Public Disclosure Authorized CONFORMED COPY Public Disclosure Authorized Public Disclosure Authorized DEVELOPMENT CO-OPERATION AGREEMENT (Kidatu Hydroelectric Project Second Stage Financing) between KINGDOM OF SWEDEN and UNITED REPUBLIC OF TANZANIA Public Disclosure Authorized Dated August 12, 1976
DEVELOPMENT CO-OPERATION AGREEMENT (Kidatu Hydroelectric Project Second Stage Financing) between the KINGDOM OF SWEDEN (hereinafter called Sweden) and the UNITED REPUBLIC OF TANZANIA (hereinafter called Tanzania). WHEREAS (A) Tanzania has requested Sweden to assist in the financing of a hydroelectric project (hereinafter called the Project) described in Schedule 1 to Joint Financing Agreement (as defined in Recital (C) hereinafter). Sweden is willing to agree to such request upon the terms and conditions hereinafter set forth; (B) the International Bank for Reconstruction and Development (hereinafter called the Bank) and Tanzania have executed and delivered an agreement (hereinafter called the Bank Loan Agreement) of even date herewith, providing for the Bank to make a loan to Tanzania in order to assist in the financing of the Project; (C) Sweden, Tanzania, the Bank and the Tanzania Electric Supply Company Limited (hereinafter called the Company) have executed and delivered an agreement (hereinafter called the Joint Financing Agreement) of even date herewith, in respect of the allocation, withdrawals and use of the proceeds of the financing under the Swedish Development Co-operation Agreement and the Bank Loan Agreement, the execution of the Project, as well as other matters; NOW THEREFORE, Sweden and Tanzania agree as follows:
I -2- ARTICLE I The Swedish Grant 1. Sweden shall make available to Tanzania an amount of eighty million Swedish Kronor (Skr8o,ooo,ooo) (hereinafter called the Swedish Grant) subject to the provisions set forth or referred to in this Agreement and to such other provisions as may be agreed upon between the Parties. 2. The Swedish Grant shall be financed out of the total amount made available each fiscal year by Sweden for development cooperation with Tanzania. 3. The provisions set forth in the annual agreements on Development Co-operation between the Parties shall be applied to the Swedish Grant. 4. Amounts to be made available for withdrawal during each Swedish fiscal year shall be agreed upon in the above-mentioned annual agreements between Sweden and Tanzania concluded prior to the respective Swedish fiscal year, provided that sufficient amounts shall be so agreed and made available in each fiscal year to allow the withdrawal of the Swedish Grant to be made in accordance with the provisions of Article I of the Joint Financing Agreement.
-3- ARTICLE II Use of the Proceeds of the Swedish Grant Tanzania shall cause the proceeds of the Swedish Grant to be used by the Company in accordance with this Agreement and the Joint Financing Agreement to assist, jointly with the loan provided for under the Bank Loan Agreement, in financing the Project. ARTICLE III The Special Account The amount to be made available in accordance with Article I shall be paid by Sweden, as required to meet requests by Tanzania for withdrawals, to the credit of an account in Swedish Kronor opened on the books of the Sveriges Riksbank, Stockholm, acting as agent for Sweden. The account shall be denominated "Bank of Tanzania, Special Account Number Ten (10)" (hereinafter called the Special Account).
-4- ARTICLE IV Withdrawal from the Special Account 1. The Company, on behalf of Tanzania, shall be entitled, subject to the provisions of the Agreement and the Joint Financing Agreement, to withdraw from the Special Account such proportion of the reasonable cost of goods and services required for the Project and to be financed by Sweden and the Bank, either separately or simultaneously, as agreed in terms of the Joint Financing Agreement. accordance with the 2. Closing date for withdrawals, with regard to funds made available under this Agreement, shall be as agreed upon between the Parties. Any balance at the Special Account then shall be retransferred to the total amount made available to Tanzania by Sweden for the actual fiscal year. ARTICLE V Effective Date; Termination 1. This Agreement shall become effective after signature by duly authorized representatives of the Parties and concurrently with the Bank Loan Agreement becoming effective. 2. This Agreement shall terminate when the Parties have fulfilled all obligations arising hereunder.
-5- IN WITNESS WHEREOF, the Kingdom of Sweden and the United Republic of Tanzania, acting through their representatives thereunto duly authorized, have caused this Agreement to be signed. Done in Washington, D.C., on the 12th day of August, 1976, in two original copies in English. FOR THE KINGDOM OF SWEDEN FOR THE UNITED REPUBLIC OF TANZANIA By /s/ U. Dinkelspiel By /s/ Hamza Aziz