Conformed Copy - L4016 - Coal Pilot Project - Amendment 2

Page 1 May 6, 1998 His Excellency Ihor Mitiukov Minister of Finance Ministry of Finance 12/2 Hrushevsky Street Kyiv, Ukraine 252008 Re: Loan No. 4016 UA (Coal Pilot Project) Amendment to Loan Agreement Excellency: We refer to the Loan Agreement (Coal Pilot Project), dated July 11, 1996, between Ukraine (the Borrower) and the International Bank for Reconstruction and Development (the Bank), as amended on April 7, 1997, and to the letter of Mr. Makatsariya to the Bank, dated March 3, 1998, requesting that the Loan Agreement be amended in order to allow for funding of costs associated with audits required under the Loan Agreement. We are pleased to inform you that the Bank accedes to your request. Accordingly, the Loan Agreement is hereby amended as follows: 1. Recital D to the Loan Agreement is hereby amended by replacing the reference to Part E of the Project with Parts E.1 and E.2. 2. Section 2.02 (b) to the Loan Agreement is hereby amended by replacing the reference to Part E of the Project with Parts E.1 and E.2 in connection with Special Account A and by adding a reference to Part E.3 of the Project in connection with Special Account C. As a result, the revised Section 2.02 (b) shall read as follows: