Document of

The World Bank

FOR OFFICIAL USE ONLY

Report No. P-6660-AR

MEMORANDUM AND RECOMMENDATION

OF THE

PRESIDENT OF THE

INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT

TO THE

EXECUTIVE DIRECTORS

ON A

PROPOSED LOAN

IN AN AMOUNT EQUIVALENT TO US$16 MILLION

TO

THE ARGENTINE REPUBLIC

FOR A

PUBLIC INVESTMENT STRENGTHENING TECHNICAL ASSISTANCE PROJECT

OCTOBER 30, 1995

This document has a restricted distribution and may be used by recipients only in the performance oftheir official duties. Its contents may not otherwise be disclosed without World Bank authorization.

CURRENCY EOUIVALENTSCurrency Unit = Peso

US$1.00 =Peso$1 as of October 1st, 1995

FISCAL YEAR

January 1 to December 31

GLOSSARY OF ABBREVIATIONS

AO = Administrative OfficerBAPIN = National Investment Project Data BankCC Component CoordinatorDNIP = Direcci6n Nacional de Inversi6n Publica y Financiamiento de Proyectos

(National Directorate for Public Investment and Project Financing)EA = Environmental AssessmentGAEP = Budget Preparation Support GroupGOA = Government of ArgentinaICB = International Competitive BiddingICR = Implementation Completion ReportIDB = Inter-American Development BankIERR = Intemal Economic Rate of ReturnLIB = Limited International BiddingME = Ministry of EconomyNCB = National Competitive BiddingNGO = Non-Governmental OrganizationNPD = National Project DirectorNPIP = National Public Investment PlanOECD = Organization for Economic Cooperation and DevelopmentPAU Project Administration UnitPCU = Project Coordination UnitPIP Public Investment PlanPPS = Process and Procurement SupervisorPPU = Project Preparation UnitQA Quality AssuranceSAGyP = Secretariat of Agriculture, Livestock and FisheriesSEP = Secretariat of Economic ProgrammingSIDIF = Argentina's Integrated Financial Information SystemSIGADE = UNCTAD-developed Debt Management SystemSNIP = Sistema Nacional de Inversi6n Puiblica (National Public Investment System)SOE = Statement of ExpendituresSRNyAH = Secretariat of Natural Resources and Human EnvironmentUNCTAD = United Nations Conference on Trade and DevelopmentUN/OPS = United Nations Office of Project Services

FOR OFFICLAL USE ONLY

ARGENTINA

PUBLIC INVESTMENT STRENGTHENING TECHNICAL ASSISTANCE LOAN

TABLE OF CONTENTS

Page No.

Loan and Project Summary i

The Proposed LoanBackground 1Project Objectives 3Project Description 3Project Financing 5Project Implementation 5Project Sustainability 5Lessons Leamed 6Rationale for Bank Involvement 6Agreed Actions 7Environmental Assessment 7Program Objective Categories 7Participatory Approach 7Project Benefits 8Project Risks 8Schedules A-D 9-13

Technical AnnexSection A: Detailed Project Description

Project Background 14The National System for Public Investment and National Budget Formulation 26Project Objectives and Description 34

Section B: Project Administration and Implementation 47Section C: Selected Documents and Data Available in Project File 59

Technical SupplementDraft Terms of Reference for the Project Administration Unit 60Draft Terms of Reference for Environmental Studies 64Draft Terms of Reference for Natural Resource Studies 78Draft Terms of Reference for Infrastructure Studies 85

This Report is based on work carried out bythe Ministry of Economy in Argenina and missions in December 1994 and June 1995 caried out byMr. Luis-Jos6 Mejia (rask Manager, LA I PS) and Carmen-Gloria ravo (Consultant [a A PS). Mmes. Nicole Klein (AFIcB) and Katrina Sharkey(EDIDM) acted as Peer Reviewess. Mr. Paul Meo is the Sector Division Chief (LAlPS), Mr. Gobind T. Nankani is the Department Director ([-Al)and Mr. Orville OCimes (AlDR) is the Projects Advisor.

This document has a restricted distibution and may be used by recipients only in the performance of their| official duties. Its contents may not otherwise be disclosed wiLhout World Bank authorization. l

i

ARGENTINA

PUBLIC INVESTMENT STRENGTHENING TECINICAL ASSISTANCE PROJECT

LOAN AND PROJECT SUMMARY

Borrower: The Argentine Republic.

Implementing Agency: Secretariat of Economic Programming (SEP) in the Ministry ofEconomy (ME).

Beneficiaries: The National Directorate of Public Investment and InternationalProjects (DNIP) in SEP and the project preparation units of 43Central Government Ministries and Agencies.

Povertv Not applicable.

Amount: US$16 million equivalent.

Terms: Fifteen years, including five years of grace, at the Bank's standardvariable interest rate.

Commitment Fee: 0.75% on undisbursed loan balances, beginning 60 days aftersigning, less any waiver.

Onlending Terms: Not applicable.

Financing Plan: See Schedule A.

Net Present Value: Not applicable.

Project Identification AR-PA-37049Number:

MEMORANDUM AND RECOMMENDATION OF THE PRESIDENTOF THE EBRD TO THE EXECUTIVE DIRECTORS

ON A PROPOSED LOAN TO THE ARGENTINE REPUBLICFOR A

PUBLIC lNVESTMENT STRENGTHENING TECHNICAL ASSISTANCE PROJECT

1. I submit for your approval the following memorandum and recommendation on aproposed loan to the Argentine Republic for the equivalent of US$16 million to help finance aproject for Public Investment Strengthening. The loan would be at the Bank's standard variableinterest rate, with a maturity of 15 years, including five years of grace.

2. Background. Argentina is a country which has suffered from a prolonged politicaland economic decline with a concomitant deterioration of its public institutions. When thepresent Administration took office in July 1989, Argentina was in the throes of recession andmonthly inflation of up to 200 percent, labor productivity had fallen, social services and basicinfrastructure had deteriorated, and poverty had become a serious and growing problem. Thenew Administration addressed these problems with a series of profound structural reforms,which included decentralizing large portions of the economy (privatization of nearly all publicenterprises at the national level and transfers to the Provinces of a large number of functions,especially in the areas of health and education), a 15% reduction in federal employment(excluding privatizations and transfers), and strengthening of key institutions, in all of whichthe Bank has played an important supportive role.

3. The deterioration of the state resulted, among other impacts, in the completebreakdown of the budgetary process. In the absence of the planning framework given by aproperly formulated budget, control and evaluation of expenditures has been very weak. In acomplex series of efforts, the Government of Argentina has addressed these issues withresolve, and as a result, the National Budget has now been prepared on time three years in arow, and the first tri-annual National Public Investment Plan will be presented to Congressthis year, after many years' absence. The new Integrated Financial Information System(SIDIF) collects and consolidates all information on expenditures by the national government.As of July 1995, the use of a single account for the Treasury permits more efficientmanagement of public monies, until then held in more than 4000 separate Bank accounts. Anew debt management system (SIGADE, developed by UNCTAD) is in operation in thePublic Credit Directorate at the ME. As a result, detailed accounting and budgetinginformation can now be produced in a timely fashion. In addition, a modern AuditorGeneral's Office has been created and ex-ante control eliminated with a consequent increasein efficiency and transparency. With the control of expenditures significantly improved in thisway, the next area which needs to be addressed is the efficiency and effectiveness ofexpenditures.

2

4. Argentinean public expenditures are roughly divided into two categories:operational expenditures (US$32 billion) 1, and investment expenditures (US$8 billion). Thelatter is, in turn, divided into physical investment (US$4 billion) and an additional US$4 billionof associated expenditures (e.g., planning and training), including projects cofmanced with theprovinces and municipalities. The Government proposes addressing the problem of theefficiency and effectiveness in investment through training in project analysis and evaluationwhich would create a culture of evaluation by results and impact to replace earliermeasurements by cost incurred. The Government strategy is to concentrate initially on realcapital investment (through the proposed project) and social investment (through the SocialProtection Project, in preparation, in cooperation with the proposed project). The results ofthese efforts would be expanded to the provincial governments (Second ProvincialDevelopment Project, 3877-AR). At a later stage it could be envisaged to expand results toother areas of public expenditure.

5. The Government's investment strategy has altered considerably. The change in therole of the State from production to regulation has resulted in large-scale privatization of state-owned enterprises and a considerable decrease in public investment requirements. Nevertheless,significant investment remains: the Govemment's investment program for 1995-19992amounts to approximately US$86.8 billion, including national, provincial and municipalgovernments as well as privatized and public enterprises. Of this amount, US$6 billion aredirect national government investments, and US$18 billion are national investments throughtransfers and loans.

6. The investment programming mechanism has never been strong in Argentina.Information on the status of a sample of investment projects in the present pipeline has revealedthat no more than 10% of those projects could provide a detailed feasibility study to justify theproject and its design. Poor project preparation has resulted in a weak track record in obtainingextemal financing, and substantial variation in the speed of project implementation, which insome cases is as low as 14% of planned execution. Weak identification mechanisms, poorphysical and financial monitoring of execution, little if any consideration of environmentalissues and no evaluation of results or impact characterize public investment today.

7. In 1993, to address these weaknesses, the Govemment created the NationalDirectorate for Public Investment and Project Financing (DNIP) within the Secretariat ofEconomic Programming (SEP) in the Ministry of Economy. In August 1994 the NationalSystem for Public Investment (SNIP) law was approved by Congress3. This law assigns toDNIP the responsibility for putting together, with sectoral agencies, the tri-annual NationalPublic Investment Plan (the first year of which coincides with the Budget). These duties

1 1994 budget

2 Argentina en Crecimiento, 1995-1999, Ministerio de Economia y Obras y Servicios PNblicos, ArgentinaLaw 24453

3

include ensuring the quality of national and nationally-cofinanced real capital investment (bothex-ante and ex-post), setting norms for project analysis and evaluation, maintaining an up-to-date inventory of investment projects, identifying projects of national interest, assisting in theirpreparation and helping find extemal financing. The responsibility for project identification,preparation and evaluation remains with the investment agencies. This decentralization ofresponsibility to the sectoral agencies is an important step away from the old paradigm of thecentral planning ministry. Physical and financial monitoring of execution is being addressed bythe Secretariat of Finance in the same Ministry, through the Integrated Financial InformationSystem (see para. 3).

8. For the National Public Investment System to function effectively, four areas needto be addressed: (a) the lack of public and private sector awareness of the importance ofevaluation of results and impact as a measure of the effectiveness and efficiency ofexpenditures; (b) training of selected management and staff in sectoral agencies in projectidentification, analysis and preparation as well as the use of evaluation; (c) the lack of broadnational strategies in selected sectors; and (d) the relative lack of experience, given its recentcreation, of the central unit (DNIP) in guiding a process of this nature.

9. Project Objectives. The project aims to enhance the effectiveness and efficiency ofthe government's public expenditure management by improving its investment process,strengthening its project analysis capabilities and building up the project and programevaluation capacity in Argentina. These goals would be achieved by: (i) building theownership/commitment of senior government officials to the application of good practice in theformulation and implementation of strategic investment decision-making; (ii) building asustainable decentralized capacity to identify, prepare, select and evaluate investment by centralgovernment agencies; (iii) carrying out basic studies in support of public investment strategiesin priority sectors; and (iv) supporting DNIP in the implementation of the National InvestmentPlan System (SNIP).

10. Project Description. The project would be implemented over a five-year periodstarting in late 1995, and would finance high level workshops, training programs, technicalassistance and some equipment through five components, as follows (see Technical Annex formore details):

Sectoral Investment Decision Making (US$1.2 million, or 5% of total projectcost). Actions would take the form of Senior Policy Interventions, a series ofhigh-level seminars with the objective of familiarizing decision-makers with bestpractice in the areas of public investment and public expenditure managementfrom selected OECD countries and the concepts of public expenditure efficiencyand investment evaluation launched through the National Public InvestmentSystem; and High Level Workshops, directed at senior officials/decision makers,journalists as well as individuals and firms from the private sector.

4

Improvement of Agencies' Project Analysis and Evaluation Capacity (US$7.6million, or 30% of total project cost). The objective of the component is to enhancethe effectiveness and sustainability of public investment and to create a culture ofanalysis and evaluation of investments and public expenditures through training andtechnical assistance to up to 100 national government investment agencies. Itconsists of: (1) Main Capacity Strengthening Courses, in-depth courses ininvestment decision-making (including environmental considerations), projectmanagement, procurement and project cycle implementation, aimed at middle-management and personnel of the investment agencies as well as individuals fromthe private sector. These courses would be offered by a team composed of fourinternational facilitators/trainers and four trainers from a local training institute;(2) Technical assistance to investment agencies in the application of projectanalysis techniques learned. This subcomponent consists of assistance to theagencies in the preparation of at least one project following approved guidelines,preparation of an annual investment plan, and preparation of a five-yearinvestment program; and (3) technical assistance to investment agencies in theapplication of impact evaluation techniques through the analysis of selectedexisting projects. This subcomponent consists of approximately 30 evaluations.

* Basic Studies in Support of Sectoral Investment Strategies (US$8.6 million, or35 % of total project cost), leading to project identification and the preparation ofsectoral strategies for selected agencies. These strategies would improve thequality of investment by improving prioritization of efforts on a country-widebasis. Indicative terms of reference for the environment, natural resources andinfrastructure sectors have been prepared (see Technical Supplement) by thecorresponding agencies in Argentina with assistance from the appropriate Banksectoral divisions, who will supervise their implementation.

* Support to the Preparation of the National Public Investment Plan (US$2.7million, or 11% of total project cost). The quality of the National Public InvestmentPlan (NPIP) directly depends on quality at entry, and therefore the bulk of thestrengthening effort is addressed to the investment agencies. Nevertheless,strengthening of DNIP is required for this Directorate to put together the NPIP. Tothis effect, DNIP will receive technical assistance in the preparation and applicationof policy and project analysis methodologies and on-the-job training to preparemedium-term expenditure and investment frameworks. In addition, this project willhelp disseminate the SNIP Law and its application, notably through the setting upof a help-desk for telephone assistance.

* Project Administration (US$2.5 million, or 10% of total project cost), consistingof project administration, office equipment, yearly extemal audits and an agreementwith a procurement agency for procurement and administration services. Price

DV1 V ILL, pUI .U 1 9 .3 VVJLISJl flJ>s II VV LI l '

5

contingencies constitute an unallocated amount of US$2.3 million (9% of totalproject costs). No physical contingencies are contemplated, because the scope ofall major studies and consultancies has already been well defined and is notexpected to change significantly.

11. Project Financing. Total project costs are estimated at US$25 million. A Bank loanof US$16 million (64% of total project costs) is proposed. The government would providecounterpart funding of US$9 million (36% of total project costs), which would cover all taxesand duties, equipment maintenance and office rental, as well as portions of project activities.

12. Project Implementation. The Executing Agency will be the NationalDirectorate of Public Investment and Project Financing (DNIP) in the Secretariat ofEconomic Programming (SEP) in the Ministry of Economy (ME). DNIP's Head will bethe National Project Director (NPD), who will ensure that the project is implementedaccording to plan. The NPD will be assisted by a Project Administration Unit staffed withDNTP personnel and consultants, and responsible for project processing, administrationand accounting.

13. The completion date for the project would be December 31, 2000 and the closingdate June 30, 2001. Procurement of goods and consulting services would be carried out in amanner consistent with Bank Guidelines (see Technical Annex). An Administrative Manual,detailing steps to be followed in implementing and monitoring the project, would be preparedby DNIP, discussed during negotiations and finalized before effectiveness. The government isconsidering entering into an agreement with a UN agency for administration and procurementservices; procedures would follow the guidelines described in the Administrative Manual. Theuse of an independent auditor was agreed at negotiations.

14. . Project Sustainability. Commitment of the Government to a transparent andefficient public investment system is shown by the approval of the SNIP Law in August 1994,which defines the public sector's responsibilities in public investment. The accessibility forconsultation by both govemment and Congress to the project data bank and the quarterlypresentation to Congress increases the transparency of the process. To ensure the sustainabilityof the public investment system, training will continue to be provided after the end of theproject. To this effect, cost-recovery measures will be introduced during the project.

15. Lessons learned from Previous Bank Involvement. Previous efforts by the Bank(and IDB) in other countries indicate that public investment strengthening efforts were notfully successful because relevant literature4 shows: (i) these efforts were directed at creating

The Reform of Public Sector Management: Lessons from Experience, Policy and Research Series; Uganda:Managing Public Expenditure (10512-UG), June 1992; Ecuador: PER - Changing the Role of the State, June1992; others.

6

central planning ministries operating under a protective state umbrella; strengthening of thecentral units usually precluded strengthening of the sectoral agencies; (ii) the efforts lackedscope. and were inadequate in size as they were carried out through limited components withinlarger projects; (iii) there was no strategic framework integrating public investment in thebroader scheme of public expenditure management and efforts were carried out in isolationfrom mainstream resource allocation activities; and (iv) results of strengthening efforts werenot institutionalized. The above lessons have been taken into consideration as follows: (i) theinvestment system is decentralized, and the bulk of the effort is directed towards strengtheningsectoral agencies; (ii) the proposed project is a stand-alone one; (iii) public investment willform part of the budget preparation annual exercise within the framework of the SNIP andFinancial Administration Laws in Argentina; and (iv) all activities are line with DNIP's basicfunctions, and it will therefore be implemented by DNIP's management and staff, withminimal assistance from long-term consultants.

16. Rationale for Bank Involvement. This project is fully consistent with the CountryAssistance Strategy presented to the Board on May 4, 1995' with the Provincial BankPrivatization Project (Ln. 3878-AR), which focuses on: (i) consolidating structural reforms; (ii)reducing poverty and developing human resources; and (iii) rebuilding infrastructure. Thisproject will contribute towards the first objective by improving fiscal management through amore efficient use of scarce budgetary resources. The project will also help improve theeffectiveness of public investments which are complementary to private sector development.The project will complement other Bank projects in the Public Sector Management area, whichhave focused on strengthening greatly weakened institutions, in central, provincial andmunicipal governments, with special emphasis on revenue-generating or expenditure-controlling institutions. It is a first crucial step for improving the efficiency of the use of generalpublic investment in Argentina. It is also complemented by the Social Protection Project (inpreparation) which addresses the need to monitor social programs, and by the SecondProvincial Development Project (3877-AR) which addresses the need to strengthen publicinvestment units in provincial governments. With public investment expected to grow from itsdepressed levels, while being concentrated on fewer activities, it is critical to improve thegovernment's institutional capacity to produce high quality project analysis, management andevaluation6 . The project would strengthen the agencies involved in the public investmentprocess through training and consulting assistance. The studies financed are in priority sectors(Environment, Infrastructure, Natural Resources), and will help compensate for the expecteddecline of formal Bank Economic and Sector Work in the next several years.

17. Agreed Actions: One of the conditions for effective implementation of the project,that the regulations for implementing the Public Investment Law (SNIP) be approved, was

Country Assistance Strategy of the World Bank for the Argentine Republic, April 10, 1995.6Evaluation Capacity Development Report of the Task Force, July 5, 1994.

7

fulfilled on May 22, 1995. At Negotiations, agreements were reached with the Government onthe following: (i) use of the Special Account and Statement of Expenditures; terms andconditions, accounting and auditing procedures; (ii) annual audit of the project special accountby auditors acceptable to the Bank, and submission of the audit statement to the Bank no laterthan June 30 each year; (iii) the carrying out of the Project Implementation Plan in a timelyfashion; (iv) provision by Project Administrator of semiannual project implementation reportsin December and June each year including measure of quantitative and qualitative objectivesachieved, and review and updating of project implementation schedules; and (v) preparationby the ME within six months of project completion, of an Implementation Completion Report(ICR) to assess the success of the project. In addition, a draft Administrative Manual wasprepared.

18. As Conditions of Effectiveness, (i) The project's Administrative Manual,detailing administrative procedures and defining reports to be used by staff and the Bank forproject supervision would be completed and agreed with the Bank; and (ii) the ProjectAdministrator would be hired.

19. Environmental Assessment. This project finances technical assistance in the area ofstrategic decision-making and studies that will be key precursors to future infrastructureinvestments. For that reason, the project is classified as category "B" and includes provisions toensure that environmental analysis is incorporated where appropriate.

20. Program Objective Categories. The primary category is Public Sector Management(PB).

21. Participatory Approach. Terms of reference for all studies identified have beenprepared by the corresponding sectoral entities and are presented in the Technical Supplement.The project is heavily oriented towards the decentralized investment units (activities totaling73% of total project costs are aimed at these units). Provincial and municipal governments,although not directly targeted or financed under this project, will be encouraged to join thePublic Investment System, by sending staff to the same training, using the same methodologiesas central government staff, and providing information to the central databank BAPIN. Severalprovinces have already expressed a serious interest in participating. The project has beenprepared jointly by the staff of DNIP and consultants hired by ME, with assistance from theBank.

22. Project Benefits. The main project benefit would be an increased awareness andapplication by the government of evaluation of results and impacts to better measure theeffectiveness and efficiency of public expenditures. This is expected to result in improved

The use of the Special Account will be reviewed when and if the government enters into an agreement with anagency for procurement and administrative services.

8

project analysis and preparation and a more rational allocation of resources, and help increasethe productivity of public investmnents.

23. Project Risks. The major risks are (i) unsustained government commitment toreform; and (ii) excessive politicization of the selection of projects resulting in improper use ofthe investment system. These risks would be mitigated as follows: (i) high-level governmentcommitment is shown by the approval in August 1994 of the National Public InvestmentSystem Law and in May 1995 of its regulation, and (ii) although the final selection of projectsis and should be a political decision, a properly working public investment system, such as theone being implemented, will ensure that enough information on the pool of projects is availableto permit a technically sound decision, while access by Congress and government to thisinformation will enhance the transparency of the decision-making process.

24. Recommendation. I am satisfied that the proposed loan would comply with theArticles of Agreement of the Bank, and I recommend that the Executive Directors approve it.

James D. WolfensohnPresident

AttachmentsWashington, D.C.October 30, 1995

9

Schedule A

Estimated Project Costs(US$ thousand)

|__ __ Local Foreign Total %

Sectoral Investment Decision Making 544 700 1,244 5.0Improvement of Sectoral Project Analysis andEvaluation Capacity 5,697 1,885 7,582 30.3Basic Studies 8,623 0 8,623 34.5Preparation of the NPIP 2,309 399 2,708 10.8Project Administration 1,670 850 2,520 10.1Base Cost 18,843 3,834 22,677 90.7Price Contingencies 2,003 320 2,323 9.3Total Project Cost 20,846 4,154 25,000 100.0

Financing Plan(US$ million)

Local % Foreign % Total %Government 8.9 35.6 0.1 0.4 9.0 36.0XBank 12.0 48.0 4.0 16.0 16.0 64.0Total 20.9 83.6 4.1 16.4 25.0 100.0

m I

10 Schedule B

Summary of Procurement Arrangements(in US$ million equivalent)

Procurement method

Project Element ICB NCB Other N.B.F. Total Cost

GoodsComputer Equipment 0.552 0.552

(0.420) (0.420)Miscellaneous Supplies b/ 0.175 0.175

(0.133) (0.133)Consulting Services d 20.219 20.219

(13.749) (13.749)Project Administration 2.071 2.071

(1.698) (1.698)Counterpart Staffing 1.983 1.983

(0.000) (0.000)Total 23.017 1.983 25.000

(16.000) (0.000) (16.000)

Note: Nurnbers in parentheses are the amounts financed by the World BankN.B.F.: Not Bank Financeda/ LIEB: Limited International Biddingb/ Local Shoppingc/ Services to be procured in accordance with World Bank Guidelines: "Use of Consultants by World Bank Borrowers and bythe World Bank as an Executing Agency (August 1981)

Allocation of Loan Proceeds(in US$ thousand equivalent)

Amount of Loan Percentage of Expenditures to beCategory Proceeds Financed

Goods 550 76% of expendituresConsulting Services 13,750 68% of expendituresProject Administration 1,700 82% of expenditures

TOTAL 16,000

Bank Loan Disbursement Schedule(in US$ million equivalent)

FY96 FY97 FY98 FY99 FY00Annual 1.4 5.0 4.6 3.0 2.0Cumulative 1.4 6.4 11.0 14.0 16.0

11

Schedule C

ARGENTINA

PUBLIC INVESTMENT STRENGTHENING PROJECT

Timetable of Key Project Processing Events

(a) Time Taken to Prepare: Twelve months

(b) Prepared by: The Ministry of Economywith Bank assistance

(c) First Bank Mission: July 1994

(d) Appraisal Mission: June 1995

(e) Negotiations: October 1995

(f) Planned Date of Board Presentation: November 1995

(g) Planned Date of Effectiveness: January 1996

12Schedule D

THE STATUS OF BANK GROUP OPERATIONS IN ARGENTINASTATEMENT OF BANK LOANS (s of Sepeber 30, 1995)

(USS mInon)

Loan Fil AMOUNT (1s UNDISBURSED

Number Year Boromwr Pue co )

Fuly didtsd blo (44) 5,361.2 0.0

of which SAUSECALIDeb Reduction loam:

2575 196 Argentina Agrculture Sector 350.02815 1967 Argina Trade Poicy 496.0296 1969 Argatk Trde Policy II 30.0

3291 1991 Argantin Pubic Enerprs Reform 300.03394 1 92 Argwntinr Pubic Sector Reform 325.03555 1993 Argantine DDSR Support 450.03558 19 Argeti Fhami Sector Adustrent 4D0.03556 1993 Argwentina Pub Entaprme Ref II 30.0

2641 1966 Argnrtine Wwr Supply 40.0 2.0

2854 1987 Argetwn Power Dibubon 276.o 69.8

2920 1988 Arganna Mucip Devaopmnt 120.0 3.7

3280 1991 Argeti Provincial Devlomt 2D0.0 116.7

3281 1991 Argetn W r Supply 100.0 92.8

329 1991 Artira PEREL 23.0 0.3

3297 1991 Arprbi Agrku Swva 33.S 11.5

3382 1991 Argeia Pub SaW Reform TA. 23.0 4.7

3460 19l2 Argntina Tax Admintstration 11 20.0 3.9

3520 1993 Argentia Yar," II 300.0 14.2

3621 1903 Argntn Flood Reheb 170.0 37.4

3611 1993 Argetn Rood Menance & Rehab 340.0 221.5

363 194 Argenin Matamal & Child Heft 100.0 83.0

3709 1994 Argeta Cap iulc 500.0 500.0

3710 1994 Argetin Caphl Makets TA 8.5 7.4

3794 1995 Arpntina S eonary Education 1 190.0 190.0

'313 1995 Argentina Provincial Refonm 300.0 200A

380 1/ 1995 Argetn Miia Development II 210.0 210.0

3877 I/ 1995 Argetin Provrma Dav. II 22.0 225.0

*37 19s Argentina Provncial Bank Prlvatlz. INA 333.0

39211/ 1995 Argent Higher Educetion Reform 165.0 166.0

939 11 1996 Argentina Dank Reform IOU 800.0

39271/ 1996 Arwntia Mhnng Secor Devlpmet 30.0 30.0

39311/ 1996 A ti PrwAncl Het S dor ev. 101.4 101.4

TOTAL 9136.6

of w*ich ha ben repaid 2,5855

TOTAL NOW OUTSTANDING 7,251.1

AMOUNT SOLD 12.8

of which he ban repaid 12.8

TOTAL NOW HELD BY BANK AND IDA 983.5 728.3

TOTAL UNDISBURSED -37

rDsbrsing SECAL. SAL or Debt Reducton Loan

I/ Not yet signed.

05-Oct-95

13Schedule D

ARazXnStKSTATXIX2T OF IZC INVXSTNSrrS

As of September 30. 1995(In Millions US Dollars)

- Original Oross Cemitmants - Reid nod UndebFiscal Years zrc irc by by iMl.Committed Obligor Type of Business Loan Equity Ptpnt. Totals ITC Ptpa. Ptmt.

1392 Prigoritico Rilpl&tanu. a Food and Agribumins.m 12.00 1.00 6.00 19.00 10.33 5.00 2.001992 MM SoCiedad de Sola S.A Financial Services - .13 - .18 .lS - -1992 Oleaginoma Oeste. S.A. Food and Agribusineas 20.00 - 15.00 35.00 14.1C 14.341332 Poliur. S.M. Chemicals and Petrachemc - 7.00 - 7.00 7.00 -1392/93 Petrolara Argentina San J Mining and Extraetion of 15.00 27.00 35.00 77.00 39.50 2931. 27.001S93 Alto Parana S.A. Timber. Pulp and Paper - - - 0.00 1947 _ 1933 Cadipsa S.A. Mining an^d xtraction of 15.00 5.00 20.00 40.00 20.00 13.00 9.2019S3 Capri S.A.I.C.I Food and Agribusiness - - - o.oo .90 - -1993 Xmrigan S.. Infrastzrueturs - - 0.00 .S4 - -1913 Ferroxoproma p-aoano. S. Infraetrzcture 13.00 - 20.00 33.00 12.45 17.07 4.401333 Interpack. S.A Timber. Pulp and Paper - - - 0.00 1.27 - -1333 La Zudtetrial Alimenticia Food and Agribusin.n - - - 0.00 .S - -1933 Halteri. Pa-pe. S.A. Food and Agribusiness 12.00 - 12.00 24.00 *.00 1C.001333 MendomA oa freecom. S.A. Food and Agribusin-ms - - 0.00 .94 - _1333 Mtewo Central Argentino 8 Infraetructuro 10.00 3.00 15.00 23.00 12.38 13.00 15.001S3S Surfacten S.A. Chemicalm and Petrochmic - - - 0.00 .17 -1993/94 Molinee Rio de l& Plata S Feod and Agribusiness - 3.00 - 3.00 7.33 -1993/96 Brida S .A.P.I.C. Niving and Extraction of 55.00 25.00 100.00 1t0.00 74.00 86.00 32.001994 C5rveceria y Malteria Qui Food and Agribu.ina.s 15.00 - 15.00 30.00 15.00 15.0015S4 Crampia General de Coebu Mining azd Xxtraction of 25 .00 15.00 40.00 SO.00 33.00 42.00 -1934 . rea Distribuidora lior Infraetructure 45.00 - 123.00 173.00 39.38 121.0-1334 Perrn S.A. C _nt Lad Construction M - - 0.00 1.50 - -1334 XMaL.a-Argentina. S.A. Timber. Pulp and Paper 11.00 - - 11.00 11.00 - -13S4 The Argentina xquity Inve Financial Services - 4.00 - 4.00 4.00 - -1934 YaCylec S.A. Infraetructure 20.00 .04 45.00 65.04 15.49 44.71 -1lS5 Acedtera Gn-ral Deh-za S Foed and Agribusiness 15.00 10.00 15.00 40.00 25.00 15.00 15.001335 Aguas argentina- Ifrantructure 33.00 7.00 134.50 179350 45.00 125.53 -!3J Co e- ia Eeleboradora de P Food and Agribusines. 15.00 - 6.00 21.00 14.33 5.40 -1SJS C5OPs," A_mricana de Sup Industrial and Conswu.r S 29.00 - - 23.00 24.00 - -1sS Xingpe S.A. and ZI Caldor Food and Agribunineas 6.00 - 6 .00 6.00 - -1s3s La Buenos Airs Now York Financial Servic. 2.33 - 2.39 2.33 - -LOSS La Bueno Aire. 8.k. Rati Financial Services - 1.17 - 1.17 1.17 .5313S5 XMatellone Hermano. S.A. Food and Agribusiness 40.00 - 35.00 75.00 40.00 -1335 Maxima .CA. AZJP Financial Servie.s - 14.15 - 14.13 14.13 .041935 Yn"-laat S.A. Infrastructure 30.00 5.00 - 35.00 35.00 - 30.001335 Sancor Cooperativas Unida Food and Agribusinesn 40.00 - 30.00 70.00 40.00 - -1s35 Coeaa Amricnns S.A. Infraetructure 24.33 15.00 60.01 100.00 39.35 - -1S55 The Tower Fund, L.P. Financial Service. - 20.00 - 20.00 20.00 - 17.731355 The Tower Inve.tXant Mann Financial Service. - .15 - .15 .15 - .13

Total gross com tnants bf 1243.00 200.06 1035.61 2478.67Laoe c acelletion.. tezuinationa. repayment m ale. S62.19 1.52 311.60 875.31Total cmitomntm novw held c/ 650.31 198.54 724.01 1603.36 873.35 724.01 225.76

Pending comm_itmenta

AZCSA 20.00 - 61.00 51.00Aguas Argentinas Infrawtructure 40.00 - 120.00 150.00B3AX3 A GrlRTNA 10.00 8.50 25.00 43.50roxtYU 40.00 - 30.00 120.00_EW*a Distribuidora Iniractructure - - 8.00 8.00

T tMC39.LE POIT. 10.00 2.00 - 12.00TUCUNW1 - .30 - .30

Total pending comietmnt 120.00 10.30 284.00 414.80

Total comLitments held and pending co_ itnents 800.81 203.34 1008.01 2018.16Total undisburaed con.itasents 87.48 45.43 92.85 225.76

a/ I2kveetXLnte which have been fully cancelled, terinated, written-off, sold, redeemed, or repaid.b/ Gross codni_ent consist of approved and signed projects.C/ *eld cmEietr consint of disbureed and undi- bureed inVeetuento.

TECHNICAL ANNEX

14

SECTION A: DETAILED PROJECT DESCRIPTION

PROJECT BACKGROUND

Introduction

1. Argentina which has suffered from a prolonged political and economic decline with aconcomitant deterioration of its public institutions. Economic policy from the 1940s onwardtended to favor the interests of successive private groups with access to power: unionized laborthrough implicit subsidies (high wages, guaranteed employment); industry, through varioussubsidies embodied in highly protected markets, tax exemptions through special promotionregimes, and subsidized credits and grants; and public enterprises, through subsidized inputs andhigh, noncompetitive prices.'

2. The unexpected rise in real intemational interest rates and the abrupt end to voluntary foreigncommercial bank credit in the early 1980s provoked a financial collapse, and placed additionalpressure on the economy, which was forced to direct domestic savings into foreign interest payments.In the period 1980-1982 the public sector took over much of the private debt, exacerbating theexisting structural public deficit.

Macroeconomic Effects

3. Economic Instabilitv. In the last forty years, economic policy has been characterized byfrequent changes of direction; unforseeable changes in exchange rates; modifications in the nature ofthe exchange market, which oscillated between total restriction and absolute freedom; abrupt changesin the commercial market, ranging from rigorous price control to total deregulation; short-termsubsidies for production; and fluctuations in tariffs on imported goods, among others.

4. Inflation. Severe macroeconomic and institutional distortions manifested themselves inchronic public sector deficits and endemic inflation. Public sector deficits in the late 1970s rangedfrom 5 to 14 percent of GDP and in the early 1980s surpassed 15 percent of GDP. Central Banklosses probably raised the combined deficit to over 20 percent of GDP. After the return toconstitutional democracy in 1983, public demands to control inflation were reflected in four majorstabilization programs, all of which failed to eradicate inflation, and indeed aggravated it. Inflation,high and unpredictable, became the main impediment to the growth of private savings andinvestmnents.

Inefficiency in the Use of Public Resources

5. Lack of budgietarv planning. The deterioration of the state resulted in a complete breakdownof the budgetary process. In the absence of a planning framework given by a properly formulatedbudget, control and evaluation of expenditures can only be weak.

IArgentina: from insolvency to Growth (10827-AR). The World Bank. 1993

15

6. The present administration has enacted a series of structural reforms to recast the foundationsof public finance and the insolvencv of the state. In a complex series of efforts, the Government ofArgentina (GOA) addressed these issues with resolve, and as a result, the National Budget hasnow been prepared on time three years in a row, and the first tri-annual National PublicInvestment Plan will be presented to Congress during 1995, after many years' absence. The newIntegrated Financial Information System (SIDIF) now collects and consolidates all informationon expenditures by the National Government. As of July 1995, the use of a single account forTreasury permits the management of cash, which until then was held in more than 4000 separatebank accounts. A new debt system (SIGADE, developed by UNCTAD) is in operation in thePublic Credit Directorate at the NE. As a result, detailed accounting and budgeting informationcan now be produced in a timely fashion. In addition, a modem Auditor General's Office wascreated and ex-ante control eliminated with the consequent increase in efficiency andtransparency. With the control of expenditures successfully addressed in this way, the next areawhich would need to be addressed is the efficiency and effectiveness of expenditures.

7. Argentinean public expenditures are roughly divided into two categories: operationalexpenditures (US$32 billion) 2, and investment expenditures (US$8 billion). The latter is, in turn,divided into physical investment (US$4 billion, including projects co-financed with the Provinces andMunicipalities) and an additional US$4 billion of associated expenditures (e.g., planning andtraining). A list of the major public investment entities (1994 budget) and a sample of large projects(1995-1999 projections) is given below. Govemment proposes addressing the problem of theeffectiveness and efficiency of investment through training in project analysis and evaluation, creatinga culture of evaluation by results and impact to replace earlier measurements by cost incurred. TheGOA strategy is to concentrate initially on real capital investment (through the proposed project)and social investment (through the Social Protection Project, in preparation, in cooperation withthe proposed project). The results of these efforts would be expanded to the ProvincialGovernments (Second Provincial Development Project, Ln. 3877, approved on May 4, 1995)and at a later stage results could be expanded to other areas of public expenditure, includingrecurrent expenditures.

8. GOA's investment strategy has altered considerably. The change in the role of the Statefrom production to regulation resulted in large-scale privatization of state-owned enterprises anda considerable decrease in public investment requirements. Nevertheless, considerableinvestment remains. GOA's investment program for 1995-1999' proposes investments ofapproximately US$86.8 billion, including National, Provincial and Municipal Governments aswell as privatized and public enterprises. Of this amount, US$6 billion are direct NationalGovernment investments, and US$18 billion are national investments through transferences andloans ("soft" investments, such as those accompanying physical investments, investments inhuman resources, management, etc. are not included at present).

9. Inefficiency of public investment. As mentioned before, the erosion of the State has resultedin a weakening of Government as an institution, with, among others, the practically total

21994 budgetArgentina en Crecimiento. 1995-1999. Niinisterio de Economia v Ohras y Scrvicios Publicos. Argentina

16

disappearance of planning as a function. This has resulted in (i) a general absence of macroeconomicsectoral strategies; (ii) absence of guidelines for the proper identification and preparation of projectsand the evaluation of their results and impacts, with a concomitant inefficient allocation of resourcesand inadequate implementation of public investment projects.

10. Information recently gathered byDNIP on the status of a sample of investment JUDICLAL BRANCH ......projects in the pipeline has revealed that no MIN. OF JUSTICEmore than 10% of those projects could provide bUN. OF HEALTHa detailed feasibility study to justify the project FOREIGN AFFAIRSand its design. Data on the execution of MIN. OF INTERFORinvestment projects reveals substantial PRESIDENCEvariation across projects in the speed of project MIN. OF ECONOMYexecution relative to planned execution. MIN. OF EDUCATIONDuring 1993, project implementation versus MIN. OFDEFENSEplanned as measured bv disbursements relative

0% 20% 40% 60% 80% 1 000°to authorized expenditures during the yearvaried between 0% and 100%. Even whenthese variations are averaged out within ministries, substantial variations are still evident across thoseministries. Average disbursement rates relative to budgeted rates ranged between 92.7% for theDepartment of Defense to a low of 13.7% within the Judicial Branch.

H. Many projects were funded that eventually became inoperative, wasting scarce resources.Furthermore, the most significant part of the projects financed by the federal or the provincialgovemments show ex-ante analyses limited to technical feasibility or engineering studies. The lack ofdeeper analysis related to cost efficiency and impact measurement precluded early assessments onprofitability or the suitability of chosen altematives.

12. Different types of evidence support this claim. First and probably most telling, conversationswith officials in both core Govemment agencies, such as the Ministry of Economy, and lineMinistries, such as the Ministry of Education and the Ministry of Health and Social Action, revealconsistent agreement that the existing capital budgeting practices fail to reliably sort out productivefrom unproductive investment proposals. Second, and consistent with these observations, despitedetermined efforts by DNIP to locate data on investment impacts, they have been unable to locatedata which would allow them to develop either an objective or a subjective assessment of the impactsfor public programs in Argentina. This absence of information on investment impacts underscoresone of the most telling failures of the existing patchwork of investment management practices withinthe Govemment; namely, a systematic and widespread lack of concern with and attention to theeconomic and social impacts of public investments.

13. From a representative sample of 479 large investment projects, 200 in the pre-investmentphase were selected for quantitative validation. The analysis of the projects in the feasibility stagedemonstrates one of the key weaknesses of project preparation process: the lack of indicators forproject monitoring and further impact measurement. No measurement of the multiple variables to beimpacted by the project has so far been taken into account. Further analysis reveals a nearly total lack

17

of project monitoring and impact indicators; those few which do have impact indicators have onlyone.

14. Another indication of lack of adequate preparation is reflected in the disbursementdistribution. In the sample, 51 projects are multi-year projects in the feasibility stage. Of these, thirty-two have a "flat" disbursement distribution, i.e. an equal level of investment for every year, aprobabilistically abnormal distribution which indicates weak expenditure planning. Furthermore, onlyeight projects scheduled anv expenditures for the pre-investment phase. A consequence of this is aweak track record in obtaining extemal financing, and a substantial variation across projects in thespeed of implementation.

Condusions

15. In times of fiscal stress, govemments will emphasize expenditure control to the detriment ofplanning and evaluation, i.e., expenditure efficiency, and this can clearly be seen in the case ofArgentina, where no budget and no investment plan were prepared in decades, with the consequentfiscal lack of discipline. The 1989 reforms improved the transparency and control of financialinformation, through decentralization and devolution of authority combined with increased centralmonitoring. The new Integrated Financial Information System (see below), when replicated, willprovide accounting and budgetary monitoring information on some 100 expenditure agents in thenational government.

16. This is thus an appropriate moment for Government to begin to search ways to improve theefficiency of public expenditures, and it is doing so in several complementary efforts, through fourBank-financed projects: the Public Sector Reform TA Loan (Ln. 3362-AR - addresses monitoring ofthe results of public investment); the Social Protection Project (in preparation - addresses monitoringas well as the ex-ante and ex-post analysis of social projects); and the Second Provincial DevelopmentProject (Ln. 3877-AR, addresses project preparation for fully Province-financed projects). Thepresent project addresses evaluation as well as project preparation of non-social programs andprojects, both at the central levels and co-financed with the Provincial Governments, and thuspotentially affects all public expenditure units. Thus, the groundwork would be prepared for the nextreform steps, taking Argentina from public investment planning to planning all of public expenditure.

CUADRO WI TOTAL ODE UIDADES UECUTORAS - lb.. *R9KX4 REAL0 BAE A PRWEII"JTO 164/1DISTIBUOON PCO MOTO DE OBRAS

(an ml.. de pm.)

*~~~~ ~ 9 . . , , ,, .. t01WV. MM. NAC- *Wks de 4q CUT. PUOf CANT. MWwoO 1111de 1 CANT. O W. TIO tM

Poder 1ord.a 10 898.8 a 0 0.0 4306 0 0 0 0 0.0 0.0 0.0Audrmta God.o de la Nw 1345.0 0 0 0.0 496.0 0 0 0 0 0.0 0.0 0.0Cknve.c Mun W FOorm 2,227.8 O 0 0.0 0.0 0 0 O 3 0 0.0 0.0 0.0Poado JudSk de Il Ncl6mnu 0,25610.0 3 2 0020 J8J59jB _ 3 3 3 3 0.0 28,501.0 28,591.0Srtwi a1 34,150.8 2 2 15.X67 5 7,J90 0 2 2 a 2 O O 4,5W00 4,500 0SPrv. Okl de RIod6n 838.8 0 0 00 9506.0 O 0 6 0.0 3.0.0 30.0

Sec"KKI de DW tbo s7832. 3 a 7,0970 o ,739 0 3 l a 7 9 5,e34.0 2,857 6 8,491.8

sea.de sron dM 578Puom 6.0 0 0 0.0 666.0 0 0 0 0 0.01 0.0 0.01

Seem de Rea. N PL s dnb.I Huhw.o 2s 152.0 0 0 0.o 253S.0 0 0 0 0 0.0 0.0 0.0dS4d de Turkm 1. 614.0 4 1,2eo.0 7,263 0 17 22 22 O 7001 7.00 070 4.013o

S*,iIs de kA Furcion F. 4 ,755 4 O 0.0 1,400.0 O O O O 0.5 0.0 0.0Sow. de C,o6 Y TC -M6ods 142.5 O 6 3 .0 103.0 O 6 6 0 0.0 00 0.0Org. D _wodd: Furd. M6pibe IJo 244.0 2 2 204.0 730.0 2 2 0 2 0.0 s54.7 154 7CanrW Fed. de Red, SoO-, " 501.0 0 0 0.0 8398.3 0 0 0 0 0.0 .0 00

SCon.o. d F. vn y " 25000700 3 0 0.0 1 9,500 o 2 2 2 0 19,15000 0 19,1500Indt Noo Adtk Plbt8 229.4 O O 23So.o 627.3 a O O O O.o 0.0 o.oC4n* Nidw de Enw AMmk 393,067.4 71 3 228,0072 30,374 .0 S 5 1 4 7,1105.0 1 7,444 .2 25 ,248.2

Conf"n NooorW de At EpW 8,93t1.5 O O 0.0 18,618.0 s 1 1 1 I O 12,136.0 0.0 12,138.0Admnh. de Fwq NmWobn 2,960.8 2 1 6 SM02 0 ,7t7.0 I 3 1 6 I 3 3 1,011 .0 430.0 1,441.0h-wL Noe. de Cbnda y T6ci- 1-1l6a 4,449.0 4 4 3,5CO.0 4,seo.0 2 2 O 2 0.0 4,4eo.0 4,4000Sird4am Orel. de Is Nsit 8 9 0 a 9. 308 8 9 O O O 0.0 0.0 0.0but Nac. de A*6n Ud 1 36.0 o O o.o 36 0 o O 0 O 0.0 o.o o.o

hd.L NOD . dvl Mwx y Is Fwnl 2,1011.o 1 I 1000.0 3,049.0 t J 3 O 1 J3 0 O O 1,332.0Wd hubr (Ack. Com 1t'010.01 8' 2 14'871 6 12,54501 0. 1 IS.

Polk Fl ~~~~~~~ ~~ ~~~~19s2e2.01 4,sso0o 1 9,09S .0 3 60-0 ,000 3,OoO 0Fqlo N lW de In Pnoorw 830.0 O o O.o 6e.0 O o O o o.o1 0.0 0.0

C4* de PJu. y Pom d Is PoloYed. 135.01 O O.o 5200-0 O 02 0.0 0.0 O.o14b delIF ckwEbrios S0,001.0 4 9J33,811 .0 1e o22.03 7 O 7 O O 14,022.0 1 40220tiMrAdb do Jud (Adm. Cel)a U,908.4 4 40 810 9S40.0 8 t 2 t t t ,93"0.8 10,937.4 t,

Adfhwf CWri - - Mrbti de Juso 6,205.8 3,725 9 3,41.8 8 aOl 2,670.8 0.0 2,87.a

Subo.mWel de C*ord. Toer y Adia v 49207 0 3 O4 47,814.0 15.807.4 O a O O 0.0 1519O 1 5,197.4

Sec. de Julks y Sec. de Asuno Logsls 20S.0 O O 0.0 9e.i 0 O a O 0.0 0 0 0.08_iw PlW 1 .25.0 O O 0.0 420 0 O O O 0.0 0.0 0.0

!1 Ib dg DD%f Vhn. C4WV t,925.0 0 0 0.0 1,530D.8 0 0 00 0.0 e O 0.0Estdo Mvor Cwnor de Mes F.F.A.A. 470.0 a O 0.0 t i0.0 O a O O O O 0.0 0.0h_L hwt CkwA. F.FAJL 3,S00.0 2 400.0 2,283.0 0 0.0 683.0 88J.0

La Gm dW Etr,m.8 1.25 I 4 t 00.0 8,2t92 1 0 0.0 0.0 t 0.0MEntdor 31w de laIvd t 8 ,784.71 41 11 2 408.0 5,0Xl .0 21 O 2 0.0 1,482.0 1 ,482 0

Fu.ent: D.N.I.P. y F.

CUADRO Nit TOTAL DE UNIDADES BJECUTORAS - INVERSION REAL

IEN SA A PRESUPUESTO (t'S/ 9ONDISTRIFUCION POR MONTO DE OHMS

(e ans do poe)

1u4 tsfINSTtTUCwwS ltSJOKLE 71

De ItlV. 7ua RAM Ono" 4dO) CAT. 0 AN. MTO OR Ong= eaR CANT. PO CANT. TIO Ow MONT TO MOTmOPIMP. C RaD TOTAL pu. I 00 " I L L NUVAS =C TTAL

Estado M.vc Oerb d e to F. A6m 44 ,5 t. 5 t 3 t17, 570.0 47 ,531t.1 t t 3 1 t 2 21,230.0 8,335.tt 2,505 8

k"lub 0 ootl i tu 1,0s40 o 1 t 10.0 3,SS0 I t , 0 1 0 0 e929 0 0

Fmbrkockm" MWMm o00 0 0 00 1,4000 0 0 0 0 0.0 0.0 0.0

_ L AA Ph . M7i 324.0 0 0 0.0 190.0 0 0 0 0 00 0 .0 0.0

M UhbdCCn de Eodo rSCn tO dL CO 305,9.0 2 t 24 364 14 .335. I 5 7 a 4 1 9,7440. 147015.0 13 59.

D . de A _t47 t2,U9.5 0 0 O O 40020.0 0 0 a 0 0 0 0.0 0 0

Sec. de 3b3 3G V C 42.500.0 4 4 42,000.0 25,019.3 5 7 5 2 0102.5 19,720.0 24,841.5

Sec. de corr.nN * s*ndd r_oT 90.0 0 0 0.0 2600 0 0 0 0 0 o 0.0 0.0

Sec. de FR agwmcrn Eo4cea t100.0 0 0 0.0 100.0 0 0 0 0 0.0 0.0 0.0

See. cla Hwi 2,30.0 I I ,800 0 2,96e 4 O O O . 2,000.0 2,000.0

See. de Fom Puboo 0 OOOOO160 0 0 0.0 7,10 0 0 0 0 0.0 0.0 0.0

Oft de o.WUhr 8,11t 5 2 2 4,904 5 5,2191 2 2 t t 803 4 4,28SQ0 5,068 4

6A_ yP 70 20 0 0.0 29.0 00 0 0 0 00 0.0 00DWqohl66 Nac. do Fl eumo H f 38,130.0 4 60 133,7500 2 5 1 4 3 ,00.0 132,500.0 133,500

0

See. de Transpons 4,035.0 1 3 3,304 0 2.372 0 2 2 t50 20.0 1,25.0 1,750.0

See. de Wudla5 479.0 0 0 0.0 200 1 1 1 0 1 .0 0.0 160.0

Sec.ldO Enwgla 333S 1 O 117 1220 . O O 6 O 265 0.0 0.0

Ch in N lr de Car y T oa 940.4 1 1 000 1400 O 1 0 O 0.0 20 20.0

_ buh N. do EcAd. y Cr2 1,09. 0 0 00 1,05Iw 0 0 0 0 0.0 0.0 0.0

Swvio NSc. de S *W AZnm 68,539.0 0 0 0.0 7,710 0 0 0 0 0.0 0.0 0.0

Con. N.Ruadw r del V m ,58.6 0 0 0.0 235.0 0 0 0 0 0 0 0.0 0 0

Supkandni de Svcra de la Nnd 1,330.0 O O 228 4 O O O O . 0.0

Dkoccd Nedrl de VUtin 407,283 0 I156 283 407,283 0 505,000 0 271 271 92 170 34,5730_ 3a3,461 .0 418,034 0

but Necd. Acc. Coperda 11t4.7 a 0 0 0.0 4,70 0 O O O 0 0 0 0.0 0.0 0.0

F d.e N c dN TIPno.yF 9,325.3 3 20 6.130 5,3e70 2 7 0 7 00 9200 9200

_ hd Noc. d" kv y D*c. F o1,524.3 O 0.0 1,331 0 1 1 I O 80.0 0OO 80 0 w

; _N :d T m ot kxwr t,e8m00 2 22 t,8750 8800 2 9 6 3 700.0 t40.0 84000

F"otNac eVh 5,800.0 1 3 t1,461.0 900.0 2 O 0.0 585.0 585 0

blotNac. d Pew.Sf 2,077.0 1 3 3D0.0 1,813.0 5 1 3 10 3 816.8 137.0 953.8

Trdb De Tcm. de la Nool6n 49 0 b o o. 49 0 0 0 0 0 0 0 0.hdt Nvo. d- Obr_ Flk9b_ y Srradeodo (COFA!f>vS_ 705 o O O O O 373 2 _ O O O _ Q

O O 0.0

kh l. Noo. de Serna 20 O O 20 0.0 O O

but Arg. San. C lided V gel S-0.0.0 0 0 0.0 1,918. I0 0 1,616.0 o o 1,618 0

Dhkocl6n Genera khoet 21 ,228 3 1 1 1 1 ,1 57 3 20,4140 1 1 7 8 I 1 2,8US 0 2,575 0 5,420.0

AdmldrudJ6n Noo. de Aduaniu 16,360.0 16 52 1 0lao6 o 13.000 0 28 29 1 7 1 2 2,772 0 4,050 0 8Se22 0

h t Nvc. Tee. Mhnwa t,000 0 _ _ 700 0 1,000 0 1 1 O 1 O O 726 0 728 0

Triluna Fllo de la Nacl6n 25J. 5- 0 0 1030 O O 0 0 0 b 00 0 0

C-om. N c. T _moukelr 8,533.7 0 e o 50.0 O O O O 0.0 0.0 0.0

Ernt N c. PMAdor dh Om o_7768 . 322.0 O O O 0.0 0.0 0.0

Ento Nee. FbgLubdor de EBodtd 4 3el .0 O O 0.0 4,7740 O O O O O O .0.0 0.0

Funbs:D N.l.P. y F.

CtUADRO WIt TOTAL DE UNIDADES EJECUTORAS I INVER ION REALEN MUZ A PREUIPUEITO t t"0DISTR111UCIONE POR 110NTO DE 0OBRAS

INSTITrUCW0NlONSLABLES| 4|1I|DE INV.PI rKv M AC de E) CAT PRCtl CANT. MONOIIR pls- deT rb ClTto ORA MNT. O ORO 1 0 m 06 TOm mOm

I UrW. oem O I IOA pf:u. oa " I !-- I VARH WCU TOTALCom. NW. Tmporb hatfon 1,325 0 O O a O 900 0 OOOO 0 0 0 0. 0. 0.0Com. Nw Tmpaft FnwmIW4 200I 0 O O O 1 ,4000 0 O O O 0 0 0 0 0.Ora. Rqbnal de Saurklad de __m t93.2 O O 0.0 157.5 O O 0 00 000 ooMCweo WMgorw de Subr6* 0 O O O O O 00 0 O O O O 0.0 0.0 0.0Com. Nee. de Comwdo Exrbr I 0 0 O O 0.0 155 0 O 0 0 0 0 0. 0 0.Oro Cid1 Conw Find Aoo.C Be As 0.0 O O 00 92 4 O O _ 0 0 0 0 oo q 0.0MIUnbilo de Culbur Eduai6n y6daL Cwntra 1S,707. S 0 00 34,03 O 0 0 0 0 0. 0 0.

Adn*w_nC lrtr Mrbw de Oybm Educ. 8,t83 7 O O O O 17,043.S O O O O 0.0 00 0.0Blret Nalor 2,802 0 O0 0 4,203 0 0 0 0 0 0 0 0sec.FPomUnwfri 1500 O- 0 0 0 157S O O O 0 0 0 00 0Dh onM Orel. de kwmgan v Doerrolbo 0.0 O O O O 2S.0 O O O O O O O O 0.0Dkcd8n Noe. de God6 de Prop. y Flov. e,98s 7 O O O O 1 2,e17.0 O O O O O 0 0.0 0.0Direoci6n Olral. Red F l de Irowkin 378.2 O O O O 541 2 O O O O O 0 0.0 0.0DiroccFn NeC. de Evalued6n 96.7 O O 0.0 13t1.0 O 0 0 0 0 0 0 0 0.ODlreocdbn Noc. de Evck. de Prog. Noe. 191.3 O O 0 0 50 0 O O O a 0 0 0 0 0 0

Org. sod*Uds o Moo. Cn,dbrei 160.01 O O 0.0 158.0 O O O O O 0 0.0 0.0 Or.D_Doew_d: FarKdoN c.r dekh A 15S.0 O O 0.0 15S.0 O O O O 0.01 0.0 O0 OMlnkilode Trabio yBeurd 8oe Adel Card I.0 J O 0.0 1,139.3 O O O O 0.0 0.0 0.0

Adfniti6 Cwdre - IFtwro de Tr,bo y Seg. So 8e7 O O O O 1,009 3 O 0 0 0 0.O9ubsovr1i de Fomwwo6n Pm_arWl -101 O 7 O O Se 0 O 0 0 0 0 0 0 0 0 OSubwm de PWrmLamborl F 120 O O 0 0 9 0 O O O 0 0 0 0 0 0 0Subetvm de Emipbo 13 3 O O O O 63 0 0 O O O 0.0 O 0 0 O

Sec. de S guddad SocXl 38 0 O O 00 0 36.0 O O O O 0.0 0.0 0.0PAgo Nwc. de la Cwwftc-ckn e5 01 O O O 0 130 0 O O O O 0 0 0 0 0.0ANSES 7,753 5 O O O O *,800 0 O O O O O 0 0.0 O OMilnlbrb de 9Zud Y Aocl6n Sodel AdL Cmra0 55,ass.0 5 7 43,520.0 *0,24.8 a 5 1 4 3,810.0 41,21t8.5 1 45l,0211.

Ad m**c6 C lnk - Mtero de Selu y Ace. Soc. 1,973 0 O O 0.0 961 9 0 O O O 0.0 0.0 0.0Dkodn Nsc. de Aftxin M8dkc 122.5 O a O O 50 5 O O O O 0 .0 0.0Dlreocl8n do S& Mlud o X tnfl 15 0 O O O O 32.0 O 0.0 0.0 0.0Direcl6n de PFlo" ~ 4 O O O O O 25 0 O O O O O O 0.0 0.0Depb-T de khcgw1n 016.0 I 1 500 0 S,171 .0 1 1 O I 0 0 3,810.0 3,810.0Dlnod86n Nwc. de Modewa Sandw8a 1,027.51 O O O O 8505 0 0 0.0 O 0 0 ODlrood6n Nec. de FAuWlny Conrol 0.0 O O O O 67a 0 O 0 10 0 0 0 0 0 0 0Dlroocd6n N c. de S.I.DA 0 0 0 0 0 0 a 0 0 0 0 0 0.0 0 0 e oSec. de V MiK y Celkbd Ambler"l 0 0 O O 0 0 20 0 O O O O 0 0 0 0 .See. de la Terow Edad O O O O O O 108 2 O O O O O O O O .Prog. Soldedlrio Soc^I O O O O O O 155 a O O O O 0 0 0 0Diroocd6n Nec. de Emrrm Srmiaes 51,300 e 1 s 43,020 0 41,218 5 4 4i 4 O O 41.218 5 *,1.

C'Iro N o. Pleoduce6n Socbl1 350 0 O O O O. 25t0.0O 0 0 0 0 00 0.

Fuenie D N IP y F.

CUADRO WI TOTAL DE UNDeS EJECUTOPAS- INVER1ION REALEN MU A PRfUWUESTO I S1966DISTRIUUCION POR MONTO DE OBRAS

(on mks de peece)

: , I _, ,_ I1 166 , ,| 1 166INTTFUioNU KESPCNSAM"S

oe INV. PuB.MC. w de q CANT. PROY CANT. NwO"TO O0Ronk de 0) CAliT. rRoY CAKr. TRPO OSRA | MONTO OSR NoT MOU TODOI_PUESUP. 4 ousM TOTAL I Ur. I6 OUAS I N eI NULVAS an UCUC TOTAL

Hoop Nee D. e&tdo 447-31 0 0 00 S37.0 00 0 0 0.0 0.0ANMAT Cdr Mod_ | S , 73e 0 | 1 2 1 ,53a.0 2,470.1 0 0.0 0.0 0.0INCUC Ab*c6 a |niw 2,t39.2 1 1 500.0 1,7340 o f 1 o 0 300.0 300.0

= .D A. Pomdm 9,513.0 1 2 7,200.0 7,013.0 f 2 o 2 0.0 5,300.0 5,3D0.0butDr. Libtra 3,410.0 0 0 0.0 1,300.0 O O e 0 oo0 oo ooMonbs doe O 0.0 0 0 0.0 485.0 0 0 0 0 0.0 0___ _ 0.0hut RFib PJo.oDI Sud 825.0 1 1 70.0 245.0 0 0 0 0 0.0 0.0 0.0ist Nec. Sev. Soc. pwabObdoe y Pwok1ooe 0.0 0 0 0.0 148o 1 4e,014000 144,0000 000 144,000.0

TOTALM;: I6e 1 O 1.021t 1 LM AM1 L 413 WY07 222 2 2sI 34J.S 7M4742

Fuwnte: D.N.I.P. y F.

CUMAROAT A.- JPO6RR4A4 DE GMSES PROYECT DOBE IN vERsioN EN BtENEs YERVsCE O EPhCOs YEN RECURSos ht4UMsNS. ewAdnrP&i AMbMj

UN/DAD: mAlanes de peosPEROTO: 19s- 19tf

| I X t ' | > °@ WhOlitP- ' kttA1 1; .1 r 11. 1:19 | ilf I IX |t t

A ielsrdi6n a Juseam -BID-BIRF Sac de JusiN Pelfactbldad 20.0 20.0 20.0 20,0 50.,htsaticlur a Ckles Sec. de P P sPenwdae Vy RodaptadAn Sad EewdOtn 13,. 21.9 15,4 t01,2 ¶66.0 216.6 521.t

St 13 21,6 25,4 121.3 166.0 22, tt1,22. RSams dil Estado NKd

Entns Repidas de Swvido PdksIoc -BIRF Soc de Geaurn Enwmsela PerS 17.9 8.4 5.6 6.4 7.3 4.7 32t5Irasnrcn dEd6dos de IlAogsdeo,PutCA Sec. G lwd IsPPmuue a-Min Rai Ext yC EJcwd6rn 67,6 26.1 265 19.6 ItS 10.3 1t2.1Reform AbA7WdVd b do Estd -B10 Soc de HaddwSc de Premunadn Ec a4dnc FantUsed I t 1 11.6 11. t I9 9 11 t 59.6P ogpmdi Enc de Proyectos de Irernldn (Slit Na. da ln P.ibcs) -BIDB Sec d Pmgrsnian Eaxc ncs Ejeedn 6.0 14.0 24.0 190 1, 3,0 77,6Ofucdone nearr tosipso n B -SIRF Sec. de hisne PfA*ts E*ucd6n 13, 1.9.5 17.2 20,7 21.4 26.2 165.6Admaaden IlamonIde AdsMes Sec ae dpee PoOScs Efiedren 5.? 5.5 6.0 6.6 7.5 *.1 34,6

Sub5t 112,5 60.2 61.3 643 84, t.1 466.83 3osoad

selpanlantoab*nienucw Poida Fadl Sups nded Flnnzfas Pods Fd Ejadn 16.5 17.1 24.4 27,7 32.2 28,7 130.1Rsupmntrao de lm Red Ras cbs de Gn ia Ncdonel Contaile Goawrl Gerormsoid i N _ Elan 0.4 2.0 53.4 25.0 10.0 10.0 191,2

P oyscNlMacedea R dawlade (7) ESe Maye dl Ias r a A6tern Puofactsad 25.6 7.6 11.2Centsda Costa y Liar Fbleet Prahkn Na Agwsta Ejeosin 3.4 5.9 6.4 7,0 9.1 9.7 37.0

Sutoal 20.4 25,6 IN? 68.1 56.3 4,4 361.

4. Sbady NlOn

Sad ddi Ca tames Alis -81RF SWc d Salud P r 17,0 30.0 40.0 40.0 127,6lewraltbnyRaRens taoSaed -tD Sec de5 ud Paor 100.0 100.0 100.0 t00,0 406.0Maldenik n M ltntCI -6SRF Sne d Soud Ejacd 6.0 S6.t1 46.3 29.5 13.5 0.8 147,9Nued MlaInlt 11 F Sca dSed P d d 2P0. 40.0 40.0 40.0 14 .6Alrud6n Po l adod ad sn d sted P.t 60,0 70.0 60.0 216.6Hospitl ' mrle El Pedyaae-PreS ddi Nan -SI Sn b sed Ejcuddn 86.6 7.6 t6.5 11.3 35U,HoNe -El ME114'-PcW de Sais-m0 Snc d SAted E,aocun 5.1 8.7 1.1 6t9 35.6Hoep 'Jutto Pmdo'-P se, d l Cheow -,tO Sac de Sis Ejeuddie 6.2 6.3 24.6 9.6 41,5Heapdi de MAcd -a' Saas rd 1n 4%v da CMsBID Sac de SJid Ejacud6r, 12.6 7.6 14.2 111.1 13,1

Oubets42,g 96,6 266.7 266,4 263,5 266,6 1166.65 Pigs ted p A iseand Sodl

ODsrole Sods .BMP Se. da Dantet Sedad P nd 0.6 22.5 16.3 4.6 2.5 41,1PIHo con Rleep Sold -LD Sat de DOwroU SoI P h d 4.0 5.0 6,0 5.0 20,9Prewan de D tawmto Sod on Aron Frenelwes NEA y cOA con NOI Soc. de D nadob Seets Idat 0,1 16.6 4.2 24.6Poitsaa RrS BIRF Sc. de Aplodan, aerudarla yPae PadS 10.0 20.0 20.0 20.0 76.6Pro Icoscdiss(Fondode dlCoreato Senoas ) Se.d Idcda Ejace6n W622 724.6 644.6 971.5 1117.2 1264.6 46414.

sul 63.1 767.2 676.1 1t.3 1.145,? 1.26,6 1.1031,26 Eecd6n y Ctueh

Edwecac nP Pals -BID (Pude RafSeehs a ewanls de SanEdureco6n) Sn. da Evaneadda y P E,paede Eduteaw Facildad 70.0 132.6 132.6 132,6 132.2 666.6EdecKcteS_cudolt I BIF Se. da Evmdin y Proprmodiee EdwcaEiys FSdsd 5.2 63.6 72,7 52,6 36.5 35.1 263.3E&dutn SeeedA I 41SF Snt de Ew dd yP PrenacdiEducalres Par 30.2 65.5 70,6 51.0 217.2Eduen ttndea -OR1 Sne do Pafrc telisa Pa'S 11.0 69.0 7t.0 62.0 55.0 2713,Eduecahe Stplo no Ulvwsrds aea BID Sn. de PeBkc U,nirslleds Pa' 50.0 50.0 50.0 50.0 2009MeduesmIb 54.., TaWeI,o de ApayeEduEeate Sac, da Evinsdln y Prepremadir Ed lis Fea_dad 14.6 151 16.6 3.6 3.7 64,1Plan da wasianoea Eduuens See. de Evaclbe y Poranedi Edueca Ft 30.0 500 MO 500.0 s00.0 too00 2 .766,IrsaglngltautryEids Cu*aSs Sn. a Cdun a Is Naddn Pfub dd 5.0 15.0 25.0 30,4 76.4Plan Nsdend ceIsstkewtrDspeia Se e Dapopes Probctdd 6.6 2,6 1.7 9.0 12.6 ¶9.7 45.6

SUs it* 662.1 676.1 o17' 666.2 III.6 4.426,17. Emol,o y Fome d0n de R.on Humems

Plan Nadee iOasdet See d Trbieo Pera' 330.0 315.0 315.0 320,0 320.0 1.606,Ro_areeunts da MUr* od Obr I -BID Sac d Cemeid a hwnlwehas DOSA 15.0 tt.6 73.6 35,4 ntM.R-wits aednobda Maeo. e Cbr 6 -MD Sea da Ceewele o hireeiee Pa' 20.0 62.1 66.0 u.s 2r7,1F_emsede E rtsctes -61RF See d Camearcto o benrske P.S 5.0 10.0 10.0 10.0 25,6_ubi" 15., 426,6 413,6 422,5 426,6 4n,6 t116.1

CU40RO N. 3.- PROGRAkA DE GRANDES PROYECrOS DE INVERSION EN DIENES Y SERVICIOS PUJL4COS Y EN RECURSOS ANOSZ InvsroO, Pk6hijkc

UNIDAD: mnIloes de pesosPERIODO. 199J- 199J

' w - . . . * ......

W... ....

dl E& t^ A .- * I' im t- i*i Ii t?§t k n . 7* Ja Vbimy Y Ur9a4snw

ForwxbN.aniddVlalvnds Sac deHdiends Ejijeam6n 956.0 915.9 943.0 9M0.2 1039.7 1091.7 4.900.4-e-lb U-W& I lRF Sec de Duso o Sodal E ,-s6n 03.0 12.0 1t.0DeMemUs Uw101 -SlAPF(S) Sec de Dsgnd Soci fubdki.d 10.0 15.0 20.0 30.0 30,0 165.hegrsnvsSoddss tluilstt BtCt(S) See d SDeswrovSaod Fedlbided 10.0 15.0 30,0 30,0 30.0 11U.0Pmgm Globb do Ow0 os U ,o -.0 Sft. dv Dsaw.s Soebt Ejead 26.6 45.0 20,2 65.2les can, Serviclos -BID See d. Desa Sodi t PvgfaoblAde 50.0 50.0 50.0 50.0 70.9Pr o7 eRleh Mudclpdd de In C tddde bduss Akes Prmhctindmd 5.0 40.0 40.0 5.7 90.7Plan Nac dv DO rqs uta6 V Regc*wadin delI b bus,a* de l Cnsarucddp Soa HjSOISCrvi N u EjciO 150.0 250.0 500.0 525,0 575,0 2.0.68hAoe 1.45.6 1.1142, 1.296, 1.6,2 1.714.7 1.762,3 7.5U63

. A4s Pobbl y SsnImndWd

Pl) NNldeAqm PoloShy Senanlonlb See ObrusPubbgsyCo _s*res E ,,-*n 25.9 56.5 106.1 138.1 7.? 21U,8 701.9AriPaI. I UIRF (1) See de Obrms Pblce yCanuedcaci.s E-duin 25.2A.av P.mbl.04 (PRONAPAC) -.10-SRF Sfe. de Ohug P0l6cm y CowAuM*adoms E ,cadn 1M0 40,0 o,00 60.0 73.1 233.1Ague Put" y Sawunwb MPRONAP).V Elp -DID (/) See de Obms P.bcas y Cw,cmdodue Eocamo6n 47.6Agua PoliNy Saow VI El" -6lO Sec dv Obhs Phais y ConuBwadons FaAVd 30.0 30.0 40.0 40.0 50,0 110.6

lIAISub 110.7 120n' 196. 238,1 2n4.9 211,1 112.W. Enoo Elco

CM Rdeallich Yaco N-0IRFPOTROS (m) Erdad Shudand Yedrvhe E,;On 4A6S. 212,9 212.9C*dwmce"lvPllde nPhLVA (21 P10 Plali La S. E ,adin 52.7 123.6 120.6ObmdvE _eyw y CC*a Hmlo bkaCue91 ,del VlWl See. deObrsPaNcmy Conuadcadon E ,aidh 27.0 12.0 21.0 As.SWOON 926.5 364,5 it's 236.8

13. T r -wpmI

Conodar Eqffdin NMi Sec dv Ohug Pumsy ConusiAdes E,eu6n 23.6 31.0 36.3 29.0 30.0 30.0 1U.2Canuda EmqAld6n Cm" See de Ohms P(60k y Coeubcadas Ejoaadb 29.6 J4,9 43.0 01.9 6.2 00.0 27o.5Conder Ewm%PN g Pon. Soc. dv Ohrs Pdbla y Camma*mclum E,nOICm 28.6 24, 30.3 35.2 37.0 40.0 167.1Cmndo EnSulmd6 Sur See deObr.sPdcus yConudcodoree E,ad6n 31.7 41.2 42.4 S11. 44.5 40.0 20.2Comdom dobldvrd S dee. dObo,Pess usCasu*donos Ejcuddin 21.S 262. 230.1 23*0 212.1 131.3 1672.Dossnl %Wa (3) See dv Ombs PuMka y Cona *codwws PWO 191,1 531.0 51.tRud MNec W40 See de Obrs P6bknyCsnuvdcdvW E ,abdEn 22.1 10.0 21.0 26.6 35.2 20.0 122.PM,n deVisldvg Prowino -SlAF Sec. de AwisIsida pe 1. Raeni Emn PFwAnda Fodld 20.0 e6.0 0o.0 120.0 120.0 4680Puanli Rosao .- Vilm See de Obm Pcir p CininlAdynes a.b11 20.0 20.0 20.0 20.0 u9ePuuiden de l Iu 6 'A oPalso Lb.vs (PW.Slb.Tnd, Ss o0 Os) Se dOv rs Paks yC _ Pin ti,g 30.7 22J, 3.27 111.JOhms dv ouesgOo..Rod de Ace" So. As Se.ded Obms Pabe y Cwudvodvue M.OW 65.4 88.8 132Lk*OSf*UCkWSVlIMFndv VW (4) See deHvcw,,d Ejeui,, 455.0 471.1 56.0 615.3 646.1 U8.4 2996.9Shdm 802.4 6062 1.147,5 11.9.7 1.416.?7 1.5065 Ss3.9Fe yocinleFucani Oral 5p $.A (2) FF.CC. Onal. ealpune SA E,aldb 36,0 4s.0 20.0 65.0SuA4 55.0 45.0 20.0 65.6

Puvin y Via$ N _,Ihoabuehs dv PLoshm.UMdeudamdbdq Patami -IC Set d. Tfn,sporl FPdliMad 27.4 75.7 0.08 62,6 6.0 u.4bnm-dv Ca nade NoveggoctUr Ml, Goada See. de Tinspous FadhOd 53.5 53.5 9.0 9.0 9.0 124.0COW de No "ad& Rbe Ale

0WU p S. de tT-r_apa PtS 6.0 10.0 9.0 2 0.oregb dv I VbA Na _g T7rc Stm.1`-0c6ne (Canal MW*) Sagec. de Puols y Viss Neges DieR. 2S.0 65.0 65.0 5s.0 2P.0

5sed 0e.9 164.2 12.6 1e56.0 154.0 744.4Am padn

hWisslradxodeA.rpuule EgadAMremOndev01efummimsr, Prnfdllcd 33.1 29.1 23.8 30.0 36.0 3.5 19.7Pim i mNsil dv a1-dhd, (7) Edbvd M" Goeral dv Is Fowzm AMma Phcddd 35.8 64,0 9.6Aeeshadvvadie ddl _gh,,. Nsdged dv Aarspaere -OIRF See. O4.6 de I Pmsend. PeS 2.0 5.0 5.0 12LAosggsmWAekbW dv Ud_m See. de Ohrs P y yCanamlcAdones Epaudn 13.5 a,3 10.1 2srSudeld 46,6 35.4 6.9 ".0 41.0 33.6 29.

U4,1 116,111 1.418.6 1.471. 1.814.3 1A.6 7.36s

CUADRO Nr J.J.- PROVRANA DE GRANDES PROYCTOS DE INERSION EN BtENEs r SERw cios PutLIcOS rEN REcIRsOS HuUMANOSS. hwwiAdn P060cf

UNlOAD: mJ11'. d pesoJPERIODO: 1995 - 1999

14 Ewlogoa y Media Antierle

Destrolo Ind8uclont del Medo Amefnte -egD Sec de Recuros Neturmles y Anbkerwe Huimio E(ecuc6n 2.2 2.2 5,0 5.8 15.0 9,4 37,4Potuwoin batail y Mansgo de Despwdlos So1idos -BIRF Sac de Remwos Natuels y Adlralre Humeto Idea 40,0 40,0 so.Prot cdon del Ozono IRF4TROS Sec. de Rearm Netnoaes y Abdlenre Humono P.fblidd 2.0 10.0 10.0 10.0 32t6Eoolcoc MCBA -10 Mun,dpidad de is Ciudde d Buenos Area Pedtt 20.0 20.0 20.0 20.0 80.0SarenriodelRlo Mtaua-Riachuslo-BID Sec deObmsPubkas yComz4cadones Facbblided 1.1 8.2 29,7 100.0 141.0 19ff1 474.0

Subholi 3.3 10,4 U"7 135,1 226,0 274,5 703,415. Deswrloo Tocnol6glco

Modentkadnm 7 uatl6gie I 411D Sec de Pograrned6n Ecors5ml Ejecud6n 20,0 30,0 40,0 50.0 50.0 160.8Modwr,z&d6n Teacoldgic 11 U-BD Sec. de Progrtmed6n Econnks Pedll 20.0 30.0 60.6PFogrwnadelnvestog.d6iny Desurvolo Nuclear Confifer Nadonal de EnwgIeAldn*a EoJudn 107.8 15.9 15.6 28.1 36.9 63.8 160.4Plan Eapadel Nocnal ConlSdonNadonal de AolMdado. Epedtes Ejadul6n 8.5 135 198 31.9 41.0 54.7 160.7Redde lnst4utosdelnvesbgad6nClenl-TnmsmfTom AreaProducddrn Sec. deClerncylecnrobgle EeaxdMn 11.5 7.0 8.7 10.2 10.0 100 45.9DeswrroNoyTransfrwnia de Tcnologla INTA INTlN ItNDEP, INPRES. Otros Elaaed6n 184 21.0 42.1 38.0 30.? 40.0 112.0

SuLtotal 144.0 76.1 116.0 14U.2 1676 24e,1 766.616 AgrIojura

Pequefos AgtilAtore. NEA I -BID-OTROS Sec de Agrllhur. Garader y Pewac Ejecuo6n 4 2 5.0 5.0 2.0 12.0Peui AVItorea NEA II -BID-OTROS Sec de Agtkltai, Gadeslay Peew Pettl 2.0 5.0 5.0 5.0 17.6Progrnm, de Moderrizad6n Serv. Agrpeajuios Nadonalos -BID-BIRF Sec. de Agrkx*lkx. Gonedle y Pes Efecuo6n 20.0 20.0 20.0 23.2 63,2Progra do SwvIkosAAgcolasPw*indleos-BID-OlRF Sec do Agrltatura Garaderia y Pesea Pr,dblidad 20.0 80.0 0.0 80,0 100.0 320.0Oearvollo Forestal -BRF Sec do AgruIatun. Ganaduey Pesca F tbilidad 30.0 30.0 30.0 30.0 120,0Pltn Nedonel do Riego y Drunee Sec de Obras Pubbices y Comsrrcacones E 6d6n 5.6 8.6 9.7 2.1 3.0 0.5 24.4

8os Submeidionales Consejo Feder de Inversiones (C F I) Ejecuctn 6.1 12.9 12,9 12.9 44,9Cunca dl Pklcomayo Sac deObrasPPolicasyComurlcadones Ejecucidn 4.8 12.9 8.5 21,4

S,Molai 31 72.5 148,4 135,6 1301.,6 13i,5 62617. Mlnesla >0

Poy Apoyo ml Sedor Mnwo Argenno (PASMA) -BIRF Sec de Minerd Facbbided 0.8 22.8 9.8 8.0 4.9 4.5 48,0Dem,alo Mkwe Sec. de Mied. E,Wdon 3.4 4.0 6.6 13.6 13.S 13.6 $1'3

Sulol 4,1 25,1 16,4 1,6 1i,6 16,0 *,318. hidintga. Comerdo y Serldog

Flsnwidaimnl de Mlave nnnenlos i -ID Sec. de Progwmcdon Econdnica Ejeoud6n 20.0 20,0 8,0 28.0FinridarvenwtodeMlrodermpr.mlarlos 11 -BID Sec de PmgrwddnEoon Etmnk Feeildad 200 30,0 300 30.0 110.0Finanri"arto lrnveri6nPadv-BID-BIRF.EXIMBANK Sec deConweoelnverrsom Diseflo 20'0 158,0 256,0 256,0 256S0 256.0 1.1U0,0Progrne doe Apoyo a la Reesuc0xradon Empr.eadda Sec de Coffwmdo e Inversiones Perl 40 0 80o0 ¶00.0 100 0 300.0Proyedo pars of Desarrollo del Mecado de CaItes I .BIRF Sec de Comerdo e Inversiones Duslio 50 0 50.0 50 0 50.0 50.0 260,0Pmyedo pars et Desarrollo de Mwcados do Cepsiales 11 -BIRF Sec de Comerdo a Inversies Perfil 80.0 80,0 90.0 260,0

SaMOlal 40,0 22e,0 A4,0 470,e 515,0 62,e 2.11e,0

CUADRO N J... -PROGRAMA DE GRANDES PRO ECrOS DE INVERSION EN SIENES r SERVICIOS PUBLICOS rEN RECURSOS HU/uANOS±. Inyef3I&I PafibIcUNlDAD: mwlbris deppsosPERIODO: 1995- 19m

19 Reforma PtThinddi y Deswrrdoo Regional

Praorar de Inveniun pars o Desarrollo Reogion -BID Sec. de Prograiado6n Economica Perfil 100.0 100.0 100.0 300,0Prog.de Aooyo Reconversi6n Produiva Econlon las Regeonalei -BIRF See. deoP ogrenmoed Econ6ernre Idea 5.0 10.0 50.0 85.0 1t0,0Dosnolo Munbwlpai l -BIRF (5) Sec. de Desrofot Sodal Faditbldad 10.0 15.0 20.0 300 30.0 106.0invenlones Sodales Muridpales il-BID(5) Sec do DesaTolo Sodal Facitbrdad 10.0 15.0 30,0 30.0 30.0 116,0Srneonwento Econ6mico-Vinandero de lts Provinca (Pdes 1) -BID-BIRF Sec. de Asistenda pars ls Relorma Ecn. Provind Ejecuc6n 38.7 153.0 153.0 t53.0 45O,0Sanramwoo Ecor n1co-Financaro de las Proindas(Pcds. 1I) -BIRF Sec do Asistenda partIs Reforms Econ Pronnd Factibilided 15.0 200,0 200,0 80,0 75.0 670.0Rehebiul6ton de inurndadones -BIRF Sec de Asisiencia parn Is Refornm Econ. Provind Ejecuc6n 13.1 158.0 158.0Proeccdin contn inundmciones -OlRF Sec de Asistenda pars Is Reforms Econ Pronvind Prneftibilidad 50.0 120.0 1W.0 120,0 130.0 600.0Progrcu do Refomnn EcrdnaFe Provincil EIRF Sec de Asilstencia parsle Reforrns Eon. Proolnd Fadibilidad 300.0 300.0 600,0Stblbta 167,8 6",0 606,0 693,0 410.0 360,0 3.067,0

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THE NATIONAL SYSTEM FOR PUBLIC INVESTMENT (SNIP) AND NATIONALBUDGET FORMULATION

17. The system for public investment fits well into the overall resource allocation system. Themanagement of public resources in Argentina is based on a National Budget System by programbacked by a National Accounting System of mixed nature (cash-based for revenues and accrual-basedfor expenditures) and a Treasury System which, in the short term, will consist of a single account atthe National Bank ("Banco Naci6n"). All expenditure entities (about 100) in the central government(including agencies) report detailed accounting transactions to a central system (SIDIF, see below)which are checked for consistency against the budget. The three stages of an accounting movement(budgeted, committed, and paid) are registered in the the central system. Eventually it is expected thatdetailed data will be processed in a decentralized fashion by the expenditure entities, which wouldsend only aggregate data to the center.

18. An overview of the Integrated Financial Information System (SIDIF) can be seen in thedrawing below. The four controlling offices of the system are: the National Budget Office (ONP),National General Accounting Office (CGN), National Treasury (TGN) and the National Public CreditOffice (ONCP).

19. In addition to financial data, the system requests performance data from projects; however,the lack of a project evaluation-oriented culture in the expenditure entities is shown by the emphasison the measurement of inputs rather than results, which precludes the measurement of the efficiencyof investment and its impact. It is this next step which the proposed project will address.

The National Public Investment System

20. Law 24354 of August 1994, created the National Public Investment System (SistemaNacional de Inversiones NPblicas, or SNIP), and assigned the responsibility for the coordination andmonitoring of the system to the Secretariat of Economic Programming (SEP) in the Ministry ofEconomy and Works and Public Services (ME). Operational responsibility corresponds to theNational Directorate for Public Investment and Project Financing (DNIP), which depends upon theSEP. This law gives a formal framework to public investment decision-making, concentratinginitially on capital expenditures but affecting potentially other public investment (i.e., social andProvincial).

21. Primary responsibility within the system rests with the executing agencies within theNational Public Sector. Each agency is in charge of the identification, preparation andimplementation of projects in its area financed totally or partially with funds from the NationalTreasury. To this effect, the law requires the creation (if it does not already exist) within eachgovernment agency of a unit to be responsible for such tasks.

22. DNIP has primary responsibility to:

(i) Establish norms governing the assignment of responsibilities for developing aNational Public Investment Plan and its constituent investrnent project proposals;

27

(ii) Coordinate the formulation of the National Public Investment Plan, NPIP(responsibility for this function is lodged in the Direcci6n de Inversi6n NPblica (DIP)within DNIP);

(iii) Organize and maintain an up-to-date inventory of investment projects (BAPIN); and

(iv) Supervise the quality of ex-ante and ex-post project evaluations for projects that areselected for inclusion in the National Public Investment Plan.

23. Individual line agencies have primary responsibility for preparing investment projectproposals. This is required for all national government agencies and all projects receiving financialaid from the national govemment. Provinces and the Municipality of Buenos Aires are encouraged toadhere to the system standards. The responsibilities of the agencies are to:

(i) identify, formulate and evaluate their project proposals following the guidelines andmethodologies established by DNIP;

(ii) create and maintain up to date an inventory of their projects;

(iii) supervise the physical and financial aspects of the execution of their projects;

(iv) perform ex-post evaluation of their projects; and

(v) maintain communication with and provide information required to DNIP.

24. The Secretariat of Finance (Secretaria de Hacienda, including the National Budget Officeand the National Directorate of Projects with International Organizations) has primary responsibilityfor coordinating the proposals for budget allocations to the projects that constitute the National PublicInvestment Plan, including negotiations, administration and control of public credit (both internal andextemal). Finance and DNIP exchange data on project status, accounting and financial information.

Organization of the DNIP

25. DNIP is composed of three Directorates, one Databank Unit and a Pre-investment Unit (seeChart below) with 55 staff, of which 14 are administrative personnel and 9 vacancies which will befilled later as the National Investment System begins to operate in full. The organization intoDirectorates is stated in the DNIP constituting Decree; the division into units is an internal measure.

26. The Directorate of Project Analysis provides technical assistance to Government projectpreparation units and to the other areas in DNIP. This directorate has three units whoseresponsibilities include:

(i) the development and updating of project preparation and evaluation methodologiesand the calculation of shadow prices (Methodologies Unit). This unit has twoprofessionals who have prepared basic guidelines using least cost criteria (for somecases, such as transport, cost/benefit analysis is required). More complexmethodologies have not yet been developed, but it would have been premature to do

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so unless accompanied by training and technical assistance. These staff will workdirectly with the project in the development of the more detailed methodologies.

(ii) the technical review of projects in prepation (Control Unit). In the future, about 50%of projects recorded in BAPIN will be selected for a technical review to ensure thatguidelines for project preparation and analysis are followed. The depth of the reviewwill depend on the complexity and importance of the project, and also on the qualityof its preparation (for example, at present projects presented by Transport areconsidered well prepared and therefore not reviewed in depth). Today, only one staffhas this responsibility, as only about 20% of the projects presented (about 80annually) are accompanied by sufficient information to permit their revision. Asguidelines are disseminated and training given, all projects will eventually be properlydocumented. In the medium term, one and possibly two staff members will be added.In cases of overload or in cases requiring specific expertise, the review will be carriedout by consulting firms.

(iii) evaluation of project impact (Evaluation Unit). This unit has not yet been formedgiven the present absence of an evaluation culture in investments and expenditures.One staff will be hired, to coordinate work on evaluation methodologies and efforts tomeasure impact of on-going projects (see project description). Another staff may joinlater depending on the workload.

(iv) the organization, initiation, maintenance and administration of a permanent system fortraining and information dissemination related to project preparation and evaluationmethodologies (Information Dissemination and Training Unit). Two staff work in thisunit; they will work full-time with the project, coordinating training and ensuringquality. This unit is not expected to grow.

27. The Directorate of Public Investment is in charge of liaison with other parts of government.It has three units whose responsibilities include:

(i) the support of the creation of and relationship with project execution units(Institutional Relations Unit). At this initial stage in the implementation of theInvestment System, this task consists mostly of informing staff about the SNIP lawand the workings of DNIP and the investment system. Two staff work in this unit;after three years the work is expected to decrease considerably as communicationswith agencies will become more technical; one staff will be reassigned.

(ii) support of projects of national interest (Project Unit). This unit assists agencies inthe identification and preparation of projects considered to be of national interest.This unit has two staff working on 80-90 projects a year. About 20 projectsreceive substantial inputs, with about 10 of these reaching the project stage. Thisunit is not expected to grow.

(iii) review of general, sectoral and regional medium and long term government strategies,verifying that proposed investment projects are consistent with these strategies and

29

with national priorities (Strategy Unit). This unit has one staff; it is expected to growby two staff as sectoral analysis make more use of results from evaluation techniques.

28. The Directorate of Financing and Cooperation's main responsibility is to assist and monitorprojects financed (partial or in full) by intemational credit institutions or other sources withoutsupport from the National Budget. It has two units:

(i) the Finance Unit, which inter alia coordinates extemal financing with publicinvestment priorities and assists all project preparation units on external financingaltematives. This unit today is mostly concemed with IDB and World Bank projects;it is expected to expand to include some bilateral financing. This unit has one staff; itis expected to grow to two staff

(ii) the Promotion Unit, which assists other government units in obtaining extemalfinancing and/or technical assistance. This unit has one staff. As projects for extemalfinancing are increasingly prepared locally, this unit's tasks will increase and anotherstaff may join the unit.

29. The Project Data Bank (BAPIN) is concemed with the creation and maintenance of an up-to-date inventory of all public projects with detailed information on projects including execution. Thepre-investment module is operational; the project execution monitoring module is designed but notoperational; and the evaluation module has yet not been established. It has six people; it is notexpected to grow. It is intended to communicate with the central SIDIF system to exchangeinformation on project execution.

30. The Pre-Investment Unit is responsible for the implementation of the Multi-Sectoral Pre-investment Program, carrying out or financing and supervising inter-sectoral, supra-regional ornational studies. This unit was created and financed through an IDB loan and has eight staff.

Role of the National Public Investment Plan within the Formulation of the National Budeet

31. For a project to be incorporated into the National Public Investment Plan (NPIP), the"owner" agencies must first send basic information to DNEP for the project to be inputted into theproject inventory (BAPIN). The information sent depends on the state of preparation of the project,which starts as an "idea" and goes successively through "profile", "pre-feasibility" and "feasibility"stages. Projects are checked against global, sectoral or regional policies, the availability of pre-investment funds verified, and the technical quality of preparation reviewed. A positive evaluationwill result in the preliminary incorporation of the proposed project into the NPIP. Technicallyunreliable projects are discarded or sent back to the originating agency for review.All such projectsmust be presented before June 15 for incorporation into the following year's NPIP.

32. Budget formulation starts in April each year with training of the personnel involved and theconstitution of the Budget Preparation Support Group (GAEP', see Budget Preparation Schedule

Subsecretary of Budget, Subsecretary of Macroeconomic Programming, Subsecretary of Financing, Director oftthe National Budget Office,National Director of Research and Fiscal Analysis, National Director of Fiscal Coordination with the Provinces, National Director ofEmployment and Public Sector Salaries. Director of the National Public Credit Oftice, National Director of Projects with International

30

below). The GAEP uses information such as last year's expenditures, national and sector policies, thefiscal targets agreed with the IMF, the five-year investment plan, macroeconomic projectionsprepared by the Macroeconomic Unit in the Secretariat of Economic Programming and theinvestment proposals prepared by the different agencies and put together by DNIP.

33. GAEP reviews the availability of resources and deternines the budget ceiling for eachagency, both for operational and investment resources. The draft proposal is submitted to each agencyand is discussed by the Cabinet. These discussions often involve the agency concemed and theBudget Office, and at times the President. Once agreement has been reached, each agency prepare'sits detailed draft budget bill proposal. In discussions with DNIP, projects are prioritized and theNational Public Investment Plan prepared.

34. These proposals are discussed and agreed with GAEP, which prepares the aggregate budgetbill which is presented by the President and the Minister of Economy to Congress. The variousCongressional Sectoral Commissions discuss their sector with the GAEP's technical support staff.Commentaries are then put together for the Executive Branch. Congress approves the [modified]Budget enacting it into Law. Only in the last three years has the Budget been prepared and presentedon time. The 1996 preparation and presentation schedule is attached below as an example.

Organizations. National Director of National Assets, National Director of Public Investment and Project Financing (DNIP). General Coordinatorror the Growth Fund (CECRA). Director ot Policies and Budget Regulations ot the National Budget Office (secretary for the GAEP).

Ministryof Economy andPublic Works and DN.LP. OrgiwzadonChart

Services(ME)

Secretariat of EconomicProgramming

(SEP)I I~~~~~~~

National Directorate ofPublic Investment and

Project Financing(DNIP)

[IMmiauIa

| General Coordination(I1 Prof"al

Directorate of Project Directorate of Public BAPIN Directorate of Financing Pre-lnvestment UnitAnalysis Investment [5 Pofua, I lk and Cooperation [I s

Methodologics Institutionsl ing

Evalucation Pron,tion Techical[I1 Sbtd 2Sql Isn Area

..... ...... _ [3 Sb4 I

|Control || tteis|Ck

Difiusion & |_Acutn

_ EducatLo |i

Overview of the Integrated Financial Information System -S I D I F-Secretariat of Finance: Controlling Offices

BCRA Z |CGN TGN NCPTAXPAYER

SUBSYSTEMS AND THEIR MODULES

JL iID I -o * Buds': .Fornisdo;t(on 'BudpetexpoL tion. rventes Pavme nts Public DebtSetting of revenue goals and i.d ex'pu nd tures * Payment priorization Operations -

expenditure ceilings A SIGADE -

* Preparation of Budget BillN* ANA * Programning of physical A

and financial execution

Eva luation of 'H.';-3 progre;/

Central Database* Human Resource Management

System(SIRHU)

TRANSSA F (Te1eo,mnmZic,tiions Ptiet1 ge)

' Budget Formulation ic ('eoo'ak

Budget ExeLution ^ Asset Management OAT' (, .. ,n,J;.. ;gif.i

^ Procurement and Contract Ci 'laA'iior(J;oerfri sV)ei@ Financial Execution j Notion, I ie.;ua

k J G3A.>.~~~~~~~~~~~~NI-': N;w:ionaiAccor;enxig 0/fixD_Cri. Eneral Ta.x Direclorate

_ C entralt AdiinistrationDecentralizedInstitu.1v. sat ions

Central Administration Decentralized lnstitutions

33

1996 Budget Preparation Schedule

Activity Begin End

Training of National Budget and Executing Unit Personnel April 3 June 23

Constitution of GAEP April 10 April 12

Definition of the macroeconomic context April 4 April 21

Definition of general budget policies April 4 May 5

Request for information and preparation of sectoral budget April 4 May 5policies