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Page 1 KINGDOM OF NEPAL September 8, 1999 International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Re: NEPAL: Credit No. 3215-NEP (Rural Infrastructure Project) Performance Monitoring Indicators Dear Sirs and Mesdames: This refers to paragraph 17(a) of Schedule 4 to the Development Credit Agreement of even date herewith between the Kingdom of Nepal and the International Development Association. Unless agreed otherwise with the Association, the Kingdom of Nepal shall monitor and evaluate implementation of the Project in accordance with the Performance Monitoring Indicators attached to this letter. Very truly yours, KINGDOM OF NEPAL By /s/ Ram Binod Bhattarai Authorized Representative