Conformed Copy - C3093 - Tarim Basin II Project - Supplemental Letter

Page 1 PEOPLE’S REPUBLIC OF CHINA July 31, 1998 International Development Association 1818 H. Street N.W. Washington, D.C 20433 U.S.A. Re: Credit No. 3093 CHA, Loan No.4341 CHA (Tarim Basin II Project) Project Areas; Performance Indicators Gentlemen: We refer to the Development Credit Agreement (Credit Agreement) of even date herewith between the People’s Republic of China (the Borrower) and International Development Association (the Association) for a Tarim Basin II Project (the Project), to the Loan Agreement (Loan Agreement) of same date between the Borrower and the International Bank for Reconstruction and Development (the Bank) for the Project, and to the Project Agreement (Project Agreement) of same date among the Association, the Bank and Xinjiang Uygur Autonomous Region (XUAR) for the Project. For purposes of Section 1.02(j) of the Credit Agreement, the Project Areas shall consist of those indicated in the maps annexed to the Association’s Project Appraisal Document for this Project. For purposes of Part J.1 of Schedule 2 to the Project Agreement, XUAR shall monitor and evaluate the carrying out of the Project and the achievement of its objectives, all in accordance with the 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, PEOPLE’S REPUBLIC OF CHINA By Authorized Representative CONFIRMED: International Development Association By Authorized Representative ANNEX Indicators The monitoring and evaluation information (indicators) which is of particular interest to the Bank is listed below. For each factor, the information source that will be used to gather the information is indicated, namely; the MIS system (MIS), government statistics (GS), household surveys (HS) and other studies (OS). Two particular types of information are required; information on achievement of project objectives, and the impact of individual project components. 1. Achievement of Project Objectives 1.1 Reduction of Poverty Level in Participating Households 1.2 Increase Incomes through Irrigation Development 1.3 Improved Water Management in the Tarim Basin Page 2 Information 2. Impact of Project Components 2.1 Water Conservancy 2.2 Land Improvement and Reclamation 2.3 Agriculture 2.4 Environmental Protection 2.5 Software (Research, Training and Study Tours)