OFFICIAL (MW 3 -4 DOCUMUNT The World Bank 1818 H Stet N.W. (202) 473-1000 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVEIQFM , D.C. 20433 Cable Address: INTBAFRAD INTERNATIONAL DEI/ELOPMENT ASSOCIATION . Cable Address: INDEVAS November 27, 2012 Hernirt Lorenzino Ministro de Economia y Finanzas "'fiblhtcas Ministerio de Economia y Finanza; Pfiblicas Hip6lilo Yrigoyen 250 C1086 AAB, Buenos Aires, Argentina Re: Argentina: Preparatior of Proposed Sustainable Industrial Development Project Project Preparation Advance No. P4480-AR Additional Insi ructions: AMENDED Disbursement Letter Dear Minister: I refer to the Letter Agreenen: between the International Bank for Reconstruction and Development (the "Bank") and th( Repfiblica Argentina (the "Borrower") for the preparation of the above-referenced project, dated September 24, 2008. The Agreement provides that the Bank may issue additional instructions regarding the withdrawal of the proceeds of Project Preparation Advance P4480 ("the Advance"). This letter ("Disbursement Letter"), as revised from time to time, c3nstitutes the additional ins-ructions, and replaces the Original Disbursement Letter dated September 24, 2008 (and its amendments dated August 13, 2009 and February 8, 2011) to includc "Direct Payment" as Disbursement Method. 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 Advance is specified below. Sections and subsections in parentheses below refer to the relevant sections and subseclions in the Disbursement Guidelines and, unless otherwise defined in this letter, the capitalized terms used have the me inin Ds ascribed to them in the Disbursement Guidelines. I. Disbursement Arrangements (i) Disbursement Methods (section 2). The following Disbursement Methods may be used under the Advance: * 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 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 Advance Procoeds (i) Authorized Signatures (subsection 3.1). An authorized signatory letter in the Form attached (Attachment 2) should be fumish-d to the 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 Torre Boucl ard Bouchard 5/.7 C1 106ABG Buenos Aire s, Argentina Attention: Ilene ope J. Brook, Country Director, Argentina, Paraguay and Uruguay. (ii) Applications (subsections 3.2 - 3.3). Please provide completed and signed (a) applications for withdrawal, together with supp)rting documents, to the address indicated below: Banco Mundial Setor Comercial Norte, Quadra 02, Lote A Ed. Corpora:e Finance Center, 70 andar 70712-900 Brasilia, D.F. Brazil Attention: LDan Department (iii) Electronic Delivery (subsectign 3.4) The Bank may permit the Borrower to electronically deliver to the Bank Applications (with supporting documents) through the Bank's Client Connection, web-based portal. The option to deliver Applications to the Bank by electronic means may be effected if: (a) the Borrower has designated in writing, pursuant to the terms of subparagraph (i) of this Section, it; officials who are authorized to sign and deliver Applications and to receive secure identificat on devices ("Tokens") from the Bank for the purpose of delivering such Applications by electronic means; and (b) all such officials designated by the Borrower have registered as usei s of Client Connection. If the Bank agrees, the Bank will provide the Borrower with Token for the designated officials. Following which, the designated officials may deliver Applications electronically by completing Form 2380, which is accessible through Client Connection (htt)s://clientconnection.worldbank.or). The Borrower may continue to exercise the option o preparing and delivering Applications in paper form. The Bank reserves the right and may, :n its sole discretion, temporarily or permanently disallow the electronic delivery of Applications by the Borrower. (iv) Terms and Conditions of Use of Tokens to Process Applications. By designating officials to accept Tokens and by choosi ig 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 Devices in connection with Use of Electronic Means to Process Applications and Supporting Documentation ("Terms and Conditions of Use of Tokens") provided in Attachmen 3; and (b) to deliver the Terms and Conditions of Use of Tokens to each such official and tc 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 Payments is United States Dollars (US$) 20,000 equivalent. (vi) Advances (sections 5 and 6). * Type of Designated Ac -ount (subsection 5.3): Segregated * Currency of Designate I Account (subsection 5.4): United States Dollars (USD) * Financial Institution at which the Designated Account Will Be Opened (subsection 5.5): Banco de la Naci in Argentina * Ceiling (subsection 6.1): US$ 100,000 III. Reporting on Use of Advance Proceeds (i) Supporting Documentation (se7tion 4). Supporting documentation should be provided with each application for withdrawal as set out below: * For reporting eligible expenditures paid from the Designated Account " Statement of Expenditures - with supporting documentation evidencing eligible expenditures (e.g, copies of receipts, supplier invoices) in the form attached (Attachment 4A) "or payments for (i) Consulting Firms against contracts valued at USD 100,00( equivalent or more; (ii) Individual Consultants against contracts valued at U SD 50,000 equivalent or more; and (iii) Non-Consultant Services against c3ntracts valued at USD 100,000 equivalent or more; o Statement of Expenditures - without supporting documentation, in the form attached (Attachment 4B) for all other expenditures below the above mentioned thresholds, includ ng Operational Costs, Training and Goods. o List of payments against contracts that are subject to the Bank's prior review, in the form attached (Attachment 5) * For requests for diruct payment: o Records evidencing eligible expenditures, e.g., copies of receipts, suppliers invoices. (ii) Frequency of Reporting Eligible Expenditures Paid from the Designated Account (subsection 6.3): Monthly. (iii) Other Supporting Documentation Instructions. A Designated Account activity reconciliation statement and Bank Statement should be submitted with each withdrawal application reporting on the use of Advance proceeds from the Designated Account. V. Other Important Information For additional informati )n on disbursement arrangements, please refer to the Disbursement Handbook available on the 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. From the Client Connection, ycu will be able to download Applications, monitor the near real-tire status of the Advance, and retrieve related policy, financial, and procurement information. If you have not already do -e so, the Bank recommends that you register as a user of the Client Connection website (https:/Iclieritconnection.worldbank.org). 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, financia , and procurement information. All Borrower officials authorized to sign and deliver Applications by electronic means are required to register with Client Connection before electroric d.-livery can be effected. For more information about the website and registration arr, ngernents, please contact the Bank by email at . If you have any queries in i elation to the above, please contact Victor Ordonez Conde, Sr. Finance Officer at vconde@worldhank org using the above reference. Yours sincerely, Victor Ordofe Sr. F nance Officer, Loan Department The World Bank Attachments Note: All attachments, below, as p,-r the original disbursement letter remain valid. 1. World Bank Disbursement Guidelines for Projects, dated May 1, 2006 2. Form for Authorized Signatures 3. Terms and Conditions of Use cfSecure Identification Devices in connection with Use of Electronic Means to Process Applications and Supporting Documentation, dated January 202010 4A. "Statement of Expenditure - With supporting documents" - above SOE thresholds; and 4B. "Statement of Expenditure - Without supporting documents" - below SOE thresholds. 5. Form of Payments Against Contracts Subject to the Bank's Prior Review FOR OFFICIAL USE ONLY Original prepared by: Jose Janeiro, CTRLA Amented by: Maria Virginia tormazabal, CTRLN Cleared with and cc: Renan Pove ]a, TTL (LCSEN) Maria Pia, LEGLE Cc: Alejandro R. Solanot, LCSFM