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CONFORMED COPY
LOAN NUMBER 4462 CHA
Loan Agreement
(Health Nine Project)
between
PEOPLE’S REPUBLIC OF CHINA
and
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT
Dated July 29, 1999
LOAN NUMBER 4462 CHA 
LOAN AGREEMENT
AGREEMENT, dated  July 29, 1999, between PEOPLE'S REPUBLIC OF CHINA (the 
Borrower) and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (the Bank).
WHEREAS (A) the Borrower, having satisfied itself as to the feasibility and 
priority of the Project described in Schedule 2 to the Development Credit Agreement 
between the Borrower and the International Development Association (the Association) 
of even date herewith (the Development Credit Agreement), has requested the Bank to 
assist in the financing of the Project;
(B)
the Borrower has also requested the Association to provide additional 
financial assistance toward the financing of the Project and by the Development Credit 
Agreement the Association is agreeing to provide such assistance in an aggregate 
principal amount equivalent to thirty-six million eight hundred thousand Special 
Drawing Rights (SDR 36,800,000) (the Credit);
(C)
the Borrower and the Bank intend, to the extent practicable, that the 
proceeds of the Credit be disbursed on account of expenditures in respect of the 
Project before disbursements of the proceeds of the Loan provided for in this 
Agreement are made; and
WHEREAS the Bank has agreed, on the basis, inter alia, of the foregoing, to 
extend the Loan to the Borrower upon the terms and conditions set forth in this 
Agreement;
NOW THEREFORE the parties hereto hereby agree as follows: 
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ARTICLE I 
General Conditions; Definitions
Section 1.01. The "General Conditions Applicable to Loan and Guarantee 
Agreements for Single Currency Loans" of the Bank, dated May 30, 1995 (as amended 
through December 2, 1997) (the General Conditions) constitute an integral part of this 
Agreement.
Section 1.02. Unless the context otherwise requires, the several terms defined 
in the General Conditions and in the Development Credit Agreement have the respective 
meanings therein set forth and the term "Development Credit Agreement" means the 
agreement of even date herewith between the Borrower and the Association for the 
Project, as such agreement may be amended from time to time, and such term includes 
the "General Conditions Applicable to Development Credit Agreements" of the 
Association, dated January 1, 1985 (as amended through December 2, 1997), as applied 
to such agreement, and all schedules and agreements supplemental to the Development 
Credit Agreement. 
ARTICLE II 
The Loan
Section 2.01. The Bank agrees to lend to the Borrower, on the terms and 
conditions set forth or referred to in the Loan Agreement, an amount equal to ten 
million dollars ($10,000,000).
Section 2.02. The amount of the Loan may be withdrawn from the Loan Account in 
accordance with the provisions of Schedule 1 to the Development Credit Agreement for 
expenditures made (or, if the Bank shall so agree, to be made) in respect of the 
reasonable cost of goods and services required for the Project and to be financed out 
of the proceeds of the Loan.
Section 2.03. The Closing Date shall be June 30, 2006, or such later date as the 
Bank shall establish. The Bank shall promptly notify the Borrower of such later date.
Section 2.04.  The Borrower shall pay to the Bank a fee in an amount equal to 
one percent (1%) of the amount of the Loan.  On or promptly after the Effective Date, 
the Bank shall, on behalf of the Borrower, withdraw from the Loan Account and pay to 
itself the amount of said fee.
Section 2.05. The Borrower shall pay to the Bank a commitment charge at the rate 
of three\1efourths of one percent (3/4 of 1%) per annum on the principal amount of the 
Loan not withdrawn from time to time.
Section 2.06 (a) The Borrower shall pay interest on the principal amount of the 
Loan withdrawn and outstanding from time to time, at a rate for each Interest Period 
equal to LIBOR  Base Rate plus LIBOR Total Spread.
(b)
For the purposes of this Section:
(i)
“Interest Period” means the initial period from and including the 
date of this 
Agreement to, but excluding, the first Interest 
Payment Date occurring 
thereafter, and after the initial 
period, each period from and including an 
Interest Payment 
Date to, but excluding the next following Interest Payment 
Date.
(ii)
“Interest Payment Date” means any date specified in Section 2.07 
of this 
Agreement.
(iii)
“LIBOR Base Rate” means, for each Interest Period, the London 
interbank 
offered rate for six-month deposits in single 
currency for value the first day 
of such Interest Period (or, in 
the case of the initial Interest Period, for 
value the Interest 
Payment Date occurring on or next preceding the first day 
of 
such Interest Period), as reasonably determined by the Bank and expressed 
as a percentage per annum. 
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(iv)
“LIBOR Total Spread” means, for each Interest Period: 
(A) three-fourths of one 
percent (3/4 of 1%); (B) minus (or plus) 
the weighted average margin, for such 
Interest Period, below (or 
above) the London interbank offered rates, or other 
reference 
rates, for six-month deposits, in respect of the Bank’s outstanding 
borrowings or portions thereof allocated by the Bank to fund single currency 
loans or portions thereof made by it that include the Loan; as 
reasonably 
determined by the Bank and expressed as a 
percentage per annum.
(c)
The Bank shall notify the Borrower of LIBOR Base Rate and LIBOR Total 
Spread for each Interest Period, promptly upon the determination thereof.
(d)
Whenever, in light of changes in market practice affecting the 
determination of the interest rates referred to in this Section 2.06, the Bank 
determines that it is in the interest of its borrowers as a whole and of the Bank to 
apply a basis for determining the interest rates applicable to the Loan other than as 
provided in said Section, the Bank may modify the basis for determining the interest 
rates applicable to the Loan upon not less than six (6) months’ notice to the Borrower 
of the new basis. The new basis shall become effective on the expiry of the notice 
period unless the Borrower notifies the Bank during said period of its objection 
thereto, in which case said modification shall not apply to the Loan.
Section 2.07. Interest and other charges shall be payable semiannually on 
January 15 and July 15 in each year.
Section 2.08. The Borrower shall repay the principal amount of the Loan in 
accordance with the amortization schedule set forth in the Schedule to this Agreement. 
ARTICLE III 
Execution of the Project
Section 3.01. (a) Subject to paragraph (b) of this Section, Sections 2.02(b), 
3.01, 3.02, 3.03 and 4.01 of the Development Credit Agreement and Schedules 1, 2, 3, 4 
and 5 (including the annexes to Schedules 4 and 5) thereto are incorporated in the 
Loan Agreement, with the following modifications in said Sections and Schedules 2, 3 
(other than Part A of Section I and Part A of Section II thereof) and 4 (including the 
Annex thereto but excluding Section I of said Annex) unless the context otherwise 
requires:
(i)
the term "Association" shall be read as "Bank";
(ii)
the term "Credit" and "Credit Account" shall be read as "Loan" and 
"Loan Account"; 
and
(iii)
the term "this Agreement" shall be read as "the Development Credit 
Agreement”.
(b)
So long as any part of the Credit provided for under the Development 
Credit Agreement shall remain outstanding and unless the Borrower has been notified 
otherwise by the Bank:
(i)
all actions taken, including approvals given, by the Association 
pursuant to 
any of the Sections of, and Schedules to, the 
Development Credit Agreement 
enumerated in paragraph 
(a) of this Section, as well as pursuant to Section 
2.02(a) of 
the Development Credit Agreement, shall be deemed to be taken or 
given in the name and on behalf of both the Association and the Bank; and
(ii)
all information or documentation furnished by the Borrower to the 
Association 
pursuant to the provisions of any of such Sections of 
the Development Credit 
Agreement or Schedules thereto shall be 
deemed to be furnished to both the 
Association and 
Bank. 
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ARTICLE IV 
Remedies of the Bank
Section 4.01. Pursuant to Section 6.02(p) of the General Conditions, the 
following additional events are specified, namely, the events set out in Section 5.01 
of the Development Credit Agreement.
Section 4.02. Pursuant to Section 7.01(k) of the General Conditions, the 
following additional event is specified, namely, the event set out in Section 5.02 of 
the Development Credit Agreement, provided, however, that the term "Association" 
wherever it appears in such Section shall be read as "Bank". 
ARTICLE V 
Effective Date; Termination
Section 5.01.  The following event is specified as an additional condition to 
the effectiveness of the Loan Agreement within the meaning of Section 12.01(c) of the 
General Conditions, namely that all conditions precedent to the effectiveness of the 
Development Credit Agreement shall have been fulfilled, other than those related to 
the effectiveness of this Agreement.
Section 5.02. The date ninety (90) days after the date of this Agreement is 
hereby specified for the purposes of Section 12.04 of the General Conditions.
Section 5.03. If the Development Credit Agreement terminates prior to the 
termination of this Agreement, the provisions of the Development Credit Agreement 
referred to in this Agreement shall continue in full force and effect between the 
Borrower and the Bank. 
ARTICLE VI 
Representative of the Borrower; Addresses
Section 6.01. The Minister of Finance of the Borrower is designated as 
representative of the Borrower for the purposes of Section 11.03 of the General 
Conditions.
Section 6.02. The following addresses are specified for the purposes of Section 
11.01 of the General Conditions:
For the Borrower:
Ministry of Finance
Sanlihe
Beijing
People's Republic of China 
Cable address:
Telex:
FINANMIN
22486 MFPRC CN
Beijing
For the Bank:
International Bank for
  Reconstruction and Development
1818 H Street, N.W.
Washington, D.C.  20433
United States of America
Cable address:
Telex:
INTBAFRAD
248423 (MCI) or
Washington, D.C. 
 64145 (MCI)
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IN WITNESS WHEREOF, the parties hereto, acting through their  duly authorized 
representatives, have caused this Agreement to be  signed in their respective names in 
the District of Columbia, United States of America, as of the day and year first above  
written.
PEOPLE’S REPUBLIC OF CHINA 
By /s/ Liu Xiaoming
Authorized Representative
INTERNATIONAL BANK FOR 
   RECONSTRUCTION AND DEVELOPMENT
By /s/ Jean-Michel Severino
Authorized Representative
SCHEDULE 
Amortization Schedule
Payment of Principal 
Date Payment Due
(expressed in dollars)*
January 15, 2005
220,000 
July 15, 2005
225,000 
January 15, 2006
230,000 
July 15, 2006
235,000 
January 15, 2007
245,000 
July 15, 2007
250,000 
January 15, 2008
255,000 
July 15, 2008
265,000 
January 15, 2009
270,000 
July 15, 2009
280,000 
January 15, 2010
285,000 
July 15, 2010
295,000 
January 15, 2011
305,000 
July 15, 2011
310,000 
January 15, 2012
320,000 
July 15, 2012
330,000 
January 15, 2013
340,000 
July 15, 2013
345,000 
January 15, 2014
355,000 
July 15, 2014
365,000 
January 15, 2015
375,000 
July 15, 2015
385,000 
January 15, 2016
400,000 
July 15, 2016
410,000 
January 15, 2017
420,000 
July 15, 2017
430,000 
January 15, 2018
445,000 
July 15, 2018
455,000 
January 15, 2019
470,000 
July 15, 2019
485,000 
_______________________________ 
*
The figures in this column represent the amount in dollars to be repaid, except 
as provided 
in Section 4.04 (d) of the General Conditions.
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