I OFFICIAL The World Bank 90Cg (202) 473-1000 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPM ,91A .M 2 433 Cable Address: INTBAFRAD INTERNATIONAL DEVELOPMENT ASSOCIATION U.S.A. Cable Address: INDEVAS July 18, 2013 Hon. Dean. 0. Barrow Prime Minister and Minister of Finance and Economic Development Ministry of Finance and Economic Development Belmopan City Belize Re: Belize: Advance Agreement for Preparation of Proposed Climate Resilient Infrastructure Project-Project Preparation Advance No. P4680-BZ Additional Instructions: Disbursement Letter Excellency: I refer to the Advance Agreement ("Agreement") between Belize ("Recipient") and the International Bank for Reconstruction and Development ("World Bank") for the preparation of the above-referenced Project, dated July 18, 2013. The Agreement provides that the World Bank may issue additional instructions regarding the withdrawal of the proceeds of the Project Preparation Advance P4680-BZ ("PPA"). 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 this Disbursement Letter. The manner in which the provisions in the Disbursement Guidelines apply to the PPA 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 PPA: * Reimbursement * Advance * Direct Payment (ii) Disbursement Deadline Date (subsection 3.7). The Disbursement Deadline Date is the Refinancing Date specified in Section 3.03 of the Annex to 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 Condition(s) in Section 3.02 of the Annex to the Agreement. II. Withdrawal of PPA 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 Unites States of America Attention: Mrs. Frangoise Clottes Country Director Caribbean Country Management Unit Latin America and Caribbean (ii) Applications (subsections 3.2 - 3.3). Please provide completed and signed Applications together with supporting documents to the address indicated below: The World Bank SCN, 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.ora). 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 SIDC 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 Secure Identification Credentials") provided in Attachment 3; and (b) to cause such official to abide by those terms and conditions. (v) Minimum Value of Applications (subsection 3.5). The Minimum Value of Applications for Direct Payment and Reimbursement is United States Dollars (USD) $60,000 equivalent. (vi) Advances (sections 5 and 6). * Type ofDesignated Account (subsection 5.3): Segregated. * Currency of Designated Account (subsection 5.4). USD. * Financial Institution at which the Designated Account Will Be Opened (subsection 5.5): Central Bank of Belize. * Ceiling (subsection 6.1): USD $300,000. III. Reporting on Use of PPA Proceeds (i) Supporting Documentation (section 4). Supporting documentation should be provided with each Application as set out below: * For requests for Reimbursement: 0 Records evidencing eligible expenditures (e.g., copies of receipts, supplier invoices) for payments for: (i) Consulting Firms against contract valued at USD $200,000 equivalent or more; (ii) Individual Consultants against contracts valued at USD $50,000 equivalent or more; and (iii) Goods against contracts valued at USD $200,000 equivalent or more, in the form attached (Attachment 4A - "Statements of Expenditures" With supporting documentation); o Statement of Expenditures in the form attached (Attachment 4B - "Statements of Expenditure" Without supporting documentation) for all other expenditures below the above mentioned thresholds, and for Non-Consulting Services, Training and Operating Cost; and o List of payments against contracts that are subject to the Bank's prior review, in the form attached (Attachment 5). * For reporting eligible expenditures paid from the Designated Account: " Records evidencing eligible expenditures (e.g., copies of receipts, supplier invoices) for payments for: (i) Consulting Firms against contract valued at USD $200,000 equivalent or more; (ii) Individual Consultants against contracts valued at USD $50,000 equivalent or more; and (iii) Goods against contracts valued at USD $200,000 equivalent or more, in the form attached (Attachment 4A - "Statements of Expenditures" With supporting documentation); o Statement of Expenditures in the form attached (Attachment 4B - "Statements of Expenditure" Without supporting documentation) for all other expenditures below the above mentioned thresholds, and for Non-Consulting Services, Training and Operating Cost; " List of payments against contracts that are subject to the Bank's prior review, in the form attached (Attachment 5); and " An activity reconciliation statement (Attachment 6) and bank statement for Designated Account should be submitted with each withdrawal application reporting on the use of financing proceeds. * For requests for Direct Payment: Records evidencing eligible expenditures, e.g., copies of receipts, supplier invoices. (ii) Frequency of Reporting Eligible Expenditures Paid from the Designated Account (subsection 6.3): Quarterly. IV. 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. 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 PPA, and retrieve related policy, financial, and procurement information. 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 us at loalcr@worldbank.org using the above PPA number and Project Name as a reference. Yours sincerely, By74F . Franqoise Clott s Director Caribbean Country Management Unit Latin America and the Caribbean Region Attachments 1. World Bank Disbursement G delines for Projects, dated May 1, 2006 2. Form for Authorized Signaitres 3. Terms and Conditions of se of Secure Identification Credentials 4 A. Statement of Expendit e with supporting documents (above SOE thresholds); and 4 B. Statement of Expen ture without supporting documents (below SOE thresholds) 5. Form of Payment Against Contracts Subject to the World Bank's Prior Review 6. Activity Recon iation Statement Cc with copies: Belize Social Investment Fund 1902 Constitution Drive City of Belmopan Belize, C.A. Daniel.Cano@sifbelize.org Prepared by: Victor Ordonez, CTRLN Cleared with and cc: Yoonhee Kim, TTL (LCSDU) Julie Rieger, LEGLE Maritza Rodriguez, LCSFM