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                                         September 28, 1989
Lic.  Fernando del Villar Moreno
Director General
Banco Nacional de Obras y Servicios Publicos, S.N.C.
Insurgentes Norte 423, Piso 22
Mexico, D.F., Mexico
Lic.  Carlos Ruiz Sacristan
Director General de Credito Publico
Secretaria de Hacienda y Credito Publico
Palacio Nacional, Edificio,10, P.B.
Mexico, D.F., Mexico
Dear Sirs:
           Re:  Loan  No.  2875-ME
                Highway Maintenance Project Amendment
 Please refer to the Loan Agreement for Loan No. 2875-ME (Highway
Maintenance Project) between the International Bank for Reconstruction and
Development (the Bank) and Banco Nacional de Obras y Servicios Publicos,
S.A. (the Borrower) and to the Guarantee Agreement for the same Loan between
the United Mexican States and the Bank, both dated November 4, 1987.  We
also refer to the July 31, 1989 letter from the Borrower requesting an
increase of the loan disbursement rate for civil works categories
   We are pleased to inform you that the Bank agrees to increase the rate
of disbursement of loan funds to 6O% of the cost of civil works under Parts
A and C of the project, incurred on or before December 31, 1991 and 3O%
thereafter.  We propose, therefore, to amend the Loan Agreement as follows:
   Categories (1), (2) and 1:3) of Schedule 1 are deleted and the following
is substituted therefore
                        Amount of the
                       Loan Allocated           % of
                        (Expressed in        Expenditures to
      Category       Dollar Equivalent)     be Financed
(1)   Civil works             60,400,000     6O% until Dec. 31, 1991
      under Part                             and 3O% thereafter
      A1 of the
      Project
(2)   Civil works             9,750,000      6O% until Dec. 31, 1991
      under                                  and 30% thereafter
      Part
      A2 of the
      Project
(3)   Civil works             1,900,000      60% until Dec. 31, 1991
      under Part C of the                    and 3O% thereafter
      Project
      As the authorized representatives of the Guarantor and the
Borrower, please confirm your agreement to the foregoing amendment by
signing and dating the duplicate original of this letter enclosed
herewith and returning the same to us.  This amendment will be effective
as of the date of this letter upon receipt by the Bank of the
countersigned copy.
                              Sincerely,
                        INTERNATIONAL BANK FOR
                     RECONSTRUCTION AND DEVELOPMENT
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                       By /s/ Rainer B. Steckhna
                               Director
                             Department II
                Latin America and the Caribbean Region
CONFIRMED:                          CONFIRMED:
UNITED MEXICAN STATES         BANCO NACIONAL DE OBRAS Y
                                    SERVICIOS PUBLICOS, S.N.C.
By /s/ Antonio Cervera S.     By /s/ German Sandoval Faz
       Director                   Subdirector de Organismos
Financieros Operaciones           Internacionales y de Tesoreria
Date: October 11, 1989        Date: October 11, 1989