Conformed Copy - C3380 - Health Sector Development Project - Supplemental Letter 1

Page 1 July 12, 2000 The Honourable Daniel N. Yona Minister of Finance Ministry of Finance P.O. Box 9111 Dar es Salaam, Tanzania Dear Sir: Credit No. 3380 TA (Health Sector Development Project) Triggers for Moving to the Second Phase We refer to the above-mentioned Development Credit Agreement (the Agreement) and to the Borrower’s request that the Association support its Program through a series of Credits. This is to record our understanding that, in order for the Association to approve the subsequent Credit in support of the Program, the Borrower would be required to have achieved the indicators attached to this letter. Sincerely, INTERNATIONAL DEVELOPMENT ASSOCIATION By /s/ Theodore O. Ahlers Acting Regional Vice President Africa Region CONFIRMED: UNITED REPUBLIC OF TANZANIA By /s/ Mustafa Nyang’anyi Authorized Representative Attachment HEALTH SECTOR DEVELOPMENT PROJECT TRIGGERS FOR MOVING TO SECOND PHASE Program Phases Performance Triggers Means of Verification Phase I to Phase II (to be evaluated by appraisal for Phase II, tentatively planned for March 2003). 1. A health sector program integrated in GOT's Medium-Term Expenditure Framework (MTEF), with at least 50% of donor resources for the sector reflected in the MTEF. 2. 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. Page 2 3. National guidelines for an Essential Health package completed, costed, district management teams trained for its use, and quality assurance program for basic services in place. 4. For HIV/AIDS, high level national bodies (NABA, NAC, NACP) to oversee the multi-sectoral response, strengthened in staff and fully functional. 5. Common disbursement, reporting, monitoring and evaluation systems developed and tested. 6. At least 75% of the Phase I credit disbursed or committed. GOT budget/MTEF; Sector program documents. District health plans; Quarterly financial and physical progress reports from districts; Audit reports. Guidelines for essential health package; Training report. National HIV/AIDS Fund established and operational. Successful implementation of pilot joint disbursement through GOT systems; Quarterly reports. Quarterly financial and physical reports.