OFFICIAL DOCUMENTS1 , Supplemental Letter 2 LAO PEOPLE'S DEMOCRATIC REPUBLIC LAO ROAD SECTOR PROJECT 8 ,2012 International Development Association 1818 H Street, NW Washington, DC 20433 United States of America Re: Original Grant No. H547-LA Additional Financing Grant No. H789-LA (Amending and Restating Financing Agreement and Providing Additional Financing for the Road Sector Project) Performance Indicators Dear Sir/ Madame: We refer to paragraph A. 1, of Section II to Schedule 2 to the Financing Agreement between the Lao People's Democratic Republic and the International Development Association; and (ii) paragraph A. 1 of Section II of the Schedule to the Project Agreement of even date herewith between the Association and the International Development Association both for the Lao Road Sector Project concerning Performance Indicators. We hereby agree that the Performance Indicators to monitor and evaluate the carrying out of the Project and the achievement of the objectives thereof are those set forth in the Annex to this letter. Please confirm the agreement on behalf of the Association to the application of these Performance Indicators by signing the form of confirmation below. Very truly yours, LAO PEOPLE'S DEMOCRATIC REPUBLIC AuthorzdRepresentative CONFIRMED: INTERNATIONAL DEVELOPMENT ASSOCIATION By: Ate d R Authorized Representative Results Framework Revisions to the Results Framework [Comments/ Rationale for Change PDO Current Proposed (a) To improve road services No changes are proposed The current PDO is relevant and on two main national corridors achievable and the provincial road network, (b) to rehabilitate the roads damaged by Typhoon Ketsana, and (c) to establish and operationalize a contingency fund for quick disaster response in the road sector. PDO indicators Current (PAD) Proposed change* Vehicle travel time on Revised. Split into two indicators to reflect upgraded road reduced by 40% Vehicle travel time on upgraded NRIB revised end target values in time reduced by 40% savings on NR6A due to construction of Nam Ma Bridge Vehicle travel time on upgraded NR6A reduced by 50% At least 26,500 people (49% Continued female) mostly living by the roadside will be served by paved road along NRIB and 6A Share of provincial road Revised. Share of provincial road network Revised end target to reflect scale network in good and fair in good and fair condition increased from up condition (by Lao standards) 46% to 65% increased from 46% to 64% About 60% of the Typhoon Completed Target of 55% has been achieved; Ketsana damaged roads the remaining 45% was taken up repaired and improved by government and other sources of funding A contingency fund Revised: Standard operational procedures Original indicator achieved. established for quick for the management of the emergency Revised indicator captures scaling restoration of passability and contingency fund established up safety of disaster affected national and provincial roads Intermediate Results indicators Current (PAD) Proposed change* 171km National Roads (NRIB Revised. 17 1km National Roads (NRIB Revised to reflect scale up and 6A) upgraded as per and 6A) upgraded with disaster resilience specifications standard About 1,600 km of provincial Revised. About 2,100 km of provincial Revised to reflect scale up roads preserved through roads preserved through periodic periodic maintenance maintenance Revisions to the Results Framework Comments/ Rationale for Change Road safety facilities acquired Revised. Road safety facilities acquired Revised to reflect scale up and installed as per and installed as per specifications specifications Number of Police officers, local authorities, communities and teachers and students trained on road safety measures Knowledge and practical Continued experience acquired on transport sector strategic planning and management National plan updated and expanded Enhanced knowledge and Continued practical experience on safeguard management Country systems used for EA and staff trained Acquire knowledge and Continued experience on internal control Internal audit function established and functional Knowledge enhanced and Continued practical experiences gained on fiduciary management and contract management at the provincial level About 1,100 km of Ketsana Completed Target achieved damaged roads repaired and improved as per specification Length of time between Continued declaration of disaster and the first payment to contractors for emergency works shortened PPP Unit established New Indicator * Indicate if the indicator is Dropped, Continued, New, Revised, or if there is a change in the end of project target value REVISED PROJECT RESULTS FRAMEWORK Project Development Objective (PDO): (a) To improve road services on two main national corridors and the provincial road network, (b) to rehabilitate the roads damaged by Typhoon Ketsana, and (c) to establish and operationalize a contingency fund for quick disaster response in the road sector. The PDO remains unchanged under Additional Financing Baseline Cumulative Target ValueS4 Original Progress Data Source! Responsibility PDO Level Results Indicators UOM2 Project To Date 2014 2015 2016 2017 Frequency tofor Data Comments Start (2012)3 Collection U (2010) Project 1. Vehicle travel time on upgraded progress NRlIB reduced by 40% E] (1 09km): 0% 20% 30% 40% 40% Annual report and DPC/DOR 5 hours; National Road Survey Project 2. Vehicle travel time on upgraded (62 km) progress NR6A reduced by 50% O] ( kin) 0% 20% 30% 40% 50% Annual report and DPC/DOR 3 hours National Road Survey 3. At least 26,500 people (49% At At least At least Project female) mostly living by the least 26,500 26,500 progress rodsdewllbesrvd ypaed E Number 0 0 13,000 26,500 (5% (]% Annual report and DPC/DOR roadside will be served by paved(5% 51 (1%smln road along NR IB and 6A femal female) female) s urvey female) survey 4. Share of provincial road Progress network in good and fair condition E 46% 58% 64% 64% 64% 65% Annual report and DPC/DOR (by Lao standards) increased from Annual Asset 46% to 65% Report 5. Standard operational procedures Fund Project for the management of the F0 functio functio function function A l projet DPC/DOR/DP fo te aagmetofth Text establish 0 fnto ucto ucin fnton Annual progress emergency contingency fund ed nal nal al al report WT functional 1 Please indicate whether the indicator is a Core Sector Indicator (for additional guidance - please see http://coreindicators). 2 UOM = Unit of Measurement. 3 For new indicators introduced as part of the additional financing, the progress to date column is used to reflect the baseline value. 4 Target values should be entered for the years data will be available, not necessarily annually. Target values should normally be cumulative. If targets refer to annual values, please indicate this in the indicator name and in the "Comments" column. Beneficiaries5 Project beneficiaries, Number147,600 309,400 Number Of which female (beneficiaries) 75,276 157,794 Intermediate Results and Indicators Baseline Target Values Unit of Original Progress Data Source Responsibility Intermediate Results Indicators , Measur Project To Date 2014 Frequency for Data Comments o ement Start (2012) Collection U (2010) Intermediate Result 1: Network Improvement and Preservation 1. 171 km ofnational roads Project (NRIB&6A) upgraded with I km 0 30 80 171 171 171 Bi-annual progress DPC/DOR disaster resilience standard report 2. About 2,100 km of provincial Project roads preserved through periodic O km 0 1,011 1,415 1,600 1,900 2,100 Bi-annual progress DPC/DOR maintenance report 3. RodsaeyailtesaquNeed Goods Installe Fully Fully Project Road safety facilities acquired O Text 0 identifie procure Intale alle ile tFlly Annual progress DPC/DOT and installed as per specifications dd d d installed report 4. New. Police officers, local authorities, community members Project and teachers and students exposed [I Number 0 100 200 300 300 Annual progress DPC/DOT to road safety training and report awareness raising activities in 3 pilot provinces Intermediate Result 2: Institutional Strengthening All projects are encouraged to identify and measure the number of project beneficiaries. The adoption and reporting on this indicator is required for investment projects which have an approval date of July 1, 2009 or later (for additional guidance - please see http://coreindicators). Intermediate Results and Indicators Baseline Targe Values Unit of Original Progress Responsibility Intermediate Results Indicators , Measur Project To Date 2014 2015 2016 2017 Frequency for Data Comments 0 ement Start (2012) Collection (2010) Strategic Strateg Strategic 5. Knowledge and practical First plan ic Plan Plan experience acquired on transport 0 Text sector updated update updated Annual protss DPC/PTI sector strategic planning and planning and d and and report management produced expande expand expande d ed d 200 169 230 Country Training provinc provinci 260 poic ial and provinci system provided ial and district al and provinc just to 119 district . district aland engine district Project 6. Country systems used for EA piloted provincia enginee ers enginee engineer Annual progress DPC/PTI and staff trained and only I and rs receive rs a few district receive receive report d received staff engineer d ESOM d ESOM trained s ESOM tii ESOM trainintraining training training Internal Internal internal internal Annual Annual 7. Acquire knowledge and control control audit audit internal internal Project audit auditPrjc experience on internal control El Text function unit report report Annual progress DOI non establish produce produc report reportreport existent ed d ed produce produce d d 3-year Capacity training At Capacity 8. Knowledge enhanced and develop Program At least least At least develop Project practical experiences gained on 0 Text ment prepared 450 600 750 ment Annual progress DPC/DPWT's fiduciary management and contract program 2011-13 people people people program report management at the provincial level not and 390 trained trained trained complet started people ed trained Not . Project 9. New. PPP Unit established E Text establish Establis Operati Operati Operatio Annual progress DPC hed onal onal nal ed report 10. New. Feasibility study for two comple PPP pilot road sections ted Intermediate Results and Indicators Baseline Target Values Unit of Original Progress 2014 2015 2016 2017 Data Source/ Responsibility Intermediate Results Indicators a Measur Project To Date 2 Frequency for Data Comments e ement Start (2012) Collection U (2010) Intermediate Result 3: Disaster Recovery and Contingency Typhoon s Haima &Nokten hit Laos Time of Time Time of in July of Tm of y 2paymen pa paymen Time of 10. Length of time between Time of 2011; t payme t payment declaration of disaster and the first payment expected shorten nt shorten shortene Project payment to contractors for tl Text delayed payment ed by shorten ed to d to e Annual progress DPC/DOR emergency works shortened6 for up to by mid less ed by report 2 years of 2012; less less than about 1 than 6 th 6 than 6 month months, months months months a reduction of 50% 1_1_1_1 6 Target to be measured only if the Emergency Contingency Fund is triggered.