Conformed Copy - L4621 - Third Inland Waterways Project - Supplemental Letter 1

Page 1 PEOPLE’S REPUBLIC OF CHINA HUNAN PROVINCE CONFORMED COPY January 7, 2002 International Bank for Reconstruction and Development 1818 H Street, N.W. Washington, D.C. 20433 Re: Loan No 4621 CHA (Third Inland Waterways Project) Performance Indicators Ladies and Gentlemen: We refer to the Loan Agreement of even date herewith between People’s Republic of China (the Borrower) and the International Bank for Reconstruction and Development (the Bank) for a Third Inland Waterways Project (the Project), and to the Project Agreement of same date between the Bank and Hunan Province (Hunan) for the Project. For purposes of Part C.1 of Schedule 2 to the Project Agreement, Hunan shall, and shall cause Hunan Xiangjiang Navigation Construction and Development Corporation (Ltd.) to, monitor and evaluate the carrying out of the Project and the achievement of the Project’s objectives in accordance with the indicators set forth in the Annex to this Letter. Please confirm your agreement to the foregoing by signing on the form of confirmation below. Sincerely yours, HUNAN PROVINCE By /S/ Zou Jiayi Authorized Representative AGREED: INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By /s/ Yukon Huang Page 2 Authorized Representative