OFFICIAL L42-~ DOCUMENTS Supplemental Letter No. 2 RUSSIAN FEDERATION V1\A)r 14 , 2014 International Bank for Reconstruction and Development 1818 H Street, N.W. Washington D.C. 20433 United States of America Re: Loan No. 8291-RU (Second National Hydromet Modernization Project) Performance Monitoring Indicators Dear Sirs and Mesdames: We refer to Section II.A of Schedule 2 to the Loan Agreement of this date between the Russian Federation (the Borrower) and the International Bank for Reconstruction and Development (the Bank) for the above-captioned Project. We hereby confirm to the Bank that, for purposes of paragraph (1) of Section II A of Schedule 2 to the Loan Agreement, 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, RUSSAN FEDERATION By__ Authorized Representative A"kd"~ Frolocv Attachment c-010e ~~Cv, ~ s ' Attachment to Supplemental Letter No. 2 RUSSIAN FEDERATION Second National Hydromet Modernization Project Performance Monitoring Indicators The development objective of the proposed Second National Hydromet System Modernization Project (RU-Hydromet-2) is to further enhance the national capacity to deliver reliable and timely weather, hydrological and climate information to the Russian public and the economic sector and enhance Russia's capacity to integrate into the global system of meteorological services. As a result of the project Roshydromet will further modernize its services and improve the accuracy of information Project Development Objective necessary to protect society and economy from a wide range of hydrometeorological and climate related hazards. The project will also support Russia's public institutions to make informed economic decisions related to climate information (both negative and positive impacts) based on comprehensive climate models and assessment capacity. DATA COLLECTION AND Performance indicators REPORTING Measurement Year Year 2 Year 3 Year 4 Year 5 Frequency Data units 201 2015 2016 2017 2018 ResponsibI collection 2014 e agency methods Indicators of DO achievement: Indicator 1: Increased lead times of Lessthan Annually/ Based on basic weather forecasts for major Hours Le0h NC NC 132 144 168h RHM internal Russian administrative centers with Technical Roshydromet reliability over 70% Coordinator reporting Indicator 2: Increased reliability of Annually/ Based on forecasts of seasonal water inflow to % 75-80% NC NC 78-87% 79-88 85-90% RHM internal reservoirs in the Volga River basin Technical Roshydromet Coordinator reporting Indicator 3: Increased number of 100%-2011 Annually / Based on RHM sectoral data users Annual increase level (30,000 NC 5% 5% 5% 5% RHM internal (%) users) Technical Roshydromet Coordinator reporting Indicator 4: Increased satisfaction Composite Current NC 65% - - 75 % Assessed Survey of users with RHM services satisfaction index baseline annually expressed as a %, prior to after initial where 100 % is introduction baseline, completely of new RHM satisfied services is 65% 1 1_1_1_1_1_1 Intermediate Results Indicators (IRI): Component A: Strengthening Information Communication Technology (ICT) infrastructure and systems delivering weather, climate and hydrological data and information A.1 Accuracy of warnings on % 88 NC 89 90 91 92 Annually/ Roshydromet natural hazards RHM reporting A.2 Increased level of spatial resolution of weather forecasts with KmAnnually Roshydromet the lead time of up to three days (for RHM reporting large cities) A.3 Number of oblast and territorial Roshydromet Centers providing Units 0 NC 2 4 7 10 Annually! Roshydromet remote client access to archived data RHM reporting A.4 Number of RoshydrometR centers (as % of the total) providing operational access to observationalRoshydromet data and products for internal and NC 25 50 80 external RHM clients: by 100 RHM reporting subscription - 1 day; request- response mode: 5 minutes Intermediate Results Indicators (IRI): Component B. Modernization of observation networks B. 1 Increased number of automated Annually! Roshydromet observation sites in pilot regions of % 83% NC 84% 86% 88% 90% RH-M reporting the North-West of Russia B.2 Availability of moder devices % of the total for measurement of soil moisture number of stations 0 10% 30% 60% 80% Annually/ Roshydromet and heat regime of agricultural lands NC RHM reporting in the pilot regions (North Caucasus, West Siberia) B.3 Modernization of upper air % of the total 64% NC 69% 75% 82% 87% RHM Roshydromet observation network number of stations reporting B.4 Reduction of error of water flow Annually / Roshydromet data in the Volga River basin % 20-30% NC NC 18-26% 12-18% 10-15% RHM reporting B.5 Percentage of the Volga River basin territory corresponding to the % 81% NC NC 90% 95% 100% Annually/ Roshydromet minimum required number of RHM reporting hydrological observation sites I Intermediate Results Indicators (IRI): Component C. Institutional and regulatory strengthening, improvement of service delivery to clients and better preparedness for emergencies C. 1 Developed (updated) regulatory, organizational and administrative documents aimed at improving the items 0 NC NC 3 5 2 Annually/ Roshydromet organizational, methodological, RHM reporting financial and economic activities of Roshydromet C.2 Re-training and professional upgrading of specialists from the persons 169 710 1420 2130 2840 3550 Annually/ Roshydromet Roshydromet's organizations RHM reporting C.3 Increased number of scientists and specialists who participated in Annually/ Roshydromet internships to the leading persons per year 0 NC 4 6 8 10 RHM reporting universities and agencies outside Russia C.4 Accuracy of warnings on hazardous hydrometeorological 81- 82- Annually / Roshydromet events delivered to regional % 81-83 83 84 82-84 83-85 83-85 RHM reporting authorities and the Ministry of Emergency Situations C.5 Number of Roshydromet Annually/ Roshydromet institutions where situation centers Number of centers 25 NC 30 50 70 100 RHM reporting are deployed