Conformed Copy - C1887 - Coastal Lands Development Project - Amendment 1

Page 1 October 4, 1990 Ministry of Finance Sanlihe Beijing People's Republic of China Jiangsu Provincial People's Government No.68, Beijing Xi Road, Nanjing Jiangsu Province People's Republic of China Zhejinag Provincial People's Government No.2 Shengfu Road Hangzhou, Zhejiang Province People's Republic of China Re: Credit No. 1887-CHA Loan No. 2924-CHA (Coastal Lands Development Project) Dear Sirs: Please refer to the Development Credit Agreement for the above-referenced Project entered into between the People's Republic of China (the Borrower) and the International Development Association (the Association) dated September 16, 1988; the Loan Agreement for the Project entered into between the Borrower and the International Bank for Reconstruction and Development (the Bank), and the accompanying Project Agreement entered into among the Association, the Bank, Jiangsu Province and Zhejiang Province, all of even date. We are pleased to inform you that the Association agrees to your request: (1) to revise arrangements for passage of funds to project beneficiaries as detailed in your letter of July 21, 1990 and your telex of March 30, 1990; (2) to permit shrimp pond improvement under the Project in Zhejiang Province; (3) to reallocate funds among Categories under the Loan and Credit Agreement as well as increase some disbursement percentages; and (4) to permit concessionary lending for public works infrastructure investments. Therefore we propose the following amendments: I. Development Credit Agreement A. Section 1.02 Paragraph (c) of Section 1.02 is deleted and paragraphs (d) through (i) are relettered respectively as paragraphs (c) through (h). B. Section 4.01 Paragraphs (c) and (d) are deleted. C. Section 4.02 Section 4.02 is deleted and a new Section 4.02 is added as follows: "Pursuant to Section 7.01 (d) of the General Conditions, the following additional event is specified, namely that the event specified in paragraph (a) of Section 4.01 of this Agreement shall continue for a period of sixty (60) days after notice thereof shall have been given by the Association to the Borrower." D. Schedule 1. Paragraph 1 Page 2 The table in Schedule 1, paragraph 1 is deleted and replaced by table set forth in the Annex hereto. Schedule 2 Part B. Paragraph 1. Aquaculture The words "construction of about 1,400 ha. of ponds for shrimp" are deleted and the words "construction and improvement of about 3,000 ha. of shrimp ponds" are substituted there for. II. Loan Agreement A. Section 4.02 Section 4.02 is deleted and a new Section 4.02 is added as follows: "Section 4.02 . Pursuant to Section 7.01 (h) of the General Conditions, the following additional event is specified namely, the event set forth in Section 4.02 of the Development Credit Agreement." III. Project Agreement A. Section 2.06 Section 2.06 is deleted and a new Section 2.06 is added as follows: "Section 2.06. Each of the Provinces shall: (i) cause Sub - loans to be made under terms and conditions acceptable to the Bank and the Association; (ii) cause interest to be charged on such Sub-loans at ABC's prevailing rates for similar loans for similar purposes, or, in the case of Sub-loans for construction of public works infrastructure by government entities, at such other rates as shall be acceptable to the Association and the Bank; and (iii) from time to time, review interest charges on Sub-loans with the Association in light of the cost of funds to the Province, and to any entity engaged in making Sub-loans under the Project, the financial viability of such entities, as well as changes in ABC's interest rates. B. Section 2.07 Section 2.07 is deleted in its entirety. C. Section 3.01 The words "cause the respective Corporation to maintain" in Section 3.01 (a) (ii) are deleted and the following substituted there for: "cause each entity engaged in making Sub-loans under the Project to maintain" If you agree with the foregoing proposed amendments, please confirm your acceptance of such amendments by signing and dating the confirmation copy attached hereto and returning the same to us. These amendments shall take effect as of the last date on which acceptance of these amendments is confirmed. Sincerely, By /s/ Shahid Javed Burki Page 3 Director Country Department 3 Asia Region Attach . Annex CONFIRMED: MINISTRY OF FINANCE By /s/ Luo Qing Authorized Representative Please Print Name: Luo Qing Date: 13/11/19990 CONFIRMED Jiangsu Provincial People's Government By: Authorized Representative Date: 3/12/1990 CONFIRMED: ZHEJIANG PROVINCIAL PEOPLE'S GOVERNMENT By /s/ Xu XingGuan Authorized Representative Date: 8.11.1990 CHINA COASTAL LANDS DEVELOPMENT PROJECT Amount of the Amount of % of Expendi- Credit allocated Loan Alloca- tures to be (Expressed in (Expressed in Financed Category SDR Equivalent) Dollar Equivalent) (1) Works under Part A of the Project for: (a) pond development and 19,090,000 3,560,000 50% lever establishment (b) plantation establish- ment and on-farm works 900,000 4,060,000 50% (c) buildings and roads 1,470,000 6,110,000 40% (2) Works under Part B of the Project for: (a) see dikes 4,400,000 2,700,000 80% (b) pond development 2,640,000 6,600,000 46% (c) buildings and roads 730,000 600,000 44% Page 4 (3) Equipment, vehicles and materials: (a) under Part A 8,790,000 13,470,000 100% of foreign expenditures 100% of local (b) under Part B 5,680,000 2,500,000 expenditures (ex- factory cost), and 75% of local expenditures for other items procured locally (4) Consultants' services and overseas training (a) under Part A of the Project 150,000 400,000 100% (b) under Part B of the Project 150,000 0 Total 44,000,000 40,000,000