IOFFICIAL DOCUMENTS STATUTORY COMMITTEE REPORT TO: The President, International Bank for Reconstruction and Development Report of the Committee under Section 4 (iii) of Article III of the Articles of Agreement on the Proposed Loan (Strengthening Public Sector Management Technical Assistance Project) to the Municipality of Rio de Janeiro to be guaranteed by the Federative Republic of Brazil. The undersigned Committee constituted under Section 7 of Article V of the Articles of Agreement of International Bank for Reconstruction and Development (the Bank) hereby submits its report pursuant to Section 4 (iii) of Article III of said Articles in respect of the proposal that the Bank grant to the Municipality of Rio de Janeiro a loan in an amount of US$16,200,000, which loan is to be guaranteed by the Federative Republic of Brazil. The purpose of said loan is to support institutional capacity strengthening of the Borrower to enhance public service delivery, including in health, education and environmental management. 1. The Committee has carefully studied the merits of the proposal to grant such a loan, and of the purpose to which the proceeds of the loan are to be applied. 2. The Committee is of the opinion that the Project toward the financing of which the proceeds of such loan are to be applied comes within the purposes of the Bank as set forth in Article I of said Articles of Agreement, and that said Project is designed to promote the development of the productive facilities and resources of the Federative Republic of Brazil and is in the interest of the Federative Republic of Brazil and of the members of the Bank as a whole. -2- Federative Republic of Brazil (Strengthening Public Sector Management Technical Assistance) 3. Accordingly, the Committee finds that said Project merits financial assistance from the Bank, and hereby recommends said Project for such assistance. COMMITTEE Senior Vice President and Group General Counsel Expert Selected Govemnor for the Federativ= blic of Brazil Regional Vice President Latin America and the Caribbean Dated at Washington, D. C. A4y/, ?/