Conformed Copy - C2799 - Hubei Urban Environmental Project - Amendment

Page 1 The World Bank INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION Ms. Zou Jiayi Acting Director General International Department Ministry of Finance Sanlihe, Beijing People's Republic of China Dear Ms. Zou: 1818 H S treet N.W. Washington, D.C. 20433 U.S.A. (202)477 - 1234 Cable Address: INTBAFRAD Cable Address: INDEVAS CONFORMED COPY June 19, 2002 Re: Hubei Urban Environment Project (CR 2799 CHA and LN 3966 CHA) Amendment to Development Credit Agreement and Extension of Closing of Closing Date on the Credit and the Loan 1. I refer to (i) the Development Credit Agreement between the People's Republic of China (the Borrower) and the International Development Association (the Association), dated January 31, 1996 (the Development Credit Agreement); and (ii) to the Loan Agreement between the Borrower and the International Bank for Reconstruction and Development (the Bank), dated Janaury 31, 1996 (the Loan Agreement, pursuant to both of which the Association agreed to extend to the Borrower a credit (the Credit) and a loan (the Loan) to assist in the financing of the Hubei Urban Environmental Project (the Project). I further refer to a letter dated August 7, 2001 from the Ministry of Finance, on behalf of the Borrower, requesting the utilization of Project cost savings to expand the wastewater collection and treatment works, and the solid waste management in certain Project Municipalities, and further requesting an extension of the closing date. 2. I am pleased to inform you that the Association and the Bank concur with the Borrower's proposals. To give effect thereto, the Association agrees to amend the Development Credit Agreement as hereinafter provided. 3. Sections 1.02(n) and 1.02(o) are amended to read as follows: "(n) "Hubei Environmental Impact Assessment" means, collectively, (i) the environmental impact assessment approved by Hubei's Provincial Environmental Protection Bureau on May 26, 1995, and (ii) the supplemental environmental impact assessment approved by Hubei's Provincial Environmental Protection Bureau in [March 2002], which include environmental mitigation measures as well as the administrative and monitoring arrangements ensuring the implementation of said measures." "(o) "Hubei Resettlement Action Plan" means, collectively, (i) Hubei's land acquisition, removal and resettlement plan, as submitted to the Association under cover of a letter dated November 3, 1995, and (ii) the supplemental Resettlement Action Plan dated February 2002, which include the procedures governing land acquisition, resettlement and compensation, as well as the reporting and monitoring arrangements to ensure compliance with the said Plan." Page 2 Ms. Zou Jiayi 2 June 19, 2002 4. The Association and the Bank further establish June 30, 2004 as the later date for purposes of, respectively, Section 2.03 of the Development Credit Agreement and Section 2.03 of the Loan Agreement. 5. Please confirm the agreement of the Borrower to the amendment set forth in paragraphs 3 above by countersigning and dating the corresponding form of confirmation set forth below, and returning one fully signed original of this amendment letter to us. One fully signed original should be retained by the Borrower. 6. Except as specifically amended hereby, all other provisions of the Development Credit Agreement and the Loan Agreement remain in full force and effect. Upon receipt by the Association of the copy of this letter of amendment duly countersigned by the authorized representative of the Borrower, the above amendment shall become effective as of the date of countersignature of this letter of amendment. ,3 Sincerely, /S/ Dheepak Bhattasali Yukon Huang Country Director & Chief of Mission CONFIRMED PEOPLE'S REPUBLIC OF CHINA By: Rui Yuehua Title: Deputy Director General Date: June 25, 2002 WB02139 N:\MOESUHUBEMubeiUrbEnv-DCA-amdt l .doc June 19, 2002 12:21 PM