MARIANNE FAY Director Bolivia, Chile, Ecuador and Peru 04-Apr-2020 ______________ His Excellency Mr. Richard Martínez Alvarado Minister of Economy and Finance Ministry of Economy and Finance Av. Amazonas y Pereira, Plataforma Gubernamental de Gestión Financiera Pisos 10 y 11, Quito 170507 Quito, Ecuador Re: IBRD Loan 9087-EC (Ecuador: COVID-19 Emergency Response Project) Additional Instructions: Disbursement and Financial Information Letter Excellency: I refer to the Loan Agreement between Republic of Ecuador (the “Borrower”) and the International Bank for Reconstruction and Development (the “Bank”) for the above-referenced Project. The General Conditions, as defined in the Loan Agreement, provide that the Borrower may from time to time request withdrawals of Loan Amounts from the Loan Account in accordance with the Disbursement and Financial Information Letter, and such additional instructions as the Bank may specify from time to time by notice to the Borrower. The General Conditions also provide that the Disbursement and Financial Information Letter may set out Project specific financial reporting requirements. This letter constitutes such Disbursement and Financial Information Letter (“DFIL”), and may be revised from time to time. I. Disbursement Arrangements, Withdrawal and Reporting of Uses of Loan Funds The Disbursement Guidelines for Investment Project Financing, dated February 2017, (“Disbursement Guidelines”) are available in the Bank’s public website at https://www.worldbank.org and its secure website “Client Connection” at https://clientconnection.worldbank.org. The Disbursement Guidelines are an integral part of the DFIL, and the manner in which the provisions in the Disbursement Guidelines apply to the Loan is specified below. (i) Disbursement Arrangements. The table in Schedule 1 sets out the disbursement methods which may be used by the Borrower, information on registration of authorized signatures, processing of withdrawal applications (including minimum value of applications and processing of advances), instructions on supporting documentation, and frequency of reporting on the Designated Account. (ii) Electronic Delivery (Section 10.01 (c) of the General Conditions). The Bank may permit the Borrower to electronically deliver applications (with supporting documents) through the Bank’s web-based portal (https://clientconnection.worldbank.org) “Client Connection”. This option may be affected if the officials designated in writing by the Borrower who are authorized to sign and deliver Applications have registered as users of “Client Connection”. The designated officials may deliver Applications electronically by completing the Form 2380, which is accessible through “Client Connection”. By signing the Authorized Signatory Letter, the Borrower confirms that it is authorizing such persons to accept Secure Identification Credentials (SIDC) and to deliver the Applications and supporting documents to the Bank by electronic means. 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. 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, available in the Bank's public website at https://worldbank.org and “Client Connection”; and (b) to cause such official to abide by those terms and conditions. II. Financial Reports and Audits (Section 5.09 of the General Conditions) (i) Financial Reports. The Borrower, through the Ministry of Public Health (MSP), must prepare and furnish to the Bank not later than forty-five (45) days after the end of each reported period, interim unaudited financial reports (“IFR”) for the Project covering a 12-month period, except for the first IFR that will cover from effectiveness date to the end of CY20, including retroactive expenditures if any. (ii) Audits. The audit of the Financial Statements must cover the entire implementation period. The one- time audited Financial Statements must be furnished to the Bank not later than six (6) months after the end of such period. III. Other Information For additional information on disbursement arrangements, please refer to the Loan Handbook available on the Bank’s website (http://www.worldbank.org/) and “Client Connection”. The Bank recommends that you register as a user of “Client Connection”. From thi s 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. For more information about the website and registration arrangements, or if you have any queries in relation to the above, please contact the World Bank by email at AskLoans@WorldBank.org using the above reference. Sincerely, Marianne Fay Director Bolivia, Chile, Ecuador and Perú Latin America and the Caribbean Region Attachments 1. Form of Authorized Signatory Letter 2. Three-month forecast (pending) 3. Statement of Expenditure (SOE) 4. Sample Designated Account Activity Statement Schedule 1 : Disbursement Provisions Basic Information Country Republic of Ecuador Section III.B.2 of Schedule 2 to Closing Date Borrower Ministry of Economy and Finance the Loan Agreement. Loan 9087-EC Disbursement Number Ecuador: COVID-19 Emergency Four months after the closing Name of the Project Deadline Date Response Project date. Subsection 3.7 ** Disbursement Methods and Supporting Documentation Disbursement Methods Methods Supporting Documentation Section 2 (**) Subsections 4.3 and 4.4 (**) Direct Payment Yes  Copy of receipt and/or supplier invoice. Reimbursement Yes  Statement of Expenditures (SOE) in the format provided in Attachment 3 of the DFIL.  Three-month forecast, in the format provided in Attachment 2 of the DFIL, for requests for Designated Account Yes advances;  SOE in the format provided in Attachment 3 of the DFIL; and  Designated Account Activity Statement, in the form provided in Attachment 4, with a copy of the bank statement. Special Commitments No Not applicable Designated Account (Sections 5 and 6 **) Type Segregated Ceiling Variable Financial Institution - Name Central Bank of Ecuador Currency USD Frequency of Reporting Six-month forecast approved by Quarterly or more often if needed Amount Subsection 6.3 (**) Bank. Minimum Value of Applications (subsection 3.5) The minimum value of applications for Reimbursement and Direct Payment is USD 50,000 equivalent. Authorized Signatures (Subsection 3.1 and 3.2 **) Withdrawal and Documentation Applications (Subsection 3.3 and 3.4 **) Authorized Signatures: A letter in the Form attached (Attachment 1) 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 1818 H Street, N.W. Washington, DC 20433, USA Attention: Mrs. Marianne Fay, Country Director Applications: Completed Applications for withdrawal, together with supporting documents, should be provided through the Bank’s Client Connection, web- based portal, following the instructions for electronic delivery. In the case the Borrower does not have internet access, the Bank may permit the delivery of Applications for withdrawal, together with supporting documents, to the following address: Banco Mundial SCN Quadra 02, Lote A Ed. Corporate Financial Center, 7º andar 70712-900, Brasília, D.F. – Brazil Attention: Loan Operations Additional Instructions ** Sections and subsections relate to the “Disbursement Guidelines for Investment Project Financing”, dated February 2017. Attachment 1 [Letterhead] [DATE] The World Bank 1818 H Street, N.W. Washington, D.C. 20433 United States of America Attention: [Country Director] Re: IBRD Loan ____-EC COVID-19 Emergency Response Project I refer to the Loan Agreement between the International Bank for Reconstruction and Development (the “World Bank”) and the Republic of Ecuador (the “Borrower”), dated _______, providing the above Loan. For the purposes of Section 2.03 of the General Conditions as defined in the Agreement, any 1[one] of the persons whose authenticated specimen signatures appear below is authorized on behalf of the Borrower to sign applications for withdrawal under this Loan. For the purpose of delivering Applications to the World Bank, 2[each] of the persons whose authenticated specimen signatures appears below is authorized on behalf of the Borrower, acting 3 [individually] 4[jointly], to deliver Applications, and evidence in support thereof on the terms and conditions specified by the World Bank. 5 [This confirms that the Borrower is authorizing such persons to accept Secure Identification Credentials (SIDC) and to deliver the Applications and supporting documents to the World Bank by electronic means. In full recognition that the World Bank shall rely upon such representations and warranties, including without limitation, the representations and warranties contained in the 1 Instruction to the Borrower: Stipulate if more than one person needs to sign Applications, and how many or which positions, and if any thresholds apply. Please delete this footnote in final letter that is sent to the Bank. 2 Instruction to the Borrower: Stipulate if more than one person needs to jointly sign Applications, if so, please indicate the actual number. Please delete this footnote in final letter that is sent to the Bank. 3 Instruction to the Borrower: Use this bracket if any one of the authorized persons may sign; if this is not applicable, please delete. Please delete this footnote in final letter that is sent to the Bank. 4 Instruction to the Borrower: Use this bracket only if several individuals must jointly sign each Application; if this is not applicable, please delete. Please delete this footnote in final letter that is sent to the Bank. 5 Instruction to the Borrower: Add this paragraph if the Borrower wishes to authorize the listed persons to accept Secure Identification Credentials and to deliver Applications by electronic means; if this is not applicable, please delete the paragraph. Please delete this footnote in final letter that is sent to the Bank. 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 SIDC”), the Borrower represents and warrants to the World Bank that it will cause such persons to abide by those terms and conditions.] This Authorization replaces and supersedes any Authorization currently in the World Bank records with respect to this Agreement. [Name], [position] Specimen Signature: ____________________ [Name], [position] Specimen Signature: ____________________ [Name], [position] Specimen Signature: ____________________ Yours truly, / signed / _______________________ [Position] Attachment 2 PROGRAMA ESTRATÉGICO DE PREPARACIÓN Y RESPUESTA AL COVID-19 PROYECCION DE DESEMBOLSOS - BIRF XXXX MINISTERIO DE SALUD PUBLICA - MSP Al MM/DD/AAAA (en U.S Dólares) TOTAL PROYECCION CATEGORIA Mes 1 Mes 2 Mes 3 Mes 4 Mes 5 Mes 6 COMPONENTES DEL SEMESTRE DESEMB. BM BM BM BM BM BM BM Componente 1: Apoyo al Programa Nacional para responder a la pandemia de COVID-19 Sub-componente 1.1: Apoyo a la estrategia nacional de comunicación para controlar la propagación de COVID-19 0.00 Sub-componente 1.2: Fortalecemiento de los aspectos críticos de la prestación de servicios de salud para hacer frente a la mayor demanda de servicios que plantean las emergencias 0.00 TOTAL COMPONENTE 1 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Componente 2: Gestión y Monitoreo del Proyecto 0.00 TOTAL COMPONENTE 2 0.00 0.00 0.00 0.00 0.00 0.00 0.00 TOTAL 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (-) Programación de pagos a través de Pagos Directos (financ. Préstamo) 0.00 PROGRAMACION DE PAGOS A TRAVES DE AVANCES A LA CUENTA DESIGNADA 0.00 (A) (-) Sa l do de Efectivo Di s poni bl e en Cuenta Des i gna da a l a fecha del requeri mi ento 0.00 Desembolso requerido para el próximo semestre 0.00 NOTAS Y RECOMENDACIONES: (A) Corresponde al saldo de efectivo disponible en la Cuenta Designada. Incluir la conciliación de Avances a la Cuenta Designada y el Estado Bancario respectivo. (B) Recuerde que la proyección de gastos, debe incluir los requerimiento de efectivo, es decir pagos efectivos previstos. Además debe corresponder a contratos adjudicados y en ejecución. (C) Esta información debe tomar en cuenta el Plan Operativo del Proyecto (POA) y el Plan de Adquisiciones Attachment 3 BANCO INTERNACIONAL DE RECONSTRUCCIÓN Y FOMENTO Certficado de Gastos PRESTAMO/CREDITO/DONACION NO.: PAGOS REALIZANDO DURNATE EL PERÍODO DE: AL NO. SOLICITUD: NO. HOJA: LOS PAGOS LISTADOS FUERON INCURRIDOS DURANTE EL PERIODO RETROACTIVO (SI o NO): NO. CATEGORIA: LOS PAGOS LISTADOS FUERON INCURRIDOS ANTES DE LA FECHA DE CIERRE (SI o NO): HOJA NO.: CUENTA DESIGNADA SOLAMENTE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Cantidad Contrato Registro Moneda Monto Total Monto Número Monto % Monto Tasa Fecha Debitada Nombre del Breve descripción Código del Sujeto a del del del acumulado de la Fecha del Pagado al Financ. Admisible de Débito Cuenta Proveedor del gasto gasto revisión previa contrato contrato Contrato del contrato Factura Pago Proveedor por BIRF (Col 11 X 12) Cambio Cuenta Designada (SI o NO) en C.C. (incluido en o Recibo Designada (Col 13 / 14) SOEs anteriores) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 TOTAL 0.00 DOCUMENTACIÓN DE RESPALDO PARA ESTE CERTIFICADO DE GASTOS ESTÁ EN: (indique el local) Instrucciones: Preparar un Certificado de Gastos para cada Categoría Columna 1: Informe el nombre del proveedor Columna 2: Hacer una breve descripción del gasto (ejemplo: honorarios dic/2012, consultoría, servicio de limpieza, viáticos, servicios de auditoría, etc). Columna 3: Identificar cual tipo de gasto fue hecho (ejemplo: CS: consultoría / CW: obras / GO: bienes / OP: costos operativos / TR: entrenamiento / NCS: servicios de no consultoría / SP: Subproyectos) Columna 4: Informar si el contrato fue o no sometido a revisión previa del Banco Mundial. Columna 5: Informar número de registro del contrato en Client Connection Columna 6: Informar moneda del contrato Columna 7: Informar valor del contrato (en la moneda que fue indicada en la columna 6) Columna 8: Informar valor del contrato que ya fue pagado, incluido en SOEs anteriores. Columna 9: Informar el número de la factura o recibo del proveedor Columna 10: Informar fecha del pago al proveedor Columna 11: Informar valor pagado al proveedor, en la moneda indicada en la factura. Columna 12: Indicar el porcentual de financiamiento (de acuerdo al convenio de préstamo/donación) Columna 13: Calculo del monto admisible para financiamiento (resultado de la multiplicación de la columna 11 por la 12). Para los casos en que el porcentual de financiamiento es de 100%, los valores de esa columna serán los mimos presentados en la columna 11. Columna 14: Indicar la tasa de cambio. Favor tener en cuenta que la tasa de cambio a ser utilizada debe ser la tasa de internalización de los fondos. Es decir que, el proyecto debe utilizar la misma tasa que fue utilizada para transformar los dólares que el Banco envió al proyecto en moneda local. Ese punto es muy importante, ya el Banco no reconoce diferencias de cambio como gasto elegible de financiamiento. Columna 15: Fecha que en la cual el proyecto retiró los fondos de la cuenta designada (en dólares) y los envió a la cuenta operativa (en moneda local). Columna 16: Cálculo de la columna 13 / columna 14. Esa columna refleja en monto equivalente en dólares del gasto realizado, que será considerado por el Banco para documentación. Attachment 4