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Page 1 January 8, 1999 Mr. Roman Shpek Chairman, National Agency for Development and European Integration Bohdana Khmelnytskoho 19a Kyiv, 252030 Ukraine Re: Japanese Grant Agreement for Preparation of a Private Sector Development Project - Grant No. TF025596 Dear Mr. Shpek: I am writing on behalf of the International Bank for Reconstruction and Development (the Bank) to indicate the Bank's agreement, as administrator of grant funds provided by Japan, to make a grant in an amount not exceeding United States Dollars five hundred six thousand five hundred (US$506,500) (the Grant) to Ukraine (the Recipient). The Grant is made in response to the Recipient