Conformed Copy - L4304 - Energy Conservation Project - Supplemental Letter

Page 1 PEOPLE’S REPUBLIC OF CHINA ENERGY CONSERVATION PROJECT June 18, 1998 International Bank for Reconstruction and Development 1818 H Street NW Washington D.C. 20433 Re: Loan No. 4304 CHA and GEF Trust Fund Grant No. TF 028323 (Energy Conservation Project) 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) for the Energy Conservation Project (the Project), to the GEF Trust Fund Grant Agreement of same date between the Borrower and the Bank, as implementing agency of the Global Environment Facility, and to the Project Agreement of same date between the Bank and Beijing Yuanshen Energy Saving Technology Company, Ltd., Liaoning Province Energy Conservation Technology Development Company, Ltd. and Shandong Energy Conservation Engineering Company, Ltd. for Part A of the Project (the Project Agreement). For purposes of Part A of Schedule 5 to the Loan Agreement, Part A of Schedule 5 to the GEF Trust Fund Grant Agreement and Part A of Schedule 2 to the Project Agreement, the Borrower and the Energy Management Companies will monitor and evaluate the carrying out of the Project and the achievement of the Project’s objectives, all in accordance with the indicators 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, By /s/ Liu Xiaoming Authorized Representative CONFIRMED: INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By /s/ Jean-Michel Severino Regional Vice President East Asia and Pacific Reigon