Conformed Copy - L4561 - Chongqing Urban Environment Project - Supplemental Letter 1

Page 1 PEOPLE’S REPUBLIC OF CHINA CHONGQING MUNICIPALITY November 3, 2000 International Bank for Reconstruction and Development 1818 H Street, N.W. Washington, D.C. 20433 Re: Loan No. 4561CHA (Chongqing Urban Environment Project) Performance Indicators Ladies and Gentlemen: We refer to the Loan Agreement of even date herewith between People’s Republic of China (the Borrower) and the International Bank for Reconstruction and Development (the Bank) for a Chongqing Urban Environment Project (the Project), and to the Project Agreement of same date between the Bank and Chongqing Municipality for the Project. For purposes of paragraph 11 of Schedule 2 to the Project Agreement, Chongqing Municipality shall monitor and evaluate the carrying out of the Project and the achievement of the Project’s objectives in accordance with the indicators set forth in the Annex to this Letter. Please confirm your agreement to the foregoing by signing on the form of confirmation below. Sincerely yours, CHONGQING MUNICIPALITY By /s/ Zhu Guangyao Authorized Representative AGREED: INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By /s/ Yukon Huang Authorized Representative