OFFICIALDOCUMENTS

CREDIT NUMBER 6295-TZ

Financing Agreement(Sustainable Rural Water Supply and Sanitation Program)

between

THE UNITED REPUBLIC OF TANZANIA

and

INTERNATIONAL DEVELOPMENT ASSOCIATION

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CREDIT NUMBER 6295-TZ

FINANCING AGREEMENT

AGREEMENT dated as of the Signature Date between the UNITED REBUBLICOF TANZANIA ("Recipient") and the INTERNATIONAL DEVELOPMENTASSOCIATION ("Association"). The Recipient and the Association hereby agree asfollows:

ARTICLE I - GENERAL CONDITIONS; DEFINITIONS

1.01. The General Conditions (as defined in the Appendix to this Agreement) apply toand form part of this Agreement.

1.02. Unless the context requires otherwise, the capitalized terms used in this Agreementhave the meanings ascribed to them in the General Conditions or in the Appendixto this Agreement.

ARTICLE II - FINANCING

2.01. The Association agrees to extend to the Recipient a credit, deemed by theAssociation to be on concessional terms, as set forth or referred to in thisAgreement, in an amount equivalent to two hundred forty-three million and fourhundred thousand Special Drawing Rights (SDR 243,400,000) (variously,"Credit" and "Financing"), to assist in financing:

(a) the program as described in Part 1 ("Program") of Schedule I to thisAgreement; and

(b) the project as described in Part 2 ("Project") of Schedule 1 to thisAgreement,

(the Program and the Project hereinafter jointly referred to as the "Operation").

2.02. The Recipient may withdraw the proceeds of the Financing in accordance withSection IV of Schedule 2 to this Agreement. All withdrawals from the FinancingAccount to which the amount of the Credit allocated for the Program is creditedshall be deposited by the Association into an account specified by the Recipientand acceptable to the Association.

2.03. The Maximum Commitment Charge Rate is one-half of one percent (1/2 of 1%)per annum on the Unwithdrawn Financing Balance.

2.04. The Service Charge is three-fourths of one percent (3/4 of 1%) per annum on theWithdrawn Credit Balance.

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2.05. The Payment Dates are December I and June I in each year.

2.06. The principal amount of the Credit shall be repaid in accordance with therepayment schedule set forth in Schedule 3 to this Agreement.

2.07. The Payment Currency is Dollar.

ARTICLE III - OPERATION

3.01. The Recipient declares its commitment to the objective of the Operation. To thisend, the Recipient shall carry out, through MoWI, MoEST, PO-RALG andMoHCDGEC, the Operation in accordance with the provisions of Article V of theProgram General Conditions, Article V of the Project General Conditions, andSchedule 2 to this Agreement.

ARTICLE IV - EFFECTIVENESS; TERMINATION

4.01. The Additional Condition of Effectiveness consist of the following, namely, theRecipient has prepared and adopted an Operations Manual satisfactory to theAssociation.

4.02. The Effectiveness Deadline is the date ninety (90) days after the Signature Date.

4.03. For purposes of Section 10.05 (b) of the General Conditions, the date on which theobligations of the Recipient under this Agreement (other than those providing forpayment obligations) shall terminate is twenty (20) years after the Signature Date.

ARTICLE V - REPRESENTATIVE; ADDRESSES

5.01. The Recipient's Representative is its Minister of Finance and Planning.

5.02. For purposes of Section 11.01 of the General Conditions,

(a) the Recipient's address is:

Ministry of Finance and PlanningTreasury Square Building18 Jakaya Kikwete RoadP.O. Box 280240468 DodomaThe United Republic of Tanzania; and

(b) the Recipient's Electronic Address is:

Facsimile:(255) 262 963 109

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5.03. For purposes of Section 11.01 of the General Conditions:

(a) The Association's address is:

International Development Association1818 H Street, N.W.Washington, D.C. 20433United States of America; and

(b) the Association's Electronic Address is:

Telex: Facsimile:

248423 (MCI) 1-202-477-6391

AGREED as of the Signature Date.

THE UNITED REPUBLIC OF TANZANIA

By

Authorized Representative

Name:Title:Date:

INTERNATIONAL DEVELOPMENT ASSOCIATION

By

u rized Representative

Name: 6dL 94Title: (Date:

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SCHEDULE I

Operation Description

The objectives of the Operation are to increase access to rural water supply andsanitation services in Participating Districts and strengthen the capacity of select sectorinstitutions to sustain service delivery.

The Operation consists of the Program and the Project as follows:

Part 1: The Program

The Program consists of the following activities:

1 . Supporting Participating Districts' sustained access to improved water services inrural areas by:

(a) investing in soundly designed and properly constructed water schemes;

(b) rehabilitating and repairing non-functional water points; and

(c) monitoring and conducting maintenance activities on existing waterschemes to ensure they remain functional.

2. Promoting increased access to improved sanitation services in rural areas by:

(a) rehabilitating and constructing sanitation and hygiene facilities in ruralhealth centers and public schools;

(b) carrying out activities which promote and facilitate the upgrading andimprovement of household sanitation and hygiene facilities; and

(c) providing support to villages to enable them to reach Community WideSanitation Status.

3. Strengthening the capacity of sector institutions to sustain service delivery in ruralareas including:

(a) providing incentives to the Participating Districts to improve the operationand maintenance of water supply by registering COWSOs for existingschemes;

(b) supporting the establishment and operationalization of the Recipient's newdelivery model for the rural water sector, by providing incentives to theAgency to work with LGAs and COWSOs to facilitate establishment of a

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mechanism for the management, operation and maintenance of rural watersupply schemes; and

(c) providing training to staff to improve the quality of service delivery.

Part 2: The Project

The Project consists of the following activities to assist with the implementationof the Program and to mitigate implementation risks:

(a) establishing an integrated reporting and management information systems,and providing support to MoWI, MoHCDGEC and PO-RALG inimproving their capacity to collect, consolidate and use real-time data onservice delivery for planning and monitoring of Program activities;

(b) recruitment of a strategic program support consultant to carry out a rangeof activities in support of the effective implementation of the Program,

(c) recruitment of an independent verification agent and developing a detailedverification protocol;

(d) conducting a national behavioral change and communication sanitationcampaign;

(e) strengthening the capacity of the Water Institute and the Drilling and DamsConstruction Agency ("DDCA") through provision of Training, technicaladvisory services and acquisition of the relevant equipment; and

(f) provision of technical advisory services and Training to strengthen thecapacity of institutions to promote effective implementation of theProgram including, improving the capacity to supervise borehole drilling,prepare engineering designs, standardize equipment, and apply simplewater treatment applications.

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SCHEDULE 2

Operation Execution

Section I. Implementation Arrangements

A. Operation Institutions

1. MoWI, MoEST and MoHCDGEC

(a) The Recipient shall designate, at all times during the implementation ofthe Operation, the Ministry of Water and Irrigation ("MoWI") with theoverall responsibility for the Operation's implementation assisted by theMinistry of Education, Science and Technology ("MoEST") and theMinistry of Health, Community Development, Gender, Elderly andChildren ("MOHCDGEC") to be responsible for the implementation ofProgram activities, and the Recipient shall take all actions, including, theprovision of personnel and resources to enable said institutions to performtheir functions under the Operation.

(b) The Recipient shall ensure that: (i) the MoWI works in close collaborationwith the PO-RALG to implement Operation activities, through the LGAs,at the local level; and (ii) said PO-RALG is maintained at all times duringthe implementation of the Operation with the mandate, staffing andresources satisfactory to the Association.

2. PCU

(a) The Recipient shall maintain, at all times during the implementation of theOperation, the Program Coordination Unit, with functions, staffing andresources satisfactory to the Association for the purpose of ensuringprompt and efficient overall coordination, day to day implementation of,and communication relating to Project activities and results. To this end,the Recipient shall appoint staff including, a strategic program supportconsultant, all with qualifications, experience and terms of referenceacceptable to the Association.

(b) The PCU shall be responsible for: (i) coordinating the Program; (ii)overseeing and planning training and capacity building activities; (iii)supporting the implementation of the Project's procurement plan; and, (iv)monitoring and evaluation of the activities including the IVA DLIVerification Report.

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3. National Steering Committee

(a) The Recipient shall not later than twelve (12) months from theEffectiveness Date, establish and thereafter maintain throughout theimplementation of the Operation, the National Steering Committeecomprising of MoW1, MoHCDGEC, MoEST, PO-RALG, MoFP and theAgency to oversee the coordination and monitoring, and verify progressof implementation, of the Program and the Project.

(b) The Recipient shall ensure that said institutions have staffing andappropriate resources to fulfill their respective functions under theProgram and/or the Project.

B. Additional Program Implementation Arrangements

Program Action Plan

1 . The Recipient shall carry out the Program Action Plan, or cause the ProgramAction Plan to be carried out, in accordance with the schedule set out in the saidProgram Action Plan in a manner satisfactory to the Association.

Independent Verification Agent

2. The Recipient shall:

(a) within six (6) months from the Effectiveness Date appoint and thereaftermaintain, at all times during the implementation of the Program,independent verification agents under terms of reference acceptable to theAssociation ("Verification Agents"), to verify the data and other evidencesupporting the achievement of one or more DLIs as set forth in the tablein Section IV.A.2. of this Schedule 2 and recommend correspondingpayments to be made, as applicable.

(b) (i) ensure that the Verification Agents carry out verification andprocess(es) in accordance with the Verification Protocol; and (ii) submitto the Association the corresponding verification reports in a timelymanner and in form and substance satisfactory to the Association.

(c) In the event there is a need for verification services prior to theappointment of the Verification Agents in accordance with sub-paragraph(a) above, put in place adequate interim arrangement satisfactory to theAssociation and approved in writing by the Association for verification ofthe DLIs.

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C. Operations Manual

1. The Recipient shall:

prepare and furnish to the Association for its review, an Operations Manual settingout detailed institutional, administrative, financial, technical and operationalguidelines and procedures for the implementation of the Program, the Project,Program Action Plan, and including: (i) detailed safeguards, financial management(including funds flow and budgeting) and procurement arrangements; and (ii) amonitoring and verification system for the Program.

2. The Recipient shall not amend, abrogate or suspend, or permit to be amended,abrogated or suspended any provision of the Operations Manual without the priorwritten agreement of the Association.

3. Notwithstanding the foregoing, if any provision of the Operations Manual isinconsistent with the provisions of this Agreement, the provisions of thisAgreement shall prevail.

D. Safeguard Requirements for the Project

For TA activities: In carrying out activities under the Project, the Recipient shallensure that all technical assistance under the Project, application of whose resultswould have environmental or social implications, shall only be undertakenpursuant to terms of reference reviewed and found satisfactory by the Association,such terms of reference to ensure that the technical assistance takes into account,and calls for application of the Association's environmental and social safeguardspolicies and the Recipient's own laws relating to the environment and socialaspects.

E. Annual Work Plans and Budget for the Project

1 . For purposes of implementation of the Project, the Recipient shall:

(a) prepare a draft annual work plan and budget ("AWPB") for each FY,setting forth, inter alia: (i) a detailed description of the planned activitiesunder the Project for the following FY; (ii) the sources and proposed useof funds therefor; (iii) procurement arrangements therefor; and(iv) responsibility for the execution of said Project activities, budgets, startand completion dates, outputs and monitoring indicators to track progressof each activity;

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(b) not later than April 30th of each FY, and after considering commentsprovided by the Program Steering Committee (referred to in Section 1.A. 1above), furnish the draft AWPB to the Association for its review, andpromptly thereafter finalize the AWPB, taking into account theAssociation's comments thereon; and

(c) by June 15' of each FY, adopt and implement the final AWPB afterobtaining the Association's approval thereon.

F. Midterm Review

The Recipient shall:

(a) carry outjointly with the Association, not later than June 30, 2021, or suchother date as may be agreed with the Association, after the Effective Date,a midterm review to assess the status of Operation implementation. Suchreview shall include an assessment of the following: (i) overall progress inimplementation; (ii) results of monitoring and evaluation activities;(iii) progress on procurement and disbursement; (iv) implementationarrangements; and (v) the need to make any adjustments to the Operationand reallocate funds to improve performance;

(b) to this end, prepare and furnish to the Association, no later than one (1)month before such review, a report, in scope and detail satisfactory to theAssociation and integrating the results of the monitoring and evaluationactivities performed pursuant to Section 5.08 (a), respectively, of theProgram General Conditions and the Project General Conditions, on theprogress achieved in the carrying out of the Operation during the periodpreceding the date of such report and setting out the measuresrecommended to ensure the efficient carrying out of the Operation and theachievement of the objectives thereof during the period following suchdate; and

(c) thereafter take all measures required to ensure the efficient completion ofthe Operation and the achievement of the objectives thereof, based on theconclusions and recommendations of such report and the Association'sviews on the matter.

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Section II. Excluded Activities

1. The Recipient shall ensure that the Program excludes any activities which:

(a) in the opinion of the Association, are likely to have significant adverseimpacts that are sensitive, diverse, or unprecedented on the environmentand/or affected people; or

(b) involve the procurement of: (1) works, estimated to cost US$ 50,000,000equivalent or more per contract; (2) goods, estimated to cost US$30,000,000 equivalent or more per contract; (3) non-consulting services,estimated to cost US$ 30,000,000 equivalent or more per contract; or (4)consultants' services, estimated to cost US$ 15,000,000 equivalent ormore per contract.

Section III. Operation Monitoring, Reporting and Evaluation

The Recipient shall fumish to the Association each Program Report and ProjectReport not later than forty-five (45) days after the end of each calendar semester,covering the semester.

Section IV. Withdrawal of Financin2 Proceeds

A. General

1. Without limitation upon the provisions of Article II of the Program GeneralConditions, and Article 11 of the Project General Conditions, and in accordancewith the Disbursement and Financial Information Letter, the Recipient maywithdraw the proceeds of the Financing to finance: (a) with respect to the Program,the results ("Disbursement Linked Results" or "DLRs") achieved by the Recipient,as measured against specific indicators ("Disbursement Linked Indicators" or"DLIs") in the amount allocated against Categories (1) through (8) of the belowtable; and (b) with respect to the Project, finance Eligible Expenditures in theamount allocated and, if applicable, up to the percentage set forth against Category(9) of the below table.

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Category (including Disbursement linked Result Amount of DLR allocation and disbursement Percentage ofDisbursement Linked Financing formula (expressed in SDR or Dollars) EligibleIndicator, as applicable) (expressed in Expenditures to be

SDR) financed(inclusive of taxes)

(1) DLI#1: Number of people with access to 52,150,000 52,150,000Number of people with access to an Improved Water Supply System Not applicablean Improved Water SupplySystem Formula: SDR17.00 per person who has

gained access to an improved water supplysystem in the Program area.

(2) DLI #2: Number of Number of Sustainably 20,850,000 SDR 20,850,000Sustainably Functioning Water Functioning Water Points Not applicablePoints

Formula: SDR 114 per SustainablyFunctioning Water Point in the Programarea.

(3) DLI#3: Number of people Number of people with access to an 13,900,000 13,900,000with access to an Improved Improved Sanitation Facility Not applicableSanitation Facility Formula: SDR 3 per person who has

gained access to an Imporved SanitationFacility in the Program area.

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(4) DLI #4: Number of schools with Improved 20,850,000 SDR 20,850,000 Not applicableNumber of public primary Sanitation and Hygiene Facilitiesschools with access to Improved Formula: SDR 13,900 is allocated for eachSanitation and Hygiene Facilities school gained access to an Improved

Sanitation and Hygiene Facilities in theProgram area.

(5) DLI #5: Number of villages that achieve 17,400,000 SDR 17, 400,000 Not applicableNumber of villages that achieve and sustain CWSSand sustain Community-Wide FormulasSanitation Status (CWSS) SDR 11,136.00 per new community

achieving Community Wide SanitationStatus

SDR 1,740 per village that has sustainedCWSS

(6) DLI#6: Number of villages Number of villages with COWSO 76,500,000 Formula: SDRIO,432 per village Not applicablewith COWSO with Improved with Improved Operation and achieving Level I and SDR 10,432 perOperation and Maintenance Maintenance Capacity for Water village achieving Level II in the ProgramCapacity for Water Supply Supply Services area.Services

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(7) DLI#7: Number of Number of Participating Districts 13,900,000 Formula: SDR 15,985.00 is allocated for Not applicable

Participating Districts submitting submitting Accurate and Complete each Participating District that achievesAccurate and Complete Sector Sector M&E Data the defined annual reporting criteria forM&E Data rural water supply, and SDR 15,985.00 is

allocated for each Participating Districtthat achieves the defined annual reportingcriteria for rural sanitation and hygiene.

(8). DLI # 8 Agency DLR #8.1: Agency Established 13,900,000 SDR 13,900,000 Not applicable

Established and OperationalizedDLR #8.1:SDR 2,780,000

DLR #8:2 Agency's audit unit DLR #8.2:and quality assurance and quality SDR 2,780,000control mechanism operationalDLR 8:3 DLR #8.3:Technical Support Implemented in SDR 2,780,00010 percent (10%) of COWSOs

DLR#8:4 DLR #8.4:Technical Support SDR 2,780,000Implemented in 30 percent(30%) of COWSOsDLR#8:5 DLR #8.5:Technical Support SDR 2,780,000Implemented in 50 percent(50%) of COWSOs

(9) Goods, non- consulting, Not applicable 13,950,000 100%consulting services, TrainingOperating Costs under Part 2 ofthe Operation.TOTAL AMOUNT 243,400,000

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B. Withdrawal Conditions for the Program

1. Notwithstanding the provisions of Part A of this Section, with respect to Categories(1) through (8) (the Program), no withdrawal shall be made:

(a) for purposes of Section 2.03 of the Program General Conditions, for DLRsachieved prior to the Signature Date; and

(b) for any DLR until and unless the Recipient has furnished evidencesatisfactory to the Association that said DLR has been achieved, includingverification reports from the Verification Agent, based on reports preparedby the Recipient certifying the achievement of the DLRs in accordancewith the Verification Protocol.

2. Notwithstanding the provisions of Part B.1(b.) of this Section, with respect to theProgram, the Recipient may withdraw an amount not to exceed $72,500,000 as anadvance; provided, however, that if the DLRs in the opinion of the Association,are not achieved (or only partially achieved) by the Closing Date, the Recipientshall refund such advance (or portion of such advance as determined with referenceto the Verification Protocol) to the Association promptly upon notice thereof bythe Association. Except as otherwise agreed with the Recipient, the Associationshall cancel the amount so refunded. Any further withdrawals requested as anadvance under any Category shall be permitted only on such terms and conditionsas the Association shall specify by notice to the Recipient.

3. Notwithstanding the provisions of Part B.I(b) of this Section, with respect to theProgram, if any of the DLR has not been achieved by the date by which the saidDLR is set to be achieved, the Association may, by notice to the Recipient:

(a) authorize the withdrawal of such lesser amount of the unwithdrawnproceeds of the Financing then allocated to said Category which, in theopinion of the Association, corresponds to the extent of achievement ofsaid DLR, said lesser amount to be calculated in accordance with theformulas set out in the table in Section IV.A of Schedule 2 to thisAgreement;

(b) reallocate all or a portion of the proceeds of the Financing then allocatedto said DLR to any other DLR; and/or

(c) cancel all or a portion of the proceeds of the Financing then allocated tosaid DLR.

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C. Withdrawal Conditions for the Project

Notwithstanding the provisions of Section V.A of this Schedule, no withdrawalshall be made from Category (9) for payments made in respect of the Project priorto the Signature Date.

D. Operation Withdrawal Period

The Closing Date is July 31, 2024.

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SCHEDULE 3

Repayment Schedule

Principal Amount of the CreditDate Payment Due repayable

(expressed as a percentage) *

On each June I and December 1, 1.5625commencing December 1, 2024 to andincluding June 1, 2056

* The percentages represent the percentage of the principal amount of the Credit to berepaid, except as the Association may otherwise specify pursuant to Section 3.05 (b) of theGeneral Conditions.

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APPENDIX

A. Definitions

1. "Accurate and Complete Sector M&E Data" means data which meets the criteriaon accuracy and completeness as set forth in the Operations Manual.

2. "Agency" means the agency to be established by MoWI, responsible for thedevelopment, management and ensuring sustainable rural water supply andsanitation service; or any legal successor thereto.

3. "Agency Established and Operationalized" means the milestones for setting up andoperationalizing the Agency as set forth in the Operations Manual have been met.

4. "Approval of Agency Structure and Planning" means that the Recipient throughMoWI has approved the Agency's structure and plans which focus on thesustainability of rural water supply satisfactory to the Association.

5. "Anti-Corruption Guidelines" means for purposes of paragraph 5 of the Appendixto the Program General Conditions the Association's "Guidelines on Preventingand Combating Fraud and Corruption in Program-for-Results Financing," datedFebruary 1, 2012, and revised July 10, 2015; and for purposes of paragraph 5 ofthe Appendix to the Project General Conditions the "Guidelines on Preventing andCombating Fraud and Corruption in Projects Financed by IBRD Loans and IDACredits and Grants", dated October 15, 2006 and revised in January 2011 and asof July 1, 2016.

6. "Category" means a category set forth in the table in Section IV.A.2 of Schedule 2to this Agreement.

7. "Community Wide Sanitation Status" means a village which has achieved thecriteria with regard to sanitation services including: (a) open defecation free; (b)household access to an improved sanitation facility; (c) households access to ahandwashing facility; and (d) all public primary schools in the village haveimproved sanitation and handwashing facilities (as described and defined in theOperations Manual).

8. "COWSO" means Community-Owned Water Supply Organization.

9. "CWSS" or "Community Wide Sanitation Status" means a stage whencommunities are free from open defecation and have improved sanitation facilitiesas defined in the Operations Manual.

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10. "Disbursement Linked Indicator" or "DLI" means in respect of a given Category,the indicator related to said Category as set forth in the table in Section IV.A.2 ofSchedule 2 to this Agreement.

11. "Disbursement Linked Result" or "DLR" means in respect of a given Category,the result under said Category as set forth in the table in Section IV.A.2 ofSchedule 2 to this Agreement, on the basis of the achievement of which, theamount of the Financing allocated to said result may be withdrawn in accordancewith the provisions of said Section IV.

12. "Drilling and Dams Construction Agency ("DDCA")" means the agency withinMOWI established on the March 26, 1999 pursuant to the Recipient's ExecutiveAgencies Act No. 30 of 1997.

13. "FY" means the Tanzanian Fiscal Year, the fiscal year of the Recipient whichcommences on July I and ends on June 30.

14. "General Conditions" means the Program General Conditions and/or the ProjectGeneral Conditions, as the case may be.

15. "Improved Sanitation Facility" means a sanitation facility which hygienicallyisolates human excreta from human contact and meets the criteria set forth in theOperations Manual.

16. "Improved Sanitation and Hygiene Facilities" means a sanitation facility whichisolates human excreta from human contact, provides area for washing hands andmeets other criteria set forth in the Operations Manual.

17. "Level I" means the level at which COWSOs effectively operate their water pointspursuant to criteria set forth in the Operations Manual.

18. "Level II" means the additional requirements to Level I at which COWSO'seffectively operate and sustain their water points pursuant to criteria set forth inthe Operations Manual.

19. "LGA" or "Local Government Authority" means the local governments inTanzania of which article 145 of the constitution gives recognition to localgovernment and is supported by the Local Government (District Authorities) Act1982 and the Local Government (Urban Authorities) Act 1982.

20. "MoEST" means the Recipient's Ministry of Education, Science and Technologyor its successor.

21. "MoHCDGEC" means the Recipient's Ministry of Health, CommunityDevelopment, Gender, Elderly and Children or its successor.

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22. "Operation" means, collectively, all activities described under the Program and theProject in Schedule to this Agreement.

23. "Operating Costs" means the incremental expenses incurred on account of Projectimplementation, based on the Annual Work Plans and Budgets approved by theAssociation pursuant to Section I.B.2 of Schedule 2 to this Agreement, includingoffice equipment and supplies, vehicle operation and maintenance, communicationcosts, office administration costs, utilities, travel and per diem, excluding thesalaries of the Recipient's civil servants.

24. "Operations Manual" means the manual to be prepared and adopted by theRecipient, satisfactory to the Association and referred to in Section I.C of Schedule2 to this Agreement, as the same may be amended from time to time with theAssociation's prior written concurrence.

25. "Operation and Maintenance Capacity for Water Supply Services" means thecapacity of COWSO to meet the requirements for Level I and Level II as definedin the Operations Manual.

26. "PO-RALG" means the Recipient's President's Office - Regional Administrationand Local Government or its legal successor thereto.

27. "Participating Districts" means the districts in Part B of the Appendix to thisAgreement, selected in accordance with criteria set forth in the Operations Manualand any other additional districts as may be agreed from time to time with the priorwritten approval of the Association

28. "PO-RALG" means the President's Office-Regional Administration and LocalGovernment or its successor.

29. "Procurement Regulations" means, for purposes of paragraph 87 of the Appendixto the General Conditions, the "World Bank Procurement Regulations for IPFBorrowers", dated July 2016, revised November 2017.

30. "Project" means the activities described in Part 2 of the Operation.

31. "Project General Conditions" means the "International Development AssociationGeneral Conditions for IDA Financing, Investment Project Financing", dated July14, 2017.

32. "Program Action Plan" means the Recipient's plan dated May 29, 2018 andreferred to in Section I.B of Schedule 2 to this Agreement, as may be amendedfrom time to time with the agreement of the Association.

33. "Program" means the activities described in Part 1 of the Operation.

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34. "Program Coordination Unit" or "PCU" means the coordination unit within theMOWI, responsible for coordinating the implementation of the Program and theProject and referred to in Section I.A.2 of Schedule 2 to this Agreement.

35. "Program General Conditions" means the "International Development AssociationGeneral Conditions for IDA Financing, Program-for-Results Financing", datedJuly 14, 2017.

36. "Signature Date" means the later of the two dates on which the Recipient and theAssociation signed this Agreement and such definition applies to all references to"the date of the Financing Agreement" in the General Conditions.

37. "Sustainably Functioning Water Points" means a water point that providesadequate and accessible water supply to the population as set forth in theOperations Manual.

38. "Training" means the cost associated with the training and workshops forreasonable expenditures (other than expenditures for consultants' services),including: (a) travel, room, board and per diem expenditures incurred by trainersand trainees in connection with their training and by non-consultant trainingfacilitators; (b) course fees; (c) training facility rentals; (d) training materialpreparation, acquisition, reproduction and distribution expenses; and (e) othercosts directly related to training preparation and implementation.

39. "Training and Capacity Building Plan" means the plan for training and buildingthe capacity of the Recipient's environmental inspectors as further defined in theOM.

40. "Verification Agents" means independent entities to be engaged by the Recipientfor the purposes of certifying the achievement of the DLRs as referred to in SectionI.D. 1 of Schedule II to this Agreement.

41. "Verification Protocol" means the Recipient's protocol, acceptable to theAssociation, setting forth the means by which the achievement of DLRs will beverified under the Program, as such Verification Protocol may be amended fromtime to time with the prior written agreement of the Association.

41. "Water Institute" means the executive agency within MOWI established pursuantto Executive Order GN No. 138 of 2008, as amended by GN 216 of 2016, or anylegal successor thereto.

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B. Participating Districts

No. REGION COUNCIL No. REGION COUNCIL No. REGION COUNCIL

I Geita Chato 31 Manyara Babati 62 Singida Singida

2 Mbogwe 32 Hanang 63 Mkalama

3 Geita 33 Simanjiro 64 Manyoni

4 Bukombe 34 Mbulu 65 Itigi

5 Nyang'hwale 35 Kiteto 66 Iramba

6 Iringa Iringa 36 Mwanza Buchosa 67 Ikungi

7 Kilolo 37 Kwimba 68 Shinyanga Ushetu DC

8 Mufindi 38 Magu 69 Kishapu

9 Kagera Bukoba 39 Misungwi 70 Shinyanga

10 Karagwe 40 Sengerema 71 Msalala

11 Biharamulo 41 Ukerewe 72 Simiyu Maswa

12 Ngara 42 Mara Rorya 73 Bariadi

13 Muleba 43 Musoma 74 Busega

14 Kyerwa 44 Bunda 75 Meatu

15 Missenyi 45 Serengeti 76 Itilima

16 Katavi Miele 46 Tarime 77 Songwe Ileje

17 Mpanda 47 Butiama 78 Mbozi

18 Nsimbo 48 Mtwara Masasi 79 Momba

19 Mpimbwe 49 Mtwara 80 Songwe

20 Kigoma Buhigwe 50 Nanyumbu 81 Tabora Tabora(Uyui)

21 Kakonko 51 Newala 82 Nzega22 Kasulu 52 Tandahimba 83 Urambo23 Kibondo 53 Ruvuma Mbinga 84 Igunga24 Kigoma 54 Namtumbo 85 Kaliua

25 Uvinza 55 Songea 86 Sikonge

26 Lindi Kilwa 56 Nyasa

27 Lindi 57 Tunduru

28 Liwale 58 Madaba

29 Nachingwea 59 Rukwa Kalambo

30 Ruangwa 60 Sumbawanga

61 Nkasi