OFFICIAL The World Bank . (202) 473-1000 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPM 00 CW'E T4 P433 Cable Address: INTBAFRAD INTERNATIONAL DEVELOPMENT ASSOCIATION U.S.A. Cable Address: INDEVAS December 11, 2013 Mr. Rafael Pardo Rueda Ministro Ministerio de Trabajo Bogot, Colombia Ms. Sandra Bessudo Lion Directora General Agencia Presidencial de Cooperacidn Internacional de Colombia Presidencia de la Repziblica BogotA, Colombia Re: Colombia: IDF Grant for Strengthening the Ministry of Labor's Capacity to Design Interventions and Manage for Results Project IDF Grant No. TF014557 Additional Instructions: Disbursement Letter Dear Sir/Madam: I refer to the Letter Agreement ("Agreement") between the International Bank for Reconstruction and Development ("World Bank") and the Labor Ministry the ("Recipient"), for the benefit of the Republic of Colombia ("Member Country"), with the participation of the Member Country's Agencia Presidencial de Cooperaci6n Internacional de Colombia ("ACP"), (in fulfillment of its role set forth in the Member Country's Presidential Decree No. 4152, dated November 3, 2011) for the above-referenced Grant, dated December 11, 2013. The Agreement provides that the World Bank may issue additional instructions regarding the withdrawal of the proceeds of Grant TF014557 ("Grant"). This letter ("Disbursement Letter"), as revised from time to time, constitutes the additional instructions. 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 * 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. H. 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 Carrera 7 No. 71-21 Torre A, piso 16 Apartado 10229 Edificio Fiduagraria, Bogota, Colombia Attention: Gloria M. Grandolini, 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: Banco Mundial Sector Comercial Norte, Quadra 02, Lote A Edificio Corporate Finance Center 70 andar 70712-900 Brasilia, D.F. Brazil Attention: Loan Department (iii) Electronic Delivery (subsection 3.4) The World Bank may permit the Recipient to electronically deliver to the World Bank Applications (with supporting documents) through the World Bank's Client Connection, web-based portal. The option to deliver Applications to the World 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 sign and deliver Applications and to receive secure identification credentials ("SIDC") from the World Bank 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 World Bank agrees, the World Bank 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 World Bank 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 SDIC 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 SIDC") provided in Attachment 3; and (b) to cause such official to abide by those terms and conditions. -3- Minimum Value ofApplications (subsection 3.5). The Minimum Value of Applications is USD$ 60,000 for reimbursement. (vi) Advances (sections 5 and 6). * Type of Designated Account/s] (subsection 5.3): Segregated * Currency ofDesignatedAccount[s] (subsection 5.4): US Dollars * Financial Institution at which the Designated Account Will Be Opened (subsection 5.5): Banco de la Republica * Ceiling (subsection 6.1): USD$130,000 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: o Statement of Expenditure in the form attached (Attachment 4),with records evidencing eligible expenditures (e.g., copies of receipts, supplier invoices) for payments against contracts valued at USD$30,000 or more; o Statement of Expenditure in the form attached (Attachment 4) for all other expenditures; and * For reporting eligible expenditures paid from the Designated Account: o Statement of Expenditure in the form attached (Attachment 4),with records evidencing eligible expenditures (e.g., copies of receipts, supplier invoices) for payments against contracts valued at USD$30,000 or more; o Statement of Expenditure in the form attached (Attachment 4) for all other expenditures; and o Designated Account activity statement accompanied by Designated Account Bank Statement. (ii) Frequency of Reporting Eligible Expenditures Paid from the Designated Account (subsection 6.3): quarterly or more often if needed. 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 https://www.worldbank.org and its secure website "Client Connection" at https://clientconnection.worldbank.org. Print copies are available upon request. -4- From the Client Connection 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. If you have not already done so, the World Bank recommends that you register as a user of the Client Connection website (https://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. 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 World Bank by email at . If you have any queries in relation to the above, please contact Vidya Narasimhan, Finance Officer at loa-t]@worldbank.org, using the above reference. Yours sincerely, ria M. Gra olini Directo Colombia a d Mexico Latin Ameri and the C bbean Region Attachments 1. World Bank Disbursement Guidelines fo rojects, dat d May 1, 2006 2. Form for Authorized Signatures 3. Terms and Conditions of Use ecure Identification Credentials in connection with Use of Electronic Means to Pr ss Applications and Supporting Documentation, dated March 1, 2013 4. Form of "Statem of Expenditure" Natalia Bavio, CTRLD Cleared with and cc: Jimena Garrote, Senior Counsel Joana Silva, Task Team Leader cc with copies: Ministerio de Trabajo Bogotki, Colombia