Bouchard 547, 29th floor Tel.: (54-11) 4316-9700 / 44 C1106ABG Fax: (54-11) 4313-1233 Ciudad Autónoma de Buenos Aires Argentina 28-Feb-2023 Date: ______________ His Excellency Oscar Llamosas Díaz Minister of Finance Ministry of Finance Sede Central, Chile 128 Asunción, Paraguay Re: IBRD Loan 9451-PY (Asuncion Riverfront Urban Resilience Project) Additional Instructions: Disbursement and Financial Information Letter Dear Minister: I refer to the Loan Agreement between the Republic of Paraguay (the “Borrower”) and the International Bank for Reconstruction and Development (the “Bank”) for the above-referenced Project. 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 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 Project specific financial reporting requirements. This letter constitutes such Disbursement and Financial Information Letter (“DFIL”), and may be revised from time to time. I. Disbursement Arrangements, Withdrawal and Reporting of Uses of Loan Funds The Disbursement Guidelines for Investment Project Financing, dated February 2017, (“Disbursement Guidelines”) are available in the Bank’s public website at https://www.worldbank.org and its secure website “Client Connection” at https://clientconnection.worldbank.org. The Disbursement Guidelines are an integral part of the DFIL, and the manner in which the provisions in the Disbursement Guidelines apply to the Loan is specified below. (i) Disbursement Arrangements The table in Schedule 1 sets out the disbursement methods which may be used by the Borrower, information on registration of authorized signatures, processing of withdrawal applications (including minimum value of applications and processing of advances), instructions on supporting documentation, and frequency of reporting on the Designated Accounts. (ii) Electronic Delivery (Section 10.01 (c) of the General Conditions) The Borrower will deliver Withdrawal Applications (with supporting documents) electronically through the Bank’s web-based portal “Client Connection” at https://clientconnection.worldbank.org. This option will be effected after the officials designated in writing by the Borrower who are authorized to sign and deliver Withdrawal Applications have registered as users of “Client Connection”. The designated officials will deliver Applications electronically by completing the Form 2380, which is accessible through “Client Connection”. By signing the Authorized Signatory Letter, the Borrower confirms that it is authorizing such persons to accept Secure Identification Credentials (SIDC) and to deliver the Applications and supporting documents to the Bank by electronic means. The Borrower may exercise the option of preparing and delivering Withdrawal Applications in paper form on exceptional cases (including those where the Borrower encounters legal limitations), and which were previously agreed with the Bank. By designating officials to use SIDC and by choosing to deliver the Applications electronically, the Borrower 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, available in the World Bank's public website at https://worldbank.org and “Client Connection”; and (b) to cause such official to abide by those terms and conditions. II. Financial Reports and Audits. (Section 5.09 of the General Conditions) (i) Financial Reports. The Borrower, through Ministerio de Obras Públicas y Comunicaciones (MOPC), must prepare and furnish to the Bank not later than forty-five (45) 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 Project’s Financial Statements must cover the period of one fiscal year of the Borrower. The audited Project Financial Statements for each such period must be furnished to the Bank not later than six (6) months after the end of such period or any other period agreed upon with the Bank. The Borrower, through MOPC, shall submit the concurrent grant audit reports to the Bank on a semesterly basis (within 45 days after the end of each semester), flagging any potential issues. III. Other Information For additional information on disbursement arrangements, please refer to the Loan Handbook available on the Bank’s website (http://www.worldbank.org/) and “Client Connection”. The 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. Sincerely, _______________________________ Marianne Fay Director Argentina, Paraguay and Uruguay Latin America and the Caribbean Region Attachments 1. Form of Authorized Signatory Letter 2. Statement of Expenditure (SOE) 3. Customized Statement for Resettlement Expenditures (Category 2) 4. Designated Account Activity Statement Schedule 1: Disbursement Provisions Basic Information Country Paraguay Section III.B.2 of Schedule 2 to Closing Date Borrower The Republic of Paraguay the Loan Agreement. Loan 9451-PY Number Disbursement Asuncion Riverfront Urban Deadline Date Four months after the closing Name of the Project Resilience Project date. Subsection 3.7 ** Disbursement Methods and Supporting Documentation Disbursement Methods Methods Supporting Documentation Section 2 (**) Subsections 4.3 and 4.4 (**) Direct Payment Yes Copy of records  Statement of Expenditure (SOE), in the format provided in Attachment 2 of the DFIL, for expenditures financed under Category 1; and Reimbursement Yes  Customized Statement for Resettlement Expenditures financed under Category 2, in the format provided in Attachment 3 of the DFIL.  Statement of Expenditure (SOE), in the format provided in Attachment 2 of the DFIL, for expenditures financed under Category 1; Advance  Customized Statement for Resettlement Expenditures financed under Category 2, in the format Yes (Designated Accounts) provided in Attachment 3 of the DFIL; and  Designated Account Activity Statement, in the format provided in the Attachment 4, with a copy of the Designated Account Bank Statement. Special Commitments No Not applicable Designated Accounts (Sections 5 and 6 **) Designated Account Type Segregated Ceiling Fixed Financial Institution - Central Bank of Paraguay (BCP) Currency USD Name Frequency of Reporting Semiannually Amount $15,000,000 Subsection 6.3 (**) Minimum Value of Applications (subsection 3.5 **) The minimum value of applications for Reimbursement and Direct Payment is US$ 1,000,000 equivalent. Authorized Signatures (Subsection 3.1 and 3.2 **) Withdrawal and Documentation Applications (Subsection 3.3 and 3.4 **) Authorized Signatures: The form for Authorized Signature Letter is provided in Attachment 1. The ASL should be submitted electronically through the Bank’s Client Connection system providing the name(s) and specimen signature(s) of the official(s) authorized to sign Applications. For manually submission, the ASL should be furnished to the Bank at the address indicated below: The World Bank 1818 H Street, N.W. Washington, DC 20433, USA Attention: Jordan Z. Schwartz, Country Director Applications: Completed Applications for withdrawal, together with supporting documents, should be provided through the Bank’s Client Connection, web- based portal, following the instructions for electronic delivery. In the case the Borrower does not have internet access, the Bank may permit the delivery of Applications for withdrawal, together with supporting documents, to the following address: Banco Mundial SCES Trecho 3, Lote 05, S/N, Asa Sul 70200-003, Brasília, D.F. – Brazil Attention: Loan Operations Additional Instructions ** Sections and subsections relate to the “Disbursement Guidelines for Investment Project Financing”, dated February 2017. Attachment 1 [Letterhead] Ministry of Finance [Street address] [DATE] The World Bank 1818 H Street, N.W. Washington, D.C. 20433 United States of America Attention: [Country Director] Re: IBRD Loan ____-___ [name of [Program] [Operation] ] I refer to the Loan Agreement between the International Bank for Reconstruction and Development (the “World Bank”) and [name of borrower] (the “Borrower”), dated _______, providing the above Loan. For the purposes of Section 2.03 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. 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 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. 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. 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] Attachment 2 BANCO INTERNACIONAL DE RECONSTRUCCIÓN Y FOMENTO Certficado de Gastos PRESTAMO/CREDITO/DONACION NO.: PAGOS REALIZANDO DURNATE EL PERÍODO DE: AL NO. SOLICITUD: NO. HOJA: LOS PAGOS LISTADOS FUERON INCURRIDOS DURANTE EL PERIODO RETROACTIVO (SI o NO): NO. CATEGORIA: LOS PAGOS LISTADOS FUERON INCURRIDOS ANTES DE LA FECHA DE CIERRE (SI o NO): HOJA NO.: CUENTA DESIGNADA SOLAMENTE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 Cantidad Contrato Registro Moneda Monto Total Monto Número Monto % Monto Tasa Fecha Debitada Nombre del Breve descripción Código del Sujeto a del del del acumulado de la Fecha del Pagado al Financ. Admisible de Débito Cuenta Proveedor del gasto gasto revisión previa contrato contrato Contrato del contrato Factura Pago Proveedor por BIRF (Col 11 X 12) Cambio Cuenta Designada (SI o NO) en C.C. (incluido en o Recibo Designada (Col 13 / 14) SOEs anteriores) 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 DOCUMENTACIÓN DE RESPALDO PARA ESTE CERTIFICADO DE GASTOS ESTÁ EN: (indique el local) Instrucciones: Preparar un Certificado de Gastos para cada Categoría Columna 1: Informe el nombre del proveedor Columna 2: Hacer una breve descripción del gasto (ejemplo: honorarios dic/2012, consultoría, servicio de limpieza, viáticos, servicios de auditoría, etc). Columna 3: Identificar cual tipo de gasto fue hecho (ejemplo: CS: consultoría / CW: obras / GO: bienes / OP: costos operativos / TR: entrenamiento / NCS: servicios de no consultoría / SP: Subproyectos) Columna 4: Informar si el contrato fue o no sometido a revisión previa del Banco Mundial. Columna 5: Informar número de registro del contrato en Client Connection Columna 6: Informar moneda del contrato Columna 7: Informar valor del contrato (en la moneda que fue indicada en la columna 6) Columna 8: Informar valor del contrato que ya fue pagado, incluido en SOEs anteriores. Columna 9: Informar el número de la factura o recibo del proveedor Columna 10: Informar fecha del pago al proveedor Columna 11: Informar valor pagado al proveedor, en la moneda indicada en la factura. Columna 12: Indicar el porcentual de financiamiento (de acuerdo al convenio de préstamo/donación) Columna 13: Calculo del monto admisible para financiamiento (resultado de la multiplicación de la columna 11 por la 12). Para los casos en que el porcentual de financiamiento es de 100%, los valores de esa columna serán los mimos presentados en la columna 11. Columna 14: Indicar la tasa de cambio. Favor tener en cuenta que la tasa de cambio a ser utilizada debe ser la tasa de internalización de los fondos. Es decir que, el proyecto debe utilizar la misma tasa que fue utilizada para transformar los dólares que el Banco envió al proyecto en moneda local. Ese punto es muy importante, ya el Banco no reconoce diferencias de cambio como gasto elegible de financiamiento. Columna 15: Fecha que en la cual el proyecto retiró los fondos de la cuenta designada (en dólares) y los envió a la cuenta operativa (en moneda local). Columna 16: Cálculo de la columna 13 / columna 14. Esa columna refleja en monto equivalente en dólares del gasto realizado, que será considerado por el Banco para documentación. Attachment 3 BANCO INTERNACIONAL DE RECONSTRUCCION Y FOMENTO Certificado de Gastos para Categoria 2 (sin documentos justificativos) PRESTAMO N o PAGOS REALIZADOS EN EL PERÍODO DE: AL FECHA: No SOLICITUD o LOS PAGOS LISTADOS FUERON INCURRIDOS ANTES DE LA FECHA DE CIERRE (SI/NO) N HOJA: CUENTA DESIGNADA SOLAMENTE 1 2 3 4 5 6 7 8 9 10 11 12 13 14 o o Fecha de Cantidad debitada N de Tipo de N del Contrato % Monto Breve descripcón del Cantidad de Fecha de Monto de la Tasa de débito de la de la Cuenta Beneficiario/s de la compensación Subcom- compen- entre el beneficiario Moneda Financ.por Admisible gasto beneficiarios pago compensación Cambio Cuenta Designada ponente sación y el Gobierno BIRF (Col.9 X Col.10) Designada (Col.11/Co.12) 0.00 0.00 Instrucciones para completar el SOE de la Categoría: Columna 1: Informe el nombre del beneficiario de la compensación Columna 2: Hacer una breve descripción del gasto Columna 3: Informe el número del Subcomponente del Proyecto al que corresponde la compensación Columna 4: Informe el Tipo de Compensación (Gastos de adquisición de tierras, compensación en efectivo, unidades de vivienda u otro que corresponda) Columna 5: Indicar el número del contrato entre el beneficiario y el Gobierno Columna 6: Indique la cantidad de beneficiarios relacionados a la compensación informada Columna 7: Informe la fecha de pago de la compensación Columna 8: Informe la moneda de la compensación Columna 9: Informe el monto de la compensación en la moneda de pago Columna 10: Indicar el porcentaje de financiamiento (de acuerdo al contrato de préstamo) Columna 11: Cálculo del monto admisible para financiamiento (resultado de multiplicar la Col. 9 por la Col.10) Columna 12: Indicar la tasa de cambio.Por favor, tener en cuenta que la tasa que deberser utilizada es la de internalización de los fondos en US$ desde la cuenta designada a la cuenta en moneda local. Considerar que el BIRF no reconoce diferencias de cambio como gasto elegible de financiamiento. Columna 13: Fecha en la cual el Proyecto retiro los fondos de la cuenta designada (en US$) y los envío a la cuenta en moneda local. Columna 14: Esta columna refleja el monto equivalente en US$ del gasto realizado, que será considerado por BIRF para documentación. Cálculo de la Col.11 dividida la Col.12. Attachment 4 CONCILIACION DE LA CUENTA DESIGNADA PRESTAMO/CREDITO/DONACIÓN No: NOMBRE DEL BANCO: NÚMERO DE CUENTA: USD 1. Total de Depósitos 2. Menos Total Documentado 3. Saldo por Recuperar 0.00 4. Saldo al / / de Acuerdo al Estado Bancario Adjunto 0.00 5. Monto de la Solicitud No.___ 0.00 6. Más monto pendiente de Reembolso por el Banco 1/ 0.00 7. Más retiros efectuados aún no solicitados al Banco 2/ 0.00 8. Menos montos debitados después de la fecha del Estado Adjunto 0.00 9. Menos intereses generados por la Cuenta Designada 10. Total (4 + 5 + 6 + 7+ 8 - 9) 0.00 11. Discrepancias entre (3 y 9) 0.00 OBSERVACIONES: 1/ Valor pendiente de reembolso por el Banco No. de Solicitud Monto 2/ Retiros efectuados aun no solicitados al Banco Fecha Descripción Monto Aqui se incluira una explicación del del Punto 8), o sea en que fue gastado el dinero que aún no fue solicitado al Banco. Esto es exigido cuando este importe supera el 15% del depósito en la Cuenta Designada. 0.00 1. Suma de todos los importes adelantados por el Banco a la Cuenta Designada 2. Suma de todos los importes documentados 3. Linea 1 menos Linea 2 4. Saldo igual al estado de cuenta bancário presentado. (Converter para dólares) 5. Informar el importe total a ser documentado en la solicitud que se está presentando 6. Solo en el caso de tener importes pendientes de pagar por el banco de Solicitudes anteriores. 7. Este importe es la parte que fue retirada de la Cuenta Designada y no corresponde a gastos que se están incluyendo en el próximo SOE. Refiere a nuevos gastos que aún no han sido incluidos en SOE 8. Aqui solo iria algo si hubieran retirado un nuevo importe de la Cuanta Designada, posterior a la fecha del estado de cuenta bancário que está siendo presentado