Conformed Copy - C3271 - Enterprise Reform Project - Supplemental Letter 3

Page 1 PEOPLE’S REPUBLIC OF CHINA XINJIANG UYGHUR AUTONOMOUS REGION December 6, 2001 International Development Association 1818 H Street, N.W. Washington, D.C. 20433 Re: Credit No 3271 CHA (Enterprise Reform Project - A Snow Disaster Recovery Component) Performance Indicators Dear Sirs and Madames: We refer to: (i) the Development Credit Agreement dated December 30, 1999 (the Development Credit Agreement) between People’s Republic of China (the Borrower) and the International Development Association (the Association) for the above-captioned Project (the Project), as amended by the letter of amendment of even date herewith (the Development Credit Agreement); and (ii) the Xinjiang Uyghur (Tacheng) Project Agreement of even date herewith between the Association and Xinjiang Uyghur Autonomous Region for A Snow Disaster Recovery Component of the Project (Xinjiang Uyghur (Tacheng) Project Agreement). For purposes of paragraph 4(a) of Schedule 2 to the Xinjiang Uyghur (Tacheng) Project Agreement, Xinjiang Uyghur Autonomous Region shall monitor and evaluate the carrying out of Part E of the Project and the achievement of the objectives of said Part E 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, XINJIANG UYGHUR AUTONOMOUS REGION By /s/ Ju Kuilin Authorized Representative AGREED: INTERNATIONAL DEVELOPMENT ASSOCIATION By /s/ Yukon Huang Authorized Representative