October 25, 2021 H. E. Luis Fernando Mata Minister of Finance Secretaría de Estado en el Despacho de Finanzas Dirección General de Crédito Público Tegucigalpa, M.D.C. Republic of Honduras Re: IDA Credit 6626-HN (Honduras COVID-19 Emergency Response Project) Additional Instructions: AMENDED Disbursement and Financial Information Letter Excellency: I refer to the Financing Agreement between the Republic of Honduras (the “Recipient”) and the International Development Association (the “Association”) for the above-referenced Project. The General Conditions, as defined in the Financing Agreement, provide that the Recipient may from time to time request withdrawals of Credit amounts from the Credit Account in accordance with the Disbursement and Financial Information Letter, and such additional instructions as the Association may specify from time to time by notice to the Recipient. The General Conditions also provide that the Disbursement and Financial Information Letter may set out Project specific financial reporting requirements. This letter constitutes such Disbursement and Financial Information Letter (“DFIL”) and may be revised from time to time. This letter is the second amendment of the Disbursement and Financial Information Letter dated April 23, 2020 for the above referenced project. This letter revises Schedule 1 to associate Designated Account (DA-A) to Category 2, which will be managed by the Ministry of Health (Secretaría de Estado en el Despacho de Salud, SESAL), and to eliminate Designated Account (DA-B). All other provisions of the Disbursement and Financial Information Letter dated April 23, 2020, except as amended, shall remain in force and effect. I. Disbursement Arrangements, Withdrawal and Reporting of Uses of Credit Funds. The Disbursement Guidelines for Investment Project Financing, dated February 2017, (“Disbursement Guidelines”) are available in the Association’s public website at https://www.worldbank.org and its secure website “Client Connection” at https://clientconnection.worldbank.org. The Disbursement Guidelines are an integral part of the DFIL, and the manner in which the provisions in the guidelines apply to the Credit is specified below. (i) Disbursement Arrangements  General Provisions. The table in Schedule 1 sets out 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 processing of advances), instructions on supporting documentation, and frequency of reporting on the Designated Account.  Special Provision. Projects in situations of urgent need of assistance or capacity constraints: Disbursements under contracts for goods, works, non-consulting services and consulting services procured or selected through international open or limited competition or Direct Selection, as set out in the procurement plan, must be made only through Direct Payment and/or Special Commitment disbursement methods. (ii) Electronic Delivery (Section 11.01 (c) of the General Conditions). The Recipient will deliver Withdrawal Applications (with supporting documents) electronically through the Association’s web-based portal “Client Connection” at https://clientconnection.worldbank.org. 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 Application and supporting documents to the Association 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 Association. 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 Association'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 5.09 of the General Conditions). (i) Financial Reports. The Recipient shall prepare and furnish to the Association 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. Audit of the Financial Statements must cover the entire life of the Project, or any other period agreed with the Association. The audited Financial Statements for the period must be furnished to the Association not later than six (6) months after the end of such period. III. Other Information. For additional information on disbursement arrangements, please refer to the Loan Handbook available on the Association’s website (http://www.worldbank.org/) and “Client Connection”. The Association 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 Credit, 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 Association by email at AskLoans@WorldBank.org using the above reference. Yours sincerely, ______________________________ Tatiana de Abreu Souza Finance Officer Attachments (Not included as there are no changes from previous DFIL) 1. Form of Authorized Signatory Letter 2. Six-month forecast 3. Statement of Expenditure (SOE) 4. Sample Designated Account Activity Statement Schedule 1: Disbursement Provisions Basic Information Country Republic of Honduras Section III.B.2 of Schedule 2 to the Closing Date Recipient Ministry of Finance Financing Agreement. Credit IDA 6626-HN Number Disbursement Honduras COVID-19 Emergency Deadline Date Name of the Project Four months after the closing date. Response Project Subsection 3.7 ** Disbursement Methods and Supporting Documentation Disbursement Methods Methods Supporting Documentation Section 2 (**) Subsections 4.3 and 4.4 (**) Direct Payment Yes  Copy of records; Reimbursement Yes  Statement of Expenditure (SOE), in the format provided in Attachment 3 of the DFIL; Advance  Six-month forecast, in the format provided in Attachment 2 of the DFIL, for requests for advances; (Designated Accounts) Yes  Statement of Expenditure (SOE), in the format provided in Attachment 3 of the DFIL; and  Designated Account Activity Statement, in the form provided in Attachment 4, with a copy of the bank statement. Special Commitments Yes  Copy of Letter of Credit Designated Accounts (Sections 5 and 6 **) Designated Account (DA-A) Linked to Category 2 Type Segregated Ceiling Variable Financial Institution - Central Bank of Honduras Currency USD Name Frequency of Reporting Quarterly Amount Six-month forecast Subsection 6.3 (**) Minimum Value of Applications (Subsection 3.5 **) The minimum value of applications for Reimbursements and Direct Payments is USD 250,000 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 Form attached (Attachment 1) should be furnished to the Association 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: Mr. Michel Kerf, Country Director Applications: Completed Applications for withdrawal, together with supporting documents, should be provided through the Association’s Clien t Connection, web-based portal, following the instructions for electronic delivery. In the case the Recipient does not have internet access, the Association 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 ** Sections and subsections relate to the “Disbursement Guidelines for Investment Project Financing”, dated February 2017.