The World Bank 1818 H Street O MC 2) 47 -1 000 INTERNATIONAL BAN) FOR RECONSTRUCTION AND DE\ ELOPMEN T Washington, D. ress: INTBAFRAD INTERNATIONAL DEVELOPMENT ASSOCIATION U.S.A. ress: INDEVAS February 26, 2013 Mr. Manfredo Roberto Marroquin Presidenit Acci6n Ciudadana Avenida Reforma 12-01 Zona 10 Edificio Reforma Montifar, Nivel 17 Of. 17-01. Republic of Guatemala Re: Grant No.TFC96 [47 Guatemala: Dutch Grant for Promotion of Public Participation in th.- Pablic Financial Management Oversight Project) Additional Instruction: AMENDED Disbursement Letter Dear Sir: I refer to the Grant A grcemc nt ("Agreement") between the International Bank for Reconitruction and Development ("Wc rld Bank"), acting as administrator of grant funds provided by Netnerlands, and Acci6n C.ud7dara (the "Recipient") for the benefit of the Republic of Guatemala ("Member Country"), for the above-referenced project, dated August 25, 2011. The Agreement provides that the World Bank may issue additional instructions regarding the withdrawal of the pr6ceeds of I DF TF(196147 ("Grant"). This letter ("Disbursement Letter"), as revised from time to time, const itul es th Le additional instructions. This letter is the First Ro-stztemnt of the Disbursement Letter dated August 25, 2011, for the above referenced project, restaling Section II (vi) to increase the DA ceiling from US$50,000 to US$120,000 as peT borrower's requist dated February 1st 2013. In addition, the address where withdrawal application should he sent is stated in Section II (ii) has also been updated. All other provisions and attachirents o the Disbursement Letter dated August 25, 2011, except as amend-d, shall remain in force mc eff ct. The attached World Bc,ank Di6 bursement Guidelines for Projects, dated May 1, 2006, ("Disbursement Guidelines") (Attachi.lent 1), are an integral part of the Disbursement Letter. The manner in which the provisions in the Disbursement Guidelines apply to the Grant is specified below. Sections and;;ubsect ons in parentheses below refer to the relevant sections and subsections in the Disbursemont Guidelines and, unless otherwise defined in this letter, the capitalized terms used have the meanii.gs ascribed to them in the Disbursement Guidelines. I. Disbursement Arrangeme its (i) Disbursement Methods (s!cton ?). The following Disbursement Methods may be used under the Grant: * Reimbursement * Advance * Direct Payment (ii) Dis,5ursement Deadline Date (subsection 3.7). The Disbursement Deadline Date is four (4) months after the Closing Dat- spec fied in th- Grant Agreement. Any changes to the Disbursement Deadline Date wil' be not fled by the World Bank. (iii) Disbursement Conditions (ubect on 3.8). Please refer to the Disbursement Condition in the Grant Agreement. II. Withdrawal of Grant Proce,ds fi) Authorized Signatures (subs:!ction..1). A letter should be furnished to the World Bank at the address indicated below pro vidIng he name(s) and specimen signature(s) of the official(s) authorized to sign Applications: The Worlc Bank 1818 H St -eel, N. W. Washingtun, C 20433 United States of i,merica Attention: C. Fel pe Jaramillo, Director (ii) ApIdications (subsections 3.2 - 3.3,. Please provide completed and signed applications for withdrawal, together with suppoi ting; do -uments to the address indicated below: Ba-co Mundial Selor Conerc ial Norte Quadra 02, Late iA Edificio Cororat:- Financial Center 70 amdar 70712-900, Erasi ia, D.F. Brazil Attention: Loan )epartment (iii) Electronic Delivery (subsecion 3.4) The World Bank may permit the Borrower to electronically deliver to the Wo -ld Bank Applications (with supporting documents) through the World Bank's Client Connectio -, web-based portal. The option to deliver Applications to the World Bank by electronic mean; ray t e effected if: (a) the Borrower has designated in writing, pursuant to the terms of subparagraph (i) of this Section, its officials who are authorized to sign and deliver Applications and to ec ,ive secure identification devices ("Tokens") from the World Bank fbr the purpose o: delivcring st ch Applications by electronic means; and (b) all such officials designated by the Borrowcr have registered as users of Client Connection. If the World Bank agrees, the World Bank will r rovi de the Borrower with Tokens for the designated officials. Following which, the designatec of fici ls may deliver Applications electronically by completing Form 2380, which is accessible through Client Connection (https://clientconnection.worldbank.org,. The Borrower may continun to exercise the option of preparing and delivering Applicatibns in paper form. The World Bank reserves the right and may, in its sole discretion, teriporari y or permanently disallow the electronic delivery of Applications by the Borrower. (iv) Terms and Conditions of Uve ofT >kens to Process Applications. By designating officials to accept Tokens and by choo3in, to deliver the Applications electronically, the Borrower confirms through the authorized si., nat ry letter its agreement to: (a) abide by the Terms and Conditions of Use of Secure Ide vtificati on Devices in connection with Use of Electronic Means to Process Applications and Sapporting Documentation ("Terms and Conditions of Use of Tokens"); and (b) to deliver the "enns a ad Conditions of Use of Tokens to each such official and to cause such official to abide by those t :rms and conditions. (v) Minimum Value ofApplication, (si,bsection 3.5). The Minimum Value for Direct Payments or Reimbursement Applications s tS$20,000. (vi) Advances (sections 5 and 6) to Acc 6n Ciudadana. * Type ofDesigniatedAc7ount (pubsection 5.3): Segregated. * Currency ofDesignated Acco.mt (subsection 5.4): US Dollars. * Financial Instilution at fwhic the Designated Account Will Be Opened (subsection 5.5): Banco Incustrial, S.A. * Ceiling (subsection 6.1): US: 120,000. III. Reporting on Use of Grant Procecds (i) Supporting Documentation 'sectior, 4). Supporting documentation should be provided with each application for withdrawal is ,et o it below: * For requests for Reim,urvem ?nt. o Summary S tatemert of E> penditures with records evidencing eligible expenditures (e.g., copies of receipts, ,upplier invoices) for payments valued at US$30,000 or more; o Custom Sta:ement )f Expc nditures for Public Promotion Activities; and o Statement of Expelnditure 'or all other payments. * For reporting eligible exjend Ftures paidfrom the Designated Account.: o Summary Statemeat of Expenditures with records evidencing eligible expenditures (e.g., copics of receipts, supplier invoices) for payments valued at US$30,OCO or more; OFFICIAL USE ONLY Prepared by: Fernanda Balduino, C'RL D & Patricia Hoyes, CTRLD Cleared by: Antonio Blasco, TTL Jimena Garrotte, LE(OJL3 o Custom Statement cf Expe:iditures for Public Promotion Activities; o Statement of Expen liture f r all other payments; and o Designated Accoun: A:tivi ty Statement, and, a copy of the Designated Account bank statement. * For requests fo, Direc Paymont: records evidencing eligible expenditures, e.g., copies of receipts, supplier inoices. (ii) Fiequency of Reporting Eligibl? Expenditures Paid from the Designated Account (subsecvton 6.3): Quarterly. IV. Other Important Informat ion For additional inform:iticn on disbursement arrangements, please refer to the Disbur;ement Handbook a iailable on the World Bank's public website at http:/ lvw.worldbank.org a: id is secure website "Client Connection" at htp:/Aientconnection.worldbark.crg. Printed copies are available upon request. If you have not already lore sc, the World Bank recommends that you register as a user of the Client Connection websit, (hg. /clientconnection.worldbank.org). From this website you will b: able to download Applic itions, monitor the near real-time status of the Grant, and retrieve related policy, f inancia arLd p: ocurement information. For more information about the websitc and registration arr;ngemerits, please contact the World Bank by email at . If you have any querios n rolation to the above, please coatact World Bank Loan Depariient by email Ioa-lcr@A wcrldb nk.orag and using the TF number and project name as reference. Yours sincerely, Patricia Hoyes Snior Finance Officer Worl I Bank Loan Department