JOHANNES C. M. ZUTT Country Director – Brazil Latin America and the Caribbean Region December 22,2023 His Excellency Mr. Fernando Haddad Minister of Economy c/o Procuradoria Geral da Fazenda Nacional – PGFN Esplanada dos Ministérios, Bloco P, 5º andar 70048-900, Brasília, DF Brazil gabinete.ministro@economia.gov.br; apoiocof.df.pgfn@pgfn.gov.br Re: Program Loan No. 8812-BR and Project Loan No. 8813-BR (Support to the Upper Secondary Education Reform Operation) Projeto de Apoio à Implementação do Novo Ensino Médio Additional Instructions: Second Restatement of the Disbursement and Financial Information Letter Excellency: I refer to the Loan Agreement between the Federative Republic of Brazil (the “Borrower”) and the International Bank for Reconstruction and Development (the “World Bank”) for the above- referenced Operation. 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 World 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 Program and Project specific financial reporting requirements. This letter constitutes such Disbursement and Financial Information Letter (“DFIL”), and may be revised from time to time. This is the second restatement of the Disbursement and Financial Information Letter dated May 24, 2018 for the above-referenced project. This letter revises the Authorized Signatures and Withdrawal and Documentation Applications sections in Schedules 1 and 2 to indicate electronically delivery through Client Connection as default modality and restates the Disbursement-linked Indicators Table in Attachment 1 in view of the Second Amendment Loan Agreement. All other provisions and attachments of the Disbursement and Financial Information Letter dated May 24, 2018, except as amended, shall remain in force and effect. I. Disbursement Arrangements A. Program Loan (PforR activities under Part 1 of the Project) (i) Schedule 1. The table in Schedule 1 sets out the disbursement methods which may be used by the Borrower for the Program Loan, information on registration of authorized signatures, processing of withdrawal applications (including processing of advances), instructions on documentation, and reporting of advances. (ii) Withdrawal Applications. Applications for withdrawal from the Program Loan Account (“Withdrawal Applications”) of amounts of the Loan allocated to individual Disbursement Linked Results (“DLR”) may, pursuant to the provisions of Section IV.A.1 of Schedule 2 to the Loan Agreement, be sent to the World Bank at any time after the World Bank has notified the Borrower in writing that it has accepted evidence of achievement of the specific DLR. (iii) Withdrawal Amount. The Withdrawal Application may be for an amount not to exceed the amount of the Program Loan confirmed by the World Bank for the specific corresponding DLR, pursuant to provisions of Section IV.2.A.1 of the Schedule 2 to the Loan Agreement and as specified in the Disbursement-linked Indicators Table (Attachment 1) in respect of which the withdrawal is requested, as specified in the World Bank’s notice to the Borrower. (iv) Prior Results. The World Bank confirms that it has received evidence satisfactory to it that the DLIs referred to in categories 1 and 7 of the Table in the Loan Agreement have been achieved. Consequently, the Borrower may withdraw the amount of the Loan allocated to said categories in the amount of USD 30,000,000 after the Loan Agreement has been declared effective. (v) Advances and Recovery of Advances. The Borrower may, in accordance with provisions of the Loan Agreement, request advances of amounts of the Program Loan allocated to DLRs that have not yet been achieved using the Form attached (Attachment 2). The aggregated amount of all such advances made in respect of amounts allocated to DLRs may not exceed the equivalent of USD 55,250,000. The World Bank records an amount of the advance as disbursed for an achieved DLR (“recovered”) after it has notified the Borrower of its acceptance of the evidence of achievement of the DLR for which the advance was provided. The amount so reclassified becomes available for further advances in accordance with the preceding paragraph. B. Project Loan (Technical Assistance activities under Part 2 of the Project) (i) Schedule 2. The table in Schedule 2 sets out the disbursement methods which may be used by the Borrower for the Project Loan, information on registration of authorized signatures, processing of withdrawal applications (including processing of advances), instructions on documentation, and reporting of advances. (ii) Minimum Value of Applications (subsection 3.5). The Minimum Value of Applications for reimbursement is USD 500,000 equivalent. (iii) Advances (sections 5 and 6). o Type of Designated Account (subsection 5.3): Segregated o Currency of Designated Account (subsection 5.4): US Dollar o Financial Institution at which the Designated Account will be Opened (subsection 5.5): Banco do Brasil o Ceiling (subsection 6.1): USD 3,000,000 (iv) Supporting Documentation (section 4). Supporting documentation should be provided with each application for withdrawal as set out below:  For requests for Reimbursement and for reporting eligible expenditures paid from the Designated Account: o Statement of Expenditures in the form attached (Attachment 4) Reconciliation Sheet in the form attached with a copy of Designated Account bank statement (Attachment 5) applicable only when reporting eligible expenditures paid from the Designated Account.  Frequency of Reporting Eligible Expenditures Paid from the Designated Account (subsection 6.3): Quarterly. II. Financial Reports and Audits. Section 5.09 of the General Conditions. (i) Financial Reports. The Borrower must prepare and furnish to the Bank not later than sixty (60) days after the end of each calendar semester, interim unaudited financial reports (“IFR”) for the Project covering the semester. (ii) Audits. Each audit of the Financial Statements must cover the period of one fiscal year of the Borrower, commencing with the fiscal year in which the first withdrawal was made. The audited Financial Statements for each such period must be furnished to the Bank not later than nine (9) months after the end of such period. III. Other Important Information For additional information on disbursement arrangements, please refer to the Loan Handbook available on the World Bank’s website (http://www.worldbank.org/) and “Client Connection”. The World Bank recommends that you register as a user of “Client Connection”. From this 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. Yours sincerely, ____________________________________ Johannes C. M. Zutt Attachments 1. Disbursement-Linked Indicators Table 2. Sample Form for Advances 3. Form of Authorized Signatory Letter 4. Statement of Expenditures 5. Designated Account reconciliation Statement With copies: Mr. Camilo Santana Minister of Education Ministry of Education Esplanada dos Ministérios, Bloco L - 8º Andar gabinetedoministro@mec.gov.br Schedule 1: Disbursement Provisions for the Program Loan (PforR) Basic Information Country BRAZIL Section IV. D of Schedule 2 to Closing Date Borrower Federative Republic of Brazil the Loan Agreement Program Support to the Upper Secondary Education Loan IBRD 8812-BR Name of the Reform Operation Disbursement Six (6) months after the Closing Number Program Projeto de Apoio à Implementação do Novo Deadline Date Date. Ensino Médio Disbursement Methods and Supporting Documentation Disbursement Methods Methods Supporting Documentation Reimbursement (financing of Yes Confirmation issued by the World Bank achieved results) Advance Yes Request in the format provided in Attachment 2 of the DFIL Advances Ceiling Fixed Financial Institution - Name Banco do Brasil Currency USD Amount 55,250,000 Authorized Signatures The form for Authorized Signatories Letter is provided in Attachment 3 of this letter Withdrawal and Documentation Applications The Authorized Signatures Letter and all Withdrawal Applications with their supporting documentation will be submitted electronically via the World Bank’s “Client Connection” system. Additional Instructions Please refer to Section I.A above Other NA Schedule 2: Disbursement Provisions for the Project Loan Basic Information Country BRAZIL Section IV. D of Schedule 3 to Closing Date Borrower Federative Republic of Brazil the Loan Agreement Project Support to the Upper Secondary Loan IBRD 8813-BR Name of the Education Reform Operation/Projeto de Disbursement Four (4) months after the Closing Number Program Apoio à Implementação do Novo Deadline Date Date. Ensino Médio Disbursement Methods and Supporting Documentation Supporting Documentation Disbursement Methods Methods Reimbursement Yes Statement of Expenditures (Attachment 4) Advance Yes Statement of Expenditures (Attachment 4) and Designated Account Reconciliation (Attachment 5) with a copy of Designated Account bank statement Advances Ceiling Fixed Financial Institution - Name Banco do Brasil Currency USD Amount 3,000,000 Authorized Signatures The form for Authorized Signatories Letter is provided in Attachment 3 of this letter Withdrawal and Documentation Applications The Authorized Signatures Letter and all Withdrawal Applications with their supporting documentation will be submitted electronically via the World Bank’s “Client Connection” system. Additional Instructions Please refer to Section B above Other NA Attachment 1 Disbursement-linked Indicators Table DLIs eligible for partial achievement are marked ‘Scalable’ DLR 11 DLR 2 DLR 3 DLR 4 DLR 5 DLR 6 (2018) (2019) (2020) (2021) (2022) (2023-2024) DLI 1: The MEC NEM Portaria Published regulating the support to the Prior Upper Secondary Education results2 Reform has been published by US$15 M MEC DLI 2: Number of States3 that 204 25 formally signed a NEM Portaria Scalable Scalable Commitment Agreement US$10 M US$2.5 M DLI 3: Intentionally left blank - - - - - - DLI 4: Number of States that 10 15 25 have their curricula adapted to Scalable Scalable Scalable NEM, validated and published US$10 M US$5 M US$10 M by each State DLI 5: Intentionally left blank - - - - - - DLI 6: Number of States with 10 20 schools in NEM Implementation Scalable Scalable Pilots US$10 M US$10 M DLI 7: Number of States that 25 have their revised FTS Prior results Implementation Plans approved Scalable by MEC US$15 M A Pre- DLI 8: Evaluations and evaluation is adjustment of the FTS Program Satisfactoril have been carried out y completed US$10 M DLI 9: Percentage of agreed FTS 45% 60% 75% key process targets achieved by Scalable Scalable Scalable States as included in their FTS US$5 M US$15 M US$10 M Implementation Plans DLI 10: Intentionally left blank - - - - - - 1 Disbursement-linked Result (DLR) is the yearly target of a DLI. 2 ‘Prior results’ indicates DLRs that may be achieved prior to the loan signing date but after July 13, 2017. 3 Here henceforth, “States” refers to the 26 states of Brazil and the Federal District. 4 Baseline for indicators is zero unless specified otherwise. For DLI 1, the baseline is “No” and for DLI 8, the baseline is “No FTS review is in place.” 25 states have 25 states have received received books and books and teaching teaching materials for materials by DLI 11: Number of States that Project of Life areas of have received books and didactic (Projeto de knowledge materials in compliance with Vida) works (Portuguese, NEM Legal Framework. and Mathematics, Integration Natural Projects Sciences, (Projetos Social Integradores). Sciences). US$12.5 M US$12.5M Creation and DLI 12: Publication of Publication of assessment matrixes of new the Working ENEM in accordance with the Group NEM Legal Framework. US$12.5M Implementatio Dissemination n of: (i) health of strategies for MEC provide protocols for the recovery of States with the safe lost learning technical and reopening of and for DLI 13: Measures implemented financial schools, (ii) bringing by MEC to respond to COVID support to panel to students back 19 crisis improve monitor the to school. school context and US$5 M connectivity progress of US$5 M each state US$10 M Delivery of the DLI 14: MEC public final report of consultation with students, the national teachers and school managers public about the NEM implementation consultation to process published 27 states. US$7.5 M Legislation that institutionalize the restructuring of DLI 15: Restructuring of the the revision of Upper Secondary Education the Upper Legal Framework published Secondary Education Reform published US$10 M (i) 20 states with media centers installed with equipment DLI 16: Strengthening schools´ needed to connectivity through the deliver hybrid provision of necessary education (ii) equipment for hybrid education 1,000 to promote learning recovery vulnerable strategies schools with school kits needed to deliver hybrid education US$17.9475 Estimated disbursement US$55 M US$37.5 M US$25 M US$45 M US$17.5 M US$ 40.4475 Attachment 2 Sample Form for Advances [Ministry of Education Letterhead] [Date] Loan Department – [name of Regional Center] The World Bank [address of regional center] Attention: [name of regional center team lead] Subject: Program Loan No. 8812-BR and Project Loan No. 8813-BR (Support to the Upper Secondary Education Reform Operation Projeto de Apoio à Implementação do Novo Ensino Médio Request for Advance Dear Sir/Madam, We refer to the Loan Agreement between the International Bank for Reconstruction and Development (the “World Bank”) and the Federative Republic of Brazil (the “Borrower”) dated [insert date] providing for the above Loan. In accordance with the provisions of the Disbursement Letter and Schedule ___, Section __________ of the Loan Agreement, to support the implementation of the above Program and to facilitate the achievement of the planned results, we request an Advance in the amount of [insert amount] 1. [We request that the Advance be disbursed in [currency requested for disbursement] equivalent to the Total Advance Requested above.]2 We acknowledge that the amount disbursed will be charged to the Loan Account in the currency of the Financing at the rate of exchange in effect at the time of disbursement. Sincerely, [insert Name, and Position]3 Attachment 3 1 The Proposed Advance should be in the currency of the DLI/DLR as set out in the disbursement table in the Loan Agreement, and in accordance with provisions in the Disbursement and Financial Information Letter. Normally, this is the currency of commitment of the loan. 2 Use this text to designate the currency of the Advance if it should be different from the currency set out in the disbursement table in the Loan Agreement. 3 To be signed by a representative of the implementing/coordinating agency of the Borrower, OR by the person(s) authorized on behalf of the Borrower to sign applications for withdrawal under the loan as set out in the applicable Authorized Signatory Letter. Form of Authorized Signatory Letter [Letterhead] Ministry of Finance/ Ministry of Education [Street address] [DATE] The World Bank 1818 H Street, N.W. Washington, D.C. 20433 United States of America Attention: [Country Director] Re: Program Loan No. 8812-BR and Project Loan No. 8813-BR (Support to the Upper Secondary Education Reform Operation/Projeto de Apoio à Implementação do Novo Ensino Médio) I refer to the Loan Agreement between the International Bank for Reconstruction and Development (the “World Bank”) and the Federative Republic of Brazil (the “Borrower”), dated _______, providing the above Loan. For the purposes of Section 2.02 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 Terms and Conditions of Use of Secure Identification Credentials in connection with Use of 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. 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]1 11 Borrower’s representative as per Loan Agreement, Article 2.02 Attachment 4 – Statement of Expenditures BANCO INTERNACIONAL PARA RECONSTRUÇÃO E DESENVOLVIMENTO Declaração de Gastos NO. EMPRÉSTIMO/DOAÇÃO: PAGAMENTOS REALIZADOS NO PERÍODO DE: A NO. PEDIDO: NO. CATEGORIA: Os pagamentos apresentados foram efetuados durante o período retroativo? (SIM ou NÃO): NO. PÁGINA: As despesas apresentadas foram incorridas até a data de encerramento do Acordo Legal? (SIM ou NÃO): SOMENTE CONTA DESIGNADA 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Valor Contrato Referência Moeda Valor Total Valor Número Valor Total % Valor Taxa Data de Debitado Item No. Nome do fornecedor/firma/ Breve descrição Código da Sujeito à do do do acumulado da Data do do Financiado Financiado de Débito da da Conta consultor/beneficiário da despesa despesa revisão prévia contrato contrato Contrato do contrato Fatura/NF/ Pagamento pagamento pelo BIRD pelo BIRD Câmbio Conta Designada (SIM ou NÃO) (incluído em Recibo incluído nesse (Col 12 X 13) Designada (Col 14 ÷ 15) SOEs anteriores) SOE 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 Documentos de Suporte para este SOE encontram-se arquivados na ___________________________________________(Informar o nome da Unidade de Implementação do Projeto) e mediante solicitação prévia serão disponibilizados para análise das missões do BIRD ou auditores designados para este fim. Instruções: Preparar uma Declaração de Gastos por categoria Coluna 1: Informar o número do item em sequência numérica. Coluna 2: Informar o nome do fornecedor/firma/consultor/beneficiário. Coluna 3: Fornecer uma breve descrição da despesa (exemplo: honorários dez/2015, consultoria, diárias, serviços de auditoria, etc). Coluna 4: Identificar qual tipo de despesa foi realizada (exemplo: CS: consultoria / CW: obras / GO: bens / OP: gastos operativos / TR: treinamento / NCS: serviços de não-consultoria / SP: Subprojetos) Coluna 5 Informar se o contrato foi submetido ou não à revisão prévia do Banco Mundial. Coluna 6: Informar o número de referência do contrato Coluna 7: Informar a moeda do contrato Coluna 8: Informar o valor do contrato (na moeda que foi indicada na coluna 6) Coluna 9: Informar o valor do contrato que já foi pago/incluído em SOEs anteriores. Coluna 10: Informar o número da fatura/nota fiscal/recibo do fornecedor/firma/consultor/beneficiário. Coluna 11: Informar a data do pagamento ao fornecedor/firma/consultor/beneficiário. Coluna 12: Informar o valor pago ao fornecedor/firma/consultor/beneficiário na moeda da fatura/recibo. Coluna 13: Indicar o percentual de financiamento (de acordo ao estipulado no Acordo Legal) Coluna 14: Cálculo do valor admissível para financiamento (resultado da multiplicação da coluna 12 por 13). Para os casos em que o percentual de financiamento seja 100%, os valores dessa coluna serão os mesmos apresentados na coluna 12. Coluna 15: Indicar a taxa de câmbio. IMPORTANTE: a fim de evitar diferenças cambiais, recomendamos utilizar a taxa de câmbio do dia da internalização dos recursos (ou seja, do dia da transferência de recursos da conta designada (em dólares) para a conta operativa (em moeda local). Lembramos que o Banco Mundial não reconhece diferenças cambiais como despesas elegíveis de financiamento. Coluna 16: Data na qual o projeto transferiu recursos da conta designada (em dólares) para a conta operativa (em moeda local). Coluna 17: Cálculo da coluna 14 ÷ coluna 15. Essa coluna reflete o valor equivalente em dólares do pagamento efetuado. Attachment 5 – Designated Account Reconciliation Conciliação da Conta Designada Empréstimo / Doação Nº: Nome do Banco Número da Conta: 1. Total de Depósitos - 2. Menos Total que já foi documentado - 3. Saldo Pendente (por documentar) - 4. Saldo da Conta Designada em / / (de acordo com o extrato bancário anexo) - 5. Valor a ser documentado no presente Pedido nº ____ - 1 6. Mais valor pendente de reposição pelo Banco - 2 7. Mais saques efetuados ainda não documentados ao Banco - 8. Menos valores debitados depois do extrato bancário anexo - 9. Menos rendimentos gerados na Conta Designada - 10. Total (4 + 5 + 6 + 7+ 8 - 9) - 11. Discrepâncias entre (3 e 10)3 - Observações: 1 Valores pendentes de reposição pelo Banco Pedido Nº Valor - - 2 Saques efetuados ainda não documentados ao Banco Data Descrição Valor 3 Outras explicações por discrepância identificada na linha 11 Obs.: a moeda da conciliação deve ser a mesma moeda da Conta Designada 1. Preencher com a soma de todos os valores que foram adiantados pelo Banco para a Conta Designada * 2. Preencher com a soma de todos os valores que já foram documentados ao Banco (em pedidos anteriores) * 3. Linha 1 menos linha 2* 4. Preencher com o valor que consta como saldo no extrato bancário que está anexo a esta conciliação 5. Preencher com o valor total que será documentado no presente Pedido 6. Preencher apenas para o caso de existir reposições que já foram solicitadas ao Banco, mas cujos valores ainda não estão refletidos no extrato bancário enviado em anexo. 7. Preencher com os valores que já foram sacados da conta para realizar pagamentos, mas que ainda não foram documentados ao Banco e/ou se encontram na Conta Operativa (detalhar valores nas observações) 8. Preencher somente se existir valores que foram sacados da Conta Designada depois da data do extrato bancário que está em anexo. 9. Preencher somente no caso de existir rendimentos que foram gerados na Conta Designada. * Disponível para consulta no Client Connection (Desembolsos -> Contas Designadas/UN)