MICHEL KERF Country Director, Central America and the Dominican Republic Latin America and the Caribbean Region 26-Aug-2021 His Excellency Mr. Hector Alexander Minister of Economy and Finance Ministry of Economy and Finance OGAWA Building, Vía España and Calle 52E Corregimiento de Bella Vista-Province of Panama Republic of Panama Re: Open Government Partnership Grant No. TF0B6270 (Panama Open Contracting and Public Infrastructure Transparency Project) Additional Instructions: Disbursement and Financial Information Letter Excellency, I refer to the Letter Agreement (“Agreement”) between the Republic of Panama (“Recipient”) and the International Bank for Reconstruction and Development (“World Bank”), acting as administrator of grant funds provided by multiple donors (“Donors”) under the Open Government Partnership Trust Fund, for the above-referenced project. The Standard Conditions, as defined in the Letter Agreement, provide that the World Bank may issue additional instructions regarding the withdrawal of the proceeds of Grant TF0B6270-PA (“Grant”), and may set out Project specific financial reporting requirements. This letter (“Disbursement and Financial Information Letter”), as revised from time to time, constitutes such additional instructions. I. Disbursement Arrangements and Withdrawal of Grant Funds The World Bank Disbursement Guidelines for Investment Project Financing, dated February 2017, (“Disbursement Guidelines”) are available in the World Bank's public website at https://www.worldbank.org, and are an integral part of the Disbursement and Financial Information 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. (i) Disbursement Arrangements The table in Schedule 1 provides the disbursement methods which may be used by the Recipient, information on registration of authorized signatures, processing of withdrawal applications (including minimum value of applications and advances), instructions on supporting documentation, and frequency of reporting on the Designated Account. (ii) Withdrawal of Grant Funds (Electronic Delivery) (Section 7.01 (c) of the Standard Conditions). The Recipient will deliver Withdrawal Applications (with supporting documents) electronically through the World Bank’s web-based portal “Client Connection” at https://clientconnection.worldbank.org. 2 This option will be effected after the officials designated in writing by the Recipient who are authorized to sign and deliver Withdrawal Applications have registered as users of “Client Connection”. The designated officials will deliver Applications electronically by completing the Form 2380, which is accessible through “Client Connection”. By signing the Authorized Signatory Letter, the Recipient confirms that it is authorizing such persons to accept Secure Identification Credentials (SIDC) and to deliver the Applications and supporting documents to the World Bank by electronic means. The Recipient may exercise the option of preparing and delivering Withdrawal Applications in paper form on exceptional cases (including those where the Recipient encounters legal limitations), and which were previously agreed with the World Bank. By designating officials to use SIDC 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, available in the World Bank's public website at https://worldbank.org and “Client Connection”; and (b) to cause such official to abide by those terms and conditions. II. Financial Reports and Audits Section (2.07 (a) and (b) of the Standard Conditions). (i) Financial Reports. The Recipient must prepare and furnish to the World Bank not later than forty- five (45) days after the end of each calendar semester, interim unaudited financial reports (“IFR”) for the Project covering the semester. (ii) Audits. A single audit (one-time audit) of the Financial Statements must cover the project period or any other period agreed with the World Bank, according with project needs. The audited Financial Statements for such period must be furnished to the Bank not later than six (6) months after the end of such period. III. Other Important Information For additional information on disbursement arrangements, please refer to the Loan Handbook available on the World Bank’s website (http://www.worldbank.org) and “Client Connection”. The World Bank recommends that you register as a user of “Client Connection”. From this website you will be able to prepare and deliver Applications, monitor the near real-time status of the Grant, 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 World Bank by email at AskLoans@WorldBank.org using the above reference. Yours sincerely, ______________________________ Michel Kerf Country Director Central America and the Dominican Republic Latin America and the Caribbean Region Attachments 1. Form of Authorized Signatory Letter 2. Statement of Expenditure (SOE) 3. Designated Account Activity Statement 3 Schedule 1 - Disbursement Provisions Basic Information Country Panama Closing Date Section 3.03 of Article III to the Letter Agreement Recipient Republic of Panama Grant TF0B6270-PA Number Name of the Panama Open Contracting and Public Disbursement Four (4) months after the Project Infrastructure Transparency Project Deadline Date closing date Subsection 3.7 ** Disbursement Methods, and Supporting Documentation Disbursement Methods Methods Available Supporting Documentation Section 2 (**) Subsections 4.3 and 4.4 (**) Direct Payment No Not Applicable Reimbursement Yes  Statement of Expenditure, in the format provided in Attachment 2 of this letter. Advance (into a Designated Yes  Statement of Expenditure, in the format provided in Attachment 2 of this letter; and Account)  Designated Account Activity Statement, in the format provided in Attachment 3 of this letter, with a copy of the Designated Account Bank Statement. Special Commitments No Not Applicable Designated Account (Section 5 and 6 **) Type Segregated (refer to Additional Instructions below) Ceiling Fixed Financial Institution - Name Banco Nacional de Panama Currency USD Frequency of Reporting, Quarterly 70,000.00 Amount Subsection 6.3 (**) 4 Minimum Value of Applications (Subsection 3.5 **) The Minimum Value of Applications for Reimbursement is USD 15,000.00 equivalent. Authorized Signatures (Subsection 3.1 and 3.2 **) Withdrawal and Documentation Applications (Subsection 3.3 and 3.4 **) Authorized Signatures: A letter in the format provided in Attachment 1 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: The World Bank 1818 H Street, N.W. Washington, DC 20433, USA Attention: Michel Kerf, Country Director Applications: Completed Applications for withdrawal, together with supporting documents, should be provided through the World Bank’s Client Conn ection, web-based portal, following the instructions for electronic delivery. In the case the Recipient does not have internet access, the World Bank may permit the delivery of Applications for withdrawal, together with supporting documents, to the following address: Banco Mundial SCN Quadra 02, Lote A Ed. Corporate Financial Center, 7º andar 70712-900, Brasília, D.F. – Brazil Attention: Loan Operations Additional Instructions Designated Account will be in the Borrower’s Multilateral Single Treasure Account (Cuenta Única del Tesoro). The records and bank reconciliation will reflect transaction activity of a segregated sub-account. ** Sections and subsections indicated relate to the “Disbursement Guidelines for Investment Project Financing”, dated February 2017. 5 Attachment 1 - Form of Authorized Signatory Letter [Letterhead] Ministry of Finance [Street address] [City] [Country] [DATE] The World Bank 1818 H Street, N.W. Washington, D.C. 20433 United States of America Attention: ___________________, Country Director Dear [Country Director]: Re: Open Government Partnership Grant No. TF0B6270 (Panama Open Contracting and Public Infrastructure Transparency Project) I refer to the Letter Agreement (“Agreement”) between the International Bank for Reconstruction and Development (“World Bank”), acting as acting as administrator of grant funds provided by multiple donors (“Donors”) under the Open Government Partnership Trust Fund, and the Republic of Panama (the “Recipient”), dated _________________, providing the above Grant. For the purposes of Section 3.04 (b) of the Standard Conditions, as defined in the Agreement, any [ one] of the persons whose authenticated specimen signatures appear below is authorized on behalf of the Recipient to sign applications for withdrawal [and applications for a special commitment] under this Grant. For the purpose of delivering Applications to the World Bank, 1[each] of the persons whose authenticated specimen signatures appears below is authorized on behalf of the Recipient, acting 2[individually] 3[jointly], to deliver Applications, and evidence in support thereof on the terms and conditions specified by the World Bank. 4This confirms that the Recipient is authorizing such persons to accept Secure Identification Credentials (SIDC) and to deliver the Applications and supporting documents to the World Bank by electronic means. In full recognition that the World Bank shall rely upon such 1 Instruction to the Recipient: Stipulate if more than one person needs to jointly sign Applications, if so, please indicate the actual number. Please delete this footnote in final letter that is sent to the World Bank/Association. 2 Instruction to the Recipient: Use this bracket if any one of the authorized persons may sign; if this is not applicable, please delete. Please delete this footnote in final letter that is sent to the World Bank/Association. 3 Instruction to the Recipient: Use this bracket only if several individuals must jointly sign each Application; if this is not applicable, please delete. Please delete this footnote in final letter that is sent to the World Bank/Association. 4 Instruction to the Recipient: Add this paragraph if the Recipient wishes to authorize the listed persons to accept Secure Identification Credentials and to deliver Applications by electronic means; if this is not applicable, please delete the paragraph. Please delete this footnote in final letter that is sent to the World Bank/Association. 6 representations and warranties, including without limitation, the representations and warranties contained in 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”), the Recipient represents and warrants to the World Bank that it will cause such persons to abide by those terms and conditions. This Authorization replaces and supersedes any Authorization currently in the World Bank records with respect to this Agreement. [Name], [position] Specimen Signature: ____________________ [Name], [position] Specimen Signature: ____________________ [Name], [position] Specimen Signature: ____________________ Yours truly, / signed / ______________ [Position] 7 Attachment 2 - Statement of Expenditure 8 Attachment 3 - Designated Account Activity Statement CONCILIACION DE LA CUENTA DESIGNADA PRESTAMO/CREDITO/DONACIÓN No: NOMBRE DEL BANCO: NÚMERO DE CUENTA: USD 1. Total de Depósitos 2. Menos Total Documentado 3. Saldo por Recuperar 0.00 4. Saldo al / / de Acuerdo al Estado Bancario Adjunto 0.00 5. Monto de la Solicitud No.___ 0.00 6. Más monto pendiente de Reembolso por el Banco 1/ 0.00 7. Más retiros efectuados aún no solicitados al Banco 2/ 0.00 8. Menos montos debitados después de la fecha del Estado Adjunto 0.00 9. Menos intereses generados por la Cuenta Designada 10. Total (4 + 5 + 6 + 7+ 8 - 9) 0.00 11. Discrepancias entre (3 y 9) 0.00 OBSERVACIONES: 1/ Valor pendiente de reembolso por el Banco No. de Solicitud Monto 2/ Retiros efectuados aun no solicitados al Banco Fecha Descripción Monto Aqui se incluira una explicación del del Punto 8), o sea en que fue gastado el dinero que aún no fue solicitado al Banco. Esto es exigido cuando este importe supera el 15% del depósito en la Cuenta Designada. 0.00 1. Suma de todos los importes adelantados por el Banco a la Cuenta Designada 2. Suma de todos los importes documentados 3. Linea 1 menos Linea 2 4. Saldo igual al estado de cuenta bancário presentado. (Converter para dólares) 5. Informar el importe total a ser documentado en la solicitud que se está presentando 6. Solo en el caso de tener importes pendientes de pagar por el banco de Solicitudes anteriores. 7. Este importe es la parte que fue retirada de la Cuenta Designada y no corresponde a gastos que se están incluyendo en el próximo SOE. Refiere a nuevos gastos que aún no han sido incluidos en SOE 8. Aqui solo iria algo si hubieran retirado un nuevo importe de la Cuanta Designada, posterior a la fecha del estado de cuenta bancário que está siendo presentado