Conformed Copy - L7058 - Metro Manila Urban Transport Integration Project - Supplemental Letter 1

Page 1 REPUBLIC OF THE PHILIPPINES August 8, 2001 International Bank for Reconstruction and Development 1818 H Street, N.W. Washington, D.C. 20433 Re: Loan No. 7058 PH and GEF Trust Fund Grant No.TF029804 (Metro Manila Urban Transport and Integration Project) Performance Indicators Dear Sirs and Madams: I refer to the Loan Agreement (Loan Agreement) of even date herewith between the Republic of the Philippines (the Borrower) and International Bank for Reconstruction and Development (the Bank) for the Metro Manila Urban Transport and Integration Project (the Project), to the Project Agreement of same date between the Bank and Metropolitan Manila Development Authority (the Project Agreement) for the above-captioned Project, and to the GEF Trust Fund Grant Agreement of same date between the Bank as implementing agency of the Global Environment Facility and the City of Marikina. For purposes of paragraph 3(a) of Schedule 4 to the Loan Agreement, and paragraph 3(a) of Schedule 3 to the GEF Trust Fund Grant Agreement, the Borrower and the Recipient, respectively, will monitor and evaluate on an ongoing basis, in accordance with the indicators set forth in the Annex to this Letter. Please confirm your agreement to the foregoing by signing the form of confirmation in the space provided below. Sincerely yours, By /s/ Jose Isidro Camacho Authorized Representative REPUBLIC OF THE PHILIPPINES By /s/ Ma. Lourdes C. Fernando Authorized Representative CITY OF MARIKINA AGREED: INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By /s/ Robert Vance Pulley Authorized Representative