Conformed Copy - TF027417 - Build Capacity to Operationalize a Rural Development/Natural Resource Management Plan Performance Monitoring Indcator System - IDF Grant

Page 1 August 27, 2001 Honorable Jose Isidro Camacho Secretary Department of Finance Department of Finance Building Roxas Blvd Manila, Republic of the Philippines Re: Grant to Build Capacity to Operationalize a Rural Development/Natural Resource Management Plan Performance Monitoring Indicator System IDF Grant No. 027417 Dear Sir: I am writing on behalf of the International Bank for Reconstruction and Development (the Bank) to indicate the Bank's agreement to make to Republic of the Philippines (the Recipient) a grant in an amount not exceeding two hundred sixty thousand United States Dollars (US$260,000) (the Grant). The Grant is made in response to the Recipient's request for financial assistance and for the purposes and on the terms and conditions set forth in the Annex to this Letter-Agreement. The Recipient represents, by confirming its agreement below, that it is authorized to contract and withdraw the Grant for the said purposes and on the said terms and conditions. Please confirm your agreement with the foregoing, on behalf of the Recipient, by signing, dating, and returning to us the enclosed copy of this Letter-Agreement. Upon receipt by the Bank of the copy of this Letter-Agreement countersigned by you, this Letter-Agreement will become effective as of the date of the countersignature. Very truly yours, INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By /s/ Robert Vance Pulley Country Director, Philippines East Asia and Pacific Region AGREED: REPUBLIC OF THE PHILIPPINES By /s/ Juanita D. Amatong Undersecretary of Finance Date: August 31, 2001 ANNEX Purposes, Terms, and Conditions of the Grant 1. Purposes and Activities 1.1. The purposes of the Grant are: to test, on a pilot basis, and establish an integrated information support system for plan performance monitoring in the rural development and natural resource management sectors; and to build capacity for sustaining the Planned Performance Indicator System (PPIS). The activities (the Activities) for which the Grant is given are as follows: (a) Based on the initial agreement reached among participating agencies (Agencies) at the September 2000 NEDA workshop, carry out workshops and consultative activities to agree on a list of major final outputs (MFOs) to be provided through individual agency monitoring; expand the initial list of key output and outcome indicators; and develop mechanisms to address any data gaps. Page 2 (b) Design or enhance the monitoring and evaluation systems of Agencies in order to achieve the outputs and indicators and fill the data gaps identified under sub-paragraph (a) above and to be consistent with the proposed PPIS framework. (c) Provide training to enhance the capabilities of Agencies' staff for quantitative analysis. (d) Review, using agreed prioritization criteria, the Agencies' public investment programs, activities and projects for the period ending 2003. (e) Review the capacity and capability of the Sub-Committee on PPIS agencies to support the activities described in sub-paragraphs (a) through (d) above and identify any capacity-building and information technology requirements to provide said support. (f) Test the PPIS on a pilot basis and document the process and results of said test. 2. Implementation Generally 2.1. The Recipient, through the National Economic and Development Authority, shall: (a) carry out the Activities with due diligence and efficiency; (b) promptly provide the funds, facilities, services and other resources required for that purpose; (c) furnish all information covering the Activities and the use of the proceeds of the Grant as the Bank shall reasonably request; (d) from time to time exchange views with the Bank's representatives on the progress and results of the Activities; and (e) take all necessary measures required to enable the Bank