Correo Argentino S.A. Summary Of Project Information (SPI)       Project Name    Argentina-Correo            Region    Latin America        Sector       Project No008588   Projected Board DateDecember 17, 1998   Company NameCorreo Argentino S.A.   Technical Partner and/or Major Shareholders    	Shareholders: Sideco Americana S.A., Itron S.A., Banco de Galicia y Buenos Aires S.A. and employees through an Employee Stock Ownership Plan    Technical Advisor: British Post Office    Project Cost Including proposed IFC investment    344 million US Dollars     Investment plan    Handling equipment			57.7 mn   IT & communications			68.5 mn   Refurbishment				60.2 mn   Employee training and severance 	120 mn   Working capital				38 mn     Financial plan    Equity					86.4 mn   IFC equity (or quasi equity)		15 mn   IFC A loan					60 mn   IFC B loan					54 mn   IADB A loan					75 mn   IADB B loan					54 mn    Location of project and Description of site    	All investments will benefit Correo Argentino''s existing offices and operations.  In addition, Correo is constructing a new mail sorting plant in the industrial zone of Monte Grande near Buenos Aires'' international airport.      Description of Company and Purpose of Project    Correo Argentino S.A. is making investments in a new mail sorting plant for Buenos Aires, information systems throughout the company, upgrades to its mail handling centers and its post offices, and implementing a voluntary retirement program.      	Correo Argentino S.A. holds a 30-year concession as provider of the official mail in Argentina.  The investments are part of a program to make Correo Argentino a cost efficient service provider and to make the company competitive in a deregulated market.  Economic activities in Argentina will be enhanced by the existence of a reliable nationwide mail service.      	This is the first full privatization of a postal company in a deregulated postal market.  IFC''s presence will provide comfort to other lenders in this transaction and the success of this concession will provide a model for other countries planning some form of privatization of mail services.      Environmental Category and Issues    	This is an environmental and social review category B project.  Issues included implementation of an environmental management program that encompasses facilities management and employee training and health and safety programs, and labor issues related to the voluntary retirement program.  CASA has established a formal health, safety and environmental affairs department and have assigned full-time staff to implement environmental, training, and health and safety programs in each of the operating regions.  An independent audit was used as the basis for a general restoration of premises and equipment.  CASA is carrying out a voluntary retirement program as a significant component of the investment program.    The  is  from the InfoShop.       Host country location of environmental documents    1.  Sarmiento 151, 5th floor library,        Buenos Aires   2.  Vicente Lopez 448, Monte Grande   3.  Alem 14, Lomas de Zamora      Date SPI sent to InfoShop November 17, 1998   This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporations Board of Directors.  It is provided for the purpose of enhancing the transparency of IFCs activities and should not be construed as presuming the outcome of IFC Board consideration.    For Additional Information contact:  Corporate Relations Unit -   telephone: (202) 473-7711   facsimile: (202) 974-4384  Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).