Conformed Copy - L2920 - Municipal Development Project - Amendment 1

Page 1 September 16, 1992 Mr. Domingo Cavallo Minister of Economy and Public Works Ministry of Economy and Public Works Hipolito Yirigoyen 250-533 1310 Buenos Aires, Argentina Re: ARGENTINA - Municipal Development Project (Loan 2920-AR) Amendment to the Loan Agreement Dear Mr. Cavallo: Please refer to the Loan Agreement between the International Bank for Reconstruction and Development (the Bank) and the Argentina Republic (the Borrower) dated November 29, 1988. We are pleased to inform you that, pursuant to the letter forwarded to the Bank by Mr. Alberto E. Biagosch on May 29, 1992, the Bank has agreed to amend the Loan Agreement as follows: A. Schedule 1 The table in paragraph 1 of this Schedule is hereby amended to read in its entirety: Amount of the Loan Allocated % of (Expressed in Expenditures Category Dollar Equivalent) to be Financed (1) Works included in an 70,000,000 75% Eligible Sub-project (2) Goods included in an 27,000,000 100% of foreign Eligible Sub-project expenditures and 75% of local expenditures (3) Consultants' services included in an Eligible Sub-project (a) auditing services 500,000 100% (b) services other than 4,000,000 100% of foreign auditing expenditures and 100% of local expenditures net of taxes (4) Unallocated 18,500,000 TOTAL 120,000,000 B. Schedule 2 The description of Part A of the Project is hereby amended by replacing the word "for" by the words "consisting of feasibility and engineering studies and/or", after the words "Eligible Subprojects". C. Schedule 4 Paragraph 1. (c) of this Schedule is hereby amended by substituting the figure of $10,000,000 in place of $5,000,000. D. Schedule 6 Page 2 Paragraphs 1. and 2. of Part C of Section I of this Schedule are hereby amended by substituting the figure of $75,000 in place of $25,000 wherever it appears in these paragraphs. Paragraph 2. of Part C of Section I of this Schedule is hereby amended by substituting the figure of $1,500,000 in place of $500,000. Paragraph 3(a). of Part C of Section I of this Schedule is hereby amended by Substituting the figure of $300,000 in place of $150,000. Please confirm your agreement to the foregoing amendments by signing and dating this letter in the space provided below. This amendment may be executed in two counterparts, each of which shall be an original. Upon your confirmation, please return one fully executed original of this amendment letter. Because of their interest int his matter, we are sending copies of this letter to Dr. Biagosch and to the heads of the five provincial executing units. Very truly yours, INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By /s/ Ping-Cheung Loh Director Country Department IV Latin America and the Caribbean Regional Region ARGENTINE REPUBLIC By /s/ Authorized Representative Dr. Domingo F. Cavallo