Conformed Copy - L4413 - Third Rural Finance Project - Supplemental Letter 3

Page 1 LAND BANK OF THE PHILIPPINES December 11, 1998 International Bank for Reconstruction and Development 1818 H Street, N.W. Washington, D.C. 20433 Re: Loan No. 4413 PH (Third Rural Finance Project) Performance Indicators Ladies and Gentlemen: I refer to the Loan Agreement of even date herewith between International Bank for Reconstruction and Development (the Bank) and the Land Bank of the Philippines (the Borrower) and the Guarantee Agreement of even date herewith between the Republic of Philippines and the Bank for the above-noted Project. For purposes of Paragraph IV 1(a) of Schedule 5 to the Loan Agreement, the Borrower shall monitor and evaluate the carrying out of the Project in accordance with the indicators set forth in the Annex to this Letter. Please confirm your agreement to the foregoing by signing on the form of confirmation below. Sincerely yours, LAND BANK OF THE PHILIPPINES By /s/ Florida P. Casuela Authorized Representative AGREED: INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By /s/ Vinay Bhargava Authorized Representative