OFFICIAL 10 V1 The World Bank DOCUMEtT&. (202) 473-1000 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Washington, D.C. 20433 Cable Address: INTBAFRAD INTERNATIONAL DEVELOPMENT ASSOCIATION U.S.A. Cable Address: INDEVAS April 30, 2015 Ing. Juan Bosco Marti Ascencio Titular de la Unidad de Asuntos Internacionales de Hacienda Secretaria de Hacienda y Cr6dito Pilblico Insurgentes Sur 1971, Torre III, piso 3 Col. Guadalupe Inn 01020 M6xico, D.F. Lic. Juan Pablo Newman Aguilar Director Adjunto Financiero Nacional Financiera, S.N.C. Insurgentes Sur 1971 Edificio Anexo, piso financier 01020, Mdxico. D.F. Ing. Jorge Rescala Pdrez Director General Comisi6n Nacional Florestal Perifdrico Poniente No 5360, Col. San juan de OcotAn CP 45019 Zapopan, Jalisco M6xico Re: United Mexican States: Forest Carbon Partneship Facility REDD+ Readiness Preparation Support (Grant No. TF010261) Additional Instructions: AMENDED Disbursement Letter * I refer to the Letter Agreement ("Agreement") between the International Bank for Reconstruction and Development/International Development Association ("World Bank"), acting as trustee of the Readiness Fund for the Forest Carbon Partnership Facility, and the United Mexican States (the "Recipient") for the above-referenced Readiness Preparation Activities, dated March 19, 2014. The Agreement provides that the World Bank may issue additional instructions regarding the withdrawal of the proceeds of Grant No TF010261 ("Grant"). This letter ("Disbursement Letter"), as revised from time to time, constitutes the additional instructions. This letter is the First Restatement of the Disbursement Letter dated March 19, 2014 for the above referenced project, restating Section III, paragraph (i) to include a customized SOE for Category 3. This restatement is consistent with the Recipient's request dated April 19, 2015. All others provisions and attachments of the Disbursement Letter dated March 19, 2014, except as amended, shall remain in force and effect. The World Bank Disbursement Guidelines for Projects, dated May 1, 2006, ("Disbursement Guidelines"), 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 subsections in parentheses below refer to the relevant sections and subsections in the Disbursement Guidelines and, unless otherwise defined in this letter, the capitalized terms used have the meanings ascribed to them in the Disbursement Guidelines. According to the Article III, Section 3.01 of the Annex of the Grant Agreement, the Recipient shall cause Nacional Financiera, SNC (NAFIN, as financial agent), to withdrawal the proceeds of the Grant. Therefore, these additional instructions must be understood to be directed to NAFIN as the Recipient's representative and direct responsible of the withdrawal of the proceeds of the Grant, including, without limitation, the reception and utilization of Secure Identification Credentials (SIDC). I. Disbursement Arrangements (i) Disbursement Methods (section 2). The following Disbursement Methods may be used under the Grant: * Reimbursement * Advance (ii) Disbursement Deadline Date (subsection 3.7). The Disbursement Deadline Date is 4 months after the Closing Date specified in the Grant Agreement. Any changes to this date will be notified by the World Bank. (iii) Disbursement Conditions (subsection 3.8). Please refer to the Disbursement Condition(s) in the Grant Agreement. II. Withdrawal of Grant Proceeds (i) Authorized Signatures (subsection 3.1). A letter should be furnished to the World Bank at the address indicated below providing the name(s) and specimen signature(s) of the official(s) authorized to sign Applications: Banco Mundial Insurgentes Sur 1605 Piso 24 San Jose Insurgentes 03900 Mdxico D.F. M6xico Attention: Gloria M. Grandolini, Director, M6xico and Colombia Latin America and the Caribbean Region (ii) Applications (subsections 3.2 - 3.3). Please provide completed and signed (a) applications for withdrawal, together with supporting documents to the address indicated below: Banco Mundial Setor Comercial Norte Quadra 02, Lote A Edificio Corporate Financial Center 70 andar 70712-900 Brasilia D.F., Brazil Attention: Loan Department (iii) Electronic Delivery (subsection 3.4) -The World Bank may permit the Recipient to electronically deliver to the World Bank Applications (with supporting documents) through the World Bank's Client Connection, web-based portal. The option to deliver Applications to the World Bank by electronic means may be effected if: (a) the Recipient 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 receive secure identification credentials ("SIDC") from the World Bank for the purpose of delivering such Applications by electronic means; and (b) all such officials designated by the Recipient have registered as users of Client Connection. If the World Bank agrees, the World Bank will provide the Recipient with SIDC for the designated officials. Following which, the designated officials may deliver Applications electronically by completing Form 2380, which is accessible through Client Connection (https://clientconnection.worldbank.org). The Recipient may continue to exercise the option of preparing and delivering Applications in paper form. The World Bank reserves the right and may, in its sole discretion, temporarily or permanently disallow the electronic delivery of Applications by the Recipient. (iv) Terms and Conditions of Use of SIDC to Process Applications. By designating officials to use SDIC and by choosing to deliver the Applications electronically, the Recipient confirms through the authorized signatory letter its agreement to: (a) abide by the Terms and Conditions of Use of Secure Identification Credentials in connection with Use of Electronic Means to Process Applications and Supporting Documentation ("Terms and Conditions of Use of SIDC; and (b) to cause such official to abide by those terms and conditions. (v) Minimum Value ofApplications (subsection 3.5). The Minimum Value of Applications is US$50,000. (vi) Advances (sections 5 and 6)to NAFIN. * Type of Designated Account (subsection 5.3): Segregated * Currency of Designated Account (subsection 5.4): USD * Financial Institution at which the Designated Account Will Be Opened (subsection 5.5): NAFIN. * Ceiling (subsection 6.1): USD 300,000 III. Reporting on Use of Grant Proceeds (i) Supporting Documentation (section 4). Supporting documentation should be provided with each application for withdrawal as set out below: * For requests for Reimbursement: o Records evidencing eligible expenditures (e.g., copies of receipts, supplier invoices) for payments for (i) Consulting Firms against Contracts at USD $ 100,000 equivalent or more; (ii) Individual Consultants against contracts valued at USD $ 50,000 equivalent or more; and (iii) Non-consultant Services against contracts values at USD $ 50,000 equivalent or more; " Statement of Expenditure for all other expenditures/contracts, including Operating Costs and Training; and o Customized Statement of Expenditure in the form attached (Attachment 1, form 4C) for eligible expenditures for Category 3 under Part 1(b)(II) of the Project. * For reporting eligible expenditures paid from the Designated Account: o Records evidencing eligible expenditures (e.g., copies of receipts, supplier invoices) for payments for (i) Consulting Firms against Contracts at USD $ 100,000 equivalent or more; (ii) Individual Consultants against contracts valued at USD $ 50,000 equivalent or more; and (iii) Non-consultant Services against contracts values at USD $ 50,000 equivalent or more; " Statement of Expenditure for all other expenditures/contracts, including Operating Costs and Training; o Customized Statement of Expenditure in the form attached (Attachment 1, form 4C) for eligible expenditures for Category 3 under Part 1(b)(II) of the Project; and o A reconciliation of the Designated Account, with a copy of the bank statement. (ii) Frequency of Reporting Eligible Expenditures Paid from the Designated Account (subsection 6.3): Quarterly or more often if required IV.] Other Important Information For additional information on disbursement arrangements, please refer to the Disbursement Handbook available on the World Bank's public website at https://www.worldbank.org and its secure website "Client Connection" at https://clientconnection.worldbank.org. Print copies are available upon request. From the Client Connection website, you will be able to download Applications, monitor the near real-time status of the Grant, and retrieve related policy, financial, and procurement information. If you have not already done so, the World Bank recommends that you register as a user of the Client Connection website (https://clientconnection.worldbank.or2). From this website you will be able to download Applications, monitor the near real-time status of the Grant, and retrieve related policy, financial, and procurement information. All Recipient officials authorized to sign and deliver Applications by electronic means are required to register with Client Connection before electronic delivery can be effected. For more information about the website and registration arrangements, please contact the World Bank by email at . If you have any queries in relation to the above, please contact The World Bank Loan Department at WFALD-TF@worldbank.org using the above reference. Yours sincer Victor Droiez Senior Finance Officer The World Bank Group Attachment 1. Form 4C "Customized Statement of Expenditure" and related attachment. Attachment 1 Form 4C ANEXO 4 C MEXICO DONACION Tr-10261 SANCO INTERNACIONAL DE RECONSTRUCCION Y FOMENTO GRANT NOMBRE DE PROYECTI: Proyecto de preparación poro lo Reducción de Emiones por Deforestación y Degradoción Forestol(REOD+ CERTIFICADO DE GASTOS