Conformed Copy - C3251 - Sichuan Urban Environment Project - Supplemental Letter 1

Page 1 2000 International Bank for Reconstruction & Development International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Re: Loan No. 4496 CHA and Credit No. 3251 CHA (Sichuan Urban Environment Project) Performance Indicators Dear Sirs and Madams: I refer to the Development Credit Agreement between People’s Republic of China (the Borrower) and International Development Association (the Association), the Loan Agreement between the International Bank for Reconstruction and Development (the Bank) and the Borrower and the Project Agreement among the Association, the Bank and Sichuan Province (Sichuan), all of even date for the above-mentioned Project. For purposes of paragraph 12 of Schedule 2 to the Project Agreement, Sichuan Province shall monitor and evaluate the Project 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, SICHUAN PROVINCE By /s/ Authorized Representative AGREED: INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONAL DEVELOPMENT ASSOCIATION By /s/ Authorized Representative