OFFICIAL DOCUMENTS Supplemental Letter No. 2 REPUBLIC OF KOSOVO ___ L _t Ok, 2017 International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Re: Credit No. 6017-XK (Additional Financing for Agriculture and Rural Development Project) Performance Monitoring Indicators Dear Sirs and Mesdames: This refers to paragraph A of Section II of Schedule 2 to the Financing Agreement between the Republic Kosovo (the Recipient) and the International Development Association (the Association) for the above-mentioned Project. The Recipient hereby confirms to the Association that the indicators set out 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 KOSOVO By:y AutVorized Representative Attachment Attachment to Supplemental Letter No. 2 Kosovo Agriculture and Rural Development Project Additional Financing Results Framework and Monitoring Project Development Objective (PDO): The development objective of the project is to improve productivity of and access to markets by project beneficiaries in the horticulture and livestock subsectors of Kosovo and strengthen the institutional capacity of the Ministry of Agriculture, Forestri and Rural Development. Data Source/ Responsibility Cumulative Target Values Frequency for Data Comments PDO Level Results Indicators UOM Baseline Progress to Collection 0 Date r. 2017 2018 2019 2020 2021 Target values Indicator One: Yields of key Agrats Ageaos to be updated catorOe: yieldsofey Tons/ha 0 23 24.2 26.4 28.0 30 Annual Aggregators Aggregators / before end of crops supported by the project /PIU Reports PIU Project Year I Liters of milk El FADN/Green per cow on Indicator Two: Yields of milk Report farms production per animal on Paying Agency supported livestock farms supported by the Liters/cow 0 11.2 11.7 12.3 12.8 13.4 Annual Monitoring under RDGP 2ock f p bot PIU is expected to project2 Reports go up by 20% by Project end Increased Paying volume of Indicator Three: Sales of milk Aym daily sales (5 increased to processing Liters - 100 - 105 110.2 115.7 121.4 Annual Agrecy PIU Agy IU % each year companies Reports for an end of project value of 20%) Given the demand-driven nature of the project, the actual crops supported will be evident and subsequently the increase in yields of these crops will be measured in the latter stage of Project Year 1. Preliminary analyses demonstrate that vegetables and fruits that are of potential support include peppers, tomatoes, cucumbers, apples and berries 2 Project support is provided only to those semi-commercial/commercial livestock farmers that own 10 or more cows -2- Indicator Four: Sales of Aggregators' horticulture production from Tons 24 0 0 25.2 26.4 27.6 28.8 Reports / Aggregators / farmers supported by the PIU Progress PIU Aggregators Reports Beneficiaries Indicator Five: Farmers PIU Progress supported by adopting improved agricultural Number 0 656 0 1043 1491 1524 1537 Annual Reports PIU RDGP + technologies Aggregators and CF Indicator Six: Preparation of Rural Development Grant PIU Progress Program (RDGP) sub-measures L Y/N N Y Y Y Y Y Annual Reports PlU for investment support in line with EU-IPARD Guidelines Beneficiaries Farmers reditr. L Number 0 3667 4182 5209 6297 6970 6983 Annual Agnc tIU PiU agricultural assets or services Reports Paying Of which female Number 0 550 627 781 944 1045 047 Annual Agency /PIU PIu 15% Reports Intermediate Results aId Indicators Frmer diateRe sBaseline enCumulative Target Values S Responsibility Indicatrs UOM Original fger to Frequency coactor for Data Comments ga p icatos Project Dt 2071eors Collection Intermediate Result (Component 1): Transferring Knowledge to the Rural Sector Intermediate Result Indicator 3: RAS RAS tienteeda sul of innsicon 1 L Number 0 1967 0 2265 2563 2861 2861 Annual contractor Coordinator Cliet dys f tainng rovdedPIU Reports PIU Intermediate Result Indicator 2: Farmers, entrepreneurs, and Number 0 3088 0 3588 4088 4588 4588 RAS RAS association members trained for EJ Annual contractor Coordinator grant applications PIU Reports PIu Ofwhich women Number 0 334 - 538 613 688 688 15% Intermediate Result Indicator 3: RAS PIu Increased number of extension El Number 0 200 0 270 340 410 410 Annual contractors RAS staff trained in agricultural Reports Coordinator technical topics -3- Ofwhich women Number 30 40 51 62 62 15% Intermediate Result Indicator 4: RAS/ PIU/ Number of extension staff Number 0 0 0 40 80 120 120 Contractors' RAS receiving certificates Reports Coordinator Ofwhich women Number 0 0 0 6 12 18 18 15% Intermediate Result (Component 2): Enhanced Investments to Promote Rural Development Intermediate Result Indicator 5: Paying Livestock farmers adopting E] Number 0 260 283 313 338 348 Annual Agency/PIU Paying improved agricultural Progress Agency/ PIU technologies under Measure 101 Reports Intermediate Result Indicator 6: Paying Livestock farmers adopting Number 0 39 46 56 64 67 Annual Agency/PIU Paying improved agricultural Progress Agency/ PIU technologies under Measure 103 Reports Target values Intermediate Result Indicator 7: Aeato will be Farmers adopting improved Reports/PIU number of agricultural technologies for Number 0 318 675 1083 - 1083 Annual Progress PIU farmers improved horticulture Reports receiving production support from Aggregators Ofwhich women Number 47 101 160 - 162 15% Intermediate Result Indicator 8: Increase in investments by Number of farmers and enterprises in [] grants 0 656 686 726 759 772 improved products and/or financed techniques Intermediate Results Indicator 9: Grant financings appraised Number 0 0 0 7 8 15 PIU Progress PIu and approved for project Reports aggregators Ofwhich women Percentage 0 0 1 1 2 10% Intermediate Result (Component 3): Support for Irrigation Development I I I Radoniqi-T Dukagjini Radoniqi- Area in Intermediate Result Indicator Irrigio 88agni Radoniqi and 10: Area provided with Ha 0 - 0 0 2500 5848 6833 Annual Irrigation Dukagjini Dukagjini improved irrigation services Company Irrigation irrigation schemesPIU Progress Company / PU ic Reports -4- Baseline is Radoniqi average for Intermediate Result Indicator Irrigation Radoniqi both schemes H: Fee collection rate towards % 55 - 60 65 70 80 90 Annual Company / Irrigation over past 5 scheme Management, Operation PIU Progress Company / PIU years. Targets and MaintenanceReports are collection rates of actual irrigators Radoniqi Intermediate Result Indicator RWater 12: Radoniqi dam safety (No/Yes) No N N Y Y Y Annual Company! PIU plans prepared and adopted PI NY Ana Coprogressu PIU progress Other _Reports Intermediate Results Indicator 13: Grievances registered and (No/Yes) No Y Y N Y Y Y Annual Agency Paying Agency responded to within agreed Reports specified time The indicator IS One Intermediate Results Indicator . measur 14: Beneficiary participation in (No/Yes) No Y Y N Y Y Y Annual Managing Managmg ensuring civic the Working Groups for the Authority Authority engagement preparation of RDGP Measures under the project