Conformed Copy - L4353 - Enterprise Institution Building Project - Supplemental Letter

Page 1 REPUBLIC OF UZBEKISTAN July 10, 1998 International Bank for Reconstruction and Development 1818 H Street, N.W. Washington, D.C. 20433 United States of America Re: Loan No. 4353 UZ (Enterprise Institution Building Project) (Article III, Section 3.03 (a) of the Loan Agreement) Performance Monitoring Indicators Dear Sirs and Mesdames: This letter refers to Article III, Section 3.03 (a) of the Loan Agreement of this date between the Republic of Uzbekistan (the Borrower) and the International Bank for Reconstruction and Development (the Bank) for the above-captioned Loan. The Borrower hereby confirms to the Bank that the indicators set forth in the attachment to this letter shall serve as a basis for the Borrower to monitor and evaluate the progress of the Project and the achievement of the objectives thereof. Very truly yours, REPUBLIC OF UZBEKISTAN By /s/ Jamshed Saifiddinov Authorized Representative Attachment Enterprise Institution Building Project Monitoring Indicators The following project performance indicators will serve as the basis for monitoring implementation and evaluating progress in achieving project objectives: Completion of 30 restructuring plans for client enterprises, out of which 5 result in a significant increase in efficiency and profitability, in the 5 years of the project. Completion of 13 privatization plans and Government award of privatization contracts according to PIP schedule, with a view to completing at least seven privatization sales. Completion of systems upgrading for the securities market by end of year 3. Completion of 13 candidate training sessions abroad and 60 local candidate training sessions by the end of year 3.