Conformed Copy - TF020738 - Third Montreal Protocol Ozone Depleting Substances Phaseout Project - OTF Grant Agreement

Page 1 November 25, 1998 Minister Xiang Huaichen Ministry of Finance Sanlihe Beijing 100820 People's Republic of China Re: CHINA: Advance for Preparation of the Third Montreal Protocol Ozone Depleting Substances Phaseout Project OTF-Project Preparation Advance VIII - OTF-PPA No. TF 020738 Dear Minister Xiang, I am writing on behalf of the International Bank for Reconstruction and Development, acting as Trustee of the Ozone Projects Trust Fund (the Trustee), to indicate the Trustee's agreement to grant to the. People's Republic of China (the Recipient) an Advance in an amount not exceeding six hundred ninety two thousand four hundred dollars (US$692,400) (the Advance). The purpose of the Advance is to finance certain expenditures required for the Hefei General Machinery Research Institute (GMRI): (a) for the drafting of performance and test standards for HCFC-22 compressors and provision of two high quality optical measuring devices; (b) for the conversion of GMRI's compressor test equipment from CFC-12 pressure levels to HCFC-22 higher pressure levels; and (c) for the development of a product licensing and quality control system for HCFC-22 based refrigerating appliances. The Recipient has, requested the financial assistance of the Ozone Projects Trust Fund for this purpose. The Advance is granted for the purpose described, and on the terms and conditions set forth in Attachments I-II hereto. The Recipient represents, by confirming its agreement hereunder, that the Recipient is authorized to contract and withdraw the Advance for the said purposes and on the said terms and conditions. The grant of the Advance does not constitute or imply any commitment on the part of the Trustee, the International Bank for Reconstruction and Development in its own capacity or the International Development Association, to assist in financing the project for the preparation of which the Advance is granted. The Government of the People's Republic of China hereby acknowledges that the Advance is not subject to any taxes. Please confirm your agreement with the foregoing, on behalf of the People's Republic of China, by countersigning, dating the two original copies of this Letter of Agreement and returning to us one original, as countersigned. This Letter of Agreement will become effective as of the date of countersignature. Sincerely yours, INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Acting as Trustee of the Ozone Projects Trust Fund By /s/ Yukon Huang Country Director, China East Asia and Pacific Region Page 2 AGREED: PEOPLE'S REPUBLIC OF CHINA By /s/ Pan Xiaojiang Authorized Representatative Dated: January 6, 1999 Attachments. ATTACHMENT I Purposes, Terms and Conditions of Advance 1. The objective of the Advance is to finance activities (the Activities) required to complete the preparation Of Ozone Depleting Substance (ODS) phaseout projects and phaseout strategies. The activities are as. follows: Based on a work program agreed between the Recipient