Conformed Copy - L4617 - Liao River Basin Project - Supplemental Letter 2

Page 1 PEOPLE’S REPUBLIC OF CHINA LIAONING PROVINCE January 18, 2002 International Bank for Reconstruction and Development 1818 H Street, N.W. Washington, D.C. 20433 Re: Loan No 4617 CHA (Liao River Basin Project) Performance Indicators Dear Sirs and Madames: 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 the above-captioned Project (the Project), and to the Project Agreement of same date between the Bank and Liaoning Province for the Project. For purposes of paragraph 13(a) of Schedule 2 to the Project Agreement, Liaoning Province 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, LIAONING PROVINCE By /s/ Zou Jiayi ___ Authorized Representative AGREED: INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By /s/ Yukon Huang Authorized Representative Page 2