Conformed Copy - L4484 - Water Sector Reform Project - Amendment

Page 1 October 4, 2000 Mr. José Luis Machinea Ministro de Economía Hipólito Yrigoyen 250 1086 Buenos Aires, Argentina Re: Loan No. 4484-AR (Water Sector Reform Project) Amendment to the Loan Agreement Dear Sir: Please refer to the Loan Agreement between International Bank for Reconstruction and Development (the Bank) and the Argentine Republic (the Borrower) dated July 7, 2000, as amended on that same date (the Loan Agreement), with regard to the above-captioned Loan. We are pleased to inform you that, pursuant to your request and our recent discussions on the subject, the Bank agrees to amend the Loan Agreement further as set forth below. 1. Section 3.06 (a) is hereby amended to read as follows in its entirety: “Upon receipt by the Borrower of an amount of Loan proceeds disbursed by the Bank (other than into the Special Account) for eligible expenditures under the Project, or upon gathering by ENOHSA of evidence of eligible expenditures under the Project sufficient to permit Borrower disbursement of an amount of Loan proceeds from the Special Account, the Borrower shall: (i) onlend such amount of Loan proceeds to ENOHSA on terms identical to those of the Loan; (ii) with respect to amounts so onlent in connection with Part A of the Project (other than in connection with the Posadas water supply and sewerage expansion referred to in paragraph (b) (i) of this Section), cause ENOHSA promptly to disburse such amounts in Dollars as part of Subloans to those Subborrowers which incurred said eligible expenditures; and (iii) with respect to amounts so onlent in connection with Part A of the Project for said Posadas water supply and sewerage expansion, cause ENOHSA promptly to disburse such amounts in Dollars on a grant basis to the province of Misiones and further cause ENOHSA to ensure that the province of Misiones (in compliance by the province with the terms of the concession and supplemental agreements referred to in paragraph (b) (i) of this Section) promptly disburses such amounts in Dollars to the utility referred to in paragraph (b) (i) of this Section.