CONVENTION Decree 154/96 Approve a donation agreement by the Government of Japan to be signed with the International Bank for Reconstruction and Development to finance technical assistance for the preparation of the Water and Sanitation Sector Reform Project.

Bs. As., 16/2/96

VISTO Issue No. 561-025595/95 of the record of the MINISTERY OF ECONOMY AND ARTWS AND PUBLIC SERVICES, and

CONSIDERING:

That by the Visto's Expeditious Processes the model of the GOVERNMENT of the JAPON proposed to be subscribed between the ARGENTINA NATION and the INTERNATIONAL BANK OF RECONSTRUCTION and FOMENT, in its capacity as Administrator of the donations funds provided by the GOVERNMENT of the JAPON, for an amount of CUARENTA and HOURSE

That through the aforementioned Convention the JAPON's GOVERNMENT engages with the ARGENTINA NATION to the financing of the Technical Assistance, which includes the creation of a unit in the SUBSECRETARIA of HIDRIC RESOURCES of the SECRETARIAN ARTWORKS PUBLICS of the MINISTERY of ECONOMY and ARTS and PUBLIC SERVICES, which will thus be in charge of the preparation of the

The project for the allocation of donation funds is intended to support the decentralization of water and sanitation services through technical assistance to participating jurisdictions for the formulation of sector investment projects aimed at institutional strengthening, improving the quality of delivery and optimizing the infrastructure of services.

That the execution of the project will require the hiring of consultancy services and the realization of administrative expenses, a situation that is specifically determined by the Donation Convention to be signed with the INTERNATIONAL RECONSTRUCTION AND FOMENT BANCO.

That it is necessary to authorize the MINISTERY OF ECONOMY AND ARTWORKS AND PUBLIC SERVICES, to delegate to the SECRETARIAT OF ARTS PUBLICS creation of the COORDINATION UNITY OF THE PROJECT OF REFORM OF THE SECRETARIAT OF WATER AND SANEATING, which envisages Appendix 2 of the GOVERN's Agreement

That, by the NATIONAL EXECUTIVE POWER, it is entitled to approve such operations, in accordance with article 99, paragraph 1 of the NATIONAL CONSTITUTION and article 16 of Law No. 11.672 (T.O. 1995), Permanent Supplementary to Budget.

Therefore,

THE PRESIDENT OF THE ARGENTINA NATION

RIGHT:

Article 1 el Approve the model of the GOVERNMENT Granting Convention of the JAPON in English, to subscribe between the ARGENTINA NATION and the INTERNATIONAL RECONSTRUCTION BANK And FOMENT, whose authenticated copy forms an integral part of this Decree as Annex I, in the amount of CUARENTA and CUATRO MILLONES SEISCIENTS MIL YENES (and 44,600,000). Translation into the Spanish language of the text of the model of the Donation Convention and the General Conditions Applicable to the Conventions of Loan and Guarantee of the INTERNATIONAL RECONSTRUCTION BANCO And FOMENT are an integral part of this act as Annex II. Art. 2o . Contracts and acquisitions to be carried out in the implementation of the PROJECY FOR THE REFORM OF THE SECTOR OF WATER AND SAINTING shall be subject exclusively to the Regulations, Conditions and Procedures provided for in the Donation Convention whose model is approved by article 1 of this Decree, should be mentioned in the reference operations. Art. 3o . Please refer to the Lord MINISTER OF ECONOMY AND ARTWORKS AND PUBLIC SERVICES, or the official or officials designated by him, to subscribe on behalf of and representation of the ARGENTINA NATION, the Donation Convention and all the documentation referred to therein, according to the model approved by Article 1 of this Decree. Art. 4o . Please provide to the Minister of Economics and Public Works and Services, or to the official or officials designated by him, agree to and subscribe to the Donation Convention approved by article 1 of the present Decree, provided that they do not constitute substantial changes to the destination of the donation or modify the Peaceful Arbitration Procedure. Art. 5o . Authorize the SECRETARIAT of PUBLIC MINISTERY OF ECONOMY AND ARTWS AND PUBLIC SERVICES to create, within the scope of the SUBSECRETARIA OF HYDRIC RESOURCES, the COORDINATION UNITY OF THE PROJECT OF REFORM OF THE SECRETARY OF WATER AND SAINTINGS, mentioned in the present. Art. 6o o Determine that the COORDINATION UNITY OF THE DRAFT REFORM OF THE SECTOR OF WATER AND SAINTING, whose creation is authorized by the previous Article, may, by itself, perform all the operations necessary for the implementation of the objectives provided for in the Donation Convention, in accordance with the conditions established therein. Art. 7o . Communicate, publish, give to the National Directorate of the Official Register and archvese. . MENEM. . Eduardo Bauzá. . Domingo F. Cavallo.