Page 1 ALBANIA December 19, 1997 International Development Association 1818 H Street, N.W. Washington D.C. 20433 United States of America Re: Credit Number 3016 ALB (Recovery Program Technical Assistance Project) Article III, Section 3.04 (a) of the Development Credit Agreement Performance Monitoring Indicators Dear Sirs and Mesdames: This letter refers to Section 3.04 (a) of Article III to the Development Credit Agreement of this date between Albania (the Borrower) and the International Development Association (the Association) for the above-captioned Credit. Albania hereby confirms to the Association 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 achievement of the objectives thereof. Very truly yours, By /s/ Petrit Bushati Authorized Representative