Conformed Copy - C3498 - Community Development Project - Supplemental Letter 1

Page 1 REPUBLIC OF MADAGASCAR May 22, 2001 International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Re: Credit No. 3498 MAG (Community Development Project) Performance Indicators Dear Sirs: We refer to Schedule 4 of the above-referenced Development Credit Agreement and, in particular, to paragraph 6 thereof, and confirm, on behalf of the Republic of Madagascar that the performance indicators agreed upon between the Republic of Madagascar and the Association are as shown in the Annex to this letter. It is our understanding that, in making the above Credit, the Association may rely on the statements herein set forth or referred to. Very truly yours, REPUBLIC OF MADAGASCAR By /s/ Tanteley Gabrio Andrianarivo Authorized Representative