C~PC1A 1V010 M 1DOCUMUTS The World Bank 1818 -blStreet N.W. (202) 473-1000 INTERNATIONAL BANK FOR RECONSTRUCTION AND.DVMur Lash.rogton, D.C. 20433 Cable Address: INTBAFRAD INTERNATIONAL DEVELOPMENT WORLD BANK U.S.A. Cable Address: INDEVAS November 29, 2012 H.E Nguyen Van Binh Governor State Bank of Vietnam 49 Ly Thai To Hanoi, Socialist Republic of Vietnam Re: Grant No. TF010988 For Support to Vietnam Land Administration Project Implementation Additional Instructions: Revised Disbursement Letter Excelency: I refer to the Grant Agreemr ent I "Agreement") between the Socialist Republic of Vietnam ("Recipient") and the International Bark for Reconstruction and Development/International Development Association ("World Bank") acting as administrator of grant funds provided by the New Zealand Ministry of Foreign kffairs and Trade under the Support to Vietnam Land Administration Project Implementation, for the above-referenced project, dated December 9, 2011. The Agreement provides th it the World Bank may issue additional instructions regarding the withdrawal of the proceeds of Grant No. TF010988 ("Grant"). This letter ("Disbursement Letter"), as revised from time to ti ne, constitutes the additional instructions and replaces the previous version dated December 9, 211. The attached World Bank Disbursement Guidelines for Projects, dated May 1, 2006, ("Disbursement Guidelines") (Attachlent 1), are an integral part of the Disbursement Letter. The manner in which the provisions in the Disbursement Guidelines apply to the Grant is specilied below. Sections and subsections in parentheses below refer to the relevant sections and subsections in the Disbursement Cuidelines and, unless otherwise defined in this letter, the capitalized terms used have the mcanings ascribed to them in the Disbursement Guidelines. I. Disbursement Arrangements (i) Disbursement Methods (section 2). The following Disbursement Methods may be used under the Grant: * Reimbursement * Advance * Direct Payment * Special Commitment (ii) Disbursement Deadline Date (subsection 3.7). The Disbursement Deadline Date is four months after the Closing Date specified in the Agreement. Any changes to this date will be notified by the World Bank. Page 1 of 32 II. Withdrawal of Grant Proceeds (i) Authorized Signatures (subsection 3.1). Applications for this Grant will be signed by the official(s) authorized to sign Applications as indicated in the letter signed by Mr. Le Minh Hung, Deputy Governor, State Bank of Vietnem, dated February 07, 2012 (Attachment 2). (ii) Applications (subsections 3.2 - 3.3). Please provide completed and signed (a) Applications for withdrawal, together with supp:rting documents, and (b) Applications for special commitments, together with a copy of the commercial bank letter of credit, to the address indicated below: The World Bank 23/F, The Taipan Place Building Emerald Avanue, Ortigas Center Pasig City, Metro Manila Philippines Attention: Loan Department (iii) Electronic Delivery (subsection 3.4). The World Bank may permit the Recipient to electronically deliver to the World Bank Applications (with supporting documents) through the World Bank 's Client Connection, web-based portal. The option to deliver Applications to the World Bank by electronic means n1ay be effected if: (a) the Recipient has designated in writing, pursuant to the terms of subparagr iph (i) of this Section, its officials who are authorized to sign and deliver Applications and to receive secure identification devices ("Tokens") from the World Bank for the purpose of delivering such Applications by electronic means; and (b) all such officials designated by the Recipic nt have registered as users of Client Connection. If the World Bank agrees, the World Bank will provide the Recipient with Tokens for the designated officials. Following which, the designated c fficials may deliver Applications electronically by completing Form 2380, which is accessible through Client Connection (https://clientconnection.worldbank.or,). The Recipient may continue to exercise the option of preparing and delivering Applicat ons in paper form. The World Bank reserves the right and may, in its sole discretion, temporarily or permanently disallow the electronic delivery of Applications by the Recipient. (iv) Terms and Conditions of Ust of Tokens to Process Applications. By designating officials to accept Tokens and by choosing to deliver the Applications electronically, the Recipient confirms through the authorized s Igna:ory letter its agreement to: (a) abide by the Terms and Conditions of Use of Secure Identification Devices in connection with Use of Electronic Means to Process Applications and Supporting Documentation ("Terms and Conditions of Use of Tokens") provided in Attachment 3; and (b) to deliver the Terms and Conditions of Use of Tokens to each such official and to cause such official to abide by those terms and conditions. (v) Minimum Value ofApplications (subsection 3.5). The Minimum Value of Applications of Direct payment, Reimbursement and Special Commitment is USD 120,000 equivalent. Page 2 of 32 (vi) Advances (sections 5 and 6). * Type of Designated Acco wnt (subsection 5.3): Segregated Currency of Designated,Account (subsection 5.4): United States Dollars (USD) * Financial Institution at iwvhich the Designated Account Will Be Opened (subsection 5.5): Vietnam Joint Stock Commercial Bank Ceiling (subsection 6.1): JSD 600,000 III. Reporting on Use of Grant 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 Statement of Expenditures in the form attached (Attachment 4) for payments against contracts th it are not subject to the World Bank's prior review. o List of payments against contracts that are subject to the World Bank's prior review in the form ittached (Attachment 5) together with Records evidencing eligible expenditures (e g., copies of receipts, supplier invoices, bills of lading). * For reporting eligible ependitures paidfrom the Designated Account: o Statement of Expenditures in the form attached (Attachment 4) for payments against contracts that are not subject to the World Bank's prior review. o List of payments against contracts that are subject to the World Bank's prior review in the form attached (Attachment 5) together with Records evidencing eligible expenditur -s (e.g., copies of receipts, supplier invoices, bills of lading). o Designated Account Reconciliation Statement (Attachment 6) with bank statements. * For requests for Direct Payment: o 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): Monthly. Page 3 of 32 IV. Other Important Information For additional information on disbursement arrangements, please refer to the Disbursement Handbook available on the World Bank's public website at http://www.worldbank.org and its scure website "Client Connection" at http://clientconnection.worldbank.org. Print copies are available upon request. If you have not already done so, the World 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 download Applications, monitor the near real-time status of the Grant, and retrieve related policy, financial, and procurement information. All Recipient officials authorized to sign and deliver ApplicatiDns by electronic means are required to register with Client Connection before electronic deh-very can be affected. For more information about the website and registration arrangeme its, please contact the World Bank at . If you have any queries in r,-lation to the above, please contact us at ctrIn- maniL&worldbank.org using the above Project name and Grant No. as a reference in the subject line. Yours sincerely, Miguel-Santi Oliveira Senior Finance Officer CTRLN Attachments 1. World Bank Disbursement Guidelines for Projects, dated May 1, 2006 2. Authorized Signatures Letter Received 3. Terms and Conditions of Use cfSecure Identification Devices in connection with Use of Electronic Means to Process Applications and Supporting Documentation, dated January 20, 2010 4. Form of Statement of Expendi :ure 5. Form of Payments Against Contracts Subject to the World Bank Prior Review 6. Form of Designated Account Reconciliation Statement Page 4 of 32 Prepared by: Thao Thi Do and Miguel-Santiago Oliveira (CTRLN) Cleared with and cc: Huong Thi Vai Nong, (LEGES) Dzung The N guyen, (EASVS) Page 5 of 32 Cc witi copies: Mr. Nguyen Mz nh Hien Vice Minister a id Director Genera.1 General Department of Land Administration Ministry of Nat iral Resources and Environment 83, Nguyen Chi Thanh, Hanoi Mr. Le Van Lich Deputy Director Ger eral General Departneni of Land Administration and Director, CPMU, Vietnam Land Administration Project Ministry of Nataral Resources and Environment 74, Giai Phong, Hanoi Ms. Nguyen Thu Hong Director International Cooperation Department General Departnent of Land Administration 74, Giai Phong, Hanoi Ms. Doan Hoai Anh Director General International Cooperation Department State Bank of Vietnam 16 Ton Dan, Hanoi Mr. Hoang Vie: Khang Director General Foreign Economic Relations Department Ministry of Plarning and Investment 2 Hoang Van Thu, Hanoi Ms. Nguyen Manh -oa Deputy Director General Department of Extenal Finance and Debt Management Ministry of Finance 28 Tran Hung lao, [lanoi Ms. Tran Minh Ha Director Department of International Cooperation Ministry of Nat.ural Resources and Environment 83, Nguyen Chi Thanh, Hanoi Page 6 of 32 ，叫 口 擊 臼 潤 巢r 華鬥•， ’萋羹：法 寥由乞呂 ·－&rl州坤••州r入 無屋州螂 買亡亡【」」斗騙以 《fr一k尸－一－斗叫 &＇一－－夕j,k已二州0 戶■■•，r、一＿卜〝 U州戶j然l-.j文j。 一L」一」「」r州劇」 一T一戶••■■，一＇.&&r江他弋 痲編痲••必h•“ ,’舉才1■匹面己口蠶︰口勵由州口口口口口口 l騙－es&&-－翩自■■■■■■■ l WORLD BANK DISBURSEMENT GUIDELINES FOR PROJECTS LOAN DEPARTMENT May 1, 2006 Page 8 of 32 Copyright :C: 2(00 1 ie lItenati >nal buik for Rec(ronstructioni and 1)evelopmeineit '1i1.: WOI.1) 14ANK ISIS 11 Street. N.W. Washington. ).C. 2113:1, V.SA. First Printinp: Jul: 29Moi Page 9 of 32 CONTENTS Page 1. Purpose....................................... 5 2. Disbursement Methods .............. .......... 6 3. Withdrawal of Loan Proceeds ......... ............. 6 4. Supporting Dccumcntation Requirements ... ......... 9 5. Designate< Accounts.............................10 6. Terms an< Couditions Applicable to Advances .............. 12 7. Incligibic -xpenlditur( ............... ............ 14 8. Refunds....................................... 15 31 Page 10 of 32 4 Page 11 of 32 World Bank Eisbiursement Guidelines for Projects May 1, 2006 1. Purpose 1.1 The purpose of these Guidelines is to set out the laIk's procedures for disbirsement of loan proceeds for projects.' Specificallv t he Guidelines explain (a) the different met hods used by th< Bank to disburse loan proce(ds. (b) the require- ments for v:ithdrawal from the Loan Account. (c) the types of supporting documentation that the borrower may be re- quired to provide to deionstrate the ise of loan proceeds for eligible -xp,nditures, (d) the criteria for establishing des- ignated accomil s. (e) the terms and conditions applicable to advances. (f) thie types of actions that the Bank may take if it determine that loan proceeds are not nteeded or have been used for ineligible purposes. and (g) the consequence of refunlds. "IBank inchude IBI:1) and IDA: Ioan inchide, credit and grant: "bor- rower" icludes the hirrower of an IBRI) loati, IDA credit. or Project Prepa- ration l-acility advanve and the recipienat of a grant: anrd " ly to Development Policy loanis. 5I Page 12 of 32 2. Disbur,ement Methods 2.1 The Bank establishes (disbursement arrangements for an op- eration in consultation with the borrower and taking into consideration, mn ter lja, an assessment of the borrower's fimanni minagement and procurement arrangements, the procir menit plan and cish flow njeeds of the operation. alnd its disursement exxrience with the borrower. 2.2 The Bink disburses proceedxs from the Loan Accounlt estrab- lished fr eich loan, to or on the order of the borrower, using one or nore of the disbursenent, met hods set forth below, as deterinined by the Bank. (a) Reimnbursement: The Bank may reiniburse the bor- rower f:r expenditures eligible for financing pursuant to the Loan Agreernent (eligible expenditures") that the bo-rowi,r has prefmanced from its own resources. (b) A deaice: The Bank may advance loan proceeds into a cesignated account of the borrower to finance eligible expenditures as they are incurredt and for which sup- po -ting documents will be provided at a later date (see se(tion 5, "Designated Accounts"). (c) Direct Payment: The Bank may make paynents, at the borrower's request. direetly to a third party (e.g., sUpplicr, contractor. consultant) for eligible expendi- tULes. (d) Specicl Commitment: The Bank may pay amounts to a tLird party for eligible expenditures under special co:nmit ments entered into. in writing, at the borrower's requesi. and on terms and conditions agreed between the lB nk aind the borrower. 3. Withd ,awa3 of Loan Proceeds 3.1 Authotrized Signatures. Before loan proceeds may be withIrawi or committed from the Loan Account. the au- 6 Page 13 of 32 g e b)%%.o DI*SZ u N INM N 1.,2txni Ihorized representative of the borrower (as desigiiated in the Loan Agreminent ) mwust furnish to the Bank (a) the nane(s) of the official(s) autiorize(l to sign applications for with- drawal an:1 applications for a special comnit nient (coIlec- tivelv. Appliations"), and (b) tlie autheriticated spX'imel(ýn signature( ) o' the official(s). Tlie borrower iniLst indicate clearly if nore thian one signature is required on Applica- tions and nis: notify the Bank promptly of any changes in signature authority. 3.2 Applications. Applicatiois imst be provided to the Bank in such foi in and include such infornation as the Bank nav reasonably request. Application forins are available online from the Clen( (onnect11ion Web site at http: clu niconnue- ti.worldbanL. org or from the Bank upon request. 3.3 For withdraw;tl from the Loan Account for advances. the borrower :-hould provide an original signed application for withdrawvI. For witlhdrawal from thle Loan Account for re- imbursements and direct payments and for reporting on th( use of ad.,ances. the borrower should prov.ide an original signed ap)lication for withdrawal together with onie copy of supporting documients (see section 1. DSupportig Docu- inentation Requirements"). For a special commiiitment from the Loau Account. thbe borrower should provide all original signed application for a special cominnitment together with one copy of th let ter of rdit. Tlie Bank reserves the right not to acc, pt or review duplicate copies of Applications alld supporting do:uments aid may at its discretion return or destroy tlie t licates. 3.4 Electrowi c Delivery. 'I e Bank may aut horize the bor- rower to use electronic means. in a manner and on termns and condil ions specified by the Bank. to deliver Applicat ions and supporting documentation to the Bank. Applications and suppti: rting doctumentation delivered in accordance with this subsectiom will be deemied to have been provided to the Bank for tiie purposes of satisfying the requiremnents of sub- sections 3 2 ai d 3.3 of these Guidelines. 7' Page 14 of 32 3.5 Minimum Value of Applications. The Bank establishes a iniiiun value for Applications for reirnl)ursement, direet paymeni t, and spxcial coininitment. The Bank reservsi the right not to accept, Applications that are below such mini- mim vailue. 3.6 Loan Dish ursing Period. The Bank processes Appli- cations oilyv after the Loan Agreeient, has been declared effeetive in accordance with the terins of the Loan Agree- ment. hlie expenditures for which the Applications are imade i ist be: (a) pa id for (i) on or after the date of the Loan Agreenent, or (ii) in the case of operations that pernit retroactive financing. on or after the earlier date specified in the Loan Agreement for that purpose: and (b) incurred ort or before the closing date specified or re- fer -ed to in the Loan Agreement ( -Closing Date"). ex- cept as otherwise specifically agreed with the Bank. 3.7 The Iomn disbursing period ends on the final date established by the Bank for receipt by the Bank of applications for with- drawaxl and supporting docurnentation (the "Iisbursement )eadline Date"). The Disb)ursemtent Deadline Date may be the samie a the Closing Date. or up to four nonths after the Closing Date. Nornally. to support or(lerly projeet coimple- tiot and closire of the Loan Account. ithe Bank does not ac- cept ap plications for witfhdrawal or support ing documentation receive,l after the Disburseinent Deadline Date. The borrower should promptly inform the Bank of any expected implemen- tation lelays or except ional administrat ive issues before these dates. Flie Bank notifies tie borrower of anv exception that the Bank may make to the Disbursemient Deadline Date. 3.8 Disbursement Conditions. If the Loan Agreenent con- tains a dishursement condition for a specific expeniditure cat- egory. :he Bank will (isl)urse loan proceeds for that category only ater il he disbuirsemenit condition has beent fulfilled and the Bank l as notified the borrower to this effeet. I 8 Page 15 of 32 g~~~\ kN g 1. hnns. . 200t6 4. Supporting Documentation Requirements 4.1 Tlie borrower provides suplx>rt.ing documenItation to the Bank to skow that loai proceeds have been or are being used to fliw nec eligible expenditures. 4.2 For special commitments. the commercial bank provides its confirmation directlv to t.lie Bank that conditions for release of paymernt ; committed for withdrawal have been met. 4.3 'Types of Supporting Documentation. The Bank re- quires eithi,r copies of the original docimiients evidencing eligible expenditures ( -Rcords~) or summary reports of ex- penditure ( -Summary Reports~) in such form and substance as the Bank may specify. Records include such docimienits as invoices and receipts. A Summary Report may be either (a) tlie intrini ui-audited fimancial report required under he Loain Agreerent (~Interim Financial Report") or (b) a stateme t of expetiditure summarizing eligible expendi- tures paid during a stated period (-Statemrent of Expendi- ture"). In all enses, the borrower is responsible for retaining tle original documents evidencing eligible expenditlures and making thin available for audit or inspection. 4.4 The Baik det ermies tlie types of support ing documnent at ion that the borrower should provide. taking into coiisideration lie disbuiremnt nethod used. The supporting documnenta- tioii may :e tht following: (a) For c,pplhcations for reimbursement: (i) Interimr Financ ial Reports. (ii) Statements of Expenditure. (iii) Records. or :iv) Records required by the Bank for spe- cific e in litures and Stateieits of Expenditure for all other expenditures; (b) For rcporting on the use of advances: (i) Interim Financial Rleports. (ii) Statements of Expeniditure. (iii) Records. or iv) Records required by the Bank for spe- cific c:'>eIditiures and St atements of Expenditure for all other 'xpiiditures; 9 l Page 16 of 32 (c) For applications for direct payments: Records; anid (d) Aiy othier supportiig documentation that the Bank imayrequest by notice to the b:orrower. 4.5 Failur" to Provide Audited Financial Statements. If the bor-oswer fails to provide any of the audited Financial Statemenits required in accordanuce with, and withii the pie- riod of time specified in. the Loan Agreement, the Bank may at its d scret ion dexcide not to accept applicatiorns for with- drawal upported by Summary Reports. evei if such reports are acma(nrmied by Ilecor(ds. 5. Designated Accounts 5.1 The bo -rowtr may opein one or more designated accounits into whlich the Bank may. at the borrower's request. de- posit amouts withdrawn from the Loan Account for the purpos( of w>iying for eligible expenditures as they are in- curred (Designated Account). Before the Bank authorizes establ)lishi,meit of a Designated Accouit, the borrower must have aequate ahuinistrative capability. internal controls. and accouniting and auditing procedures to ensure effective ise of t'e Iesignated Account. 5.2 The Batk i.may decide not to permit the uise of Designated Accoum s in new projects if the borrower has failed to re- fund tun docui(ented advanices in the Designated Account of am- otlier lman to, or guaranteed by. the borrower within two mioitlis after the )isbursemrenst )eadline D)ate for such loan. 5.3 Type or Designated Account. A Designated Accoit rimav be est ablished in onte of the two ways set out below, as ap- propri11e fcr the operation concerned. as determined anld notified by the Bank. I10 Page 17 of 32 (a) Segregated Account: this is an account of the borrower into which only proceeds of the loan may be deposited; or (b) Pooled A ccount: this is an account of the borrower into w ich the loan procee(s and proceeds of other fl- nancin z foy the operation (e.g.. borrower resources and/ or fmna. iciig by other development partners) may be de- p)ositedL. 5.4 Currency of the Designated Account. Designated Ac- counts nu;t bw in a currency acceptable to the Bank. In countries t kat have a freely convertible clrrency. Designated Accounts may be held in the currency of the borrower or any freely convertible currency. The Bank may also agree to local currei ,y Designated Accounts when. mtt r alm. the country's vurrency (evet if not freely convertible) is stable and the e>ce ditures to be financed are primarily in lo- cal currencv. .he borrower bears all risks associated with foreign exclange fluctuations between (a) the currency of denomination f tbe loan and that of thbe borrower's Iesig- nated Account . and (b) the currencV of denomiination of the borrower's Däeignated Account and the currencv or curren- cies of pro ject expenditures. 5.5 Financial Institution. )esignated Accounts unist be opened and maintained in a fmancial institution accept- able to thi Bank on terins and conditions acceptable to thbe Bank. To bw acceptable to the Bank. the financial institution proposl y Il tbe borrower shduld generally iteet all the fol- lowing r< uirements: (a) be fim incially sound: (b) be auti(horized to mtaintain the Designated Account in the cirrency agreed between tlie Bank and tie bor- rower (c) >r andited regularly, and receive satisfactory audit re- ports P Page 18 of 32 (d) be able to execute a large nurnx,r of transactions prompitlly: (e) be abk to perform a wide range of banking services sat- (f) be able to provide a detailed staternent of the Desig- ia ed Accouit: (g) be part of a satisfactory correspondent banking network; al 1 (h) charge reasonable fees for its services. 5.6 The B ink reserves the righit not to accept a firancial insti- tutlion for the opeiing and /or inaintenance of a Designat,ed Account if such institution has asserte(d or asserts a claim to sel ff, seize, or at tach the proxCeds of any Bank loan on deposi, in 1 Designated Acount maintained by it. 6. Terms and Conditions Applicable to Advances 6.1 Ceiling. Thie Bank notifies the borrower of the maximurn anoutit of loan proceeds that may be on deposit in a Desig- nated Account (the ~Ceiling"). The Bank, at its discretion. may et 1 ablish the Ceiling as either (a) a fixed amount, or (b) an am,munt that is adjusted from time to time during project imple int ation based on periodic forecasts of project cashi flow n1 eds 6.2 Applications for Advances. The borrower may apply for an adlanc in an amount up to the Ceiling hess the aggre- gate nmunit of those advaices pireviosly received by the borrower for witicli the borrower has not Yet provided sup- porting document ation. Nornally, to support orderly closure of tlie Loan Account, teli Bank does not advance loan pro- ceeds into the Designated Account after the Closing Date. 6.3 ftequency of Reporting Eligible Expenditures Paid from the Designated Account. The borrower reports on the us: of loan proceeds advanced to the Designated Account 112 Page 19 of 32 at intervah, specified by the Baik by notice to the borrower 1Reportinig Period-). Tlie borrower should ensure that all amounts depos ted in the Desigiat,ed Account are accounted for and their use reported prior to the Disburseient Dead- litie Date. After this date. the borrower must refund to the Bank any ndvanies still unaccounted for or remaining in the Designated Accounit. 6.4 WithhoLding Advances. The Bank is iot required to make any deposil into the Designated Account if: (a) The 13ink letermines that payment of the deposit woluld result ii exceeding the Ceiling (see subsetion 6.2. "Ap- plicati, Pns for Advaines"): (b) The Dank is not satisfied that, the borrower's planned proje(V expenditires justify the deposit. The Bank iav by not ie to the borrower. adjust the amount it deposits or withhold further deposits into the )esignat,ed Ac- count n1ti1 it is satisfied that the financial needs of the projecu warrant further deposits: (c) The borrower fails to take the action required pursuant to the deteriinations made by the Bank under subsec- tions 71 and 7.2 of these cuidelines: (d) The h> rrower fails to provide any of the audited Finan- cial St ateients required in accordance with, and within the pvriod of I ine specified in. the Loan Agreerment: (e) The D ank determines that all further withbdrawals of loan pjroceeds should be made by the borrower directly from the Loan Account; or (f) The [ ank has notified the borrower of its intention to suspend iii whole or in part the borrower's right to make withd -awals from the Loan Account. 6.5 Excess Advances. If at any time the Bank determines that any amoun't deposited in the Designated Account will not be required tj cover furtlier payinents for eligible expenditures ("Execss < munt"), it may. at its discretion, require the borrower o tke oie of the two actions listed below. Upon 13 I Page 20 of 32 wIV t Bi i , i, l i, i it: im11mi, o , n notificition by thfe Bank, thie borrower iiiust promptly take the act lon requeste1: (a) Provide evidence satisfactory to the Bank withiii a pe- rio:1 spucified by tile Bank that the Excess Arnoutint will be used to pav for eligible expenditures. If the evidence i- not furnished within the time period specified. the bo -rower itist I)ronptly refuntid the Excess Amount to the Bank: or (b) Rffiuind the Excess Aiount promuptly. 7. Ineligile Expenditures 7.1 Ineligible Expenditures Generally. If the Bank deter- minies that anv anoint of the loan was ised to pay for an expenditure that is not eligible pursiant to tlie Loan Agree- ment: i in ligible expenditure"). the Bank rnay. at its dis- cretioi . require tlie borrower to take one of the two actions listed below. Upon notification by the Bank. the liborrower nust proiptly take the action requested: (a) Refutid an equivalent anount to the Bank; or (b) E::cep.lonally, provide substitute docurnentationl evi- d(ncing other eligible expeiditures. 7.2 Ineli