lemental Letter PEOPLE'S REPUBLIC OF BANGLADESH June 19, 2014 International Development Association 1818 H Street NW Washington, DC 20433 United States of America Re: Credit No. 5381-BD (Rural Electricity Transmission and Distribution Project) Performance Monitoring Indicators Dear Sirs and Madams: This refers to Section II.A of Schedule 2 to the Financing Agreement of even date herewith between the International Development Association (the Association) and the People's Republic of Bangladesh (the Recipient) for the Rural Electricity Transmission and Distribution Project. Unless agreed otherwise with the Association, the Bangladesh Rural Electrification Board and the Power Grid Company of Bangladesh shall monitor and evaluate implementation of the Project in accordance with the Performance Monitoring Indicators attached to this letter. Very truly yours, PEOPLE'S REPUBLIC OF B GLADESH By_ ALeozed Rpresentative BANGLADESH RURAL ELECTRIFICATION BOARD By Authorized Representative POWER GRID COMPANY OF BANGLADESH r By Au rize Representative AGREED: INTERNATIONAL DEVELOPMENT ASSOCIATION By Rpentiv Authorized Representative Results Framework and Monitoring BANGLADESH: Rural Electricity Transmission and Distribution (T&D) Project Project Development Objectives The project development objectives are to reduce system losses and enhance capacity in the rural power distribution network of primarily the eastern part of Bangladesh. These results are at Project Level Project Developme t Objective Indicators Cumulative Target Values Data Responsibility Source. for Unit of Baseline Miethodo- Data Inicato Name Core Measure (2013) 2014 2015 2016 2017 2018 2019 2020 Frequency M othoCollct o Indicato Name3 loo)y Collection BREB Electricity losses X MIS per year in the Percentage 13.0% 13.0% 12.75% 12.5% 12.25% 11.5% 11.0% 10.5% Quarterly Report and BREB project area' PMU report MVA Capacity addition in the xProject 33/11kV network Number 0 0 0 150 450 835 1,220 1,800 Quarterly progress BREB 33/1IV neworkreport of the Project PBSs Direct project Project Direcrec Number 25M 25M 25M 25M 25M 25M 25M 25M Annual progress BREB beneficiaries rpr report PercentagePrjc Female-TypeProject Female Sub-Type 56 56 56 56 56 56 56 56 Annual progress BREB beneficiaries Supplement report al The targeted loss reduction translates to about 277 GWh of energy saved per year- enough to serve the electricity needs of almost a million people per year. Intermediate Results Indicators Cumulative Target ValUes Data Responsibility Source', fo r Indicator Name Core L.'irf B 2014 2015 2016 2017 2018 2019 2020 Frequene thodo- Data Measure (2013) lo g y C'ollect ion Component A: Rural Grid Augmentation and Rehabilitation Distribution lines constructed or xProject rehabilitated under Kilometers 0 0 444 1,423 3,032 3,568 5,177 6,249 Quarterly progress BREB rehailitted nderreport the project Distribution lines x Kilometers Project constructed under ' Sub-Type 0 0 0 536 2,145 2,681 4,290 5,362 Quarterly progress BREB the project Breakdown report Distribution lines x Kilometers Project rehabilitated under 1'Sub-Type 0 0 444 887 887 887 887 887 Quarterly progress BREB the project Breakdown report Number of distriutionProject distribution Number 0 0 0 10 30 55 80 110 Quarterly progress BREB substations report constructed Component B: Transmission Enhancement Number of Grid susain Project substations Number 0 0 0 0 5 6 6 6 Quarterly progress PGCB constructed/upgrad report ed Transmission lines constructed or xProject rehabilitated under Kilometers 0 0 0 0 39 194 389 389 Quarterly progress PGCB the project Transmission lines Kilometers Project rehabilitated under Sub-Type 0 0 0 0 28 140 280 280 Quarterly progress PGCB the project Breakdown report Transmission lines x Kilometers Project constructed under Sub-Type 0 0 0 0 11 54 109 109 Quarterly progress PGCB the project Breakdown report Cumulative Target Values Data Responsibility Source for I nit of B3aseline Methodol D)ata Indicator Name Core I2014 2015 2016 2017 2018 2019 2020 FireqCuncNl D Measure (2013) o,y Collection Component C: Institutional Strengthering Environment and Set-up Full-fledged Full-fledged Full-fledged Full-fledged Full-fledged Project Social Unit Text No Unit approved PMU unit Set-up Unit Unit Unit Unit Quarterly progress BREB operational at for the operational approved Operational Operational Operational Operational report BREB PMU Environment and Social Unit Text No Unit Unit set-up Unit Unit Unit Unit Unit Unit Quarterly progress operational at approved operational operational operational operational operational operational report PGCB Design for an No No Indicators Indicators appropriate Quality tracking sytem Feasibility Feasibility Design work included in included in and Reliability Text system in system in started completed work started cork annual annual Quarterly progress BREB Indicators at BREB place reports reports BREB Computerization of No Project FMR Needs Implemen- Implemen- Implementa financial Project Accounting System Text system in Nf tcem rom assessment tation tation tion statements Quarterly progress BREB at BREB place in place computerized for BREB ogig nong nong from rpr system completed ongomg ongoing ongoing computerized report system Tariff Tariff Tariff Tariff n lg No regular ri s udy application application application application Project sustainability of the Text financial T submitted to submitted to submitted to submitted to Annual progress BREB PBSs ensuredc a initiated completed BERC if BERC if BERC if BERC if report needed needed needed needed BREB capacity (1) orggram Final Recruitment Phased Phased Phased Phased Project Text inadequate submitted approval of recruitment recruitment recruitment recruitment Quarterly progress BREB strengthened for system to relevant organogram poitio (20%) (40%) (60%) (80%) report expaiSon Ministries start Project Development Objective Indicators Indicator Name Description (indicator definition etc.) Electricity losses per year in the project area This indicator is calculated by dividing total electricity losses (i.e. the sum of technical and non- technical losses) by the total net injected generation in the project area. The baseline is the actual electricity losses in the project area at the beginning of the project. MVA Capacity addition in the 33/1 IkV network of the Project PBSs Direct Project beneficiaries including female beneficiaries The total number of household connections by the Project PBSs multiplied by the average household size (5.3). Intermediate Results Indicators Indicator Name Description (indicator definition etc.) Transmission lines constructed or rehabilitated under the project This indicator measures the length of the transmission lines constructed or rehabilitated/upgraded under the project. Transmission lines rehabilitated under the project Transmission lines constructed under the project Distribution lines constructed or rehabilitated under the project This indicator measures the length of the distribution lines constructed or rehabilitated/upgraded under the project. Distribution lines constructed under the project Distribution lines rehabilitated under the project Number of Grid substations constructed/upgraded This is the number of 132/33 kV substations constructed or upgraded by PGCB under the project Number of distribution substations constructed This is the number of 33/11 kV substations rehabilitated or constructed by BREB under the project Environment and Social Unit operational at BREB The unit will initially be established at BREB PMU, which will later be converted to a full-fledged unit Environment and Social Unit operational at PGCB Design for an appropriate Quality and Reliability Indicators at Feasibility study will identify the scope (full automation or manual entry) and the indicator system BREB will be implemented accordingly Computerization of Accounting System at BREB Financial sustainability of the PBSs ensured BREB capacity strengthened