OFFr,,IAJ- DOCUMENTS1 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 (Enhancing Public Management for Service Delivery in Rio de Janeiro Development Policy Loan - Programa de Melhoramento da Qualidade e Integraqdo dos Transportes de Massa Urbanos - PROMIT) to the State 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 State of Rio de Janeiro (the Borrower) a loan in an amount of five hundred million Dollars ($500,000,000), which loan is to be guaranteed by the Federative Republic of Brazil. The purpose of said loan is to assist the Borrower in its efforts to enhance public management for the delivery of key public services for vulnerable populations by instituting new policies and regulations to improve: (i) the medium term planning and monitoring of public expenditures; (ii) the accessibility, quality and affordability of urban mobility services for the poor; and (iii) the availability of targeted social services aimed at reducing domestic and gender based violence. 1. The Committee has carefully studied the merits of the proposal to grant such a loan, and of the purpose(s) to which the proceeds of the loan are to be applied. 2. The Committee is of the opinion that the Program 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 Program 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. Federative Republic of Brazil (Enhancing Public Management for Service Delivery in Rio de Janeiro Development Policy Loan - Programa de Melhoramento da Qualidade e Integraqdo dos Transportes de Massa Urbanos - PROMI) 3. Accordingly, the Committee finds that said Program merits financial assistance from the Bank, and hereby recommends said Program for such assistance. COMMITTEE Senior Vice President and Group General Counsel Expert Selected by mor for Federative Republic of Brazil 9c . -Y-1 Regional Vice President Latin America and the Caribbean Managing Director andUorABank Group Chiefina ial Officer Senior Vice President and Chief Economist Dated at Washington, D.C. IOb- 5/1