Page 1 REPUBLIC OF ARMENIA October 7, 1999 International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Re: Credit No. 3260 AM (Dam Safety Project) Project Performance Indicators Dear Sirs and Mesdames: This refers to the provisions of paragraph 3 (a) of Schedule 4 to the Development Credit Agreement of this date between the Republic of Armenia (the Borrower) and the International Development Association (the Association) for the above-captioned Project. The Borrower 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, REPUBLIC OF ARMENIA By /s/ Rouben Shougarian Authorized Representative