Conformed Copy - L3971 - Decentralization and Improvement of Secondary Education and Polymodal Education Development Project - Supplemental Letter

Page 1 ARGENTINE REPUBLIC August 7, 1996 International Bank for Reconstruction and Development 1818 H Street, N. W. Washington, D.C. 20433 Re: Loan No. 3971-AR (Decentralization and Improvement of Secondary Education and Polymodal Education Development Project) Project Implementation Targets Project Impact Indicators Dear Sirs: Please refer to the Loan Agreement (Decentralization and Improvement of Secondary Education and Polymodal Education Development Project) of even date herewith between the Argentine Republic (the Borrower) and the International Bank for Reconstruction and Development (the Bank). Whenever used in this letter, the terms defined in the Loan Agreement have the same meaning as therein set forth. With respect to Section 1.02 (k) of the Loan Agreement, please find in Annex A hereto the Project Implementation Targets. With respect to Section 1.02 (l) of the Loan Agreement, please find in Annex B hereto the Project Impact Indicators. It is understood that the Project Impact Indicators are to measure the impact of the Project and not the performance of the Borrower and the Participating Entities of their obligations under the Loan Agreement and the Subsidiary Loan Agreements. It is further understood that the Project Impact Indicators will be adjusted from time to time, by agreement between the Borrower and the Bank, beginning upon the completion of the first year of Project implementation in light of: (a) the final findings of the Sector Management Productivity Studies and the corresponding Action Plans; (b) the "Censo Educativo/1994", carried out by the NMCE, presently being processed; and (c) other factors as may be relevant at the time. Please confirm your agreement with the above and with Annexes A and B hereto by signing this letter in the space provided below. Very truly yours, ARGENTINE REPUBLIC By _______________________ Authorized Representative AGREED: INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By ___________________________ Acting Regional Vice President Latin America and the Caribbean Region