Conformed Copy - L4484 - Water Sector Reform Project - Amendment

Page 1 June 25, 2002 Mr. Roberto Lavagna Minister of Economy Ministry of Economy Hipolito Irigoyen 250 1310 Buenos Aires, Argentina Re: ARGENTINA – Water Sector Reform Project (Loan No. 4484-AR) Amendment to the Loan Agreement Excellency: Please refer to the Loan Agreement dated July 7, 2000 entered into between the Argentine Republic (the Borrower) and the International Bank for Reconstruction and Development (the Bank), as amended. In response to Lic. Gerardo Marcelo Hita ( Director Nacional de Proyectos con Organismos Internacionales de Crédito of the Ministry of Economy) April 9, 2002 request to: (a) extend the Closing Date from July 31, 2002 to July 31, 2004; (b) reallocate a portion of the Loan proceeds amongst the disbursement categories set forth in Schedule 1 to the Loan Agreement to, inter alia , permit the financing of additional Subprojects under Part A of the Project; (c) create a new disbursement category that will finance goods under Part B of the Project to strengthen the regulatory capacity of water sector regulatory agencies to be selected by the Borrower in accordance with criteria acceptable to the Bank, and the operational capacity of the Borrower’s Federal Association of Regulatory Entities of Water and Sewerage; and (d) increase the disbursement percentage for certain categories of expenditures to be financed with Loan proceeds under the Project, the Bank hereby agrees to amend the Loan Agreement and Implementation Letter, as follows: I. Loan Agreement : 1. Section 1.02 is hereby amended by: (a) deleting the word “and