Conformed Copy - L4200 - Xiaolangdi Multipurpose Project: Stage II - Supplemental Letter 1

Page 1 PEOPLE’S REPUBLIC OF CHINA YELLOW RIVER WATER AND HYDROPOWER DEVELOPMENT CORPORATION September 11, 1997 International Bank for Reconstruction and Development 1818 H. Street N.W. Washington, D.C. 20433 Re: Loan No. 4200 CHA (Xiaolangdi Multipurpose Project: Stage II) Performance Indicators Ladies and Gentlemen: We refer to the Loan Agreement of even date herewith between the People’s Republic of China (the Borrower) and International Bank for Reconstruction and Development (the Bank) (the Loan Agreement) for a Xiaolangdi Multipurpose Project: Stage II (the Project), and to the Project Agreement of same date between the Bank and Yellow River Water and Hydropower Development Corporation (YRWHDC) (the Project Agreement) for the Project. 1. For purposes of Part H of Schedule 4 to the Loan Agreement, the Borrower will ensure that the Project is monitored and evaluated in accordance with the indicators set forth in the Annex to this letter. 2. For purposes of Part F of Schedule 2 to the Project Agreement, YRWHDC will monitor and evaluate the carrying out of Parts A through C of the Project in accordance with the indicators applicable to said Parts that are set forth in the Annex to this letter. Please confirm your agreement to the foregoing by signing the form of confirmation in the space provided below. Sincerely yours, PEOPLE’S REPUBLIC OF CHINA YELLOW RIVER WATER AND HYDROPOWER DEVELOPMENT CORPORATION By:__________________________ Authorized Representative CONFIRMED: International Bank for Reconstruction and Development By: ________________________ Authorized Representative Annex Page 2 ANNEX IS IN TABLE FORMAT AND DONE IN THE REGION