Conformed Copy - C1997 - Shaanxi Agricultural Development Project - Amendment 1

Page 1 June 3, 1991 Mr. Wang Bingqian Minister of Finance Ministry of Finance Sanlihe Beijing 100820 People's Republic of China Re: Development Credit No. 1997-CHA (Shaanxi Agricultural Development Project) - Amendment of the Development Credit Agreement Dear Minister Wang: We refer to the Development Credit Agreement (Shaanxi Agricultural Development Project) between the People's Republic of China (the Borrower) and the International Development Association (the Association) dated September 14, 1989, and to the Project Agreement of even date between the Association and Shaanxi Province. We refer also to your telex of February 5, 1991, requesting: (i) a reallocation of proceeds under the Credit; (ii) adding Part F to Category (1) in the table set forth in paragraph 1 of Schedule 1 to the Development Credit Agreement; and (iii) certain modifications to be made to the Project description. The Association is pleased to inform you that, after due consideration, it has agreed to the above request. Therefore, the Association proposes to amend the Development Credit Agreement as follows: 1. Categories (1) and (2) of the table set forth in paragraph 1 of Schedule 1 are amended to read as follows: Category Amount of the Credit % of Allocated (Expressed Expenditures in SDR Equivalent to be Financed (1) Civil works (other 13,750,000 55% than in (2) below) for Parts A,B, C, D, E and F of the Project 15,720,000 35% 2. Paragraph 1 of Part C of Schedule 2 is amended to read as follows: "1. Establishment of lined and unlined fish ponds in six counties and the provision of supporting facilities including hatcheries, feed mills, technical service centers and marketing centers." 3. Paragraph 1 of Part D of Schedule 2 is amended to read as follows: "Construction of poultry farms \1aor poultry development." 4. Paragraph 1 of Part F of Schedule 2 is hereby amended to read as follows: "1. Construction of a slaughter and meat packing plant for rabbits and cattle, equipped with cooling and freezing facilities." You will note that machine excavation is eligible for financing under Civil Works (Category 1). Also we have revised the Project description to permit the flexibility you have requested. Please confirm your agreement with the foregoing proposed amendments by signing and dating this letter in the space provided below. This amendment may be executed in two counterparts, each of which shall be an original. Upon your confirmation, please Page 2 return one fully executed original to us. This amendment will be effective retroactively to and including April 9, 1991 upon receipt by the Association of one fully executed original of this amendment. Because of their interest in this matter a copy of this letter is being sent to the Shaanxi Provincial People's Government for their records. Sincerely, By /s/ David Pearce Acting Director China and Mongolia Department CONFIRMED: PEOPLE'S REPUBLIC OF CHINA By /s/ Authorized Representative Date: 15/7/91 cc: Mr. Luo Qing Director World Bank Department Ministry of Finance Beijing, China Shaanxi Provincial People's Government Xincheng, Xian, Shaanxi Province People's Republic of China