OFFICIAL Le M94 DOCUMENTS Bouchard 547, 29th floor Tel.: (54-11) 4316-9700 44 MW DA I u.mamwAw C1106ABG Fax: (54-11) 4313-1233 Ciudad Aut6noma de Buenos Aires Llhowk" & W a s Argentine Republic August 3, 2016 Mr. Alfonso Prat-Gay Minister of Public Finances Ministry of Public Finances Hip6lito Yrigoyen 250 1310 Buenos Aires, Argentina Dear Minister, Re: ARGENTINA: Loan No. 7597-AR (Second Provincial Agricultural Development Project) - Amendment to the Loan Agreement We refer to the Loan Agreement between the International Bank for Reconstruction and Development (the "Bank") and the Argentine Republic dated March 27, 2009, as amended. In response to the letter DNPOIC No. 806 dated August 1, 2016 requesting: (i) an extension of the Closing Date; (ii) a reallocation of loan proceeds among disbursement Categories of Eligible Expenditures; and (iii) an increase in the percentage of disbursement for Categories 2 (a), 2 (b) and 2 (d), I am pleased to inform you that the International Bank for Reconstruction and Development (the Bank) concurs with such request and has agreed to amend the Loan Agreement as follows: (i) Closing Date: March 15, 2017 is established as the later date for purposes of Schedule 2, Section IV.B.2 of the Loan Agreement. (ii) Reallocation of Proceeds: The proceeds of the Loan are reallocated among the different Categories of Eligible Expenditures as presented in the table in Section IV.A.2 of Schedule 2 of the Loan Agreement, attached to this letter. (iii) Changes in the percentage of Eligible Expenditures to be financed under Category 2 (a) (Goods and Non-Consultant Services under National Subprojects); 2 (b) (Goods and Non-Consultant Services under Provincial Subprojects); and 2 (d) (Goods and Non-Consultant Services under Parts 1 and 3 of the Project). The percentage to be financed under these categories is hereby increased to "up to 100%", as presented in the table in Section IV.A.2 of Schedule 2 of the Loan Agreement, attached to this letter. -2- Additionally, any reference to "Ministerio de Agricultura, Ganaderiay Pesca" or "MAGyP" in the Loan Agreement is hereby replaced with the term "Ministerio de Agroindustria" or "MAI" and the definition of"MAGyP" in the Appendix to the Loan Agreement is amended in its entirety to read as follows: "MAI" means Ministerio de Agroindustria, the Borrower's Ministry of Agroindustry, or any successor thereto, acceptable to the Bank". All other provisions of the Loan Agreement, except as amended herein, shall remain in full force and effect. Please confirm your agreement with the foregoing, on behalf of the Borrower, by signing and dating two originals of this Amendment Letter and returning one fully signed original to us. The provisions of this Amendment Letter will become effective as of the date above-mentioned, upon receipt by the Bank of one fully executed original of this Amendment Letter. Please also note that the restructuring paper dated August 1, 2016 will be disclosed on the Bank's external website. Very truly yours, INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT By_ Jesk Ventschel irector Argentina, Paraguay and Uruguay Latin America and the Caribbean Region AGREED AND CONFIRMED: ARGENTINE REgUBLIC By: (Authorized Represen ALFONSO PRAT- GAY Name: Ministro de Hacienda y Finanzas Pubicas Title: Date: 30/9/16 Acuerdo No 43 iyFP -3- Cc: Mr. Ricardo Buryaile, Minister of Agroindustry Mr. Roberto Daniel Pierini, Alternate Executive Director for Argentina, the World Bank Mr. Felix Martin Soto, Undersecretary of International Financial Relations, Ministry of Treasury and Public Finances Ms. Natalia Zang, Undersecretary of Evaluation of Projects with International Financing, Chief of Cabinet Office Ms. Silvia Mucci, Director of Projects with International Financial Organizations, Ministry of Treasury and Public Finances Mr. Alejandro Gennari, Executive Coordinator, UCAR -4- Attachment I Category Amount of the Loan Percentage of Allocated Expenditures to be (expressed in USD) Financed (1) Works (a) under National 8,600,000 80% Subprojects (b) under Provincial 202,147,000 Up to 100% Subprojects (c) under On-Farm/Off- 3,450,000 100% of amounts disbursed Farm Subprojects under the pertinent Farmer Grant (d) under Part 3 (a) (i) of 0 80% the Project (2) Goods and Non- Consultant Services (a) under National 1,576,000 Up to 100% Subprojects (b) under Provincial 8,650,000 Up to 100% Subprojects (c) under On-Farm/Off- 12,844,000 100% of amounts disbursed Farm Subprojects under the pertinent Farmer Grant (d) under Parts 1 and 3 4,817,000 Up to 100% of the Project (3) Consultants' services (a) under National 5,895,000 100% Subprojects (b) under Provincial 13,233,000 100% Subprojects (c) under On-Farm/Off- 331,000 100% of amounts disbursed Farm Subprojects under the pertinent Farmer Grant (d) under Parts 1 and 3 30,708,000 100% of the Project -5- Category Amount of the Loan Percentage of Allocated Expenditures to be (expressed in USD) Financed (4) Training (a) under National 1,544,000 100% Subprojects (b) under Provincial 250,000 100% Subprojects (c) under Part 3 of the 2,950,000 100% Project (5) Operating Costs (a) under National 32,000 50% Subprojects (b) under Provincial 23,000 50% Subprojects 2,200,000 50% (c) under Parts 1 and 3 of the Project (6) Unallocated 0 (7) Front-end Fee 750,000 Amount payable pursuant to Section 2.03 of this Agreement in accordance with Section 2.07 (b) of the General Conditions (8) Premia for Interest 0 Amounts payable pursuant Rate to Section 2.07 (c) of this Caps and Interest Agreement Collars TOTAL AMOUNT 300,000,000