Conformed Copy - L4344 - National Transmission Grid Project - Supplemental Letter 4

Page 1 TURKIYE ELEKTRIK ILETIM A.S. March 25, 2002 International Bank for Reconstruction and Development 1818 H St., NW Washington, DC 20433 United States of America Re: Loan No. 4344 TU (National Transmission Grid Project) Performance Indicators - Loan Assumption Agreement Dear Sirs or Mesdames: This refers to the provisions of paragraph 5 (a) of Schedule 5 to the Loan Assumption Agreement (National Transmission Grid Project) of even date herewith between the International Bank for Reconstruction and Development (the Bank) and Turkiye Elektrik Iletim A.S. (the Borrower). The Borrower hereby confirms to the Bank that the performance indicators set forth in the attachment to this letter shall serve as the basis for the Borrower to monitor and evaluate the progress of the Project and the achievement of the objectives thereof. Very truly yours, TURKIYE ELEKTRIK ILETIM A.S. By /s/ Ahmet Altinel Authorized Representative Attachment : a/s Attachment TURKIYE ELEKTRIK ILETIM A.S. Performance Monitoring Indicators Impact/Outcome Indicators UNIT A. Transmission Lines Constructed Page 2 400 kV Transmission lines Km B. Losses in Transmission System % C. Electricity Transmitted tWh D. Capacity of New Substations mVa 2. Financial Indicators A. Funds from Internal Sources/Capital Expenditures % B. Accounts Receivable/Average Daily Revenues days C. Current Assets/Current Liabilities ratio D. Net Revenues/ Debt Service Requirements ratio E. Project Management Reports unit F. Unqualified Audit Unit TARGETS Performance Indicators Unit Base (2001) 2003 2005 400 KV Transmission Lines Km. 14,168 14,800 15,368 Losses in Transmission % 3.3 3.0 2.8 Transformer Capacity MVA 62,762 64,000 66,512 Electricity Transmitted TWh 101.3 112.0 125 3. Financial Indicators There is no financial data for TEIAS for the base year 2001 since the company was only separated from TEAS on October 1, 2001. Page 3 Funds from Internal Sources/Capital Expenditures % N.A. >30 >35 Accounts Receivable /Average Daily Revenues days N.A. <50 <45 Current Ratio Ratio N.A. >1.0 >1.0 Net Revenues/Debt Service Requirements Ratio N.A. >1.5 >1.5 Project Management Reports Unit No Yes Yes Unqualified Audit Report Unit N.A. Yes Yes