Argentina - Flood Rehabilitation Project

Z1/ -1 -,t 0< / - #s Doc=unt of The World Bank FOR OmCLAL USE ONLY :r~~~~A * . .. RqpotN.. P-5852-AR MEMORANDUM AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN IN AN AMOUNT EQUIVALENT TO US$170.0 MILLION TO THE ARGENTINE REPUBLIC FOR A FLOOD REHABILITATION PROJECT SEPTEMBER 4, 1992 This document has a restricted distributon and may be used by recipiets only in the performance of their offcial due Its coatents may not otherwise be disclosed without World Bank authorization.  CURRENCY BOUIVALENTS Currency = Peso (P) P1.00 = US$1.00 [exchange rate as of July 1, 1992 (fixed in March 1991)] Fiscal Year January 1 - December 31 Weichts and measures Metric System Glossary of Abbreviations and Acronyms CEU Project Central Execution Unit CEO Chief Executive Officer of SUCCE CFI Federal Investment Council (Consejo Federal de Inversiones) EBY Binational Entity Yacyreta (Entidad Binacional de Yacyreta) (Argentine-Paraguayan Entity) INCYTH National Institute of Hydrological Sciences and Technology (Instituto Nacional de Ciencia y Tecnica Hidrica) PCs Personal Computers PEU Provincial Executing Unit SOES Certified Statements of Expenditures SUCCE Emergency Central Coordination Subunit (Subunidad Central de Coordinacion para la Emergencia) SUPCE Emergency Provincial Coordination Subunit (Subunidad Provincial de Coordinacion para la Emergencia)  FOR OMCIAL USE ONLY ARGENTTN FLOOD REHABILITATION PROJECT Ioan and Proiect Summary Borrower: The Argentine Republic. Beneficiaries Ministry of the Interior, and the Provinces of Buenos Aires, Chaco, Corrientes, Entre Rios, Formosa, Misiones and Santa Fe. Amount: US$170.0 million. Terms: Seventeen years, including a four-year grace period, at the Bank's standard variable interest rate. Relendincr Terms: Approximately 2 percent of the Loan would assist the Ministry of Interior to direct flood rehabilitation operations, and carry out studies on flood forecasting and measures to cope with future flood emergencies. The remaining proceeds would be onlent to seven provinces for carrying out the rehabilitation works under the same terms and conditior.s as the Bank loan. Obiectives: The objective of this program is to remedy the severe damage done by the heavy flooding in seven provinces earlier this year. Financing Plan: Proiect Cost Sub- Duties& Total Percent of Cost Source Local Fran total taxes Cost Project Total National Govt. 40.0 0.0 40.0 20.9 60.9 15% 19% Provincial Govts. 40.0 0.0 40.0 27.7 67.7 15% 21* IBRD (Loan 3280-AR Amendment) 10.0 10.0 20.0 0.0 20.0 7% 6* IBRD Flood Rehabilitation Loan 97.3 72.7 170.0 0.0 170.0 63* 53% Total 187.3 82.7 270.0 48.6 318.6 100* 100* Economic Rate of Return Not Applicable Staff Appraisal Relort - Not Applicable Mans Nos. IBRD 24059 and 24060 Note: Totals may not add due to rounding. Total physical contingencies are about 16* of base cost; Price contingencies (foreign and local) are about 8* of base cost plus physical contingencies. This docutnent has a resticted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  MIMORANDW( AND RECOMMBNDATION OF THE PRESIDENT OF THE INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED LOAN TO THE REPUBLIC OF ARGENTINA FOR A FLOOD REEABILITATION PROJECT 1. I submit for your approval the following memorandum and recommendation on a proposed loan to the Republic of Argentina for US$170.0 million equivalent. The proposed loan would help finance the critical needs of the Government's rehabilitatiin program designed to remedy the damage caused by the severe flooding in seven provinces earlier this year (see paragraph 2). It would have a term of 17 years, including 4 years of grace, at the standard variable interest rate. 2. Backa n. By the end of 1991, unusually heavy rain began to fall in the catchment areas ef the Parana, Paraguay, and Uruguay Rivers, which ultimately peaked in April/Way 1992 at almost four times the yearly average. This caused serious infrastructure damage and forced the evacuation of about 120,000 people from seven Argentine provinces--Buenos Aires, Chaco, Corrientes, Entre Rios, Formosa, Misiones, and Santa Fe. Although it is too early to attempt a precise estimate, indications are that the damage may be on the same order of magnitude as that caused by the 1983 flood, which cost about US$1 billion to repair. Apart from the capital stock damage, Argentina will also face substantial losses in productive output (mainly grains, livestock, and cotton). Preliminary assessments already indicate agricultural losses of about US$185 million. Renewed heavy rainfall following the initial downpours could lead to even higher losses. 3. This emergency comes at a critical moment when Argentina is seeking to consolidate a much needed economic recovery following a long, difficult period of economic adjustment. The positive growth rates achieved in the last two years were accompanied by significant reductions in the overall public sector deficit plus substantial balance-of-payments current account improvements. The economy thus was on target to achieve further real growth in 1992. Simultaneously, Argentina had just entered into an EFF arrangement with the IMF and reached agreement with its commercial bank creditors on a "Brady operation." The flood damage, however, will impair this promising progress. 4. The Government's efforts to maintain the present economic recovery and improve its fiscal balance depend crucially on improvements in provincial finances, a major source of deficits in the past. The provinces affected by the floods together account for nearly half of national GDP. The damage will slow economic growth in these provinces and, through iinkage effects, dampen overall growth. In addition, slower growth in these provinces will increase their fiscal deficits through lower tax collections and the increased current expenditures necessitated for this emergency. The proposed project, by rapidly reconstructing destroyed infrastructure and productive capital, would restore the conditions of long-term growth in the provinces, alleviate the burden on other sources of finance, and reinforce the integrity of the macroeconomic program. At the same time, the proposed loan would help the Government to finance provincial growth without recourse to the inflationary tax. Supplementing Treasury resources for disbursement to the  -2- provinces would also help advance discussions on reforming the revenue-sharing formula. S. Strate v. To cope with the disaster, the Central Government established a national program. It first defined and launched relief and rescue operations concentrated on evacuation of the affected population and providina them with shelter, blankets and food. River defenses were fortified in all cities and towns near the rivers; dikes and other embankments were fortified. Second, the authorities requested the Bank to begin preparing a program to foster the speedy recovery of the damaged infrastructare. In this connection, under Argentina's resurgent federalism, the provinces are now mainly responsible for physical infrastructure and the social sectors. Accordingly, the Bank worked with provincial officials who undertook damage assessments while they carried out relief operations in their areas. Third, the Government identified the requirements for preventing the recurrence of similar damage in the future and at the same time asked the Bank to help meet them. Based on this strategy, the Bank immediately moved to prepare the proposed flood rehabilitation project. It also initiated the identification of a possible subsequent operation that would aim at improving the afflicted provinces' preparedness to deal with severe flooding in an optimal manner. Both were speedily accomplished. 6. Project Objectives. The objectives of the proposed project are to help finance flood reconstruction needs in the seven afflicted provinces and provide a sound institutional framework for coordination and implementation of the overall Government rehabilitation program. The specific project activities, designed to restore normal economic activity in the areas affected, include assisting in the rehabilitation of essential transport infrastructure, social infrastructure, and flood control works. It should be noted that these are not designed to provide optimal protection against possible recurrent severe flooding. For the latter possibility, technical assistance would be provided under thlis project to prepare the way for longer- term, flood forecasting and prevention. 7. Proiect DescriTtion. Project design is based on the Bank's previous experience with similar reconstruction efforts elsewhere and Bank norms for such circumstances. The proposed project will finance rehabilitation investments in key infrastructure and equipment for: (a) transport and energy, (24% of total base cost); (b) emergency flood control works (29.3% of total base cost); (c) housing (lot of total base cost); (d) education and health facilities (10.5t of total base cost); (e) water supply and drainage (7* of total base cost); (f) additional requirements to be determined after final damage assessment (16* of total base costs); (g) technical assistance to strengthen the institutions involved in project implementation (2.5* of total base cost); (h) flood forecasting and prevention of future disasters, including technical assistance (0.6% of total base cost); (a) Transport and Enerng: (i) rehabilitation works for roads, urban streets, railroads, ports, and electricity distribution infrastructure damaged by the floods or by the heavy traffic of construction equipment and trucks used in the struggle to reinforce embankments against the surging flood  - 3 - waters; (ii) replacement of destroyed electrical equipment; and (iii) rehabilitation of roadside defenses. (b) Emergencv Flood Control Works: (i) strengthening embankiments that were either seriously eroded or nearly washed out; tii) the replacement of dike sections in danger of collapsing; (iii) repair and replacement of temporary structures used to divert river flows from residential areas; and (iv) repair and replacement of pumping equipment to evacuate flood and rainwater from urban areas below flood water levels. (c) Hougin : reconstruction of homes destroyed or severely damaged through a program of grants and self-help work for about 5,700 low- income families who will rebuild their own units. The housing units, several sections of which are prefabricated panels, would be 30 e@, with two bedrooms and a multiuse room. They would be made of wood and built oQa stilts to reduce future flood damage. The units provide more space and access than the Government's present housing program at half the cost of its "least cost" model. Vouchers would be furnished to cover the cost of obtaining building materials (about US$3,700, or 85 percent of unit costs). The eligibility criteria agreed are designed to ensu-e that beneficiaries are among the poorest families. Special regulations agreed with the Government and included in an annex to the Operational Manual (see paragraph 9 below and paras. 29 to 34 in the Technical Annex) cover the eligibility criteria, the houses' design, monitoring and supervision requirements, and other measures to assure transparency and accountability. (d) Education and Health Facilities: rehabilitation of education and health facilities to provide for the construction of new buildings (also on stilts) to prevent damage by future floods. This would provide a model for the local population and others in Argentina on how to address their long term housing needs and minimize damage in the flood-prone areas where they live. (e) Water and Sewerace Servioes: reconstruction or rehabilitation of water and sewerage structures, including water intakes; water pumping stations; a water treatment plant; a water distribution system for two cities; water wells; sewage pumping stations; sewage interceptors; sewage collectors for eight cities; and a sewage oxidation pond. (f) Additional Reauirements: During appraisal, the full brunt of flood damage could not be ascertained, especially in the Province of Buenos Aires, where the flood peak occurred only in early July 1992. Moreover, there were indications that further flood surges could occur. Therefore, the subprojects identified represent a partial inventory of the full extent of damages. It was estimated necessary to set aside a sum for additional requirements. An amount equivalent to US$22.7 million, or 16 percent of the proposed project's base costs (close to the average amount of damages identified in each province, excluding housing), are reserved for as yet undesignated project activity. Proposals for possible subprojects would be identified and evaluated by the SUPCES before January 31, 1993 and sent to the Bank (see para. 9 below) for review and approval. Each proposed subproject  -4. would be accompanied by supporting documentation as required by the Operational Manual. (g) Technical Assistance: Technical Assistance would be provided to strengthen institutions involved in project implementation (see paragraph 9 below). (h) Flood Forecastinu and Disaster Prevention : Heavy flooding in the Parana River area of influence has consistently caused severe damage. The authorities have thus recognized the importance of ensuring adequate disaster prevention and mitigation measures and flood forecasting systems for effectively responding to future disasters. They also see this disaster as an appropriate opportunity to assess the adequacy of Argentina's institutional capability for effectively mitigating future emergencies. US$ 250,000 of the loan would consequently be provided for consultants to examine ths quality of present mechanisms for monitoring, flood forecasting and "early warning" preparedness. Simultaneously, the National Hydrological Institute (INCYTH) would receive US$250,000 for purchasing updated equipment to improve its flood forecasting capability. In addition, the proposed loan would finance studies on the flooding records/patterns of the Parana River basin and the adequacy of emergency-related legislation in Argentina. The proposed Loan Agreement provides for consultation with the Bank within 18 months on the results of these studies. Finally, funds would be included for the preparation within six months of terms of reference for future studies regarding: (i) regional issues concerning flooding in the Parana River basin, that also involves Paraguay, Brazil and Bolivia; (ii) mechanisms to prevent flood losses that discourage development (e.g., tax assessment practices), and (iii) insurance options as a way of spreading flood losses over a period of time and across larger groups than those directly impacted by any given flood. 8. Proiect Desicn. The project design incorporates the lessons of Bank-assisted reconstruction activities in other countries. Notable aspects include: (a) well defined repair and reconstruction works; (b) strong Government and beneficiary commitments; (c) a well-structured institutional framework and clearly defined responsibilities for coordination and implementation at project commencement; and (d) simplified procurement arrangements (see paras 53 to 59 of the Technical Annex). Project activities are restricted to vital repair and reconstruction operations that can be completed in 24 months. The authorities have assigned national priority to mitigating the flood damage. Also they intend to mobilize strong commitment from the intended beneficiaries, e.g., by having the affected residents do the proposed housing reconstruction themselves. Government-Bank collaboration, reflected in the speedy preparation of the proposed project, suggests a favorable environment for effectively overcoming the flood disaster damage. S. Project Imnlementation. The organizational arrangements for the project are designed to: (a) obtain speedy implementation; (b) maximize the use of existing provincial capability; (c) obtain effective accountability and precautions against misappropriation of funds; and (d) provide close oversight of project works. The project would be implemented withirn the Government's organizational fraiiework for the Provincial Development Project (Loan 3820-AR)  as amended. As in this loan, all operations will be managed by the Ministry of Interior's Secretariat of Provincial Reform. This project's central and provincial units would carry out the proposed project. Organizationally, these units are well placed to take on the new tasks and implement them quickly; however, they needed some reinforcement. In this regard, through amendments to the Loan 3280-AR, a small subsidiary (SUCCE) of the Provincial Development Project's central execution unit (CEU) has been created. Similarly, at the provincial level, new subunits (SUPCES) have been established within the provincial execution unirs (PEU). These are intended to facilitate this project's implementation by providing sufficient autonomy of action, as well as full transparency and accountability. The PEUs, through the SUPCEs will be responsible for all procurement, contracting, and submission of disbursement applications. SUCCE staff will include consultants specialized in highways, flood control, housing, and education and health facilities, as well as related equipment. Structurally, the SUPCEs are similar to the SUCCE. The SUCCE has a procurement expert who provided advice and training to the SUPCES. An Operational Manual, agreed with the Bank, will provide guidance and establish standards for all aspects of project implementation. In addition, because of the exceptional features of this assistance, the Government has hired a supervisory engineer, who will maintain ongoing surveillance of project activities and will report directly to the Secretariat of Provincial Reform while keeping the Bank fully informed. 10. Procurement. Procurement procedures for eligible emergency subprojects have been simplified in line with Bank guidelines to facilitate speedy project implementation in such operations. Because of the small size of contracts and the scattered distribution of repair and reconstruction works in seven provinces, contracts for civil works are to be procured under Local Competitive Bidding (LCB) procedures. Goods estimated to cost US$250,000 equivalent or more per contract, totalling about US$2.0 million, will be procured through Limited International Bidding. Civil works estimated to cost US$1.0 million equivalent or more but not to exceed US$5.0 million per contract, totalling about US$80.0 million, may be procured under contracts awarded on the basis of competitive bidding advertised locally in accordance with procedures satisfactory to the Bank. Goods estimated to cost less than the equivalent of US$250,000 and civil works estimated to cost less than the equivalent of US$1.0 million will be contractad on the basis of a comparison of price quotations from three suppliers or contractors, eligible under Bank guidelines. These contracts would amount, in the aggregate, to US$21.8 million for goods and US$80.0 million for works. Under special circumstances, which should be justified to the Bank, civil works contracts estimated to cost less than the equivalent of US$1 million, up to an aggregate not exceeding US$20.0 million, may be procured through direct contracting. Emergency civil works may be carried out by provinces through force account, not to exceed an amount equivalent to 10% of the total cost of the eligible emergency subprojects carried out by such province. Consultant contracts estimated to cost less than the equivalent of US$50,000 shall only require the prior review by the Bank of their respective terms of reference; those relating to technical assistance by the central execution unit (CEU) shall be reviewed ex ante by the Bank.  -6- 11. Rationale for Bank Involvement. The Bank's underlying purpose in Argentina at this time of national emergency is to keep the economy on track during the rapid implementation of the rehabilitation effort. A second purpose, in view of limited governmental administrative capacities in this regard, is to help implement the proposed emergency-type operations in a systematic and cost-effective fashion, drawing on extensive international experience. In add.'tion, the Bank's participation is intended to assist the Goverrnment in mobilizing collateral financing from other external sources for possible additional rehabilitation needs that have not yet been identified, or longer term flood control purposes. 12. Environmental Imnact. Since all investments are in reconstruction of existir.g infrastructure, no negative environmental effects are expected. There are storeral positive enviroz=ental consequences of the proposed project, including restoration of damaged health facilities to deal with the increase in health problems related to the floods, including an increased incidence of cholera. Prompt repair of water and sewerage systems will help restore adequate water disposal facilities, and overcome water contamination. New and some rehabilitated piping will help reactivate safe sewage disposal. These systems and the flood control works will greatly improve the urban environment now and in the future. Detailed design of the water and sewer systems will be subject to local environmental assessment, according to terms of reference agreed with the Bank. 13. Estimated Co,ts and Financing Plan. Total project cost is estimated at US$270.0 million, net of duties and taxes, with a foreign exchange component of US$82.7 million. The proposed Bank loan of US$170.0 million would finance about 63% of the estimated project costs. The reallocation of US$20 million from loan 3280-AR (Provincial Development Project) which has been already approved by the Executive Directors (Memorandum R 92-149, dated August 3, 1992) is enabling the Government to begin the most urgent flood damage repairs and to strengthen the institutional framework. This would meet 7% of project costs. It was agreed with the Government that it would be inadvisable to reallocate funds from other loans so as to maintain the momentum of ongoing operations and the related policy reforms. The Federal Gomernment and the seven provinces would finance the remaining 30t (US$80.0 million) in addition to taxes and duties estimated at US$48.6 million. US$34.0 million of the Bank loan (20V) would be used for retroactive financing of works begun after June 16, 1992 in accordance with procedures similar to those of the Bank procurement guidelines. A summary of project cost and financing is presented in Schedule A. Pro-urement amounts, the proportion of expenditures to be financed, and the disbursement schedule are given in Schedule B. A timetable of key project processing events is included in Schedule C. Statements of Bank loans and IFC investments are presented in Schedule D. 14. Except for approximately two percent of the loan that would finance institutional development and studies in the national Ministry of Interior, all proceeds of the Bank loan would be onlent to participating provinces, with each province's portion of statutory revenue sharing of Federal tax proceeds serving as a guarantee for repayment. For this onlending,  the Ministry of Economy would enter into a Financial Agency Agreement with an appropriate financial institution (Financial Agent), satisfactory to the Bank, as a condition of effectiveness (para. 62 of the Technical Annex). The execution of subsidiary loan agreements between the Government and at least three provinces and the issuance of the final version of the Operational Manual (as agreed with the Bank) governing all aspects of project implementation and providing the required complementary authority for contracting and procurement arrangements would also be conditions of effectiveness. The terms and conditions of the subsidiary loan agreements would be the same as the Bank loan, including the foreign exchange risk. The Subsidiary Loan Agreements would also stipulate that each participating province would pay part of the loan commitment fee in direct proportion to its share of estimated expenditures for repair works and technical assistance. After project completion, there would be a reevaluation of the amounts paid by the provinces and a redistribution based on their actual receipts of Bank funds. 15. Actions AQreed. To expedite project initiation, the Federa Government and the participating provinces have already completed several important actions. It should be noted that these arrangements have been substantially advanced by the Government. The Bank and the Goaernment have agreed on the Provincial Development Project amendmfnts referred to in paras 9 and 13 above. In particular, resolutions have been issued establishing SUCCE and the SUPCNs and providing them with staff and equipment. Other resolutions have put into effect a first version of the Operational Manual. The consultants needed to advise SUCCE have been hired, and auditing arrangements confirmed. It was agreed that the following would be conditions of effectiveness: (a) the signing of Subsidiary Loan Agreements with at least three provinces; (b) the signing of a Financial Agency Agreement with an appropriate financial institution; and (c) the adoption of a final version of the Operational Manual. It was also agreed: (a) that the Bank would receive every four months a report on the progress of the project; (b) In October of 1993 there would be a mid-term review on the progress of project implementation and the attainment of stated objectives; (c) proposals for possible additional subprojects would be identified and evaluated before January 31, 1993 and sent to the Bank for review and approval, accompanied by supporting documentation as required by the Operational Manual; (d) there would be consultations within 18 months with the Bank on the results of the studies on the flooding records/patterns of the Parana River Basin and the adequacy of emergency-related legislation in Argentina, and terms of reference for other required studies would be prepared within six months. 16. Benefits and Risks. The main economic benefits of the proposed project would be (a) the restoration of the damaged infrastructure essential for the welfare of the population; and (b) the resurgence of economic production in the affected provinces. The early repair and restoration of flood defenses are essential to prevent future damage and loss of production from flooding until they are fully rehabilitated. This is considered sufficiently irportant to justify the short-term nature of the proposed investments. Firthermiore, the proposed project would improve the Government's capability to react to future possible flood disasters by providing valuable  8 a- experience to and strengthening the institutions involved, by improving the early warning system and by developing studies on non-structural mechanisms to deal with floods. There are four main risks: (a) time and cost overruns could result from complicated natural conditions in the post-disaster period impacting project works; (b) inadequate management and control of the rehabilitation program because of administrative weaknesses in seven provinces with little or no experience in projects of this nature and (c) given that the project only includes repairs/restoration, there is no assurance of complete protection against recurrent severe flooding; and (d) possible abuses of the voucher system in the housing component. To reduce these risks, the project will consist of short-term works to try to avert unduly complicated and lengthy undertakings. The reliance on the Ministry of Interior's national network and the strengthened Provincial Development Project framework should help reduce gearing up to the task, facilitating effective management. A full-time, independent supervising engineer and the availability of a procurement expert should also help strengthen project implementation. A possible subsequent operation could aim at improving the afflicted provinces' preparedness to deal with severe flooding in an optimal manner (see paragraph 5 above). With regard to the housing component and its voucher system, the project design includes agreed regulations based on the Bank's experience with similar projects, including targetting of beneficiaries, monitoring, and supervision measures, to ensure transparency and accountability. Finally, an implementation schedule would facilitate supervision and possib:.e adjustments after a mid-term review. 17. Recommendation. I am satisfied that the proposed loan will comply with the Articles of Agreement of the Bank and recommend that the Executive Directors approve it. Lewis T. Preston President Attachments Washington, D.C. September 4, 1992  -9 FLOOD REHABILITATION PROJEf Estimated Co0ts and inaniina Plan Local Foreign Total Foreign as ---- (US$Nillion) ---- % of total Estimatad Cost Transport and Energy 30.8 21.2 51.9 41% iousing 21.1 0.0 21.1 0% Emergency Flood Control works 38.2 25.5 63.7 40% Education Facilities 17.5 0.0 17.5 0* Health Facilities 5.1 0.0 5.1 0% Water Supply and Drainage 7.5 7.6 15.1 50t Institution Development 5.4 0.8 6.2 13% Expected Non-appraised Projects 22.7 12.7 35.4 36* Base Cost 148.2 67.7 215.9 31% Physical Contingencies 23.2 11.6 34.8 Price Contingencies 15.9 3.5 19.3 TOTAL PROJECT COST 187.3 82.7 270.0 Financing Plan: Proiect Cost Sub- Duties& Total Percent ofCost Source Local rn total taxes Cost Proiect Total National Government 40.0 0.0 40.0 20.9 60.9 15* 19% Provincial Govermts 40.0 0.0 40.0 27.7 67.7 15* 21% IBRD (Loan 3280-AR Amendment) 10.0 10.r 20.0 0.0 20.0 7* 6% IBRD Flood Rehabilitation I-an 97.3 72.7 170.0 0.0 170.0 63* 53% Total 187.3 82.7 270.0 48.6 318.6 iQQk 100% Note: Totals may not add due to rounding. Total physical contingencies are about 16* of base cost; Price contingencies (foreign and local) are about 8* of base cost plus physical contingencies.  - 10 - Schedule B Page 1 of 2 ARGENTINA FLOOD REHABILITATION PROJECT Procurement Method l/ (US$ million) Local Category LCB Shopping Other 2/ Total Civil Works 80.0 80.0 49.7 209.7 (49.2) (49.2) (30.5) (128.9) Equipment 21.8 2.0 23.8 12.3) (1.1) (13.4) Tecnmical Assistance -- -- 11.3 11.3 (10.8) (10.8) Housing Grants -- -- 25.2 25.2 (16.9) (16.9) TOTAL 80.0 101.8 88.2 270.0 (of which Bank) (49.2) (61.5) (59.3) (170.0)3/ Notes: / Figures in parentheses are the respective amounts financed by the Bank loan. /2 "Other" includes: (a) limited direct contracting (for about US$20.0 million and execution by force account (for about US$29.7 million) for civil works; (b) Limited International Bidding for goods; (c) hiring of consultants; and (d) housing grants. /3 In addition, US$20.0 million was reallocated from Loan 3280-AR Amendment, as follows: Civil Works $16.0 million Equipment $3.0 million Tech. Assistance $0.5 million Housing grants $0.5 million  Schedule B Page 2 of 2 ARGENTINA FLOOD REHABILITATION PROJECT Disbursement Amount of Lorn Loan Category Allocated Percent of Expenditure (US$ million) to be financed Civil Works 108.3 85* of expenditures made on or before December 31, 1992, up to an aggregate amount not to exceed the equivalent of US$ $20.0 million and 68% thereafter Equipment 11.3 100* of foreign expenditures; and 85% of local expenditures, made on or before December 31, 1992, up to an aggregate amount not to exceed the equivalent of US$4.7 million and 51% thereafter Technical Assistance 10.8 100V Housing Grants 16.9 85% of the amounts disbursed under the respective Housing Grant on or before December 31, 1992, up to an aggregate amount not to exceed the equivalent of US$10.0 million and 56% thereafter Unallocated 22.7 TOTAL 170.0 Estimated Bank Disbursements (US$ million) Bank Year FY3 FY94 FY95 Annual 68.0 85.0 17.0 Cumulative 68.0 153.0 170.0  - 12 - Schedule C ARGENTINA FLOOD REHABILITATION PROJECT Timetable of Key Project Processing Events (a) Time taken to prepare: two months (b) Prepared by: Government with Bank assistance (c) First mission: June 15 to July 4, 1992 (d) Appraisal mission departure: June 15, 1992 (e) Negotiations: August 24 to August 26 1992 (f) Planned date of effectiveness: October 30, 1992 (g) List of relevant PCRs and PPARs: None  - 13 - ARGENTINA Sdwdu Statement of Bank Loans Page 1 of 2 (as of June 30. 1992) Loan or Fiscal Borrower Purpose Amount less Amount (less Undisbursed Undisbursed Credit Year cancelWaons) pending (6/30192) (less pending Number cancelaions) cancellations) (US$million) Fully disbursed loans (30) 3.167.7 0.0 2592 1988 YPF Gas Utilization & Tech. Assistance 180.0 42.1 2641 1986 Argentina Water Supply 60.0 36.7 2751 1987 Argentina Power Engineeri. 14.0 0.2 2793 1987 Argentina Small & Med Scale Cr 85.5 (63.9) 21.6- (0.0) 2805 1987 Argentina sahia Blanca 50.0** (7.2) 42.8** (0.0) 2854 1987 Argentinu Power Distribution 276.0 177.0 292b 1988 Argentina Municipal Dev. 120.0 102.3 2970 1988 BANADE Agricult. Cred. 106.5 1.0 2984 1989 Argentina Social Sector 28.0 13.0 2997 1989 Argendna Housing Sector 300.00* (29.4) 270.6- (0.0) 3015 1989 Argenrna. Tax Admin. T.A. 6.5 1.5 3280 1991 Argentina Provinc. Develop. 200.0 195.5 3281 1991 Argentina Water Supply 100.0 100.0 3291 1991 Argentina. PERAL 300.0 148.4 3292 1991 Argentina PEREL 23.0 18.4 3297 1991 Argonina Agricul. Serv. 33.5 30.9 3362 1991 Argndina Pub Sector Reform T.A. 23.0 20.0 3394 1991 Argentina Pub Sector Reforn (PSRL) 325.0 162.5 3416 1992 YPF Sociedad Hydrocarbon Engr 28.0 28.0 Anonima 3460 y 1992 Argendna Second Tax Admin. T.A. 20.0 20.0 TOTAL 6446.7 (5,111.7) of whbch has been repaid 1661.0 TOTAL NOW OUTSTANDING 3,785.7 (3,450.7) AMOUNT SOLD 12.8 of which has boen repaid 12.8 TOTAL NOW HELD BY BANK AND IDA (with cancellaton) 3,772.9 (3,437.9) TOTAL UNDISSURSED (with cancelons) 1432.5 (1097.5) **Loans In process of canCellaion: Loans: (estimate in US$million) 2793-AR 21.6 2805-AR 42.8 2997-AR 270.6 JiNot yet signed.  .0 ;.l #