THE WORLD BANK IBRD * IDF IAL DOCUMENTS September 28, 2017 Latin American Energy Organization Av. Mariscal Antonio Josd de Sucre N58-63 and Fernandez Salvador, Sector San Carlos, Quito, Ecuador Dear Sir: REGIONAL: Caribbean Energy Statistics Capacity Enhancement Project Grant No: TF0A5680 Additional Instructions: Disbursement Letter I refer to the Grant Agreement between Latin American Energy Organization ("Recipient") and the International Bank for Reconstruction and Development/ International Development Association ("World Bank"), acting as administrator of grant funds provided by Multi-Donor Trust Fund for Statistical Capacity Building (TFSCB) ("Donor(s)") for the above-referenced project, dated September 28, 2017. The Agreement provides that the World Bank may issue additional instructions regarding the withdrawal of the proceeds of Grant No. TF0A5680 ("Grant"). This letter ("Disbursement Letter"), as revised from time to time, constitutes the additional instructions. The attached World Bank Disbursement Guidelines for Investment Project Financing, dated February 2017, ("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 Financing 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 Financing: * Reimbursement * Direct Payment * Advance (ii) Disbursement Deadline Date (subsection 3.7). The Disbursement Deadline Date is four (4) months after the Closing Date specified in the Grant Agreement. Any changes to this date will be notified by the World Bank. (iii) Disbursement Conditions (subsection 3.8). Please refer to the Disbursement Condition(s) in the Grant Agreement. II. Withdrawal of Financing Proceeds (i) Authorized Signatures (subsection 3.1). An authorized signatory letter in the Form attached (Attachment 2) 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, NW Washington, DC 20433 United States of America Attention: Ms. Tahseen Sayed Khan, Country Director (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/ Banco Mundial SCN, Quadra 02, Lote A -Edificio Corporate Financial Center 70 andar - 70712-900 Brasilia, D.F. Brazil Attention: Loan Operations (iii) Electronic Delivery (subsection 3.4) The Association may permit the Recipient to electronically deliver to the Association Applications (with supporting documents) through the Association's Client Connection, web-based portal. The option to deliver Applications to the Association by electronic means may be effected if: (a) the Recipient 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 Association for the purpose of delivering such Applications by electronic means; and (b) all such officials designated by the Recipient have registered as users of Client Connection. If the Association agrees, the Association will provide the Recipient 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 Recipient may continue to exercise the option of preparing and delivering Applications in paper form. The Association 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 Use of SIDC to Process Applications. 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 ("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 for Reimbursement and Direct Payment is USD 40,000 equivalent. -2- (vi) Advances (sections 5 and 6) * Type of Designated Account[s] (Subsection 5.3): Segregated, * Currency of Designated Account[s] (subsection 5.4): USD * Financial Institution at which the Designated Account[s] Will Be Opened (subsection 5.5): Banco Pichhincha C.A. * Ceiling (subsection 6.1): Variable as per forecast for 3 months as provided in form attached (Attachment 4) 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 and reporting eligible expenditures paid from the Designated Account: 0 Statement of Expenditure in the form attached (Attachment 4) o A reconciliation of the Designated Account, in the form attached (Attachment 5), with a copy of the bank statement applicable only when reporting eligible expenditures paid from the Designated Account. * 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). Quarterly IV. Other Disbursement Instructions: NIL V. Other Important Information For additional information on disbursement arrangements, please refer to the Disbursement Handbook available on the Association'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 Association recommends that you register as a user of the Client Connection website (https://clientconnection.worldbank.or ). From this website you will be able to prepare and deliver Applications, monitor the near real-time status of the Financing, and retrieve related policy, financial, and procurement information. All Recipient 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 Association by email at . -3- If you have any queries in relation to the above, please contact Tatiana de Abreu, Finance Officer at tdeabreu(&worldbank.org, using the above Project name and Financing number as a reference in the subject line. Yours sincerely, Tahseen Sayed Khan Country Director Caribbean Country Management Unit Latin America and the Caribbean Region Attachments JAl. World Bank Disbursement Guidelines for Projects, dated February, 2017 2. Form for Authorized Signatures 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. Designated Account Reconciliation Statement 5. Statement of Expenditures -4-