PRESTAM CONTRATES Decree 789/95 Approved a Loan Contract to be held with the Inter-American Development Bank (IDB), for the financing of the Potable Water and Sanitation Programme - VI ETAPA.

Bs. As., 2/6/95

VISTO the Draft Contract of Loan No. 857/OC-AR, proposed to be subscribed between the ARGENTINA NATION and the INTERAMERICAN DEVELOPMENT BANCO, up to the equivalent of DOLARES STADOUNIDENSES DOSCIENTS MILLONES (US$ 200,000) from the resources of the Bank's ordinary capital and

CONSIDERING:

That through the loan precited the INTER-AMERICAN BANCO of DEVELOPMENT, the financing of the POTABLE WATER and SAINTING PROGRAMME - VI ETAPA, whose execution will be carried out by the SECRETARIAT OF PUBLIC ARTWS AND COMMUNICATIONS of the MINISTERY OF ECONOMY AND PUBLIC SERVICES.

That the POTABLE WATER PROGRAMME VI ETAPA aims to improve the quality of life of the population, in those localities from QUINIENTOS (500) to QUINCE MIL (15,000) inhabitants throughout the country, through the execution of works aimed at increasing the coverage of drinking water and sanitation services as well as supporting the Entes Prestadores with responsibility to plan, define policies and standardize the sector to maintain and improve their administrative, financial and operational mechanisms.

That the general conditions of the loan, the periods of amortization, the period of grace, the interest rates and other clauses of the proposed contract for subscription and which is attached as an Annex to the present, are the usual in this kind of agreements and are suitable for the purposes and objectives to which the loan is intended.

That the immediate operationalization of the POTABLE WATER PROGRAMME VI ETAPA is a priority for the National Government in response to the policies outlined and the commitments made by the Nation.

That for the formalization of this operation, it is necessary that the ARGENTINA NATION, through the MINISTERY OF ECONOMY AND ARTWS AND PUBLIC SERVICES, subscribe to the aforementioned Prest Contract.

That this Agreement is covered by Article 60 in fine of the Financial Administration and National Public Sector Control Systems Act No. 24.156.

That in accordance with the provisions of Act No. 11,672, Supplementary Permanent Budget (T.O. 1994) and Articles 99, subsection (1), 100, subsection (1) and the Duodecima Transitional Provision of the National Constitution, the NATIONAL EXECUTIVE PODER is empowered to approve such operations and subject eventual disputes to the decision of the Arbitral Tribunals.

Therefore,

THE PRESIDENT OF THE ARGENTINA NATION

RIGHT:

Article 1 el Approved the Loan Contract No. 857/OC-AR to be held between the BANCO INTERAMERICAN DEVELOPING (IDB) and the ARGENTINA NATION, for the financing of the POTABLE WATER and SAINTING program - VI ETAPA, which in the Special Estipulations consists of VEINTISIETE (27) clauses, in the General Standards of CUARENTA and SIETE (47) Articles and Annexes A, B, and C, up to the equivalent of DOLARES STADOUNIDENSES DOSCIENTOS MILLONES (U$S 200,000), whose text in an authenticated copy is part of the present Decree.

Art. 2o . Please refer to the Minister of Economics and Public Works and Services, or to the official designated by him, so that, on behalf of the ARGENTINA NATION, he may subscribe to the Loan Contract, the text of which is approved in Article 1 of this Decree and all the documentation relating thereto.

Art. 3o . Please provide to the Minister of Economics and Public Works and Services, or to the official designated by him, to agree and sign during the period of execution of the Loan Contract, all the necessary contractual modifications, provided that they do not constitute substantial changes to the fate of the Loan, do not result in an increase in their amount or change the agreed Arbitration Procedure.

Art. 4o - Contracts and acquisitions to be carried out in the implementation of the POTABLE WATER PROGRAMME VI ETAPA shall be subject to the rules, conditions and procedures provided for in the Loan Contract whose model is approved in Article 1 of this Decree.

Art. 5o . Please refer to the Minister of Economics and Public Works and Services or to the official designated by him, to subscribe to the corresponding Supplementary Conventions, with each of the participating jurisdictions of the Programme, to whom the funds of the Loan are allocated.

Art. 6th . Communicate, publish, give to the National Directorate of the Official Register and archvese. . MENEM. . José A. Caro Figueroa.

NOTE: This Decree is published without an Annex. Unpublished documentation can be consulted at the Central Headquarters of this National Directorate (Suipacha 767, Capital Federal).