Conformed Copy - L4325 - Forestry Development in Poor Areas Project - Supplemental Letter

Page 1 PEOPLE’S REPUBLIC OF CHINA July 31, 1998 International Development Association 1818 H Street, N. W. Washington, D.C. 20433 United States of America Re: Interim Fund Development Credit Agreement No. N039-CHA Loan No. 4325-CHA (Forestry Development in Poor Areas Project) Performance Indicators Ladies and Gentlemen: We refer to the Interim Fund Development Credit Agreement (ITF Development Credit Agreement) of even date herewith between the People’s Republic of China (the Borrower) and International Development Association (the Association), as Administrator of the interim trust fund established with funds contributed by certain members of IDA pursuant to Resolution No. IDA 184 of the Board of Governors of IDA (the Administrator) for a Forestry Development in Poor Areas Project (the Project) and to the Loan Agreement of same date between the Borrower and the International Bank for Reconstruction and Development (the Bank) for the Project. For purposes of Part F.1 (a) of Schedule 4 to the ITF Development Credit Agreement, the Borrower will monitor and evaluate, and will cause each Project Province to monitor and evaluate, the carrying out of the Project in accordance with the indicators set forth or referred to in the annex to this letter. Forestry Development In Poor Areas Project Loan No. 4325-CHA ITF Credit No. N039-CHA 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 By /s/ Authorized Representative CONFIRMED BY INTERNATIONAL DEVELOPMENT ASSOCIATION as Administrator of the Interim trust fund established with funds contributed by certain members of International Development Association pursuant to Resolution No. IDA 184 of the Board of Governors International Development Association Page 2 By /s/ Acting Regional Vice President East Asia and Pacific