OFFICIAL DOCUMENTS The World Bank 1818 H Street N.W. (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 December 13, 2018 H.E. Vladislav Goranov Ministry of Finance 102 G.S. Rakovski Sreet Sofia, 1040 Republic of Bulgaria Excellency: Re: IBRD Loan 7834 - BG (Municipal Infrastructure Development Project) Amendment to Additional Instructions: Disbursement I refer to the Loan Agreement between the International Bank for Reconstruction and Development (the "Bank") and Republic of Bulgaria (the "Borrower") for the above-referenced project, dated February 1, 2010. The Agreement provides that the Bank may issue additional instructions regarding the withdrawal of the proceeds of Loan 7834-BG ("Loan"). This letter ("Disbursement Letter"), as revised from time to time, constitutes the additional instructions. The World Bank Disbursement Guidelines for Projects, dated May 1, 2006, ("Disbursement Guidelines") are available in the Bank'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 Disbursement Letter. The manner in 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 * Advance * Direct Payment * Special Commitment (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. 2 II. Withdrawal of Loan Proceeds (i) Authorized Signatures (subsection 3.1). An authorized signatory letter in the Form attached (Attachment 1) 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, N.W. Washington, D.C., 20433 Attention: Arup Banerji, Country Director for Europe: Central, South & Baltics (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: The World Bank Radnicka cesta 80, 9th floor. Zagreb, HR - 10 000, Croatia Attention: Loan Department (iii) Electronic Delivery (subsection 3.4) The Bank may permit the Borrower to electronically deliver applications (with supporting documents) through the Bank's web-based portal (https://clientconnection.worldbank.org) "Client Connection". This option may be effected when the officials designated in writing by the Borrower who are authorized to sign and deliver Applications have registered as users of "Client Connection". The designated officials may deliver Applications electronically by completing the Form 2380, which is accessible through "Client Connection". By signing the Authorized Signatory Letter, the Borrower confirms that it is authorizing such persons to accept Secure Identification Credentials (SIDC) and to deliver the Applications and supporting documents to the Bank by electronic means. The Bank reserves the right and may, in its sole discretion, temporarily or permanently disallow the electronic delivery of Applications by the Borrower. 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 Use of Secure Identification Credentials in connection with Use of Electronic Means to Process Applications and Supporting Documentation, available in the Bank's public website at https://worldbank.org and "Client Connection"; and (b) to cause such official to abide by those terms and conditions. (iv) Minimum Value of Applications (subsection 3.5). The Minimum Value of Applications for direct payment and issuance of special commitments is EUR 400,000 equivalent initially; when the Ceiling of applications shall accordingly be increased to EUR 800,000 equivalent. (v) Advances (sections 5 and 6). 3 * Type of Designated Account (subsection 5.3): Segregated * Currency of Designated Account (subsection 5.4): Euro (EUR) * Financial Institution at which the Designated Account[s] Will Be Opened (subsection 5.5): The Bulgarian National Bank * Ceiling (subsection 6.1): EUR 2,000,000 at the initial stage of the Project implementation; when the total disbursed and committed amount shall reach EUR 9,000,000 the ceiling may be increased to EUR 4,000,000 by submitting a withdrawal application for the increase of the DA deposit 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: o List of payments against contracts that are subject to the Bank's prior review, in the form attached (Attachment 2) o Records evidencing eligible expenditures (e.g., copies of receipts, supplier invoices) for payments for works against contracts valued at EUR 3,500,000 equivalent or more; for goods against contracts valued at EUR 650,000 equivalent or more; for consultant services against contracts valued at EUR 135,000 equivalent or more for firms and at EUR 30,000 equivalent or more for individual consultants; for Master Plans against contracts valued at EUR 135,000 equivalent o Statement of Expenditure in the form attached (Attachment 3) for all other expenditures / contracts. * For reporting eligible expenditures paid from the Designated Account: o List of payments against contracts that are subject to the Bank's prior review, in the form attached (Attachment 2) o Records evidencing eligible expenditures (e.g., copies of receipts, supplier invoices) for payments for works against contracts valued at EUR 3,500,000 equivalent or more; for goods against contracts valued at EUR 650,000 equivalent or more; for consultant services against contracts valued at EUR 135,000 equivalent or more for firms and at EUR 30,000 equivalent or more for individual consultants; for Master Plans against contracts valued at EUR 135,000 equivalent o Statement of Expenditure in the form attached (Attachment 3) for all other expenditures / contracts. * For requests for Direct Payment: records evidencing eligible expenditures, e.g., copies of receipts, supplier invoices 4 (ii) Frequency of Reporting Eligible Expenditures Paid from the Designated Account (subsection 6.3): monthly IV. Other Important Information For additional information on disbursement arrangements, please refer to the Disbursement Handbook available on the 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. If you have not already done so, the Bank recommends that you register as a user of the Client Connection website (https://clientconnection.worldbank.org). From this 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. All Borrower 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 Bank by email at . If you have any queries in relation to the above, please contact Loan Client Services at AskLoans&worldbank.org using the above reference. Yours sincerely, c warz Senior Finance Officer Attachments 1. Form for Authorized Signatures 2. Form of Payments Against Contracts Subject to the Bank's Prior Review 3. Form of Statement of Expenditure 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] Re: Loan No. - ( Project) I refer to the Loan Agreement ("Agreement") between the International Bank for Reconstruction and Development (the "Bank") and [name of borrower] (the "Borrower"), dated , providing the above Loan. For the purposes of Section 2.03 of the General Conditions as defined in the Agreement, any '[one] of the persons whose authenticated specimen signatures appear below is authorized on behalf of the Borrower to sign applications for withdrawal [and applications for a special commitment] under this Loan. For the purpose of delivering Applications to the Bank, 2[each] of the persons whose authenticated specimen signatures appears below is authorized on behalf of the Borrower, acting 3findividually] 4[jointly], to deliver Applications, and evidence in support thereof on the terms and conditions specified by the Bank. 5[This confirms that the Borrower is authorizing such persons to accept Secure Identification Credentials (SIDC) and to deliver the Applications and supporting documents to the Bank by electronic means. In full recognition that the Bank shall rely upon such representations and warranties, including without limitation, the representations and ' Instruction to the Borrower: Stipulate if more than one person needs to sign Applications, and how many or which positions, and if any thresholds apply. Please delete this footnote infinal letter that is sent to the Bank 2 Instruction to the Borrower: Stipulate if more than one person needs tojointly sign Applications, if so, please indicate the actual number. Please delete this footnote in final letter that is sent to the Bank ' Instruction to the Borrower: Use this bracket if any one of the authorized persons may sign; if this is not applicable, please delete. Please delete this footnote infinal letter that is sent to the Bank. ' Instruction to the Borrower: Use this bracket only if several individuals must jointly sign each Application; if this is not applicable, please delete. Please delete this footnote infinal letter that is sent to the Bank I Instruction to the Borrower: Add this paragraph if the Borrower 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 infinal letter that is sent to the Bank. 6 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 Borrower represents and warrants to the Bank that it will cause such persons to abide by those terms and conditions.] This Authorization replaces and supersedes any Authorization currently in the 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 Payments Made during Reporting Period Against Contracts Subject to the Banks's Prior Review Date of WB's Amount Paid to WB's Share of Amt CNtmbrat Supplier Cat Cont Non Objection Supplier During Paid to Supplier to Contracts Period during period 8 Attachment 3 STATEMENT OF EXPENDITURES (SOE) Date: Payments made during the period from - to Application TF No.: SOE No.: 1 2 3 4 5 6 7 8 9 10 11 d Name and Address of Contract, invoice Brief Description of Currency and Total Amount of Expenditure Amount Paid from E Contractor, Supplier or or Purchase Goods, Works, Total Amount of Expenditure Covered Amount Deisnatd Date of Remarks Sveod order No. & date Services or other Contract or by Application (Net Eligible for ntd Payment (or other ref.) Expenditure Invoice of Retention) Financing Totals 0 0