Conformed Copy - L4161 - Heilongjiang Agricultural Development Project - Supplemental Letter

Page 1 PEOPLE’S REPUBLIC OF CHINA HEILONGJIANG PROVINCE June 26, 1997 International Bank for Reconstruction and Development 1818 H. Street N.W. Washington, D.C. 20433 Re: Loan No.4161-CHA (Heilongjiang Agricultural Development Project) Performance Indicators Gentlemen: We refer to the Loan Agreement of even date herewith between the People’s Republic of China (the Borrower) and International Bank for Reconstruction and Development (the Bank) for a Heilongjiang Agricultural Development Project (the Project) and to the Project Agreement of same date between the Bank and Heilongjiang Province (the Province) for the Project (the Project Agreement). For purposes of Parts C.7(i) and E.1 of Schedule 2 to the Project Agreement, the Province will monitor and evaluate the carrying out of the Project and the achievement of the Project’s objectives, and the Beneficiaries of Agroprocessing Sub-loans will monitor and evaluate the implementation of their Agroprocessing Subprojects, all in accordance with the indicators set forth in the Annex to this letter. Furthermore, the air and wastewater emissions of the Beneficiaries’ plants will be monitored by the local environmental protection bureau against the national standards established by the Borrower, and the wastewater emissions will also be monitored by the team of experts referred to in Part A.2 of Schedule 2 to the Project Agreement. Please confirm your agreement to the foregoing by signing the form of confirmation in the space provided below. Sincerely yours, HEILONGJIANG PROVINCE By /s/ Authorized Representative CONFIRMED: International Bank for Reconstruction and Development By /s/ Regional Vice President East Asia and Pacific Page 2