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Supplemental Letter No. 1 ALBANIA March 20, 2003 International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Re: Credit No. 3730-ALB (Municipal Water and Wastewater Project) Section 9.02 of the General Conditions Financial and Economic Data Dear Sirs and Mesdames: In connection with the Development Credit Agreement of this date between Albania (the Member Country) and the International Development Association (the Association), I am writing on behalf of the Member Country to set forth the following: 1. We understand and agree that, for purposes of Section 9.02 of the General Conditions, the Member Country is required by the Association to report new "loan commitments" (as defined in the World Bank Debt Reporting System Manual, dated January 1989) not later than 30 days after the end of the quarter during which the debt is incurred, and to report "transactions under loans" (as so defined) not later than March 31 of the year following that for which the report is made. 2. We represent that, no defaults exist in respect of any external public debt. It is our understanding that, in making the Credit, the Association may rely on the statements set forth or referred to in this letter. Very truly yours, ALBANIA By: /s/ Fatos Tarifa Authorized Representative Supplemental Letter No. 2 ALBANIA March 20, 2003 International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Re: Credit No. 3730-ALB (Municipal Water and Wastewater Project) Performance Monitoring Indicators Dear Sirs and Mesdames: Referring to the provisions of paragraph 1(a) of Schedule 3 of the Development Credit Agreement between the International Development Association (the Association) and Albania (the Borrower), the Borrower hereby confirms to the Association that the indicators set out 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, ALBANIA By: Attachment /s/ Fatos Tarifa Authorized Representative Attachment ALBANIA MUNICIPAL WATER AND WASTEWATER PROJECT MONITORING INDICATORS Percentage of water quality analyses meeting faecal coliform standards. Number of hours of water supply. Improvement of collection rate and working ratio. Improvement of working ratio. Increase in the percentage of the total population in the service area with a minimum of two hours of daily water supply. Supplemental Letter WATER AND WASTEWATER COMPANY OF DURRES March 20, 2003 International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Re: Credit No. 3730-ALB (Municipal Water and Wastewater Project) Performance Monitoring Indicators Dear Sirs and Mesdames: Referring to the provisions of paragraph 1(a) of Schedule 2 of the Project Agreement among the International Development Association (the Association) and Durres Region and Water and Wastewater Company of Durres (WWCD), WWCD hereby confirms to the Association that the indicators set out in the attachment to this letter shall serve as a basis for the WWCD to monitor and evaluate the progress of the Project and the achievement of the objectives thereof. Very truly yours, WATER AND WASTEWATER COMPANY OF DURRES By: Attachment /s/ Fatos Tarifa Authorized Representative Attachment WATER AND WASTEWATER COMPANY OF DURRES MUNICIPAL WATER AND WASTEWATER PROJECT MONITORING INDICATORS Percentage of water quality analyses meeting faecal coliform standards. Number of hours of water supply. Improvement of collection rate and working ratio. Improvement of working ratio. Increase in the percentage of the total population in the service area with a minimum of two hours of daily water supply. Supplemental Letter March 20, 2003 WATER AND WASTEWATER COMPANY OF FIER International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Re: Credit No. 3730-ALB (Municipal Water and Wastewater Project) Performance Monitoring Indicators Dear Sirs and Mesdames: Referring to the provisions of paragraph 1(a) of Schedule 2 of the Project Agreement among the International Development Association (the Association) and The Municipality of Fier and Water and Wastewater Company of Fier (WWCF), WWCF hereby confirms to the Association that the indicators set out in the attachment to this letter shall serve as a basis for WWCF to monitor and evaluate the progress of the Project and the achievement of the objectives thereof. Very truly yours, WATER AND WASTEWATER COMPANY OF FIER By: Attachment /s/ Fatos Tarifa Authorized Representative Attachment WATER AND WASTEWATER COMPANY OF FIER MUNICIPAL WATER AND WASTEWATER PROJECT MONITORING INDICATORS Percentage of water quality analyses meeting faecal coliform standards. Number of hours of water supply. Improvement of collection rate and working ratio. Improvement of working ratio. Increase in the percentage of the total population in the service area with a minimum of two hours of daily water supply. Supplemental Letter March 20, 2003 WATER AND WASTEWATER COMPANY OF LEZHE International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Re: Credit No. 3730-ALB (Municipal Water and Wastewater Project) Performance Monitoring Indicators Dear Sirs and Mesdames: Referring to the provisions of paragraph 1(a) of Schedule 2 of the Project Agreement among the International Development Association (the Association) and The Municipality of Lezhe and Water and Wastewater Company of Lezhe (WWCL), WWCL hereby confirms to the Association that the indicators set out in the attachment to this letter shall serve as a basis for WWCL to monitor and evaluate the progress of the Project and the achievement of the objectives thereof. Very truly yours, WATER AND WASTEWATER COMPANY OF LEZHE By: Attachment /s/ Fatos Tarifa Authorized Representative Attachment WATER AND WASTEWATER COMPANY OF LEZHE MUNICIPAL WATER AND WASTEWATER PROJECT MONITORING INDICATORS Percentage of water quality analyses meeting faecal coliform standards. Number of hours of water supply. Improvement of collection rate and working ratio. Improvement of working ratio. Increase in the percentage of the total population in the service area with a minimum of two hours of daily water supply. Supplemental Letter March 20, 2003 WATER AND WASTEWATER COMPANY OF SARANDA International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Re: Credit No. 3730-ALB (Municipal Water and Wastewater Project) Performance Monitoring Indicators Dear Sirs and Mesdames: Referring to the provisions of paragraph 1(a) of Schedule 2 of the Project Agreement among the International Development Association (the Association) and The Municipality of Saranda and Water and Wastewater Company of Saranda (WWCS), WWCS hereby confirms to the Association that the indicators set out in the attachment to this letter shall serve as a basis for WWCS to monitor and evaluate the progress of the Project and the achievement of the objectives thereof. Very truly yours, WATER AND WASTEWATER COMPANY OF SARANDA By: Attachment /s/ Fatos Tarifa Authorized Representative Attachment WATER AND WASTEWATER COMPANY OF SARANDA MUNICIPAL WATER AND WASTEWATER PROJECT MONITORING INDICATORS Percentage of water quality analyses meeting faecal coliform standards. Number of hours of water supply. Improvement of collection rate and working ratio. Improvement of working ratio. Increase in the percentage of the total population in the service area with a minimum of two hours of daily water supply.