Conformed Copy - L3860 - Second Municipal Development Project - Amendment 3

The World Bank 1818 H Street N.W. (202) 477-1234 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Washington, D.C. 20433 Cable Address: INTBAFRAD INTERNATIONAL DEVELOPMENT ASSOCIATION U.S.A. Cable Address: INDEVAS May 15, 2002 Mr. Roberto Lavagna Minister of Economy Ministry of Economy Hipolito Irigoyen 250 1310 Buenos Aires, Argentina Re: ARGENTINA – Second Municipal Development Project (Loan No. 3860-AR) Amendment to the Loan Agreement Excellency: Please refer to the Loan Agreement dated October 18, 1995 entered into between the Argentine Republic (the Borrower) and the International Bank for Reconstruction and Development (the Bank), as amended. In response to a letter from Ing. Cristina de Hoz, Coordinadora Ejecutiva, dated December 31, 2001 requesting: (a) the reallocation of the proceeds of the Loan under Category (6) – Unallocated set forth in the table in paragraph 1 of Schedule 1 to the Loan Agreement amongst the other disbursement categories set forth in said table; and (b) a modification in the aggregate amount for procurement of goods and works set forth in Parts C.1 and C.2 of Section I of Schedule 4 to the Loan Agreement, the Bank hereby agrees to amend the Loan Agreement as follows: 1. Sections 7.01 and 7.02 are herby amended to read in their entirety as follows:  “Section 7.01. The Minister of Economy of the Borrower is designated as representative of the Borrower for the purposes of Section 11.03 of the General Conditions. Section 7.02. The following addresses are specified for the purposes of Section 11.01 of the General Conditions: For the Borrower: Ministerio de Economía Hipólito Yrigoyen 250 1310 Buenos Aires Argentina Cable address: Telex: MINISTERIO ECONOMIA 121942-AR”. Baires 2. The table in paragraph 1 of Schedule 1 is hereby amended in its entirety to read as set forth in the annex to this Amendment Letter. 3. Parts C.1 and C.2 of Section I of Schedule 4 are hereby amended in their entirety as follows: “1 Goods and works estimated to cost the equivalent of $350,000 and $5,000,000 or less, respectively, per contract, up to an aggregate amount equivalent to $32,200,000 and 168,900,000, respectively, may be procured under contracts awarded on the basis of competitive bidding, advertised locally, in accordance with procedures satisfactory to the Bank. 2. Goods and works estimated to cost the equivalent of less than $100,000 and $350,000 per contract, respectively, up to an aggregate amount equivalent to $16,200,000 for goods and $16,350,000 for works, may be procured under contracts awarded on the basis of comparison of price quotations obtained from at least three suppliers or contractors, as the case may be, eligible under the Guidelines, in accordance with procedures acceptable to the Bank.”.  This Amendment Letter shall be executed in two counterparts each of which shall be an original. Upon receipt by the Bank of one fully executed original of this Amendment Letter, this amendment will be effective as of the date first above written. Please confirm your agreement to the foregoing amendment by signing and dating the two counterparts of this Amendment Letter. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT /s/Myrna L. Alexander Director Country Management Unit VII Latin America and the Caribbean Region AGREED AND CONFIRMED: ARGENTINE REPUBLIC By: /s/Roberto Lavagna Authorized Representative Date: August 22, 2002  Annex AMOUNT OF THE LOAN (EXPRESSED IN DOLLAR % OF EXPENDITURES “CATEGORY EQUIVALENT) TO BE FINANCED (1) Civil Works 143,585,571 100% of foreign expenditures and 75% of local expenditures (2) Goods 39,509,335 100% of foreign expenditures and 75% of local expenditures (3) Consultants’ services for: 100% (a) under Parts A and B of the 18,600,000 Project (b) for the CCU 5,200,000 (4) Auditing services 85,000 100% (5) Training 100,000 (6) Unallocated 0 (7) Cancellation as of November 20, 2000 2,920,094 ___________ Total 210,000,000” ========== WB76939 M:\ARGENTIN\Amendments\3860 AR (2002).doc December 10, 2002 11:19 AM