Supplemental Letter 2 KINGDOM OF NEPAL ________________________, 2003 International Development Association 1818 H Street NW Washington, DC 20433 United States of America Re: NEPAL: Credit No. 3808 NEP (Community School Support Project) Paragraph B.1 of Schedule 4 to the Development Credit Agreement Performance Monitoring Indicators Dear Sirs and Mesdames: This letter is with reference to paragraph B.1 of Schedule 4 to the Development Credit Agreement of even date herewith between the Kingdom of Nepal (the Borrower) and the International Development Association (the Association) for the above-captioned Project. Unless agreed otherwise with the Association, the Borrower 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 /s/ Bhanu Prasad Acharya Authorized Representative Attachment Attachment Nepal: Community School Support Project Key Performance Indicators Project Monitoring Baseline and Targets Baseline Mid-term End of 06/30/03 09/30/04 Project 07/15/06 Outcome/Impact Indicator Target Target Fully supported schools Out-of-school children of primary age in the service area, % a 80% of a 50% of a Out-of-school children of age 6 in the school service area, % b 70% of b 33% of b Weighted average repetition and dropout rate of primary grades c 90% of c 75% of c together, % Out-of-school girls of primary age in the service area, % d 85% of d 55% of d Out-of-school dalit children of primary age in the service area, % e 90% of e 60% of e Out-of-school disadvantaged ethnic minority children of primary age f 90% of f 60% of f in the service area, % Out-of-school girls of age 6 in the school service area, % g 70% of g 33% of g Out-of-school dalit children of age 6 in the school service area, % h 70% of h 33% of h Out-of-school disadvantaged ethnic minority children of age 6 in the i 70% of i 33% of i service area, % Average gender gap in secondary and lower secondary education, % j 90% of j 75% of j Gender gap in rate of transition from primary to lower secondary k 90% of k 75% of k grades, % Non-dalit to dalit gap in rate of transition from primary to lower l 90% of l 75% of l secondary grades, % Gender gap in rate of transition from primary to secondary grades, % m 90% of m 75% of m Non-dalit to dalit gap in rate of transition from primary to secondary n 90% of n 75% of n grades, % Weighted average repetition and dropout rates of lower secondary o 95% of o 80% of o grades, % Weighted average repetition and dropout rates of secondary grades, % p 95% of p 80% of p Key Performance Indicators Baseline Mid-term End of Project 06/30/03 09/30/04 07/15/06 Output Indicators Number of schools transferred to community 86 700 1,500 management Number of schools receiving full support from 0 200 250 the project Fully supported schools Training of NGOs/SOs 250 300 Number of schools communities mobilized 200 250 Number of school communities oriented 1,000 1,300 Number of civil servants and social workers 600 1000 oriented Number of teachers receiving customized 1,000 1,500 training Number of staff supported for developmental 5 10 assignments Participatory monitoring modalities developed Y Y Community mobilization modalities and Y Y modalities for school management/governance by communities including developed modalities for ensuring of management committees representing all cross sections of parents developed Framework terms of reference for employment Y of teachers by community managed schools developed Roles of local government, district education Y office and other line agencies with respect to community-managed schools in terms of funding, technical assistance, supervision and monitoring clarified Frameworks for performance grants and social Y Y contracts for improvements of access including innovative scholarship modalities developed 2 Seble Berhanu M:\legsa\Nepal\Community School Support\Supplemental Letter2_Conf (PMI).doc July 8, 2003 10:02 AM 3