessched- ules, records and reports, maintenance and land acquisitionacquisi- tion, respectively) in respect of the Project Agreement. Section 2.04. Sri Lanka Telecom shall duly perform all its obligations under the Subsidiary Loan Agreement. Except as the Association shall otherwise agree, Sri Lanka Telecom shall not take or concur in any action which would have the effect of amending, abrogating, assigning or waiving the Subsidiary Loan Agreement or any provision thereof. (a) Sri Lanka Telecom shall, at the request of the Association, exchange views with the Association with regard to the progress of the Project, the performance of its obligations under this Agreement and under the Subsidiary Loan Agreement, and other matters relating to the purposes of the Credit. (b) For Sri Lanka Telecom shall promptly inform the purposes Association of Section 9.06 of the General Conditions and without limitation thereto, DAWASA shall, in conjunction any condition which interferes or threat- ens to interfere with the Borrower: (i) prepare, on the basis of guidelines acceptable to the Association and furnish to the Association not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose among the Association, the Borrower and DAWASA, a plan for the future operation of the Project designed to ensure its sustainability; and (ii) afford the Association a reasonable opportunity to exchange views with DAWASA and the Borrower on the said plan. Section 2.04. Without limitation to its obligations under Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the Project: (a) replenish the Project Account up to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion progress of the Project, or whenever its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and (b) 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 accomplishment of the reasonable cost of goods, works and services for the Project in addition to those financed from the proceeds purposes of the Credit, or the performance by Sri Lanka Telecom of its obligations under this Agreement and under the Subsidiary Loan Agreement.

Execution of the Project. (a) DAWASA The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit this Agreement, and, to this end, without any limitation or restriction upon any of its other obligations under the Loan Agreement, shall: : (i) carry out Part B of the Project and conduct its operations and affairs in accordance with due diligence sound financial standards and efficiency practices, with qualified management and personnel, and in conformity accordance with appropriate administrative, financial, engineering, environmental, water, sewerage the Charter and resettlement practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project; Statement of Policy; (ii) duly and punctually cause RBI to perform in accordance with the provisions of the Development Contract, Lease Contract and the DAWASA Subloan Project Agreement all its the obligations of RBI therein set forth forth; (iii) take or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable RBI to perform such obligations; and (iv) not take or permit to be taken any action which would prevent or interfere with such performance. (b) The Borrower shall on-lend the proceeds of the Loan to each PB, under a Modernization and Institutional Development Subsidiary Loan Agreement with each PB, on terms and conditions satisfactory to the Bank, including maturity of up to 10 years (including 3 years’ grace) at a market-based variable lending rate. (c) The Borrower shall exercise its rights thereunder under each Modernization and Institutional Development Subsidiary Loan Agreement in such manner as to protect the interests of the Borrower and the Association Bank and to accomplish the purposes of the Credit; Loan, and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Association and DAWASA Bank shall otherwise agree, DAWASA the Borrower shall carry out not assign, amend, abrogate or waive any Modernization and Institutional Development Subsidiary Loan Agreement or any provision thereof. (d) Without limitation or restriction upon any of its other obligations under this Agreement, the Project in accordance with the Implementation Program Borrower shall perform all its obligations set forth in Schedule 2 to this each Modernization and Institutional Development Subsidiary Loan Agreement. Section 2.023.02. Except as the Association Bank shall otherwise agree, procurement of the goods, works and consultants’ ' services required for the Project and to be financed out of the proceeds of the Credit Loan shall be governed by the provisions of Schedule 1 to this the Project Agreement. (a) DAWASA Section 3.03. The Borrower shall carry out or cause to be carried out, the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 a mid-term review of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of this Agreement. (b) For the purposes of Section 9.06 of the General Conditions and without limitation thereto, DAWASA shall, in conjunction with the Borrower: (i) prepare, on the basis of guidelines acceptable to the Association and furnish to the Association not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose among the Association, the Borrower and DAWASA, a plan for the future operation Part B of the Project designed by September 30, 1997, with scope and content satisfactory to ensure its sustainability; and (ii) afford the Association a reasonable opportunity Bank, shall discuss the results of such review with the Guarantor, the Bank and RBI and thereafter take necessary action to exchange views with DAWASA implement the findings and the Borrower on the said planrecommendations of such review. Section 2.043.04. Without limitation to its obligations under Section 2.01 of this AgreementThe Borrower shall enter into and carry out a Pass Through Agreement (Modernization and Institutional Development Loan) with RBI, DAWASA shall, for the purposes of making available the counterpart contribution on terms and conditions satisfactory to the financing Bank, setting out the Borrower's and IDBI’s respective responsibilities with regard to on-lending of the Project: (a) replenish the Project Account up to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion of the Project, or whenever its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and (b) 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 CreditModernization and Institutional Development Loan to PBs.

Execution of the Project. (a) DAWASA The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit this Agreement, and, to this end, shall: (i) shall carry out the Project through MAAR with due diligence and efficiency and in conformity with appropriate administrative, financialagricultural, engineering, environmental, water, sewerage administrative and resettlement xxxxx- cial practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project; (ii) duly and punctually perform in accordance with the provisions of the Development Contract, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Borrower and the Association and DAWASA shall otherwise agree, DAWASA the Borrower shall carry out the Project in accordance with the Implementation Program set forth in Schedule 2 4 to this Agreement. Section 2.023.02. The Borrower shall: (a) maintain the PMU with qualified and experienced staff in adequate numbers and with terms of reference satisfactory to the Association; and (b) establish and thereafter maintain within the PMU an IMU with qualified and experienced staff in adequate numbers and with terms of reference satisfactory to the Association, including responsibility for monitoring abstraction and utilization of groundwater and planning and coordinating the routine preventative maintenance and remedial repairs of irrigation structures and pumps in collaboration with the MRS. Section 3.03. The Borrower shall ensure the availability in each year of fertilizer, chemicals and seeds for all farmers in the Project Area in the quantities and on the basis of a timetable agreed with the Association to meet production targets. Section 3.04. The Borrower shall, by November 15 of each year: (a) furnish through the PMU to the Association for review and comment the work program, draft budget and financing plan for the Project for the following calendar year; and (b) review with the Association the crop protection chemi- cals proposed to be purchased by the Borrower during the following calendar year for the Project and thereafter purchase only the chemicals agreed with the Association. Section 3.05. The Borrower shall take all measures necessary to ensure that PCEP provide adequate power supply to operate the pumps on the tubewells constructed under WHAP II and the Project. (a) Except as the Association shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Credit shall be governed by the provisions of Schedule 1 3 to this Agreement. (a) DAWASA shall carry out or cause to be carried out, the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of this Agreement. (b) For The engineering consultants required to assist in the purposes design and supervision of Section 9.06 civil works, whose employment shall not be governed by the provisions of the General Conditions and without limitation thereto, DAWASA shall, in conjunction with the Borrower: (i) prepare, on the basis of guidelines acceptable to the Association and furnish to the Association not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose among the Association, the Borrower and DAWASA, a plan for the future operation of the Project designed to ensure its sustainability; and (ii) afford the Association a reasonable opportunity to exchange views with DAWASA and the Borrower on the said plan. Section 2.04. Without limitation to its obligations under Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the Project: paragraph (a) replenish the Project Account up above, shall have qualifications and experience satisfactory to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion of the Project, or whenever its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and (b) 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 CreditAssociation.

Execution of the Project. (a) DAWASA The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit Agreement, and, to this end, shall: (i) shall carry out the Project Project, through MOH (with the assistance of the Eligible Municipalities, in respect of Part A of the Project, as well as with the assistance of the Research Entity with regard to Part C.4 of the Project), with due diligence and efficiency and in conformity with appropriate health, economic, technical, administrative, financial, engineering, environmental, water, sewerage and resettlement environmental practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project; (ii) duly and punctually perform in accordance with the provisions of the Development Contract, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon The Borrower shall operate and maintain, during the provisions implementation of paragraph the Project, a Project coordination unit (aPCU) of this Section with functions and except as responsibilities satisfactory to the Association Bank, at all times headed by a Project coordinator and DAWASA shall otherwise agreeassisted by staff in adequate numbers, DAWASA shall carry out all with qualifications and experience acceptable to the Project Bank. (c) The Borrower shall, through MOH, enter into an agreement with each Eligible Municipality under terms and conditions satisfactory to the Bank, substantially in accordance with the terms of the Model Conversion Subproject Implementation Program set forth Agreement, setting forth, inter alia, in Schedule 2 respect of each Conversion Subproject: The Eligible Municipality’s obligation: (A) to this Agreement.carry out the Conversion Subproject and to meet the performance benchmarks related thereto; Section 2.02. Except as the Association shall otherwise agree, procurement of (B) to procure the goods, works and consultants’ services required in accordance with: (I) the requirements of this Agreement; and (II) the contracting procedures and schedule specified in the procurement plan for all goods, works and services, including all the ICB Goods and QCBS Consultants (which plan shall form part of the Conversion Subproject Implementation Agreement); (C) to keep records and accounts for the Project and expenditures financed under the Conversion Subproject; (D) to be financed out of utilize the proceeds of the Credit shall be governed by Conversion Subproject Transfers and provide information to MOH on the provisions of Schedule 1 to this Agreement. (a) DAWASA shall carry out or cause to be carried out, use thereof in accordance with the obligations procedures set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of this Agreement. (b) For the purposes of Section 9.06 of the General Conditions and without limitation thereto, DAWASA shall, in conjunction with the Borrower: (i) prepare, on the basis of guidelines acceptable to the Association and furnish to the Association not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose among the Association, the Borrower and DAWASA, a plan for the future operation of the Project designed to ensure its sustainabilityOperational Manual; and (iiE) afford to enable the Association a reasonable opportunity Bank to exchange views with DAWASA review the Eligible Municipality’s accounts and other information as the Borrower on the said plan. Section 2.04. Without limitation to its obligations under Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the Project: (a) replenish the Project Account up to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion of the Project, or whenever its balance Bank shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and (b) ensure that amounts deposited into the Project Account shall be used exclusively to make payments to meet expenditures made or to be made reasonably request in respect of the reasonable cost of goodsConversion Subproject, works the Basic Health Care Program and services for the Project in addition to those financed from the proceeds of the Credit.Family Health Program;

Execution of the Project. (a) DAWASA declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit Agreement, and, to this end, shall: (i) The Recipient shall carry out the Project with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage financial and resettlement health practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project; (ii) duly and punctually perform in accordance with the provisions of the Development Contract, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Association Recipient and DAWASA the Administrator shall otherwise agree, DAWASA the Recipient shall carry out the Project in accordance with the Implementation Program set forth in Schedule 2 3 to this Agreement. Section 2.023.02. Except as the Association Administrator shall otherwise agree, procurement of the goods, works goods and consultants’ services required for the Project and to be financed out of the proceeds of the Credit Grant shall be governed by the provisions of Schedule 1 4 to this Agreement. (a) DAWASA The Recipient shall carry out maintain or cause to be carried out, the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, maintained records and reportsaccounts adequate to reflect in accordance with sound accounting practices the operations, maintenance resources and land acquisition, respectively) expenditures in respect of this Agreementthe Project of the departments or agencies of the Recipient responsible for carrying out the Project or any part thereof. (b) For the purposes of Section 9.06 of the General Conditions and without limitation thereto, DAWASA The Recipient shall, in conjunction with the Borrower: (i) preparehave the records and accounts referred to in paragraph (a) of this Section for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Administrator; (ii) furnish to the Administrator as soon as available, but in any case not later than four months after the end of each such year, the report of such audit by said auditors, of such scope and in such detail as the Administrator shall have reasonably requested; and (iii) furnish to the Administrator such other information concerning said records and accounts and the audit thereof as the Administrator shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Account were made on the basis of guidelines acceptable statements of expenditure, the Recipient shall: (i) maintain or cause to the Association be maintained, in accordance with paragraph (a) of this Section, records and furnish to the Association not later than six accounts reflecting such expenditures; (6ii) months retain, until at least one year after the Closing Date or such later date as may be agreed for this purpose among Administrator has received the Association, the Borrower and DAWASA, a plan audit report for the future operation of fiscal year in which the Project designed last withdrawal from the Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Administrator’s representatives to ensure its sustainabilityexamine such records; and (iiiv) afford ensure that such records and accounts are included in the Association a reasonable opportunity annual audit referred to exchange views with DAWASA and the Borrower on the said plan. Section 2.04. Without limitation to its obligations under Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the Project: (a) replenish the Project Account up to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion of the Project, or whenever its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and in paragraph (b) ensure of this Section and that amounts deposited into the Project Account shall report of such audit contains a separate opinion by said auditors as to whether the statements of expenditure submitted during such fiscal year, together with the pro- cedures and internal controls involved in their preparation, can be used exclusively relied upon to make payments to meet expenditures made or to be made in respect of support the reasonable cost of goods, works and services for the Project in addition to those financed from the proceeds of the Creditrelated withdrawals.

Execution of the Project. (a) DAWASA The Borrower declares its commitment to the objectives objective of the Project as set forth in Schedule 2 to the Development Credit AgreementProject, and, to this end, shall: (i) carry out all parts of the Project (other than Part B.2 thereof) through CNA, with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage technical and resettlement environmental practices, the Environmental Management Plan and shall providethe Approved POAs; (ii) carry out Parts B.2 of the Project, or through SAGARPA, as part of the irrigated crop technology programs of Alianza Contigo, with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, technical and environmental practices and the Environmental Management Plan; and (iii) provide and cause to be provided, provided promptly as needed, the funds, facilities, services and other resources required for the Project. (b) The Borrower shall, through CNA, maintain during the implementation of the Project, a Project coordination system (PCS), with functions and responsibilities described in the Operational Manual. (c) The Borrower shall, through SHCP and CNA, enter into a contract with NAFIN (XXXXXXX Contract), satisfactory to the Bank, whereby: (i) NAFIN agrees to act as financial agent of the Borrower with regard to the Loan, meaning that, inter alia, NAFIN agrees to represent the Borrower vis-à-vis the Bank for purposes of submitting Loan withdrawal applications to the Bank in form and substance sufficient to justify disbursement by the Bank to the Borrower of Loan proceeds; (ii) duly CNA agrees to carry out all Parts of the Project (other than Part B.2 thereof), according to the terms of this Agreement; and (iii) the Borrower agrees that, through CNA (as executing agency) and punctually perform SHCP, the Borrower shall cooperate fully with NAFIN to ensure that NAFIN is able to comply with all of NAFIN’s obligations referred to in paragraph (c) (i) of this Section and in Sections 4.01 and 4.02 of this Agreement. (d) The Borrower shall exercise its rights and carry out its obligations under the XXXXXXX Contract in such a manner as to protect the interests of the Bank and the Borrower to accomplish the purposes of the Loan. Except as the Bank may otherwise agree, the Borrower shall not amend or fail to enforce any provision of the XXXXXXX Contract. In case of any conflict between the terms of: (i) the XXXXXXX Contract; and (ii) those of this Agreement, the terms of this Agreement shall prevail. (e) The Borrower shall, through CNA, enter into an agreement (Carta Compromiso) with each WU carrying out a WU Managed Off-farm Irrigation Subproject or a WU Managed On-farm Irrigation Subproject, under terms and conditions substantially similar to those of the model form contained in the Operational Manual (the Subproject Implementation Agreements), such agreements to provide for: (i) the terms under which the financial contributions will be made available to the WU to carry out the respective WU Managed Off-farm Irrigation Subproject or WU Managed On-farm Irrigation Subproject; and (ii) the obligation of such WU: (A) to carry out the WU Managed Off-farm Irrigation Subproject or the WU Managed On-farm Irrigation Subproject, and the IIIP, as provided in the Loan Agreement and the Operational Manual; (B) to contribute part of the capital costs of the WU Managed Off-farm Irrigation Subproject or the WU Managed On-farm Irrigation Subproject, all in accordance with the provisions requirements of the Development ContractOperational Manual; and (C) to comply with the environmental and social requirements applicable to the WU Managed Off-farm Irrigation Subproject or the WU Managed On-farm Irrigation Subproject. (f) The Borrower shall, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and shall through CNA: (i) exercise its rights thereunder and carry out its obligations under each of the Subproject Implementation Agreements in such manner as to protect the interests of the Borrower and the Association Bank and to accomplish the purposes of the CreditLoan; and and (iiiii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Association and DAWASA Bank shall otherwise agree, DAWASA shall carry out not assign, amend, abrogate, suspend, waive, terminate or fail to enforce any of the Project in accordance with the Subproject Implementation Program set forth in Schedule 2 to this AgreementAgreements or any provision thereof. Section 2.023.02. Except as the Association Bank shall otherwise agree, procurement of the goods, works and consultants’ ' services required for the Project and to be financed out of the proceeds of the Credit Loan shall be governed by the provisions of Schedule 1 4 to this Agreement. Section 3.03. The Borrower shall not later than March 30, 2004, through CNA and SAGARPA, make arrangements, satisfactory to the Bank (the Acuerdo SAGARPA), to set forth the terms of SAGARPA’s cooperation in the implementation of the Project, in coordinating with CNA in the financing of Irrigated Crop Technology Subprojects included in IIIPs; and in informing on the progress of such Irrigated Crop Technology Subprojects. Section 3.04. The Borrower shall, through NAFIN, inform the Bank of any revisions to the procedural rules of Alianza Contigo dated April 7, 2003, as relevant for the implementation of Off-farm Irrigation Subprojects, On-farm Irrigation Subprojects and Irrigated Crop Technology Subprojects, prior to incorporation in the Operational Manual of the revisions that may accordingly be needed. Section 3.05. The Borrower shall carry out the Project, through CNA, in accordance with an operational manual, satisfactory to the Bank, said manual to include, inter alia: (a) DAWASA shall carry out or cause to be carried the procedures for the carrying out, the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 monitoring and 9.08 evaluation of the General Conditions Project (relating to insuranceincluding the procurement, use of goods financial management and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of this Agreement.disbursement requirements thereof); (b) the requirements for the preparation of IIIPs; (c) the criteria for the approval, implementation and monitoring of Off-farm Irrigation Subprojects and On-farm Irrigation Subprojects; (d) a model agreement for implementation of WU Managed Off-farm Irrigation Subprojects and WU Managed On-farm Irrigation Subprojects; (e) the screening procedures for implementation of works (including specific procedures for instances where the implementation of works and/or the use of the resulting infrastructure affects international waterways); and (f) the organization of the PCS. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevail. Section 3.06. The Borrower shall, through CNA, during the execution of the Project: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, and in accordance with the indicators set forth in the Implementation Letter, the carrying out of the Project (including the Irrigated Crop Technology Subprojects), and the achievement of its objective, with the assistance of SAGARPA in respect of Part B.2 of the Project; (b) furnish and cause to be furnished to the Bank, not later than March 31 and September 30 of each year, commencing March 31, 2004, a progress report on the execution of the Project during the six-month period immediately preceding the date of each such report, said report to be of such scope and detail as the Bank may reasonably request and to include the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section; (c) carry out, jointly with the Bank: (i) not later than May 31 and November 30 of each year, commencing May 31, 2004, reviews of the progress of the Project and the attainment of Project objective on the basis of the reports referred to in paragraph (b) of this Section; and (ii) not later than December 31, 2006, in addition to the subjects mentioned in (c) (i) hereof, a review (the mid-term review) of: (A) the appropriateness of IIIPs as a mechanism for integrating investments and coordinating On-farm Irrigation Subprojects, Off-farm Irrigation Subprojects and Irrigated Crop Technology Subprojects, (B) the progress made in the transfer of Irrigation District’s management, and (C) the overall effectiveness of the performance and implementation arrangements of the Project; and (d) after each such review, take all measures required to ensure the efficient completion of the Project and the achievement of its objective, based on the conclusions and recommendations of the said reports and reviews, and the Bank's views on the matter. Section 3.07. The Borrower shall through CNA: (a) by November 30 of each year during Project implementation prepare and furnish to the Bank for comments, the proposed preliminary operating plan and budget, satisfactory to the Bank, detailing the Project (other than Part B.2 thereof) activities proposed to be carried out during the next succeeding year and the respective sources of funding therefor; and (b) not later than March 31 of each year furnish to the Bank the final operating plan, for such year (Approved POA). Section 3.08. Without limitation to or restrictions upon any provision of this Agreement, the Borrower shall through CNA, under arrangements satisfactory to the Bank, cause the dams and related infrastructure works supplying waters for Off-farm Irrigation Subprojects, On-farm Irrigation Subprojects and Irrigated Crop Technology Subprojects, to be periodically inspected in accordance with sound engineering practices in order to determine whether there are any deficiencies in infrastructure works or in the quality and adequacy of maintenance or methods of operations of the same, which may endanger their safety. Section 3.09. For the purposes of Section 9.06 9.07 of the General Conditions and without limitation thereto, DAWASA the Borrower shall, in conjunction with the Borrower: (ia) through CNA prepare, on the basis of guidelines acceptable to the Association Bank, and furnish to the Association Bank not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose among the Association, between the Borrower and DAWASAthe Bank, a plan for the future operation of the Project designed to ensure its sustainabilityProject; and (iib) afford the Association Bank a reasonable opportunity to exchange views with DAWASA and the Borrower CNA on the said plan. Section 2.04. Without limitation to its obligations under Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the Project: (a) replenish the Project Account up to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion of the Project, or whenever its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and (b) 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.

Execution of the Project. (a) DAWASA BEEF declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit GEF Trust Fund Grant Agreement, and, to this end, shall: (i) shall carry out the Project with due diligence and efficiency and in conformity with appropriate administrativetechnical and environmental standards, financial, engineering, environmental, water, sewerage and resettlement practiceswith due regard to the reduction of greenhouse gases through promoting energy efficiency pursuant to the provision of the United Nations Framework Convention on Climate Change, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project; (ii) duly and punctually perform in accordance with the provisions of the Development Contract, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as BEEF and the Association and DAWASA Bank shall otherwise agree, DAWASA BEEF shall carry out the Project in accordance with the Implementation Program set forth in Schedule 2 1 to this AgreementAgreement and the Operations Manual. Section 2.02. (a) Except as the Association Bank shall otherwise agree, procurement of the goods, works goods and consultants’ services required for the Project and to be financed out of the proceeds of the Credit GEF Trust Fund Grant shall be governed by the provisions of Schedule 1 2 to this Agreement, as said provisions may be further elaborated in the Procurement Plan. (ab) DAWASA BEEF shall update the Procurement Plan in accordance with guidelines acceptable to the Bank and furnish such update to the Bank not later than twelve (12) months after the date of the preceding Procurement Plan, for the Bank’s approval. Section 2.03. BEEF shall carry out or cause to be carried out, the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 9.07, 9.08 and 9.08 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of this Agreement. (b) For the purposes of Section 9.06 of the General Conditions and without limitation thereto, DAWASA shall, in conjunction with the Borrower: (i) prepare, on the basis of guidelines acceptable to the Association and furnish to the Association not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose among the Association, the Borrower and DAWASA, a plan for the future operation of the Project designed to ensure its sustainability; and (ii) afford the Association a reasonable opportunity to exchange views with DAWASA and the Borrower on the said planProject. Section 2.04. Without limitation to BEEF shall duly perform all its obligations under the Subsidiary Grant Agreement. Except as the Bank and the Recipient shall otherwise agree, BEEF shall not take or concur in any action which would have the effect of amending, abrogating, assigning or waiving the Subsidiary Grant Agreement or any provision thereof. Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the Project: 2.05. (a) replenish the Project Account up to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) BEEF shall, at the end request of each Project Quarter until the completion Bank, exchange views with the Bank and the Recipient with regard to progress of the Project, or whenever the performance of its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and (b) ensure that amounts deposited into obligations under this Agreement and under the Project Account shall be used exclusively Subsidiary Grant Agreement, and other matters relating to make payments to meet expenditures made or to be made in respect the purposes of the reasonable cost of goods, works and services for the Project in addition to those financed from the proceeds of the Creditgrant.

Execution of the Project. (a) DAWASA HWW declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit Loan Agreement, and, to this end, shall: (i) shall carry out Part A of the Project with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage environmental and resettlement water management practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project; (ii) duly and punctually perform in accordance with the provisions of the Development Contract, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon the provisions of paragraph paragraph (a) of this Section and except as the Association Bank and DAWASA HWW shall otherwise agree, DAWASA HWW shall carry out Part A of the Project in accordance with the Implementation Program set forth in Schedule 2 to this Agreement. Section 2.02. HWW shall duly perform all its obligations under the Subsidiary Loan Agreement. Except as the Association Bank shall otherwise agree, HWW shall not take or concur in any action which would have the effect of amending, abrogating, assigning or waiving the Subsidiary Loan Agreement or any provision thereof. (a) Except as the Bank shall otherwise agree, procurement of the goods, works and consultants’ services required for Part A of the Project and to be financed out of the proceeds of the Credit Loan shall be governed by the provisions of Schedule 1 to this Agreement. (b) Without limitation upon the provisions of paragraph (a) DAWASA of this Section, HWW shall: (i) prepare, on the basis of guidelines acceptable to the Bank, and furnish to the Bank not later than six (6) after the Closing Date or such later date as may be agreed for this purpose between the Bank and HWW, a plan for the future operation of the Project; (ii) afford the Bank a reasonable opportunity to exchange views with HWW on said plan; and (iii) thereafter, carry out said plan with due diligence and efficiency and in accordance with appropriate practices, taking into account the Bank’s comments thereon. Section 2.04. HWW shall carry out or cause to be carried out, the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 9.07, 9.08 and 9.08 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of this the Project Agreement. Section 2.05. (ba) For HWW shall, at the purposes of Section 9.06 request of the General Conditions and without limitation theretoBank, DAWASA shall, in conjunction with the Borrower: (i) prepare, on the basis of guidelines acceptable to the Association and furnish to the Association not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose among the Association, the Borrower and DAWASA, a plan for the future operation of the Project designed to ensure its sustainability; and (ii) afford the Association a reasonable opportunity to exchange views with DAWASA and the Borrower on the said plan. Section 2.04. Without limitation Bank with regard to its obligations under Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the Project: (a) replenish the Project Account up to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion progress of the Project, or whenever the performance of its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and (b) ensure that amounts deposited into respective obligations under this Agreement and other matters relating to the Project Account shall be used exclusively to make payments to meet expenditures made or to be made in respect purposes of the reasonable cost of goods, works and services for the Project in addition to those financed from the proceeds of the CreditLoan.

Execution of the Project. (a) DAWASA declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit Agreement, and, to this end, shall: (i) Section 3.01. The Recipient shall carry out the Project with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement engineering practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project; (ii) duly and punctually perform in accordance with the provisions of the Development Contract, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Association and DAWASA shall otherwise agree, DAWASA shall carry out the Project in accordance with the Implementation Program set forth in Schedule 2 to this Agreement. Section 2.023.02. Except as the Association Administrator shall otherwise agree, procurement of the goods, works goods and consultants’ ' services required for the Project and to be financed out of the proceeds of the Credit Grant shall be governed by the provisions of Schedule 1 3 to this Agreement. (a) DAWASA The Recipient shall carry out maintain or cause to be carried out, the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, maintained records and reportsaccounts adequate to reflect in accordance with sound accounting practices the operations, maintenance resources and land acquisition, respectively) expenditures in respect of this Agreementthe Project of the departments or agencies of the Recipient responsible for carrying out the Project or any part thereof. (b) For the purposes of Section 9.06 of the General Conditions and without limitation thereto, DAWASA The Recipient shall, in conjunction with the Borrower: (i) have the records and accounts referred to in paragraph (a) of this Section for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Administrator; (ii) furnish to the Administrator as soon as available, but in any case not later than four months after the end of each such year, the report of such audit by said auditors, of such scope and in such detail as the Administrator shall have reasonably requested; and (iii) furnish to the Administrator such other information concerning said records and accounts and the audit thereof as the Administrator shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Account were made on the basis of statements of expenditure, the Recipient shall: (i) maintain or cause to be maintained, in accordance with paragraph (a) of this Section, records and accounts reflecting such expenditures; (ii) retain, until at least one year after the Administrator has received the audit report for the fiscal year in which the last withdrawal from the Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Administrator's representatives to examine such records; and (iv) ensure that such records and accounts are included in the annual audit referred to in paragraph (b) of this Section and that the report of such audit contains a separate opinion by said auditors as to whether the statements of expenditure submitted during such fiscal year, together with the procedures and internal controls involved in their preparation, can be relied upon to support the related withdrawals. Section 3.04. Without limitation upon the applicable provisions of Article IX of the General Conditions, the Recipient shall: (a) prepare, on the basis of guidelines acceptable to the Association Administrator, and furnish to the Association Administrator not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose among between the Association, Recipient and the Borrower and DAWASAAdministrator, a plan for the future operation of the Project designed to ensure its sustainabilitythe continued achievement of the objectives of the Project; and (iib) afford the Association Administrator a reasonable opportunity to exchange views with DAWASA and the Borrower Recipient on the said plan. Section 2.04. Without limitation to its obligations under Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the Project: (a) replenish the Project Account up to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion of the Project, or whenever its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and (b) 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.

Execution of the Project. (a) DAWASA The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit Agreement, this Agreement and, to this end, shall: (i) shall carry out the Project with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage admin- istrative and resettlement financial practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project; (ii) duly and punctually perform in accordance with the provisions of the Development Contract, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as Section, the Association and DAWASA shall otherwise agree, DAWASA Borrower shall carry out the Project in accordance with the Implementation Program set forth in Schedule 5 to this Agreement, as such Schedule may be amended from time to time by agreement between the Borrower and the Association. Section 3.02. Without any limitation or restriction upon any of its obligations under Section 3.01 of this Agreement, the Borrower shall cause the relevant government ministries and agencies referred to in Schedule 2 to this AgreementAgreement to provide to the consultants to be employed under the Project the necessary facilities and assistance to enable such consultants to carry out their duties. Section 2.023.03. Except as the Association shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Credit shall be governed by the provisions of Schedule 1 3 to this Agreement. Section 3.04. The Borrower shall establish and maintain in the Central Bank of Somalia, under arrangements satisfactory to the Association, a Project Account in which shall be deposited the local currency proceeds generated from the sale of the proceeds of the Credit. Funds deposited into said Account shall form part of the Borrower’s general budget. (a) The Borrower shall: (i) establish and maintain, under arrangements satis- factory to the Association, a Social Action Fund for the purpose of financing sub-projects to mitigate the social cost of adjustment pursuant to Part C of Schedule 2 to this Agreement. The Borrower shall operate the Social Action Fund in accordance with procedures satisfactory to the Association, and in accordance with the provisions of Schedule 5 to this Agreement. (aii) DAWASA shall carry out or cause maintain the Social Action Committee within MNP to be carried out, administer the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 operation of the General Conditions (relating to insurance, use Social Action Fund. The head of goods the Social Action Unit shall be a member of the Social Action Committee. Other members of the Social Action Committee shall be appointed by the Minister of Finance and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of this AgreementRevenue. (b) For The Social Action Committee shall be responsible for reviewing Sub-projects recommended by the purposes of Section 9.06 of Social Action Unit and to be financed under the General Conditions and without limitation thereto, DAWASA Social Action Fund. (a) The Borrower shall, in conjunction with not later than August 31, 1989, establish a Social Action Unit within MNP which shall be responsible to the Borrower:Social Action Committee. (b) The Social Action Unit shall formulate and develop policies which will, inter alia: (i) prepare, on identify and explore ways in which equity issues can be addressed in the basis of guidelines acceptable to the Association and furnish to the Association not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose among the Association, the Borrower and DAWASA, a plan for the future operation context of the Project designed to ensure its sustainabilitymacro economic policy reform; and (ii) afford formulate actions which can address the Association a reasonable opportunity problems of vulnerable groups; and (iii) communicate to exchange views with DAWASA the vulnerable groups the available social services and the Borrower on the said plansupport. Section 2.043.07. Without limitation to its obligations under Section 2.01 of this Agreement, DAWASA The Borrower shall, for the purposes of making available the counterpart contribution to the financing of the Project: (a) replenish carry out surveys referred to in Part C.2 of the Project Account up under terms of reference acceptable to the initial amount Association; (b) upon their completion submit to the Association for review the results of seven hundred fifty million Tanzanian Shillings said surveys; and (Tshs 750,000,000c) at the end of each Project Quarter until the completion based on results of the Projectsurveys, or whenever formulate and implement social and economic policies to assist people identified as requiring assistance. Section 3.08. The Borrower shall: (a) not later than November 30 of every year submit to the Association for comment its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000)proposals for updating the three-year Public Investment Program; and (b) ensure that amounts deposited thereafter update annually the Public Investment Program taking into account the Project Account Association views. Section 3.09. The Borrower shall: (a) not later than March 30, 1990, submit to the Association for review a plan of action for the future management of food aid; and (b) thereafter implement such plan of action taking into account the Associa- tion’s views. (a) The Borrower shall be used exclusively submit to make payments to meet expenditures made or to be made the Associa- tion for review semi-annual reports on the implementation of the Program in respect of the reasonable cost of goods, works and services for the Project in addition to those financed from the proceeds involvement of the Credit.private sector in the following businesses and trades: (i) hides and skins;

Execution of the Project. (a) DAWASA declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit Agreement, and, to this end, shall: (i) Section 3.01. The Recipient shall carry out the Project with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage engineering and resettlement administrative practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project;. (ii) duly Section 3.02. In order to assist the Recipient in carrying out the Project, the Recipient shall employ consultants whose qualifications, experience and punctually perform terms of reference and terms and conditions of employment shall be satisfactory to the Administrator. Such consultants shall be selected in accordance with principles and procedures satisfactory to the provisions Bank on the basis of the Development Contract"Guidelines for the Use of Consultants by World Bank Borrowers and by The World Bank as Executing Agency" published by the Bank in August 1981. (a) The Recipient shall maintain or cause to be maintained records and accounts adequate to reflect in accordance with sound accounting practices the operations, Lease Contract resources and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder expenditures in such manner as to protect the interests respect of the Borrower and the Association and accomplish the purposes Project of the Credit; and (iii) cause departments or agencies of the Operator to carry Recipient responsible for carrying out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practicesProject or any part thereof. (b) Without limitation upon The Recipient shall: (i) have the provisions of records and accounts referred to in paragraph (a) of this Section and except as the Association and DAWASA shall otherwise agreefor each fiscal year audited, DAWASA shall carry out the Project in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Implementation Program set forth Administrator; (ii) furnish to the Administrator as soon as available, but in Schedule 2 to this Agreement. Section 2.02. Except any case not later than nine months after the end of each such year, the report of such audit by said auditors, of such scope and in such detail as the Association Administrator shall otherwise agree, procurement of have reasonably requested; and (iii) furnish to the goods, works Administrator such other information concerning said records and consultants’ services required for accounts and the Project and audit thereof as the Administrator shall from time to be financed out of the proceeds of the Credit shall be governed by the provisions of Schedule 1 to this Agreementtime reasonably request. (ac) DAWASA shall carry out or cause For all expenditures with respect to be carried outwhich withdrawals from the Grant Account were made on the basis of statements of expenditure, the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of this Agreement. (b) For the purposes of Section 9.06 of the General Conditions and without limitation thereto, DAWASA Recipient shall, in conjunction with the Borrower: (i) preparemaintain or cause to be maintained, on the basis in accordance with paragraph (a) of guidelines acceptable to the Association this Section, records and furnish to the Association not later than six accounts reflecting such expenditures; (6ii) months retain, until at least one year after the Closing Date or such later date as may be agreed for this purpose among Administrator has received the Association, the Borrower and DAWASA, a plan audit report for the future operation of fiscal year in which the Project designed last withdrawal from the Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Administrator’s representatives to ensure its sustainabilityexamine such records; and (iiiv) afford ensure that such records and accounts are included in the Association a reasonable opportunity annual audit referred to exchange views with DAWASA and the Borrower on the said plan. Section 2.04. Without limitation to its obligations under Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the Project: (a) replenish the Project Account up to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion of the Project, or whenever its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and in paragraph (b) ensure of this Section and that amounts deposited into the Project Account shall report of such audit contains a separate opinion by said auditors as to whether the statements of expenditure submitted during such fiscal year, together with the procedures and internal controls involved in their preparation, can be used exclusively relied upon to make payments to meet expenditures made or to be made in respect of support the reasonable cost of goods, works and services for the Project in addition to those financed from the proceeds of the Creditrelated withdrawals.

Execution of the Project. (a) DAWASA The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit Agreement, this Agreement and, to this end, shall: (i) shall carry out the Project through the Ministry of Agriculture and the National Agricultural Research Board with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage agricultural extension and resettlement research practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project; (ii) duly and punctually perform in accordance with the provisions of the Development Contract, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon the provisions or restriction of its obligations under paragraph (a) of this Section Section, the Borrower shall: (i) provide in its annual budget amounts adequate to cover its counterpart contributions to the costs of the Project; (ii) open and except as maintain in its Central Bank an account (the Project Account) to be used exclusively to meet expenditures under the Project; and deposit into the Project Account: (A) an initial amount of $50,000 equivalent, and (B) the remaining amount of its counterpart contributions, quarterly in advance, according to a schedule of payments agreed upon between the Borrower and the Association. (i) The Borrower shall continue to maintain the National Agricultural Research Board (NARB) and establish and maintain a National Agricultural Research Institute (NARI), all in a form and with functions and staffing satisfactory to the Association. (ii) The Borrower shall continue to maintain in a form and with functions and staffing satisfactory to the Association its Project Support Unit (PSU). The Project Support Unit shall be responsible for handling procurement matters under all Parts of the Project (other than Part C (2) of the Project), and DAWASA for the administration and monitoring of Project activities. (iii) The Borrower shall otherwise agreecause NARB to: (A) establish and thereafter maintain a Technical Secretariat (TS) within NARB. TS shall be established and maintained in a form and with functions and staffing satisfactory to the Association; and (B) appoint and assign to TS a Research Manager and a Finance Expert whose qualifications, DAWASA experience and terms and conditions of employment shall be satisfactory to the Association. (d) The Borrower shall carry out by the beginning of the third year of the Project in accordance and complete by the end of the said year an adoption and diffusion extension study satisfactory to the Association. (e) The Borrower shall: (i) no later than December 31, 1996, carry out jointly with the Implementation Program set forth Association a mid-term review of the Project to assess on the basis of the key monitoring indicators agreed upon between the Borrower and the Association: (A) the overall progress made in Schedule 2 carrying out the Project, including its benefits and costs; (B) the performance of agencies and entities participating in the Project; (C) the extent to which the institutional objectives of the Project have been achieved; and (D) the results of the adoption and diffusion extension study referred to in paragraph (d) of this AgreementSection; and (ii) promptly thereafter implement the recommendations of the mid-term review to the satisfaction of the Association. (f) The Borrower shall transmit to the Association, at least 90 days prior to the mid-term review described in paragraph (e) above, a report, in scope and detail satisfactory to the Association, describing the status of Project implementation. Section 2.023.02. Except as the Association shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Credit shall be governed by the provisions of Schedule 1 3 to this Agreement. (a) DAWASA Section 3.03. The Borrower shall carry out or cause the actions described in Schedule 4 to be carried out, this Agreement to the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 satisfaction of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of this AgreementAssociation. (b) For the purposes of Section 9.06 of the General Conditions and without limitation thereto, DAWASA shall, in conjunction with the Borrower: (i) prepare, on the basis of guidelines acceptable to the Association and furnish to the Association not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose among the Association, the Borrower and DAWASA, a plan for the future operation of the Project designed to ensure its sustainability; and (ii) afford the Association a reasonable opportunity to exchange views with DAWASA and the Borrower on the said plan. Section 2.04. Without limitation to its obligations under Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the Project: (a) replenish the Project Account up to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion of the Project, or whenever its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and (b) 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.

Execution of the Project. (a) DAWASA Republika Srpska declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit Agreement, and, to this end, shall: (i) , carry out Part B of the Project with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage engineering and resettlement environmental practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for said Part B of the Project; (ii) duly and punctually perform in accordance with the provisions of the Development Contract, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Association and DAWASA Republika Srpska shall otherwise agree, DAWASA Republika Srpska shall carry out Part B of the Project in accordance with the Implementation Program set forth in Schedule 2 to this Agreement. Section 2.02. Except as the Association shall otherwise agree, procurement of the goodsworks, works goods and consultants’ services required for Part B of the Project and to be financed out of the proceeds of the Credit shall be governed by the provisions of Schedule 1 to this Agreement. (a) DAWASA Republika Srpska shall carry out or cause to be carried out, the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of this Agreementthe Part B of the Project. (b) For the purposes of Section 9.06 of the General Conditions and without limitation thereto, DAWASA Republika Srpska shall, in conjunction with the Borrower: (i) prepare, on the basis of guidelines acceptable to the Association and furnish to the Association not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose among between the Association, the Borrower Association and DAWASARepublika Srpska, a plan for the future operation of Part B of the Project designed to ensure its sustainabilityProject; and (ii) afford the Association a reasonable opportunity to exchange views with DAWASA and the Borrower Republika Srpska on the said plan. Section 2.04. Without limitation to Republika Srpska shall duly perform all its obligations under Republika Srpska Subsidiary Credit Agreement. Except as the Association shall otherwise agree, Republika Srpska shall not take or concur in any action which would have the effect of amending, abrogating, assigning or waiving Republika Srpska Subsidiary Credit Agreement or any provision thereof. Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the Project: 2.05. (a) replenish Republika Srpska shall, at the Project Account up request of the Association, exchange views with the Association with regard to the initial amount progress of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion Part B of the Project, or whenever the performance of its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and (b) ensure that amounts deposited into obligations under this Agreement and under the Project Account shall be used exclusively Republika Srpska Subsidiary Credit Agreement and other matters relating 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 purposes of the Credit.

Execution of the Project. (a) DAWASA declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit Agreement, and, to this end, shall: (i) Section 3.01. The Recipient shall carry out the Project Technical Assistance with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage financial and resettlement administrative practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project;. (ii) duly Section 3.02. In order to assist the Recipient in the carrying out of the Technical Assistance, the Recipient shall employ con- sultants whose qualifications, experience and punctually perform terms and conditions of employment shall be satisfactory to the Administrator. Such consultants shall be selected in accordance with principles and procedures satisfactory to the provisions Administrator on the basis of the Development Contract"Guidelines for the Use of Consultants by World Bank Borrowers and by the World Bank as Executing Agency" published by the Bank in August 1981. (a) The Recipient shall maintain or cause to be maintained records and accounts adequate to reflect in accordance with sound accounting practices the operations, Lease Contract resources and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder expenditures in such manner as to protect the interests respect of the Borrower and the Association and accomplish the purposes Technical Assistance of the Credit; and (iii) cause departments or agencies of the Operator to carry Recipient responsible for carrying out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practicesTechnical Assistance or any part thereof. (b) Without limitation upon The Recipient shall: (i) have the provisions of records and accounts referred to in paragraph (a) of this Section and except as the Association and DAWASA shall otherwise agreefor each fiscal year audited, DAWASA shall carry out the Project in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Implementation Program set forth Administrator; (ii) furnish to the Administrator as soon as available, but in Schedule 2 to this Agreement. Section 2.02. Except any case not later than four months after the end of each such year, the report of such audit by said auditors, of such scope and in such detail as the Association Administrator shall otherwise agree, procurement of have reasonably requested; and (iii) furnish to the goods, works Administrator such other information concerning said records and consultants’ services required for accounts and the Project and audit thereof as the Administrator shall from time to be financed out of the proceeds of the Credit shall be governed by the provisions of Schedule 1 to this Agreementtime reasonably request. (ac) DAWASA shall carry out or cause For all expenditures with respect to be carried outwhich withdrawals from the Grant Account were made on the basis of statements of expenditure, the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of this Agreement. (b) For the purposes of Section 9.06 of the General Conditions and without limitation thereto, DAWASA Recipient shall, in conjunction with the Borrower: (i) preparemaintain or cause to be maintained, on the basis in accordance with paragraph (a) of guidelines acceptable to the Association this Section, records and furnish to the Association not later than six accounts reflecting such expenditures; (6ii) months retain, until at least one year after the Closing Date or such later date as may be agreed for this purpose among Administrator has received the Association, the Borrower and DAWASA, a plan audit report for the future operation of fiscal year in which the Project designed last withdrawal from the Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Administrator’s representatives to ensure its sustainabilityexamine such records; and (iiiv) afford ensure that such records and accounts are included in the Association a reasonable opportunity annual audit referred to exchange views with DAWASA and the Borrower on the said plan. Section 2.04. Without limitation to its obligations under Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the Project: (a) replenish the Project Account up to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion of the Project, or whenever its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and in paragraph (b) ensure of this Section and that amounts deposited into the Project Account shall report of such audit contains a separate opinion by said auditors as to whether the statements of expenditure submitted during such fiscal year, together with the procedures and internal controls involved in their preparation, can be used exclusively relied upon to make payments to meet expenditures made or to be made in respect of support the reasonable cost of goods, works and services for the Project in addition to those financed from the proceeds of the Creditrelated withdrawals.

Execution of the Project. (a) DAWASA Each State declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit Agreement, and, to this end, shall: (i) shall carry out the Project with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage engineering and resettlement agricultural practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project; (ii) duly and punctually perform in accordance with the provisions of the Development Contract, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon Each State shall take all such steps as shall be necessary to assist the provisions Borrower, NABARD and SSCs in carrying out their respective obligations under the Project. (c) Each State shall take all steps necessary to make available the proceeds of paragraph the Credit provided to it pursuant to Section 3.01 (ac) of this the Development Credit Agreement, to its respective Department of Agriculture, Agricultural Universities and SSCA in accordance with standard arrangements for the passing of such funds. Section and except as the Association and DAWASA 2.02. Each State shall otherwise agree, DAWASA shall take all necessary steps to (i) duly carry out the Project Action Plan Implementation Agreement to which it is a party; and (ii) enable and cause the concerned SSC to duly implement the Action Plan Implementation Agreement including, in accordance with particular, the Implementation Program key elements set forth out in Schedule 2 4 to this the Development Credit Agreement. Section 2.022.03. Each State shall continue to implement its policy to encourage the growth of a viable seed industry including the private sector. Section 2.04. The States shall cause their respective Agricultural Universities to carry out Part B (2) of the Project. Section 2.05. For the purpose of enforcing minimum seed quality control standards under the applicable laws, each State shall carry out adequate seed quality inspection. Section 2.06. Each State shall cause its SSC, SSCA and, where relevant and in respect of the production of seeds, its Agricultural Universities, to separately prepare and furnish to the Association: (i) an annual work program by the commencement of their respective financial years; and (ii) bi-annual progress reports within two months of the close of each semester. Section 2.07. Except as the Association shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Credit shall be governed by the provisions of Schedule 1 3 to this the Development Credit Agreement. (a) DAWASA Section 2.08. The States shall carry out or cause to be carried out, the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of the Project Agreement and Parts A and B of the Project. (a) Each State shall, at the request of the Association, exchange views and cause its SSC, SSCA and Agricultural University to exchange views, with the Association with regard to the progress of the Project, the performance of its obligations under this AgreementAgreement and other matters relating to the purposes of the Credit. (b) For Each State shall promptly inform the purposes Association of Section 9.06 of the General Conditions and without limitation thereto, DAWASA shall, in conjunction any condition which interferes or threatens to interfere with the Borrower: (i) prepare, on the basis of guidelines acceptable to the Association and furnish to the Association not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose among the Association, the Borrower and DAWASA, a plan for the future operation of the Project designed to ensure its sustainability; and (ii) afford the Association a reasonable opportunity to exchange views with DAWASA and the Borrower on the said plan. Section 2.04. Without limitation to its obligations under Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the Project: (a) replenish the Project Account up to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion progress of the Project, or whenever its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and (b) 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 accomplishment of the reasonable cost of goods, works and services for the Project in addition to those financed from the proceeds purposes of the Credit, or the performance by each State of its obligations under this Agreement.

Execution of the Project. (a) DAWASA Section 3.01. The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit this Agreement, and, to this end, shall: (i) end shall carry out the Project with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage environmental and resettlement practices, commercial practices and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project;. (ii) duly and punctually perform in accordance with Section 3.02. Without limitation or restriction upon any of its other obligations under the provisions of Loan Agreement, the Development ContractBorrower shall, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner except as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Association and DAWASA Bank shall otherwise agree, DAWASA shall carry out the Project in accordance with the Implementation Program set forth in Schedule 2 5 to this Agreement. Section 2.023.03. Without limitation or restriction upon any of its other obligations under the Loan Agreement and except as the Borrower and the Bank shall otherwise agree, the Borrower shall, for the purpose of carrying out Part B of the Project: (a) adopt a resolution (the Resolution) satisfactory to the Bank, establishing the NPAF and authorizing the carrying out of Part B of the Project in accordance with Schedules 5, 7 and 8 to this Agreement, and including, without limitation, the terms and conditions governing: (i) the use by the NPAF of Loan proceeds and goods and services financed by the Loan; (ii) the rights and responsibilities of the MOF, MEPNR, NPAF Supervisory Board, CPPI and other appropriate parties of the Borrower with respect to the NPAF; (iii) the NPAF Account; (iv) procedures, eligibility criteria and terms and conditions related to the Investment Projects; and (v) maintenance and audit of records and accounts of the NPAF, and disclosure of information related to the NPAF, in accordance with Article IV of this Agreement; (b) adopt all necessary internal legal and regulatory decisions to enable NPAF Sub-loans and Investment Project Preparation Advances to be made out of the proceeds of the Loan to Sub-borrowers; (c) ensure that, unless the Bank shall otherwise agree, Investment Project Preparation Advances will be made in accordance with the procedures and eligibility criteria set forth in Sections A and B of Schedule 8 to this Agreement; (d) ensure that each Investment Project Preparation Advance is made pursuant to an advance agreement (the Advance Agreement) entered into between the Borrower and the proposed Sub-borrower, under terms and conditions which shall have been approved by the Bank and which shall include, without limitation, the terms and conditions set forth in Section C of Schedule 8 to this Agreement; (e) ensure that, unless the Bank shall otherwise agree, Investment Projects are selected and approved in accordance with the procedures and eligibility criteria set forth in Sections A and B of Schedule 7 to this Agreement; (f) ensure that each NPAF Sub-loan is made pursuant to a subsidiary loan agreement (the Subsidiary Loan Agreement) entered into between the Borrower and the Sub-borrower, under terms and conditions which shall have been approved by the Bank, which shall include, without limitation, the terms and conditions set forth in Section C of Schedule 7 to this Agreement; (g) cause each Sub-borrower to perform in accordance with the provisions of the respective Subsidiary Loan Agreement; and (h) ensure that the NPAF operates pursuant to operating instructions (the Operating Instructions), satisfactory to the Bank, which shall contain a model Subsidiary Loan Agreement with terms and conditions set forth in Part C of Schedule 7 to this Agreement and a model Advance Agreement with terms and conditions set forth in Part C of Schedule 8 to this Agreement, and the operating procedures of the NPAF, including such matters as: (i) project eligibility criteria; (ii) project approval and appraisal criteria, including the Bank’s right of prior review approval; (iii) staff and consultant responsibilities; (iv) procurement procedures; (v) auditing and reporting requirements; (vi) general terms and conditions of NPAF Sub-loans; and (vii) environmental guidelines. Section 3.04. In order to facilitate the efficient carrying out of the Project, the Borrower shall ensure the operation of the CPPI with functions, staffing, including consultants, and other resources satisfactory to the Bank. Section 3.05. Except as the Association Bank shall otherwise agree, procurement of the goods, works goods and consultants’ services required for the Project and to be financed out of the proceeds of the Credit Loan and required for: (i) Parts A, B(1) and C of the Project shall be governed by the provisions of Schedule 1 4 to this Agreement; and (ii) Part B(2) of the Project shall be governed by the provisions of Schedule 9 to this Agreement. (a) DAWASA shall carry out or cause to be carried out, the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of this Agreement. (b) For the purposes of Section 9.06 of the General Conditions and without limitation thereto, DAWASA shall, in conjunction with the Borrower: (i) prepare, on the basis of guidelines acceptable to the Association and furnish to the Association not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose among the Association, the Borrower and DAWASA, a plan for the future operation of the Project designed to ensure its sustainability; and (ii) afford the Association a reasonable opportunity to exchange views with DAWASA and the Borrower on the said plan. Section 2.04. Without limitation to its obligations under Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the Project: (a) replenish the Project Account up to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion of the Project, or whenever its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and (b) 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.

Execution of the Project. (a) DAWASA declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit Agreement, and, to this end, shall: (i) Section 3.01. The Recipient shall carry out the Project with due diligence and efficiency and in conformity with appropriate administrativebusiness, financial, engineering, environmental, water, sewerage financial and resettlement accounting practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project; (ii) duly and punctually perform in accordance with the provisions of the Development Contract, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Association and DAWASA shall otherwise agree, DAWASA shall carry out the Project in accordance with the Implementation Program set forth in Schedule 2 to this Agreement. Section 2.023.02. Except as the Association Administrator shall otherwise agree, procurement of the goods, works goods and consultants’ services required for the Project and to be financed out of the proceeds of the Credit Grant shall be governed by the provisions of Schedule 1 3 to this Agreement. (a) DAWASA The Recipient shall carry out maintain or cause to be carried out, the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, maintained records and reportsaccounts adequate to reflect in accordance with sound accounting practices the operations, maintenance resources and land acquisition, respectively) expenditures in respect of this Agreementthe Project of the departments or agencies of the Recipient responsible for carrying out the Project or any part thereof. (b) For the purposes of Section 9.06 of the General Conditions and without limitation thereto, DAWASA The Recipient shall, in conjunction with the Borrower: (i) have the records and accounts referred to in paragraph (a) of this Section for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Administrator; (ii) furnish to the Administrator as soon as available, but in any case not later than four months after the end of each such year, the report of such audit by said auditors, of such scope and in such detail as the Administrator shall have reasonably requested; and (iii) furnish to the Administrator such other information concerning said records and accounts and the audit thereof as the Administrator shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Account were made on the basis of statements of expenditure, the Recipient shall: (i) maintain or cause to be maintained, in accordance with paragraph (a) of this Section, records and accounts reflecting such expenditures; (ii) retain, until at least one year after the Administrator has received the audit for the fiscal year in which the last withdrawal from the Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Administrator’s representatives to examine such records; and (iv) ensure that such records and accounts are included in the annual audit referred to in paragraph (b) of this Section and that the report of such audit contains a separate opinion by said auditors as to whether the statements of expenditure submitted during such fiscal year, together with the proce-dures and internal controls involved in their preparation, can be relied upon to support the related withdrawals. Section 3.04. Without limitation upon the applicable provisions of Article IX of the General Conditions, the Recipient shall: (a) prepare, on the basis of guidelines acceptable to the Association Administrator, and furnish to the Association Administrator not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose among between the Association, Recipient and the Borrower and DAWASAAdministrator, a plan for the future operation of the Project designed to ensure its sustainabilitythe sustainability of the Project; and (iib) afford the Association Administrator a reasonable opportunity to exchange views with DAWASA and the Borrower Recipient on the said plan. Section 2.04. Without limitation to its obligations under Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the Project: (a) replenish the Project Account up to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion of the Project, or whenever its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and (b) 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.

Execution of the Project. (a) DAWASA The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit Agreement, and, to this end, shall: (i) end shall carry out the Project through MED, with the participation of FONCODES in respect of Infrastructure Subprojects pursuant to the FONCODES Agreement, all with due diligence and efficiency and in conformity with appropriate managerial, administrative, financial, engineeringeducation, environmental, water, sewerage social and resettlement environmental practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project; (ii) duly and punctually perform in accordance with the provisions of the Development Contract, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon or restriction to the provisions of paragraph (a) of this Section and except as above, the Association and DAWASA shall otherwise agree, DAWASA Borrower shall carry out the Project in accordance with with: (i) the Implementation Program set forth in Schedule 2 to this AgreementIndigenous Peoples Strategy; and (ii) the Procurement Improvement Action Plans. Section 2.023.02. Except as the Association Bank shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Credit Loan shall be governed by the provisions of Schedule 1 4 to this Agreement. (a) DAWASA shall carry out or cause to be carried outAt all times during the execution of the Project, the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions Borrower (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectivelythrough MED) in respect of this Agreement. (b) For the purposes of Section 9.06 of the General Conditions and without limitation thereto, DAWASA shall, in conjunction with the Borrowershall maintain: (i) prepare, on the basis of guidelines acceptable a Project steering committee with membership structure and responsibilities satisfactory to the Association Bank, including the following responsibilities: (A) to review Project implementation reports and furnish audits; and (B) to approve the Association not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose among the AssociationOperational Manual, the Borrower each Annual Operations Plan, and DAWASA, a plan for the future operation of the Project designed to ensure its sustainabilityany modification thereof; and (ii) afford a Project coordinating unit responsible for overall Project coordination, supervision, monitoring and evaluation, including: (A) preparing each Annual Operations Plan; (B) issuing Project implementation guidelines; (C) maintaining the Association a reasonable opportunity Project impact monitoring system; (D) procuring goods and consultants’ services for the Project; and (E) preparing FMRs and processing withdrawal applications. (b) The Borrower shall ensure that PCU is staffed, at all times during the execution of the Project, by core professional staff in numbers and with experience and qualifications acceptable to exchange views the Bank, operating under terms of reference satisfactory to the Bank, and selected in accordance with DAWASA competitive and transparent procedures satisfactory to the Borrower on Bank, all as prescribed in the said planOperational Manual. Section 2.043.04. Without limitation With regard to its obligations Part B.3 of the Project, the Borrower (through MED) shall enter into an agreement with FONCODES, under Section 2.01 of this Agreement, DAWASA shallterms and conditions satisfactory to the Bank, for the purposes of making available ensuring the counterpart contribution to participation of FONCODES in the financing implementation of such Part of the Project, said agreement to provide, inter alia: (a) replenish the Project Account up transfer to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion FONCODES of the Project, or whenever its balance shall be less than two hundred fifty million Tanzanian Shillings proceeds of the Loan allocated to Category (Tshs 250,000,000); and1) of the table in Part A.1 of Schedule 1 to this Agreement; (b) ensure that amounts deposited into the Project Account shall be used exclusively obligation of FONCODES to make payments to meet expenditures made or to be made carry out Infrastructure Subprojects in respect of accordance with: the reasonable cost of goods, works and services for the Project in addition to those financed from the proceeds of the Credit.Operational Manual; and

Execution of the Project. (a) DAWASA The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit Agreement, and, to this end, shallshall carry out: (i) carry out Parts A, B, C.2 and D of the Project through SEDUC; and (ii) Part C.1 of the Project through SARE and SEPLAN, all with due diligence and efficiency and in conformity with appropriate educational, economic, technical, administrative, financial, engineering, environmental, water, sewerage environmental and resettlement social practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project;. (b) The Borrower shall maintain, during the implementation of the Project, the Project Coordination Unit and a Special Bidding Committee with functions and responsibilities satisfactory to the Bank, at all times headed by a Project coordinator and assisted by staff in adequate numbers, all with qualifications and experience acceptable to the Bank. (c) The Borrower shall, through SEDUC, prior to submitting the Loan withdrawal application for the respective PME School Subproject, enter into an agreement with each School Subproject Implementation Entity, under terms and conditions satisfactory to the Bank, substantially in accordance with the terms of the Model PME School Subproject Implementation Agreement, setting forth, inter alia: (i) the terms and conditions for the financing of the PME School Subprojects; and (ii) duly and punctually perform the obligation of the School Subproject Implementation Entity to carry out the PME School Subproject in accordance with the provisions of the Development ContractOperational Manual, Lease Contract the PDE Guidelines and PME Guidelines. (d) The Borrower shall, through SEDUC, prior to submitting the DAWASA Subloan Agreement all its obligations Loan withdrawal application for related expenditures under Part B.2 of the Project, enter into an agreement with each municipality with jurisdiction over the schools participating in Part B.2 of the Project and those serving Quilombola students, under terms and conditions satisfactory to the Bank, substantially in accordance with the terms of the Model Municipality Cooperation Agreement, setting forth, inter alia, the municipality’s obligation: (i) to propose the Municipal Schools that could participate in the Project; and (ii) to cooperate in the execution of the activities included therein in accordance with the provisions of the Operational Manual. (e) The Borrower shall: (i) not later than twenty-four months from the Effective Date, start the construction of Indigenous Schools, mentioned in the Indigenous Peoples and Quilombolas Action Plan, in accordance with the environmental guidelines applicable to school construction in rural areas set forth in the Guarantor’s document, issued by its Minister of Education and Culture, and entitled “Subsidios para a Elaboração de Projetos e Adequação de Edificações Escolares, MEC/Fundescola 2002”; and (ii) ensure that the contractors hired to construct such schools abide by the environmental requirements of such guidelines, and that all works are finalized not later than forty-two months after the Effective Date. (f) The Borrower shall exercise its rights thereunder and carry out its obligations under each of the Subproject Implementation Agreements and Municipality Cooperation Agreements, in such manner as to protect the interests of the Borrower and the Association Bank and to accomplish the purposes of the Credit; Loan, and (iii) cause , except as the Operator Bank shall otherwise agree, the Borrower shall not assign, amend, abrogate, suspend, waive, terminate or fail to carry out its obligations under the Project, Lease Contract and DAWASA Subloan enforce any Subproject Implementation Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practicesor Municipality Cooperation Agreement. (bg) Without limitation upon the provisions of paragraph (a) of this Section and except as above, the Association and DAWASA shall otherwise agree, DAWASA Borrower shall carry out the Project in accordance with: (i) the Performance Indicators; and (ii) the Indigenous Peoples and Quilombolas Action Plan. (h) The Borrower shall, through SEDUC, enter into agreements or make other institutional arrangements with the Implementation Program set forth in Schedule 2 to this AgreementGuarantor’s agencies concerned with Indigenous Peoples and Quilombolas as needed for the implementation of the Indigenous Peoples and Quilombolas Action Plan. Section 2.023.02. Except as the Association Bank shall otherwise agree, procurement of the goods, works and consultants’ ' services required for the Project and to be financed out of the proceeds of the Credit Loan shall be governed by the provisions of Schedule 1 4 to this Agreement. (a) DAWASA , as said provisions may be further elaborated in the Procurement Plan. The Borrower shall carry out or cause to be carried out, update the obligations set forth Procurement Plan in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of this Agreement. (b) For the purposes of Section 9.06 of the General Conditions and without limitation thereto, DAWASA shall, in conjunction accordance with the Borrower: (i) prepare, on the basis of guidelines acceptable to the Association Bank, and furnish such update to the Association Bank not later than six (6) 12 months after the Closing Date or such later date as may be agreed for this purpose among of the Associationpreceding Procurement Plan, the Borrower and DAWASA, a plan for the future operation of the Project designed to ensure its sustainability; and (ii) afford the Association a reasonable opportunity to exchange views with DAWASA and the Borrower on the said planBank’s approval. Section 2.043.03. Without limitation to its obligations under Section 2.01 of this AgreementThe Borrower shall carry out the Project in accordance with an operational manual, DAWASA shall, for the purposes of making available the counterpart contribution satisfactory to the financing of the ProjectBank, said manual to include, inter alia: (a) replenish the procedures for the carrying out, monitoring and evaluation of the Project Account up to (including the initial amount procurement, financial and environmental requirements thereof); (b) the criteria for the approval, implementation and monitoring of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at PME School Subprojects and for the end of each Project Quarter until the completion financing of the Project, or whenever its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000)related Grants; and (c) a model agreement: (i) for implementation of PME School Subprojects; and (ii) for municipal cooperation in the PME School Subprojects carried out in Municipal Schools. In case of any conflict between the terms of the Operational Manual and those of this Agreement, the terms of this Agreement shall prevail. Section 3.04. The Borrower shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with the Performance Indicators, the carrying out of the Project and the achievement of the objectives thereof; (b) ensure that amounts deposited into prepare, under terms of reference satisfactory to the Bank, and furnish to the Bank, not later than twelve months after the Effective Date and yearly thereafter during the period of Project implementation, a report integrating the results of the evaluation activities performed pursuant to paragraph (a) of this Section, on the progress achieved in the carrying out of the Project Account shall be used exclusively during the period preceding the date of such report and setting out the measures recommended to make payments to meet expenditures made or to be made in respect ensure the efficient carrying out of the reasonable cost of goods, works Project and services for the Project in addition to those financed from the proceeds achievement of the Credit.objectives thereof during the period following such date; and (c) (i) review with the Bank, within no more than two months after each such reports’ preparation, the reports referred to in paragraph (b) of this Section and progress in the implementation of the Integrated Development Program; and

Execution of the Project. (a) DAWASA The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit this Agreement, and, to this end, shall: (i) shall carry out the Project with due diligence and efficiency efficiency, in accordance with the Operational Manual, and in conformity with appropriate engineering, administrative, financialroad safety, engineeringmaintenance, environmental, water, sewerage environmental and resettlement financial practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project; (ii) duly and punctually perform in accordance with the provisions of the Development Contract, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Association Bank and DAWASA the Borrower shall otherwise agree, DAWASA the Borrower shall carry out the Project in accordance with the Implementation Program set forth in Schedule 2 6 to this Agreement. Section 2.02. (c) Without limitation to the foregoing, the Borrower shall select the specific Subprojects to be financed with the proceeds of the Loan and carry out its road rehabilitation and maintenance activities in accordance with the criteria and requirements set forth in the Operational Manual. (a) Except as the Association Bank shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Credit Loan shall be governed by the provisions of Schedule 1 4 to this Agreement. (a) DAWASA shall carry out or cause to be carried out, the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of this Agreement. (b) For Standard bidding documents and letters of invitation satisfactory to the purposes Bank shall be utilized in the procurement of Section 9.06 goods, works and consultant’s services (as applicable) required for the Project and to be financed out of the General Conditions and without limitation thereto, DAWASA shall, in conjunction with the Borrower: (i) prepare, on the basis of guidelines acceptable to the Association and furnish to the Association not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose among the Association, the Borrower and DAWASA, a plan for the future operation proceeds of the Project designed to ensure its sustainability; and (ii) afford the Association a reasonable opportunity to exchange views with DAWASA and the Borrower on the said planLoan. Section 2.043.03. Without limitation The Borrower shall provide, promptly as needed, all the funds, facilities, staff and resources required by the PMU to carry out its obligations under functions and responsibilities in a timely and efficient manner. Section 2.01 of this Agreement3.04. The Borrower, DAWASA through DER, shall, for the purposes of making available the counterpart contribution to the financing of the Project: (a) replenish prepare annual and pluriannual expenditure and funding programs for road investments and routine maintenance in accordance with the Project Account up policies and economic criteria set forth in the Operational Manual; (b) not later than July 31 each year, furnish such programs to the initial amount of seven hundred fifty Bank for comments; (c) take into account the Bank’s comments when preparing its annual budget; and (d) allocate in its yearly budget not less than the equivalent to three million Tanzanian Shillings dollars for paved road routine maintenance activities; and (Tshs 750,000,000e) maintain PMU, at the end of each Project Quarter least until the completion of the Project, or whenever with staffing, responsibilities and functions (including the qualifications and experience of its balance manager) satisfactory to the Bank; Section 3.05. The Borrower, through DER, shall select the road segments to be included in its annual rehabilitation and resurfacing programs (including the Subprojects) on the basis of: (a) network maintenance strategy and pluriannual programs, (periodically updated and refined consistently with the development of the Pavement Management System), satisfactory to the Bank; (b) funding expectations for the given year; and (c) appropriate technical and economic criteria and methodologies as set forth in the Operational Manual. Section 3.06. Prior to initiating detailed engineering designs of each Subproject, the Borrower, through DER, shall prepare and submit to the Bank, with copy to DNER, a draft financing application (of such form and detail as the Bank shall reasonably request) providing information on: (a) the analysis carried out and the rationale for selection; (b) the road condition and traffic data; (c) the diagnostic of the problems and the recommended engineering solution; (d) the estimated cost of works; (e) the result of a preliminary economic evaluation; (f) the proposed implementation schedule, all as specified in the Operational Manual; and (g) such other matters as the Bank shall reasonably request, provided, however, that all recommended engineering solutions shall be less consistent with a policy, satisfactory to the Bank, selected by the Borrower for the network-level analysis of road rehabilitation and resurfacing programs as a whole, including the timing of the investment. Section 3.07. When presenting a Subproject to the Bank for approval, the Borrower, through DER, shall furnish to the Bank an application, in form and substance satisfactory to the Bank, which shall: (a) update the information provided to the Bank pursuant to Section 3.06 of this Agreement on the basis of the Bank’s comments thereon and the final engineering designs; and (b) contain such other information as the Bank shall reasonably request in respect of such Subproject. Section 3.08. In carrying out the training programs included under the Project, the Borrower, through DER, shall: (a) furnish to the Bank for approval the content of such programs as well as the schedule for their implementation; (b) select the beneficiaries of such training programs in accordance with criteria satisfactory to the Bank; (c) not later than two hundred fifty million Tanzanian Shillings October 31 of each year during the execution of the Project, exchange views with the Bank on the training programs to be carried out in the following calendar year; (Tshs 250,000,000)d) furnish to the Bank a report of such scope and detail as the Bank shall reasonably request, on the results of each of such training programs and the benefits to be derived therefrom. (e) consult with DNER on the design and execution of such training programs and selection of beneficiaries thereunder; and (f) furnish to DNER copies of any reports sent to the Bank pursuant to paragraph (d) of this Section. (a) Not later than June 30, 1993, the Borrower, through DER, shall, under terms of reference satisfactory to the Bank, prepare and present to the Bank, for comments, a detailed action plan (the Pavement Management System Plan) including a timetable, to develop and implement a pavement management system, aimed at improving the planning and monitoring of paved road network maintenance strategies and programs. Such action plan shall provide for the development and operation of a computerized road database, the strengthening of DER’s procedures and techniques used for pavement condition and traffic surveys, pavement diagnostics and designs, cost-benefit analyses and programming, and for the improved integration of these activities. (b) ensure that amounts deposited Taking into account the Project Account Bank’s comments on the Pavement Management System Plan, the Borrower shall promptly start the implementation of such plan, which shall be used exclusively to make payments to meet expenditures made or to be made in respect of the reasonable cost of goodscompleted not later than September 30, works and services for the Project in addition to those financed from the proceeds of the Credit1994.

Execution of the Project. (a) DAWASA The Recipient declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit this Agreement, and, to this end, shall: : (i) carry out the Project through the Ministry of Environment with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage administrative and resettlement practices, financial practices and shall with due regard to ecological and environ- mental factors; (ii) maintain in real terms the current level of funding from its own resources for biodiversity protection activi- ties in the Project Area; and (iii) provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project; (ii) duly and punctually perform in accordance with the provisions of the Development Contract, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) The Recipient shall make available the equivalent of $300,000 of the Grant to the Foundation for purposes of supporting its activities under terms and conditions which shall have been approved by the Trustee. (c) Without limitation upon the provisions of paragraph (a) of this Section and except as the Association Recipient and DAWASA the Trustee shall otherwise agree, DAWASA the Recipient shall carry out the Project in accordance with the Implementation Program set forth in Schedule 2 4 to this Agreement. Section 2.023.02. The Recipient shall maintain the PMCU within the Ministry of Environment, under terms of reference satisfactory to the Trustee, with qualified and experienced staff in adequate numbers, under the supervision of a Project coordinator, whose qualifications and experience shall be satisfactory to the Trustee. Section 3.03. The Recipient shall, by October 31, 1993, make appropriate administrative and financial arrangements for carrying out Project activities at the Tatras National Park. Section 3.04. The Recipient shall, by October 31, 1993, establish a Joint Scientific Advisory Committee in each Biodiversity Zone, under terms of reference satisfactory to the Trustee, com- prised of members whose qualifications and experience are satis- factory to the Trustee, to meet and review on a semi-annual basis the scientific progress of Project implementation in the respective Biodiversity Zone. Section 3.05. The Recipient shall ensure that Project activities are carried out only on land owned by the Recipient or on land to which the Recipient has rights under long-term contractual arrangements consistent with the objectives of the Project. Section 3.06. Except as the Association Trustee shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Credit GET Grant shall be governed by the provisions of Schedule 1 3 to this Agreement. (a) DAWASA shall carry out or cause to be carried out, the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of this Agreement. (b) For the purposes of Section 9.06 of the General Conditions and without limitation thereto, DAWASA shall, in conjunction with the Borrower: (i) prepare, on the basis of guidelines acceptable to the Association and furnish to the Association not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose among the Association, the Borrower and DAWASA, a plan for the future operation of the Project designed to ensure its sustainability; and (ii) afford the Association a reasonable opportunity to exchange views with DAWASA and the Borrower on the said plan. Section 2.04. Without limitation to its obligations under Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the Project: (a) replenish the Project Account up to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion of the Project, or whenever its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and (b) 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.

Execution of the Project. (a) DAWASA SLRA declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit Agreement, and, to this end, shall: (i) shall carry out the Project with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage engineering and resettlement public utility practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project;. (b) SLRA shall open and thereafter maintain in the name of SLRA at a commercial bank: (i) a Project Account (the Project Account) into which shall be deposited all counterpart contributions which SLRA, the Borrower and any other contributors are required to make to the costs of the Project, and which shall be used exclusively for expenditures to be made under the Project; (ii) duly a Road Fund Account (the Road Fund Account) into which shall be deposited revenues from the Road Fund to SLRA and punctually perform in accordance with the provisions of the Development Contract, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and which shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish be used exclusively for the purposes of specified in the CreditSLRA Act; and (iii) cause an SLRA Account (the Operator SLRA Account) into which shall be deposited all other funds accruing to carry out its obligations under SLRA and which shall be used exclusively to meet expenditures not covered by the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practicesProject Account. (bc) Without limitation upon SLRA shall, by March 31, 1993, establish and thereafter maintain in a form and with functions and staffing satisfactory to the provisions Association, a Project Coordinating Team to be headed by the Director General of paragraph SLRA. The Project Coordinating Team shall oversee the carrying out of the Project. (ad) SLRA shall employ and assign to the Project Coordinating Team a project coordinator, engineering consultants and other key staff, all of this Section whom shall be appointed on terms and except as conditions satisfactory to the Association and DAWASA shall otherwise agree, DAWASA Association. (e) SLRA shall carry out the transport sector components of the Project through the Department of Transport, Communications and Tourism and the Department of Works. SLRA shall however be responsible for coordinating Project activities relating to the said components. (f) SLRA shall carry out: (i) the non-motorized transport components included in accordance Part C of the Project under an agreement between SLRA and the Principal Implementing NGO satisfactory to the Association; and (ii) the local training components included in Part A of the Project under an agreement between SLRA and each of two local training institutions satisfactory to the Association. (g) SLRA shall: (i) carry out, in consultation with the Implementation Program set forth Freetown City Council, the road improvement works to be carried out in Schedule 2 the Freetown central business district under Part A (2) of the Project; and (ii) provide the Council, to this Agreementthe extent practicable, with such assistance as it may require in the establishment of a road maintenance unit for the City of Freetown. Section 2.02. Except as the Association shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Credit shall be governed by the provisions of Schedule 1 to this Agreement. (a) DAWASA Section 2.03. SLRA shall carry out or cause to be carried out, the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of this Agreement. (b) For the purposes of Section 9.06 of the General Conditions and without limitation thereto, DAWASA shall, in conjunction with the Borrower: (i) prepare, on the basis of guidelines acceptable to the Association and furnish to the Association not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose among the Association, the Borrower and DAWASA, a plan for the future operation of the Project designed to ensure its sustainability; and (ii) afford the Association a reasonable opportunity to exchange views with DAWASA and the Borrower on the said planAgreement. Section 2.04. Without limitation to its obligations under Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the Project: (a) replenish SLRA shall, at the Project Account up request of the Association, exchange views with the Association with regard to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion progress of the Project, or whenever the performance of its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and (b) ensure that amounts deposited into obligations under this Agreement and other matters relating to 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 purposes of the Credit.

Execution of the Project. (a) DAWASA The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit this Agreement, and, to this end, shall: (i) shall carry out the Project Project, through SEC, with the assistance of SUCAB in respect of Parts A.6 and B of the Project, all with due diligence and efficiency and in conformity with appropriate administrative, financial, engineeringeducational, environmental, water, sewerage and resettlement environmental practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project; (ii) duly and punctually perform in accordance with the provisions of the Development Contract, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as above, the Association and DAWASA shall otherwise agree, DAWASA Borrower shall carry out the Project in accordance with the Implementation Program PIP, the Performance Indicators, and the Indigenous Peoples Development Plan. (c) For purposes of the carrying out of any School Subproject, the Borrower shall enter into arrangements with a School Subproject Implementing Entity (the School Performance Agreement), substantially in accordance with the model set forth in Schedule 2 the PIP, providing, inter alia, for: (i) the terms and conditions of the transfer of funds (the School Grant) from the Borrower to this Agreementsuch School Subproject Implementing Entity for the financing of the School Subproject; and (ii) the obligation of the School Subproject Implementing Entity to carry out the School Subproject in accordance with the provisions of the PIP and the PDE Guidelines or the Minimum Operational Standards Guidelines, as the case may be. Section 2.023.02. Except as the Association Bank shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Credit Loan shall be governed by the provisions of Schedule 1 4 to this Agreement. Section 3.03. The Borrower shall maintain COPE, throughout Project implementation, with responsibility for the management, monitoring and evaluation of the Project and assisted, for purposes of the Project, by technical and professional staff, including a Project manager, a financial expert and three procurement experts, with qualifications and experience acceptable to the Bank. Section 3.04. The Borrower shall, through SEC, during the execution of the Project: (a) DAWASA shall carry out or cause maintain policies and procedures adequate to be carried outenable it to monitor and evaluate on an ongoing basis and in accordance with the Performance Indicators, the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 carrying out of the General Conditions Project (relating to insurance, use including the School Subprojects) and the achievement of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of this Agreement.its objectives; (b) furnish to the Bank, not later than June 30 and December 31 of each year, commencing June 30, 2004, a progress report on the execution of the Project during the six-month period immediately preceding the date of each such report, said report to be of such scope and detail as the Bank may reasonably request and to include the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section; and (c) review, jointly with the Bank, not later than July 31 and January 31 of each year, commencing July 31, 2004, the progress of the Project in the context of the Integrated Development Program, and the attainment of the Project objectives on the basis of the reports referred to in paragraph (b) of this Section and shall, thereafter, take all measures required to ensure the efficient completion of the Project and the achievement of its objectives, based on the conclusions and recommendations of the said reports, and the Bank's views on the matter. Section 3.05. For the purposes of Section 9.06 9.07 of the General Conditions and without limitation thereto, DAWASA the Borrower shall, in conjunction with the Borrowerthrough SEC: (ia) prepare, on the basis of guidelines acceptable to the Association Bank, and furnish to the Association Bank, not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose among the Association, between the Borrower and DAWASAthe Bank, a plan for the future operation of the Project designed to ensure its sustainabilityProject; and (iib) afford the Association Bank a reasonable opportunity to exchange views with DAWASA and the Borrower on the said plan. Section 2.04. Without limitation to its obligations under Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the Project: (a) replenish the Project Account up to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion of the Project, or whenever its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and (b) 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.

Execution of the Project. (a) DAWASA The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit Agreement, and, to this end, shall: (i) end shall carry out the Project through MED, with the participation of FONCODES in respect of Infrastructure Subprojects pursuant to the FONCODES Agreement, all with due diligence and efficiency and in conformity with appropriate managerial, administrative, financial, engineeringeducation, environmental, water, sewerage social and resettlement environmental practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project; (ii) duly and punctually perform in accordance with the provisions of the Development Contract, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon or restriction to the provisions of paragraph (a) of this Section and except as above, the Association and DAWASA shall otherwise agree, DAWASA Borrower shall carry out the Project in accordance with with: (i) the Implementation Program set forth in Schedule 2 to this AgreementIndigenous Peoples Strategy; and (ii) the Procurement Improvement Action Plans. Section 2.023.02. Except as the Association Bank shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Credit Loan shall be governed by the provisions of Schedule 1 4 to this Agreement. (a) DAWASA shall carry out or cause to be carried outAt all times during the execution of the Project, the obligations set forth in Sections 9.03Borrower (through MED) shall maintain: (i) a Project steering committee with membership structure and responsibilities satisfactory to the Bank, 9.04including the following responsibilities: (A) to review Project implementation reports and audits; and (B) to approve the Operational Manual, 9.05each Annual Operations Plan, 9.06and any modification thereof; and (ii) a Project coordinating unit responsible for overall Project coordination, 9.07 supervision, monitoring and 9.08 of evaluation, including: (A) preparing each Annual Operations Plan; (B) issuing Project implementation guidelines; (C) maintaining the General Conditions Project impact monitoring system; (relating to insurance, use of D) procuring goods and services, plans consultants’ services for the Project; and schedules, records (E) preparing FMRs and reports, maintenance and land acquisition, respectively) in respect of this Agreementprocessing withdrawal applications. (b) The Borrower shall ensure that PCU is staffed, at all times during the execution of the Project, by core professional staff in numbers and with experience and qualifications acceptable to the Bank, operating under terms of reference satisfactory to the Bank, and selected in accordance with competitive and transparent procedures satisfactory to the Bank, all as prescribed in the Operational Manual. Section 3.04. With regard to Part B.3 of the Project, the Borrower (through MED) shall enter into an agreement with FONCODES, under terms and conditions satisfactory to the Bank, for the purposes of ensuring the participation of FONCODES in the implementation of such Part of the Project, said agreement to provide, inter alia: (a) the transfer to FONCODES of the proceeds of the Loan allocated to Category (1) of the table in Part A.1 of Schedule 1 to this Agreement; (b) the obligation of FONCODES to carry out Infrastructure Subprojects in accordance with: (i) the Operational Manual; and (ii) the applicable Annual Operations Plan; and (c) the administration by FONCODES of the FONCODES Special Account in accordance with the provisions of Part B of Schedule 1 to this Agreement. Section 3.05. The Borrower shall exercise its rights and comply with its obligations under the FONCODES Agreement in such a manner as to protect the interests of the Borrower and the Bank and to accomplish the purposes of the Loan and, except as the Bank shall otherwise agree, the Borrower shall not assign, amend, abrogate, waive or fail to enforce the FONCODES Agreement or any provision thereof. (a) The Borrower (through MED) shall carry out the Project in accordance with an operational manual, satisfactory to the Bank, said manual to provide the rules and procedures for the implementation of the Project, in the areas of: (i) Project institutional setup, including organization and functions of PCU; (ii) Disbursement procedures, internal controls, accounting, auditing and reporting procedures; (iii) procurement responsibilities; (iv) monitoring and evaluation plans for the Project; and (v) procedures for identification, preparation, approval, execution and supervision of Infrastructure Subprojects, including environmental assessment procedures and guidelines, and a list of non-eligible civil works. (b) If any provision of the Operational Manual is inconsistent with a provision of this Agreement, the provisions of this Agreement shall govern. (a) The Borrower, through MED, shall: (i) not later than December 15 of each year during Project implementation, furnish to the Bank, for its review and approval, a proposed annual operations plan for the following calendar year, such proposed plan to specify: (A) the activities to be financed out of the proceeds of the Loan during such calendar year, including Infrastructure Subprojects; and (B) the required financial and human resources; and (ii) upon the Bank’s approval, carry out such Annual Operations Plan in accordance with its terms. (b) The Bank may refrain from approving any Annual Operations Plan if the Bank has determined that the Borrower is not carrying out the Project as provided in this Agreement and no appropriate remedial actions, satisfactory to the Bank, have been taken therefore. Section 3.08. The Borrower, through PCU, shall: (a) maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with the Performance Indicators, the carrying out of the Project and the achievement of the objectives thereof; and (b) not later than February 28 and August 30 of each year of Project implementation, starting in August 31, 2004, furnish to the Bank progress reports on the execution of the Project during the preceding calendar semester, of such scope and in such detail as the Bank may reasonably request. Section 3.09. The Borrower, through PCU, shall: (a) not later than September 30 of each year of Project implementation, starting in September 30, 2004, hold a Project annual review with the Bank, such review to be based on the reports referred to in Section 3.08 (b) of this Agreement; (b) if, as a result of any of the above reviews, the Bank shall have reasonably determined that the progress in the execution of the Project or in the achievement of its objectives is not satisfactory, promptly take or cause to be taken all such remedial action, satisfactory to the Bank, as shall be necessary for the efficient execution of the Project or the timely achievement of its objectives. Section 3.10. The Borrower, through PCU, shall: (a) not later than January 31, 2006, carry out an assessment of overall Project impact, such assessment to be conducted with the assistance of independent consultants of experience and qualifications satisfactory to the Bank, operating under terms of reference satisfactory to the Bank; (b) not later than October 31, 2006, furnish to the Bank, for its review and comments, the findings and recommendations of such assessment; and (c) not later than November 30, 2006, discuss the results of such assessment with representatives of DRE, other regional or provincial offices of MED, FONCODES and school networks and schools in the Project Area, taking into account the Bank’s comments thereon. (a) Prior to the approval of any proposed Infrastructure Subproject, the Borrower shall ensure that FONCODES follows the environmental procedures and guidelines set forth in the Operational Manual, in order to: (i) carry out an environmental screening and assessment of such proposed Infrastructure Subproject; and (ii) prepare recommendations for the prevention, mitigation and remediation of any potential environmental damage arising from the implementation of such proposed Infrastructure Subproject. (b) During the implementation of any Infrastructure Subproject, the Borrower shall ensure that FONCODES carries out the recommendations referred to in subparagraph (a) (ii) above as prescribed in the Operational Manual. Section 3.12. For the purposes of Section 9.06 9.07 of the General Conditions and without limitation thereto, DAWASA the Borrower (through MED) shall, in conjunction with the Borrower: (ia) prepare, on the basis of guidelines acceptable to the Association Bank, and furnish to the Association Bank not later than six (6) months after before the Closing Date or such later date as may be agreed for this purpose among the Association, between the Borrower and DAWASAthe Bank, a plan for the future operation continued achievement of the Project designed to ensure its sustainabilityobjectives; and (iib) afford the Association Bank a reasonable opportunity to exchange views with DAWASA and the Borrower on the said plan. Section 2.04. Without limitation to its obligations under Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the Project: (a) replenish the Project Account up to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion of the Project, or whenever its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and (b) 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.

Execution of the Project. (a) DAWASA ODESYPANO declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit Loan Agreement, and, to this end, shall: (i) shall carry out the Project with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, economic, management, technical, environmental, wateragricultural, sewerage land conservation and resettlement consolidation, forestry and water conservation practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project; (ii) duly and punctually perform in accordance with the provisions of the Development Contract, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Association Bank and DAWASA ODESYPANO shall otherwise agree, DAWASA shall ODESYPANO shall: (i) carry out the Project in accordance with the Implementation Program set forth in Schedule 2 to this Agreement, and the provisions of the Procedure Manual and the Environmental Assessment; and (ii) ensure that the carrying out of the Project shall not involve the involuntary resettlement of local population. Section 2.02. Except as the Association Bank shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Credit Loan shall be governed by the provisions of Schedule 1 to this Agreement. (a) DAWASA ODESYPANO shall carry out or cause to be carried out, the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 9.07, 9.08 and 9.08 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of this the Project Agreement. (b) For the purposes of Section 9.06 9.07 of the General Conditions and without limitation thereto, DAWASA ODESYPANO shall, in conjunction with the Borrower: (i) : prepare, on the basis of guidelines acceptable to the Association Bank, and furnish to the Association Bank not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose among between the Association, the Borrower Bank and DAWASAODESYPANO, a plan for the future operation of the Project designed to ensure its sustainabilityProject; and (ii) afford the Association Bank a reasonable opportunity to exchange views with DAWASA and the Borrower ODESYPANO on the said plan; and thereafter carry out said plan with due diligence and efficiency and in accordance with appropriate practices, taking into account the Bank’s comments thereon. Section 2.04. Without limitation to its obligations under Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the Project: (a) replenish the Project Account up to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) ODESYPANO shall, at the end request of each Project Quarter until the completion Bank, exchange views with the Bank with regard to progress of the Project, or whenever the performance of its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and (b) ensure that amounts deposited into obligations under this Agreement and other matters relating to the Project Account shall be used exclusively to make payments to meet expenditures made or to be made in respect purposes of the reasonable cost of goods, works and services for the Project in addition to those financed from the proceeds of the CreditLoan.

Execution of the Project. (a) DAWASA NWSC declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit Agreement, and, to this end, shall: (i) shall carry out the Project with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage engineering and resettlement public utility practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project; (ii) duly and punctually perform in accordance with the provisions of the Development Contract, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Association and DAWASA NWSC shall otherwise agree, DAWASA NWSC shall carry out the Project in accordance with the Implementation Program set forth in Schedule 2 to this AgreementAgreement and with an Operational Action Plan satisfactory to the Association. To that end, NWSC shall: (i) prepare and furnish to the Association annual updates of said Plan; (ii) carry out the programs under said Plan with such changes thereof as the Association and NWSC shall have agreed upon; and (iii) keep the Association informed of the progress of the implementation of said Plan. Section 2.02. Except as the Association shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Credit shall be governed by the provisions of Schedule 1 to this Agreement. (a) DAWASA Section 2.03. NWSC shall carry out or cause to be carried out, the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of this Agreement. (b) For the purposes of Section 9.06 of the General Conditions and without limitation thereto, DAWASA shall, in conjunction with the Borrower: (i) prepare, on the basis of guidelines acceptable to the Association and furnish to the Association not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose among the Association, the Borrower and DAWASA, a plan for the future operation of the Project designed to ensure its sustainability; and (ii) afford the Association a reasonable opportunity to exchange views with DAWASA and the Borrower on the said planAgreement. Section 2.04. Without limitation to NWSC shall duly perform all its obligations under the Subsidiary Loan Agreement. Except as the Association shall otherwise agree, NWSC shall not take or concur in any action which would have the effect of amending, abrogating, assigning or waiving the Subsidiary Loan Agreement or any provision thereof. Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the Project: 2.05. (a) replenish NWSC shall, at the Project Account up request of the Association, exchange views with the Association with regard to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion progress of the Project, or whenever the performance of its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and (b) ensure that amounts deposited into obligations under this Agreement and under the Project Account shall be used exclusively Subsidiary Loan Agreement, and other matters relating 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 purposes of the Credit.

Execution of the Project. (a) DAWASA Odesa declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit Loan Agreement, and, to this end, shall: (i) shall carry out Part A.2 of the Project with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage financial and resettlement engineering practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project; (ii) duly and punctually perform in accordance with the provisions of the Development Contract, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Association Bank and DAWASA Odesa shall otherwise agree, DAWASA Odesa shall: (i) establish and maintain, until the completion of the Project, a city executing unit (CEU) and ensure that the CEU functions at all times in accordance with procedures satisfactory to the Bank, and is at all times staffed by personnel with qualifications, terms of reference and experience satisfactory to the Bank; (ii) by December 31, 1996, prepare a marketing and sales plan, satisfactory to the Bank, for the sale of residential buildings completed under Part A.2 of the Project, which plan shall carry out include provisions related to the method and administration of sales, through an open auction, advertisement procedures, documen- tation, and contracting provisions; (iii) offer for sale through an open auction all residential buildings completed under Part A.2 of the Project in accordance with the Implementation Program set forth plan referred to in Schedule 2 sub-paragraph (ii) of this paragraph; (iv) auction land in accordance with the provisions of the Odesa Subsidiary Loan Agreement; (v) ensure that its activities in the residential con- struction area are consistent with the State Housing Policy concept, adopted by the Borrower on June 30, 1995, in order to this xxxxxx competitive conditions in the housing market in Odesa; and (vi) assist the Borrower to carry out the Land and Building Regulations Study referred to in Section 3.02 (a) of the Loan Agreement. Section 2.02. Except as the Association Bank shall otherwise agree, procurement pro- curement of the goods, works and consultants’ services required for Part A.2 of the Project and to be financed out of the proceeds of the Credit Loan shall be governed by the provisions of the Schedule 1 to this Agreement. (a) DAWASA Section 2.03. Odesa shall carry out or cause to be carried out, the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 9.07, 9.08 and 9.08 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of this Agreement. (b) For the purposes of Section 9.06 Odesa Project Agreement and Part A.2 of the General Conditions and without limitation thereto, DAWASA shall, in conjunction with the Borrower: (i) prepare, on the basis of guidelines acceptable to the Association and furnish to the Association not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose among the Association, the Borrower and DAWASA, a plan for the future operation of the Project designed to ensure its sustainability; and (ii) afford the Association a reasonable opportunity to exchange views with DAWASA and the Borrower on the said planProject. Section 2.04. Without limitation to Odesa shall duly perform all its obligations under the Odesa Subsidiary Loan Agreement. Except as the Bank shall other- wise agree, Odesa shall not take or concur in any action which would have the effect of amending, abrogating, assigning or waiving the Odesa Subsidiary Loan Agreement or any provision thereof. Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the Project: 2.05. (a) replenish the Project Account up to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) Odesa shall, at the end request of each Project Quarter until the completion Bank, exchange views with the Bank with regard to progress of the Project, or whenever the performance of its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and (b) ensure that amounts deposited into obligations under this Agreement and under the Project Account shall be used exclusively Odesa Subsidiary Loan Agreement, and other matters relating to make payments to meet expenditures made or to be made in respect the purposes of the reasonable cost of goods, works and services for the Project in addition to those financed from the proceeds of the CreditLoan.

Execution of the Project. (a) DAWASA declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit Agreement, and, to this end, shall: (i) Section 3.01. The Recipient shall carry out the Project with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage financial and resettlement engineering practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project; (ii) duly and punctually perform in accordance with the provisions of the Development Contract, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Association and DAWASA shall otherwise agree, DAWASA shall carry out the Project in accordance with the Implementation Program set forth in Schedule 2 to this Agreement. Section 2.023.02. Except as the Association Administrator shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Credit Grant shall be governed by the provisions of Schedule 1 3 to this Agreement. (a) DAWASA The Recipient shall carry out maintain, or cause to be carried out, the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedulesmaintained, records and reportsaccounts adequate to reflect in accordance with sound accounting practices the operations, maintenance resources and land acquisition, respectively) expenditures in respect of this Agreementthe Project of the departments or agencies of the Recipient responsible for carrying out the Project or any part thereof. (b) For the purposes of Section 9.06 of the General Conditions and without limitation thereto, DAWASA The Recipient shall, in conjunction with the Borrower: (i) preparehave the records and accounts referred to in paragraph (a) of this Section for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Administrator; (ii) furnish to the Administrator as soon as available, but in any case not later than six months after the end of each such year, the report of such audit by said auditors, of such scope and in such detail as the Administrator shall have reasonably requested; and (iii) furnish to the Administrator such other information concerning said records and accounts and the audit thereof as the Administrator shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Account were made on the basis of guidelines acceptable statements of expenditure, the Recipient shall: (i) maintain, or cause to the Association be maintained, in accordance with paragraph (a) of this Section, records and furnish to the Association not later than six accounts reflecting such expenditures; (6ii) months retain, until at least one year after the Closing Date or such later date as may be agreed for this purpose among Administrator has received the Association, the Borrower and DAWASA, a plan audit for the future operation of fiscal year in which the Project designed last withdrawal from the Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Administrator’s representatives to ensure its sustainabilityexamine such records; and (iiiv) afford ensure that such records and accounts are included in the Association a reasonable opportunity annual audit referred to exchange views with DAWASA and the Borrower on the said plan. Section 2.04. Without limitation to its obligations under Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the Project: (a) replenish the Project Account up to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion of the Project, or whenever its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and in paragraph (b) ensure of this Section and that amounts deposited into the Project Account shall report of such audit contains a separate opinion by said auditors as to whether the statements of expenditure submitted during such fiscal year, together with the procedures and internal controls involved in their preparation, can be used exclusively relied upon to make payments to meet expenditures made or to be made in respect of support the reasonable cost of goods, works and services for the Project in addition to those financed from the proceeds of the Creditrelated withdrawals.

Execution of the Project. (a) DAWASA SALWACO declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit Agreement, and, to this end, shall: (i) end it shall carry out Part B.1 of the Project and assist in the carrying out of Parts B.2 and B.3 of the Project, with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage engineering and resettlement public utility practices, and shall provide, provide or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the carrying out of Part B of the Project; (ii) duly and punctually perform in accordance with the provisions of the Development Contract, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Association and DAWASA SALWACO shall otherwise agree, DAWASA SALWACO shall carry out Part B.1 and assist in the carrying out of Parts B.2 and B.3 of the Project in accordance with the Implementation Program set forth in Schedule 2 4 to this the Development Credit Agreement, including the monitoring and reporting obligations set forth therein; (c) For the purpose of carrying out: (i) Part B.2 (a) of the Project, SALWACO shall enter into a subsidiary agreement satisfactory to the Association with the Ministry of Youth and Sports (the SALWACO-MYS Agreement), such subsidiary agreement to include that SALWACO will assist MYS in the carrying out of such Part of the Project with respect to financial management, including management of funds, and procurement requirements. (ii) Part B.3 of Project, the SALWACO shall enter through a subsidiary agreement with GVWC under terms and conditions which shall have been approved by the Association (the SALWACO-GVWC Agreement), such subsidiary agreement to include that SALWACO will assist GVWC the Project with respect to financial management, including management of funds, and procurement requirements. (d) SALWACO shall exercise its rights under the SALWACO-MYS Agreement and the SALWACO-GVWC Agreement in such manner as to protect the interests of the Borrower and the Association and to accomplish the purposes of the Credit, and, except as the Association shall otherwise agree, SALWACO shall not assign, amend, abrogate or waive the SALWACO-MYS Agreement and the SALWACO-GVWC Agreement or any provision thereof. Section 2.02. Except as the Association shall otherwise agree, procurement of the goods, works and consultants’ services required for Part B of the Project and to be financed out of the proceeds of the Credit shall be governed by the provisions of Schedule 1 to this the Development Credit Agreement. Section 2.03. (a) DAWASA SALWACO shall carry out or cause to be carried out, the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of this Agreement. (b) For the purposes of Section 9.06 of the General Conditions and without limitation thereto, DAWASA shall, in conjunction with the Borrower: (i) prepare, on the basis of guidelines acceptable to the Association and furnish to the Association not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose among the Association, the Borrower and DAWASA, a plan for the future operation of the Project designed to ensure its sustainability; and (ii) afford the Association a reasonable opportunity to exchange views with DAWASA Agreement and the Borrower on the said plan. Section 2.04. Without limitation to its obligations under Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the Project: (a) replenish the Project Account up to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion Part B of the Project, or whenever its balance shall as said provisions may be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and (b) ensure that amounts deposited into further elaborated in 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 CreditProcurement Plan.

Execution of the Project. (a) DAWASA The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit this Agreement, and, and to this end, shall: shall carry out: (i) carry out Part A of the Project through the MOF and MCI, acting jointly in conjunction with UDKR; (ii) Parts B.1 and B.2 of the Project through the MOF, acting jointly in conjunction with UDKR and Donetsk Oblast; (iii) Parts B.3 and C of the Project through the MOF and MCI, acting jointly in conjunction with Donetsk Oblast and the Participating Cities; (iv) Part D of the Project through the MOF, acting jointly in conjunction with UDKR; and (v) Part E of the Project through the MOF and MCI, acting jointly in conjunction with UDKR; all with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmentallabor, water, sewerage social and resettlement environmental practices, ; and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project;. (iib) duly Without limitation or restriction upon any of its other obligations under the Loan Agreement, the Borrower shall cause UDKR and punctually Donetsk Oblast to perform in accordance with the provisions of the Development Contract, Lease Contract UDKR Project Agreement and the DAWASA Subloan Agreement Donetsk Oblast Project Agreement, respectively, all its the obligations of UDKR and Donetsk Oblast therein set forth, shall take or cause to be taken the actions provided for in the Implementation Program set forth in Schedule 5 to this Agreement, and all other action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable UDKR and Donetsk Oblast to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (c) The Borrower shall make available the equivalent of the proceeds of the Loan allocated from time to time to Categories (1), (2), (3), (4), (5), (9) and (10) of Schedule 1 of this Agreement to UDKR under a subsidiary agreement (UDKR Subsidiary Agreement) to be entered into between the Borrower and UDKR, under terms and conditions which shall have been approved by the Bank, and which shall include provisions related to UDKR’s responsibilities under Parts A, B.1, B.2, D and E of the Project, budget, staffing, and procedures to be followed in implementing mine closures, including requirements with respect to the carrying out by UDKR of the Mine Closure Plans. (d) The Borrower shall make available the equivalent of the proceeds of the Loan allocated from time to time to Categories (7) and (8) of Schedule 1 to this Agreement, to Donetsk Oblast under a subsidiary agreement (Donetsk Oblast Subsidiary Agreement) to be entered into between the Borrower and Donetsk Oblast, under terms and conditions which shall have been approved by the Bank, and which shall include provisions related to the ownership of and operational responsibility for social assets divested under Part C of the Project, the contribution by Donetsk Oblast of the funds, facilities, services and other resources necessary for Parts B and C of the Project, and accounting, auditing and record keeping requirements. (e) The Borrower shall, for the purposes of carrying out Part B.2 of the Project, and except as the Bank and the Borrower shall otherwise agree: (i) select an agent (the Fiscal Agent) in accordance with the criteria and procedures set forth or referred to in paragraph 3 (c) of Part B of Schedule 5 to this Agreement; (ii) enter into a fiscal agency agreement (the Fiscal Agency Agreement) with the Fiscal Agent, setting forth the terms and conditions under which the corresponding amounts of credit shall be made available to such Fiscal Agent for the purposes of financing the micro-credit facility referred to in Part B.2 of Schedule 2 to this Agreement, and other provisions satisfactory to the Bank, and which shall include, without limitation, provisions related to the Fiscal Agent’s scope of responsibilities and fees; and (iii) relend in accordance with the Fiscal Agency Agreement, the equivalent of the proceeds of the Loan allocated from time to time to Category (6) of Schedule 1 to this Agreement, to qualified sub-borrowers (Sub-borrowers) selected in accordance with the procedures and on the terms and conditions set forth or referred to in paragraph 3 (a) of Part B of Schedule 5 to this Agreement. (f) The Borrower shall exercise its rights thereunder under the UDKR Subsidiary Agreement and the Donetsk Oblast Subsidiary Agreement in such manner as to protect the interests of the Borrower and the Association Bank and to accomplish the purposes of the Credit; Loan, and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Association and DAWASA Bank shall otherwise agree, DAWASA the Borrower shall carry out not assign, amend, abrogate or waive the Project in accordance with UDKR Subsidiary Agreement or the Implementation Program set forth in Schedule 2 to this AgreementDonetsk Oblast Subsidiary Agreement or any provision thereof. Section 2.023.02. Except as the Association Bank shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Credit Loan shall be governed by the provisions of Schedule 1 4 to this Agreement. Section 3.03. For the purposes of Section 9.07 of the General Conditions and without limitation thereto, the Borrower shall: (a) DAWASA shall carry out prepare, on the basis of guidelines acceptable to the Bank, and furnish to the Bank not later than six (6) months after the Closing Date or cause such later date as may be agreed for this purpose between the Borrower and the Bank, a plan with respect to be carried out, any facilities financed pursuant to the Project and remaining in the Borrower’s ownership and control for the future maintenance and operation of such facilities; and (b) afford the Bank a reasonable opportunity to exchange views with the Borrower on said plan. Section 3.04. The Bank and the Borrower hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 9.07, 9.08 and 9.08 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of: (a) Parts X, X.0, X.0, X and E of this the Project, shall be carried out by UDKR pursuant to Section 2.03 of the UDKR Project Agreement; and (b) Parts B.3 and C of the Project, shall be carried out by Donetsk Oblast pursuant to Section 2.02 of the Donetsk Oblast Project Agreement. (b) For the purposes of Section 9.06 of the General Conditions and without limitation thereto, DAWASA 3.05. The Borrower shall, in conjunction with the Borrower: (i) prepare, on the basis of guidelines acceptable to the Association and furnish to the Association not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose among the Association, the Borrower and DAWASA, a plan for the future operation of the Project designed to ensure its sustainability; and (ii) afford the Association a reasonable opportunity to exchange views with DAWASA and the Borrower on the said plan. Section 2.04. Without limitation to its obligations under Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the Project: (a) replenish maintain policies and procedures adequate to enable it to monitor and evaluate on an ongoing basis, in accordance with indicators satisfactory to the Bank, the carrying out of the Project Account up and the achievement of the objectives thereof; (b) prepare, under terms of reference satisfactory to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at Bank, and furnish to the end of each Project Quarter until Bank, on or about June 1, 1997, June 1, 1998, and June 1, 1999, respectively, an annual report integrating the completion results of the Projectmonitoring and evaluation activities performed pursuant to paragraph (a) of this Section, or whenever its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000)on the progress achieved in the carrying out of the Project during the period preceding the date of said report and setting out the measures recommended to ensure the efficient carrying out of the Project and the achievement of the objectives thereof during the period following such date; and (c) review with the Bank, by July 15, 1997, July 15, 1998, and July 15, 1999, respectively, or such later dates as the Bank shall request, the reports referred to in paragraph (b) of this Section, and, thereafter, take all measures required to ensure that amounts deposited into the efficient completion of the Project Account shall be used exclusively to make payments to meet expenditures made or to be made in respect and the achievement of the reasonable cost of goodsobjectives thereof, works based on the conclusions and services for the Project in addition to those financed from the proceeds recommendations of the Creditsaid report and the Bank’s views on the matter.

Execution of the Project. (a) DAWASA PGE declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit Agreement, Agreement and, to this end, shall: (i) shall carry out the Project with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage engineering and resettlement procurement practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project; (ii) duly and punctually perform in accordance with the provisions of the Development Contract, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Association and DAWASA PGE shall otherwise agree, DAWASA PGE shall carry out the Project in accordance with the Implementation Program set forth in Schedule 2 to this Agreement. (c) PGE shall continue to maintain the Program Management Unit (PMU) established and operating in PGE’s Department of Economic Development and Cooperation with functions and an adequate number of professionally qualified key staff satisfactory to the Association. (d) PGE shall maintain, until completion of the Project, the Steering Committee chaired by Secretary, Department of Economic Development and Cooperation, which shall be responsible for the general oversight of the Project. The Steering Committee shall include the Secretary of Finance and the Head of PMU. (e) PGE shall continue to maintain the Community Rehabilitation Fund Unit (CRFU) established and operating in PGE’s Office of Local Government in the Office of the Secretary General with functions and an adequate number of professionally qualified key staff satisfactory to the Association. Section 2.02. Except as the Association shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Credit shall be governed by the provisions of Schedule 1 to this Agreement. (a) DAWASA Section 2.03. PGE shall carry out or cause to be carried out, the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.03 through 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of this Agreement. (b) For the purposes of Section 9.06 of the General Conditions and without limitation thereto, DAWASA shall, in conjunction with the Borrower: (i) prepare, on the basis of guidelines acceptable to the Association and furnish to the Association not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose among the Association, the Borrower and DAWASA, a plan for the future operation of the Project designed to ensure its sustainability; and (ii) afford the Association a reasonable opportunity to exchange views with DAWASA and the Borrower on the said planAgreement. Section 2.04. Without limitation to PGE shall duly perform all its obligations under the Subsidiary Loan Agreement. Except as the Association shall otherwise agree, PGE shall not take or concur in any action which would have the effect of amending, abrogating, assigning or waiving the Subsidiary Loan Agreement or any provision thereof. Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the Project: 2.05. (a) replenish PGE shall, at the Project Account up request of the Association, exchange views with the Association with regard to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion progress of the Project, or whenever the performance of its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and (b) ensure that amounts deposited into obligations under this Agreement and under the Project Account shall be used exclusively Subsidiary Loan Agreement, and other matters relating 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 purposes of the Credit.

Execution of the Project. (a) DAWASA Section 2.01. CVDB declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit Loan Agreement, and, to this end, shall: (i) shall carry out Parts B and C (2) of the Project with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement environmental practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project; (ii) duly and punctually perform in accordance with the provisions of the Development Contract, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Association and DAWASA shall otherwise agree, DAWASA shall carry out the Project in accordance with the Implementation Program set forth in Schedule 2 to this Agreement. Section 2.02. Except as the Association Bank shall otherwise agree, procurement of the goods, works and consultants’ services required for Parts B and C (2) of the Project and to be financed out of the proceeds of the Credit Loan shall be governed by the provisions of Schedule 1 4 to this the Loan Agreement. (a) DAWASA Section 2.03. CVDB shall carry out duly perform all its obligations under the Subsidiary Finance Agreement. Except as the Bank shall otherwise agree, CVDB shall not take or cause to be carried outconcur in any action which would have the effect of assigning, amending, abrogating or waiving the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 Subsidiary Finance Agreement or any provision thereof. Section 2.04. For the purpose of ensuring the proper supervision of the General Conditions execution of Parts B and C (relating 2) of the Project, CVDB shall maintain its PMU, with organization, staffing and terms of reference satisfactory to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of this Agreementthe Bank. Section 2.05. CVDB shall implement Parts B and C (b2) For the purposes of Section 9.06 of the General Conditions and without limitation thereto, DAWASA shall, Project in conjunction accordance with the BorrowerOperations Manual, and in particular, shall: (i) prepareensure that Subprojects are appraised in accordance with the Operations Manual; (ii) ensure that land is acquired for the construction of new buildings under the Project; (iii) ensure that easements and rights of way exist for all roads and pipelines to be constructed under Part B of the Project; (iv) ensure that Subprojects will not require any involuntary relocation; (v) prepare summary environmental assessments, on the basis of guidelines acceptable satisfactory to the Association and Bank, identifying any potential adverse environmental effects that might result from proposed Subprojects; (vi) furnish to the Association not later than six (6) months after the Closing Date Bank for its approval proposed Subprojects estimated to cost $700,000 or such later date as may be agreed for this purpose among the Association, the Borrower and DAWASA, a plan for the future operation of the Project designed to ensure its sustainabilitymore; and (iivii) afford carry out Subprojects as appraised, including measures to screen and mitigate any adverse environmental effects. Section 2.06. (a) CVDB shall, at the Association a reasonable opportunity to request of the Bank, exchange views with DAWASA and the Borrower on the said plan. Section 2.04. Without limitation to its obligations under Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution Bank with regard to the financing progress of the Project: Parts B and C (a2) replenish the Project Account up to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion of the Project, or whenever the performance of its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and (b) ensure that amounts deposited into obligations under this Agreement and under the Project Account shall be used exclusively Subsidiary Finance Agreement, and other matters relating to make payments to meet expenditures made or to be made in respect the purposes of the reasonable cost of goods, works and services for the Project in addition to those financed from the proceeds of the CreditLoan.

Execution of the Project. (a) DAWASA The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit this Agreement, and, to this end, shall: (i) shall carry out the Project through RDMID with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmentalpublic utility, water, sewerage and resettlement environmental practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project; (ii) duly and punctually perform in accordance with the provisions of the Development Contract, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) . Without limitation upon the provisions of paragraph (a) of this Section and except as the Borrower and the Association and DAWASA shall otherwise agree, DAWASA the Borrower shall cause RDMID to carry out the Project in accordance with the Implementation Program and Environmental Management Plan set forth in Schedule 2 to this Agreement. Section 2.02. Except as the Association shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Credit shall be governed by the provisions of Schedule 1 4 to this Agreement. (a) DAWASA The Borrower shall carry out or cause relend the proceeds of the Credit to RDMID under a subsidiary loan agreement to be carried outentered into between the Borrower and RDMID, under the obligations set forth in Sections 9.03same terms and conditions as the Credit, 9.04which shall have been approved by the Association, 9.05, 9.06, 9.07 and 9.08 shall include: (i) the principal amount of the General Conditions Subsidiary Loan shall be repaid by RDMID to the Borrower in equal semi-annual installments over forty (relating to insurance40) years, use including a grace period of goods and servicesten (10) years; (ii) the principal amount of the Subsidiary Loan repayable by RDMID shall be the equivalent in GEL (determined as of the date, plans and schedulesor respective dates, records and reports, maintenance and land acquisition, respectivelyof repayment) of the value of the currency or currencies withdrawn from the Credit Account in respect of the above-mentioned Categories; (iii) interest shall be charged on the principal amount of the Subsidiary Loan withdrawn and outstanding from time to time at a rate equivalent to the rate payable by the Borrower to the Association according to the provisions of Sections 2.04 and 2.05 of this Agreement. (b) For The Borrower shall exercise its rights under the Subsidiary Loan Agreement in such manner as to protect the interests of the Borrower and the Association and to accomplish the purposes of Section 9.06 of the General Conditions and without limitation theretoCredit, DAWASA shalland, in conjunction with the Borrower: (i) prepare, on the basis of guidelines acceptable to except as the Association and furnish to the Association not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose among the Associationshall otherwise agree, the Borrower and DAWASAshall not assign, a plan for amend, abrogate or waive the future operation of the Project designed to ensure its sustainability; and (ii) afford the Association a reasonable opportunity to exchange views with DAWASA and the Borrower on the said planSubsidiary Loan Agreement or any provision thereof. Section 2.04. Without limitation to its obligations under Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the Project: (a) replenish the Project Account up to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion of the Project, or whenever its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and (b) 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.

Execution of the Project. (a) DAWASA The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit this Agreement, and, to this end, shall: (i) shall carry out the Project Project, through SEC, with the assistance of SUCAB in respect of Parts A.6 and B of the Project, all with due diligence and efficiency and in conformity with appropriate administrative, financial, engineeringeducational, environmental, water, sewerage and resettlement environmental practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project; (ii) duly and punctually perform in accordance with the provisions of the Development Contract, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as above, the Association and DAWASA shall otherwise agree, DAWASA Borrower shall carry out the Project in accordance with the Implementation Program PIP, the Performance Indicators, and the Indigenous Peoples Development Plan. (c) For purposes of the carrying out of any School Subproject, the Borrower shall enter into arrangements with a School Subproject Implementing Entity (the School Performance Agreement), substantially in accordance with the model set forth in Schedule 2 the PIP, providing, inter alia, for: (i) the terms and conditions of the transfer of funds (the School Grant) from the Borrower to this Agreementsuch School Subproject Implementing Entity for the financing of the School Subproject; and (ii) the obligation of the School Subproject Implementing Entity to carry out the School Subproject in accordance with the provisions of the PIP and the PDE Guidelines or the Minimum Operational Standards Guidelines, as the case may be. Section 2.023.02. Except as the Association Bank shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Credit Loan shall be governed by the provisions of Schedule 1 4 to this Agreement. Section 3.03. The Borrower shall maintain COPE, throughout Project implementation, with responsibility for the management, monitoring and evaluation of the Project and assisted, for purposes of the Project, by technical and professional staff, including a Project manager, a financial expert and three procurement experts, with qualifications and experience acceptable to the Bank. Section 3.04. The Borrower shall, through SEC, during the execution of the Project: (a) DAWASA shall carry out or cause maintain policies and procedures adequate to be carried outenable it to monitor and evaluate on an ongoing basis and in accordance with the Performance Indicators, the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 carrying out of the General Conditions Project (relating to insurance, use including the School Subprojects) and the achievement of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of this Agreement.its objectives; (b) furnish to the Bank, not later than June 30 and December 31 of each year, commencing June 30, 2004, a progress report on the execution of the Project during the six-month period immediately preceding the date of each such report, said report to be of such scope and detail as the Bank may reasonably request and to include the results of the monitoring and evaluation activities performed pursuant to paragraph (a) of this Section; and (c) review, jointly with the Bank, not later than July 31 and January 31 of each year, commencing July 31, 2004, the progress of the Project in the context of the Integrated Development Program, and the attainment of the Project objectives on the basis of the reports referred to in paragraph (b) of this Section and shall, thereafter, take all measures required to ensure the efficient completion of the Project and the achievement of its objectives, based on the conclusions and recommendations of the said reports, and the Bank’s views on the matter. Section 3.05. For the purposes of Section 9.06 9.07 of the General Conditions and without limitation thereto, DAWASA the Borrower shall, in conjunction with the Borrowerthrough SEC: (ia) prepare, on the basis of guidelines acceptable to the Association Bank, and furnish to the Association Bank, not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose among the Association, between the Borrower and DAWASAthe Bank, a plan for the future operation of the Project designed to ensure its sustainabilityProject; and (iib) afford the Association Bank a reasonable opportunity to exchange views with DAWASA and the Borrower on the said plan. Section 2.04. Without limitation to its obligations under Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the Project: (a) replenish the Project Account up to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion of the Project, or whenever its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and (b) 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.

Execution of the Project. (a) DAWASA Section 3.01. The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit this Agreement, and, and to this end, shall: (i) carry out the Project with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices, and shall provide, or cause to be provided, provide promptly as needed, the funds, facilities, services and other resources required for the Project; (ii) duly and punctually perform in accordance with the provisions of the Development Contract, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; and (iii) cause the Operator CONAFE to carry out its obligations under the Project, Lease Contract in coordination with SEP, SEPEs, States, School Councils, Parents’ Associations and DAWASA Subloan Agreement municipalities, with due diligence and efficiency and in conformity with appropriate administrativeeducational, financial, engineeringsocial, environmental, watertechnical and administrative standards and practices, sewerage and resettlement practices. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Association and DAWASA shall otherwise agree, DAWASA shall carry out the Project well as in accordance with the Implementation Program Operational Manual and the monitoring indicators set forth in Schedule 2 to this Agreementthe Implementation Letter. Section 2.02. (a) Except as the Association Bank shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Credit Loan shall be governed by the provisions of Schedule 1 4 to this Agreement, as said provisions may be further elaborated in the Procurement Plan. (b) The Borrower shall cause CONAFE to update the Procurement Plan in accordance with guidelines acceptable to the Bank, and furnish such update to the Bank not later than 12 months after the date of the preceding Procurement Plan, for the Bank’s approval. (c) Throughout the course of Project implementation, the Borrower shall cause CONAFE to maintain or cause to be maintained, in a manner satisfactory to the Bank, an annually adjustable data base of reference prices of the same technical quality to serve as a reference for Project procurement costing in those cases where direct contracting is allowed for goods. (a) DAWASA shall carry out or cause Without prejudice to be carried out, the obligations provisions related to Project implementation set forth in Sections 9.03this Agreement including, 9.04but not limited to, 9.05Section 3.01, 9.06the Borrower shall cause CONAFE to issue and carry out the Project in accordance with an operational manual satisfactory to the Bank, 9.07 and 9.08 which shall include, inter alia: (i) special provisions to address the needs of the General Conditions (relating to insuranceindigenous peoples, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) as provided for in respect Section 3.09 of this Agreement; (ii) specific prohibition of construction of new schools, application of simple environmental design specifications for the rehabilitation of existing schools, and environmental guidelines for construction activities (e.g. materials procurement to avoid asbestos and lead paint, minimize use of scarce timber sources, proper solid and liquid waste disposal practices to be applied); (iii) the targeting criteria for the schools and communities that will benefit from the Project; (iv) the model form for Participation Agreements; (v) the model forms for the agreements to be entered into between CONAFE and the relevant State, municipality, School Council or Parents’ Association, for the execution of Part B.1 of the Project; and (vi) the model forms for the agreements to be entered into between CONAFE and the relevant Parents’ Association for the execution of Part B.4 (a) of the Project. (b) For The Borrower shall not amend the purposes Operational Manual without the Bank’s approval. (c) In case of Section 9.06 discrepancy between the provisions of the General Conditions Operational Manual and without limitation theretothose of this Agreement, DAWASA shallthe provisions set forth in this Agreement shall prevail. (a) The Borrower, through SHCP, shall enter into an agreement (Contrato xx Xxxxxxx) with CONAFE and NAFIN, satisfactory to the Bank (the Implementation Agreement), in conjunction with the Borrowerwhich agreement: (i) prepare, on CONAFE shall agree to carry out the basis Project and coordinate the participation of guidelines acceptable to the Association and furnish to the Association not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose among the Association, the Borrower and DAWASA, a plan for the future operation of (through SEP) in the Project designed to ensure its sustainability; and (ii) afford including the Association a reasonable opportunity to exchange views with DAWASA and the Borrower on the said plan. Section 2.04. Without limitation to its obligations under Section 2.01 carrying out of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the Project: (a) replenish the Project Account up to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion of the Project, or whenever its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and Part C.3 (b) ensure that amounts deposited into and the Project Account shall be used exclusively to make payments to meet expenditures made or to be made collaboration in respect the carrying out of the reasonable cost of goodsPart C.3 (d) (vi), works and services for the Project in addition to those financed from the proceeds of the Credit.C.3 (d) (ix) and

Execution of the Project. (a) DAWASA Section 3.01. The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit this Agreement, and, to this end, shall: (ia) shall carry out the Project with due diligence and efficiency and in conformity with appropriate administrative, financial, engineeringeconomic, environmental, water, sewerage engineering and resettlement environmental protection standards and in accordance with sound administrative and housing industry practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for such Parts of the Project; (ii) duly and punctually perform in accordance with the provisions of the Development Contract, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without without limitation upon the provisions of paragraph (a) of this Section and except as the Association Borrower and DAWASA the Bank shall otherwise agree, DAWASA shall carry out Part A.1 of the Project in accordance with the Implementation Arrangements for the Municipal Land Development Program set forth in Schedule 2 6 to this Agreement and Parts A.2 and B of the Project in accordance with the General Arrangements for On-lending set forth in Schedule 7 to this Agreement and the Implementation Program for the Building Materials Industrial Development Program set forth in Schedule 9 to this Agreement. Section 2.023.02. Except Without limitation upon the provisions of Section 3.01 of this Agreement, and except as the Association Bank and the Borrower shall otherwise agree, procurement for purposes of Part A.1 of the goodsProject the Borrower shall: (a) assist the Participating Cities to carry out their Municipal Land Development Plans in accordance with their Declarations of Commitment as furnished to the Bank and the Borrower, works duly acknowledging and consultants’ services required for confirming the Project same, upon satisfaction of all appropriate conditions precedent thereto, as constituting an effective agreement (the Participating City Implementation Agreement) between the Borrower and the Participating City, setting forth the obligations of the Participating City with respect to be financed the implementation of its respective activities under Part A.1 of the Project; (b) relend, as an appropriation out of the proceeds of the Credit shall be governed by Loan allocated from time to time to Categories (1), (2) and (4) of the provisions table set forth in paragraph 1 of Schedule 1 to this Agreement., the amount of financing required by the Participating Cities in respect of their approved Municipal Land Development Sub-projects, under loan agreements (the Participating City Loan Agreements) to be entered into between the Borrower and each such Participating City upon terms and conditions satisfactory to the Bank, including, without limitation, the terms and conditions set forth in Section IV of Schedule 6 to this Agreement; (c) each year during the implementation of the Municipal Land Development Program, carry out a review of the Participating Cities’ progress in meeting the objectives set forth in their respective Regulatory Action Plans and, on the basis of findings made in such review, and in accordance with other relevant criteria and procedures acceptable to the Bank: (i) approve the proposed Municipal Land Development Plan of each such city for the year concerned, and furnish to the Bank, by September 30 of each year, a budget showing the amounts estimated to be required for each Participating City for the year next following corresponding to the Sub- projects in the Municipal Land Development Plans so approved, and give the Bank an opportunity to comment thereon; (ii) authorize, as an appropriation out of the proceeds of the Loan allocated from time to time to Categories (1), (2) and (4) of the table set forth in paragraph 1 of Schedule 1 to this Agreement, the amounts to be re-lent to each of the Participating Cities under their Participating City Loan Agreements, in accordance with the budget referred to in sub-paragraph (i) of this paragraph, for the Sub-projects in such Participating Cities’ Municipal Land Development Plans for the year next following (the Municipal Land Development Credit Authorizations), taking into account the Bank’s views thereon, and notify each of the Participating Cities with regard to their respective Municipal Land Development Credit Authorizations; and (iii) by October 31 of each year, furnish to the Bank a certificate, in the form requested by the Bank for purposes of supporting applications for withdrawal and other purposes related to the Loan, confirming the eligibility of each such Participating City for financial assistance under the Municipal Land Development Program in the year next following, and setting forth the corresponding amounts of such assistance and any other information related to the Participating City which may be reasonably requested by the Bank; (d) cause the Participating Cities to perform in accordance with their respective Participating City Implementation Agreements and Participating City Loan Agreements all the obligations and activities of the Participating Cities therein set forth, including all the obligations previously set forth in the form of Declarations of Commitment and made effective pursuant to paragraph (a) DAWASA of this Section (which shall carry out or cause to be carried outinclude, without limitation, the obligations set forth or referred to in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 Section III of the General Conditions (relating Schedule 6 to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of this Agreement. (b) For the purposes of Section 9.06 of the General Conditions and without limitation thereto, DAWASA shall, in conjunction with the Borrower: (i) prepare, on the basis of guidelines acceptable to the Association and furnish to the Association not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose among the Association, the Borrower and DAWASA, a plan for the future operation of the Project designed to ensure its sustainability); and (iie) afford take or cause to be taken all other action, including the Association a reasonable opportunity provision of funds, facilities, services and other resources, necessary or appropriate to exchange views enable the Participating Cities to perform such obligations; and not take or permit to be taken any action which would prevent or interfere with DAWASA and the Borrower on the said plansuch performance. Section 2.043.03. Without limitation to its obligations under upon the provisions of Section 2.01 3.01 of this Agreement, DAWASA and except as the Bank and the Borrower shall otherwise agree, the Borrower shall, for the purposes of making available the counterpart contribution to the financing carrying out Parts A.2 and B of the Project: (a) replenish select the financial institutions to participate in financial intermediation of the credit facilities to be established under Parts A.2 and B of the Project Account up (the Housing Project Credit Facilities), in accordance with the eligibility criteria and procedures set forth or referred to the initial amount in Section II of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion of the Project, or whenever its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); andSchedule 7 to this Agreement; (b) ensure that in the case of each such financial institution, and for the particular Housing Project Credit Facility concerned, cause an agreement to be entered into between MOF, acting as agent of the Borrower, and the financial institution (the Subsidiary Loan Agreement), providing for the inclusion of such financial institution as a Participating Bank for purposes of undertaking the financial intermediation of the corresponding Housing Project Credit Facility, and setting forth the terms and conditions under which the corresponding amounts deposited into the Project Account of credit shall be used exclusively made available to make payments to meet expenditures made or to be made in respect of the reasonable cost of goods, works and services such Participating Bank for the Project in addition purpose of financing Sub-projects thereunder; (c) relend to those financed from each such Participating Bank, out of the proceeds of the Credit.Loan allocated from time to time to Category

Execution of the Project. (a) DAWASA Section 3.01. The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit this Agreement, and, to this end, shall: (i) end shall carry out the Project with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmentalecological, water, sewerage sanitation and resettlement public utility practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project; (ii) duly and punctually perform in accordance with the provisions of the Development Contract, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Association and DAWASA shall otherwise agree, DAWASA shall carry out the Project in accordance with the Implementation Program set forth in Schedule 2 to this Agreement. Section 2.023.02. Except as the Association Bank shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Credit Loan shall be governed by the provisions of Schedule 1 4 to this Agreement. (a) DAWASA shall carry out or cause When presenting a Subproject (other than a free-limit Subproject) to be carried outthe Bank for approval, the obligations Borrower shall furnish to the Bank an application, in form and substance satisfactory to the Bank, together with: (i) an appraisal of the Subproject, including the economic evaluation set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 Schedule 6 to this Agreement and 9.08 a description of the General Conditions expenditures proposed to be financed out of the proceeds of the Loan; (relating ii) a detailed description of how such Subproject meets the Eligibility Criteria set forth in Schedule 6 to insurancethis Agreement, use including in the case of goods dams specific safety, ecological and servicesresettlement plans, plans and schedules, records and reports, maintenance and land acquisition, respectively(iii) such other information as the Bank shall reasonably request in respect of this Agreementsuch Subproject. (b) For Each request by the purposes Borrower for authorization to make withdrawals from the Loan Account in respect of Section 9.06 of the General Conditions and without limitation thereto, DAWASA shall, in conjunction with the Borrower: a free-limit Subproject shall contain: (i) prepare, on the basis of guidelines acceptable to the Association and furnish to the Association not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose among the Association, the Borrower and DAWASA, a plan for the future operation summary description of the Project designed Subproject, including the economic evaluation and technical criteria set forth in Schedule 6 to ensure its sustainabilitythis Agreement and a description of the expenditures proposed to be financed out of the proceeds of the Loan; and and (ii) afford such other information as the Association a reasonable opportunity to exchange views with DAWASA and the Borrower on the said planBank shall reasonably request in respect of such Subproject. Section 2.043.04. Without limitation to its obligations under the provisions of Section 2.01 3.01 of this Agreement, DAWASA the Borrower shall, for the purposes of making available the counterpart contribution to the financing of the Project: : (a) replenish carry out with due diligence and efficiency and in conformity with appropriate practices the Project Account up to dam safety, environmental protection and resettlement plans included in Subprojects which contain the initial amount construction, expansion or improvement of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion of the Projectdams, reservoirs or whenever its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000)other flow control structures; and and (b) ensure that amounts deposited into provide, promptly as needed, the Project Account shall be used exclusively funds, facilities, services and other resources required for the purpose. Section 3.05. The Borrower shall: (a) not later than March 31, 1990 furnish to make payments to meet expenditures made or to be made in respect the Bank a copy of the reasonable findings and recommendations of its study on the structure of its tariffs and the long-run marginal cost of goods, works its water supply and services for the Project in addition to those financed from the proceeds of the Credit.sewerage services;

Execution of the Project. (a) DAWASA Banxico declares its commitment to the objectives of the Project as set forth in Schedule 2 3 to the Development Credit Loan Agreement, and, and to this end, shall: shall carry out Parts A, C (i), D (i) carry out and F of the Project Project, with due diligence and efficiency and in conformity with appropriate sound administrative, financial, engineering, environmental, water, sewerage industrial and resettlement agricultural practices, and shall provide, or cause to be provided, promptly as needed, the all funds, facilities, services and other resources required by FIRA for the Project; (ii) duly and punctually perform in accordance with the provisions of the Development Contract, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon the provisions of paragraph (a) of this Section, Banxico shall enter into the contractual arrangements referred to in Section and except 2.02 (a) (ii) of the Guarantee Agreement. Except as the Association and DAWASA Bank shall otherwise agree, DAWASA Banxico shall not change or fail to enforce any provision of such contractual arrangements. (c) Banxico shall carry out the lending operations under Part A of the Project in accordance with sound operational policies and in conformity with the Implementation Program principles and procedures set forth in the Schedule 2 to this AgreementAgreement and FIRA Lending Policies and Operating Manual. (a) Banxico shall cause, unless the Bank shall otherwise agree, all Sub-loans included in Part A of the Project to be made on terms whereby the Participating Bank shall obtain, by written contract with the Beneficiary or by other appropriate legal means, rights adequate to protect the interests of Banxico and the Participating Bank and to accomplish the purposes of the Project, including the right of the Participating Bank to: (i) require the Beneficiary to carry out and operate the Subproject with due diligence and efficiency and in accordance with sound technical, financial, industrial, agricultural, and managerial standards and to maintain adequate records; (ii) require that: (A) the goods and services to be f inanced out of the proceeds of the Sub-loan shall be purchased at a reasonable price, account being taken also of other relevant factors such as time of delivery and efficiency and reliability of the goods and availability of maintenance facilities and spare parts therefor and, in the case of services, of their quality and the competence of the parties rendering them and, to the extent practicable, after evaluation and comparison of quotations from at least three suppliers, and (B) such goods and services shall be used exclusively in the carrying out of the Sub-project; (iii) inspect, by itself or jointly with representatives of the Bank and Banxico if the Bank shall so request, such goods and the sites, works, plants and construction included in the Sub-project, the operation thereof, and any relevant records and documents; (iv) require that the Beneficiary shall take out and maintain with responsible insurers such insurance, against such risks and in such amounts, as shall be consistent with normal business practice; and that such insurance cover hazards incident to the acquisition, transportation and delivery of goods financed out of the proceeds of Sub-loans to the place of use or installation, and that any indemnity thereunder be made payable in a currency freely usable by the Beneficiary to replace or repair such goods; (v) obtain all such information as Banxico or the Participating Bank shall reasonably request relating to the foregoing and to the administration, operation and financial condition of the Beneficiary; and (vi) suspend or terminate the right of the Beneficiary to the use of the proceeds of the Sub-loan upon failure by such Beneficiary to perform any of its obligations under its contract with the Participating Bank. (b) Banxico shall cause each Participating Bank to exercise its rights in relation to each Sub-loan in such manner as to: (i) protect the interests of the Bank and Banxico; (ii) comply with its obligations in respect of the corresponding Sub-loan; and (iii) achieve the purposes of the Project. (c) Banxico shall not make available FIRA’s credit facilities financed out of the proceeds of the Loan to any credit institution,, other than those credit institutions which currently participate in carrying out the Prior Project as a Participating Bank, unless such credit institution has been considered eligible by the Bank as a Participating Bank. (d) Banxico shall suspend the eligibility of any Participating Bank to make Sub-loans whenever the arrears under loans made by any such Participating Bank and discounted by FIRA exceed 15% of the aggregate outstanding amount of such loans. Section 2.022.03. Banxico shall not make any Sub-loan under the Project in excess of the equivalent of eight hundred thousand dollars ($800,000), or such other amount as shall be agreed between the Bank and Banxico, unless the Bank shall have approved the Sub-loan. When applying to the Bank for such approval, Banxico shall furnish to the Bank a description of the Subproject and such technical, economic and financial data regarding such Sub-project as the Bank shall reasonably request. Section 2.04. Except as the Association Bank shall otherwise agree, procurement of the goods, works and consultants’ services required for Parts C (i), D (i) and F of the Project and to be financed out of the proceeds of the Credit Loan shall be governed by the provisions of Schedule 1 4 to this the Loan Agreement. Section 2.05. (a) DAWASA Banxico shall carry out or cause to be carried out, the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 9.07, 9.08 and 9.08 9.09 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of this Agreement. Project Agreement and Parts A, C (b) For the purposes of Section 9.06 of the General Conditions and without limitation theretoi), DAWASA shall, in conjunction with the Borrower: D (i) prepare, on the basis of guidelines acceptable to the Association and furnish to the Association not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose among the Association, the Borrower and DAWASA, a plan for the future operation of the Project designed to ensure its sustainability; and (ii) afford the Association a reasonable opportunity to exchange views with DAWASA and the Borrower on the said plan. Section 2.04. Without limitation to its obligations under Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing F of the Project: (a) replenish the Project Account up to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion of the Project, or whenever its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and (b) 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.

Execution of the Project. (a) DAWASA The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit this Agreement, and, to this end, shall: (i) shall carry out Parts A.1 through A.3 of the Project through TRRC and shall cause, under the overall supervision and coordination of TRRC, the Highway Concern to carry out Parts A.4 and B.1 of the Project and the Railway Department to carry out Parts A.5, B.2 and B.3 of the Project, all with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage environmental and resettlement engineering practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project; (ii) duly and punctually perform in accordance with the provisions of the Development Contract, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Borrower and the Association and DAWASA shall otherwise agree, DAWASA the Borrower shall carry out the Project in accordance with the Implementation Program set forth in Schedule 2 4 to this Agreement. Section 2.02. Except as (c) For the Association shall otherwise agree, procurement purpose of carrying out Parts A.4 and B.1 of the goodsProject, works the Borrower shall enter into an implementation agreement with the Highway Concern (Highway Concern Implementation Agreement) on terms and consultants’ services required for conditions acceptable to the Association, including provisions setting forth the responsibilities of the Highway Concern in respect of the carrying out of Parts A.4 and B.1 of the Project and to be financed out the onlending of the proceeds of the Credit shall be governed by the provisions of Schedule 1 to this Agreement. (a) DAWASA shall carry out or cause to be carried out, the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) withdrawn in respect of this Agreement. (b) For the purposes of Section 9.06 Parts A.4 and B.1 of the General Conditions and without limitation thereto, DAWASA shall, in conjunction with Project to the BorrowerHighway Concern under the following principal terms of the Highway Concern Subsidiary Loan: (i) preparethe principal amount repayable by the Highway Concern shall be the equivalent (determined as of the date or the respective dates of repayment) of the value of the currency or currencies withdrawn from the Credit Account or paid out of the Special Account expressed in Dollars at the time of withdrawal on account of the cost of services, goods and works financed out of such proceeds for Parts A.4 and B.1 of the Project; (ii) the principal amount of the Highway Concern Subsidiary Loan to be repaid in Lari; (iii) interest on the basis principal amount thereof payable at the fixed rate of guidelines acceptable to the Association and furnish to the Association not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose among the Association, the Borrower and DAWASA, a plan for the future operation of the Project designed to ensure its sustainabilityat least 7.07% per annum; and (iiiv) afford the Association principal amount of the Highway Concern Subsidiary Loan to be repaid over a reasonable opportunity to exchange views with DAWASA and the Borrower on the said planperiod of five years following a grace period of one year. Section 2.04. Without limitation to its obligations under Section 2.01 (d) For the purpose of this Agreementcarrying out Parts A.5, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the Project: (a) replenish the Project Account up to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion B.2 and B.3 of the Project, or whenever its balance the Borrower shall be less than two hundred fifty million Tanzanian Shillings enter into an implementation agreement with the Railway Department (Tshs 250,000,000); and (bthe Railway Department Implementation Agreement) ensure that amounts deposited into on terms and conditions acceptable to the Project Account Association, which shall be used exclusively to make payments to meet expenditures made or to be made include adequate provisions setting forth the responsibilities of the Railway Department in respect of the reasonable cost carrying out of goods, works and services for the Project in addition to those financed from the proceeds of the Credit.Parts A.5,

Execution of the Project. (a) DAWASA declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit Agreement, and, to this end, shall: (i) Section 3.01. The Recipient shall carry out the Project with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage environmental and resettlement technical practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project; (ii) duly and punctually perform in accordance with the provisions of the Development Contract, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Association and DAWASA shall otherwise agree, DAWASA shall carry out the Project in accordance with the Implementation Program set forth in Schedule 2 to this Agreement. Section 2.023.02. Except as the Association Administrator shall otherwise agree, procurement of the goods, works goods and consultants’ services required for the Project and to be financed out of the proceeds of the Credit Grant shall be governed by the provisions of Schedule 1 4 to this Agreement. (a) DAWASA The Recipient shall carry out maintain or cause to be carried out, the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, maintained records and reportsaccounts adequate to reflect in accordance with sound accounting practices the operations, maintenance resources and land acquisition, respectively) expenditures in respect of this Agreementthe Project of the departments or agencies of the Recipient responsible for carrying out the Project or any part thereof. (b) For the purposes of Section 9.06 of the General Conditions and without limitation thereto, DAWASA The Recipient shall, in conjunction with the Borrower: (i) have the records and accounts referred to in paragraph (a) of this Section for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Administrator; (ii) furnish to the Administrator as soon as available, but in any case not later than [four] months after the end of each such year, the report of such audit by said auditors, of such scope and in such detail as the Administrator shall have reasonably requested; and (iii) furnish to the Administrator such other information concerning said records and accounts and the audit thereof as the Administrator shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Account were made on the basis of statements of expenditure, the Recipient shall: (i) maintain or cause to be maintained, in accordance with paragraph (a) of this Section, records and accounts reflecting such expenditures; (ii) retain, until at least one year after the Administrator has received the audit report for the fiscal year in which the last withdrawal from the Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Administrator’s representatives to examine such records; and (iv) ensure that such records and accounts are included in the annual audit referred to in paragraph (b) of this Section and that the report of such audit contains a separate opinion by said auditors as to whether the statements of expenditure submitted during such fiscal year, together with the procedures and internal controls involved in their preparation, can be relied upon to support the related withdrawals. Section 3.04. Without limitation upon the applicable provisions of Article IX of the General Conditions, the Recipient shall: (a) prepare, on the basis of guidelines acceptable to the Association Administrator, and furnish to the Association Administrator not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose among between the Association, Recipient and the Borrower and DAWASAAdministrator, a plan for to insure the future operation continued achievement of the Project designed to ensure its sustainability; andobjectives of the Technical Assistance. (iib) afford the Association Administrator a reasonable opportunity to exchange views with DAWASA and the Borrower Recipient on the said plan. Section 2.04. Without limitation to its obligations under Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the Project: (a) replenish the Project Account up to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion of the Project, or whenever its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and (bc) ensure that amounts deposited thereafter, carry out said plan with due diligence and efficiency and in accordance with appropriate practices, taking into account 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 CreditAdministrator’s comments thereon.

Execution of the Project. (a) DAWASA declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit Agreement, and, to this end, shall: (i) The Recipient shall carry out the Project with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage administrative and resettlement financial practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project; (ii) duly and punctually perform in accordance with the provisions of the Development Contract, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Association and DAWASA shall otherwise agree, DAWASA shall carry out the Project in accordance with the Implementation Program set forth in Schedule 2 to this Agreement. Section 2.023.02. Except as the Association Administrator shall otherwise agree, procurement of the goods, works goods and consultants’ ' services required for the Project and to be financed out of the proceeds of the Credit Grant shall be governed by the provisions of Schedule 1 3 to this Agreement. (a) DAWASA The Recipient shall carry out maintain or cause to be carried out, the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, maintained records and reportsaccounts adequate to reflect in accordance with sound accounting practices the operations, maintenance resources and land acquisition, respectively) expenditures in respect of this Agreementthe Project of the departments or agencies of the Recipient responsible for carrying out the Project or any part thereof. (b) For the purposes of Section 9.06 of the General Conditions and without limitation thereto, DAWASA The Recipient shall, in conjunction with the Borrower: (i) have the records and accounts referred to in paragraph (a) of this Section for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Administrator; (ii) furnish to the Administrator as soon as available, but in any case not later than four months after the end of each such year, the report of such audit by said auditors, of such scope and in such detail as the Administrator shall have reasonably requested; and (iii) furnish to the Administrator such other information concerning said records and accounts and the audit thereof as the Administrator shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Account were made on the basis of statements of expenditure, the Recipient shall: (i) maintain or cause to be maintained, in accordance with paragraph (a) of this Section, records and accounts reflecting such expenditures; (ii) retain, until at least one year after the Administrator has received the audit for the fiscal year in which the last withdrawal from the Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Administrator’s representatives to examine such records; and (iv) ensure that such records and accounts are included in the annual audit referred to in paragraph (b) of this Section and that the report of such audit contains a separate opinion by said auditors as to whether the statements of expenditure submitted during such fiscal year, together with the procedures and internal controls involved in their preparation, can be relied upon to support the related withdrawals. Section 3.04. Without limitation upon the applicable provisions of Article IX of the General Conditions, the Recipient shall: (a) prepare, on the basis of guidelines acceptable to the Association Administrator, and furnish to the Association Administrator not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose among between the Association, Recipient and the Borrower and DAWASAAdministrator, a plan for the future operation of the Project designed to ensure its sustainability; andProject; (iib) afford the Association Administrator a reasonable opportunity to exchange views with DAWASA and the Borrower Recipient on the said plan. Section 2.04. Without limitation to its obligations under Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the Project: (a) replenish the Project Account up to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion of the Project, or whenever its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and (bc) ensure that amounts deposited thereafter, carry out said plan with due diligence and efficiency and in accordance with appropriate practices, taking into account 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 CreditAdministrator’s comments thereon.

Execution of the Project. (a) DAWASA declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit Agreement, and, to this end, shall: (i) Section 3.01. The Recipient shall carry out the Project with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project; (ii) duly and punctually perform in accordance with the provisions of the Development Contract, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Association and DAWASA shall otherwise agree, DAWASA shall carry out the Project in accordance with the Implementation Program set forth in Schedule 2 to this Agreement. Section 2.023.02. Except as the Association Administrator shall otherwise agree, procurement of the goods, works and consultants’ ' services required for the Project and to be financed out of the proceeds of the Credit Grant shall be governed by the provisions of Schedule 1 2 to this Agreement. (a) DAWASA The Recipient shall carry out maintain or cause to be carried out, the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, maintained records and reportsaccounts adequate to reflect in accordance with sound accounting practices the operations, maintenance resources and land acquisition, respectively) expenditures in respect of this Agreementthe Project of the departments or agencies of the Recipient responsible for carrying out the Project or any part thereof. (b) For the purposes of Section 9.06 of the General Conditions and without limitation thereto, DAWASA The Recipient shall, in conjunction with the Borrower: (i) preparehave the records and accounts referred to in paragraph (a) of this Section including those for the Special Account, for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Administrator; (ii) furnish to the Administrator as soon as available, but in any case not later than four months after the end of each such year, the report of such audit by said auditors, of such scope and in such detail as the Administrator shall have reasonably requested; and (iii) furnish to the Administrator such other information concerning said records and accounts and the audit thereof as the Administrator shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Account were made on the basis of guidelines acceptable statements of expenditure, the Recipient shall: (i) maintain or cause to the Association be maintained, in accordance with paragraph (a) of this Section, records and furnish to the Association not later than six accounts reflecting such expenditures; (6ii) months retain, until at least one year after the Closing Date or such later date as may be agreed for this purpose among Administrator has received the Association, the Borrower and DAWASA, a plan audit report for the future operation of fiscal year in which the Project designed last withdrawal from the Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Administrator's representatives to ensure its sustainabilityexamine such records; and (iiiv) afford ensure that such records and accounts are included in the Association a reasonable opportunity annual audit referred to exchange views with DAWASA and the Borrower on the said plan. Section 2.04. Without limitation to its obligations under Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the Project: (a) replenish the Project Account up to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion of the Project, or whenever its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and in paragraph (b) ensure of this Section and that amounts deposited into the Project Account shall report of such audit contains a separate opinion by said auditors as to whether the statements of expenditure submitted during such fiscal year, together with the procedures and internal controls involved in their preparation, can be used exclusively relied upon to make payments to meet expenditures made or to be made in respect of support the reasonable cost of goods, works and services for the Project in addition to those financed from the proceeds of the Creditrelated withdrawals.

Execution of the Project. (a) DAWASA AGEFIB declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit Agreement, Agreement and, to this end, shall: (i) shall carry out the Project with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage engineering and resettlement environmental practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project; (ii) duly and punctually perform in accordance with the provisions of the Development Contract, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Association and DAWASA AGEFIB shall otherwise agree, DAWASA AGEFIB shall carry out the Project in accordance with the Implementation Program set forth in Schedule 2 to this Agreement. Section 2.02. Except as the Association shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Credit shall be governed by the provisions of Schedule 1 to this Agreement. (a) DAWASA Section 2.03. AGEFIB shall carry out or cause to be carried out, the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of the Project Agreement. Section 2.04. AGEFIB shall duly perform all its obligations under the Convention, the Operating Manual and the Administrative and Financial Procedure Manual. Except as the Association shall otherwise agree, AGEFIB shall not take or concur in any action which would have the effect of amending, abrogating, assigning or waiving the Convention or any provision thereof. (a) AGEFIB shall, at the request of the Association, exchange views with the Association with regard to the progress of the Project, the performance of its obligations under this Agreement., the Convention, the Operating Manual and the Administrative and Financial Procedure Manual, and other matters relating to the purposes of the Credit; (b) For AGEFIB shall promptly inform the Association of any condition which interferes or threatens to interfere with the progress of the Project, the accomplishment of the purposes of Section 9.06 the Credit, or the performance by AGEFIB of its obligations under this Agreement, the Convention, the Operating Manual and the Administrative and Financial Procedure Manual; and (c) Without prejudice to the generality of the General Conditions foregoing, AGEFIB shall participate fully in the reviews referred to in paragraphs B.2 (b) and without limitation theretoB.3 (a) of Schedule 3 to the Development Credit Agreement and, DAWASA to this end, shall: (a) furnish to the Borrower and the Association such reports as may be required for that purpose, and in such detail as the Borrower or the Association shall reasonably request, on the progress and status of the Project; (b) following each review, act promptly and diligently in order to take, or assist the Borrower in taking, any corrective action deemed necessary to remedy any shortcoming noted in the implementation of the Project, or to implement, or assist the Borrower in implementing, such other measures as may have been agreed upon between the parties in furtherance of the objectives of the Project; and (c) take all measures on its part to organize, in conjunction with the Association and the Borrower: , the workshop referred to in paragraph B.2 (ie) prepare, on the basis of guidelines acceptable Schedule 3 to the Association and furnish to the Association not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose among the Association, the Borrower and DAWASA, a plan for the future operation of the Project designed to ensure its sustainability; and (ii) afford the Association a reasonable opportunity to exchange views with DAWASA and the Borrower on the said planDevelopment Credit Agreement. Section 2.04. Without limitation to its obligations under Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the Project: (a) replenish the Project Account up to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion of the Project, or whenever its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and (b) 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.

Execution of the Project. (a) DAWASA The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit Agreement, this Agreement and, to this end, shall: (i) shall carry out the Project Project, except for Part D.3 through its Ministry of Health with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage engineering and resettlement public health practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project;. (iib) duly and punctually perform in accordance with the provisions Without limitation upon any of the Development Contractits other obligations, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; and (iii) shall cause the Operator LADB to carry out its obligations under Part D.3 of the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity accordance with appropriate administrativeadministrative and financial practices, financialand shall provide, engineeringpromptly as needed, environmentalthe funds, waterfacilities, sewerage services and resettlement practicesother resources required for Part D.3 of the Project. (bc) The Borrower shall make available the proceeds of the Credit allocated to Part D.3 to LADB, under arrangements satis- factory to the Association. (d) Without limitation upon the provisions of paragraph (a) of this Section and except as the Borrower and the Association and DAWASA shall otherwise agree, DAWASA the Borrower shall carry out the Project in accordance with the Implementation Program set forth in Schedule 2 4 to this Agreement. Section 2.023.02. Except as the Association shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Credit shall be governed by the provisions of Schedule 1 3 to this Agreement. Section 3.03. The Borrower shall continue to maintain the PMU, composed of a Project Manager, Administrative Assistant, Assistant Accountant and Secretary, in accordance with terms of reference and with qualifications satisfactory to the Association. Section 3.04. The Borrower shall: (a) DAWASA shall carry out or cause continue to be carried out, operate the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 Imprest Account for the upgrading of rural clinics under the control of the General Conditions (relating to insurance, use Director of goods RCIP; and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of this Agreement. (b) For the purposes at all times, maintain a minimum balance of Section 9.06 of the General Conditions and without limitation thereto, DAWASA shallM 250,000, in conjunction with the Borrower: (i) prepare, on the basis of guidelines acceptable to the Association and furnish to the Association not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose among the Association, the Borrower and DAWASA, a plan for the future operation of the Project designed to ensure its sustainability; and (ii) afford the Association a reasonable opportunity to exchange views with DAWASA and the Borrower on the said planaccount. Section 2.043.05. Without limitation to its obligations under Section 2.01 of this Agreement, DAWASA The Borrower shall, commencing April 1, 1991, fund directly payments for the purposes treatment (hospitalization and drugs) of making available the counterpart contribution to the financing of the Project: (a) replenish the Project Account up to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion of the Project, or whenever its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and (b) ensure that amounts deposited into the Project Account shall be used exclusively to make payments to meet expenditures made or to be made TB patients in respect of the reasonable cost of goods, works and services for the Project in addition to those financed from the proceeds of the CreditPHAL hospitals.

Execution of the Project. (a) DAWASA XXXXXXX declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit Agreement, and, to this end, shall: (i) shall carry out the Project with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage engineering and resettlement technical practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project; (ii) duly and punctually perform in accordance with the provisions of the Development Contract, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Association and DAWASA TANESCO shall otherwise agree, DAWASA TANESCO shall carry out the Project in accordance with the Implementation Program set forth in Schedule 2 to this Agreement. Section 2.02. Except as the Association shall otherwise agree, procurement of the goods, works and consultants’ services goods required for the Project and to be financed out of the proceeds of the Credit shall be governed by the provisions of Schedule 1 to this Agreement. (a) DAWASA TANESCO shall carry out or cause to be carried out, the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of this Agreementthe Project. (b) For the purposes of Section 9.06 of the General Conditions and without limitation thereto, DAWASA TANESCO shall, in conjunction with the Borrower: (i) prepare, on the basis of guidelines acceptable to the Association and furnish to the Association not later than six four (64) months after the Closing Date or such later date as may be agreed for this purpose among between the Association, the Borrower and DAWASATANESCO, a plan for the future operation of the Project designed to ensure its sustainabilitythe sustainability of the Project’s objectives; and (ii) afford the Association a reasonable opportunity to exchange views with DAWASA and the Borrower and XXXXXXX on the said plan. Section 2.04. Without limitation to TANESCO shall duly perform all its obligations under the Subsidiary Grant Agreement. Except as the Association shall otherwise agree, TANESCO shall not take or concur in any action which would have the effect of amending, abrogating, assigning or waiving the Subsidiary Grant Agreement or any provision thereof. Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the Project: 2.05. (a) replenish TANESCO shall, at the Project Account up request of the Association, exchange views with the Association with regard to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion progress of the Project, or whenever the performance of its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and (b) ensure that amounts deposited into obligations under this Agreement and under 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 CreditSubsidiary Grant Agreement.

Execution of the Project. (a) DAWASA ADF declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit Agreement, and, to this end, shall: (i) shall carry out the Project with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage financial and resettlement technical practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project; (ii) duly and punctually perform in accordance with the provisions of the Development Contract, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Association and DAWASA ADF shall otherwise agree, DAWASA ADF shall carry out the Project in accordance with the Implementation Program set forth in Schedule 2 to this Agreement. Section 2.02. Except as the Association shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Credit shall be governed by the provisions of Schedule 1 to this Agreement. Section 2.03. Without limitation upon the provisions of Article IX of the General Conditions, ADF shall: (a) DAWASA prepare and furnish to the Association not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose between ADF and the Association, a plan of such scope and in such detail as the Association shall reasonably request, for the future operation of the Project; (b) afford the Association a reasonable opportunity to exchange views with ADF on said plan; and (c) thereafter, carry out said plan with due diligence and efficiency and in accordance with appropriate practices, taking into account the Association’s comments thereon. Section 2.04. ADF shall carry out or cause to be carried out, the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of this the Project Agreement. Section 2.05. ADF shall duly perform all its obligations under the Subsidiary Agreement. Except as the Association shall otherwise agree, ADF shall not take or concur in any action which would have the effect of amending, abrogating, assigning or waiving the Subsidiary Agreement or any provision thereof. Section 2.06. (ba) For the purposes of Section 9.06 of the General Conditions and without limitation thereto, DAWASA ADF shall, in conjunction with at the Borrower: (i) prepare, on the basis request of guidelines acceptable to the Association and furnish to the Association not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose among the Association, the Borrower and DAWASA, a plan for the future operation of the Project designed to ensure its sustainability; and (ii) afford the Association a reasonable opportunity to exchange views with DAWASA and the Borrower on the said plan. Section 2.04. Without limitation to its obligations under Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution Association with regard to the financing of the Project: (a) replenish the Project Account up to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion progress of the Project, or whenever the performance of its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and (b) ensure that amounts deposited into obligations under this Agreement and under the Project Account shall be used exclusively Subsidiary Agreement, and other matters relating 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 purposes of the Credit.

Execution of the Project. (a) DAWASA declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit Agreement, and, to this end, shall: (i) The Recipient shall carry out the Project with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage administrative and resettlement financial practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project; (ii) duly and punctually perform in accordance with the provisions of the Development Contract, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Association Recipient and DAWASA the Administrator shall otherwise agree, DAWASA the Recipient shall carry out the Project in accordance with the Implementation Program set forth in Schedule 2 3 to this Agreement. Section 2.023.02. Except as the Association Administrator shall otherwise agree, procurement of the goods, works goods and consultants’ ' services required for the Project and to be financed out of the proceeds of the Credit Grant shall be governed by the provisions of Schedule 1 4 to this Agreement. (a) DAWASA The Recipient shall carry out maintain or cause to be carried out, the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, maintained records and reportsaccounts adequate to reflect in accordance with sound accounting practices the operations, maintenance resources and land acquisition, respectively) expenditures in respect of this Agreementthe Project of the departments or agencies of the Recipient responsible for carrying out the Project or any part thereof. (b) For the purposes of Section 9.06 of the General Conditions and without limitation thereto, DAWASA The Recipient shall, in conjunction with the Borrower: (i) have the records and accounts referred to in paragraph (a) of this Section and those for the Special Account for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Administrator; (ii) furnish to the Administrator as soon as available, but in any case not later than four months after the end of each such year, the report of such audit by said auditors, of such scope and in such detail as the Administrator shall have reasonably requested; and (iii) furnish to the Administrator such other information concerning said records and accounts and the audit thereof as the Administrator shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Account were made on the basis of statements of expenditure, the Recipient shall: (i) maintain or cause to be maintained, in accordance with paragraph (a) of this Section, records and accounts reflecting such expenditures; (ii) retain, until at least one year after the Administrator has received the audit report for the fiscal year in which the last withdrawal from the Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Administrator’s representatives to examine such records; and (iv) ensure that such records and accounts are included in the annual audit referred to in paragraph (b) of this Section and that the report of such audit contains a separate opinion by said auditors as to whether the statements of expenditure submitted during such fiscal year, together with the procedures and internal controls involved in their preparation, can be relied upon to support the related withdrawals. Section 3.04. Without limitation upon the applicable provisions of Article IX of the General Conditions, the Recipient shall: (a) prepare, on the basis of guidelines acceptable to the Association Administrator, and furnish to the Association Administrator not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose among between the Association, Recipient and the Borrower and DAWASAAdministrator, a plan for the future operation of the Project designed to ensure its sustainability; andthe sustainability of the Project; (iib) afford the Association Administrator a reasonable opportunity to exchange views with DAWASA and the Borrower Recipient on the said plan. Section 2.04. Without limitation to its obligations under Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the Project: (a) replenish the Project Account up to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion of the Project, or whenever its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and (bc) ensure that amounts deposited thereafter, carry out said plan with due diligence and efficiency and in accordance with appropriate practices, taking into account 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 CreditAdministrator’s comments thereon.

Execution of the Project. (a) DAWASA The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit Agreement, and, to this end, shall: (i) shall carry out the Project with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage environmental and resettlement technical practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project;. (iib) duly and punctually perform in accordance with Without any limitation or restriction upon any of its other obligations under the provisions of Loan Agreement, the Development ContractBorrower, Lease Contract and through the DAWASA Subloan Agreement all its obligations therein set forth and Atyrau Oblast Akimat, shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; and (iii) cause the Operator Vodocanal to carry out its obligations under Parts A, B and C.1 of the Project, Lease Contract and DAWASA Subloan Agreement Project with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmentalenvironmental and technical practices, waterand shall take and cause to be taken all actions necessary or appropriate to enable the Vodocanal to perform such obligations, sewerage and resettlement practicesshall not take or permit to be taken any action which would prevent or interfere with such performance. (bc) Without limitation upon the provisions of paragraph paragraphs (a) and (b) of this Section and except as the Association Borrower and DAWASA the Bank shall otherwise agree, DAWASA the Borrower shall carry out the Project through the MOF, CWR, Atyrau Oblast Akimat and City of Atyrau, and shall cause Vodocanal to carry out Parts A, B and C.1 of the Project, all in accordance with the Project Implementation Agreement, and the Implementation Program set forth in Schedule 2 5 to this Agreement. Section 2.02(d) For the purposes of the Project, the Borrower shall relend the proceeds of the Loan to the Atyrau Oblast Akimat under a subsidiary loan agreement (Subsidiary Loan Agreement) to be entered into between the MOF and Atyrau Oblast Akimat, under terms and conditions which shall have been approved by the Bank, and the Atyrau Oblast Akimat shall make available the works and goods financed with the proceeds of the Loan allocated from time to time to Categories (1) and (3) of the table in paragraph 1 of Schedule 1 to this Agreement to the Vodocanal under a project implementation and subsidiary loan agreement to be entered into between the Borrower and Vodocanal (the Project Implementation and Subsidiary Loan Agreement), and annual performance agreements (Annual Performance Agreements), under terms and conditions which shall have been approved by the Bank. Except as the Association Bank shall otherwise agree, such terms and conditions shall include the terms and conditions set forth or referred to in Schedule 7 to this Agreement. (e) The Borrower shall exercise its rights under the Subsidiary Loan Agreement, Project Implementation Agreement, and shall cause the Atyrau Oblast Akimat to exercise its rights under the Project Implementation and Subsidiary Loan Agreement and Annual Performance Agreements, in such manner as to protect the interests of the Borrower and the Bank and to accomplish the purposes of the Loan, and, except as the Bank shall otherwise agree, the Borrower shall not assign, amend, abrogate or waive the Subsidiary Loan Agreement and Project Implementation Agreement, and shall cause the Atyrau Oblast Akimat not to assign, amend, abrogate or waive the Project Implementation and Subsidiary Loan Agreement and Annual Performance Agreements, or any provision thereof. Section 3.02. Except as the Bank shall otherwise agree, procurement of the goods, works works, and consultants’ services required for the Project and to be financed out of the proceeds of the Credit Loan shall be governed by the provisions of Schedule 1 4 to this Agreement. (a) DAWASA shall carry out or cause to be carried out, the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of this Agreement. (b) For the purposes of Section 9.06 of the General Conditions and without limitation thereto, DAWASA shall, in conjunction with the Borrower: (i) prepare, on the basis of guidelines acceptable to the Association and furnish to the Association not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose among the Association, the Borrower and DAWASA, a plan for the future operation of the Project designed to ensure its sustainability; and (ii) afford the Association a reasonable opportunity to exchange views with DAWASA and the Borrower on the said plan. Section 2.04. Without limitation to its obligations under Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the Project: (a) replenish the Project Account up to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion of the Project, or whenever its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and (b) 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.

Execution of the Project. (a) DAWASA The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit this Agreement, and, to this end, shall: (i) shall and shall cause BIDV to carry out the Project with due diligence and efficiency and in conformity with appropriate sound administrative, financialcommercial banking, engineeringand financial practices, environmentaland social and environmental standards, waterwith qualified and experienced management and personnel in sufficient numbers, sewerage and resettlement practicesin accordance with the MLF Policy Manual and RDF II Policy Manual, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project; (ii) duly and punctually perform in accordance with the provisions of the Development Contract, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Borrower and the Association and DAWASA shall otherwise agree, DAWASA the Borrower shall cause BIDV to carry out the Project in accordance with the Implementation Program set forth in Schedule 2 4 to this Agreement. (c) The Borrower shall, and shall cause BIDV to, adopt and thereafter apply the Financial Management Manual in a manner and substance satisfactory to the Association pursuant to the provisions of paragraph 15 of Schedule 4 to this Agreement. Section 2.023.02. For purposes of carrying out Part A of the Project: (a) the Borrower shall, and shall cause BIDV to, adopt and thereafter apply the MLF Policy Manual and the RDF II Policy Manual in a manner and substance satisfactory to the Association, each including provisions for: (i) accreditation criteria for MFIs and PFIs, respectively; (ii) eligibility criteria for MLF Beneficiaries and RDF II Beneficiaries; (iii) eligibility criteria for Sub-projects and its review; (iv) terms and conditions of Subsidiary Loans and Sub-loans; (v) terms and conditions of BIDV Additional Financing and PFI Additional Financing for RDF II Sub-projects; (vi) terms and conditions of MFI Additional Financing for MLF Sub-projects; (vii) guidelines for environmental screening of Sub-projects and compliance with laws and regulations of the Socialist Republic of Vietnam on environment; (viii) audit, supervision and reporting of the MFIs and PFIs; (ix) financial management system for BIDV and for each PFI and MFI accredited under the Project; (x) operation and management of the Rural Development Fund pursuant to Section 3.03 (b) of this Agreement; and (xi) operation and management of the Micro Finance Loan Fund and Rural Development Fund II, to be established pursuant to the provisions of paragraph 10 (a) of Schedule 4 to this Agreement; and (b) the Borrower and BIDV further undertake not to abrogate, amend, assign, repeal, suspend or waive the provisions of the MLF Policy Manual and the RDF II Policy Manual without the prior agreement of the Association. Section 3.03. The Borrower shall, all in a manner and substance satisfactory to the Association: (a) through SBV, transfer to BIDV all the assets and liabilities of the Fund for the Rural Poor and the Rural Development Fund, which funds were established pursuant to the provisions of paragraph A.7 of Schedule 4 to the Development Credit Agreement for the Rural Finance Project; (b) cause BIDV to operate and maintain the Fund for the Rural Poor and the Rural Development Fund and to that effect the Borrower shall cause BIDV to adopt and thereafter apply the FRP Policy Manual; and (c) cause BIDV not to abrogate, amend, assign, repeal, suspend or waive the provisions of the FRP Policy Manual without the prior agreement of the Association. Section 3.04. For purposes of carrying out the Project the Borrower shall, through the Borrower’s Ministry of Finance (MOF), onlend to BIDV the proceeds of the Credit under the On-lending Loan Agreement to be entered into between the Borrower represented by MOF, and BIDV under terms and conditions satisfactory to the Association, including those set forth in Section I of Schedule 5 to this Agreement and the following principal onlending terms and conditions: (a) for purpose of carrying out Part A.1 of the Project: (i) the principal amount of the On-lending Loan shall be: (A) the equivalent of the aggregate amount of the principal of all Sub-loans made in Dong and/or in Dollars out of the proceeds of the Credit allocated to Category 1(a) of the table in paragraph 1 of Schedule 1 to this Agreement; (B) onlent in Dong and in Dollars corresponding to the currency of the principal amount of the RDF II Sub-loans; (C) in respect of the principal of said Sub-loans made in Dong, repaid by BIDV in Dong in an amount equivalent at the time of withdrawal to the amounts withdrawn from time to time from the Credit Account under the above-mentioned Category (1)(a) in respect of such Sub-loans; and (D) in respect of the principal of said Sub-loans made in Dollars, repaid by BIDV in Dollars in an amount equivalent at the time of repayment to the value of the currency or currencies withdrawn from time to time from the Credit Account under the above-mentioned Category (1)(a) in respect of such Sub-loans; (ii) interest on the principal amount withdrawn and outstanding made in Dong and in Dollar shall be payable by BIDV at a per annum fixed or variable rate of interest established in a manner satisfactory to the Association, which shall include a margin of at least two percent (2%) to cover full operating costs of BIDV in respect to the Subsidiary Loans and BIDV Additional Financing, including provision for loan losses thereof; (iii) commitment charges shall be payable on the amount so on-lent but not yet withdrawn from time to time at the rate payable by the Borrower under Section 2.04 (a) of this Agreement; and (iv) the principal amount shall be repaid in twenty five (25) years including a grace period of eight (8) years on the principal. (b) For purposes of carrying out Part A.2 of the Project: (i) the principal amount of the On-lending Loan shall be: (A) the equivalent of the aggregate amount of the principal of all Sub-loans made in Dong out of the proceeds of the Credit allocated to Category 1(b) of the table in paragraph 1 of Schedule 1 to this Agreement; (B) onlent in Dong corresponding to the currency of the principal amount of the MLF Sub-loans; and (C) repaid by BIDV in Dong in an amount equivalent at the time of withdrawal to the amounts withdrawn from time to time from the Credit Account under the above-mentioned Category (1)(b) in respect of such Sub-loans; (ii) interest on the principal amount withdrawn and outstanding made in Dong shall be payable by BIDV at a per annum fixed or variable rate of interest established in a manner satisfactory to the Association, which shall include a margin of at least two percent (2%) to cover full operating costs of BIDV in respect to the Subsidiary Loans, including provision for loan losses thereof; (iii) commitment charges shall be payable on the amount so on-lent but not yet withdrawn from time to time at the rate payable by the Borrower under Section 2.04 (a) of this Agreement; and (iv) the principal amount shall be repaid in twenty (25) years including a grace period of eight (8) years on the principal. (c) For purposes of carrying out Part B of the Project the Borrower shall onlend to BIDV an amount out of the proceeds of the Credit, allocated from time to time to Categories (2) through (4) of the table in paragraph 1 of Schedule 1 to this Agreement under terms and conditions satisfactory to the Association. Section 3.05. For purposes of carrying out Part A.1 of the Project, BIDV shall relend to each PFI an amount out of the proceeds of the Credit allocated from time to time to Category (1)(a), under a RDF II Subsidiary Loan Agreement to be entered into between BIDV and each PFI under terms and conditions satisfactory to the Association, which shall include those set forth in the RDF II Policy Manual and in Part A of Section II of Schedule 5 to this Agreement, and the following principal onlending terms and conditions: (a) the principal amount of the RDF II Subsidiary Loan shall be: (i) equivalent to the aggregate amount of the principal of all RDF II Subsidiary Loans made out of the proceeds thereof by BIDV; (ii) onlent in Dong or in Dollars; (iii) in respect of RDF II Sub-loans made in Dong, repaid by the PFI in Dong in an amount equivalent at the time of withdrawal to the amounts withdrawn from time to time from the Credit Account under Category (1)(a) in respect of such RDF II Sub-loans; and (iv) in respect of RDF II Sub-loans made in Dollars, repaid by the PFI in Dollars in an amount equivalent at the time of repayment to the value of the currency or currencies withdrawn from time to time from the Credit Account under Category (1)(a) in respect of such RDF II Sub- loans; (b) interest on the principal amount withdrawn and outstanding of a Subsidiary Loan made in Dong shall be payable at a per annum rate of interest established in a manner satisfactory to the Association; (c) interest on the principal amount withdrawn and outstanding of a Subsidiary Loan made in Dollars shall be payable at the London interbank offered rate for six months deposits in Dollars plus a margin sufficient to cover full operating costs of BIDV in respect of the Subsidiary Loan, including provision for loan losses thereof; (d) commitment charges shall be payable on the amount so on-lent but not yet withdrawn from time to time at the rate payable by the Borrower under Section 2.04 (a) of this Agreement; and (e) the principal amount of such RDF II Subsidiary Loans shall be repaid in accordance with an amortization schedule which corresponds to the composite of the amortization schedules of such RDF II Subsidiary Loans. Section 3.06. For purposes of carrying out Part A.2 of the Project, BIDV shall relend to each MFI an amount out of the proceeds of the Credit allocated from time to time to Category (1)(b), under an MLF Subsidiary Loan Agreement to be entered into between BIDV and each MFI under terms and conditions satisfactory to the Association, which shall include those set forth in the MLF Policy Manual and in Part B of Section II of Schedule 5 to this Agreement, and the following principal onlending terms and conditions: (a) the principal amount of the MLF Subsidiary Loan shall be: (i) the equivalent of the aggregate amount of the principal of all MLF Subsidiary Loans made out of the proceeds thereof by BIDV to the relevant MFI; (ii) onlent in Dong; and (iii) be repaid by the MFI in Dong in an amount equivalent at the time of withdrawal to the amounts withdrawn from time to time from the Credit Account under Category (1)(b); (b) interest on the principal amount withdrawn and outstanding of an MLF Subsidiary Loan made in Dong shall be payable at a per annum rate of interest established in a manner satisfactory to the Association; (c) commitment charges shall be payable on the amount so on-lent and not yet withdrawn from time to time at the rate payable by the Borrower under Section 2.04 (a) of this Agreement; and (d) the principal amount of such MLF Subsidiary Loans shall be repaid in accordance with an amortization schedule which corresponds to the composite of the amortization schedules of such MLF Subsidiary Loans. Section 3.07. PFIs and MFIs shall make Sub-loans under terms and conditions satisfactory to the Association, which shall include those set forth in Section III of Schedule 5 to this Agreement Section 3.08. Except as the Association shall otherwise agree, : (a) procurement of the goods, works and consultants’ services required for the carrying out of Sub-projects under Part A of the Project and to be financed out of the proceeds of the Credit through a Sub-loan shall be governed by the provisions of paragraph 4 (b) and (c) of Part A of Section III of Schedule 5 to this Agreement; and (b) procurement of the goods and consultants’ services required for Part B of the Project and to be financed out of the proceeds of the Credit shall be governed by the provisions of Schedule 1 3 to this Agreement. (a) DAWASA shall carry out or cause to be carried out, the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of this Agreement. (b) Section 3.09. For the purposes of Section 9.06 of the General Conditions and without limitation thereto, DAWASA the Borrower shall, in conjunction with the Borrower: (ia) prepare, on the basis of guidelines acceptable to the Association Association, and furnish to the Association not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose among between the Borrower and the Association, the Borrower and DAWASA, a plan for to ensure the future operation sustainability of the Project designed to ensure its sustainability; Project, and (iib) afford the Association a reasonable opportunity to exchange views with DAWASA and the Borrower on the said plan. Section 2.04. Without limitation to its obligations under Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the Project: (a) replenish the Project Account up to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion of the Project, or whenever its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and (b) 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.

Execution of the Project. (a) DAWASA Section 3.01. The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit this Agreement, and, to this end, shall: (i) shall carry out the Project through DGPC with due diligence and efficiency and in conformity with appropriate administrative, financial, engineeringadministrative and engineering practices, environmental, water, sewerage and resettlement practicesall in accordance with an action plan acceptable to the Bank, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project. Section 3.02. The Borrower shall: (a) carry out a technical and economic evaluation of those sections of its road network it proposes to include for rehabili- tation under Part A (4) of the Project; (iib) duly on the basis of said evaluation and punctually perform in accordance with a methodology and criteria acceptable to the provisions Bank select priority roads for rehabilitation under Part A (4) of the Development Contract, Lease Contract and Project; and (c) prior to advertising the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as invitation to protect the interests bid for any contract for works to be carried out under said Part A (4) of the Borrower Project, furnish to the Bank for its review and approval detailed information concerning the Association and accomplish the roads so selected. Section 3.03. For purposes of strengthening the Creditpersonnel management and training systems of DGPC, the Borrower shall: (a) establish and maintain a Training Directorate to be headed by an experienced Director with qualifications satisfactory to the Bank and appoint and maintain qualified and experienced staff required for the purpose. Such Directorate shall be responsible inter alia, for: (i) liaising with, agencies outside of MEH in charge of training of personnel, vocational education and training institutions within the Borrower’s territory as well as outside; (ii) organizing seminars and fellowship programs; and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract establishing and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices.implementing a training monitoring system; and (b) Without limitation upon establish and maintain a Steering Committee within DGPC. Such Steering Committee shall be responsible inter alia, for: (i) preparing the provisions general outline of paragraph the Training Directorate’s annual work program; (ii) approving the training plan and programs prepared by such Directorate and allocating the necessary resources; and (iii) reviewing the training actions undertaken and designing measures to improve such training. Section 3.04. For purposes of strengthening the maintenance and operation systems within MEH, the Borrower shall: (a) of this Section establish and except as maintain a Road Maintenance Organization and Method Unit to be chaired by an experienced manager with qualifications satisfactory to the Association Bank; and (b) appoint and DAWASA maintain qualified and experienced staff required for the purpose. Such Unit shall otherwise agreebe responsible inter alia, DAWASA shall carry out for: (i) improving the Project in accordance methods and guidelines for maintenance operations; and (ii) coor- dinating with the Implementation Program set forth in Schedule 2 to this AgreementEquipment Maintenance Directorate and Training Directorate and providing technical assistance at the regional level. Section 2.023.05. Except as the Association Bank shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Credit Loan shall be governed by the provisions of Schedule 1 4 to this Agreement. (a) DAWASA shall carry out or cause to be carried out, the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of this Agreement. (b) For the purposes of Section 9.06 of the General Conditions and without limitation thereto, DAWASA shall, in conjunction with the Borrower: (i) prepare, on the basis of guidelines acceptable to the Association and furnish to the Association not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose among the Association, the Borrower and DAWASA, a plan for the future operation of the Project designed to ensure its sustainability; and (ii) afford the Association a reasonable opportunity to exchange views with DAWASA and the Borrower on the said plan. Section 2.04. Without limitation to its obligations under Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the Project: (a) replenish the Project Account up to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion of the Project, or whenever its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and (b) 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.

Execution of the Project. (a) DAWASA The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit this Agreement, and, and to this end, shall: (i) shall carry out the Project through ESF, with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage administrative and resettlement managerial practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project;. (b) The Borrower shall enter into subsidiary contractual arrangements, satisfactory to the Association, with ESF providing, inter alia, for: (i) the transfer of the proceeds of the Credit on a grant basis to ESF for purposes of carrying out the Project; and (ii) duly and punctually perform the obligation of ESF to carry out the Project in accordance with the provisions of the Development Contract, Lease Contract terms and the DAWASA Subloan Agreement all its obligations therein conditions set forth and in this Agreement, including, without limitation, carrying out the Project in accordance with the Implementation Program set forth in Schedule 4 to this Agreement. (c) The Borrower shall exercise its rights thereunder under the Subsidiary Contractual Arrangements in such manner as to protect the interests of the Borrower and the Association Association, and to accomplish the purposes of the Credit; and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Association and DAWASA shall otherwise agree, DAWASA the Borrower shall carry out the Project in accordance with the Implementation Program set forth in Schedule 2 to this Agreementnot change, assign, amend, abrogate or waive such Subsidiary Contractual Arrangements or any provision thereof. Section 2.023.02. Except as the Association shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Credit shall be governed by the provisions of Schedule 1 3 to this Agreement. Section 3.03. The Borrower shall cause ESF, until Project completion: (a) DAWASA shall carry out or cause to be carried out, the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 keep all of the General Conditions (relating key personnel positions detailed on the Organizational Chart, including those at the Director through the Executive Director level, filled with employees possessing experience and qualifications acceptable to insurancethe Association, use and to consult with the Association with respect to replacement of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of this Agreement.any such key personnel prior to any such replacement; and (b) For to employ any fixed-term staff financed in whole or in part out of the purposes proceeds of the Credit with persons having qualifications and experience, and on terms and conditions of employment, satisfactory to the Association. Section 9.06 3.04. The Borrower shall: (a) maintain the Interagency Committee until completion of the Project; (b) cause the Interagency Committee to monitor or supervise the monitoring of the socio-economic effects of Subprojects; and (c) cause ESF and the Interagency Committee to carry out, with the assistance of MINPLAN, the study referred to in Part B.2 (i) of Schedule 2 of the First ESF Credit Agreement under terms of reference satisfactory to the Association, and furnish the results of such study, by March 31, 1988, to the Association for its review and comment. (a) Without any limitation to or restriction upon its other reporting requirements under the General Conditions and without limitation theretothis Agreement, DAWASA the Borrower shall, in conjunction with the Borrowerand shall cause ESF: (i) prepare, on the basis of guidelines acceptable to the Association and furnish to the Association not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose among exchange views with the Association, at all such times as the Borrower and DAWASAAssociation shall reasonably request, a plan for but in any event on or about November 30, 1988, with regard to the future operation progress of the Project designed and Sub-projects, the management of the operations of ESF, the performance of personnel, including key personnel, of ESF, the performance by ESF of its obligations under the Subsidiary Contractual Arrangements, and the performance by ESF, Implementing Entities and Supervising Entities of their respective obligations under Subproject Agreements, and other matters relating to ensure its sustainabilitythe purposes of the Credit; and (ii) afford the Association a reasonable opportunity to exchange views with DAWASA the Association, at all such times as the Association shall reasonably request, but in any event on or about May 30, 1988, and at six-month intervals thereafter until Project completion, with regard to the procurement practices and procedures being followed by ESF, Implementing Entities or sponsors of Subprojects in connection with awarding contracts. (b) The Borrower shall, and shall cause ESF, based upon recommendations made by the Association following any of the exchanges of views referred to in the preceding subparagraph (a), within ninety days after receiving such recommendations, either to revise and update the Project and its implementation in a manner satisfactory to the Association or to reach agreement with the Association on a plan of action for such revising and updating. The matters to be included in such revising and updating, shall include, as appropriate, the said planallocation of resources, the granting of further commitments, the management of ESF’s operations, the staffing, including key personnel, of ESF, the procedures for approving Subprojects, the implementation of Subprojects, the supervision and monitoring of Subprojects, Implementing Entities and Supervising Entities, the procurement practices of ESF, Implementing Entities and sponsors of Subprojects, and other matters related to the Project. Section 2.043.06. Without limitation to or restriction upon its obligations other reporting requirements under Section 2.01 of the General Conditions and this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the ProjectBorrower shall and shall cause ESF to: (a) replenish promptly inform the Association of any condition which interferes, or threatens to interfere, with the progress of the Project Account up to and Subprojects, the initial amount accomplishment of seven hundred fifty million Tanzanian Shillings the purposes of the Credit, or the performance of ESF of its obligations under the Subsidiary Contractual Arrangements, or the performance of ESF, Implementing Entities and Supervising Entities under Subproject Agreements; (Tshs 750,000,000b) at provide by July 1, 1988 and thereafter by the end first day of each October, January, April and July, reports of such scope and in such detail as the Association shall reasonably request, on the progress of obtaining Additional Funding, other sources of funds, the application of funds and the progress of implementing the Project Quarter until the completion of the Project, or whenever its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000)and Subprojects; and (bc) ensure that amounts deposited into provide by March 31, 1990, a report, of such scope and in such detail as the Project Account Association shall be used exclusively reasonably request, on the operations of ESF during the 1988 and 1989 calendar years. (a) The Association and the Borrower agree that: (i) the Borrower shall cause ESF to make payments to meet expenditures made request approval of, or to be made in respect authorization for withdrawal of the reasonable cost of goods, works and services for the Project in addition to those financed from the proceeds of the CreditCredit with respect to, Subprojects in a prompt, timely and expeditious manner; and (ii) the Association shall promptly review and respond to such requests referred to in subparagraph (i) of this Section within a reasonable period of time. (b) Any Subproject (i) whose cost does not exceed the equivalent of $250,000;

Execution of the Project. (a) DAWASA The Borrower declares its commitment to the objectives objective of the Project as set forth in Schedule 2 to the Development Credit this Agreement, and, to this end, shall: (i) shall carry out the Project through DECS, with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practicesmanagement practices for quality elementary education, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project; (ii) duly and punctually perform in accordance with the provisions of the Development Contract, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Association Borrower and DAWASA the Bank shall otherwise agree, DAWASA the Borrower shall carry out the Project in accordance with the Implementation Program set forth in Schedule 2 5 to this Agreement. (c) The Borrower shall, in respect of each DEDP under Part B.2 of the Project, through the respective DECS-DO enter into a memorandum of agreement satisfactory to the Bank with the respective provincial and municipal LGUs, parent representatives and other concerned parties, which shall set forth the obligations of each party to implement such DEDP in accordance with the TEEP Guidelines. (d) The Borrower shall, in respect of Part B.2 (c) of the Project, ensure that: (i) DECS and DOF enter into a memorandum of agreement, satisfactory to the Bank, whereby the Borrower shall make available to LGUs, through MDF, proceeds of the Loan allocated from time to time to Categories 1 and 2 of the table set forth in paragraph 1 of Schedule 1 to this Agreement, under terms and conditions satisfactory to the Bank; and (ii) DECS and the Department of Public Works and Highways enter into a memorandum of agreement, satisfactory to the Bank, whereby the administration and implementa- tion of the school building program for elementary schools in the Project Provinces shall be the responsibility of the respective LGUs. (e) The Borrower shall ensure that DECS and the Department of Budget and Management enter into a memorandum of agreement whereby all central government funding for public elementary education in the Project Provinces will be allocated by divisions, incorporated into the corresponding annual divisional budget and released directly to DECS-DOs. (f) The Borrower shall exercise its rights under each of the memoranda of agreement entered into pursuant to the provisions of paragraphs (c), (d) and (e) of this Section 2.02in such manner as to protect the interests of the Borrower and the Bank and to accomplish the purposes of the Loan, and except as the Bank shall otherwise agree, the Borrower shall not assign, amend, abrogate or waive such memoranda or any provision thereof. Section 3.02. Except as the Association Bank shall otherwise agree, procurement procure- ment of the goods, works and consultants’ services required for the Project and to be financed out of the proceeds of the Credit Loan shall be governed by the provisions of Schedule 1 4 to this Agreement. (a) DAWASA shall carry out or cause to be carried out, the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of this Agreement. (b) Section 3.03. For the purposes of Section 9.06 9.08 of the General Conditions and without limitation thereto, DAWASA the Borrower shall, in conjunction with the Borrower: (ia) prepare, on the basis of guidelines acceptable to the Association Bank, and furnish to the Association Bank not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose among the Association, between the Borrower and DAWASAthe Bank, a plan for the future operation of the Project designed to ensure its sustainabilitythe sustainability of the Project; and (iib) afford the Association Bank a reasonable opportunity to exchange views with DAWASA and the Borrower on the said plan. Section 2.04. Without limitation to its obligations under Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the Project: (a) replenish the Project Account up to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion of the Project, or whenever its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and (b) 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.

Execution of the Project. (a) DAWASA The Privatization Center declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit Loan Agreement, and, to this end, shall: (i) shall carry out its respective activities under the Project with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage commercial and resettlement practicesbusiness standards and practices and in accordance with the Implementation Agreement, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project; (ii) duly and punctually perform in accordance with the provisions carrying out of the Development Contract, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practicesactivities. (b) Without limitation upon the provisions of paragraph (a) of this Section Section, and except as the Association Bank and DAWASA the Privatization Center shall otherwise agree, DAWASA the Privatization Center shall carry out its respective activities under the Project in accordance with the applicable provisions of the Implementation Program Programs set forth in Schedule 2 5 to the Loan Agreement and in the Schedule to this Agreement. Section 2.02. Except as the Association Bank shall otherwise agree, agree procurement of the goods, works and consultants’ services required for the Project purpose of assisting in the carrying out the respective activities of the Privatization Center under Parts B, C and D of the Project, and to be financed out of the proceeds of the Credit Loan, shall be governed by the provisions of Schedule 1 6 to this the Loan Agreement. (a) DAWASA Section 2.03. The Privatization Center shall carry out or cause to be carried out, the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance reports and land acquisitionmaintenance, respectively) in respect of this Agreementits obligations under the Project Agreement and its respective activities under the Project. Section 2.04. (ba) For The Privatization Center undertakes to ensure that any enterprise restructuring services which shall be procured by a Beneficiary Enterprise in connection with the purposes carrying out of Section 9.06 a Sub-project (or be procured by the Privatization Center on behalf of a Beneficiary Enterprise in appropriate instances pursuant to the provisions of the General Conditions Implementation Agreement), shall be provided to such Beneficiary Enterprise under a standard restructuring services contract or other arrangements (the Restructuring Services Contract) to be entered into between the Beneficiary Enterprise and without limitation theretothe consultants, DAWASA shallon appropriate terms and conditions, in conjunction accordance with guidelines established by the BorrowerBorrower for such purposes, which shall be acceptable to the Bank, including inter alia, provisions that: (i) prepare, on the basis of guidelines acceptable to Beneficiary Enterprise shall maintain for each such Sub-project adequate records reflecting the Association receipt and furnish to the Association not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose among the Association, the Borrower and DAWASA, a plan for the future operation utilization of the Project designed to ensure its sustainabilityservices or other facilities provided in connection with the Sub-project; and (ii) afford the Association a reasonable opportunity Beneficiary Enterprise shall make available to exchange views with DAWASA the MOE, MOF, the Privatization Center, LERC and the Borrower on Bank such other information concerning said Sub-project and said Beneficiary Enterprise as the said planparties shall from time to time reasonably request. (b) Each such Restructuring Services Contract shall be subject to approval by the Privatization Center, and the Privatization Center shall ensure the consistency between the Restructuring Services Contract and the Sub-loan Agreement. Section 2.042.05. Without limitation The Privatization Center shall exercise its rights in relation to each Beneficiary Enterprise in such manner as to: (a) protect the interests of the Bank, the Borrower, and the Privatization Center; (b) comply with its obligations under Section 2.01 of this Agreement and the Implementation Agreement, DAWASA shall, for ; and (c) achieve the purposes of making available the counterpart contribution to the financing of the Project:. Section 2.06. The Privatization Center shall duly perform all its obligations under the Implementation Agreement. Except as the Bank shall otherwise agree, the Privatization Center shall not take or concur in any action which would have the effect of amending, abrogating, assigning or waiving the Implementation Agreement or any provision thereof. (a) replenish The Privatization Center shall, at the Project Account up request of the Bank, exchange views with the Bank with regard to the initial amount progress of seven hundred fifty million Tanzanian Shillings its respective activities under the Project, the performance of its obligations under this Agreement and other matters relating to the purposes of the Loan. (Tshs 750,000,000b) at The Privatization Center shall promptly inform the end Bank of each Project Quarter until any condition which interferes or threatens to interfere with the completion progress of the Project, or whenever its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and (b) 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 accomplishment of the reasonable cost of goods, works and services for the Project in addition to those financed from the proceeds purposes of the CreditLoan, or the performance by the Privatization Center of its obligations under this Agreement.

Execution of the Project. (a) DAWASA The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit this Agreement, and, to this end, shall: (i) shall carry out Part B.1 of the Project with due diligence and efficiency and in conformity with appropriate administrative, financial, engineeringeconomic, environmental, water, sewerage and resettlement practices, urban development practices and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for such Part of the Project; and (ii) without limitation or restriction upon any of its other obligations under the Development Credit Agreement, shall cause NHA to perform all its obligations set forth in the Project Agreement, shall take or cause to be taken all action, including the provision of funds, facilities, services and other resources, necessary or appropriate to enable NHA to perform such obligations, and shall not take or permit to be taken any action which would prevent or interfere with such performance. (b) The Borrower shall relend the proceeds of the Credit to NHA under a subsidiary loan (the Subsidiary Loan) under terms and conditions acceptable to the Association, which shall be set forth in an agreement between the Borrower and NHA (the Subsidiary Loan Agreement). Among the terms and conditions to be set forth shall be those pertaining to the utilization of such proceeds by NHA to accomplish the purposes of the Credit in respect of Part A of the Project, including, in particular: (i) a requirement that NHA utilize the proceeds of the Subsidiary Loan exclusively for expenditures incurred under Sub-projects; (ii) duly a description of contractual, administrative or other arrangements adequately specifying the manner of exercise by NHA, as and punctually perform when needed in accordance order to facilitate the establishment of a conndominium in respect of any Sub-project, of any power conferred by the Borrower to transfer to purchasers of condominium units. Rights in respect of any buildings, land and infrastructure constituting the Ancillary Property Contribution for such Sub-project (the Property Transfer Arrangements); and (iii) a uniform procedure for the valuation of the Ancillary Property Contribution upon transfer of such property to a condominium association, for purposes of facilitating the consistent application by NHA of sound cost estimation principles in connection with the provisions establishment and implementation of the Development Contract, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and a uniform pricing policy. (c) The Borrower shall exercise its rights thereunder under the Subsidiary Loan Agreement and in respect of the Property Transfer Arrangements in such manner as to protect the interests of the Borrower and the Association and to accomplish the purposes of the Credit; and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Association and DAWASA shall otherwise agree, DAWASA shall carry out the Project in accordance with the Implementation Program set forth in Schedule 2 to this Agreement. Section 2.02. Except as the Association shall otherwise agree, procurement of the goodsBorrower shall not assign, works and consultants’ services required for amend, abrogate or waive the Project and to be financed out of the proceeds of the Credit shall be governed by the provisions of Schedule 1 to this AgreementSubsidiary Loan Agreement or any provision thereof. (a) DAWASA shall carry out or cause to be carried out, Section 3.02. The Borrower and the Association hereby agree that the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of this Agreement. (b) For the purposes of Section 9.06 of the General Conditions Parts A and without limitation thereto, DAWASA shall, in conjunction with the Borrower: (i) prepare, on the basis of guidelines acceptable to the Association and furnish to the Association not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose among the Association, the Borrower and DAWASA, a plan for the future operation B.2 of the Project designed shall be carried out by NHA pursuant to ensure its sustainability; and (ii) afford the Association a reasonable opportunity to exchange views with DAWASA and the Borrower on the said plan. Section 2.04. Without limitation to its obligations under Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing 2.03 of the Project: (a) replenish the Project Account up to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion of the Project, or whenever its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and (b) 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 CreditAgreement.

Execution of the Project. (a) DAWASA The Borrower declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit Agreement, this Agreement and, to this end, shall: (i) shall carry out the Project with due diligence and efficiency and in conformity with appropriate administrativeadmin- istrative, financial, engineering, environmental, water, sewerage management and resettlement development financing practices, and shall provide, or cause to be provided, promptly as needed, . (b) The Borrower shall: (i) maintain the funds, facilities, services and other resources required for Project Coordinating Committee at least until the Project;completion of disbursements from the Loan Account; and (ii) duly coordinate and punctually perform in accordance with monitor the overall execution of the Project and supervise the carrying out by Partici- pating Financial Institutions of the provisions of their respective Subsidiary Financing Agreements. Section 3.02. For the Development Contractpurpose of carrying out of the Project, Lease Contract the Borrower shall: (a) relend to the Participating Financial Institutions the equivalent of the proceeds of the Loan under subsidiary financing agreements to be entered into between the Borrower and each of the DAWASA Subloan Agreement all its obligations therein Participating Financial Institutions, under terms and conditions which shall have been approved by the Bank and which shall include, without limitation, those set forth and shall in Schedule 4 to this Agreement; (b) exercise its rights thereunder in relation to each Participating Financial Institution under its Subsidiary Financing Agreement in such manner as to protect the interests of the Borrower and the Association Bank and to accomplish the purposes of the CreditLoan and, except as the Bank shall otherwise agree, the Borrower shall not assign, amend, abrogate or waive any such Agreement or any provision thereof; and (iiic) cause take all such action and exercise all such recourse available to it under the Operator Subsidiary Financing Agreement with the Participating Financial Institutions as the Bank may reasonably request in order to carry out ensure the prompt and full performance of each Participating Financial Institution of its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Association and DAWASA shall otherwise agree, DAWASA shall carry out the Project in accordance with the Implementation Program set forth in Schedule 2 to this its respective Subsidiary Financing Agreement. Section 2.023.03. Except as the Association The Borrower shall otherwise agree, procurement of the goods, works and consultants’ services required for the Project and take or cause to be financed taken all necessary measures to permit tourism and manufacturing enter- prises which earn foreign exchange in connection with their opera- tions to continue to maintain foreign currency denominated accounts in Mauritius with permissible ceilings which would at least cover, inter alia, one installment of principal and interest and other charges falling due under a Sub-loan made by a Partici- pating Financial Institution out of the proceeds of the Credit shall be governed Loan on- lent to it by the provisions of Schedule 1 to this AgreementBorrower. (a) DAWASA shall carry out or cause to be carried out, the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition, respectively) in respect of this Agreement. (b) For the purposes of Section 9.06 of the General Conditions and without limitation thereto, DAWASA shall, in conjunction with the Borrower: (i) prepare, on the basis of guidelines acceptable to the Association and furnish to the Association not later than six (6) months after the Closing Date or such later date as may be agreed for this purpose among the Association, the Borrower and DAWASA, a plan for the future operation of the Project designed to ensure its sustainability; and (ii) afford the Association a reasonable opportunity to exchange views with DAWASA and the Borrower on the said plan. Section 2.04. Without limitation to its obligations under Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the Project: (a) replenish the Project Account up to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion of the Project, or whenever its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and (b) 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.

Execution of the Project. (a) DAWASA declares its commitment to the objectives of the Project as set forth in Schedule 2 to the Development Credit Agreement, and, to this end, shall: (i) Section 3.01. The Recipient shall carry out the Project with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage financial and resettlement environmental practices, and shall provide, or cause to be provided, promptly as needed, the funds, facilities, services and other resources required for the Project; (ii) duly and punctually perform in accordance with the provisions of the Development Contract, Lease Contract and the DAWASA Subloan Agreement all its obligations therein set forth and shall exercise its rights thereunder in such manner as to protect the interests of the Borrower and the Association and accomplish the purposes of the Credit; and (iii) cause the Operator to carry out its obligations under the Project, Lease Contract and DAWASA Subloan Agreement with due diligence and efficiency and in conformity with appropriate administrative, financial, engineering, environmental, water, sewerage and resettlement practices. (b) Without limitation upon the provisions of paragraph (a) of this Section and except as the Association and DAWASA shall otherwise agree, DAWASA shall carry out the Project in accordance with the Implementation Program set forth in Schedule 2 to this Agreement. Section 2.023.02. Except as the Association Administrator shall otherwise agree, procurement of the goods, works goods and consultants’ ' services required for the Project and to be financed out of the proceeds of the Credit Grant shall be governed by the provisions of Schedule 1 3 to this Agreement. (a) DAWASA The Recipient shall carry out maintain or cause to be carried out, the obligations set forth in Sections 9.03, 9.04, 9.05, 9.06, 9.07 and 9.08 of the General Conditions (relating to insurance, use of goods and services, plans and schedules, maintained records and reportsaccounts adequate to reflect in accordance with sound accounting practices the operations, maintenance resources and land acquisition, respectively) expenditures in respect of this Agreementthe Project of the departments or agencies of the Recipient responsible for carrying out the Project or any part thereof. (b) For the purposes of Section 9.06 of the General Conditions and without limitation thereto, DAWASA The Recipient shall, in conjunction with the Borrower: (i) preparehave the records and accounts referred to in paragraph (a) of this Section for each fiscal year audited, in accordance with appropriate auditing principles consistently applied, by independent auditors acceptable to the Administrator; (ii) furnish to the Administrator as soon as available, but in any case not later than six months after the end of each such year, the report of such audit by said auditors, of such scope and in such detail as the Administrator shall have reasonably requested; and (iii) furnish to the Administrator such other information concerning said records and accounts and the audit thereof as the Administrator shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Grant Account were made on the basis of guidelines acceptable statements of expenditure, the Recipient shall: (i) maintain or cause to the Association be maintained, in accordance with paragraph (a) of this Section, records and furnish to the Association not later than six accounts reflecting such expenditures; (6ii) months retain, until at least one year after the Closing Date or such later date as may be agreed for this purpose among Administrator has received the Association, the Borrower and DAWASA, a plan audit report for the future operation of fiscal year in which the Project designed last withdrawal from the Grant Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Administrator's representatives to ensure its sustainabilityexamine such records; and (iiiv) afford ensure that such records and accounts are included in the Association a reasonable opportunity annual audit referred to exchange views with DAWASA and the Borrower on the said plan. Section 2.04. Without limitation to its obligations under Section 2.01 of this Agreement, DAWASA shall, for the purposes of making available the counterpart contribution to the financing of the Project: (a) replenish the Project Account up to the initial amount of seven hundred fifty million Tanzanian Shillings (Tshs 750,000,000) at the end of each Project Quarter until the completion of the Project, or whenever its balance shall be less than two hundred fifty million Tanzanian Shillings (Tshs 250,000,000); and in paragraph (b) ensure of this Section and that amounts deposited into the Project Account shall report of such audit contains a separate opinion by said auditors as to whether the statements of expenditure submitted during such fiscal year, together with the procedures and internal controls involved in their preparation, can be used exclusively relied upon to make payments to meet expenditures made or to be made in respect of support the reasonable cost of goods, works and services for the Project in addition to those financed from the proceeds of the Creditrelated withdrawals.