CONTRACT OF PRESTAM

Decree No. 1056/95

Apply a loan contract to subscribe to the International Bank for Reconstruction and Development for the Health Sector Reform Project.

Bs. As., 29/12/95

VISTO the Contract of Loan 3931-AR proposed to be subscribed between the ARGENTINA NATION and the INTERNATIONAL BANCO of RECONSTRUCTION and FOMENT (BIRF), and

CONSIDERING:

That by means of the aforementioned Loan Contract in the amount of DOLARES STADOUNIDENS ICENT A MILLONES CUATROCIENTS MIL (U$S 101,400.000) or its equivalent in other currencies, the INTERNATIONAL RECONSTRUCTION AND FOLLOWING BANK concurs with the ARGENTINA NATION in the financing of the PROJECT OF REFORM OF THE SECTOR

That the National Government, through the Central Executive Unit (UEC) of the Project and the aforementioned jurisdictions, through the respective Provincial Executing Units (UEP) or Municipal (UEM), will have the responsibility to execute the Project.

Under the above consideration, it is necessary to transfer to the participating jurisdictions of the Project the commitments made by the ARGENTINA NATION to the Bank, by subscription to the respective Conventions and Subsidiary of Loan.

That it is necessary to create a CENTRAL EXECUTIVE UNITY (EU) that acts directly and specifically in the activities related to the implementation of the Project, by a professional with Coordinator functions.

That the general conditions, the amortization deadlines, interest rates and other clauses contained in the Loan Contract proposed to be subscribed are the usual ones that are agreed in this type of Contract and are suitable for the purposes and objectives to which the loan is intended.

That the formalization of this operation requires that the NATION ARGENTINA through the MINISTERY OF ECONOMY AND ARTWORKS AND SERVICES PUBLICS subscribes to the Loan Contract and the supplementary documentation thereof.

That this Convention is covered in the terms of article 60 in fine of Law 24.156.

That in accordance with Article 16 of the Permanent Supplementary Law on Budget (T.O. 1995) and Article 99 (1) of the NATIONAL CONSTITUTION, the NATIONAL EXECUTIVE PODER is empowered to approve such operations.

Therefore,

THE PRESIDENT OF THE ARGENTINA NATION

RIGHT:

ARTICLE 1. Approved the Loan Contract 3931-AR for the SECTOR HEALTH REFORM PROJECT, to subscribe between the ARGENTINA NATION and the INTERNATIONAL RECONSTRUCTION AND FOMENT BANCO in the amount of DOLARES ESTADOUNIDENSES SCIENT A MILLONES CUATROCIENTS MIL (US$ 101,400,000) The objectives of the PROJECT OF REFORM OF THE HEALTH SECTOR are an integral part of this Decree as Annex I; the text of the Contract, in its original version in English, as Annex II; to the translation into Spanish of the Contract as Annex II; the General Conditions applicable to the Contracts of Loan and Guarantee in its version in English as Annex III and its translation into the Spanish language as Annex IIIa;

ARTICLE 2. Please refer to the Minister of Economics and Public Works and Services or to the official and/or officials designated by him, to subscribe, on behalf of and representation of the ARGENTINA NATION, the Loan Contract approved in Article 1 of this Decree and its additional documentation.

ARTICLE 3o.- Please refer to the Minister of Economics and Public Works and Services or to the official and/or officials designated by him to agree and to subscribe, on behalf of and representation of the ARGENTINA NATION, modifications to the Loan Contract approved by Article 1 of this Decree, provided that the latter do not involve substantial changes to the object and destination of the funds and do not result in an increase in the amount or in alterations in the Agreement.

ARTICLE 4o.- Please refer to the Ministers of Health and Social Action and of Economics and Public Works and/or to the official/s designated by them, to subscribe to the corresponding Subsidiary Conventions with each of the participating Jurisdictions of the Project, to which the funds of the credit are allocated.

ARTICLE 5o.- Consider the CENTRAL EXECUTOR UNITY (UEC) of the SECTOR HEALTH REFORM PROJECT within the framework of the Loan Agreement to subscribe, which will be responsible for the implementation of the project.

ARTICLE 6o.- The Monitoring and Management of the Project will be carried out by the MINISTERY OF HEALTH and SOCIAL ACTION, through the SECRETARIAT OF HEALTH POLITICES AND SANITARIAN REGULATION, to which the CENTRAL EXECUTIVE UNITY (UEC) will depend. The Secretary for Health Policy and Sanitary Regulation will serve as National Project Director.

ARTICLE 7o.- Please refer to the Ministry of Health and Social Action to hire an Executive Coordinator and a Subcoordinator as responsible for the administration and operational coordination of the CENTRAL EXECUTOR UNITY (UEC) of the SALUD SECTOR REFORM PROJECT.

ARTICLE 8o. Please refer to the Secretary of Health Policy and Sanitary Regulation of the MINISTERY OF HEALTH and SOCIAL ACTION to celebrate by himself or to delegate its realization in the CENTRAL EXECUTOR UNITY, contracts of construction and services with third parties, without dependency, as well as to acquire the movable goods and equipment that were necessary for the execution of the Project, subject to the respective contracts in accordance with the Regulations and procedures contained in the Decree.

9th Article. - Contact, post, give to the National Directorate of the Official Register and archvese.- MENEM.- Eduardo Bauzá.- Alberto J. Mazza.- Carlos V. Corach.- Domingo F. Cavallo.

NOTE: This Decree is published without Annexes.