Conformed Copy - C3380 - Health Sector Development Project - Supplemental Letter 2

Page 1 July 12, 2000 International Development Association 1818 H Street NW Washington, DC 20433 United States of America Dear Sir: Re: Credit No. 3380 TA (Health Sector Development Project) Key Performance Indicators We refer to Section I, paragraph 9 (a) of Schedule 4 to the Development Credit Agreement of even date herewith between the United Republic of Tanzania (the Borrower) and the International Development Association (the Association) for the above-referenced Credit. We wish to confirm that the key indicators agreed upon between the Borrower and the Association for the purposes of monitoring and evaluating the carrying out of the Project and the achievements of its objectives are as set forth in the attachment to this letter. Very truly yours, THE UNITED REPUBLIC OF TANZANIA By /s/ Mustafa Nyang’anyi Authorized Representative Attachment HEALTH SECTOR DEVELOPMENT PROJECT PERFORMANCE INDICATORS A health sector program integrated in the Government of Tanzania’s Medium-Term Expenditure Framework (MTEF), with at least 50% of donor resources for the sector reflected in the MTEF. Performance-based budgeting and monitoring at the central level introduced and tested. District-based health planning and management system and its financing through block grants, that are linked to outputs/outcomes and performance, operational and tested in at least 30% of the 114 districts. National guidelines for an Essential Health package, completed, costed, district management teams trained for its use, and quality assurance program in place. For HIV/AIDS, high level national bodies (NABA, NAC, NACP) to oversee the multi-sectoral response, strengthened in staff and fully functional. Percentage of children under one year old receiving DPT3 is increased from 71% (1996) to 75% (2003). Percentage of population satisfied with quality, quantity, access, affordability, and Page 2 availability of preventive, curative, and referral health services (baseline and target figures to be established).