Conformed Copy - C3295 - Local Government Development Program - Supplemental Letter 2

Page 1 December 22, 1999 THE REPUBLIC OF UGANDA International Development Association 1818 H Street N.W. Washington D.C. 20433 United States of America Re: Credit No. 3295-UG (Local Government Development Program) Re: Performance Indicators Dear Sirs: Please refer to the Development Credit Agreement (Local Government Development Program) of even date herewith between the International Development Association (the Association) and The Republic of Uganda (the Borrower) and in particular to paragraph 3 (a) of Schedule 4 to the said Agreement. We hereby confirm, on behalf of the Borrower, that the performance indicators agreed upon by the Association and the Borrower for the purposes of the Project shall be as set out 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, THE REPUBLIC OF UGANDA By /s/ Edith Ssempala Authorized Representative