Conformed Copy - C1885 - Northern Irrigation Project - Amendment 2

Page 1 November 30, 1990 Mr. Uang Bing-qian Minister of Finance Ministry of Finance Sanlihe Beijing People's Republic of China Re: Credit No. 1885-CHA (Northern Irrigation Project) Dear Minister Wang: Please refer to the Development Credit Agreement for the above-referenced Project entered into between the People's Republic of China (the Borrower) and the International Development Association (the Association) dated August 11, 1988. We are pleased to inform you that the Association agrees to your request to permit reallocate funds among categories and to add a new category for purposes of a mobilization advance for civil works contracts under Part A of the Project (other than the trunk drain and pumping station). Therefore, we propose the following amendment: Development Credit Agreement The table in Paragraph 1 of Schedule 1 is deleted and replaced by the table Amount of the Credit Allocated % of (Expressed in Expenditures Category SDR Equivalent) to be Financed (1) Works: (a) Civil Works under Part A of the Project for: (i) trunk drain and 6,350,000 50% Honghebu pumping station (ii) mobilization advance 360,000 100% for (a) (i) above (iii) other than (i) 9,580,000 30% and (ii) above (excluding the cost of materials under (2) (a)below) (iv) mobilization advance 1,700,000 100% for (a) (iii) above (b) Civil works under Part B of the Project for: drains, canals, structures 13,610,000 40% buildings, on-farm, facilities, fish ponds and land development (excluding the cost of steel under (2) Page 2 (b) below, cement and timber) (2) Machinery, equipment and ) 100% of foreign materials: ) expenditures, ) 100% of local (a) under Part A of the Project 27,870,000 ) expenditures (ex-factory cost) (b) under Part B of the Project 11,460,000 ) and 75% of local ) expenditures for ) other items ) procured locally (3) Consultants' services, 100% overseas training and study tours (a) under Part A of the Project 710,000 (b) under Part B of the Project 1,060,000 Total 72,700,000 If you agree with the foregoing proposed amendment, please confirm your acceptance of the amendment by signing and dating the confirmation copy attached hereto and returning the same to the Association. Because of their interest in the matter as parties to the Project Agreement for the above-referenced Project, copies of this letter are being sent to the Vice Chairmen of Nei Mongolia and Ningxia Hui Autonomous Regions. Sincerely, By /s/ Richard D. Stern Acting Director Country Department 3 Asia Region cc: Mr. Alatan Ao Qier, Vice Chairman Inner Mongolia Autonomous Regional Government 1 Xinhua Jie Hohhot, Inner Mongolia, China Mr. Li Chengyu, Vice Chairman Ningxia Hui Autonomous Regional Government 217 Xi Jie Feng Jie Yinchuan, Ningxia, China CONFIRMED: By /s/ Luo Qing, Director World Bank Department, Ministry of Finance, People's Republic of China Authorized Representative Date: 1990.12.20 (December 20, 1990)