Argentina - Decentralization and Improvement of Secondary Education and Polymodal Education Development Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No. P-6637-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 FQUIVALENT TO US$115.5 MILLION TO TH.E ARGENTINE REPUBLIC FOR A DECENTRALIZATION AND IMPROVEMENT OF SECONDARY EDUCATION AND POLYMODAL EDUCATION DEVELOPMENT PROJECT DECEMBER 1, 1995 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS Currency Unit - Argentine Peso (A$) Official Rate: US$1 = A$1 WEIGHTS AND MEASURES Metric system 1 meter (m.) = 3.28 feet (ft.) 1 kilometer (km.) = 0.62 mile (mi.) 1 square kilometer (km2) = 0.386 square mile (so. mi.) 1 metric ton (m. ton) = 1.1 US short ton (sh. ton) 1 liter (1.) = 0.264178 US gallon (gal.) FISCAL YEAR January 1 to December 31 SCHOOL YEAR March 15 to December 15 GLOSSARY GDP Gross Domestic Product FEL Federal Education Law PME Provincial Ministries of Education SSMTAL Social Sector Management Technical Assistance Loan SMPS Sector Management Productivity Study NSAS National Student Assessment System NMIS National Management Information System IDB Inter-American Development Bank NMCE National Ministry of Culture and Education NPCU National Project Coordination Unit PPCU Provincial Project Coordination Unit  FOR OFFICIAL USE ONLY REPUBLIC OF ARGENTINA DECENTRALIZATION AND IMPROVEMENT OF SECONDARY EDUCATION AND POLYMODAL EDUCATION DEVELOPMIENT PROJECT LOAN AND PROJECT SUMMNLRY Borrower: Argentine Republic Implementing The National Ministry of Culture and Education (NMCE) and Agency: selected Provincial Ministries of Education (PMEs), i.e. the Provinces of Buenos Aires, Chaco, Corrientes, Entre Rios, Salta, Santa Cruz, and Tucuman, and the Municipality of Buenos Aires. I Beneficiaries: Selected Provincial Governments Poverty: Not applicable. Amount: US$115.5 million equivalent Terms: Repayable in 15 years, including a grace period of five years at the Bank's standard variable interest rate Commitment Fee: 0.75 percent per year on undisbursed loan balances, beginning 60 days after signing, less any waiver Relending Terms: Subsidiary loans to the Provinces will be made under the same terms and conditions as those of the Loan. Financing Plan: See Schedule A Net Present Value: Not applicable Staff Appraisal Report: No. 14559-AR Map: IBRD No. 27198 Project Identifification Number: AR-PA-6057 1. In Argentina there are a total of 23 provinces plus the Municipality of Buenos Aires. In this report all of these jurisdictions are referred to as provinces. This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not othermise be disclosed wiLhout World Bank authorization.   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$115.5 MILLION TO THE ARGENTINE REPUBLIC FOR A DECENTRALIZATION AND IMPROVEMENT OF SECONDARY EDUCATION AND POLYMODAL EDUCATION DEVELOPMENT PROJECT 1. I submit for your approval the following memorandum and recommendation on a proposed loan to the Argentine Republic for the equivalent of US$115.5 million to help finance a project to improve Argentina's recently-decentralized secondary education system. The loan would have a maturity of 15 years and a grace period of five years with loan amortization based on level repayments of principal. 2. Subloans to the Provinces shall be made under the same terms and conditions of the Loan with respect to repayment period, interest rate, commitment charge and currency provisions. 3. Background. Following a severe economic crisis in the 1980s, Argentina embarked on a comprehensive program to stabilize and restructure its economy. Inflation, which exceeded 1,300 percent annually in 1990, stood at less than 4 percent for 1994. Economic growth improved (GDP increased by 6 percent in 1993, and by 7.1 percent in 1994), although growth is expected to be very low for 1995. Fiscal performance at the federal level has also improved, thanks in part to an increased tax effort, privatization of state-owned industries, and reductions in federal employment. These measures have also been accompanied by substantial reform and reorganization in the social sectors, which has had as a primary strategy the decentralization of service provision to the provincial governments. In spite of these recent improvements, however, the establishment of a solid base to foster long-term economic growth remains an important national challenge. The long-term success of the current economic program will depend in large part on increases in productivity and competitiveness in world markets, which in turn will depend on effective investments in human resources. 4. Secondary education, as an entry point to the labor market, is a particularly crucial area in this regard. Currently, secondary education in Argentina is characterized by poor quality and low internal efficiency. A 1994 nation-wide sample survey of secondary students' academic achievement shows that, on average, students scored less than 50 percent of answers correctly in the areas of mathematics and Spanish. Nationwide, repetition rates average 10 percent per year and some 40 percent of each cohort of students drops out before completing the four-year cycle. On average, in the selected provinces of this project, repetition is 14.1 percent and the drop-out rate is 46 percent. High dropout and low achievement levels are partly due to inefficient management and inadequate spending on educational materials and other educational inputs. Overall spending on education was severely affected by the economic crisis of the 1980s, averaging only 3.1 percent of GDP from 1980 to 1993. Low public investment in the sector and a concentration of educational expenditures on personnel have also led to the deterioration and overcrowding of school buildings. In many provinces, secondary schools share physical space with primary schools or occupy unsuitable locations. In addition, internal productivity is low, as reflected by student-teacher ratios which average approximately 8 to 1 in the participating project  - 2 - provinces. Although community groups (Cooperadoras) assist with school rehabilitation and provision of basic school equipment, their resources are insufficient to fill the gap resulting from the crisis which has affected the public sector. The private non-subsidized sector, which represents 28 percent of total enrollments, has remained relatively unchanged during this period, serving mostly upper-income groups. 5. To address quality and efficiency problems in the sector, Government has started to implement a far-reaching reform embodied in the new Federal Education Law (FEL) of 1993. The FEL provides a framework for reorganizing educational management and the internal structure of the educational system. A central component of the Government's strategy, which is being supported by the Bank, is the decentralization from the federal level to the provinces of educational provision, financing, and management.' Decentralization was carried out for primary schools in 1978, and was completed in 1994 for national secondary schools. The FEL has redefined the roles of the central and provincial governments. Provinces now finance and administer all public pre-university education while the central government provides policy guidance, establishes minimum curricular content, monitors student achievement, and implements compensation programs targeted to poor schools and/or regions. Other objectives outlined by the FEL include: (i) raising compulsory education from 7 to 10 years, including one year of pre-school; and (ii) changing the curriculum of each cycle, converting the primary level into a General Basic Education cycle and shifting the secondary level from two specific tracks (professional and academic) to a polymodal cycle that will be focused on more general skills and competencies. The Bank has supported this reform in approving a (First) Decentralization and Improvement of Secondary Education Project (Ln.3794-AR). 2 6. Project Objectives. This project will have the same objectives as those of the first project, for seven additional Provinces (Buenos Aires, Chaco, Corrientes, Entre Rios, Salta, Santa Cruz, and Tucuman) and the Municipality of Buenos Aires 3. These objectives are to: (a) strengthen institutional capacity in the Provincial Ministries of Education (PMEs) under a decentralized framework; (b) increase the quality and efficiency of secondary education; and 1. The Bank has been a strong advocate of decentralization as a means of addressing sectoral problems: Sector work (Bank Country Study, Argentina: Reallocating Resources for Improvement of Education, 1991) and a Social Sector Management Technical Assistance Loan, SSMTAL (Loan 2984-AR) have provided the groundwork for many interventions including those in the first and proposed in this second project. 2. The seven provinces included in the first project are Cordoba, La Pampa, Mendoza, Misiones, Neuqudn, Rio Negro and Santa Fe. 3. These provinces were selected based on the following criteria: (i) signed Transfer Agreement for secondary schools; (ii) commitment of the provinces to participate in the National Management Information System (NMIS) and National Student Assessment System (NSAS); (iii) a satisfactory diagnosis of the provincial education sector and project proposal; (iv) willingness to carry out reforms to improve productivity and efficiency in the sector; and (v) need to improve coverage and quality as reflected by educational indicators. Additionally, final selection was contingent on PMEs' completion of specific tasks outlined for each step of project preparation, pre-appraisal, and appraisal.  - 3 - (c) enhance physical capacity to serve the secondary-school-aged population more effectively. The Province of Buenos Aires subproject will follow a more simplified design.4 7. Project Description. Each subproject in the selected provinces will include three broad components. The institutional strengthening component amount (US$32.3 million including contingencies, approximately 20% of total project cost), will include: (i) improvement of educational administration, budgeting and planning capacity5; (ii) the development of a management information system; (iii) the development of a student assessment system; and (iv) the training of administrative and management staff. The educational quality improvement component (US$56.3 million including contingencies, approximately 34% of total project cost), includes: (i) provision of in-service training and other programs for upgrading the skills of teachers and administrators; (ii) provision of textbooks and teaching/learning materials; (iii) strengthening of curriculum development in basic skill areas (such as language and math); (iv) strengthening of school-based management; and (v) support for school-based quality improvement projects. The rehabilitation and expansion of physical infrastructure component (US$67.0 million including contingencies, approximately 41 % of total project cost), involves mostly repair and renovation of school facilities, and establishment of systems for rational use and sustained maintenance of buildings. Project management expenditures account for the remaining 5 percent of project costs. The content of each provincial subproject varies, based on the specific needs and priorities of the Provincial Ministries of Education. 8. Project Cost and Financing. The total cost of the project is estimated at US$164.4 million based on prices of April 1995. The total foreign exchange cost is estimated at US$18.3 million, or about 11 percent of the total cost. The proposed project would be financed by a Bank loan of US$115.5 million or 71 percent of total project cost. The loan would cover 100 percent of foreign exchange expenditures and about 84 percent of estimated local costs (excluding taxes). The Government of Argentina would finance the remaining US$48 million (including duties and taxes). A breakdown of project costs and the financing plan are shown in Schedule A. Amounts and methods of procurement and of disbursement are shown in Schedule B. A timetable of key project processing events and the status of Bank Group operations in Argentina are presented in Schedules C and D respectively. 9. Rationale for Bank Involvement. The secondary education projects are a priority for the government sectoral objectives, and respond to the urgent need to improve this education level to ensure the trainability, adaptability, and productivity of the labor force in a 4. Buenos Aires Province's education system is too large to be fully addressed by a project of this magnitude. Thus, the subproject of this province will have only two subcomponents of the Institutional Strengthening component described in para. 5, and a set of studies. The objectives will be to support the province's short term participation in the national education reform, analyze its secondary education sector, and develop a more comprehensive future project of its own, that could be financed by the Bank. 5. During project preparation the PMEs carried out a diagnosis of sector inefficiencies based on available data at the provincial level. Additionally, each of the eight provinces agreed to carry out a Sector Management Productivity Study (SMPS). These SMPSs, financed by the NMCE and conducted through competitively awarded contracts with consultant firms, will: (i) refine the diagnoses earlier carried out by the PMEs; and (ii) provide recommendations on the basis of which the provinces will prepare their own action plans for improving sector efficiency.  decentralized framework. The involvement of the Bank in this project complements ongoing activities of the Bank and other donors in the sector 6. The proposed loan is also fully consistent with the Country Assistance Strategy discussed by the Board on May 4, 1995. 10. Project Preparation. The project was prepared by the Provincial Ministries of Education (PMEs) with the assistance of the National Ministry of Culture and Education (NMCE). To develop and maintain a sense of ownership, provincial education administrators and technical staff took an active role in defining their subprojects. Project preparation was financed by grant funds from the Japanese Government. 11. Project Implementation and Monitoring. Project implementation would be coordinated by NMCE's National Project Coordination Unit (NPCU), which would be strengthened accordingly. Nevertheless, implementation would be carried out in a decentralized framework by each participating province which would have its own project coordination unit (PPCU). To strengthen project long term objectives, a set of Impact Indicators and Monitoring Indicators were agreed between the Federal and provincial governments and the Bank. The institutional strengthening activities to be financed under the project will provide technical support for effective project monitoring. Furthermore, to avoid delays in subprojects implementation, as well as to promote competition among the participating provinces. The loan agreement include the possibility to reallocate unused funds which could become available if a participating province: (i) had not signed the subsidiary loan agreement within the eight months period following the loan effectiveness; (ii) requires the reduction of the amount of its subloan; or (iii) had disbursed less than 20 percent of its subloan after a period of 30 months after loan effectiveness. In either case the NMCE in agreement with the Bank, could propose the use of the available funds to finance subprojects of replacing provinces. 12. Project Sustainability. The effect of the proposed project on total sector costs, and the ability of the participating provincial govemments to sustain the expenditures that will result from project implementation, has been assessed. The assessment of the expenditures resulting from project implementation has shown that this increase is within the financial capacity of the provinces, especially when considering the importance provincial govemments give to the education sector, and the gains in management efficiency to be achieved through institutional strengthening. Recurrent expenditures resulting from the project are expected to range from approximately US$300,000 per year in the provinces of Buenos Aires, Chaco and Santa Cruz to US$1.1 million per year in the Province of Entre Rios. From the point of view of sustainability, the additional recurrent expenditures would represent in most cases less than 1 percent of the estimated sector budget projected for the year 2000 and less than 5 percent of the forecast secondary education budget of the PMEs. 6. The Provincial Development I Project (Loan 3280-AR) finances investments in primary education infrastructure. The Higher Education Improvement Project would support the implementation of legal, management and administrative reforms that have recently been initiated by the government. The Inter- American Development Bank (IDB) is financing a program to support basic education (pre-school and primary) focusing on problems similar to those faced at the secondary level, especially with regard to quality and efficiency.  13. Lessons Learned. There has been only one education project completed in Argentina to date, the Vocational Training and Technical Education Project (Ln. 1905-AR, approved in 1980). This US$58 million project aimed at improving institutional capacity and expanding the quality of Argentina's vocational training system. The project was canceled seven years after approval, disbursing less than 2% of project funds because of deteriorating economic conditions, political turmoil, project complexity and changes in project administration. The First Decentralization of Secondary Education project is expected to become effective by August 1995. Bank research on secondary education emphasizes the importance of the following: improving general education, promoting better access (especially among the poor), supporting teacher training and provision of learning inputs, and supporting institutional strengthening. These lessons have been incorporated into the design of both the first and the second projects. 14. Poverty Category. School construction under the project will be targeted to areas in which schools are overcrowded or in need of renovation, which are generally located in poor communities. Schools serving poor children will also be disproportionately benefitted by the provision of educational materials, which are a key factor in improving educational quality. Further, the provision of information systems and improved management capacity will also enable the provincial governments to better target investments to the needs of the poor. 15. Environmental Impact. The project does not present environmental risks other than the relatively minor ones associated with school construction and maintenance activities. These will be addressed in the design and approval stage of investment subprojects. The project has an environmental rating of "C." 16. Program Objective Categories. Within the broad category of human resource development, the project's objectives are to improve the efficiency and quality of secondary education in the participating PMEs. 17. Participatory Approach. The proposed project, like its predecessor, seeks to support decentralization of education and transfer of authority over schools to levels closer to individual communities. In a broad sense participation was achieved during preparation through involving the provinces in all aspects of preparation. In addition, all provinces have incorporated subcomponents for intra-provincial decentralization and for strengthening school-based management. Four provinces (Chaco, Entre Rios, Salta and Santa Cruz) have also incorporated subcomponents to provide school-based grants for quality improvement based upon participatory planning approaches at the level of the individual school. 18. Key Issues and Actions. The Govemment has already presented to the Bank: (a) the final versions of terms of reference, revised on the basis of the early findings of the Sector Management Productivity Studies (SMPSs), for consultant services to implement institutional and administrative reorganization, modemization of norms and procedures, and strengthening of planning capacity; and (b) final version of the technical plans and specifications, and preliminary designs, for all civil works to be included during the first and second year of the project. During negotiations, agreements or assurances were obtained from the Govemment on the following: (a) updated analyses of sector inefficiencies and project impact indicators and targets, for each province, based upon early findings of the SMPSs; (b) assurances of annual budget allocations for each year of project implementation at the provincial level; (c)  - 6 - maintenance of PPCU staff or similarly qualified professionals during project implementation; (d) agreement on the scope and content of the project's Mid-Term Review, with special attention to the implementation of the action plans based on the recommendations of the SMPSs, to address sector inefficiencies. As a condition of loan effectiveness, the Bank would require: (a) at least one signed subsidiary loan agreement; (b) the establishment of the PPCU in the same province, with signed subsidiary loan agreement; and (c) an action plan, based on the recommendations of the SMPSs, in the same province with signed subsidiary agreement and establishment of the respective PPCU. As a condition of disbursement in each remaining province, the Bank would require: (a) a signed subsidiary loan agreement; (b) the establishment of the PPCU; and (c) an action plan, based upon the recommendation of the SMPS, to address previously identified sector inefficiencies. 19. Expected Benefits. The project would: (a) contribute to a more educated and trainable workforce by raising students' cognitive achievement and problem-solving skills; (b) increase the opportunity of children in low-income areas to receive a better quality education, thus increasing their possibilities in the labor market and opportunities for social mobility; (c) help consolidate the decentralization process by strengthening provincial institutions, thus generating more efficient responses to local problems; and (d) help increase sector productivity, thus creating net savings for the education sector which could be reallocated to inputs which have a high impact on educational quality (e.g., textbooks and teacher training). The project will directly benefit over 550,000 secondary students--roughly 25 percent of the nation's total secondary education enrollment, not taking into account the Province of Buenos Aires enrollments. 20. A quantitative estimate of benefits arising from the project was made on the basis of assumptions considered reasonable from experience in the sector. These include: (a) a reduction in repetition rates from an average of about 14 percent per year to about 10 percent per year in the seven provinces7; (b) a reduction in the current dropout rate by approximately 15 percent by project completion; (c) improvements in the student/teacher ratio from an average of 7:1 to 9:1; and (d) administrative savings equal to at least five percent of current expenditures through organizational and administrative reforms. If these assumptions hold, they would together result in potential benefits accruing to project provinces of US$442 million per year upon the completion of the project. 21. Risks and Safeguards. The main risks associated with the project can be classified as direct and indirect. Direct risks are: (a) limited implementation capacity at the provincial level as well as limited sectoral experience with Bank-financed projects; and (b) slow implementation of new policy decisions arising from the new FEL such as the new curriculum content. Indirect risks mainly involve macroeconomic difficulties that could impair the provinces' financial capacity to assure availability of counterpart funds. 22. Direct risks will be minimized by: (a) strengthening the NPCU established for the (First) Decentralization and Improvement of Secondary Education Project with additional technical staff to perform specific functions of monitoring and supervising the provincial subprojects in the field; (b) ensuring coordination between the NPCU and the Provincial 7. The Province of Buenos Aires is not included in the estimates of project benefits, since this project will not cover direct quality investments in that Province.  - 7 - Project Coordination Units (PPCUs) which would also have a small but highly qualified staff; (c) prior agreement with the NPCU and PPCUs on annual targets for the project; and (d) prior agreement on technical assistance activities and training that will be supported by the project, including those related to project implementation. Indirect risks will be minimized by ensuring the availability of counterpart funds through the co-financing mechanisms in place between the federal and provincial governments. These risks would be further mitigated by allowing for the reallocation of the project funds to a province not originally in the project, as explained in para. 11. 23. Recommendation. I am satisfied that the proposed loan would comply with the Articles of Agreement of the Bank, and recommend that the Executive Directors approve it. James D. Wolfensohn President Washington, D. C. December 1, 1995  -8- Schedule A ARGENTINE REPUBLIC DECENTRALIZATION AND IMPROVEMENT OF SECONDARY EDUCATION AND POLYMODAL EDUCATION DEVELOPMENT PROJECT (DISEPED) Project Cost by Aggregate Component Component US$ million Percent Institutional Strengthening 32.3 20% Educational Quality Improvement 56.3 34% Infrastructure Improvement 67.0 41% Project Coordination 8.8 5% Total 164.4 100% Financing Plan Duties & Total Local Foreign Total Taxes Cost U-------uS$ Million------ Provincial Governments 36.6 0.0 36.6 12.3 48.9 IBRD Loan 97.2 18.3 115.5 0.0 115.5 Total 133.8 18.3 152.1 12.3 164.4  9- Schedule B ARGENTINE REPUBLIC DECENTRALIZATION AND IMPROVEMENT OF SECONDARY EDUCATION AND POLYMODAL EDUCATION DEVELOPMENT PROJECT (DISEPED) Procurement Methods by Categorya/ (USS million) Categories ICB LCB Other NBF Total Works - 40.3 12.9 bl - 53.2 (24.2) (7.8) (32.0) Informatics & Communication Equipment, Vehicles, Furniture, Training Materials, and Teaching 13.0 17.2 15.8 c/ - 46.0 MaterialslEquipment (8.8) (11.6) (10.7) (31.1) Consultant Services - - 38.3 - 38.3 (33.5) (33.5) Scholarships - - 2.1 - 2.1 (2.1) (2.1) Grants - - 2.5 - 2.5 (2.5) (2.5) Project Implementation Expenditures dl - - 8.8e/ - 8.8 (7.8) (7.8) Land - - 0.4 0.4 (0.0) (0.0) Incremental Recurrent Expenditures f/ - - 13.1 g/ - 13.1 (6.5) (6.5) Total 13.0 57.5 93.5 0.4 164.4 (8.8) (35.8) (70.9) (0.0) (115.5) a/ Totals include taxes and contingencies. Amounts in parentheses show amounts financed by the Bank. b/ Small works procedures up to USS 12.9 million c/ Limited international bidding (LIB) up to approximately US$7.5 million, and shopping. d/ Includes expenditures required during project implementation such as: fares and perdiems for training and project coordination, office materials, officc rentals, utilities, publications and promotion, and bidding expenditures. e/ Shopping f/ Includes incremental recurrent expenditures associated with the project such as salaries, building and equipment maintenance, insurance, rentals, utilities, publications, and office materials. g/ Incremental recurrent salaries amount to USS2.7 million. Shopping would apply to about US$6.2 million and direct contracting to about US$4.2 million.  - 10- Schedule B ARGENTINE REPUBLIC DECENTRALIZATION AND IMPROVEMENT OF SECONDARY EDUCATION AND POLYMODAL EDUCATION DEVELOPMENT PROJECT (DISEPED) Alloation and Disbursement of IBRD Loan Amount of the Loan % of Allocated (Expressed in Expenditures Category Dollar Equivalent) to be Financed (1) Civil Works 30,000,000 65% (2) Goods (Informatics and communication 30,000,000 80% equipment, vehicles, furniture, training materials, and didactic materials/equipment) (3) Consultants' services 26,000,000 90% (4) School-based grants and scholarships 4,000,000 100% (5) Incremental recurrent salaries 5,000,000 50% (6) Project Implementation expenditures 6,800,000 90% (7) Unallocated 13,700,000 TOTAL 115,500,000 IBRD Loan Estimated Disbursement (US$ million) Bank FY FY96 FY97 FY98 FY99 FY00 FY01 Annual 9.8 16.3 28.2 29.8 21.6 9.8 Cumulative 9.8 26.1 54.3 84.1 105.7 115.5  - 11 - Schedule C ARGENTINE REPUBLIC DECENTRALIZATION AND IMPROVEMENT OF SECONDARY EDUCATION AND POLYMODAL EDUCATION DEVELOPMENT PROJECT (DISEPED) Timetable of Key Project Processing Events (a) Time taken to prepare: Twelve months (b) Prepared by: National Ministry of Culture and Education (NMCE) and Provincial Ministries of Education (PMEs) Buenos Aires, Corrientes, Chaco, Entre Rios, Municipality of Buenos Aires, Salta, Santa Cruz, and Tucuman (c) First Bank Mission: June 1994 (d) Appraisal Mission Departure: April 1995 (e) Planned Date of Negotiations: October 1995 (f) Planned Date of Effectiveness: January 1996 (g) List of Relevant PCRs and PPARs: Not applicable  - 12 - THE STATUS OF BANK GROUP OPERATIONS IN ARGENTINA SCHEDULE D STATEMENT OF BANK LOANS (as of September 30, 1995) (USS million) Loan Fiscal AMOUNT (les UNDISBURSED Number Year Borrower Purpose cancellations) Fully disbursed boans (44) 5,361.2 0.0 of wtnich SAL/SECAUDebt Reduction loans: 2675 19S6 Argentina Agriculture Sector 350.0 i2815 1987 Argentina Trade Policy 496.0 2996 18a Argentina Trade Policy I 300.0 3291 1S991 Argentina Publc EnterprmsReforrm 300.0 3394 1992 Argentina Pubi Sector Reform 3250 3555 1993 Argentina DDSR Support 450.0 3558 1993 Argentina Firancial Sector Adjustment 400.0 3556 1993 Argentina Pub Entwrpre Ref II 300.0 41 186 Argentina Water Suppty 40.0 2.0 j2854 1987 Argentina Power Ditribution 276.0 69.8 2920 1 98d Argentina Municipal Deveoprment 120.0 3.7 3280 1991 Argentina Provincial Development 200.0 118.7 3251 1991 Argentina Water Supply 100.0 92.8 13292 1991 Argentina PEREL 23.0 0.3 3297 1991 Argentina Agricultural Services 33.5 11.5 316!2 31991 Argentina Pub Ssctr Reform TA. 23.0 4.7 13460 1992 Argentina Tax Administration II 20.0 3.9 |3520 1993 Argentina Yacyreta II 300.0 14.2 j3521 1993 Argentine Flood Rehab 170.0 37.4 -611 1993 Argentina Road Maintenance & Rehab 340.0 221 .5 1 3643 1594 Argentina Maternal & Child Health 100.0 83.0 13709 1994 Argentina Capital Markets 500.0 500.0 3710 19S4 Argentina C2P" alMarJt TA 8.5 7.4 3794 1995 Argentina Secondary Education I 190.0 190.0 19i:G 199 Argentina Provincial Reform 300.0 2004 3860 1/ 1995 Argentina Municipal Development i 210.0 210.0 j3877 11 1995 Argentina Provincial Dev. i 225.0 25.0 83N8S 1996 Argentina Provincl Bank Privatiz. 500.0 333.0 13S21 1, 1995 Arentina Higher Education Reform 165.0 165.0 1-022t 1/ 1996 Argentina Bank Reform 500.0 t00.0 13927 1/ 1998 Argentina Mining Sector Development 30.0 30.0 3931 1/ 1996 Argentina Provincal Health Secor Dev. 101.4 101.4 ITOTAL 9,836.6 Qi uiwo naa -een repac 2,585.5 TOTAL NOW OUTSTANDING 7,251.1 iAMOUNT SOLD 12.8 of wn ch has been repaid 12.8 TOTAL NOW HELD BY BANK AND IDA 9836.5 72383 ,TOTAL UNDISBURSED 3123, *Disbursing SECAL. SAL or Debt Reduction Loan 1/ Nd yet signed. 05.Oct-95  - 13 - AXG3NTINA STATZCNET OF IPC INVESTMZNTS SClULE D As of September 30, 1995 (In Millions US Dollars) - Original Groam Comintinera - Reid Hold :odsb Fiscal Year. IFC :FC by by i.cl. Comeitted Obligor Type of Businsus Loan Equity Ptpnt. Totals :PC Ptpnt. Ptpnt. 1992 Frigorifico Rioplatense S Food and Agribusiness 12.00 1.00 6.00 19.00 10 .33 5.00 2.00 1992 MBA Sociedad de Bolse S.A Financial Services - .18 - .18 .16 - - 1992 Oleeginoma Onsts, S.. Food and Agribusines 20 .00 - 15. 00 35.00 14.16 4.94 - 1992 Polisur, SM. Chemicals and Petroce mic - 7.00 - 7.00 7 .00 - - 1992/93 Petrolera Argentina San J Mining and Extraction of 15.00 27. 00 35 .00 77 .00 39 .50 29.16 2700 1993 Alto Parant SA. Timber. Pulp and Paper - - - 0.00 1 347 - - 1993 Cadipsa SA. Mining and Extraction of 15 00 5.00 20.00 40 .00 20 .00 13 .00 9.20 1993 Capri S.A.I.C.I Food and Agribueiness - - - 0.00 .90 - - 1993 Maprigas S.A. Infrastructure - - 0. 00 .94 - _ 1993 Ferroexpreeo Parpeano, S. Infrastructure 13.00 2 0.00 33 .00 12.45 17. 0 4.60 1993 Interpack, S.A. Timber, Pulp and Paper - - - 0. 00 1.28 - 1993 La Industrial Alimenticia Food and Agribusiness - - - 0 00 .69 - 1993 Maltarie PaMpe, S.A. Food and Agrxbusiness 12.00 - 12 .00 24 .00 8.00 16.00 - 1993 Mendoza Refreacos, S.A. Pood and Agribusiness - - - 0. 00 .94 - - 1993 Nuevo Central Argentina S Infrastructure 10 .00 3.00 15 00 28. 00 12.38 15.00 15.00 1993 SurfactLn SA. Cbin.icals and Petrocheamc - - - 0 .00 .17 - _ 1993/94 folinas Rio de le Plate S Food and Agribusinese - 3 .00 - 3.00 7.93 - - 1993/96 Bride, S.A.P.I.C. Mining and Extraction of SS.00 25.00 100. 00 10 .00 76 .00 86.00 52 .00 1994 Cervecerie y Maltsria Qui Food and Aqribusiness 15.00 - 15 00 33 00 15 00 15 00 1994 CompaAia General de Combu Mining and Extraction of 25 .00 15.00 40 00 80. 00 38.00 42 .00 - 1994 Enpresa Distribuidora Nor Infrastructure 45 .00 - 128.00 173.00 39 .3 121.09 - 1994 Ferrum S.A. Cement and Construction M - - - 0. 00 1.50 - - 1994 Macisa-Argentina. S.A. Timber, Pulp and Paper 11.00 - 11.00 :1 - 1994 The Argentine Equity Inve Financial Services - 4.00 - 4.00 4.00 - - 1994 Yacylec S.A. Infrastructure 20 .00 .04 45. 00 65.04 15.4i 4. ;7 - 1995 Aceitera General Deheae S Food and Agribusiness 15 00 10.00 15 00 40 .00 25.00 15.00 15 .00 1995 Aguas Argentinas Infrastructure 38 .00 7.00 134.50 179.52 4 .00 125.53 - 1995 Cspaixia Zlboradora de P Food and Agribusiness 15.00 - 6.00 21. 00 14.33 5.40 - 1995 ConpadiaL Americana do Sup Industrial and Consumer S 28 .00 - - 28 .00 28 .00 - - 1995 Kleppe S.A. end Z1 Calder Food and Agribusiness 6.00 - - 6.00 6.00 - 1995 La Buenos Aires New York Financial Services - 2.89 _ 2.89 2.89 - - 1995 La Buenos Aires S.A. Reti Financial Servicee - 1.17 - 1.17 1.17 - .53 1995 Mastellone Hermanos S.A. Food and Agribusiness 40.00 - 35.00 75 .00 40.00 - - 1395 Maxima SA. AlYP Financial Services - 14.19 - 14.19 14.19 - .34 1995 Nahuelsat S.A. Infrastructure 30.00 5.00 - 35.00 35.00 - 30.00 1395 Sancor Cooperativas Unida Food end Agribusiness 40 .00 - 3 0.00 70 .00 40.00 - - 1995 Socma Americana SA. Infrastructure 24.99 15.00 60.01 100. 00 39.99 1395 The Tower Fund, L.P. Pinancial Services - 20.00 - 20.00 20.00 - 17 .73 1995 Tbe Tower Invstment Mana Financial Serv:zcs - .15 - .15 .15 - .13 Total gross comitmenti b/ 1243 .00 200.06 1035.61 2478.67 Less cancellations, terminations. repayment sales 562.19 1.52 311.60 875.31 Total cnitmonte now hold c/ 680.81 198.54 724.01 1603.36 S79.35 724.31 225.76 Pending comitzonts AZCSA 20 .00 - 61 .00 91.00 Aguas Argentinas Infrastructure 40.00 - 110.00 150.00 BRAHMA ARGENTDSA 10.00 8.50 25 .00 43 .50 EDZDX5R 40.00 - 80.00 120.02 Epress, Distribuidora Infrastructure - - 8.00 9.00 TER]IOALES PORT. 10. 00 2.00 - 12.00 TCCU3MAN - .30 .30 Total pending c-omitments 120.00 10.80 284.00 414.80 Total cinitmsants hold and pending coneitments 800.81 209 .34 1008 .01 2018.16 Total undisbursad coitments 87 .48 45.43 92 .85 225. 76 a/ Investments which have been fully cancelled, terminated, written-off, sold, redeemed, or repaid. b/ Gross commitments consist of approved and signed projects. c/ geld comnitments consist of disbursed and undisbursod investments.  - 14 - ARGENTINA SCXlLE D STAT7MZN OF IPC INV25STUErTS As of September 30, 1995 (In Millions US Dollars) - Original Gross Commitments - Held Held Ubdab Fiscal Yearn IrC IFC by by incl. Comitted Obligor Type of Buniness tLon Equity Ptpnt. Total. IrC Ptpnt. Ptpnt. 19C0 a/ Papelera Rio Para.a, SA. Timber, Pulp and Paper 3.00 - - 3 .00 - - - 1960/95 Acindar Industria Argenti Mining and Extraction of 27.94 - 20.73 4 .67 25 .00 20 .00 35.00 1961 a/ Fabrics Argentina de Engr Motor Vehicles and Compon 1.23 - .28 1.51 - - - 1962 a/ Pasa. Petroquimica Argent Oil Refining 3.05 - - 3 .05 - - - 1965/72 a/ Celulosa Argentina, S.A. Timber, Pulp and Paper 8.25 - 4.25 12.50 - - - 1319 a/ Editorial Codes Sociedad Manufacturing 5.00 1.60 .40 7.00 - - - 1969/75 a/ Dalsine Siderca. S.Al..C. Mining and Extraction of 14.75 - 2.25 17. 00 - - - 1973 a/ Calera Avelisneda, SA. Cement end Construction M 5.50 - - 5.30 - - - 1977/84/86/88/94 Alpargatas S.A.X.C. Textiles 62.93 S 00 36 .50 104.43 32 .52 29 .00 - 1377/85 a/ Soyax S.A. Food and Agribuniness 21.00 - - 21.00 - - - 1971/81/86/87/93/94 Juan Kinetti S.A. C-ment and Construction M 44.00 - 67.50 111.50 6.79 6.31 - 1378/85/186/88/91 a/ Massub S.1. Timber, Pulp and Paper 25.65 4.25 3.00 32.90 9- - 1979/82/87/92 a/ Ipno Industrias Petroqui Chemicals and Petroebmic 21.00 1.15 9.00 31.15 - - - 1979/83/84 a/ Alposca, S.A. Food and Agribusinese 5.20 1.61 - 6.81 - - - 1384 Petroquimica Cuyo S.A.I.C Chemicals and Petrocheaic 21.00 4.00 21.09 4 6.09 - - - 1986 a/ Ata=or SA.X. Chemicals and Petroche-ic 7.00 1.00 - 8 .00 - - 1986 Cattorini Enos. S.1. Manufacturing - - - 0 .00 .12 - - 1938 CerAmics Pilar S.A.C.I. Manufacturing - - - 0. 00 .13 - - 1986 Coupaffia Sud.mericana BSTB Manufacturing , - - 0.00 .14 - 1986 Diario La Nueva Provincia Timber. Pulp and Paper - - - 0. 00 .04 - - 1986 Piedra Grand Mining and Extraction of - - - 0 00 .04 - - 1986 Roberts Participaciones S Financial Services .05 - .05 .05 - - 198; S.A. de Inversiones de Ca Financial Services - 2.00 - 2.00 .43 - - 1986/89/91/95 Banco Roberts S.A. Financial Services 48.00 - - 48 .00 20.00 - - 13987 a/ SA. Garovaglio y Zorraqu Chemicals and Petrochemic 13.00 - - 13 .00 - - - 1987/90 a/ Bidra Oil Development Pro Mining and Extraction of 80.00 - 27.60 107.10 - - - 1387/90/91 Terminal 6 S.1. Infrastructure 12.50 - - 12 .50 4.75 - - IS83 a/ Arcor S.A..C2. Food and Agribusiness 12.00 - 12 .00 - - - 1983 A/ Aetra C.A.P.S.A. Mining and Extraction of 12.38 - - 12.38 - - - 1183 a/ Bridas S A.P.I.C. Mining and Extraction of 20.63 - - 20. 63 - - - 1388 Colortax SA. Textile - - - 0.00 .27 - - 1963 Corporacian Ceneral de A1 Food and Agribusineas - - - 0. 00 .13 _ 188 Cia Industrial Lanera S.A Textiles - _ - 0.00 .05 - - i388 Productot Pulpa Moldeada, Timber, Pulp and Paper - - - 0.00 .27 - - 1988 Sen SebastiLa S.A.I.C.I.F Food and Agribusines - - - 0 .00 .27 - - 1988 Tevycom Fapece SA. Manufacturing - - 0. 00 .08 - - 1988 Valley Evaporating Cospan Food and Agribusiness - - - 0 .00 .13 - - 1S88 Vandenfil, SyA.2xC.2.F Y Textiles - - - 0 .00 .13 - - 1988/89 Finca Flicbran, S9A. Food and Agribusiness - - - 0.00 .38 - - 1988/89/94 Banco General de Segocios Financial Services 35.00 - - 35 .00 15.00 - - 1988/92 a/ Chirata/Morillo/Olleros 0 Mining and Rxtraction of - 6.62 - 6.62 - - - 1988/92 Banco Rio de la Plata. S. Financial Services 50.00 - - o0.00 23.18 4.00 7.53 1988/93 sunge y Born S.A. Food and Agribusiness 63.00 - 57 .50 120.50 9.75 56.71 - 1988/93 Longvis ParanA, S.A. Manufacturing - - - 0.00 .90 - 1989 a/ Argentine Investwmet Coup Pinancial Services - 2.00 - 2.00 - - - 1989 a/ Chihuidos Petroleum Mining and Extraction, of - 4. 98 4.398 1389 a/ Comp^aia Gen-eral de Inver financial Services - .10 - .10 - 1389 Banco Francm del Rio de Finzancial Services 15.00 - - 1o. 7.55 2 .00 - 1989 Carboclor Industrias Quis Chemicals and P-trochemic - - - 0.00 .07 - - 1983 Concesud, SA. Industrial end Consner S - - - 0 .00 .27 - - 1989 Comesi S.A.I.C. Manufacturing - - - 0.00 .66 - 1989 Fracebia Enos. S9A. Infrastructure - - 0.0 .42 - 1983 Industrias Quisicas Lauri Chemicals and Petrochemic - - - .00 .22 - _ 1989 Inta 9.1. Textiles - - - 0 .00 .66 - - 1989 M.A. Soprano S.1. Tiaber, Pulp and Paper - 0.00 .05 - - 1989 Parafina del Plats, SA. Chmicalms and Petrochemic - - 0 .00 1.13 - 1389 Pastoril Santiagusna S.A. Food and Agribusiness - - 0.00 .29 - 1989 S.A. Genaro Garcia Limita Food and Agribusiness - 0 .00 1.23 - - 1989/92 Astra - Coupadi AIrgentin Mining and Extraction of 5 0.0 - 43 .00 93 .00 18. 3 28.58 1389/93 Bolland & CIA. S.1. Hotels and Tourism - - 0 .00 .40 - 1930 Algodonera Santa Fe S.1. Textilea - - - 0 00 .48 - 1990 Corporacidn de Inversione Financial Services - .05 - .05 .08 1390 Frigorifico Tobe, SA. rood and Agribusiness - - 0 .00 .23 1990 Willror S9A. Food and Agribusiness - - 0 00 1.23 1930/95 PetrokLen Patroquimica Ens Chemicals and Petrochemic 40.00 - 11.00 51. 00 33 .33 8.2 10.00 1991 Banco de Crfdito Argentin Financial Services 10 .00 - 10.00 2.83 3.60 1991 Guilford Argentina 8.A. Textiles . 0.00 .40 1991 Jugos del Sur, S.A. Food and Agribusiness 0.00 .27 - 1991 TSBR S.A. Manufacturing - - 0,00 .32 -  IRD 2' 0 . ~~~~~~ h 1o 0 B O LIVIA "Cso ttt \ EIERo PARAGUAY SALTA A i / Jno JUAN C A ACt i~ S; '7 Santicgo Resislen aj.'. ' , A BRAZIL a del Estero APsd5f SAN TIAG C Catamarca DE a La Rioaa S s R L . LA , ANTAfLI L~~~~~~~ A ( PAA P 30- SAN RIOJA FE JUAN |'REYBA 1 E So CuanO RSanta Fe ENT RE -40