THE WORLD BANK Bouchard 547, 29th floor Tel.: (54-11) 4316-9700 / 44 ' I WORLD BANK GROUP C1106ABG Fax: (54-11)4313-1233 Latin America & tho Caribbean Ciudad Aut6noma de Buenos Aires Argentine Republic Buenos Aires, August 7, 2024 Mr. Luis Caputo Minister of Economy Ministry of Economy Av. Hipolito Yrigoyen 250 C1086AAB Buenos Aires Argentine Republic Ref: ARGENTINA: Loan No. 9337-AR (Promoting Better Jobs through Integrated Labor and Skills Program - Fomentar Mejores Empleos con Programas lntegrados de Formulaci6n y Empleo) Amendment No. 1 to the Loan Agreement Dear Minister: We refer to the Loan Agreement between the Argentine Republic ("Borrower") and the International Bank for Reconstruction and Development ("Bank") dated May 16, 2022, for the Promoting Better Jobs through Integrated Labor and Skills Project ("Project"). Please note that capitalized terms used in this letter ("Amendment Letter") and not defined herein have the meaning ascribed to them in the Loan Agreement. We also refer to your letter NO-2024-76860828-APN-DNFOIC#MEC and the letter from the Secretaria de Trabajo, Empleo y Seguridad Social NO-2024-76771123-APN- DGPYPSYE#MT, both dated July 22, 2024, requesting to amend the Project. I am pleased to inform you that the Bank has acceded to said requests and proposes to amend the Loan Agreement as follows: I. Section 2.02. of the Loan Agreement is hereby amended to read in its entirety as follows: " 2.02. The Borrower may withdraw the proceeds of the Loan in accordance with Section III of Schedule 2 to this Agreement. The Borrower's Representative for the pwposes of taking any action required or permitted to be taken pursuant to this Section is any one of the following: (a) the Minister of Economy; (b) the Secretary for International Economic and Financial Affairs; (c) the Undersecretary of International Financial Relations for Development; or (d) the National Director of Financing with International Credit Organizations, the latter three of whom all repo1t to the Minister of Economy." 2. Section 3.01 of the Loan Agreement is hereby amended to read in its entirety as follows: 3 (b) the Bank's Electronic Address is: Telex: Facsimile: E-mail: 248423(MCI) or 1-202-477-6391 mfay@worldbank.org 5. Part 2 of Schedule I to the Loan Agreement is hereby amended to read in its entirety as follows: "Part 2: Stipends to Promote Participation in Selected ALMPs Increase labor market inse1tion through: 2.1. the financing of Stipends to Eligible Pmticipants of the Fomentar Program, including orientation and professional training and on-the-job Training activities; and 2.2. the financing of Stipends to Eligible Paiticipants of the Volver al Trabajo Program, including orientation and professional training and on-the-job Training activities; all in accordance with the criteria, te1ms, and conditions acceptable to the Bank and set fo1th in the Operational Manual." 6. Schedule 2 to the Loan Agreement is hereby amended to read in its entirety as follows: "SCHEDULE 2 Project Execution Section I. Implementation Arrangements A. Institutional Arrangements. The Borrower, shall, through MCH, maintain for purpose of the implementation, monitoring and supervision of the Project a structure, functions and responsibilities, and staffing acceptable to the Bank, including fiduciary, administrative and technical personnel, and social and environmental specialists, all with qualifications, experience and terms of employment, as set forth in the Operational Manual. B. Operational Manual. I. The Borrower shall, through MCH, carry out the Project in accordance with a manual (the "Operational Manual"), acceptable to the Bank, which shall include, inter alia: (a) the budgeting, accounting, auditing, reporting, financial, procurement and disbursement procedures of the Project; 5 substance acceptable to the Bank, setting out, inter alia: (i) the status of implementation of the ESCP; (ii) conditions, if any, which interfere or threaten to interfere with the implementation of the ESCP; and (iii) corrective and preventive measures taken or required to be taken to address such conditions; and (b) the Bank is promptly notified of any incident or accident related to or having an impact on the Project which has, or is likely to have, a significant adverse effect on the environment, the affected communities, the public or workers, in accordance with the ESCP, the environmental and social instruments referenced therein and the Environmental and Social Standards. 5. The Bo1mwer, through MCH, shall establish, publicize, maintain and operate an accessible grievance mechanism, to receive and facilitate resolution of concerns and grievances of Project-affected people, and take all measures necessary and appropriate to resolve, or facilitate the resolution of, such concerns and grievances, in a manner acceptable to the Banlc. Section II. Project Monitoring Reporting and Evaluation The Borrower, through MCH, shall furnish to the Bank each Project Report not later than forty-five (45) days after the end of each calendar semester, covering the calendar semester. Section III. Withdrawal of Loan Proceeds A. General. Without limitation upon the provisions of Aiticle II of the General Conditions and in accordance with the Disbursement and Financial Infonnation Letter, the Borrower may withdraw the proceeds of the Loan to: (a) finance Eligible Expenditures; and (b) pay: (i) the Front-end Fee; and (ii) each Interest Rate Cap or Interest Rate Collar premium; in the amount allocated and, if applicable, up to the percentage set forth against each Category of the following table: Category Amount of the Percentage of Expenditures to Loan Allocated be financed (%) (expressed in (inclusive of Taxes, except for US$) taxes and fees levied by financial transactions) (!) Training Fees under Pait I.I of the Project 15,000,000 100% (2) Stipends under Pait 2.1 137,500,000 100% of the Proiect 7 earning capacity, including orientation, job search assistance services, training, and on-the-job training. "Eligible Participant" means any person that complies with the criteria under the Fomentar Program and the Volver al Trabajo Program, as applicable, and is eligible to receive Stipends under Part 2 of the Project, and "Eligible Participants" means more than one Eligible Pariicipant; as said criteria is further detailed in the Operational Manual, as it may be updated from time to time subject to the prior approval by the Bank in writing and thereafter incorporated into the Operational Manual. "Employment Portal" means the Borrower's digital platform that through MCH facilitates access to ALMPs and employment opportunities for the Target Population, as well as provides relevant information and job-matching services to employers and other job-seekers. "Enviromnental and Social Commitment Plan" or "ESCP" means the enviromnental and social commitment plan for the Project, dated January 20, 2022, as the same may be amended from time to time in accordance with the provisions thereof, which sets out the material measures and actions that the Borrower, through MCH, shall carry out or cause to be carried out to address the potential enviromnental and social risks and impacts of the Project, including the timefrarnes of the actions and measures, institutional, staffing, training, monitoring and rep01iing arrangements, and any enviromnental and social instruments to be prepared thereunder. "Fomentar Program" means "Fomentar Empleo", the Borrower's labor mar·ket program created by the Fomentar Resolution, implemented by MCH and which targets the population between 18 and 64 year·s of age, and provides an integrated approach by consolidating a set of interventions in labor orientation services, training and on-the-job training, and supp01i for finding employment. "OEM" means Oficina de Empleo Municipal, the Municipal Employment Offices established by a municipality, and part of the network of employment and training services of the MCH. "Operating Costs" means reasonable recurrent expenditures (none of which would have been incun-ed absent the Project), incurred by the Bon-ower, through MCH, for the implementation, coordination and supervision of the Project, including, inter alia, travel costs (i.e. accommodation, transportation and per-diem); operation and maintenance of office equipment; vehicle rental, operation, insurance and maintenance costs; rental of offices; utilities; non-durable and/or consumable office materials; banking fees; communication, printing and publications. "Operational Manual" means the Borrower's manual dated January 20, 2022, prepared by MCH, and referred to in Section LB of Schedule 2 to this Agreement, as the same may be amended from time to time with the prior written approval of the Bank. 9 "Volver al Trabajo Legislation" means the Decree N° 198/2024 dated February 27, 2024, and published in the Boffower's Official Gazette on February 28, 2024, and MCH's Resolution 84/24 dated April 9, 2024." 9. The following definition in the current paragraph 14 of Section I of the Appendix to the Loan Agreement is hereby eliminated in its entirety and the subsequent definitions are renumbered accordingly: "MTESS" means Ministerio de Trabajo, Empleo y Seguridad Social, the Borrower's Ministry of Labor, Employment and Social Security or its successor. All other terms and conditions of the Loan Agreement that have not been amended hereby shall remain unchanged and in full force and effect. Please confirm your agreement with the foregoing amendment on behalf of the Borrower by signing and dating this Amendment Letter in the spaces provided below. The provisions set forth in this Amendment Letter shall become effective as of May 1, 2024, upon the Bank's confirmation of receipt of the adoption of the updated Operational Manual in a manner and with contents acceptable to the Bank. Finally, please also note that the relevant Restructuring Paper RES00l 90, will be disclosed on the Bank's external website as per the Bank's Policy on Access to Information. Very truly yours, INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Argentin , Paraguay, and Uruguay Latin America and the Caribbean Region By: Name: MtrTl!r.5 /Ji 4,U,4 - - - - ~ - - -- -- Title: uru ~e.scc &T4~Y o -t . W+E~l\no,'4~L nAt*AJ,">ltL £8.lfno'4S Date: OCTD<;Ef.. q > '20 Llf ,