OFFICIAL DOCUMENTS Supplemental Letter No. 2 DEDICATED FREIGHT CORRIDOR CORPORATION OF INDIA LIMITED October 21, 2016 International Bank for Reconstruction and Development 1818 H Street, N.W. Washington, D.C. 20433 United States of America Re: INDIA: Loan No. 8513-IN (Eastern Dedicated Freight Corridor 3 Project) Performance Monitoring Indicators Dear Sirs and Mesdames: We refer to Section II.A. of Schedule 2 to the Loan Agreement of even date herewith between the International Bank for Reconstruction and Development (Bank) and Dedicated Freight Corridor Corporation of India Limited (Borrower) for the above referenced project. Unless agreed otherwise with the Bank, the Borrower shall monitor and evaluate the progress of the project in accordance with the Performance Monitoring Indicators attached to this letter. Very truly yours, DEDICATED FREIGHT CORRIDOR CORPORATION OF INDIA LIMITED Authorized Representative Attachment INDIA: Eastern Dedicated Freight Corridor 3 (EDFC3) Project Results Framework Project Development Objective (PDO) : (a) provide additional rail transport capacity, improved service quality and higher freight throughput on the 401 km Ludhiana- Khurja section of the Eastern rail corridor; and (b) develop the institutional capacity of DFCCIL to build, maintain and manage the DFC infrastructure network. Baseline Cumulative Target Values** Responsibility Description PDO Level Results ? Unit of Frequency Data Source/ for Data (indicator Indicators* Measure 2013-14 216- 2017-18 2018- 2019- 2020-21 Methodology Collection definition etc.) Indicator One: pairs/day N/A DFC section DFCCIL Available DFC Additional freight traffic stats train paths end- train paths on to-end EDFC3 Ludhiana- Khurja train 23 Annual plan or calculation for normal week (excludes maintenance time) Indicator Two: net ton-km N/A DFC section DFCCIL On all DFC Freight traffic bills/year traffic stats trains between carried on the Ludhiana- EDFC3 L22 Annual Khurja (annual total as per standard operating statistics) Indicator Three: km/h 25 DFC section DFCCIL Based on Average speed of (existing ops .stats normal week freight trains EDFC3 line) sample of trains l 45 Annual (train km/train hours 2 ways) Ludhiana- Khurja Indicator Four: Independent Good Good or Good Good Good or DFCCIL DFCCIL GOI standard DFCCIL MoU (with annual or higher or or higher Annual PSU ratings procedures for MOR) rating review higher higher higher evaluation of PSU entities INTERMEDIATE RESULTS Intermediate Result (Component One): Design, construction and commissioning of the Ludhiana- Khurja section Intermediate Result Cum. N/A indicator One: completion 15% 40% 80% 100% first full End year DFCCIL DFCCIL Physical O of works by year of construction construction: civil value operation monitoring works Intermediate Result Cum. N/A indicator Two: completion 5% 30% 70% 100% first full End year DFCCIL DFCCIL Physical o of works by year of construction construction: value operation monitoring systems works Intermediate Result (Component Two): Continuing institutional support to help DFCCIL to build, operate and manage the DFC network Intermediate Result indicator One: Market List of Seed Identification of testing potential money of MOR/ potential private nvtprogram andeors US$ 10 DFCCIL MORIDFCCIL investors in freight in place and projects million established invested terminals and logistics centres Intermediate Result indicator Two: Pilot Energy O project in DFCCIL DFCCIL optimization pilot operation project Intermediate Result indicator Three: MOR/DFCCIL adoption of system to optimize Study of System System System MOR/ terchanie options specification in-place in-place MOR DFCI interchange of completed Adopted EDFC 1/2 EDFC3 DFCCIL DFCCIL trains between IR and EDFC line at interchange stations