Conformed Copy - L4301 - Early Childhood Development Project - Supplemental Letter 3

Page 1 REPUBLIC OF THE PHILIPPINES April 8, 1998 International Bank for Reconstruction and Development 1818 H Street, N.W. Washington, D.C. 20433 Re: Loan No. 4301 PH (Early Childhood Development Project Performance Indicators Ladies and Gentlemen: I refer to the Loan Agreement of even date herewith between Republic of the Philippines (the Borrower) and the International Bank for Reconstruction and Development (the Bank) for the above-noted Project (the Loan Agreement). For purposes of Paragraph 3 of Part C 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, REPUBLIC OF THE PHILIPPINES By _________________________ Authorized Representative AGREED: INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By _________________________ Authorized Representative Annex Key Performance Indicators A. Region-wide Indicators* 1. Reduction by 30% in the under-five mortality rate from the baseline value (currently estimated at over 35 per thousand). 2. Reduction by 40% in the proportion of children under six with Grade 2 or 3 wasting from the baseline value (currently estimated at around 30%). 3. Reduction by 30% in the proportion of children under six with anemia from the baseline value (currently estimated at around 50% among infants). 4. Increase to 90% in the proportion of children aged 12-18 months fully immunized from the baseline value (currently estimated at under 85%). Page 2 5. Improvement in a combined index of child development (motor and cognitive skills) among children under six (indicator to be developed in the baseline study). 6. Increase in completion rate for Grade 1 to 70% of Grade 1 entrants from the baseline value (currently estimated at 58%). B. Targeted LGU Indicators 1. Increase to 75% in the proportion of total children aged three to five in targeted municipalities attending day-care centers (currently estimated at under 60%). 2. Establishment of functioning protein-energy malnutrition programs in 50% of targeted municipalities and cities by 2003. 3. Establishment of active child development workers in 50% of targeted municipalities and cities by 2003. 4. Implementation of early childhood development sub-projects in 90% of targeted municipalities by 2003. _______________________________ * for each Project Region separately and an average for all three weighted by baseline numbers of poor children in each Region.