Ref Number :

To : Director General Overseas Business Development

of Korea Water Resources Corporation (K-water)
Republic of Korea

Subject : Recommendation Letter

Dear Sir,

According to your letter dated on March 26, 2013 with the subject on : Letter of
Intent for the Water Supply Development in Gresik Regency, and after reviewed
the Project Concept and your company profile, we, the Regional Government of
Gresik Regency accepted your LoI and issue the Recommendation Letter as
follows :

1. We give the exclusive right to K-water Consortium to fulfill a Pre-

Feasibility Study, Feasibility Study, and Environmental study for the
Project with a capacity of 2,000 l/s
2. The Regional Government of Gresik Regency will support the activities and
provide a technical and non-technical data required.
3. K-water Consortium shall pay the all expenses of the activities.
4. The term of validity for this Recommendation letter is twelve (12) months.
5. The all activities shall be meet with the Indonesian PPP regulation.

Your kind cooperation to this matter will be most highly appreciated.

Sincerely Yours

The Regent of Gresik Regency