THE WORLD BANK IBRD* IDA I WORLDBANKOROUP OFFICIAL July 20, 2018 His Excellency DOCU M ENTS Donald Guerrero Ortiz Minister of Finance Minister of Finance Avenida Mdxico No. 45, Gazcue Santo Domingo, Apartado Postal 1478 Repiiblica Dominicana Excellency, Re: IBRD Loan 8479-DO (Integrated Social Protection and Promotion Project) Additional Instructions: AMENDED Disbursement Letter I refer to the Loan Agreement between the International Bank for Reconstruction and Development (the "Bank") and Dominican Republic (the "Borrower") for the above-referenced project, dated March 23, 2015. The Agreement provides that the Bank may issue additional instructions regarding the withdrawal of the proceeds of Loan No. 8479-DO ("Loan"). This letter ("Disbursement Letter"), as revised from time to time, constitutes the additional instructions. This is the second amendment of the Disbursement Letter dated March 23, 2015 and amended on December 6, 2017 for the above referenced project. This letter restates Section II (vi) increasing the Designated Account ceiling from USD 4,500,000 to USD 6,000,000. All other provisions and attachments of the Disbursement Letter dated March 23, 2015 and amended on December 6, 2017, shall remain in force and effect. The attached World Bank Disbursement Guidelines for Investment Project Financing, dated February 2017 ("Disbursement Guidelines"), are an integral part of the Disbursement Letter. The manner in which the provisions in the Disbursement Guidelines apply to the Loan 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: * Reimbursement * Advance (available for all Parts of the Project except for Part 1.1) * Direct Payment (ii) Disbursement Deadline Date (subsection 3.7). The Disbursement Deadline Date is four months after the Closing Date specified in Section IV. B. 3 of Schedule 2 to the Loan Agreement. Any changes to this date will be notified by the, Bank. (iii) Disbursement Conditions (subsection 3.8). Please refer to the Disbursement Conditions in Section IV. B. 1 and 2 of Schedule 2 to the Loan Agreement. II. Withdrawal of Loan Proceeds (i) Authorized Signatures (subsection 3.1). An authorized signatures letter 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 1818 H Street, N.W. Washington, DC 20433 United States of America Attention: Ms. Tahseen Sayed, Country Director (ii) Applications (subsections 3.2 - 3.3). Please provide completed and signed applications for withdrawal, together with supporting documents, to the address indicated below: Banco Mundial Setor Comercial Norte, Quadra 02, Lote A Edificio Corporate Financial Center, 70 Andar 70712-900 Brasilia, D.F - Brazil Attention: Loan Operations (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 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"); 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 USD 250,000 equivalent. (vi) Advances (sections 5 and 6) * Type of Designated Account (subsection 5.3): Segregated * Currency of DesignatedAccount (subsection 5.4): USD * Financial Institution at which the Designated Account Will Be Opened (subsection 5.5): Central Bank of Dominican Republic * Ceiling (subsection 6.1): USD 6,000,000 III. Reporting on Use of Loan Proceeds (i) Supporting Documentation (section 4). Supporting documentation should be provided with each application for withdrawal as set out below: * For requests for Reimbursement: o Statement of Expenditure o Customized Statement of Expenditures for Output Based Payments under Part 1.1 of the Project, and o List of payments against contracts that are subject to the Bank's prior review. * For reporting eligible expenditures paid from the Designated Account: o Statement of Expenditure o List of payments against contracts that are subject to the Bank's prior review, and o Designated Account Reconciliation Statement and bank statements. * For requests for Direct Payment: Records evidencing eligible expenditures, e.g., copies of receipts, supplier invoices. (ii) Frequency of Reporting Eligible Expenditures Paid from the Designated Account (subsection 6.3): Quarterly or more often (if needed). IV. Other Disbursement Instructions Output Based Payments under Part 1.1 of the Project (Category 1) Sub-Component 1.1, to be financed under Category 1, will use an output-based approach (OBA). Disbursements will be presented for Reimbursement to be made against eligible Outputs as reported semiannually by the Project through Customized Statement of Expenditures upon receipt of certified report by an Independent Verifying Agent (IVA). Output-based Payments will be semiannually processed against achievement of agreed annual goals for the registration of Eligible Households in CEP ("Comer es Primero" Program) - Output 1, Eligible Household members in the Education programs, ILAE ("Incentivo de Asistencia Escolar") - Output 2 and BEEP ("Bono Escolar Estudiando Progreso") - Output 3, and into Subsidized National Health Insurance (SENASA) - Output 4. The project will disburse the amount correspondent to the Unit Cost Value registration of Eligible Households in CEP ("Comer es Primero" Program) - Output 1, Eligible Household members in the Education programs, ILAE ("Incentivo de Asistencia Escolar") - Output 2 and BEEP ("Bono Escolar Estudiando Progreso") - Output 3, and into Subsidized National Health Insurance (SENASA) - Output 4, up to the cutoff dates (June 30th and December 31th) following the procedures detailed in the Operational Manual and the relevant provisions in the Legal Agreement (Section VI, B. 1 and 2 of Schedule 2). Output-based Payments will be made in two tranches each year subject to the achievement by PROSOLI and SENASA of the annual goals, as set forth in the Operational Manual and verified by the concurrent technical audit semiannually. The first payment will be presented in the first semester of each year, corresponding to the actual Output-Based Indicators achieved for the period from January 1s to June 30th. Disbursements will be made to the degree of achievement for each goal by multiplying the number of the outputs by their respective Unit Cost. The second payment will be presented in the second semester, corresponding to the Output Based Indicators achieved for the period from July 1 to December 31 th. For the second semester, where the annual goals will be verified, the total amount will be deducted from the amount already disbursed for the first semester to not exceed the total annual amount authorized for the year. No withdrawals shall be made under Category 1, unless the borrower has submitted the relevant semi-annual report referred in Section II C (b) of Schedule 2 of the Loan Agreement confirming the achievement of the respective Output-Based Indicators, as set forth in the Project Operations Manual. The unit costs might be adjusted at Project mid-term, or at any other stage of Project implementation, when variances are deemed to be greater than 15% of the Unit Costs (as per reviewed and confirmed by the IVA). 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.orz 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.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, financial, and procurement information. 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 Jose Janeiro at jianeiro@worldbank.org, with copy to Patricia Melo at pmelokworldbank.org, using the above Project name and number as a reference in the subject line. Yours sincerely, aria Virginia Ho azabal Finance Officer WFACS - Loan Operations Attachments (as previously provided) 1. World Bank Disbursement Guidelines for Investment Project Financing, dated February 2017. 2. Form for Authorized Signatures 3. Terms and Conditions of Use of Secure Identification Credentials in connection with Use of Electronic Means to Process Applications and Supporting Documentation, dated March 1, 2013 4. Statement of Expenditures 5. Customized Statement of Expenditures 6. Form of Payments Against Contracts Subject to the Bank's Prior Review 7. Designated Account Reconciliation Statement Cc with copies: Ms. Maria Lugo-Silverio Gerneral Coordinator UTP Gabinete de Coordinaci6n de Politicas Sociales (GCPS) Leopoldo Navarro Ave. # 61, Edif. San Rafael, 2nd Floor, Ensanche San Juan Bosco, Santo Domingo, Dominican Republic http://www.gabsocial.gov.do