Technology Upgrading Program

                              ARGENTINA



SECTOR:              Science and Technology

PROJECT NAME:        Technology Upgrading Program
                     (802/OC-AR)

TOTAL COST:          $190.0  million

FINANCING:
      IDB            $ 95.0  million
    LOCAL            $ 95.0  million

DATE OF APPROVAL:    December 16, 1993

GENERAL DESCRIPTION: The basic purpose of this program is to
                     help develop and strengthen the
                     competitiveness of Argentina's productive
                     enterprises through technological
                     modernization that will permit an increase
                     in productivity.  This modernization will
                     also promote productivity and efficiency in
                     the supply of goods and services by the
                     country's public sector.  

                     The specific objectives are to: (a) promote
                     activities in the technological innovation and
                     modernization being carried out by companies
                     producing goods and services for the market; (b)
                     develop the technological projects of public
                     entities providing technology services to the
                     productive sector; (c) strengthen the linkages
                     between existing research centers and productive
                     enterprises of all kinds; and (d) make the
                     research being carried out by Argentina's
                     scientific community more relevant to the
                     country's economic and social advancement. 

                     The program consists of the following
                     subprograms: (a) the Argentine Technology
                     Development Fund (FONTAR), whose purpose is to
                     contribute to the technological modernization of
                     local productive enterprises through 
                     specific financing for technological research
                     and development projects; and (b) technological
                     innovation to establish links between research
                     centers and productive enterprises and to
                     finance science and technology development
                     projects presented by public institutions.  This
                     subprogram will be executed by the Science and
                     Technology Secretariat and the National
                     Scientific and Technical Research Council.

CONSULTANTS:         Specialists will be engaged to gather
                     information required for the subprograms for the
                     purposes of technical and economic evaluation.

CIVIL WORKS          Construction will be limited to minor works,
                     such as additions, repairs, and remodeling.

GOODS AND EQUIPMENT: No goods or equipment are to be procured in
                     connection with program execution.

EXECUTING AGENCY:    Ministerio de Economía, Obras y Servicios
                     Públicos

ADDRESS:             Calle Bartolome Mitre, Primer piso
                     Local 138 Buenos Aires, Republica Argentina
                     Telephone: (54-1) 334-0922