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TCHAD OIL TRANSPORTATION COMPANY S.A.
March 29, 2001
International Bank for Reconstruction
  and Development
1818 H Street, N.W.
Washington, D.C. 20433
United States of America
Re:
Loan No. 4558 CD
Project Agreement
(Petroleum Development and Pipeline Project)
Performance Indicators
Dear Sirs:
We refer to paragraph (a) of Schedule 2 of the above-referenced Project
Agreement and confirm, on behalf of TOTCO, that the performance indicators agreed upon
between TOTCO and the Bank are as shown in the Annex to this letter.
Very truly yours,
TOTCO
By /s/ André Madec
Authorized Representative
Attachment
ANNEX
Performance Indicators
1.
(a) Export of first oil flow through pipeline by end-2004 and 81 million
barrels/year in 2005-2007.
(b)
  Government petroleum revenues of at least US$70 million per annum by
2005-2007.
2.
Private sector ownership and control of Doba oilfields and pipeline companies
(excluding Government share).
3.
Achievement of targets and norms prescribed in the EMP, including the
Resettlement and Compensation Plan.
4.
(a)
Construction of at least 35 % of the infrastructure facilities referred
to in paragraphs (a), (b), (c), (d), (e) and (f) of Part A of Schedule 2 to the Loan
Agreement by end-2002, and at least 75% of these infrastructure facilities by
end-2003.
(b)
Construction of 70 km of pipeline in Chad by end-2003.
(c)
Upgrading of at least 100km of roads and construction of Mbere River
bridge by end-2002.
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(d)
Commissioning of Export System and Field System before end-2004.
5.
Project investments in Chad of US$250 million by end-2001, of US$550 million by
end-2002, and of US$1,350 million by end-2003.
6.
Re: environmental and social aspects:
(a)
compensation and resettlement completed in a timely manner;
(b)
no significant or lasting environmental damage caused by construction;
(c)
minimal social conflict in project area; and
(d)
affected communities participate in economic benefits.