Conformed Copy - L4371 - Magdalena Medio Regional Development Project - Supplemental Letter

Page 1 July 10, 1998 International Bank for Reconstruction and Development 1818 H Street, N.W. Washington, D.C., 20433 United States of America Re: Loan No. 4371-CO (Magdalena Medio Regional Development Project) Section 3.03 of the Loan Agreement This is in connection with the Loan Agreement for the above-mentioned Project of even date herewith (the Loan Agreement) between the Republic of Colombia (the Borrower) and the International Bank for Reconstruction and Development (the Bank). With respect to the provisions of Section 3.03 of the Loan Agreement, particularly paragraph (a) thereof, please find attached the monitoring and evaluation indicators to be used from time to time, during each of our joint reviews that should take place in accordance with the provisions of paragraph (c) of such Section 3.03, in order to measure the progress being made in the carrying out of the Project and in achieving the objectives thereof. The referred indicators may be changed from time to time by agreement between ourselves. Sincerely yours, REPUBLIC OF COLOMBIA By ___________________________ Authorized Representative AGREED: INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By ___________________________ Authorized Representative Date __________________________ ANNEX A. The indicators for purposes of monitoring and evaluating the carrying out of the Project shall be the following: 1. The percentage of the applicable Approved Semi-Annual Plan budget actually spent during the corresponding period taking into account the prevailing circumstances. 2. The perception of progress achieved in the carrying out of the Project according to Consortium staff and representatives of the Borrower and other financiers of Project budget, including the Bank. 3. Size and composition of Citizen’s Network. 4. Percentage of Subprojects implemented with positive results. B. The indicators for purposes of monitoring and evaluating the achievement of the objectives of the Project shall be the following: 1. Perception of direct beneficiaries of Project activities and other interested parties under the Program on whether the Program is operating satisfactorily and that benefits are being realized. Page 2 2. Number of entities which have contributed resources in addition to Project budget, and number or amount of resources so contributed. 3. Financial (other than Transfer Portions) and human resources contributed to the implementation of Subprojects by other parties, such as Municipalities, communities and/or non-profit organizations. 4. Documented evidence that social organization has increased and been strengthened in at least five of the Municipalities in the Region.