Conformed Copy - L3860 - Second Municipal Development Project - Amendment 2

April 2, 1998 Ministro de Economia y Obras y Servicios Publicos Hip6lito Yrigoyen 250 1086 Buenos Aires, Argentina Re: Loan No. 3860-AR (Second Municipal Development Project) Amendment to the Loan Agreement Dear Sir: Please refer to the Loan Agreement between International Bank for Reconstruction and Development (the Bank) and the Argentine Republic (the Borrower) dated October 18, 1995 (the Loan Agreement), as amended. In response to your Ministry's letter of March 6, 1998 in which the Bank was informed that the CCU (as such term is defined in Section 1.02 (b) of the Loan Agreement) is now within the Secretariat of Social Development and not within the Under Secretariat of Housing as stated in Section 3.06 of the Loan Agreement, we are pleased to inform you that the Bank agrees to amend Section 3.06 of the Loan Agreement to read as follows in its entirety: "Section 3.06. The Borrower shall, for purposes of carrying out Part C of the Project: (a) maintain, within the Borrower's Secretariat of Social Development, a unit, with staff, responsibilities and functions satisfactory to the Bank (the CCU); and (b) provide, or cause to be provided, promptly as needed, all the funds, facilities and other resources required by the CCU to carry out its functions and responsibilities in an efficient and timely manner.". Please confirm your agreement to the foregoing amendments by signing and dating this letter in the spaces provided below. This amendment letter may be executed in two counterparts, each of which shall be an original. Upon your confirmation, please return one fully executed original to us. The provisions of this amendment letter will become effective as of the date first above written upon receipt by the Bank of one fully executed original of this amendment letter. Very truly yours, INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Myrna L. Alexander Director Country Management Unit for Argentina, Chile and Uruguay ARGENTINE REPUBLIC Roque B. Fernandez Minister of Economy and Public Works and Services Date: no date