OFFICIAL DOCUMENTS The World Bank 1818 H Street N. (202) 473-1000 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMEN ..e!1 0433 Cable Address: INTBAFRAD INTERNATIONAL DEVELOPMENT ASSOCIATION U.S.A. Cable Address: INDEVAS April 30, 2014 Mr. Jaime Daza Almendrales Secretario General Colombian Cattle Ranching Association (FEDEGAN) Calle 37 No. 1431 Bogota, DC Repfiblica de Colombia Re: Colombia GEF Grant Agreement TF096465 (Mainstreaming Sustainable Cattle Ranching Project) Additional Instructions: Disbursement Letter Amendment to the Disbursement Letter dated March 11, 2011. Dear Mr. Daza: I refer to the Grant Agreement ("Agreement") between the International Bank for Reconstruction and Development ("World Bank"), acting as an implementing agency of the Global Environmental Facility, and the Colombian Cattle Ranching Association ("the Recipient") for the above-referenced project, dated April 6, 2010. The Agreement provides that the World Bank may issue additional instructions regarding the withdrawal of the proceeds of GEF Grant No. TF096465 ("Grant"). This letter ("Disbursement Letter"), as revised from time to time, constitutes the additional instructions, and replaces the letter dated March 11, 2011 (and all previous versions) to increase the ceiling of the Designated Account from United States Dollars (USD) $700,000 to USD $1,300,000; and to incorporate the Reimbursement 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 Grant 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 Loan: Direct Payment, Advance, and Reimbursement. (ii) Disbursement Deadline Date (subsection 3.7). The Disbursement Deadline Date is four months after the Closing Date specified in the Grant Agreement. Any changes to this date will be notified by the World Bank. Page I I (iii) Disbursement Conditions (subsection 3.8). Please refer to the Disbursement Conditions in the Grant Agreement. II. Withdrawal of Loan Proceeds (i) Authorized Signatures (subsection 3.1). An authorized signatory 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 Carrera 7 No. 71-21 Torre A, Piso 16 Apartado 10229 Bogota, Colombia Attention: Gloria M. Grandolini, Director, Country Management Unit (ii) Applications (subsections 3.2 - 3.3). Please provide completed and signed (a) applications for withdrawal, together with supporting documents, to the address indicated below: Banco Mundial 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 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, its officials who are authorized to sign and deliver Applications and to receive secure identification credentials ("SIDC") 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 users of Client Connection. If the Bank agrees, the Bank will provide the Borrower 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.org). The Borrower may continue to exercise the option of preparing and delivering Applications in paper form. The Bank reserves the right and may, in its sole discretion, temporarily or permanently disallow the electronic delivery of Applications by the Borrower. (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 Borrower confirms through the authorized signatory letter its agreement to: (a) abide by the Terms and Conditions of Page 12 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 4; 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 Reimbursement and Direct Payment is United States Dollars 150,000. (vi) Advances (sections 5 and 6). * Type of Designated Accounts (subsection 5.3): Segregated * Currency of Designated Accounts (subsection 5.4): United States Dollars (USD) * Financial Institution at which the Designated Accounts Will Be Opened (subsection 5.5): Banco de Bogota * Ceiling (subsection 6.1): United States Dollars 1,300,000. III. Reporting on Use of Grant Proceeds (i) Supporting Documentation (section 4). Supporting documentation for eligible expenditures, that is for actual costs for Goods, Works, Consultant's Services, Non-Consultant's Services and Operating Costs, including those for Silvopastoral Systems Subprojects, shall be provided with each application for withdrawal from the Grant Account: * For reporting eligible expenditures paid from the Designated Account: " Records - "Statements of Expenditures" with supporting documentation in the form attached (Attachment 3A) evidencing eligible expenditures (e.g., copies of receipts, supplier invoices) for payments made for: (i) Consulting Firms and Non-Consultant's Services against contracts valued at USD 100,000 equivalent or more; (ii) Individual Consultants against contracts valued at USD 50,000 equivalent or more; (iii) Goods against contracts valued at USD 300,000 equivalent or more, and (iv) Works against contracts valued at USD 500,000 equivalent or more; o "Statement of Expenditures" without supporting documentation, in the form attached (Attachment 3B), for all other expenditures below the above mentioned thresholds, including Operating Costs. o A Designated Account activity reconciliation statement and Bank Statement should be submitted with each withdrawal application reporting on the use of Grant proceeds from the Designated Account. * For Reimbursements: o Records - "Statements of Expenditures" with supporting documentation in the form attached (Attachment 3A) evidencing eligible expenditures (e.g., copies of Page |3 receipts, supplier invoices) for payments made for: (i) Consulting Firms and Non-Consultant's Services against contracts valued at USD 100,000 equivalent or more; (ii) Individual Consultants against contracts valued at USD 50,000 equivalent or more; (iii) Goods against contracts valued at USD 300,000 equivalent or more, and (iv) Works against contracts valued at USD 500,000 equivalent or more; o "Statement of Expenditures" without supporting documentation, in the form attached (Attachment 3B), for all other expenditures below the above mentioned thresholds, including Operating Costs. * For requests for Direct Payment: Records evidencing eligible expenditures, e.g. copies of receipts, and supplier invoices. (ii) Frequency of Reporting Eligible Expenditures Paid from the Designated Account (subsection 6.3): Quarterly V. Other Important Information For additional information 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. If you have not already done so, the Bank recommends that you register as a user of the Client Connection website (https://clientconnection.worldbank.or). 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. All Borrower officials authorized to sign and deliver Applications by electronic means are required to register with Client Connection before electronic delivery can be effected. For more information about the website and registration arrangements, please contact the Bank by email at . If you have any queries in relation to the above, please contact Victor Ordonez, Senior Finance Officer, at vconde@worldbank.org using the above reference. )Lurs sincerel, Victor OrdoTwz Senior Finance Officer CTRLD Loan Department The World Bank Group Page |4 Attachments All attachments remain without changes: > Attachments number 1, 2, 3A and 3B provided in the original Disbursement Letter dated April 6, 2010 remain without any changes. > Attachment number 4 provided in the amended Disbursement Letter dated March 11, 2011 remains without any changes. Cc with copies: Marcela Ord6fiez Coordinadora Financiera FEDEGAN Calle 37 No. 14 - 31 Bogota, DC Republica de Colombia Page 5