The World Bank Office, Beijing F FIIL 68-;i' 37 trCC I MA E NTS~ December 22, 2011 Mr. Wu Jinkang Deputy Director General Ministry of Finance Sanlihe, Beijing, 100820 People's Republic of China Dear Mr. Wu, China: Heat Reform and Building Energy Efficiency Project (GEF Trust Fund Grant Number TF054687-CHA) -Amendments to the Grant Agreement We refer to the Global Environment Facility Trust Fund Grant Agreement between the People's Republic of China (the Recipient) and the International Bank for Reconstruction and Development, acting as an Implementing Agency for the Global Environment Facility (the Bank) dated May 24, 2005, as amended (the Grant Agreement) for the above-referenced Project (the Project). We also refer to the letter dated December 20, 2011 from Ms. Ye Jiandi, GEF Operational Focal Point for China of the International Department of the Ministry of Finance, requesting the Bank to amend certain provisions of the Grant Agreement to facilitate the implementation of the Project, including extension of the Closing Date and reallocation of Grant proceeds under the Grant Agreement. We are pleased to inform you that the Bank, after due consideration, has agreed to the above requests. Accordingly, the Grant Agreement is hereby amended as follows: 1. The Closing Date referred to in Section 2.03 of the Grant Agreement is hereby extended to December 31, 2012. 2. The table in paragraph 1 of Schedule I to the Grant Agreement is amended to reflect: (i) the rellocation of Grant proceeds among certain categories, and (ii) the increase of financing percentages for certain categories currently financed at less than 100% to 100%: expenditures for categories (3) Consultant Services and (5) Training for Parts A.2 and C.2 of the project are increased from 91% to 100%. Consequently, the table in paragraph I of Schedule I to the Grant Agreement is now replaced by the table set forth in the Attachment to this letter. 3. Sub-paragraph (d) in Section IV of Schedule 3 to the Grant Agreement is hereby deleted. Except as specifically amended by this amendment letter, all other provisions of the Grant Agreement shall remain in full force and effect. Please confirm your agreement to the foregoing on behalf of the Recpient by signing, dating and returning to us this amendment letter. 16th Floor, China World Office 2, No.1 Jlanguomenwai Avenue, Beijing 100004, China qmuibf*AnK;k* 1 *MI 3" 2 16 X (100004) Tel. EiM: (86-10) 5861-7600; Fax. *A : (86-10) 5861-7800 Mr. Wu Jinkang Page 2 December 22, 2011 Upon receipt by the Bank of this amendment letter countersigned by you, this amendment letter will become effective as of the date of the countersignature. Sincerely yours, David I Acting Country Director, China AGREED: PEOPLE'S REPUBLIC OF CHINA By: Authorized Representatve Name:- V , ,IV)L~t Title: Qe%A Vrextor (z)"woLA Mr. Wu Jinkang Page 3 December 22, 2011 Attachment Amount of the GEF Trust Fund Grant Allocated % of Category (Expressed in United States Expenditures Dollars - US$) to be Financed (1) Sub-grants (a) under Part A.1 of the Project 5,000,000 100% (b) under Part C.1 of the Project 7,700,000 100% (2) Goods under Part B.6 of the Project 45,830.38 100% (a) under Part A.2 of the Project (3) Consultants' Services 900,000 100% (b) under Part B of the Project 2,125,000 100% (c) under Part C.2 of the Project 1,090,000 100% (4) Incremental Operating Costs under Part B.6 of the Project 248,000 100% (5)Training (a) under Part A.2 of the Project 100,000 100% (b) under Part B of the Project 630,000 100% (c) under Part C.2 of the Project 70,000 100% (6) Unallocated 91,169.62 Total 18,000,000 Mr. Wu Jinkang Page 4 December 22, 2011 Cc: Mr. Yang Shaolin Executive Director, China Ms. Ye Jiandi Director, GEF Division Ministry of Finance Beijing, China E-mail: idve@mof.gov.cn Ms. He Zheng IFI Div. III, International Department Ministry of Finance Beijing, China E-mail: hezheng@mof.gov.cn Mr. Han Aixing Deputy Director General Building Energy Efficiency, Science and Technology Division Ministry of Housing and Urban Rural Development Beijing, China E-mail: hanax@,mail.cin.gov.cn Dr. Tong Guichan Director, HRBEE National Project Management Office Building Energy Efficiency, Science and Technology Division Ministry of Housing and Urban Rural Development Beijing, China E-mail: tonggchgmail.cin.-ov.cn Mr. Xin Tan Executive Director National Project Management Office Heat Reform and Building Energy Efficiency Project Ministry of Housing and Urban Rural Development Beijing, China E-mail: xintan@hrbee-cn.com Mr. Wu Jinkang Page 5 December 22, 2011 FOR INTERNAL USE ONLY -- NOT TO BE TRANSMITTED: Cleared and cc: Messrs./Mmes. WL. Zhang (EASCS); M. Wang (LEGES); Z. Yu (CTRDM- Beijing) bcc: Messrs./Mmes. K. Rohland, H. Sun, Y. Fan, L. Luo, RF. Yuan, K. Cao, D. Xie (EACCF); J. Roome, J. Maweni, P. Leonard, H. Chen (EASSD); B. Wang (EAPCA); K. Funk, L. Melgaard, Y. Jia (EACCQ); P. Kriss, WL. Zhang, G. Draugelis, F. Asseline, X. Ren, J. Zeng (EASCS); V. Jagannathan, D. Ostojic, C. Hernandez, Y. Zhang, B. Jablonski (EASIN); A. Nickesen, P. Lakshminarayanan, (EAPCO); J. Moss, K. Awanyo, XW. Guo (EAPPR); S. Msadek, D. I, F. Zhang (EAPFM); JX. Chu (CTRFC); HY. Wang (CTRDM); M. Wang, S. Berhanu, L. Cato (LEGES); EASINCHA, WBDocs