OFFICIAL DOCUMENTS The World Bank 1818 H Street N.W. (202) 477-1234 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Washington, D.C. 20433 Cable Address: INTBAFRAD INTERNATIONAL DEVELOPMENT ASSOCIATION U.S.A. Cable Address: INDEVAS August 3, 2017 Carlos Mdrquez Padilla Casar Titular de la Unidad de Asuntos Internacionales de Hacienda Secretaria de Hacienda y Cr6dito P6blico Insurgentes Sur 1971, Torre III, piso 3 Col. Guadalupe Inn 01020 Ciudad de M6xico M6xico Jes6s Guti6rrez HernAndez Director de Organismos Financieros Internacionales Nacional Financiera, S.N.C. Insurgentes Sur 1971 Edificio Anexo, piso financiero 01020 Ciudad de M6xico M6xico Jorge Rescala P6rez Director General Comisi6n Nacional Forestal Perif6rico Poniente No. 5360, Col. San Juan de Ocotdn CP 45019 Zapopan, Jalisco M6xico Re: United Mexican States: Forest Carbon Partnership Facility REDD+ Readiness Preparation Support (Grant No. TFOA450 1) Second Readiness Grant Agreement Dear Sirs, I refer to the Grant Agreement between United Mexican States ("Recipient"), represented by its Ministry of Finance and Public Credit (Secretaria de Hacienda y Cridito Pliblico "SHCP"), Nacional Financiera, S.N.C I.B.D. ("NAFIN", acting as the Recipient's financial agent) and the National Forestry Commission (Comisidn Nacional Forestal "CONAFOR", acting as the Recipient's Executing Entity), and the International Bank for Reconstruction and Development ("World Bank") , acting as trustee of the Readiness Fund of the Forest Carbon Partnership Facility ("FCPF") dated March 19, 2014 and countersigned by SHCP on March 24, 2014, by NAFIN on March 21, 2014 and by the Executing Entity on March 27, 2014 ("Readiness Grant Agreement"), pursuant to which the World Bank agreed to provide to the Recipient a grant in the amount not to exceed US$3,800,000 for formulating and carrying out a Readiness Preparation Proposal ("R-PP"). The Participants Committee of the FCPF ("PC") has reviewed the request for an additional funding submitted by the Recipient, in accordance with the process as specified in Resolution PC/12/2012/2. Through its Resolution PC/19/2015/2, the PC decided to allocate additional grant funding to the Recipient in the amount of up to five million Dollars (US$5,000,000), to enable the Recipient to continue with its preparation for readiness, subject to the terms and conditions set forth in said Resolution. In response to the request for financial assistance made on behalf of the Recipient and the decision of the PC referred to above, I am pleased to inform you that the World Bank agreed to extend a grant in the amount of five million Dollars (US$5,000,000) consisting of: (a) three million five hundred thousand Dollars (US$ 3,500,000) ("Grant") on the terms and conditions set forth in this letter agreement ("Second Readiness Grant Agreement" or "Agreement") which includes the attached Annex, and (b) one million five hundred thousand Dollars (US$1,500,000) on the terms and conditions set forth in the letter agreement between the World Bank and UNDP ("UNDP Grant Agreement"), for the benefit of the United Mexican States, to assist in the financing of the Readiness Preparation Activities described in the Annex. This Grant is funded out of the abovementioned trust fund for which the World Bank receives periodic contributions from the donors to said trust fund. In accordance with Section 3.02 of the Standard Conditions (as defined in the Annex to this Agreement), the World Bank's payment obligations in connection with this Agreement are limited to the amount of funds made available to it by the donors under the abovementioned trust fund, and the Recipient's right to withdraw the Grant proceeds is subject to the availability of such funds. The Recipient represented by its Ministry of Finance and Public Credit (Secretaria de Hacienda y Cridito Ptblico "SHCP"), Nacional Financiera, S.N.C. I.B.D. ("NAFIN", acting as the Recipient's financial agent) and the National Forestry Commission (Comisi6n Nacional Forestal, "CONAFOR", acting as the Recipient's Executing Entity) represent, by confirming its agreement below, that they are authorized to enter into this Agreement and to carry out the Readiness Preparation Activities in accordance with the terms and conditions set forth or referred to in this Agreement. Since the execution of the Readiness Grant Agreement, the Charter Establishing the FCPF ("Charter") has been amended, and the terms and conditions of this Agreement are based on the Charter, as so amended. Please confirm SHCP's, NAFIN's and the Executing Entity's agreement to the foregoing by having an authorized official of SHCP, NAFIN and the Executing Entity sign and date the enclosed copy of this Agreement, and returning it to the World Bank. Upon receipt by the World Bank of the countersigned copy of this Agreement, this Agreement shall become effective as of the date specified by the World Bank in accordance with Article VI of the Annex to this Agreement; provided, however, that the offer of this Agreement shall be deemed withdrawn if the World Bank has not received the countersigned copy of this Agreement within ninety (90) days after the date of signature of this Agreement by the World Bank, unless the World Bank shall have established a later date for such purpose. 2 Very truly yours, INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT (Acting as Trustee of the Readiness Fund of the Forest Carbon Partnership Facility) By oVorrochano irector Colombia and Mexico Latin America and the Caribbean Region AGREED: UNITED ME C STATES SECRET D Y CREDITO PUBLICO By: (-Xuthorized R tvl Name: Mtro. Carlos Mgrque' Padilla Casar Title: Titulsr dp la Unical de Asuntos Internacionales de Hacienda Date: September 7+h, 2017 NACIONAL FINANCIE S .C. I.B.D. By: (Authorize_gr-%- e) Name: IC. JT HERNANDE Title: DIEWIOR LE FNANIE 4=MIMIRNACIONAIES Date: AUGUSI' 9th, 201 COMISION NACIONA FORESTAL (Authorizk epresentative) Name: ING. JORGE RESCALA PEREZ Title: DIRECTOR GENERAL Date: AUGUST 14th, 2017 Enclosures: (1) Standard Conditions for Grants Made by the World Bank Out of Various Funds, dated February 15, 2012. (2) Disbursement Letter of the same date as this Agreement, together with World Bank Disbursement Guidelines for Projects, dated February, 2017. (3) Guidelines on Preventing and Combating Fraud and Corruption in Project Financed by IBRD Loans and IDA Credits and Grants, dated October 15, 2006 and revised in 3 January 2011 and revised in July 2016. (4) World Bank Procurement Regulations for Borrowers under Investment Project Financing dated July 1, 2016. (5) Charter Establishing the Forest Carbon Partnership Facility, dated November 23, 2015. 4 FCPF Readiness Fund Grant No. TFOA4501 ANNEX Article I Standard Conditions; Definitions 1.01. Standard Conditions. The Standard Conditions for Grants Made by the World Bank out of Various Funds dated February 15, 2012 ("Standard Conditions"), with the modifications set forth below, constitute an integral part of this Agreement. (a) The following term and definition shall be added to the Appendix to the Standard Conditions as paragraph 18 bis to read as follows: 18bis "'Readiness Preparation Activities" means the activities, described in the Agreement, for which the Grant is made, as the description of said activities may be amended from time to time by agreement between the Recipient and the World Bank." (b) The term "Project" and its definition shall be deleted in their entirety from the Standard Conditions; and all references throughout the Standard Conditions to the term "Project" shall be deemed to refer to the "Readiness Preparation Activities." 1.02. Definitions. Unless the context requires otherwise, the capitalized terms used in this Agreement have the meanings ascribed to them in the Standard Conditions, the Charter Establishing the Forest Carbon Partnership Facility ("Charter"), or in this Agreement. For the purposes of this Agreement the following terms have the meaning given to them as follows: (a) "Capacity Building" means the reasonable costs for purposes of training under the Readiness Preparation Activities (not financed under Consultants' Services), attributable to seminars, workshops and study tours, and including domestic and international travel costs and subsistence allowances for training participants, costs associated with securing the services of trainers and speakers, rental of training facilities, preparation and reproduction of training materials, refreshments and other costs directly related to training preparation and implementation. (b) CONAFOR" or "Executing Entity" means the Comisi6n Nacional Forestal, the Member Country's National Forest Commission established to promote sustainable forest development through public policy actions and implementation of programs aimed to enhance forest protection, production and productivity, and contribute to economic growth and social development, pursuant to the Borrower's Decree dated March 23, 2001, or any successor thereto. (c) "ENAREDD+" means Estrategia Nacional para REDD+, the Recipient's National Strategy on REDD+. (d) "ENAREDD+ Consultation Plan" means the document prepared by the Executing Entity and acceptable to the World Bank, which describes the participatory process with civil society to be used for the national consultation on the ENAREDD+ and includes the scale, scope, representation information, schedule and budget for the carrying out of said Plan, as the same may be modified from time to time by agreement between the Executing Entity and the World Bank. 5 (e) "ESMF" means the environmental and social management framework that will provide guidance regarding the management of environmental (including pest management and measures for chance findings of physical cultural property) and social issues during the implementation of any future World Bank financed REDD+ investments (including investments under the Carbon Fund of the FCPF). (f) Indigenous Peoples Planning Framework" means the framework to be included as part of the ESMF, which will provide a clear process and criteria for the development of specific indigenous peoples plans that may be needed and the process for attaining and documenting broad community support at the regional/local level for any future World Bank investments related to REDD+ (including investments under the Carbon Fund of the FCPF). (g) "Incremental Operating Costs" means the reasonable incremental operating costs under the Readiness Preparation Activities incurred by the Executing Entity for purposes of the implementation, management, monitoring and evaluation of the Readiness Preparation Activities under the responsibility of the Executing Entity, on account of office supplies and consumables, utilities, bank charges, communications, mass media and printing services, vehicle rental, operation, maintenance and insurance, office space rental, building and equipment maintenance, domestic travel, lodging and subsistence allowances, but excluding their salaries, fees, honoraria and bonuses. (h) "Operational Manual" means the manual acceptable to the World Bank and referred to in Section 2.02 (d) of this Agreement, as the same may be modified from time to time by agreement between the Recipient and the World Bank. (i) "Original Readiness Preparation Activities" means the Readiness Preparation Activities described in Section 2.01 of the Readiness Grant Agreement. (j) "Process Framework" means the framework to be included as part of the ESMF, to guide the mitigation of potential negative impacts on the livelihoods of populations as part a result of any future World Bank investments related to REDD+ (including under the Carbon Fund of the FCPF). (k) "Readiness Grant Agreement" means the grant agreement between United Mexican States, represented by its Ministry of Finance and Public Credit (Secretaria de Hacienda y Cridito Ptiblico "SHCP"), Nacional Financiera, S.NC I.B.D. ("NAFIN", acting as the Recipient's financial agent) and the National Forestry Commission (Comisi6n Nacional Forestal "CONAFOR", acting as the Recipient's Executing Entity), and the International Bank for Reconstruction and Development ("World Bank"), acting as trustee of the Readiness Fund of the Forest Carbon Partnership Facility ("FCPF, dated March 19, 2014 and countersigned by the Recipient on March 24, 2014, by NAFIN on March 21, 2014, and by the Executing Entity on March 27, 2014. (1) "REDD+" means reducing greenhouse gas emissions from deforestation and forest degradation, conservation of forest carbon stocks, sustainable management of forest, and enhancement of forest carbon stocks in developing countries. 6 (n) "REDD+ Early Actions" means a set of institutionally articulated efforts at the subnational level to address the causes of forest loss in a territory through policy instruments and specific actions, including the piloting of innovative and unique local governance models related to land-use management with the objective to plan, guide and assist groups of communities in landscape-based management and to help harmonize government interventions in the rural sector. (n) "Resettlement Policy Framework" means the framework to be included as part of the ESMF, outlining general implementation procedures, mitigation measures and monitoring procedures in case of Involuntary Resettlement as a result of future World Bank investments related to REDD+ (including under the Carbon Fund of the FCPF), including the procedures for preparation and implementation of site-specific resettlement action plans, when applicable. (o) "SESA" means the strategic environmental and social assessment, a methodology that combines analytical work and a participatory process to analyze the strategic options being proposed in order to inform and generate inputs for the ENAREDD+. The SESA process is characterized by a strong analysis of the drivers of deforestation and the strategic options and a participatory approach to reviewing the potential environmental and social safeguard issues that will need to be considered during the preparation of the ENAREDD+ and the REDD+ Readiness process. (p) "SESA Workplan" means the strategic environment and social assessment document, dated February 19, 2014, prepared by the Executing Entity in a manner acceptable to the World Bank, which identifies the activities to be carried out during readiness to assess the risks and benefits associated with the strategic options of the ENAREDD+, as defined in the third version of the ENAREDD+ and that includes: (i) a summary of the work completed during the period 2011-2013; (ii) the priority activities to be undertaken in the period 2013-2015; (iii) the process to incorporate existing participation platforms to the ENAREDD+; and (iv) a budget and timeline for the implementation of said Workplan, as the same may be modified from time to time by agreement between the Recipient's Executing Entity and the World Bank. (q) "Signature Date" means the latest of the four dates on which the Bank and SHCP, NAFIN and the Executing Entity signed this Agreement and such definition applies to all references to "the date of the Grant Agreement" in the Standard Conditions. (r) "UNDP" means the United Nations Development Programme. (s) "UNDP Grant Agreement" means the agreement between the UNDP and the World Bank for purposes of financing Part 2 (e) under the Readiness Preparation Activities. (t) "World Bank's Safeguards Policies" means the World Bank's operational policies and procedures of the World Bank (as the same may be amended from time to time by the World Bank) set forth in the World Bank's Operational Manual and identified as Environmental Assessment (OP/BP 4.01), Natural Habitats (OP/BP 4.04), Forests (OP/BP 4.36), Pest Management (OP4.09), Indigenous Peoples (OP/BP 4.10), Physical Cultural Resources (OP/BP 4.11), Involuntary Resettlement (OP/BP 4.12) and Safety of Dams (OP/BP 4.37), as said manual is published under www.worldank.org/opmanual. 7 Article II Project Execution 2.01. Project Objectives and Description. The objective of the Readiness Preparation Activities is to strengthen the REDD+ readiness process in Mexico. The Readiness Preparation Activities consist of the Original Readiness Preparation Activities, as amended hereby, and the new Part 3: Part 1: National Readiness Management Arrangements and Stakeholder Consultation and Participation (a) Strengthening of the capacity of the Executing Entity, through the provision of support to, inter alia: (i) implement, manage and administer the Readiness Preparation Activities; (ii) support the dialogue and participative process with stakeholder groups at the national and state-level through the implementation of regional workshops on REDD+ (foros regionales); and (iii) disseminate relevant information and materials. (b) Provision of support to, inter alia: (i) carry out the national consultation on the ENAREDD+, in accordance with the ENAREDD+ Consultation Plan; (ii) support local civil society organizations in the dissemination of REDD+ related information; (iii) prepare culturally relevant and user friendly REDD+ related communication materials; (iv) conduct the systematization and reporting of consultations and workshops results; and (v) strengthen the technical and administrative capacity of relevant stakeholders listed in the Operational Manual, on REDD+ through the carrying out of capacity building activities. Part 2: Development of the National REDD+ Strategy (ENAREDD+) (a) Provision of technical assistance and financing of Incremental Operating Costs to: (i) identify barriers and alternatives to inter-sectorial policy coordination for the implementation of the ENAREDD+; (ii) systematize information related to the implementation of activities in the REDD+ Early Action Areas; and (iii) analyze the legal framework applicable to the implementation of the ENAREDD+. (b) Provision of support to, inter alia: (i) identify critical issues related to the implementation of ENAREDD+, identified as part of the SESA; (ii) develop scenarios to model the impacts of strategic options for REDD+; and (iii) align ENAREDD+ with the Executing Entity's sustainable forest management agenda through, inter alia, the establishment of a specialized technical unit on sustainable forest management within the Executing Entity, including the provision of relevant technical assistance to promote sustainable forest management under an integrated landscape approach, strengthen community forest enterprises, and foster competitiveness of the forest sector. (c) Strengthening of feedback and grievance mechanisms at the state level, in particular for REDD+ Early Action Areas, through the provision of technical assistance and financing of Incremental Operating Costs. (d) Strengthening of the capacity of the Executing Entity, through the provision of technical assistance and financing of Incremental Operating Costs for: (i) the implementation of the SESA Workplan; (ii) the preparation of the Environmental and Social Management Framework ("ESMF"); and (iii) the preparation of an Indigenous Peoples Planning Framework, a Resettlement Policy Framework and a Process Framework. 8 Part 3: National Forest Monitoring System Provision of support to the Executing Entity to, inter alia: (a) further operationalize the National Forest Monitoring System, including the establishment of a specialized technical unit on monitoring, reporting and verification within the Executing Entity and the provision of relevant technical assistance; and (b) collect field data of sample plots through the National Forest and Soils Inventory to increase the accuracy of carbon stock and greenhouse gas emission estimates. 2.02. Project Execution Generally. a) The Recipient, through SHCP and the Executing Entity, and NAFIN declare their commitment to the objective of the Readiness Preparation Activities. To this end, the Recipient, through the Executing Entity, shall carry out the Readiness Preparation Activities (but excluding the Readiness Preparation Activities under Part 2 (b)(iii) to be carried out by UNDP under the UNDP Grant Agreement) with assistance of NAFIN in accordance with the provisions of: (i) Article II of the Standard Conditions; (ii) the "Guidelines on Preventing and Combating Fraud and Corruption in Projects Financed by IBRD Loans and IDA Credits and Grants", dated October 15, 2006 and revised in January 2011 and as of July 1, 2016 ("Anti-Corruption Guidelines"); (iii) this Article II; (iv) the ENAREDD+ Consultation Plan; and (v) the SESA Workplan. (b) For purposes of carrying out the Readiness Preparation Activities, the Recipient, through SHCP and the Executing Entity, shall enter into a contract (the Mandato Agreement) with NAFIN satisfactory to the World Bank, whereby, inter alia: (i) the Executing Entity agrees to carry out the Readiness Preparation Activities (but excluding the Readiness Preparation Activities under Part 2 (b)(iii) of the Project) in accordance with the provision of this Agreement, including the provisions set forth in Sections 2.02.(a), 2.03, 2.04, 2.05 and 2.06 of this Agreement; (ii) the Recipient, through SHCP, and the Executing Entity have the right to, in case of fraud or corruption (as defined in the Anti-Corruption Guidelines) provide for the early termination of the Mandato Agreement or temporarily suspend its effects and/or require the restitution of the funds transferred to NAFIN in relation to the Readiness Preparation Activities; (iii) NAFIN agrees to act as financial agent of the Recipient with respect to the Grant, meaning that, inter alia, NAFIN agrees to represent the Recipient vis-a-vis the World Bank for purposes of submitting Grant withdrawal applications to the World Bank in form and substance sufficient to justify disbursement by the World Bank to the Recipient, referred to in the additional instructions cited in Section IV.A. 1 of this Schedule, all of this in compliance with the provisions of this Agreement, and to abide by the Anti-Corruption Guidelines; (iv) NAFIN has the right to, in case of fraud or corruption (as defined in the Anti- Corruption Guidelines) provide for the early termination of the Mandato Agreement or temporarily suspend its effects and/or require the restitution of the funds transferred to the Executing Entity under the Mandato Agreement; and (v) the Executing Entity agrees to fully cooperate with NAFIN to ensure that the Executing Entity is able to comply with all of its obligations under the Mandato 9 Agreement. (c) The Recipient, through SHCP and the Executing Entity shall cause NAFIN to exercise its rights and carry out its obligations under the Mandato Agreement in such a manner as to protect the interests of the World Bank and to accomplish the purposes of the Grant. Except as the World Bank may otherwise agree, the Recipient, through SHCP and the Executing Entity shall not amend, terminate, waive or fail to enforce any provision of the Mandato Agreement. In case of any conflict between the terms of the Mandato Agreement and those of this Agreement, the terms of this Agreement shall prevail. (d) The Recipient, through the Executing Entity, shall update and immediately thereafter implement the Readiness Preparation Activities under its responsibility in accordance with an operational manual (the "Operational Manual") satisfactory in form and substance to the World Bank, therein setting forth rules, methods, guidelines, standard documents and procedures for the carrying out of the Readiness Preparation Activities under the responsibility of the Executing Entity including, inter alia, the following: (i) a detailed description of the Readiness Preparation Activities; (ii) the administrative, financial, accounting, auditing, procurement and disbursement procedures for the implementation of the Readiness Preparation Activities, including the relevant standard documents; (iii) the Project performance indicators; and (iv) the plan for the monitoring, evaluation and supervision of the Readiness Preparation Activities including the performance indicators. 2.03. Safeguards. The Recipient, through the Executing Entity, shall ensure that all terms of reference for any technical assistance or studies carried out and frameworks prepared on the basis of the SESA Workplan, all under the Readiness Preparation Activities under the Executing Entity's responsibility, are consistent with, and pay due attention to, the World Bank's Safeguards Policies. 2.04. Project Monitoring, Reporting and Evaluation. (a) The Recipient, through the Executing Entity, shall: (i) monitor and evaluate the progress of the Project; and (ii) prepare Project Reports in accordance with the provisions of Section 2.06 of the Standard Conditions and on the basis of indicators acceptable to the World Bank. Each Project Report shall cover the period of one calendar semester, and shall be furnished to the World Bank not later than sixty (60) days after the end of the period covered by such report. (b) The Recipient, through the Executing Entity, shall prepare the Completion Report in accordance with the provisions of Section 2.06 of the Standard Conditions. The Completion Report shall be furnished to the World Bank not later than six months after the Closing Date. 2.05. Financial Management. (a) The Recipient, through the Executing Entity, shall ensure that a financial management system is maintained in accordance with the provisions of Section 2.07 of the Standard Conditions. (b) The Recipient, through the Executing Entity, shall cause the Executing Entity to ensure that interim unaudited financial reports for the Readiness Preparation Activities under its responsibility are prepared and furnished to the World Bank not later than forty five (45) days after the end of each calendar semester, covering the semester, in form and substance satisfactory to the World Bank. (c) The Recipient, through the Executing Entity, shall cause the Executing Entity to have its Financial Statements for the Readiness Preparation Activities audited in accordance with the provisions of Section 2.07 (b) of the Standard Conditions. Each audit of the Financial 10 Statements shall cover the period of one (1) fiscal year of the Recipient. The audited Financial Statements for each period shall be furnished to the World Bank not later than six (6) months after the end of such period. 2.06. Procurement All goods, non-consulting services and consulting services required for the Project and to be financed, in whole or in part, out of the proceeds of the Grant shall be procured in accordance with the requirements set forth or referred to in the "World Bank Procurement Regulations for Borrowers under Investment Project Financing" dated July 1, 2016 ("Procurement Regulations'), and the provisions of the Recipient's procurement plan for the Project ("Procurement Plan") dated October 28, 2016 provided for under Section IV of the Procurement Regulations, as the same may be updated from time to time in agreement with the World Bank. Article I Withdrawal of Grant Proceeds 3.01. Eligible Expenditures. The Recipient may withdraw, or request NAFIN to withdraw, the proceeds of the Grant in accordance with the provisions of: (a) the Standard Conditions; (b) this Section; and (c) such additional instructions as the World Bank may specify by notice to the Recipient, copying NAFIN in such notice (including the "Disbursement Guidelines for Investment Project Financing" dated February, 2017, as revised from time to time by the World Bank and as made applicable to this Agreement pursuant to such instructions), to finance Eligible Expenditures as set forth in the following table. The table specifies the categories of Eligible Expenditures that may be financed out of the proceeds of the Grant ("Category"), the allocations of the amounts of the Grant to each Category, and the percentage of expenditures to be financed for Eligible Expenditures in each Category: Category Amount of the Grant Percentage of Allocated Expenditures to be (expressed in USD) Financed (inclusive of Taxes) (1) Goods, non-consulting 3,500,000 100% services, consulting services, Capacity Building and Incremental Operating Costs for Parts 1, 2 (but excluding Part 2(b)(iii)), and 3 under the Readiness Preparation Activities (2) Goods, non-consulting 0 100% services, consulting services, Capacity Building and Incremental Operating Costs for Part 2(b)(iii) under the Readiness Preparation Activities 11 TOTAL AMOUNT 3,500,000 3.02. Withdrawal Conditions. Notwithstanding the provisions of Section 3.01 of this Agreement, no withdrawal shall be made for payments made prior to the Signature Date, except that withdrawals up to an aggregate amount not to exceed $700,000 equivalent may be made for payments made prior to this date but on or after the date twelve (12) months prior to the Signature Date, for expenditures under Category (1). 3.03. Withdrawal Period The Closing Date referred to in Section 3.06 (c) of the Standard Conditions is April 30, 2019. Article IV Other Undertakings 4.01. The Recipient and the World Bank hereby agree to amend the Readiness Grant Agreement as follows: (a) Section 1.02 -Definitions-of the Readiness Grant Agreement is hereby amended to read as Sectionl.02 of this Agreement, as applicable. (b) Section 2.01 -Project Objectives and Activities- of the Readiness Grant Agreement is hereby amended to read as Section 2.01 of this Agreement. Article V Additional Remedies 5.01. Additional Event of Suspension. The Additional Event of Suspension referred to in Section 4.02 (k) of the Standard Conditions consists of the following, namely, that the Default in Implementation set forth in Section 6.5 (a) (i) and (ii) of the Charter has occurred. Article VI Effectiveness 6.01. This Agreement shall not become effective until evidence satisfactory to the World Bank has been furnished that the following condition has been satisfied, namely, that the Mandato Agreement has been duly executed by the parties thereto. 6.02. As part of the evidence to be furnished pursuant to Section 6.01 of this Agreement, there shall be fumished to the World Bank an opinion or opinions satisfactory to the World Bank of counsel acceptable to the World Bank showing, on behalf of the Recipient, NAFIN and the Executing Entity that the Mandato Agreement has been duly authorized or ratified by, and executed and delivered on behalf of the Recipient, NAFIN and the Executing Entity and is legally binding upon the Recipient, NAFIN and the Executing Entity in accordance with the Mandato Agreement's terms. 12 6.03. Except as the Recipient and the World Bank shall otherwise agree, this Agreement shall enter into effect on the date upon which the World Bank dispatches to the Recipient notice of its acceptance of the evidence required pursuant to Section 6.01 ("Effectiveness Date"). Article VII Recipient's Representative; Addresses 7.01. Recipient's Representative. The Recipient's Representative referred to in Section 7.02 of the Standard Conditions is its Titular de la Unidad de Asuntos Internacionales de Hacienda of the Recipient's Ministry of Finance and Public Credit. 7.02. The Recipient's Address referred to in Section 7.01 of the Standard Conditions is: Secretaria de Hacienda y Cr6dito P6blico Unidad de Asuntos Internacionales de Hacienda Insurgentes Sur 1971 Torre III, tercer piso, Plaza Inn Colonia Guadalupe Inn 01020 Ciudad de M6xico, 7.03. Notifications to the Recipient under this Agreement shall be copied to: Nacional Financiera S.N.C., I.B.D. Direcci6n de Organismos Financieros Internacionales Insurgentes Sur No. 1971, Anexo Piso Financiero, Nivel Jardin Col. Guadalupe Inn C.P. 01020 Delegaci6n Alvaro Obreg6n, M6xico D.F. Facsimile: 011-52 55325-6810 Comisi6n Nacional Forestal Direcci6n General Perif6rico Poniente No. 5360, Col. San Juan de Ocotdn CP 45019 Zapopan, Jalisco M6xico 7.04. World Bank's Address. The World Bank's Address referred to in Section 7.01 of the Standard Conditions is: International Bank for Reconstruction and Development 1818 H Street, N.W. Washington, D.C. 20433 United States of America Cable: Telex: Facsimile: INTBAFRAD 248423 (MCI) or 1-202-477-6391 Washington, D.C. 64145 (MCI) 13