Conformed Copy - L4566 - Second Beijing Environment Project - Supplemental Letter 1

Page 1 PEOPLE’S REPUBLIC OF CHINA BEIJING MUNICIPALITY October 10, 2000 International Bank for Reconstruction and Development 1818 H Street, N.W. Washington, D.C. 20433 Re: Loan No 4566 CHA GEF Trust Fund Grant Number TF 024121 CHA (Second Beijing Environment Project) Performance Indicators Ladies and Gentlemen: We refer to the following documents, all of even date herewith, relating to the Second Beijing Environment Project (the Project): (1) the Loan Agreement between People’s Republic of China (the Borrower) and the International Bank for Reconstruction and Development (the Bank), (2) the Grant Agreement between the Borrower and the Bank, acting as an implementing agency of the Global Environment Facility (GEF), and (3) the Project Agreement between the Bank, acting on its own behalf and as an implementing agency of GEF, and Beijing Municipality. For purposes of paragraph 7 of Schedule 2 to the Project Agreement, Beijing 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, BEIJING MUNICIPALITY By /s/ Zhu Guangyao Authorized Representative AGREED: INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By /s/ Yukon Huang Authorized Representative