EL BANCO MUNDIAL WCUmoBIRF * AIF I GRUPO DEL BANCO MUNDI kL

His ExcellencyDulcidio de La GuardiaMinistro de Economia y FinanzasMinisterio de Economia y Finanz,sDirecci6n de Cr6dito P6blicoVia Espafia, Calle 52Edificio OGAWA, 3er PisoPanama, Rep6blica de Panamd

Re: PANAMA: Sustainable Production Systems and Conservation of Biodiversity Pr . tGEF Grant No. TF018972

Addition:l Instructions: Disbursement Letter

I refer to the Grant Agreer nent between the Republic of Panama (the "Recipient") a i ieInternational Bank for Reconstr iction and Development (the "World Bank"), acting ainimplementing agency of the Glob d1 Environment Facility ("GEF"), dated u C t .

The Agreement provides that the World Bank may issue additional instructions regardii i, ewithdrawal of the proceeds of Gra it No. TF 18972 ("Grant"). This letter ("Disbursement Lc 10I'as revised from time to time, cons itutes the additional instructions.

The attached World Ban) Disbursement Guidelines for Projects, dated May 1, 01 6,("Disbursement Guidelines") (Attatchment 1), are an integral part of the Disbursement Lette . iemanner in which the provisions i i the Disbursement Guidelines apply to the Grant is sp ci :dbelow. Sections and subsections in parentheses below refer to the relevant section ] Idsubsections in the Disbursement Guidelines and, unless otherwise defined in this lettr iecapitalized terms used have the m,-anings ascribed to them in the Disbursement Guidelines.

I. Disbursement Arrangements

(i) Disbursement Methods (sectio n 2). The following Disbursement Methods may be used L n erthe Grant:

* Reimbursement

* Advance* Direct Payment

(ii) Disbursement Deadline Date "subsection 3.7). The Disbursement Deadline Date is 4 n < r isafter the Closing Date specified in the Grant Agreement. Any changes to this date will be nit if Adby the World Bank.

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(iii) Disbursement Conditions (subsection 3.8). Please refer to the Disbursement Condition(s)in the Grant Agreement.

II. Withdrawal of Grant Proceeds

(i) Authorized Signatures (subsection 3.1). An authorized signatory letter in the Form attached(Attachment 2) should be furnished to the World Bank at the address indicated below providingthe name(s) and specimen signature(s) of the official(s) authorized to sign Applications:

The World Bank1818 H Street, N.W.Washington, DC 20433United States of AmericaAttention: J. Humberto Lopez, Country Director

(ii) Applications (subsections 3.2 - 3.3). Please provide completed and signed applications forwithdrawal, together with supporting documents, to the address indicated below:

Banco MundialSetor Comercial Norte,Quadra 02, Lote AEdificio Corporate Financial Center70 Andar70712-900, Brasilia, DFBrazilAttention: Loan Department

(iii) Electronic Delivery (subsection 3.4) The World Bank may permit the Recipient toelectronically deliver to the World Bank Applications (with supporting documents) through theWorld Bank's Client Connection, web-based portal. The option to deliver Applications to theWorld Bank 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 signand deliver Applications and to receive secure identification credentials ("SIDC") from the WorldBank for the purpose of delivering such Applications by electronic means; and (b) all such officialsdesignated by the Recipient have registered as users of Client Connection. If the World Bankagrees, the World Bank will provide the Recipient with SIDC for the designated officials.Following which, the designated officials may deliver Applications electronically by completingForm 2380, which is accessible through Client Connection(https://clientconnection.worldbank.orZ). The Recipient may continue to exercise the option ofpreparing and delivering Applications in paper form. The World Bank reserves the right and may,in its sole discretion, temporarily or permanently disallow the electronic delivery of Applicationsby the Recipient.

(iv) Terms and Conditions of Use of SIDC to Process Applications. By designating officials touse SIDC and by choosing to deliver the Applications electronically, the Recipient confirms

through the authorized signatory ltter its agreement to: (a) abide by the Terms and Conditv ?, ofUse of Secure Identification Crea ?ntials in connection with Use of Electronic Means to P VsApplications and Supporting L ocumentation ("Terms and Conditions of Use of ' (cl reIdentification Credentials") provi ed in Attachment (3); and (b) to cause such official to ab ce >ythose terms and conditions.

(v) Minimum Value ofApplicatims (subsection 3.5). The Minimum Value of Application IDirect Payment and Reimburseme nt is US$100,000.

(vi) Advances (sections 5 and 6) o ANAM:

* Type of Designated Acc,)unt (subsection 5.3): Segregated Account.

* Currency of Designated Account (subsection 5.4): United States Dollar (US-D).

* Financial Institution ai which the Designated Account will be opened (subsecti I5.5): Financial institutioi acceptable to the Bank.

* Ceiling (subsection 6.1) US$1,500,000.

III. Reporting on Use of Grant Proceeds

(i) Supporting Documentation (st-ction 4). Supporting documentation should be provided .N iIeach application for withdrawal a, set out below:

* For requests for reimbursei ient:

o Summary Stater ients, in the form attached (Attachment 4), with r c o iIsevidencing eligitle expenditures (e.g., copies of receipts, supplier invoict s) :tpayments againsI:

> Works co itracts costing US$500,000 equivalent or more per contn ct;

> Goods co itracts costing US$250,000 equivalent or more per contr c;

> Consultar t firm contracts costing US$150,000 equivalent or mo I ercontract; ;nd

> Individua consultant contracts, Training and Operating costs c ;ti igUS$60,0(0 equivalent or more.

o Statement of Ex]:penditure (SOE), in the form attached (Attachment 5), c r illother expenditur s that fall below the above listed thresholds;

o Custom Stateme it of Expenditure, in the form attached (Attachment () orpayments made u nder Subprojects; and

o List of payments n the form attached (Attachment 7) for contracts that are si :I ctto the Bank's prior review.

* For reporting eligible expenditures paid from the Designated Account:

o Summary Statements, in the form attached (Attachment 4), with recordsevidencing eligible expenditures (e.g., copies of receipts, supplier invoices) forpayments against:

> Works contracts costing US$500,000 equivalent or more per contract;

> Goods contracts costing US$250,000 equivalent or more per contract;

> Consultant firm contracts costing US$150,000 equivalent or more percontract; and

> Individual consultant contracts, Training and Operating costs costingUS$60,000 equivalent or more.

o Statement of Expenditure (SOE), in the form attached (Attachment 5), for allother expenditures that fall below the above listed thresholds;

o Custom Statement of Expenditure, in the form attached (Attachment 6), forpayments made under Subprojects;

o List of payments in the form attached (Attachment 7) for contracts that are subjectto the Bank's prior review; and

o Designated Account Activity Statement in the form attached (Attachment 8) witha copy of the Designated Account Bank Statement.

* For requests for Direct Payment:

o Records evidencing eligible expenditures, e.g., copies of receipts, supplierinvoices.

(ii) Frequency of Reporting Eligible Expenditures Paid from the Designated Accounts(subsection 6.3): Quarterly.

IV. Other Disbursement Information

Endowment Fund Financing - Under project subcomponent 1(c) the amount ofUS$1,500,000 will be disbursed by the Bank as a direct payment to an endowment fund accountupon ANAM providing evidence of the establishment of the endowment fund account in a mannersatisfactory to the Bank.

V. Other Important Information

For additional information on disbursement arrangements, please refer to the DisbursementHandbook available on the World Bank's public website at https://www.worldbank.org and itssecure website "Client Connection" at https://clientconnection.worldbank.org. Print copies areavailable upon request.

If you have not already dc ne so, the World Bank recommends that you register as .1 'u erof the Client Connection website (ittps://clientconnection.worldbank.ore). From this websi c >uwill be able to prepare and deliver Applications, monitor the near real-time status of the Grat tr idretrieve related policy, financial, and procurement information. All Recipient officials auth , i dto sign and deliver Application; by electronic means are required to register with --li, ntConnection before electronic deli iery can be effected. For more information about the wA,:: teand registration arrangement., please contact the World Bank by ema I at<clientconnection@worldbank.or ,>.

If you have any queries in relation to the above, please contact World Bank Le inDepartment at loa-lcr@worldbanl<.org using the above reference.

Yours sincerely,

INTERNATIONAL BANI FOR RECONSTRUCTION AND DEVELOPMENT

Anabela AbreuCountry Manager - LCCPA

Latin kmerica and the Caribbean Region

Attachments

1. World Bank Disbursement Guidelines for Projects, dated May 1, 20062. Sample Form for Authorized Signatures3. 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. Sample Form of Summary Statement5. Sample Form of Statement of Expenditure6. Sample Form of Customized Statement of Expenditure for Subprojects7. Sample Form of Payments Against Contracts Subject to the Bank's Prior Review8. Sample Form of Designated Account Reconciliation Statement

cc with copies: Ms. Mirei EndaraGeneral AdministratorNational Environment Authority (ANAM)Panama, Republic of Panama

Ms. Aida Maria AriasDirectorInternational Technical CooperationMinistry of Economy and Finance

Attachn Sr 1

THE WOR1 D PANK

DISBURSEMENTGUIDELINESFOR PROJECTS

MAY 2006

WORLD BANK

DISBURSEMENT GUIDELINESFOR PROJECTS

LOAN DEPARTMENTMay 1, 2006

Copyright (') 20(iThe International iank fo- Reconstruction aid Development/THE WORLD BANK1818 II Street. N.W.Washington, I).C. 20-133. .S.A.

First Printing: July 2(M)i

CONTENTS

Page

1. Purpose ...................................... 5

2. Disbursement Methods ........... 6

3. Withdrawal of Loan Proceeds ..................... 6

4. Supporting Documentation Requirements ..... ....... 9

5. Designated Accounts. ............. ............... 10

6. Terms and Conditions Applicable to Advances ........... 12

7. Ineligible Expenditures .......................... 14

8. Refunds ................ 5..... ................ 15

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World BankDisbursoment Guidelines

for ProjectsMay 1, 2006

1. Purpose

1.1 The purpose of thest Guidelines is to set out the Bank'sprocedures for disbur-ement of loan proceeds for projects.'Specifically, the Guid lines explain (a) the different methodsused by the Bank to c isburse loan proceeds, (b) the require-mients for withdrawal from the Loan Account, (c) the typesof supporting documentation that the borrower may be re-quired to provide to lemonstrate the use of loan proceedsfor eligible expenditur 1s, (d) the criteria for establishing des-ignated accounts, (e) :he terms and conditions applicable toadvances. (f) the typ s of actions that the Bank may takeif it determines that oan proceeds are not needed or havebeen used for ineligibi purposes, and (g) the consequence ofrefunds.

"IBank" includes 1111H) and II)A: "loan" includes credit and grant: "bor-rower" includes the borrower.-f an 1IRl) loan. II)A credit. or Project Prepa-ration Facility advance and t w recipient of a grant: and "Loan Agreement"includes the agreement with the Bank providing for a credit, grant. or ad-vance. These Disbursement Guidelines apply to all loans, credits. advancesunder the Project Preparatiiin Vacility and grants financed under the In-stitutional Development Fun I and Clobal Environment Facility unless oth-erwise provided in Operatio ial Policy 10.20, Global Environment FacilityOpemons (forthcoming). T iese Guidelines also apply to other recipient-executed grants financed fro n trust funds unless, exceptionally, the termsof the agreement with the d( nor make provision for different requirements.They do not apply to Develo ment Policy loans.

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2. Disbursement Methods

2.1 The Bank establishes disbursement arrangements for an op-cration in consultation with the borrower and taking intoconsideration, iiter alia, an assessment of the borrower'sfinancial management and procurement arrangements. theprocurement plan and cash flow neis of the operation. andits disbursement experience with the borrower.

2.2 The Bank disburses proceeds from the Loan Account estab-lished for each loan, to or on the order of the borrower, usingone or more of the disbursement methods set forth below. asdetermined by the Bank.

(a) Reimbursement: The Bank may reimburse the bor-rower for expenditures eligible for financing pursuant tothe Loan Agreement ("cligible expenditures") that theborrower has prefinanced from its own resources.

(b) Advance: The Bank may advance loan proceeds intoa designated account of the borrower to finance eligibleexpenditures as they are incurred and for which sup-porting documents will be provided at a later date (seesection 5, "Designated Accounts").

(c) Direct Payment: The Bank may make payments, atthe borrower's request, directly to a third party (c.g.,supplier, contractor, consultant) for eligible expendi-tures.

(d) Special Commitment: The Bank may pay amountsto a third party for eligible expenditures under specialcommitments entered into, in writing, at the borrower'srequest and on terms and conditions agreed between theBatik and the borrower.

3. Withdrawal of Loan Proceeds

3.1 Authorized Signatures. Before loan proceeds may bewithdrawn or committed from the Loan Account. the au-

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tlhorized representativ of the borrower (as designated in theLoan Agreement) mwt furnish to the Bank (a) the name(s)of the official(s) autt orized to sign applications for with-drawal and applicati( ns for a special commit ment (collec-tively. "Applications i. and (b) the authenticated specimensignature(s) of the official(s). The borrower must indicateclearly if more than one signature is required on Applica-tions aid must notify the Bank promptly of any changes insignature authority.

3.2 Applications. Applifations must be provided to the Bankin such form and inch.de such information as the Bank mayreasonably request. A pplication forms are available onlinefrom the Client Corinction Web site at http://chcntconncc-

tion. worldbank. or orom the Bank upon request.

3.3 For withdrawal from the Loan Account for advances., theborrower should provide an original signed application forwithdrawal. For withdrawal from the Loan Account for re-imbursements and dir x-t payments and for reporting on theuse of advances. the borrower should provide an originalsigned application foi withdrawal together with one copyof supporting documcuts (see section 4. "Supporting Docu-mentation Requireme its"). For a special commitment fromthe Loan Account, th.- borrower should provide an originalsigned application for a special commitment together withone copy of the letter of credit. The Bank reserves the rightnot to accept or revie v duplicate copies of Applications andsupporting document! and may at its discretion return or

destroy the duplicates.

3.4 Electronic Deliverip. The Bank may authorize the bor-rower to use electron c means, in a manner and on termsand conditions specifu d by the Batik, to deliver Applicationsarid supporting docunentation to the Batik. Applicationsand supporting documentation delivered in accordance withthis subsection will lx deemed to have been provided to theBatik for the purposes of satisfying the requirements of sub-sectiois 3.2 and 3.3 o these Guidelines.

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3.5 Minimum Value of Applications. The Bank establishesa minimum value for Applications for reimbursement. directpayment, and special commitment. The Bank reserves theright not to accept Applications that are below such mini-mumn value.

3.6 Loan Disbursing Period. The Bank processes Appli-cations only after the Loan Agreement has been declaredeffective in accordance with the terms of the Loan Agreemnent. The expenditures for which the Applications aremade must be:

(a) paid for (i) on or after the date of the Loan Agreement.,or (ii) in the case of operations that permit retroactivefinancing, on or after the earlier date specified in theLoan Agreement for that purpose: and

(b) incurred on or before the closing date specified or re-ferred to in the Loan Agreement ("Closing Date"). ex-cept as otherwise specifically agreed with the Bank.

3.7 The loan disbursing period ends on the final date establishedby the Bank for receipt by the Bank of applications for with-drawal and supporting documentation (the "DisbursementDeadline Date"). The Disbursement Deadline Date may bethe same as the Closing Date, or up to four months after theClosing Date. Normally, to support orderly project comple-tion and closure of the Loan Account, the Bank does not ac-cept applications for withdrawal or supporting documentationreceived after the Disbursement Deadline Date. The borrowershould promptly inform the Bank of any expected implemen-tation delays or exceptional administrative issues before thesedates. The Bank notifies the borrower of any exception thatthe Banik may make to the Disbursement Deadline Date.

3.8 Disbursement Conditions. If the Loan Agreement con-tains a disblursement condition for a specific expenditure cat-egory. the Bank will disburse loan proceeds for that categoryonly after the disbursement condition has lxen fulfilled andthe Bank has notified the borrower to this effect.

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ONE. IA%-, 11 I%ItlI I~ .2K

4. Supporting Documeiitation Requirements

4.1 The borrower provid..s supporting documentation to theBank to show that loan proceeds have been or are beingused to finance eligibl expenditures.

4.2 For special commitm uts, the commercial bank provides itsconfirmation directly a the Bank that conditions for releaseof payments committ(d for withdrawal have been met.

4.3 Types of Supporti tg Documentation. The Bank re-

quires either copies of the original documents evidencingeligible expenditures ("Records") or summary reports of ex-penditure ("Summary Reports") in such form and substanceas the Bank may spe cify. Records include such documentsas invoices and receipts. A Summary Report may be either(a) the interim un-at dited financial report required underthe Loan Agreement ("Interim Financial Report") or (b)a statement of exper diture summarizing eligible expendi-tures paid during a s ated period ("Statement of Expendi-ture"). In all cases, the borrower is responsible for retaining

the original document s evidencing eligible expenditures andmaking them availabl, for audit or inspection.

4.4 The Bank determines lie types of supporting documentationthat the borrower shc uld provide, taking into considerationthe disbursement met iod used. The supporting documenta-tion may be the folloNing:

(a) For applicatioy j for reimbursement (i) InterimFinancial Report! . (ii) Statements of Expenditure, (iii)Records, or (iv) Itecords required by the Bank for spe-cific expenditures and Statements of Expenditure for allother expenditur s;

(b) For reporting i n the use of advances: (i) InterimFinancial Report ,. (ii) Statements of Expenditure, (iii)

Records, or (iv) I lecords required by the Bank for spe-cific expenditures and Statements of Expenditure for allother expenditur s;

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(c) For applications for direct payments: Records;and

(d) Aiiy other supporting docureitatioi that the Bankmay reuest by notice to the borrower.

4.5 Failure to Provide Audited Financial Statements. Ifthe borrower fails to provide any of the audited Financial

Statemneiits required ii accordance with, and within the pe-riod of time specified in. the Loan Agreement, the Bank mayat its discretion decide not to accept applications for with-drawal supported by Summary Reports. even if such reportsare accompanied by Records.

5. Designated Accounts

5.1 The borrower may open one or more designated accountsinto which the Bank may, at the borrower's request. de-posit amoutts withdrawn from the Loan Account for thepurpose of paying for eligible expenditures as they are in-curred ("Designated Account"). Before the Bank authorizesestablishment of a Designated Account. the borrower musthave adequate administrative capability, internal controls,and accounting and auditing procedures to ensure effectiveuse of the Designated Account.

5.2 The Bank may decide riot to permit the use of DesignatedAccounts in new projects if the borrower has failed to re-fund undocumented advances in the Designated Account ofany other loan to, or guaranteed by, the borrower withintwo months after the Disbursement Deadline Date for suchloan.

5.3 Type of Designated Account. A Designated Account maybe established in one of the two ways set out below, as ap-propriate for the operation concerned, as determined aridnotified by the Bank.

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(a) Segregated Acccunt: this is an account of the borrowerinto which only p -oceeds of the loan may be deposited;or

(b) Pooled Accouni: this is an account of the borrowerinto which the lo proceeds and proceeds of other fi-niancing for the ol eration (e.g.. borrower resources and/or financing by ot ct development partners) may be de-posited.

5.4 Currency of the Designated Account. Designated Ac-counts must be in a currency acceptable to the Bank. Incountries that have a I reely convertible currency, DesignatedAccounts may be hel l in the currency of the borrower orany freely convertiblc currency. The Bank may also agreeto local currency Designated Accounts when, intcr aia. thecountry's currency (e"en if not freely convertible) is stableand the expxenditures to be financed are primarily in lo-cal currency. The boirower bears all risks associated withforeign exchange flue uations between (a) the currency ofdenomination of the l)an and that of the borrower's Desig-nated Account, and (U) the currency of denomination of theborrower's Designatec Account and the currency or curren-cies of project expend tures.

5.5 Financial Institut, on. I)esignated Accounts must beopened and maintaired in a financial institution accept-able to the Bank on t,!rms and conditions acceptable to theBank. To be acceptabl e to the Bank, the financial institutionproposed by the borrower should generally meet all the fol-lowing requirements:

(a) be financially sou id:

(b) be authorized to maintain the Designated Account inthe currency agred between the Bank and the bor-rower;

(c) be audited regulh rly, and receive satisfactory audit re-ports;

11ll

(d) be able to execute a large number of transactions

promptly,

(c) be able to xrform a wide range of banking services sat-isfactorily;

(f) be able to provide a detailed statement of the Desig-nated Account:

(g) be part of a satisfactory correspondent banikiig ietwork;anid

(h) charge reasonable fees for its services.

5.6 The Banik reserves the right not to accept a fimancial insti-tution for the openinig aid/or maintenance of a DesignatedAccount if such inistitutioi has asserted or asserts a claimto set off, seize, or attach the proceeds of anly Bank loan ondeposit in a Designated Account maintained by it.

6. Terms and Conditions Applicable to Advances

6.1 Ceiling. The Bank notifies the borrower of the maximumamount of loan proceeds that may be on deposit in a Desig-nated Account (the "Ceiling"). The Bank, at its discretion,may establish the Cciling as either (a) a fixed amount, or (b)an amount that is adjusted from time to time during projectimplementation based on periodic forecasts of project cashflow needs.

6.2 Applications for Advances. The borrower may apply foran advance in an amount up to the Ceiling less the aggre-gate amount of those advances previously received by theborrower for which the borrower has iot yet provided sup-porting documentation. Normally, to support orderly closureof the Loan Account, the Bank does riot advance loan pro-cedes into the Designated Account after the Closing Date.

6.3 1Requency of Reporting Eligible Expenditures Paidfrom the Designated Account. The borrower reports onthe use of loan proceeds advanced to the Designated Account

1 12

at intervals specified hy the Batik by notice to the borrower("Reporting Period") The borrower should ensure that allamounts deposited in he Designated Account are accountedfor and their use reported prior to the Disbursement Dead-line Date. After this ([ate, the borrower must refund to theBank any advances st 11 unaccountei for or remaining in theDesignated Account.

6.4 Withholding Advan ces. The Bank is not required to makeany deposit into the I Wsignated Account if:

(a) The Bank determ: ies that payment of the deposit wouldresult in exceedin the Ceiling (see subsection 6.2, "Ap-plications for Ad% ances"):

(b) The Bank is not satisfied that the borrower's plannedproject expenditu es justify the deposit. The Bank may,by notice to the b rrower, adjust the amount it depositsor withhold furt er deposits into the Designated Ac-count until it is s ,tisfied that the financial neceds of the

project warrant fi rther deposits:

(c) The borrower fail; to take the action required pursuantto the determinations made by the Bank under subsec-

tions 7.1 and 7.2 of these Guidelines:

(d) The borrower fail; to provide any of the audited Finan-

cial Statements rc quired in accordance with, and withinthe period of tim( specified in. the Loan Agreement:

(e) The Bank determines that all further withdrawals ofloan proceeds should be made by the borrower directlyfrom the Loan Ac ::ount; or

(f The Bank has notified the borrower of its intention tosuspend in whole or in part the borrower's right to makewithdrawals from the Loan Account.

6.5 Excess Advances. li at any time the Batik determines thatany amount deposited in the Designated Account will not berequired to cover furt ier payments for eligible expenditures("Excess Amount"), t may, at its discretion, require theborrower to take one af the two actions listed below. Upon

131

notification by the Bank. the borrower must promptly takethe action requested:

(a) Provide evidence satisfactory to the Bank within a pe-riod specified by the Bank that the Excess Amount willbe used to pay for eligible expendituires. If the evidenceis not furnished within the time period specified. theborrower must. promptly refund the Excess Amount tothe Bank: or

(b) Refund the Excess Amount promptly.

7. Ineligible Expenditures

7.1 Ineligible Expenditures Generally. If the Bank deter-mines that any amount of the loan was used to pay for anexpenditure that is not eligible pursuant to the Loan Agree-ment ("ineligible expenditure"). the Bank may. at its dis-cretion, require the borrower to take one of the two actionslisted below. Upon notification by the Bank. the borrowermust promptly take the action requested:

(a) Refund an equivalent amount to the Bank; or

(b) Exceptionally, provide substitute documentation evi-dencing other eligible expenditures.

7.2 Ineligible Expenditures Paid from the DesignatedAccount. If the Bank determines that any payment out ofthe Designated Account was not justified by the evidencefurnished to the Bank or was made for an ineligible expern-diture. the Bank may, at its discretion, require the borrowerto take one of the actions listed below. Upon notificationby the Bank. the borrower must promptly take the actionrequested:

(a) Provide the additional evidence requested by the Bank:(b) Deposit an equivalent amount into the Designated Ac-

count;

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(c) Refund an equivalent amount to the Bank; or

(d) Exceptionally, provide substitute documentation cvi-dencing other clig ble expenditures.

8. Refunds

8.1 Borrower Decision to Refund. The borrower may, uponnotice to the Bank. re .und all or any amount of the loan ondeposit in the Design.9ted Account to the Bank for credit tothe Loan Account.

8.2 Consequence of Refunds. The Bank shall determinewhether refunds mad< to the Bank in accordance with sec-tions 6 and 7 and s ibsection 8.1 of these DisbursementGuidelines will be cre lited to the Loan Account for subse-quent withdrawal or o1r cancellation. Borrowers should beaware that refunds of loan proceeds may result in swap ter-mination fees and/or inwinding costs for amounts for whichthe interest rate basi; or currency has been converted orhedged.

8.3 Other Obligations Jnaffected by Refunds. Refunds ofamounts of the loan d- not affect any remedies of the Bankunder the Loan Agree ient.

15 1

W K1 \R ) IANK

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\Vofld lIlli2188 l1 I nee-(t, NW

Washlingtonl, D(¯ 2043

Attachinir: 2

For n of Authorized Signatory Letter[Letterhead]

M nistry of Economy and Finance[Street address][City] [Country]

[Iu E]

The World Bank1818 H Street, N.W.Washington, DC 20433United States of AmericaAttention: J. Humberto Lopez, D irector

Re: GEF Grant No.[name] Project

I refer to the Grant Agrcement ("Agreement") between the Republic of Panam t ( ie"Recipient") and the International Bank for Reconstruction and Development (the "World B i11. '),acting as administrator of the Gk bal Environment Facility, dated _ providing the :1 leGrant. For the purposes of Sectic n 2.03 of the General Conditions as defined in the Agre rwi it,any i[one] of the persons whose iuthenticated specimen signatures appear below is auth: .don behalf of the Recipient to sig - applications for withdrawal [and applications for a sp alcommitment] under this Grant.

For the purpose of deliv ring Applications to the World Bank, 2[each] of the pir ; -iswhose authenticated specimen sig natures appears below is authorized on behalf of the Rec 1 i it,acting 3[individually] 4Uointly], tc deliver Applications, and evidence in support thereof it Ieterms and conditions specified by the World Bank.

s[This confirms that the Recipient is authorizing such persons to accept (-Cc reIdentification Credentials (SIDC) and to deliver the Applications and supporting docum r :.; to

' Instruction to the Recipient: Stipulate i ['more than one person needs to sign Applications, and how many or v + :hpositions, and if any thresholds apply. Pi ?ase delete this footnote in final letter that is sent to the World Bank.

2 Instruction to the Recipient: Stipulate i r'more than one person needs to jointly sign Applications, if so, plea! Iindicate the actual number. Please delete this footnote in final letter that is sent to the World Bank

I Instruction to the Recipient: Use this b -acket if any one of the authorized persons may sign; if this is notapplicable, please delete. Please delete iris footnote in final letter that is sent to the World Bank

4 Instruction to the Recipient: Use this b -acket only if several individuals must jointly sign each Application; f tli sis not applicable, please delete. Please a?lete this footnote in final letter that is sent to the World Bank

the World Bank by electronic means. In full recognition that the World Bank shall rely upon suchrepresentations and warranties, including without limitation, the representations and warrantiescontained in the Terms and Conditions of Use of Secure Identification Credentials in connection with Useof Electronic Means to Process Applications and Supporting Documentation ("Terms and Conditionsof Use of SIDC"), the Recipient represents and warrants to the World Bank that it will cause suchpersons to abide by those terms and conditions.]

This Authorization replaces and supersedes any Authorization currently in the WorldBank records with respect to this Agreement.

[Name], [position] Specimen Signature:

[Name], [position] Specimen Signature:

[Name], [position] Specimen Signature:

Yours truly,

/ signed /

MOF Minister

* Instruction to the Recipient: Add this paragraph if the Recipient wishes to authorize the listed persons to acceptSecure Identification Credentials and to deliver Applications by electronic means; if this is not applicable, pleasedelete the paragraph. Please delete this footnote in final letter that is sent to the World Bank

I Ii t:hment3

Terms and Conditi)ns of Use of Secure Identification Credentialsin conntction with Use of Electronic Means

to Process Applicationsan:d Supporting Documentation

March 1, 2013

The World Bank (Bank)6 will provide sec ire identification credentials (SIDC) to permit the Borrov -r :o deliverapplications for withdrawal and applicatio)ns for special commitments under the Agreement(s) at c ipportingdocumentation (such applications and upporting documentation together referred to in thes' -rms andConditions of Use as Applications) to the 3ank electronically, on the terms and conditions of use spc c :d herein.

SIDC can be either: (a) hardware-based (F hysical Token), or (b) software-based (Soft Token). The I a reservesthe right to determine which type of SID( is most appropriate.

A. Identification of Users.

1. The Borrower will be required to ider tify in a completed Authorized Signatory Letter (ASL) d i deliveredto and received by the Bank each person who will be authorized to deliver Applications. I i 3ank willprovide SIDC to each person identified in the ASL (Signatory), as provided below. The B ) -r wer shallalso immediately notify the Banl if a Signatory is no longer authorized by the Borrow< r 1 act as aSignatory.

2. Each Signatory must register a; a user on the Bank's Client Connection ((( website(https://clientconnection.worldban k.org) prior to receipt of his/her SIDC. Registration on C, 7v. 11 requirethat the Signatory establish a CC password (CC Password). The Signatory shall not reve 1 1 s/her CCPassword to anyone or store or record the CC Password in written or other form. Upon re ,it ition as aCC user, the Signatory will be ass gned a unique identifying account name.

B. Initialization of SIDC.

1. Prior to initialization of SIDC by a Signatory, the Signatory will acknowledge having rea, I, t iderstoodand agreed to be bound by these T erms and Conditions of Use.

2. Where a Physical Token is to be ised, promptly upon receipt of the Physical Token, the 5 i 1;r itory willaccess CC using his/her account iniame and CC Password and register his/her Physical To i!n and set apersonal identification number (PI4) to be used in connection with the use of his/her Physica. F: ken, afterwhich the Physical Token will be iiitialized for use by the Signatory exclusively for purposes <f leliveringApplications. Where a Soft Toker is to be used, the Signatory will access CC using his/her t c, unt nameand CC Password and set a personal identification number (PIN) to be used in connection v I. he use ofhis/her Soft Token, after which th Soft Token will be initialized for use by the Signatory e.: I. sively forpurposes of delivering Applications. Upon initialization of the SIDC, the Signatory will be a '1 1 )C User".

6 "Bank" includes IBRD and IDA."Borrower" includes the borrower of an IBRD lNan, IDA credit, or Project Preparation Facility advance and the recip .1 fa grant.

The Bank will maintain in its database a user account (Account) for each SIDC User for purposes ofmanaging the SIDC of the SIDC User. Neither the Borrower nor the SIDC User will have any access tothe Account.

3. Prior to first use of the SIDC by the SIDC User, the Borrower shall ensure that the SIDC User has receivedtraining materials provided by the Bank in use of the SIDC.

C. Use of SIDC.

1. Use of the SIDC is strictly limited to use in the delivery of Applications by the SIDC User in the mannerprescribed by the Bank in the Agreement(s) and these Terms and Conditions. Any other use of the SIDCis prohibited.

2. The Bank assumes no responsibility or liability whatsoever for any misuse of the SIDC by the SIDC User,other representatives of the Borrower, or third parties.

3. The Borrower undertakes to ensure, and represents and warrants to the Bank (such representation andwarranty being expressly relied upon by the Bank in granting SIDC) that each SIDC User understandsand will abide by, these Terms and Conditions of Use, including without limitation the following:

4. Security

4.1. The SIDC User shall not reveal his/her PIN to anyone or store or record the PIN in written or otherform.

4.2. The SIDC User shall not allow anyone else to utilize his/her SIDC to deliver an Application to theBank.

4.3. The SIDC User shall always logout from CC when not using the system. Failure to logout properlycan create a route into the system that is unprotected.

4.4. If the SIDC User believes a third party has learned his/her PIN or has lost his/her Physical Tokenhe/she shall immediately notify clientconnection(-worldbank.org.

4.5. The Borrower shall immediately notify the Bank at clientconnection@worldbank.org of any lost,stolen or compromised SIDC, and take other reasonable steps to ensure such SIDC are disabledimmediately.

5. Reservation of Right to Disable SIDC

5.1. The Borrower shall reserve the right to revoke the authorization of a SIDC User to use a SIDC forany reason.

5.2. The Bank reserves the right, in its sole discretion, to temporarily or permanently disable a SIDC,de-activate a SIDC User's Account or both.

6. Care of Physical Tokens

6.1. Physical Tokens will remain the property of the Bank.

6.2. The Bank will physically de liver a Physical Token to each Signatory designated to re i one in amanner to be determined by and s tisfactory to the Bank.

6.3. Physical Tokens contain delicate and sophisticated instrumentation and therefore shoL I - handledwith due care, and should not be i -nmersed in liquids, exposed to extreme temperatures, cri sh [d or bent.Also, Physical Tokens should be kept more than five (5) cm from devices that generate el chi magneticradiation (EMR), such as mobile )hones, phone-enabled PDAs, smart phones and other sii i . devices.Physical Tokens should be carried and stored separate from any EMR device. At close ranj,. ( :ss than 5cm), these devices can output high levels of EMR that can interfere with the proper operatiot I :lectronicequipment, including the Physical Token.

6.4. Without derogating from tf ese Terms and Conditions of Use, other technical instrL i ns on theproper use and care of Physical Tokens are available at http://www.rsa.com.

7. Replacement

7.1. Lost, damaged, compromis( d (in terms of 4.5, above) or destroyed Physical Tokens w 1 replacedat the expense of the Borrower.

7.2. The Bank reserves the right, in its sole discretion, not to replace any Physical Token i1 ie case ofmisuse, or not to reactivate a SIDC User's Account.

Attachment 4

Summary Statement

Payments made during the period from to Date:Application No.:

TF No.:

Category No.:

1 2 3 4 5 6 7 8 9 10

Eligible % CurrencyCurrency and Total Amount and Amount

Item Name of Currency and Total Invoice Amount of Invoice oma oNo. Service Provider Contract Amount Number Covered by Schedule 2 Eligible for Paid From Exchange Remarks

ApCationd bof Grant Financing Designated RateApplication (5 x 6) Account (if

any)

TOTALS

Attachment 5

Statement of Expenditures (SOE)

Payments made during the period from to Date:Application No.:

TF No.:

Category No.:

2 3 4 5 6 7 8 9

Eligible % Currency andCurrency and Total Eibl Amount Amount Paid

Item Serice Currency and Total Amount of Invoice fro Eligible for From Exchange RemarksSrieProvider. Schedule 2 ofReakNo. Contract Amount Covered by Grant Financing Designated Rate

Application Agreement (4 x 5) Account (ifany)

TOTALS

Attachment 6

Custom Statement of Expenditure - Subprojects

Grant/TF No.:Category No.:Period covered:

1 2 3 4 5 6 7 8 9 10 11 12 13

BriefN Description of

\ Currency EligibleAddress of Signature Closing Date of Total Amountand Expenditures E

Amount of Beneficiary Date of Date of fulfillment be financed amount g Amount Paid FromAonofto covre byane PlgbefrI eintd~Subproject of Subgrant Subgrant or Subgrant or agreement bycovered by o Eligible for Designated

z Subproject EySbrnor Subproject Subproject conditions Withdrawal W Financing Account (if 0

4 Subproject Agreement Agreement (if any) Application any)E Agreement (ie. Goods,

a AgreementWorks,

Services, etc.)

Supporting documents for this SOE retained at:(insert location)

Attachn 1 r 7

Paym4,!nts Made during Reporting PeriodAgainst Contracts Subject to the World Bank's Prior Review

Contraci Contraci Contract to Supplier Sup p li c duri-gNunber Supplier Date Amount Contiet iPer- - 'od

Attachment 8

CONCILIACION DE LA CUENTA DESIGNADAPRESTAMO/CREDITOIDONACIÓN No:NOMBRE DEL BANCO:NÚMERO DE CUENTA:

USD1. Total de Depósitos2. Menos Total Documentado3. Saldo por Recuperar 0.00

4. Saldo al ¡ / de Acuerdo al Estado Bancario Adjunto 0.00

5. Monto de la Solicitud No. 0.006. Más monto pendiente de Reembolso por el Banco 1/ 0.007. Más retiros efectuados aún no solicitados al Banco 21 0.008. Menos montos debitados después de la fecha del Estado Adjunto 0.00

9. Menos intereses generados por la Cuenta Designada

10. Total (4 + 5 + 6 + 7+ 8 - 9) 0.00

11. Discrepancias entre (3 y 9) 0.00

OBSERVACIONES:

1/ Valor pendiente de reembolso por el BancoNo. de Solicitud Monto

21 Retiros efectuados aun no solicitados al BancoFecha Descripción Monto

Aqui se incluira una explicación del del Punto 8), o sea en que fuegastado el dinero que aún no fue solicitado al Banco. Esto es exigido

cuando este importe supera el 15% del depósito en la CuentaDesignada. 0.00

1. Suma de todos los importes adelantados por el Banco a la Cuenta Designada2. Suna de todos los importes documentados3. Linea 1 menos Linea 24. Saldo igual al estado de cuenta bancário presentado. (Converter para dólares)5. kiformar el im-porte total a ser documentado en la solicitud que se está presentando6. Solo en el caso de tener importes pendientes de pagar por el banco de Solicitudes anteriores.7. Este importe es la parte que fue retirada de la Cuenta Designada y no corresponde a gastos que se están incluyendo en elpróximo SOE Refiere a nuevos gastos que aún no han sido incluidos en SOE8. Aqui solo iria algo si hubieran retirado un nuevo importe de la Cuanta Designada, posterior a la fecha del estado de cuentabancário que está siendo presentado