Conformed Copy - L2943 - Pharmaceuticals Project - Amendment 2

Page 1 August 7, 1989 Minister Wang Bing-qian Minister of Finance Ministry of Finance Sanlihe Beijing, China Dear Minister Wang: Re: Loan Number 2943 (CHA) (Pharmaceutical Project) Amendment to the Loan Agreement 1. We refer to the Loan Agreement (Pharmaceutical Project) between the People's Republic of China (the Borrower) and the International Bank for Reconstruction and Development (the Bank), dated December 22, 1988; to paragraph 7 of the Aide Memoire, dated June 2, 1989, of the Bank's supervision mission; and to the telex from the World Bank Department, Ministry of Finance, dated July 14, 1989, requesting amendment of Schedules 1 and 3 to the Loan Agreement, to revise the amount of the Loan to be used by the Xin Hua and Shanghai Factories. 2. As discussed by the last supervision mission, the amount of the Loan to be utilized by the Xin Hua Factory should be $5,000,000 and the amount to be utilized by the Shanghai Factory should be $4,500,000 . Therefore, the Bank hereby agrees to amend Schedule 1 to the Loan Agreement so that the amounts allocated to Categories (5), (6), (7), (8), (9) and (10) shall read as follows: Amount of the Loan Allocated (Expressed in Category Dollar Equivalent) Part C.1 of the Project (5) Goods 3,900,000 (6) Consultants' services and training 300,000 (7) Unallocated 800,000 Part C.2 of the Project: (8) Goods 3,600,000 (9) Consultants' Services and training 500,000 (10) Unallocated 400,000 The "% of Expenditures Financed" for each Category shall remain unchanged. 3. The resulting revisions to Schedule 3 (Amortization Schedule) will be reflected in the billing statement for the payment date of February 15, 1990. A revised amortization schedule will be sent to you shortly. 4. Please confirm the agreement on behalf of the Borrower to the amendments described in paragraph 2 of this letter, by signing the form of confirmation on the enclosed copy of this letter and returning it to us for our files. Very truly yours, By /s/ Zafer Ecevit Page 2 Acting Director Country Department III Asia Region CONFIRMED: By /s/ Chen Junshuo Deputy Director World Bank Department MOF