OFFICIAL DOCUMENTS THE WORLD BANK Bouchard 547, 29th floor Tel.: (54-11) 4316-9700 / 44 ORD_ - IDA I w=D unmomaC1106ABG Fax: (54-11) 4313-1233 IBRDIDAI wmasaceCiudad Aut6nomna de Buenos Aires Latin Amerca & the Carbben Argentine Republic Oppownoboes W AR December 21, 2017 His Excellency Jorge Roberto Hernin Lacunza Minister of Economy Ministry of Economy, Province of Buenos Aires Calle 8 entre 45 y 46 B 1900TGR, La Plata Province of Buenos Aires Argentine Republic Re: IBRD Loan 8736-AR Salado Integrated River Basin Management Support Project Additional Instructions: Disbursement Letter Excellency: I refer to the Loan Agreement (the "Agreement") between the Province of Buenos Aires (the "Borrower") and the International Bank for Reconstruction and Development (the "Bank") (for the above-referenced project, dated December 21, 2017. The Agreement provides that the Bank may issue additional instructions regarding the withdrawal of the proceeds of Loan 8736- AR ("Loan"). This letter ("Disbursement Letter"), as revised from time to time, constitutes the additional instructions. The attached World Bank Disbursement Guidelines for Projects, dated February 2017, 6, ("Disbursement Guidelines") (Attachment 1), 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, and * Direct Payment. (ii) Disbursement Deadline Date (subsection 3.7). The Disbursement Deadline Date is four months after the Closing Date specified in Section IV.B.2 of Schedule 2 to the Loan Agreement. Any changes to this date will be notified by the Bank. (iii) Disbursement Conditions (subsection 3.8). Please refer to the Disbursement Conditions set for in Section IV.B. 1 of Schedule 2 to the Loan Agreement. II. Withdrawal of Loan Proceeds (i) Authorized Signatures (subsection 3.1). A letter in the Form attached (Attachment 2) 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 Torre Bouchard Bouchard 547, Buenos Aires, Argentina Attention: Jesko S. Hentschel, Country Director Latin America and the Caribbean Region (ii) Applications (subsections 3.2 - 3.3). Please provide completed and signed applications for withdrawal, together with supporting documents, to the address indicated below: Banco Mundial SCN, Quadra 02, Lote A Edificio Corporate Finance Center 70 andar 70712-900 Brasilia, D.F. Brazil Attention: Monica Tambucho, Sr. Finance Officer, Loan Operations (iii) Electronic Delivery (subsection 3.4). The Bank may permit the Borrower to electronically deliver to the Bank Applications (with supporting documents) through the Bank's Client Connection, web-based portal. The option to deliver Applications to the Bank by electronic means may be effected if: (a) the Borrower has designated in writing, pursuant to the terms of subparagraph (i) of this Section, its officials who are authorized to sign and deliver Applications and to receive secure identification credentials ("SIDC") from the Bank for the purpose of delivering such Applications by electronic means; and (b) all such officials designated by the Borrower have registered as users of Client Connection. If the Bank agrees, the Bank will provide the Borrower with SIDC for the designated officials. Following which, the designated officials may deliver Applications electronically by completing Form 2380, which is accessible through Client Connection (https://clientconnection.worldbank.org). The Borrower may continue to exercise the option of preparing and delivering Applications in paper form. The Bank reserves the right and may, in its sole discretion, temporarily or permanently disallow the electronic delivery of Applications by the Borrower. (iv) Terms and Conditions of Use of SIDC to Process Applications. 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 ("Terms and Conditions of Use of Secure Identification Credentials") provided in Attachment 3; and (b) to cause such official to abide by those terms and conditions. (v) Minimum Value of Applications (subsection 3.5). The Minimum Value of Applications is 15% of the outstanding advance to the Designated Account. (vi) Advances (sections 5 and 6). * Type of Designated Account (subsection 5.3): Segregated * Currency of Designated Account (subsection 5.4): USD * Financial Institution at which the Designated Account Will Be Opened (subsection 5.5): Banco de La Provincia de Buenos Aires. * Ceiling (subsection 6.1): USD 50,000,000 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 and for reporting Eligible Expenditures paid from the Designated Account: o Statement of Expenditures in the form attached (Attachments 4); * For requests for Direct Payment: 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): The minimum frequency is quarterly. IV. Other Important Information For additional information on disbursement arrangements, please refer to the Disbursement Handbook available on the Bank's public website at http://www.worldbank.org and its secure website "Client Connection" at http://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 (http://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 the World Bank Loan Department by sending an email to Jose Janeiro, Sr. Finance Officer at ijaneirogworldbank.org, indicating the project and loan number in the subject line. Yours sincerely, .I(IhUWI" Vskc . Hentschel Coui.try Director Argentina, Paraguay and Uruguay Latin America and the Caribbean Region Attachments I World Bank Disbursement Guidelines for Projects, dated February 2017 2 Form for Authorized Signatory Letter 3 Terms and Conditions of Use of Secure Identification Credentials in connection with Use of Electronic Means to Process Applications and Supporting Documentation, dated March 1, 2013 4 Form of Statement of Expenditure