The World Bank 1818 H Street N. (202) 473-1000 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPfENT , D.C 0433 Cable Address: INTBAFRAD INTERNATIONAL DEVELOPMENT ASSOCIATION U. . . Cable Address: INDEVAS March 6, 2013 Her Excellency Viviana Caro Minister of Development Planning Ministry of Development Planning Av. Mariscal Santa Cruz No. 1092 Edificio Ex-COMIBOL Piso 5 La Paz, Bolivia Re: BOLIVIA: GPOBA Grant Agreement (Decentralized Electricity for Universal Access Project) TF090206-IFC and TF090207-DFID Additional Instructions: Disbursement Letter - First Restatement Excellency: I refer to the Grant Agreement ("Agreement") between the International Development Association ("World Bank"), acting as administrator of the Global Partnership on Output-based Aid ("GPOBA"), and the Republic of Bolivia (the "Recipient") for the above-referenced project, dated June 26, 2007. The Agreement provides that the World Bank may issue additional instructions regarding the withdrawal of the proceeds of Grant TF090206-IFC and TF090207- DFID ("Grant"). This letter ("Disbursement Letter"), as revised from time to time, constitutes the additional instructions. This Disbursement Letter is the First Restatement of the Disbursement Letter dated June 26, 2007 for the above referenced project restating Section I (ii) to include grace period for disbursement after the closing date of the project. All other provisions of the Disbursement Letter dated June 26, 2007 shall remain in force and effect. The attached World Bank Disbursement Guidelines for Projects, dated May 1, 2006, ("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 Grant 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 Grant: * Reimbursement * Direct Payment -2- (ii) Disbursement Deadline Date (subsection 3.7). The Disbursement Deadline Date is 4 months after the Closing Date specified in the Agreement. Any changes to this date will be notified by the World Bank. (iii) Disbursement Conditions (subsection 3.8). Please refer to the Disbursement Conditions in the Agreement under Section IV.B. of Schedule 2. II. Withdrawal of Grant Proceeds (i) Authorized Signatures (subsection 3.1). A letter in the Form attached (Attachment 2) should be furnished to the World 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 United States of America Attention: Marcelo Giugale, Country Director (ii) Applications (subsections 3.2 - 3.3). Please provide completed and signed applications for withdrawal, together with supporting documents, to the address indicated below: The World Bank 1818 H Street, N.W. Washington, DC 20433 United States of America Attention: Loan Department (iii) Minimum Value of Applications (subsection 3.5). The Minimum Value of Applications is US$20,000 for Direct Payments and Reimbursements. (iv) Advances (sections 5 and 6). For the reason set forth in subsection 5.2 of the Disbursement Guidelines, the advancing of grant proceeds into a designated account is not a Disbursement Method currently available under this Grant. Please send Applications only in support of the Disbursement Methods listed in subsection I (i) of this letter. 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 under Category I and Category 2 Subsidy Payments: o Statement of Expenditure (SOE) in the form attached (Attachment 3); and o Any additional documentation detailed in Section III. (iii) of this letter. -3 - * For requests for Reimbursement under Category 2 and Category 3 for payments above US$50,000: 0 Statement of Expenditure (SOE) in the form attached (Attachment 4); " Records evidencing eligible expenditures (e.g., copies of receipts, supplier invoices, contracts) for payments against Goods, Services, Consultant Services, Operating Costs, Training and Workshops; and o List of payments against contracts that are subject to the World Bank's prior review, in the form attached (Attachment 6). * For requests for Reimbursement under Category 2 and Category 3 for payments below US$50,000: 0 Statement of Expenditure (SOE) in the form attached (Attachment 5); and a List of payments against contracts that are subject to the World Bank's prior review, in the form attached (Attachment 6). * For requests for Direct Payment: records evidencing eligible expenditures, e.g., copies of receipts, supplier invoices, or contracts for any payment. (ii) Frequency of Reporting Eligible Expenditures (subsection 6.3): Monthly. (iii) Other Supporting Documentation Instructions Statement of Expenditures presented for the initial advance made under Part I (Category 1) of the project, should be accompanied by a copy of the signed Service Management Contract. Subsequent payments made under each contract shall follow the payment schedule detailed in the related contract. V. 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 secure website "Client Connection" at http://clientconnection.worldbank.org. Printed 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 (http://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. For more information about the website and registration arrangements, please contact Doris Elizabeth Pineda at dpineda@worldbank.org of the World Bank Honduras country office. -4- If you have any queries in relation to the above, please contact the World Bank's Loan Department by sending an email to loa-tf@worldbank.org and using the grant number and name as a reference. Yours sincerely, V) By__ Vidya Narasimhan, Loan Department Attachments As per Original Disbursement letter dated June 26, 2007.