Mexico - Second Primary Education Project : Loan 3722 - Guarantee Agreement - Conformed

L~Iu nI~R 3722 NM Guarantee Agreement (Second Primary Educaton Project) between UNITED MEXICAN STATES and INTERNATIONAL BANK 0R RECONSTRUCTION AND DEVELOPHENT Dated 1994 LOAN NUMBER 3722 M4 GUARANTEE AGREEMENT AGREEMENT, dated , 1994, between UNITED MEXICAN STATES (the Garantor) and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (the Bank). WHEREAS (A) the Guarantor and Nacional Financiera, S.N.C. (the Borrower), having been satisfied as to the feasibility and priority of the Project described in Schedule 2 to the Loan Agreement, have requested the Bank to assist in the financing of the Project; and (B) by the Loan Agreement of even date herewith between the Bank and the Borrower, the Bank has agreed to extend to the Borrower a loan in various currencies equivalent to four hundred twelve million Dollars ($412,000,000), on the terms and conditions set forth in the Loan Agreement, but only on condition that the Guarantor agree to guarantee the obligations of the Borrower in respect of such loan as provided in this Agreement; and WHEREAS the Guarantor, in consideration of the Bank's entering into the Loan Agreement with the Borrower, has agreed so to guarantee such obligations of the Borrower and to undertake such other obligations as set forth in this Agreement; NOW THEREFORE the parties hereto hereby agree as follows: ARTICLE I General Conditions; Definitions Section 1.01. The "General Conditions Applicable to Loan and Guarantee Agreements" of the Bank, dated January 1, 1985, with the modifications set forth in the Loan Agreement (the General Conditions), constitute an integral part of this Agreement. Section 1.02. Unless the context otherwise requires, the several terms defined in the General Conditions and in the Preamble to and Section 1.02 of the Loan Agreement have the respective meanings therein set forth. ARTICLE II Guarantee; Provision of hUad Section 2.01. Without limitation or restriction upon any of its other obligations under the Guarantee Agreement, the Guarantor -2- hereby unconditionally guarantees, as primary obligor and not as surety merely, the due and punctual payment of the principal of, and interest and other charges on, the Loan, and the premium, if any, on the prepayment of the Loan, and the punctual performance of all the other obligations of the Borrower, all as set forth in the Loan Agreement. Section 2.02. The Guarantor shall provide, or cause to be provided, in a timely manner as needed, the funds, facilities, services and other resources required for the Project. ARTICLE III Execution of the Project Section 3.01. The Guarantor declares its coumitment to the objectives of the Project as set forth in Schedule 2 to the Loan Agreement, and, to this end, shall, with due diligence and efficiency and in conformity with appropriate educational, financial, environmental, technical and administrative standards and practices, as well as in accordance with the annually adjustable implementation schedule and targets set forth in Annex B of the Implementation Letter: (a) cause CONAFE to, through the PCU as set forth in Section 3.09 of this Agreement and in coordination with the Project State SEEs (through their SPCUs) and (for Part C.1 of the Project) also in coordination with the SEEs of the States of Chiapas, Oaxaca, Guerrero and Hidalgo, coordinate the carrying out of the Project; (b) cause CONAFE to, in coordination with SEP and the Project State SEEs, carry out Parts A, 3.4 and B.5 of the Project; (c) cause CONAVE to, in coordination with the Project State SEEs, carry out Parts 3.1, B.2, 3.3, C.2, C.5, C.6, C.8 and C.10 of the Project, as well as all furnishing and equipping under Parts C.7 and C.9 of the Project; (d) cause CAPMCE to, in coordination with the Project State SEEs, carry out Part B.6 (a) of the Project as well as (for Project Schools covered by Part B.6 (a) of the Project) Part 3.6 (c) of the Project; (e) cause the Project State SEEs to, through Project State municipalities, carry out Part B.6 (b) of the Project; -3 (f) cause the Project State SEEs to carry out Part B.6 (d) of the Project; (g) cause CONAft to carry out Part B.6 (c) of the Project for Project Schools covered by Part B.6 (b) of the Project; (h) cause CONAFE to, in coordination with the Project State SEEs and the SEEs of the States of Chiapas, Oaxaca, Guerrero and Hidalgo, carry out Part C.1 of the Project; (i) carry out Part C.3 of the Project through SEP; (j) cause CONAFE to, in coordination with SEP, carry out Part C.4 of the Project; and (k) cause CAPFCE to carry out construction under Parts C.7 and C.9 of the Project. Section 3.02. The Guarantor shall enter into, and comply with the terms of, the contractual arrangements referred to in Section 3.01 of the Loan Agreement. Except as the Bank may otherwise agree, the Guarantor shall not amend or fail to enforce any provision of such contractual arrangements. The Guarantor shall exercise its rights under such contractual arrangements in euch a manner as to protect the interests of the Guarantor and the Bank and to accomplish the purposes of the Loan. Section 3.03. (a) Except as the Bank shall otherwise agree, procurement of the goods, works and consultants' services required for the Project and to be financed out of the proceeds of the Loan shall be governed by the provisions of Schedule 4 to the Loan Agreement. For those Parts of the Project which the Guarantor causes CORAFE to carry out in coordination with other entities, procurement shall be undertaken solely by CONAFE. For those Parts of the Project which the Guarantor causes CAPFCE to carry out in coordination with other entities, procurement shall be undertaken solely by CAPFCE. Project States (and/or municipalities or School Councils therein) shall carry out procurement only under Part B.6 (b) of the Project. The States of Chiapas, Oaxaca, Guerrero and Hidalgo shall carry out no procurement under the Project. (b) Beginning January 1, 1995 and throughout the course of Project implementation thereafter, the Guarantor shall maintain, in a manner satisfactory to the Bank, an annually adjustable data base of regionaliied reference prices to serve as a reference for Project -4 procurement costing in those cases where direct contracting is allowed for works. Section 3.04. The Guarantor shall carry out or cause to be carried out the obligations set forth in Sections 9.04, 9.05, 9.06, 9.07, 9.08 and 9.09 of the General Conditions (relating respectively to insurance, use of goods and services, plans and schedules, records and reports, maintenance and land acquisition) with regard to the Project. Section 3.05. (a) The Guarantor shall cause CONAFE to maintain records and separate accounts adequate to reflect, in accordance with sound accounting practices, the resources and expenditures in connection with the execution of the Project. (b) The Guarantor shall cause CONAFE to: Mi) have the records and accounts referred to in paragraph (a) of tis Section for each fiscal year audited (as well as the annual technical supervision reports referred to in Sections 3.06 (j) and 3.19 (a) of this Agreement), in accordance with generally accepted auditing standards and procedures consistently applied, by independent and qualified auditors; (ii) furnish to the Bank as soon as available, but in any case not later than six months after the end of each such year, the report of such audit by said auditors, of such scope and in such detail as the Bank shall have reasonably requested; and (iii) fu%nish to the Bank such other information acecerning said records and accounts as well as the audit thereof as the Bank shall from time to time reasonably request. (c) For all expenditures with respect to which withdrawals from the Loan Account were made on the basis of statements of expenditure, the Guarantor shall cause CONAFE to: (i) maintain, in accordance with paragraph (a) of this Section, records and accounts reflecting such expenditures; -5- (ii) retain, until at least one year after the Bank has received the audit report for the fiscal year in which the last withdrawal from the Loan Account or payment out of the Special Account was made, all records (contracts, orders, invoices, bills, receipts and other documents) evidencing such expenditures; (iii) enable the Bank's representatives to examine such records; and (iv) ensure that such records and accounts are included in the annual audit referred to in paragraph (b) of this Section and that the report of such audit contains a separate opinion by said auditors as to whether the statements of expenditure submitted during such fiscal year, together with the procedures and internal controls involved in their preparation, can be relied upon to support the related withdrawals. (d) For all expenditures with respect to which withdrawals were made from the Special Account, the Guarantor shall cause CONAFE to provide to the Borrower any information that may be required by the Borrower to comply with the Borrower' s obligations under Section 4.01 of the Loan Agreement. (e) The Guarantor shall cause CAPFCE to provide CONAFE with any information in CAPFCE's possession required to meet the obligations set forth in paragraphs (a) through (d) of this Section. Section 3.06. The Guarantor shall enter into a separate Participation Agreement, satisfactory to the Bank, with each of the Project States, whereby: (a) each Project State shall, in a manner consistent with the Project implementation responsibilities set forth in Section 3.01 of this Agreement and in accordance with annually adjustable Project State-specific implementation schedules and targets contained in each Participation Agreement (and included within the schedule and targets referred to in Section 3. 01 of this Agreement), carry out, or assist CONAFE and CAPFCE in carrying out, the Project within such Project State; -6- (b) the Guarantor shall provide or cause to be provided for each Project State, in a timely manner as needed, the goods and services (including construction and training services) required for implementing the Project within such Project State; (c) the Guarantor shall cause CONAFE (only with respect to Parts B.6 (b), C.6 and C.8 (a) of the Project and with respect to incremental Project State salary expenses in connection with Part C.10 of the Project) to provide to each Project State, in a timely manner as needed, the annually adjustable funds required for implementing said Parts of the Project within such Project State; (d) each Project State shall: (i) provide or cause to be provided, in a timely manner as needed, the funds, facilities, services and other resources (other than those covered by paragraphs (b) and (c) of this Section), required to carry out the Project in such Project State; and (ii) provide to its municipalities, in a timely manner as needed, the funds covered by paragraph (c) of this Section which it receives for Part B.6 (b) of the Project; (e) each Project State shall, through ite SPCU: (i) maintain records and separate accounts adequate to reflect, in accordance with sound accounting practices, the funds and other resources it (and/or any municipality or School Council therein) has received, allocated and/or spent in connection with the Project; and (ii) allow said records and accounts to be audited by the Guarantor and, in general, fully cooperate with the Guarantor and CONAFE so as to enable the Guarantor to comply with the obligations set forth in Section 3.05 of this Agreement; (f) each Project State shall carry out, and/or cause any municipality or School Council therein to carry out, procurement in connection with Part B.6 (b) of the Project solely in accordance with the provisions of Schedule 4 to the Loan Agreement; (g) each Project State shall assist the Guarantor to allow full compliance with the obligations set forth in Section 3.04 of this Agreement; (h) each Project State shall coordinate its participation in the Project through an SPCU, such SPCU to be: (i) staffed in a manner satisfactory to the Bank on a full-time basis (from within current staff of such Project State's SEE) by a General Coordinator, five Directors (one each for training, incentives/evaluation, didactic materials, infrastructure and financial administration) and -7- personnel (including a Technical Secretary) for a technical unit and an institutional support unit; and (ii) assisted by a TAC (which may have a different structure in each of the Project States) consisting of representatives of the entities within the Project State, as well as of federal delegations within the Project State, which have a Project execution role; (i) each Project State shall, through its SPCU, participate in each of the annual and midterm reviews referred to in Section 3.19 (b) and (c) of this Agreement and each Project State shall carry out its portion of the action plans referred to in Section 3.19 (b) (v) of this Agreement; (j) each Project State shall, through its SPCU: (i) contribute data to CONAFE in a timely manner as required for proper operation of the management information and process evaluation systems referred to in Part C.2 of the Project; and (ii) by no later than each month of September (beginning in 1994) during Project implementation, provde to CONAFE an annual progress report on Project implementation in such Project State (as measured against the relevant Project State-specific schedule and targets referred to in Section 3.06 (a) of this Agreement, and including an annual report on the technical supervision referred to in Section 3.12 (b) of this Agreement), as well as a proposed plan and budget for Project implementation in such Project State for the immediately subsequent fiscal year; (k) each Project State agrees that the Guarantor may cause the goods, services and funds referred to in paragraphs (b) and (c) of this Section to be withheld from the Project State if the Project State fails to comply with any of its obligations under its Participation Agreement; and (1) each Project State shall carry out the Project Part- specific obligations referred to in Sections 3.10 (b), 3.11 (b), 3.12, 3.13, 3.17 (b) and 3.18 of this Agreement. Section 3.07. The Guarantor shall enter into a separate Participation Agreement, satisfactory to the Bank, with each of the States of Chiapas, Oaxaca, Guerrero and Hidalgo, whereby: (a) each such State shall, in accordance with annually adjustable State-specific implementation schedules and targets contained in each Participation Agreement (and included within the schedule and targets referred to in Section 3.01 of this Agreement), -8- assist CONAFE in carrying out Part C.1 of the Project within such State; (b) the Guarantor shall cause CONAFE to provide the training under Part C.1 of the Project; (c) each such State shall assist the Guarantor to allow full compliance with the obligations set forth in Section 3.04 of this Agreement; (d) each such State shall: (i) contribute data (with respect to the implementation of Part C.1 of the Project within such State) to CONAFE in a timely manner as required for proper operation of the management information and process evaluation systems referred to in Part C.2 of the Project; and (ii) by no later than each month of September (beginning in 1994) during Project implementation, provide to CONAFE an annual progress report on implementation of Part C.1 of the Project in such State (as measured against the relevant State- specific schedule and targets referred to in Section 3.07 (a) of this Agreement), as well as a proposed plan for implementation of Part C.1 of the Project in such State for the immediately subsequent fiscal year; and (e) each such State agrees that the Guarantor may canse the training referred to in paragraph (b) of this Section to be withheld from such State if such State fails to comply with any of its obligations under its Participation Agreement. Section 3.08. The Guarantor shall, promptly upon the failure by a Project State or one of the States of Chiapas, Oaxaca, Guerrero and Hidalgo to comply with any of such States' obligations under a Participation Agreement, exercise the Guarantor's right to withhold referred to in Sections 3.06 (k) and 3.07 (e) of this Agreement. Section 3.09. The Guarantor shall cause CONAFE to coordinate Project implementation through the PCU, such PCU to be: (a) staffed in a manner satisfactory to the Bank on a full-time basis (to the extent possible from within current staff of the PCU for the PARE Project, which staff shall simultaneously retain responsibility under the PARE Project) by a General Coordinator, six Directors (one each for training, incentives/evaluation, didactic materials, infrastructure, institutional development and administration) and 38 staff at a level below that of said Directors; and (b) assisted by a TAC structured as set forth in Annex G of the Implementation Letter. -9- Section 3.10. With respect to Part A of the Project: (a) the Guarantor, through CTGs (one for non-indigenous primary school education and one for iudigenous primary school education) created within SEP, shall design training courses, develop training materials and train all STGs; and (b) the Guarantor shall cause each Project State to: (i) organize training in such Project State through two STGs, one for non-indigenous primary school education and one for indigenous primary school education; (ii) assist in distributing within such Project State the training materials referred to in Part A.2 of the Project; (iii) provide a 40-hour pedagogical counseling course to all administrtors of Project Schools located in such Project State; (iv) select trainers from among the best graduates of such course and evaluate their performance as trainers; and (v) have such trainers provide the rest of the training courses to all administrators and primary school teachers of Project Schools located in such Project State as follows: (A) each such trainee shall be provided with four mandatory five-day (40-hour) courses consisting of a course in educational resource use, a course in educational problem prevention, a course in remedial education and a course in multigrade class teaching techniques; and (B) each such trainee shall be provided with at least one elective seven-day (42-hour) course (taught during seven one-day sessions over the school year) from among the rest of the courses described under Part A.1 of the Project. Section 3.11. With respect to Parts B.4 and B.5 of the Project: (a) the Guarantor, through SEP, shall specify the contents of the library book and reference book packages to be distributed and, in coordination with a five-member working group (headed by an indigenous group representative) for each of the 17 indigenous languages referred to in Part B.5 of the Project, shall develop the indigenous language textbooks and related materials to be distributed; and - 10 - (b) the Guarantor shall cause each Project State to assist in distributing within such Project State said library books, reference books and indigenous language textbooks and related materials. Section 3.12. With respect to Part B.6 of the Project, the Guarantor shall: (a) cause CAPFCE to: (i) carry out all works under. Part B.6 (a) of the Project; and (ii) provide technical supervision of such works under the supervision terms of reference referred to in paragraph 3 (c) of Schedule 1 to the Loan Agreement; (b) cause the Project States, through their municipalities and under technical supervision by CAPFCE, the relevant SOPE or the relevant SEE (under the supervision terms of reference referred to in paragraph 3 (c) of Schedule 1 to the Loan Agreement), to carry out all works under Part B.6 (b) of the Project (which works shall not involve procurement through international competitive bidding or local competitive bidding and shall be estimated to cost less than $50,000 equivalent per contract or per bid package), which munici- palities may (subject to said technical supervision) in turn cause School Councils to carry out such works (when such works do not consist of maintenance) and must cause School Councils to carry out such works (when such works do consist of maintenance); (c) cause all non-maintenance works referred to in Parts B.6 (a) and B.6 (b) of the Project to be carried out only: (i) for Project Schools selected by the relevant State SEE, in consultation with the relevant COPLADE, in a manner consistent with selection criteria set forth in the Infrastructure Operational Manual and which Project Schools are listed in the relevant annual school infrastructure plans referred to in paragraph (e) of this Section or in Section 3.19 (b) (v) (C) of this Agreement; (ii) using a CAPFCE school building prototype design and budget, selected by the relevant SEE in coordination with the relevant School Council, from among a series of such prototypes satisfactory. to the Bank; (iii) in a manner consistent with the construction standards and procedures set forth in the Infrastructure Operational Manual; and (iv) for Project Schools for which the land is owned by the relevant Project State, for which the necessary staffing and operational budget has been comitted and allocated by the relevant Project State and for which a School Council is established and operational; - 11 - (d) cause the Project States, through their municipalities, to (in addition to the provisions referred to in paragraph (c) of this Section): (i) carry out all non-maintenance works referred to in paragraph (b) of this Section in accordance with the Self-Help Construction Handbook; and (ii) carry out all maintenance works referred to in paragraph (b) of this Section (as well as Project School furniture maintenance) in accordance with the Maintenance Handbook, with approximately $320 equivalent per affected Project School per year provided to the municipalities as part of the funds referred to in Section 3.06 (d) (ii) of this Agreement and with labor and in-kind contributions donated by the local community; and (e) cause CONAFE to: (i) by no later than August 1994, prepare a school infrastructure plan listing the Project Schools to be affected by Parts B.6 (a) or B.6 (b) of the Project during the last four months of 1994; and (ii) by no later than October 1994, prepare a school infrastructure plan listing the Project Schools to be affected by Parts B.6 (a) or B.6 (b) of the Project during 1995. Section 3.13. With respect to Part C.1 of the Project, the Guarantor shall have CONAFE cause the Project States and the States of Chiapas, Oaxaca, Guerrero and Hidalgo to nominate, and shall have CONAFE select from among such nominees, the management trainees according to criteria set forth in Annex C of the Implementation Letter. Section 3.14. With respeot to Part C.2 of the Project, the Guarantor shall cause CONAE to: (a) have the process evaluation system and management information system fully operational by no later than December 31, 1994; (b) discuss results of the management information system and of the process evaluation system with Project State SEEs; (c) develop an action plan for improvement of such systems that is satisfactory to the Bank by no later than January 31, 1996; and (d) thereafter carry out such action plan in accordance with its terms. Section 3.15. With respect to Part C.3 of the Project, the Guarantor shall, through SEP: (a) prepare, by no later than December 31, 1995, the tests, questionnaires and administrative manuals, all satisfactory to the Bank, to be used in carrying out the testing of public primary education students; and (b) carry out such testing during June 1996 and thereafter analyze and disseminate the testing results in a manner satisfactory to the Bank. - 12 Section 3.16. With respect to Part C.4 of the Project, the Guarantor shall cause COMAPE to have the studies carried out in accordance with the schedule and terms of reference contained in Annex D of the Implementation Letter and to make the results of the studies available to the Bank upon such studies' completion. Section 3.17. The Guarantor shall: (a) with respect to Part C.6 of the Project, cause CONAFE to provide work incentives in accordance with the terms of Annex E of the Implementation Letter and only to teachers working in Project Schools contained in the annually updated list referred to in Section 3.19 (b) (v) (D) of this Agreement (such list for the first year of Project implementation is found in Annex F of the Implementation Letter); and (b) have CONAFE cause each Project State to assist in the provision of such work incentives, as well as in the provision of travel incentives under Part C.8 of the Project. Section 3.18. With respect to Part C.9 of the Project, the Guarantor shall cause CAPFCE to construct warehouses as determined by a distribution plan, satisfactory to the Bank, for each Project State and shall cause each Project State to distribute educational materials according to said distribution plan for each Project State, as well as according to an inventory control system, satisfactory to the Bank, for each Project State. Such construction, as well as the construction carried out under Part C.7 of the Project, shall be subject to technical supervision under the terms of reference referred to in paragraph 3 (c) of Schedule 1 to the Loan Agreement. Section 3.19. (a) Throughout the course of Project imple- mentation, and without limitation of the provisions of Section 9.07 of the General Conditions, the Guarantor shall cause CONAFE to, in a form satisfactory to the Bank, furnish to the Bank during each month of September an annual progress report (beginning in 1994) on implementation of the Project (including the annual progress reports prepared by each Project State and the States of Chiapas, Oaxaca, Guerrero and Hidalgo pursuant to Sections 3.06 (j) (ii) and 3.07 (d) (ii) of this Agreement and an annual report on the technical supervision referred to in Section 3.12 (a) of this Agreement), as well as a proposed budget and plan for Project implementation for the immediately subsequent fiscal year (including the proposed plans and budgets prepared by each Project State and the proposed plans - 13 - prepared by the States of Chiapas, Oaxaca, Guerrero and Hidalgo pursuant to Sections 3.06 (j) (ii) and 3.07 (d) (ii) of this Agreement). (b) The Guarantor, through SEP and SHCP, shall participate, and shall cause CONAFE, CAPFCE and each Project State to parti- cipate, in annual reviews of Project implementation to be held in conjunction with the Bank and the Borrower each month of October during Project implementation, beginning in 1995. Each such review shall, based inter alia on the reports and proposed plans and budgets referred to in paragraph (a) of this Section: (i) examine the status of Project implementation; (ii) examine the status of implementation of the Program; (iii) examine the: (A) latest approved and immediately subsequent proposed annual federal nationwide public education budgets, as well as such budgets as allocated separately to each Project State; and (B) latest approved and immediately subsequent proposed annual public education budgets for each Project State (such budgets to exclude any funds received from the federal government); (iv) examine the evidence as to compliance with the provisions of Section 3.12 (c) (iv) of this Agreement with respect to Project Schools appearing in the plan referred to in paragraph (b) (v) (C) of this Section; (v) result in the preparation by the Guarantor, no later than each immediately subsequent January 31, of an annual action plan for the Project, satisfactory to the Bank, to be carried out or caused to be carried out by the Guarantor during the imediately subsequent fiscal year, each such action plan to contain, inter alia: (A) the annual adjustment to implementation schedules and targets referred to in Sections 3.01, 3.06 (a) and 3.07 (a) of this Agreement; (B) the annual fund adjustment referred to in Section 3.06 (c) of this Agreement; (C) the school - 14 - infrastructure plan listing the Project Schools to be affected by Parts B.6 (a) or B.6 (b) of the Project during the immediately subsequent fiscal year; (D) the list of Project Schools to be affected by Part C.6 of the Project during the immediately subsequent fiscal year; and (E) the annual regionalized price adjustment referred to in Section 3.03 (b) of this Agreement; and (vi) examine, in light of the results of the study referred to in Part C.4 (b) (v) of the Project, the expansion of mandatory education in Mexico beyond the primary school grades (1-6) to also include grades 7-9. (c) The Guarantor, through SEP and SHCP, shall participate, and shall cause CONAFE, CAPFCE and each Project State to parti- cipate, in a midterm review of Project implementation to be held in conjunction with the Bank and the Borrower during the annual review (referred to in paragraph (b) of this Section) to be held in October 1996. Such midterm review shall be carried out under terms of reference, satisfactory to the Bank, which shall be presented by the Guarantor to the Bank during March 1996. (d) The Guarantor, through SEP and SHCP, shall participate, and shall cause CONAFE, CAPFCE and each Project State to parti- cipate, in a Project launch seminar, to be held in conjunction with the Bank and the Borrower within two months after the Effective Date, designed to familiarize seminar participants with the Project and with Bank procedures. Section 3.20. The Guarantor shall not permit any funds, goods, services or other resources to be provided under the Project to any State until such State has entered into a Participation Agreement satisfactory to the Bank. ARTICLE IV Representatives of the Guarantor; Addresses Section 4.01. The Director General de Cr6dito Pfiblico of the Guarantor is designated as representative of the Guarantor for the purposes of Section 11.03 of the General Conditions. - 15- Section 4.02. The following addresses are specified for the purposes of Section 11.01 of the General Conditions: For the Guarantor: Secretaria de Hacienda y Cr6dito PGiblico Direcci6n General de Cr6dito PGblico Palacio Nacional, Patio Central Oficina 4037 06066 M6xico, D.P. Telex:. 1777313-SHOCHE For the Bank: International Bank for Reconstruction and Development 1818 H Street, N.W. Washington, D.C. 20433 United States of America Cable address: Telex: INTBAFRAD 248423 (RCA) Washington, D.C. 82987 (FTCC) 64145 (WUI) or 197688 (TRT) - 16 - IN WITNESS WHEREOF, the parties hereto, acting through their duly authorized representatives, have caused this Agreement to be signed in their respective names in the District of Columbia, United States of America, as of the day and year first above written. UNITED MEXICAN STATES By Authorized Representative INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By ~? ~ 4~ Regional Vice President Latin America and the Caribbean INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT CERTIFICATE I hereby certify that the foregoing is a true copy of the original in the archives of the International Bank for Reconstruction and Development. FOR SECRETARY