Conformed Copy - L4172 - Inner Mongolia (Tuoketuo) Thermal Power Project - Supplemental Letter 1

Page 1 PEOPLE’S REPUBLIC OF CHINA INNER MONGOLIA (TUOKETUO)THERMAL POWER PROJECT June 26, 1998 International Bank for Reconstruction and Development 1818 H Street NW Washington D.C. 20433 Re: Loan No. 4172 CHA (Inner Mongolia (Tuoketuo) Thermal Power Project) Performance Indicators Ladies and 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 the Inner Mongolia (Tuoketuo) Thermal Power Project (the Project), to the Project Agreement of same date between the Bank and North China Power Group Company (NCPGC) for Part B of the Project (the NCPGC Project Agreement) and to the Project Agreement of same date between the Bank and Tuoketuo Electric Power Generation Company (TEPGC) for Part A of the Project (the TEPGC Project Agreement). For purposes of Part C of Schedule 2 to the TEPGC Project Agreement, TEPGC will monitor and evaluate the carrying out of Part A of the Project and the achievement of the Project’s objectives, all in accordance with he indicators set forth in the Annex to this letter. Please confirm your agreement to the foregoing by signing the form of confirmation in the space provided below. Sincerely yours, TUOKETUO ELECTRIC POWER GENERATION COMPANY By: /s/ Liu Xiaoming Authorized Representative CONFIRMED: INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By: /s/ Jean-Michel Severino Authorized Representative