Conformed Copy - C3564 - Demobilization and Reintegration Project - Supplemental Letter 1

Page 1 KINGDOM OF CAMBODIA October 11, 2001 International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Re: Credit No.3564 KH (Demobilization and Reintegration Project) Performance Indicators Dear Sirs: We are pleased to refer to Schedule 4 to the above mentioned Development Credit Agreement and more particularly, to paragraph II.1 thereof, and to confirm, on behalf of the Borrower, that the performance indicators agreed upon between the Association and the Borrower for the purposes of the Project are as shown 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, KINGDOM OF CAMBODIA By /s/ Roland Eng Authorized Representative Annex Demobilization and Reintegration Project Key Performance Indicators (Actual numbers in comparison to objectives et out in the Annual Work Plan and Budget for the reporting period) 1. Number of soldiers removed from military records and payroll database, as verified by review of records by the independent monitoring and evaluation consultant. 2. Number and value of cash and in-kind transitional support payments delivered to veterans at discharge, as verified by review of financial records interviews with veterans and direct observation. 3. Number of veteran families who have received reintegration assistance packages, as verified by review of records. 4. Type and value of reintegration assistance packages designed, selected and delivered on time to each veteran family, including assets, counseling and training, and based on community and family needs assessment as provided in the Project Implementation Manual verified by review of case files and household surveys in the field.