Conformed Copy - L4459 - Social and Fiscal National Identification System Project - Supplemental Letter

Page 1 ARGENTINE REPUBLIC 1999 Mr. Shahid Javed Burki Regional Vice President Latin America and the Caribbean Region International Bank for Reconstruction and Development 1818 H St., N.W. Washington, D.C. Re: Loan 4459-AR (Social and Fiscal National Identification System Project) Implementation Letter Dear Mr. Burki: This letter, with the indicators and timetable attached hereto, constitutes the "Implementation Letter" referred to in Section 1.02 (e) of the Loan Agreement of even date herewith between the Argentine Republic and International Bank for Reconstruction and Development for the above-captioned Loan. Sincerely yours, ARGENTINE REPUBLIC By /s/ ____________________ Authorized Representative CONFIRMED: International Bank for Reconstruction And Development By /s/ _________________________ Authorized Representative Social and Fiscal National Identification System Project Implementation Letter 1. The following indicators will be used in monitoring and evaluating the execution and impact of the SINTyS Project: a. Social services: -- the number of identified households previously not receiving services (target: 150,000) -- the number of beneficiary households incorrectly receiving benefits (target: 100,000) -- savings of US$16 million at the end of the second year’s activities b. Fiscal programs: -- increase of 3,000 in the number of detected non-registered taxpayers or taxpayers identified as making insufficient payments -- increase of US$25 million in collections at the end of the second year’s activities c. Project objectives: the percentage of potential SINTyS client programs participating in SINTyS d. Project outputs: Page 2 -- the use of consistent common processes to identify entities and assets by the Secretariat of Social Development, National Social Security Administration, Secretariat of Employment and Training and other selected federal, provincial and municipal entities -- 20 percent of the population uniquely identified and with family relationships determined e. Project execution: -- the effective, appropriate use of the IBRD Loan during the scheduled program period for the following components in the amounts indicated: (i) Improvement of social service delivery –US$ 4.0 million (ii) Improvement of fiscal programs--$3.2 million (iii) Framework and Infrastructure---- $2.0 million (iv) System Management-US$0.2 million (v) Project Administration-US$0.6 million 2. The implementation timetable calls for: a. Commencement of implementation of at least 15 activities under Part A.1 of the Project and at least 5 activities under Part B.1 of the Project within the first six months. b. Commencement of implementation of at least an additional 30 activities under Part A.1 of the Project and at least an additional 10 activities under Part B.1 of the Project within the first year. c. Commencement of implementation of all remaining activities under Parts A.1 and B.1 of the Project within the first eighteen months. Note: "Activities" for purposes of this para. 2 means Project activities as set forth in Annex 2 of the Bank’s Project Appraisal Document for this Project.