Conformed Copy - C1885 - Northern Irrigation Project - Amendment 1

Page 1 January 6, 1989 The Minister of Finance Sanlihe Baijing People's Republic of China Re: Coastal Lands Development Project Amendments to Loan and Development Credit Agreements Dear Mr. Minister: Thank you very much of your Ministry's letter dated November 12, 1988 proposing separate billing arrangements under the Coastal Lands Development Project (Credit-1887/Loan 2924) and the Northern Irrigation Project (Credit 1885). We are pleased to inform you that our Accounting Division will be able to make necessary arrangements to accommodate your proposal. Separate accounts will be established by the Accounting Division as follows: (1) Part A (Jiangsu Province) Loan 2924-O (2) Part B (Zhejiang Province) Loan 2924-1 (3) Part A (Jiangsu Province) Credit 1887-O (4) Part B IZhejiang Province) Credit 1887-1 (5) Part A (Nei Monggol Component) Credit 1885-0 (6) Part B (Ninxia Component) Credit 1885-1 We appreciate your understanding that there is no need to separate already signed legal documents for these projects. Therefore, we do not propose to make formal amendments for this purpose, except for the adjustments in the Amortization Schedule to the Loan Agreement as well as the correction of the disbursement percentage in Schedule 1 to the Development Credit Agreement, both for the Coastal Lands Development Project. Accordingly, the following amendments are proposed for your agreement: 1. The Amortization Schedule to the Loan Agreement is amended to read as follows: Schedule Amortization Schedule Part A of the Project Date Payment Due Payment of Principal (Expressed in dollars)* On each May 1 and November 1 beginning November 1, 1993 through May 1, 2008 920,000 Part B of the Project Date Payment Due Payment of Principal (Expressed in dollars)* On each May 1 and November 1 beginning November 1, 1993 through November 1, 2007 415,000 Page 2 On May 1, 2008 365,000 2. The disbursement percentage under Category (1)(c) in Schedule 1 to the Development Credit Agreement is changed from "24%" to "34%. Please confirm your agreement to the proposed amendments described above by signing the confirmation section provided in a copy of this letter and returning it to us. Sincerely, By /s/ Joseph R. Goldberg Acting Director China Department International Bank for Reconstruction and Development International Development Association CONFIRMED By /s/ Authorized Representative Dated: 1989.1.24