Conformed Copy - L4197 - Waigaoqiao Thermal Power Project - Supplemental Letter

PEOPLE'S REPUBLIC OF CHINA WAIGAOQIAO THERMAL POWER PROJECT June 12, 1998 International Bank for Reconstruction and Development 1818 H Street NW Washington D.C. 20433 Re: Loan No. 4197 CHA (Waigaoqiao Thermal Power Project) Performance Indicators Ladies and Gentlemen: We refer to the Loan Agreement of even date herewith between the People's Republic of China (the Borrower) and International Bank for Reconstruction and Development (the Bank) for the Waigaoqiao Thermal Power Project (the Project), and to the Project Agreement of same date between the Bank and Shanghai Municipal Electric Power Company (SMEPC) (the Project Agreement). For purposes of Part C of Schedule 2 to the Project Agreement, SMEPC will monitor and evaluate the carrying out of the Project and the achievement of the Project's 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, SHANGHAI MUNICIPAL ELECTRIC POWER COMPANY By /s/ Li Zhaoxing Authorized Representative CONFIRMED: INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By /s/ Sven Sandstrom Authorized Representative