STATUTORY COMMITTEE REPORT
TO:    The President, International Bank for Reconstruction and Development
Report of the Committee under Section 4(iii) of Article III of the Articles of Agreement
on the proposed Loan (Yunnan Honghe Prefecture Diannan Center Urban Transport
Project) to the People's Republic of China.
The undersigned Committee constituted under Section 7 of Article V of the Articles of
Agreement of International Bank for Reconstruction and Development (the Bank) hereby submits
its report pursuant to Section 4(iii) of Article III of said Articles in respect of the proposal that the
Bank grant to the People's Republic of China, a loan in an amount of one hundred and fifty
million United States Dollars (US$ 150,000,000). The purpose of said loan is to improve the
safety, accessibility and efficiency of trips taken by residents in the core urban areas of Mengzi
City and Jianshui County.
1.    The Committee has carefully studied the merits of the proposal to grant such a loan, and
of the purpose to which the proceeds of the loan are to be applied.
2.     The Committee is of the opinion that the project toward the financing of which the
proceeds of such loan are to be applied comes within the purposes of the Bank as set forth in
Article I of said Articles of Agreement, and that said project is designed to promote the
development of the productive facilities and resources of the People's Republic of China and is in
the interest of the People's Republic of China and of the members of the Bank as a whole.


*     -                                         -2-
(People's Republic of China)                          (Yunnan Honghe Prefecture Diannan
Center Urban Transport Project)
3.     Accordingly, the Committee finds that said project merits financial assistance from the
Bank, and hereby recommends said project for such assistance.
COMMITTEE
Senior Vice'Pres ident and
Group General Counsel
Expert Selected by Governor for
the People's Republic of China
Regional      esident
East Asia a  acific Region
Dated at Washington, D.C.
APRIL 3O 1 200/L