~~MENTS -Su plemental Letter No. 2 REPUBLIC OF BULGARIA EPTCEKRFRy, ,2013 International Bank for Reconstruction and Development 1818 H Street, N.W. Washington, D.C. 20433 United States of America Re: Loan No. 7612 BG (Social Inclusion Project) Performance Monitoring Indicators Dear Sirs and Mesdames: This refers to the provisions of Part A of Section II of Schedule 2 to the Loan Agreement dated November 18, 2008 between the Republic of Bulgaria (the Borrower) and the International Bank for Reconstruction and Development (the Bank) for the above-captioned Project. The Borrower hereby confirms to the Bank 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 objective thereof. Very truly yours, REPUBLIC OF BULGARIA By____ Authorized Representative Title ItJ!STEF ILE r JACCE Attachment: Results Framework and Monitoring Attachment to Supplemental Letter No. 2 Results Framework and Monitoring BULGARIA: SOCIAL INCLUSION PROJECT (LOAN NO. 7612 BG) roject Development Obiective (PDO): he project development objective for the Social Inclusion Project is to promote social inclusion through increasing the school readiness of children below the age of 7, targeting low-income and marginalized milies (including children with a disability and other special needs). Cumulative Target Values S Responsibility Unitof Bselie Frqueny fDatat PDO Level Results Indicators* dUnit of Baseline Frequency Methodology for Data 0 Measure (2012) Collection 2012 2013 2014 2015 2012 (baseline Standardized school idicaor Oe: ipactevalati. readmness diagnostic test iare of vulnerable children aged 6 who pass the school L percent 36% 36% 40% impact evaluation administered to children MLSP admness diagnostic test 2 ey' aged 6 participating in the project idicator Two: umber of children aged 3-7 newly enrolled in El number 0 0 300 2 000 3 000 Annually SIP reporting forms MLSP ndergartens and preschool groups through the Project from municipalities dicator Three: SIP reporting forms Limber of children with disabilities and other special from municipalities eds enrolled in mainstream kindergartens and preschool E number 0 0 0 50 150 Annually based on information MLSP oups through the Project provided from kindergartens dicator Four:SIreotnfrm imber of beneficiaries of the "Early Intervention of E number 0 0 0 500 1 500 Quarterly SIP reporting forms MLSP sabilities" service from municipalities ITERMEDIATE RESULTS termediate Result (Part One): Integrated social and childcare services iis component consists of a menu of community subprojects including services and infrastructure investments from which the municipality can choose according to its needs. It covers provision of a set of egrated social and childcare services for parents and children from marginalized groups and children with a disability. rermediate Result indicator One: Number of newly SIP reporting forms -ated places in kindergarten and preschool groups O number 0 0 1 600 1 600 1 600 Quarterly SIP reporties MLSP ough the Project from municipalities fermediate Result indicator Two: Number of newly SIP reporting forms ated facilities for delivery of integrated social inclusion E number 0 0 68 68 68 Quarterly from municipalities MLSP vices through the Project ermediate Result indicator Three: Number of parents children aged 0-3 who received parenting skills L] number 0 0 0 5 000 10000 Quarterly SIP reporting forms MLSP inseling from municipalities 'ermediate Result indicator Four: Number of children x 0-7who benefitted from the "Health Consultation" [l number 0 0 0 5000 10000 Quarterly SIP reporting forms MLSP vices from municipalities termediate Result (Part Two): Capacity Building is component supports capacity-building activities at the central and municipal level. More specifically, it will finance implementation support, project information campaigns, auditing, construction works ;pection for municipal micro-projects as well as training of staff of kindergartens, crches and municipal administration related to the integrated social inclusion services supported by the project. rerm ediate Result indicator One: Number of municipal List of participants in ff trained in public procurement rules and procedures O] number 0 120 120 120 120 Quarterly training sessions MLSP der the Project____________________ Contract with PMIS termediate Result indicator Two: PMIS PMIS PMIS PMIS developer P Project Management Information System (PMIS) l text Not due in use in use in use in use Quarterly MLSP veloped and operationalized Monitoring reports produced through PMIS termediate Result indicator Three: Number of List of participants in micipal staff trained in project reporting and monitoring L number 0 0 0 120 120 Quarterly training sessionsMLSP d evaluation termediate Result indicator Four: Number of L number 0 0 0 700 700 Quarterly List of participants in MLSP idergartens and cr&hes' staff trained under the Project training sessions