Conformed Copy - C3201 - Health Nine Project - Amendment 1

Page 1 March 29, 2001 Ms. Zou Jiayi Acting Director-General International Department Ministry of Finance Beijing, China Dear Ms. Zou: Re: Health Nine Project (Cr. 3201-CHA & Ln. 4462-CHA) Amendment of the Development Credit Agreement I refer to the Development Credit Agreement dated July 29, 1999, between the Republic of China (the Borrower) and the International Development Association (the Association) for the above referenced Project (DCA). I refer also to your letter dated March 7, 2001, requesting the Association to amend the DCA by increasing the percentage of expenditures for Part C(2) of the Project to be financed by the Credit and the Loan and to reallocate the amounts of the Credit and the Loan presently allocated for Part (C)(2) of the Project. I am pleased to inform you that the Association agrees to reallocate SDR 169,000 from Category 7(a) to Categories 7(b)(i) and 7(d) and US$152,000 from Category 7(a) to Categories 7(b)(i) and 7(d). Additionally, the Association agrees to amend the table in paragraph 1 of Schedule 1 to the DCA by increasing the disbursement percentage of Category (7)(b)(i) from 65% to 100% and the disbursement percentage of Category (7)(d) from 60% to 85%. After the amendment and reallocation, the allocation of the amounts of the Credit and the Loan to Category (7) for Part C(2) of the Project and the percentage of expenditures to be financed thereunder will read as shown in the Annex to this letter. Except as specifically amended by this letter, all other provisions of the DCA shall remain in full force and effect. Please confirm your agreement to the amendment set out above by having an authorized representative of the Borrower sign and date the form of confirmation on the enclosed duplicate original of this letter and returning it to us for our files. Upon receipt of the copy of this letter countersigned on behalf of the Borrower, this amendment will become effective as of the date of countersignature. In view of their interest in the matter, I am sending a copy of this letter to the Ministry of Health. Sincerely, By /s/ Yukon Huang Country Director, China East Asia and Pacific Region CONFIRMED PEOPLE