OFFICIAL THE WORLD BANK 4f#*A IBRD* IDA I WOR BANKGROUP DO CUMEN1 Id Bank Office, Beijing May 22, 2019 Mr. Zhang Wencai Director General International Economic and Financial Cooperation Department Ministry of Finance People's Republic of China People's Republic of China: Integrated Modern Agriculture Development Project (Loan Number 8321) Amendment to Loan Agreement Dear Mr. Zhang: I refer to the Loan Agreement between the People's Republic of China (the "Borrower") and the International Bank for Reconstruction and Development (the "Bank") dated February 27, 2014, (the "Loan Agreement"), for the above-mentioned project (the "Project"). I also refer to the letter dated January 31, 2019 from the Department of International Economic and Financial Cooperation, Ministry of Finance, requesting the restructuring of the Project, which requires certain amendments to the Loan Agreement. I am pleased to inform you that the Bank concurs with the request and proposes to amend the Loan Agreement as follows: 1. Section 3.01 is deleted in its entirety and replaced by the following: "3.01. The Borrower declares its commitment to the objectives of the Project. To this end, the Borrower shall, and shall cause CBE to, carry out Parts 3(a), (d) and (e) and Part 4 of the Project in accordance with the provisions of Article V of the General Conditions, and cause each Project Implementing Entity to each carry out its Respective Parts of the Project in accordance with the provisions of Article V of the General Conditions and the Project Agreement." 2. Section I.A. 1 of Schedule 2 is deleted in its entirety and replaced by the following: "1. The Borrower shall, and shall cause CBE to, maintain, throughout the period of Project implementation, a national Project management office within CBE and Project management offices within each Project Implementing Entity, all with terms of reference, powers, functions, and other resources satisfactory to the Bank, including competent staff in adequate numbers, for the purposes of implementation of the Borrower's Respective Parts of the Project and overall Project coordination, management support, monitoring and reporting including: (a) reviewing and consolidating annual work plans and budgets; Mr. Zhang Wencai Page 2 May 22, 2019 (b) ensuring adherence to agreed standards, guidelines, and procedures including ensuring, and reporting to the Bank on, compliance with the Safeguards Instruments; (c) providing overall guidance on operational aspects to the various implementing units; and (d) facilitating intra-knowledge transfer among the Project." 3. The references to "the Borrower, through SOCAD, shall" are deleted and replaced by "the Borrower shall, and shall cause CBE to" in paragraphs 1 and 2 of Section I.C of Schedule 2. 4. A new paragraph 3 is included in Section I.C of Schedule 2 to read as follows: "3. (a) To facilitate the carrying out of Parts 3(a), (d) and (e) and Part 4 of the Project, the Borrower shall enter into an Implementation Agreement with CBE ("Implementation Agreement"), under terms and conditions acceptable to the Bank. (b) The Borrower shall exercise its rights under the Implementation Agreement in such a manner as to protect the interests of the Borrower and the Bank, and to accomplish the purposes of the Loan, and except as the Bank shall otherwise agree, not assign, amend, abrogate or waive the Implementation Agreement or any provision thereof. (c) In the case of any inconsistency between the provisions of the Implementation Agreement and the provisions of this Agreement, the provisions of this Agreement shall prevail." 5. All references to "the Borrower shall" are deleted and replaced by "the Borrower shall, and shall cause CBE to," in Sections I.D, I.E and II of Schedule 2. 6. The definition of "National Project Management Office" in paragraph 21 of Section I of the Appendix is deleted in its entirety and replaced by the following: "21. "National Project Management Office" and "NPMO" mean the office to be maintained by CBE in accordance with Schedule 2, Section I, Paragraphs A.I to this Agreement for the purposes of: (a) overall Project monitoring, evaluation and reporting, including reviewing and consolidating annual work plans and budgets and ensuring, and reporting to the Bank on, compliance with the Safeguards Instruments; and (b) implementation of the Borrower's Respective Part of the Project." 7. The definition of "SOCAD" in paragraph 35 of Section I of the Appendix is deleted in its entirety, and the subsequent paragraphs are renumbered accordingly. Mr. Zhang Wencai Page 3 May 22, 2019 8. The following new definitions are added as paragraphs 40 and 41 in Section I of the Appendix to read as follows: "40. "CBE" means the Center of Budget Evaluation, an institution duly established by the Borrower's Ministry of Finance in 1999 and operating in accordance with the Borrower's laws and any successor thereto. 41. "Implementation Agreement" means, the agreement referred to in Section I.C.3 of Schedule 2 to the Loan Agreement, to be entered into between the Borrower's Ministry of Finance and CBE to carry out Parts 3(a), (d) and (e) and Part 4 of the Project, as the same may be amended from time to time, and such term includes all schedules and supplements to said agreement." Except as specifically amended by this amendment letter, all other provisions of the Loan Agreement shall remain in full force and effect. Please confirm your agreement to the foregoing on behalf of the Borrower by signing and dating the form of confirmation set forth below and returning one fully countersigned original of this amendment letter to us and retaining one original for your records. This amendment letter shall become effective as of the date of the countersignature, upon receipt by the Bank of: (a) a duly countersigned original of this letter by the authorized representative of the Borrower; and (b) evidence acceptable to the Bank that the Implementation Agreement between the Ministry of Finance and the Center of Budget Evaluation has been signed in accordance with the provisions of this amendment letter. Sincerely, Bekele Debele Negewo Acting Country Director, China CONFIRMED: PEOPLE'S REPUBLIC OF CHINA By: l Authorized Rep sentative Name: W,617 Title: I)e'tltg-'V 6iei" Date: (Alne{8 Mr. Zhang Wencai Page 4 May 22, 2019 FOR INTERNAL USE ONLY Bec: Messrs./Mmes.: M. Raiser, H. Bedoya, B. Debele, Y. Fan, H. Zhu, YF. Hu, X. Peng (EACCF); K. Funk, N. Goltz, Y.N. Jia (EACCQ); N. Belete, P. Eliste, W. Sutton, JW. Liu, TT. Do (GFA02); P. Leonard (OPSGR); A. Kanani, Y. Dong (GGOEA); E. Bereslawski, Z. Liu (GGOPP); JX. Chu, Z. Yu (WFACS); A. Panou, L. Radovic (LEGES); M. Monteiro Vieira, AM. Hao (GSUO2); YR. Feng, F. Ji (GEN2A); JY. Jin, J. Zhao (FAO) China Agriculture-BJ Team; WBDOCS