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Page 1 December 18, 1997 International Development Association 1818 H Street, NW Washington, DC 20433 USA Re: NEPAL: Credit No. 3009-NEP (Nepal Irrigation Sector Project) Performance Monitoring Indicators Dear Sirs and Mesdames: This refers to paragraph 1 (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 ___________________________ Authorized Representative Attachment