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STATE OF PERNAMBUCO
December ___, 2001
International Bank for Reconstruction
  and Development
1818 H Street, N.W.
Washington, D.C. 20433
United States of America
Dear Sir/Mmes.:
Re.:
Loan No. 4625-BR (Rural Poverty Reduction Project – Pernambuco)
Loan Agreement: Section 3.03 (a): Performance Indicators
We refer to the Loan Agreement entered into by and between the International Bank for
Reconstruction and Development (the Bank) and the State of Pernambuco of even date herewith.
With reference to the provisions of the Loan Agreement, and in particular the Borrower’s
obligations under Section 3.03 (a) thereof, we wish to advise you that the performance indicators referred
to therein are those set forth in the attachment to this letter which we understand are satisfactory to the
Bank.
Very truly yours,
STATE OF PERNAMBUCO
By _____________________
    (Authorized Representative)
CONFIRMED:
INTERNATIONAL BANK FOR
  RECONSTRUCTION AND DEVELOPMENT
By:
_______________________
(Authorized Representative)
Date: _______________________
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Attachment
Performance Indicators
Project Components and
Activities
Responsible
Institution
Unit
PY0
PY1
PY2
PY3
PY4
Total
A. Community Subprojects
Subprojects Implemented
Benef. Assoc.
No.
274
731
731
91
1,827
   - Infrastructure
No.
143
382
382
48
955
   - Productive
No.
64
170
170
21
424
   - Social
No.
67
180
180
22
449
Beneficiaries
PCU, Councils
   - Total
Families
27
71
71
9
177
('000)
   - Total
People
4.3
persons/fa
mily.
114
304
304
38
761
('000)
Community Associations
benefited
2
subprojects/association.
PCU, Councils
No.
137
365
365
46
913
Municipalities benefited with
subprojects
PCU
No.
27
71
71
9
177
Municipal Councils created
  - FUMAC
PCU
No.
6
15
15
2
38
  - FUMAC-P
PCU
No.
2
6
6
1
14
B. Institutional Development
Preparation of annual program of
technical assistance and
training
PCU, Councils
  (i)PCU
No.
1
1
1
1
4
  (ii)
Municipal Councils
No.
8
21
21
3
52
Community Mobilization
PCU, Councils
  - Beneficiaries
Seminars
2
seminars/R
egion/year.
10
10
10
10
40
  - Local Leaders (for formation
of Project Municipal
Councils)
No. of
Participant
s
20
communit
y
leaders/M
unicipal
Council.
180
180
180
180
720
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No. of training courses offered
to:
   - Beneficiary associations
No.
2
courses/ye
ar.
4
10
10
1
25
   - All Municipal Councils
FUMAC,
FUMAC-P
No.
2
courses for
each new
Council
(FUMAC+
FUMAC-P
).
16
42
42
5
104
   - FUMAC Municipal Councils
No.
2
courses for
each new
FUMAC
Council.
4
11
11
1
28
   - PCU staff
No.
3
4
4
2
13
Technical Assistance provided
 - for Subproject Implementation
(technology transfer)
PCU, Councils
Subproject
s Attended
274
731
731
91
1,827
 - to Municipal Councils
PCU
Contracts
8
21
21
3
52
C. Project Administration,
Supervision, Monitoring and
Evaluation
Supervision
- Subprojects
PCU, Councils
No. of
Visits
2
visits/subp
roject.
548
1,462
1,462
183
3,654
- Municipal Councils
PCU
No. of
Visits
2
visits/Mun
icipal
Council/ye
ar.
62
166
166
21
416
Annual Operating Plans (POAs)
   - Preparation of POA for
FUMAC
FUMAC
Councils
No.
31
83
83
10
208
  - Consolidation and
Preparation of Project POA
PCU
No.
1
1
1
1
4
Page 4
Standard designs
  - Preparation
PCU
No.
3
2
-
-
5
  - Review and Updating
PCU
12
8
-
-
20
Special Account (establishment)
PCU
X
Information Campaign
PCU
  - Presentation to Bank
X
  - Campaign Launched
X
Operational Manual
PCU
  - Preparation
X
  - Review and Adjustments
(with Bank approval)
X
Monitoring Reports (sent to
Bank)
  - Monthly Disbursement
Summaries and MIS update
PCU
No.
12
12
12
12
48
  - Annual, Semi-annual Reports
PCU
No.
3
3
3
3
12
  - External Audits
PCU
No.
1
1
1
1
4
Evaluation Studies
  - Physical Performance
Reviews
PCU
No.
    (i) Mid-Term
X
  - Impact Evaluation
PCU
No.
    (i) Baseline
X
    (ii) Final
X