OFFICIAL DOCUMENTS A Supplemental Letter REPUBLIC OF KAZAKHSTAN June 18. 2014 International Bank for Reconstruction and Development 1818 H Street, N.W. Washington, D.C. 20433 United States of America Re: SDMT Grant No. TF014185 Energy Efficiency Project Performance Monitoring Indicators Dear Sirs and Mesdames: This refers to paragraph A.1 of Section II of Schedule 2 to the Grant Agreement of even date herewith between the Republic of Kazakhstan (the Recipient) and the International Bank for Reconstruction and Development (the World Bank). The Recipient hereby confirms to the World Bank that the indicators set forth in the attachment to this letter shall serve as a basis for the Recipient to monitor and evaluate the progress of the Project and the achievement of the objectives thereof. Very truly yours, REPUBLIC OF KAZAKHSTAN By Authorized Representative Attachment Attachment to Supplemental Letter REPUBLIC OF KAZAKHSTAN: Energy Efficiency Project Results Framework and Monitoring Project Development Objectives PDO Statement (b) the enabling environment for The Development Objectives of the proposed project are to improve: (a) energy efficiency in public and social facilities; and sustainable energy financing. Project Development Objective Indicators Responsibilit Cumulative Target Values Data Sourcel y for Unt f .Methodology Data idicator Name Core Unit re Baseline YRI YR2 YR3 YR4 End'arget Frequency Collcti Collection Measure PIU implementation Quantified Gigawatt- Semi- pesepor hour 0 0 195 500 825 825 annually based on PIu energy savings achieved' (GWh) commissioning reports EE market Financing Detailed Development of assessment options arrangemen New New P sustainable Te 0 completed; selected; ts for financing financing Semi- implementation PIU energy Text 0 financing preparation financing mechanisms mechanisms annually progress reports financing options of mechanism adopted launched mechamsms developed framework s prepared Cumulative energy savings over 15-years useful life of subprojects; -2- completed Intermediate Results Indicators CumnulativeTar-et Values Responsibility Data Source/ for Unit of Methodology Data hndicator Name Core Measure Baseline YR I YR2 YR3 YR4 End Target Frequency Collection Number of subprojects Semi Pi commissioned Number 0 0 25 50 75 75 anual implementation PIU in public and annually progress reports social facilities PIU implementation Number of sNumber Semi- progress reports, PJ beneficiaries of Number 0 0 15,000 30,000 45,000 45,000 annually based on subprojects2 commissioning reports x PIU Percentage of implementation female Number 0 0 50 50 50 50 Semi- progress reports, fu beneficiaries of Nubr 005 05 0annually based on subprojects commissioning reports PIUJ Cumulative implementation investments in Amount 0 0 4,500,000 11,500,000 19,000,000 19,000,000 Semi- progress reports, public and (USD) annually based on social facilities commissioning reports CO2 emission Metric ton Semi- PTIUJ reductions in (CO2) annually implementation 2Excluding street lighting; number of beneficiaries is provided per year; -3- retrofitted progress reports, facilities based on through EE commissioning investments3 reports EE law, Development of program legal, in place; EE Package Package institutional and in gpolicy Relevant submitted submitted Semi- PIU regulatory basis Text but no gap EE package formGOKefor GOK annually implementation PIU specific assessment prprd for GOKfoGO anuly pgrsrert for setting up setting up for provision completed prepared approval approval progress reports EE financing s on EE mechamismssonE financing Number of local EE market institutions (including PIU ESCOs and Number 0 0 3 5 7 7 Semi- implementation PIU finance annually progress reports institutions) and co-financing arrangements involved Number of trainings Semi- PIU conducted to Number 0 1 3 9 16 16 an implementation PIU develop Oblast progress reports EE Master Plans 3 Cumulative CO 2 emission reductions over 15-years useful life of subprojects;