AGREEMENT dated 20 Jumada A1 Thani 1397 A. H. corresponding to 7
June 1977 A. D. between.
(1) THE REPUBLIC OF CHINA (hereinafter called the Borrower) rep-
resented by His Excellency Yu-Chi Hsueh, Ambassador of the
Republic of China to the Kingdom of Saudi Arabia.
and
(2) THE SAUDI FUND FOR DEVELOPMENT, Riyadh, Kingdom of Saudi Ar
abia (hereinafter called the Fund), represented by Dr. Mahs-
oun B. Jalal, Vice Chairman of the Board of Directors and M-
anaging Director,
PREAMBLE
WHEREAS by the Loan Agreement No. 2/30 (Taiwan Trunkline Electr-
ification Project) dated Moharram 4, 1396 A. H. corresponding to
December 25,1976 A. D. between the Fund and the Borrower (herei-
nafter called the Loan Agreement), the Fund has agreed to lend
to the Borrower a loan in an amount of One hundred five million
nine hundred thousand (105,900,000) Saudi Riyals to assist in t-
he financing of Taiwan Trunk-line Electrification Project descr-
ibed in Schedule (2) to the Loan Agreement on the terms and con-
ditions in the Loan Agreement set forth or referred to:
WHEREAS Section 2.04 of the Loan Agreement provides that:
"The items to be financed out of the proceeds of the Loan shall
be determined by a subsequent supplemental agreement between the
Fund and the Borrower. The parties accept all the provisions of
said subsequent supplemental agreement as if they were fully set
forth herein."
and:
WHEREAS the Fund and the Borrower, in view of the foregoing, ha-
ve agreed to enter into this Agreement with is the Supplemental
Agreement referred to in Section 2. 04 of the Loan Agreement;
NOW THEREFORE the parties hereto hereby agree as follows:
ARTICLE Ⅰ
Amend ment to the Loan Agreement; Allocation of the Proceeds of
the Loan
Section 1. 01. Section 2. 02 of the Loan Agreement is hereby am-
ended to read as follows:
"Section 2. 02. The amount of the Loan may be withdrawn from the
Loan Account in accordance with the provisions of Schedule (4)
to this Agreement, as such Schedule may be amended from time to
time by agreement between the Fund and the Borrower, for expend-
itures made (or, if the Fund shall so agree, to be made) in res-
pect of the reasonable cost of goods and services required for
the Project and to be financed out of the proceeds of the Loan."
Section 1. 02. The following schedule is hereby added to the Lo-
an Agreement as Schedule (4) thereto:
SCHEDULE (4)
Withdrawal of the Proceeds of the loan
1. The table below sets forth the Categories of items to be fin-
anced out of the proceeds of the Loan, the allocation of the
amounts of the Loan to each Category and the percentage of e-
xpenditures for items so to be financed in each Category:
───────────────────────────────
Amount of the Loan % of
Allocated Expenditures
Category (Expressed in Saudi Riyals) to be Financed

───────────────────────────────
Ⅰ Stone ballasts, Wooden Sleepers, 5,830,000 100%
and Spring Steel Spikes under P-
art (B) of the Project.
Ⅱ Concrete Poles and legs, Wires 29,230,000 100%
and cables, Concrete Asbestos T-
roughs, Iron poles and accessor-
ies, Fasteners, and Cable Joints
and Instruments under Part (C)
of the Project.
Ⅲ Installation of electrification 60,270,000 100%
equipment under part (C) of the
Project.
Ⅳ Contingencies 10,570,000
───────────────────────────────
TOTAL: 105,900,000
───────────────────────────────
2 Notwithstanding the provisions of paragraph 1 above no withdr-
awal shall be made in respect of payments made for:
(a) expenditures prior to the date of this Agreement;
(b) taxes levied by, or in the territory of the Borrower on g-
oods or services, or on the importation, manufacture, pro-
curement or supply thereof.
ARTICLE Ⅱ
Effectiveness
Section 2. 01. This Agreement shall become effective upon signa-
ture by both parties.
IN WITNESS WHEREOF, the parties hereto, acting through their re-
presentatives thereunto duly authorized, have caused this Agree-
ment to be signed in their respective names, as of the day and
year first above written, in two counterparts in the Arabic lan-
guage, each of which shall be an original.
REPUBLIC OF CHINA
(Signed)
YU-CHI HSUEH
Authorized Representative
SAUDI FUND FOR DEVELOPMENT
(Signed)
MAHSOUN B. JALAL
Vice Chairman and
Managing Director