Conformed Copy - L4547 - Urban Transport Project - Supplemental Letter

Page 1 REPUBLIC OF UZBEKISTAN June 5, 2000 International Bank for Reconstruction and Development 1818 H Street, N.W. Washington, D.C. 20433 United States of America Re: Loan No. 4547 UZ (Urban Transport Project) Paragraph 1 of Schedule 5 of the Loan Agreement Performance Monitoring Indicators Dear Sirs and Mesdames: This refers to Paragraph 1 of Schedule 5 of the Loan Agreement (Urban Transport Project) of even date herewith between the Republic of Uzbekistan (the Borrower) and the International Bank for Reconstruction and Development (the Bank), for the above captioned Loan. The Borrower hereby confirms to the Bank that the indicators set forth in the attachment to this letter shall serve as a basis for the Borrower to monitor and evaluate the progress of the Project and the achievements of the objectives thereof. Very truly yours, REPUBLIC OF UZBEKISTAN By /s/ S. Safayev Authorized Representative Attachment Performance Monitoring Indicators Uzbekistan – Urban Transport Project The following indicators will be used to monitor and evaluate the carrying out of the Project and the achievement of its objectives: A - Achievement of Project Development Objectives 1. Adequacy of the supply of urban transport services in the five participating cities vis a vis passenger demand as measured by: (a) the total number of passenger-space - kilometers supplied on an average work day in each city, and (b) the average waiting time per passenger; 2. Adequacy of operational management and vehicle maintenance by main urban transport operators in the participating cities as measured by the coefficient of utilization of their bus fleet; 3. Fair competition in the bidding process for bus route franchises in the participating cities; 4. Quality of the planning of urban transport systems and administration of franchise contracts by the City Administrations in the participating cities; 5. Annual ratio of operating expenditures (including depreciation) to revenues Page 2 (including any subsidy payment for the transport of privileged passengers) for main urban transport operators in the participating cities. B – Carrying out of the Project 1. Number of new buses procured by June 30, 2002; 2. Establishment of sound arrangements for the leasing of the new buses on a full cost recovery basis by June 30, 2001; 3. Number of “Belde