Conformed Copy - C2957 - Urban Infrastructure Rehabilitation Project - Supplemental Letter

Page 1 REPUBLIC OF NIGER June 20, 1997 International Development Association 1818 H Street, NW Washington, DC 20433 United States of America Re: Credit No. 2957-NIR (Urban Infrastructure Rehabilitation Project) Performance Indicators for Program/Project Monitoring and Evaluation Gentlemen: We refer to Paragraph 2 of Schedule 4 to the Development Credit Agreement (Urban Infrastructure Rehabilitation Project) of even date herewith between the Republic of Niger (the Borrower) and the Association and confirm herein that the following indicators of performance would be used for the purpose of project monitoring and evaluation: IMPLEMENTATION INDICATORS A six-month portfolio of sub-projects and a procurement plan for their execution will be submitted to the Government and the Association not later than June 30 and December 30, every year. Percentage of works contracts with budget overruns: 1997: 10%; 1998: 5%; 1999 and beyond: 0%. Ratio of labor costs versus total costs: above 20 percent. Ratio of NIGETIP’S expenditures versus total amount of works: less than 5 percent on average during the period of project execution and below seven percent annually. Adoption of urban infrastructure development strategies by secondary cities: one per year starting in 1999. Ratio of counterpart funds actually received on time by NIGETIP versus counterpart funds estimated for the bi-annual programs of works: 1997: 50%; 1998: 60%, 1999: 70%, 2000 and beyond: 80%. It is our understanding that, in the course of implementation of the above-mentioned Credit, the Association may rely on the indicators herein set forth or referred to, to evaluate implementation performance. Very truly yours, REPUBLIC OF NIGER By: Authorized Representative