OFFICIAL DOCUMENTS Annex 1 Amended Supplemental Letter No. 2 REPUBLIC OF CROATIA International Bank for Reconstruction and Development 1818 H Street, N.W. Washington, D.C. 20433 United States of America Ociob< 44 , 2018 Re: Loan No. 8258- HR (Second Science and Technology Project) Monitoring and Evaluation Indicators Dear Sirs and Mesdames: This refers to paragraph A. 1 of Section II of Schedule 2 to the Loan Agreement of even date herewith between the Republic of Croatia (the Borrower) and the International Bank for Reconstruction and Development (the Bank). The Borrower hereby confirms to the Bank that the indicators set out 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 achievement of the objectives thereof. Very truly yours, REPUBLIC OF CROATIA Autho z prese tative Attachment Attachment to Supplemental Letter No. 2 Loan No. 8258-HR (Second Science and Technology Project) Performance Monitoring Indicators CROATIA: Second Science and Technology Project Cumulative Target Values** Description (indicator definition etc.) PDO Level Results E Unit of Baseline EdTre Indicators* 9 Measure YR 1 YR2 YR3 End Target Jan 31, 2020 Indicator One: Prepared Text No National Infrastructure Smart Ex-ante Among the documents required by EU set of innovation and R&D documentation S&T Roadmap, and Specialization conditionalities for guidelines are National Science and policy documents required is available strategy RIS3 are prepared Strategy is the use of the EU Technology Strategy, R&D for absorption of the O prepared prepared funds are met Infrastructure Roadmap, and Research Structural Funds and Innovation Smart Specialization Strategy. Indicator Two: Six project Number 0 0 3 5 6 Three R&D infrastructure project proposals prepared for proposals including feasibility studies, submission to the EU Funds cost-benefit and market analyses etc. submitted to ERDF. A grant scheme prepared by HAMAG- BICRO submitted to ERDF. ] A grant scheme prepared by UKF submitted to ESF and Horizon 2020. A grant scheme prepared by HAMAG- BICRO for TTOs, a scale up EU IPA- funded SIIF (Science Innovation Investment Fund) and TTO Support Program. Indicator Three: Total EUR 3.6 6.5 17 30 46 Building the future demand for projects value of projects in the million that will be used to absorb EU funds pipeline for funding through the grant scheme managed [O by HAMAG-BICRO Indicator Four: Total value EUR 0 0 0 1.3 24 Building the future demand for projects of projects in the pipeline million that will be used to absorb EU funds for funding by EU funds l originated from UKF funded projects Indicator Five: Total value EUR 2.5 9.5 13 13.3 19.5 Maintaining the flow of financial of projects funded by UKF million resources for the activities of and HAMAG-BICRO under HAMAG- BICRO and UKF. (Total the project sub-financing O value includes SPREAD, RAZUM programs of HAMAG- BICRO and UKF programs)