_____________________ His Excellency Mr. Waldo Mendoza Minister of Economy and Finance Ministry of Economy and Finance Jirón Junín 319, Cercado de Lima Lima, Perú Re: PERU: National Program for Innovation in Fisheries and Aquaculture IBRD Loan No. 8692-PE Additional Instructions: AMENDED Disbursement Letter I refer to the Loan Agreement between the International Bank for Reconstruction and Development and the Republic of Peru Borrower -referenced project, dated March 13, 2017. The Agreement provides that the Bank may issue additional instructions regarding the withdrawal of the proceeds of Loan 8692- PE . This is the first amendment of the Disbursement Letter dated March 13, 2017 for the above- referenced project. This letter restates Section II, paragraph (vi) to modify the Designated Account specifications and updates the reference to the current Disbursement Guidelines, which is available at the Client Connection website. All other provisions and attachments of the Disbursement Letter dated March 13, 2017, except as amended, shall remain in force and effect. The Disbursement Guidelines for Investment Project Financing, dated February 2017, which the provisions in the Disbursement Guidelines apply to the Loan 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. I. Disbursement Arrangements (i) Disbursement Methods (section 2). The following Disbursement Methods may be used under the Loan: Reimbursement Advances Direct Payments 1818 H Street N.W., Washington, D.C 20433 RCA 248423. WUI 64145 FAX (202) 477-6391 Phone (202) 473-1000 (ii) Disbursement Deadline Date (subsection 3.7). The Disbursement Deadline Date is four (4) months after the Closing Date specified in the Loan Agreement. Any changes to this date will be notified by the Bank. (iii) Disbursement Conditions (subsection 3.8). Please refer to the Disbursement Condition(s) specified in of the Loan Agreement. II. Withdrawal of Loan Proceeds (i) Authorized Signatures (subsection 3.1). An Authorized Signatory letter should be furnished to the Bank at the address indicated below providing the name(s) and specimen signature(s) of the official(s) authorized to sign Applications: The World Bank 1818 H Street, NW Washington D.C., 20433, USA Attention: Marianne Fay, Country Director (ii) Applications (subsections 3.2 - 3.3). Completed applications for withdrawal should be submitted - based portal, following the instructions for electronic delivery. In the case the Borrower does not have internet access, the World Bank may permit the delivery of applications for withdrawal, together with supporting documents, in accordance with subsection 3.3, to the following address: Banco Mundial SCN, Quadra 02, Lote A Ed. Corporate Financial Center, 7º andar 70712-900 Brasilia, D.F., Brazil Attention: Loan Operations Department (iii) Electronic Delivery (subsection 3.4). The Bank may permit the Borrower to electronically Connection, web-based portal. The option to deliver Applications to the Bank by electronic means may be 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 delivering such Applications by electronic means; and (b) all such officials designated by the Borrower have registered as users of Client Connection. If the Bank agrees, the Bank will provide the Borrower 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 Borrower may continue to exercise the option of preparing and delivering Applications in paper form. The Bank reserves the right and may, in its sole discretion, temporarily or permanently disallow the electronic delivery of Applications by the Borrower. (iv) Terms and Conditions of Use of SIDC to Process Applications. By designating officials to use SIDC and by choosing to deliver the Applications electronically, the Borrower confirms through the authorized signatory letter its agreement to: (a) abide by the Terms and Conditions of 1818 H Street N.W., Washington, D.C 20433 RCA 248423. WUI 64145 FAX (202) 477-6391 Phone (202) 473-1000 Use of Secure Identification Credentials in connection with Use of Electronic Means to Process cure (v) Minimum Value of Applications (subsection 3.5). The Minimum Value of Applications is US$ 500,000 for Direct Payments and Reimbursements. (vi) Advances (sections 5 and 6) to Ministerio de Producción PRODUCE o Type of Designated Account (subsection 5.3): Segregated (Multilateral Single Treasury Account, in compliance with Peruvian Directive Nº 001-2021-EF/52-04) o Currency of Designated Account (subsection 5.4): United States Dollars (USD) o Financial Institution at which the Designated Account Will Be Opened (subsection 5.5): Banco Central de Reserva del Perú o Ceiling (subsection 6.1): Variable ceiling based on a three-month forecast III. Reporting on Use of Loan Proceeds (i) Supporting Documentation (section 4). Supporting documentation should be provided with each application for withdrawal as set out below: For requests for Reimbursement, Advances and reporting eligible expenditures paid from the Designated Account: o Three-month forecast for requests for advances; o Customized Statement of Expenditures for Subprojects under Parts 1 and 2 of the Project (Category 1); o Customized Statement of Expenditures for expenditures under Part 3 of the Project (Category 2); o Designated Account Activity Statement with a copy of the Designated Account Bank Statement applicable only when reporting eligible expenditures paid from the Designated Account. The records and bank reconciliation will reflect transaction activity of a segregated sub-account. For requests for Direct Payment: Records evidencing eligible expenditures (e.g., copies of receipts, supplier invoices). (ii) Frequency of Reporting Eligible Expenditures Paid from the Designated Account (subsection 6.3): Quarterly or more often if needed. IV. Additional Information on Subprojects Under Components 1 and 2 (Category 1), the Project will finance subprojects proposed by productive agents in partnership with innovation agents. Subproject proposals will be evaluated and selected in accordance with specific evaluation criteria described in the operational manual and in the subprojects manual. Subprojects may encompass consulting services, training expenses, 1818 H Street N.W., Washington, D.C 20433 RCA 248423. WUI 64145 FAX (202) 477-6391 Phone (202) 473-1000 goods, non-consulting services, and operating costs. Procurement of goods and non-consulting services financed under subprojects will be carried out using Shopping procedures, as described in the Operational Manual. Procurement of consultant services financed under subprojects will be carried out through comparison of CVs, as described in the Operational Manual. The PIU will disburse Project proceeds for implementation of subprojects from the Operating Account. Following the initial disbursement (advance) to a given subproject, requests for additional disbursements to the same subproject should be supported by documentation of expenses incurred based upon the disbursement schedule established in the agreements signed by the PIU-PRODUCE and the beneficiaries (subprojects). Processes and procedures will be reflected in the Operational Manuals for the Project and Subprojects. Each Component will finance four types of subprojects as per Data sheet below. Component 1: Funds for promoting innovation in the fisheries sub-sector Component 2: Funds for promoting innovation in the aquaculture sub-sector Fund 1 Fund 2 Fund 3 Fund 4 Applied Research Adaptive Research Extension Services Capacity-building Amount of grant US$ 150,000 US$ 180,000 US$ 35,000 US$ 25,000 Matching contribution 20% (monetary) 30% (monetary) 20% (monetary) 20% (monetary) Subproject duration 2 years 2 years 1 year 1 year Calls for proposals 2 3 4 4 V. Other Important Information For additional information on disbursement arrangements, please refer to the Loan s website you will be able to prepare and deliver Applications, monitor the near real-time status of the Loan, and retrieve related policy, financial, and procurement information. For more information about the website and registration arrangements, or if you have any queries in relation to the above, please contact the Bank by email at AskLoans@WorldBank.org using the above reference. Sincerely, _______________________________ Maria Virginia Hormazabal Finance Officer 1818 H Street N.W., Washington, D.C 20433 RCA 248423. WUI 64145 FAX (202) 477-6391 Phone (202) 473-1000