ISLAMIC REPUBLIC OF PAKISTAN NATIONAL TRA1% SMISSION AND DESPATCH COMPANY LTD , 2015 International Development A 3sociation 1818 H Street, N.W. Washington, DC 20433 United States of America PAKISTAN: IDA Credit No. 5409-PK Central Asia South Asia Electricity Transmission and Trale Project Performance Monitoring Indicators Dear Sirs and Mesdames: We refer to Section I.A of Schedule 2 of the Financing Agreement between the Islamic Republic of Pakis an (the Recipient) and the International Development Association (the Association) and Section II A. 1 of Schedule to the Project Agreement between the International D(velopment Association and the National Transmission and Despatch Company Ltd. (Project Implementing Entity), of even date herewith, for the above-captioned Project. Unless agreed other vise with the Association, the Recipient shall monitor and evaluate implementation ol the above-mentioned Project in accordance with the Performance Monitoring Indicators attached to this letter. Very truly yours, ISLAMIC REPUBLIC OF PAKIS By Authorized esentative NATIONAL TRANSMISSION DOPA COMPANY LTD By _ Authorized Representative Managig Diret$ NTDC WAPDAUHese Hohora Results Framework and Monitoring Project Development Objective (PDO): to create the conditions for sustainable electricity trade between the Central Asian countries of Tajikistan and Kyrgyz Republic and the South Asian countries of Afghanistan and Pakistan. PDO Level Results E Unit of Baseline Cumulative Target Values Data Source/ Responsibility Description a Frequency for Data (indicator Indicators a Measure (CY 2013) CY 2014 CY 2015 CY 2016 CY 2017 CY 2018-2020 Methodology Collection definition etc.) Indicator One: Yes/No No No No No No Yes Annual NTCs/utility NTCs Commercial Trade initiated database flows of between the electricity traded participating under at least countries one of the PPA between at least one of the sellers and one of the buyers. Indicator Two: Text Not Master Master Master Account Bank All Core Project Annual NTCs/utility NTCs/IGC Number of Commercial established Agreement Agreement Agreement Agreements agreements database Secretariat commercial framework between and PPAs and PPAs and PPAs signed and including framework the countries is O] signed effective effective Technical Account Bank, agreements established and Code Finalized Technical Code signed and operational finalized implemented. Indicator Three: Text IGC IGC and IGC IGC and IGC and JWG IGC and JWG Annual IGC/JWG IGC Ensure Institutional Secretariat JWG Secretariat JWG meetings held meetings held Meetings Secretariat coordination and mechanism for and JWG established and JWG meetings decision-making project l established strengthened held processes and sustainability is in capacity are place established Indicator Four: km 0 0 0 0 700 1,300 Cumulative NTCs/utility NTCs/IGC Total extension Transmission lines database Secretariat of new constructed under transmission the Project lines constructed under the Project INTERMEDIATE RESULTS 2013) |-| -------| Collection Component A: Construction of a High Voltage Transmission Infrastructure Intermediate Result Yes / No No Yes Yes Yes Yes Yes Yes Cumulative NTCs/utility NTCs/IGC indicator One: No database Secretariat Construction contracts signed for HVDC converter stations Intermediate Result Yes / No No Yes Yes Yes Yes Yes Yes Cumulative NTCs/utility NTCs/IGC indicator Two: No database Secretariat Construction contracts signed for HVDC line Intermediate Result Number 0 0 0 0 2 3 3 3 Cumulative NTCs / utility NTCs/IGC indicator Three: database Secretariat Converter stations constructed under the Project Intermediate Result km 0 0 0 0 750 750 750 750 Cumulative NTCs/utility NTCs/IGC indicator Four: database Secretariat HVDC line constructed under the Project Intermediate Result km 0 0 0 0 0 475 475 475 Cumulative NTCs/utility NTCs/IGC indicator Five: database Secretariat the Kyrgyz Republic and Tajikistan constructed under the Project Intermediate Result number 0 0 0 0 0 27,500,000 28,500,000 30,000,000 Annual NTCs/utility NTDC, DABS Electricity consumers in indicator Six: database Pakistan and Indirect Project Afghanistan benefiting Beneficiaries from increased electricity supply. Component B: Project Management and Capacity Building I The mandatory core indicator 'Direct Project Beneficiaries' is not applicable. Direct benefits for the end-user are difficult to define due to the nature of the project which does not finance electricity distribution. Therefore, it is more accurate to define the total customer base in Afghanistan and Pakistan as indirect project beneficiaries. INTERMEDIATE RESULTS I'- " 2013) __ __ __ _" Collection ' Intermediate Result Yes/No No No Yes Yes Yes Yes Yes Yes n/a NTCs /IGC NTCs/IGC . indicator One: Secretariat Secretariat Owners Engineers hired and in place Intermediate Result Yes/No No No Yes Yes Yes Yes Yes Yes n/a NTCs / IGC NTCs / IGC indicator Two: Secretariat Secretariat Timely Audits carried out of the Entity Audits within 9 months of the closure of financial year Intermediate Result 0 0 0 10 10 40 40 40 40 Annual NTCs / IGC NTCs / IGC Number of indicator Three: Secretariat Secretariat NTCs/national Number of staff consultants/contractor receiving staff involved in HVDC knowledge transfer activities and on HVDC Transmission dispatch technology/ during design and Transmission construction phases Dispatch Component C: Community Support Program Intermediate Result Yes/No No Yes Yes Yes Yes Yes Yes Yes n/a NTCs / IGC NTCs / IGC indicator One: Secretariat Secretariat operational manual for the Community Support Programs Intermediate Result Yes/No No No No Yes Yes Yes Yes Yes n/a NTCs / IGC NTCs / IGC indicator Two: Secretariat Secretariat Agreement on financing for operations phase