ANNEX TO THE INTERINSTITUTIONAL COOPERATION AGREEMENTS THAT PROFONANPE SIGNED WITH EXECUTORS

"PROFONANPE ADMINISTRATIVE GUIDELINES"

I. OBJECTIVE

To establish the norms and procedures of PROFONANPE for: the granting and submitting of advances given, the hiring and procurement required for the execution of the PROJECTS, as well as for the approval and evaluation of the results thereof, carried out by the Project Executors (Headquarters of the Protected Areas - PA, the Senior unit managers or Coordination Units, the Headquarters of SERNANP, other Executors, Regional Governments), hereinafter (EXECUTOR1) within the framework of the corresponding Cooperation Agreement.

II. PURPOSE

Comply with the general and specific procedures that for these purposes are stipulated by the different cooperating agencies that finance the activities in the PROJECTS.

The procedures also have to do with the fulfillment of disbursements, accountability, contracting and monitoring, fulfilling the programme and budgeting the respective AOP and AAP.

III. SCOPE

This Directive is applicable to all agencies, staff and consultants who use the financing of the PROJECTS.

IV. GUIDELINES AND PROCEDURES FOR THE GRANTING AND ISSUING OF ADVANCES

It is necessary to achieve an adequate execution of the funds granted for operating expenses and specific allocations, in order to guarantee the continuous and timely flow of funds for the execution of the PROJECT's activities through the rapid and correct presentation of the expenditure reports that sustain the requirement of future disbursements, taking into account that they are financed with resources from donations from Cooperating Organizations that have specific procedures for the justifications of the expense and reimbursements of the resources to PROFONANPE, which is an obligatory compliance.

IV1. GENERAL RULES FOR THE GRANTING OF ADVANCES

a. The Fund for Operating Expenses and Specific Activities constitutes financial resources to be allocated to the acquisition of goods and services in accordance with the PROJECT's Operational Plan and its financial and budgetary availability.

1 For this Agreement the EXECUTOR refers to who signed it. The Manager refers to the Manager of the UEP Project.

b. The Disbursement Requests for Operating Expenses and for Specific Activities in favour of the EXECUTOR will be formulated in the SIGA - PROFONANPE (hereinafter SIGA2) through the generation of the respective Payment Order.

c. "Payment Orders" have a unique identification number, which will be automatically generated when registered in the SIGA, this number will be used as a reference to facilitate the identification, destination of the funds and the corresponding accountability.

d. PROFONANPE, through the SIGA, will communicate the transfer operation once it has been completed, indicating the order number, expenditure chain, amount and voucher number.

e. THE EXECUTOR (Head of administration3) will record the accountability in the "pre-submission phase" in the SIGA and must inform PROFONANPE, by telephone, by fax, or by electronic message, the guide number and issue date of the documented submission.

IV2. SPECIFIC RULES FOR THE GRANTING OF ADVANCES

1. Operating Expenses a. Of the Advance Payment Request

i. Operating expenses are payments for public services, rent, fuel, rationing, maintenance, including petty cash, as approved in the AOP.

ii. For the fulfillment of the activities that involve transfer of funds to the EXECUTOR, this will be done only through the joint account opened specifically for the execution of the PROJECT activities.

iii. THE EXECUTOR must formulate the requirement of funds through the registration of a "Payment Order" in the SIGA "OFITESO Module - (Funds/Banks/Maintenance/PROFONANPE Options/Payment Order)4", according to the approved Operating Plan, and must attach the detailed justification (Form S-1) of expenses, activity and expense chain, sending it scanned via email simultaneously on the date of registration of the "Payment Order".

iv. The transfer of expenses for the execution of activities or operating expenses is authorized in the SIGA by the maximum authority of the EXECUTOR and the MANAGER, as applicable, and will be requested in accordance with what is indicated in clause c) above, so that PROFONANPE, may pay the Money transfer/Check or make the deposit directly in the bank account (open especially for the execution of the PROJECT. Previously, accountability of funds spent, must have been submitted by those responsible for the EXECUTOR, according to these guidelines. This transfer will be made until the eighth day of the month,

2 The personnel designated by the Executor will be trained for the presentation of the requirements of the Project, through

Profonanpe's SIGA. 3 For the purposes of this Agreement, "The Person Responsible" is the personnel designated by the executor. 4 According to the "User Manual - SIGA".

according to the Programme approved in the AOP and the financial availability of the Project.

v. The personnel responsible of the EXECUTOR (Chief of the PA/ Coordinator and/or Administrator), as the case may be, will sign a receipt for the amount deposited by PROFONANPE, on every occasion that payment is made in the indicated bank accounts. Said receipt must be sent to PROFONANPE within a period of no less than 72 hours after receiving the funds.

vi. The EXECUTOR will officially inform PROFONANPE of the names of the responsible people (Chief of the PA/Coordinator and Administrator) at the beginning of each Agreement or when the aforementioned personnel are changed, with due anticipation, in order to provide accountability by said personnel. The communication will include the new number of the bank account and the respective bank entity.

vii. Bank transfers will be made directly by PROFONANPE, according to the annual schedule, these may be suspended in the case of lack of accountability.

viii. Current account holders are required to send PROFONANPE a copy of the bank statement of the corresponding account upon receipt of the advance and upon departure of the last withdrawal from the bank account. Likewise, PROFONANPE reserves the right to request from the holders of the aforementioned current accounts, a bank statement of the account whenever required.

b. Accountability documented i. The local offices of the EXECUTOR, as the case may be, must comply

with remitting to PROFONANPE, the reports of accountability for the amounts transferred for operational expenses according to the following procedure5:

i.a)

• Up to a minimum of 70% of the amount transferred during the first 20 calendar days of the month.

• The remaining balance 30% no later than the next 10 calendar days.

i.b) The expenditure reports will be processed in the SIGA "Module OFITESO - (accounts payable/receivable/maintenance/options PROFONANPE) “Pre-submission of bank charges". The respective report will be sent to PROFONANPE within the periods indicated above.

ii. The local offices of the EXECUTOR may maintain cash up to the amount of S /. 1,000.00 (One thousand and 00/100 Peruvian soles) for unforeseen, that is, small, urgent and unscheduled expenses. This

5 See List 5.

amount may be settled up to 80% before 20 calendar days. The Head of the local office (PA or other), may authorize the Administrator to replace it, up to a maximum of three (3) times per month. ii.a) The maximum amount for payment of invoices in cash may be S /. 200.00. A check should be issued as of S /. 201.00.

iii. Expenses incurred in the commission of services, payment of basic services (water, electricity, telephone), maintenance of vehicles and equipment, purchase of food (rationing), fuel, clothing and third party services, will not be considered as cash supports. Exceptionally, the payment of basic services and the maintenance of vehicles not exceeding S / .200.00 can be dealt with in cash.

iv. The documentation should be presented in correlative form and duly numbered, respecting the sequence of the registration in the Pre-Expenditure Report of the OFITESO module.

v. All the accountability documents should be signed and sealed by the head and Administrator (PA or other) giving conformity to their execution.

vi. A support for expenditure in the acquisition of materials, goods and/or services, should have the following documentation attached: • Requirement: which must indicate the technical specifications of

the goods and/or services duly supported by the person responsible for the activity, and authorized by the Representative or Head of the Local Office of the EXECUTOR according to the Operational Plan (format R-1).

• Delivery Certificate: which must be signed by the applicant (responsible for the activity) as a sign of receipt of the request (format R-2).

• Each receipt should be signed on the reverse side by the person responsible for the activity, clearly stating their full names and surnames, their ID number and respective signature.

2. About Specific Activities a. Programming

The MANAGER shall verify the activities programmed in the AOP that imply disbursements of resources, reviewing the budgeted cost for the same, and shall coordinate with each area the implementation of these activities until the 20th day of the previous month, within the framework established in the corresponding AOP, in order to avoid delays or reprogramming. Specific expenses are understood to be those activities foreseen in the AOP that imply compliance with goals and are not considered as operating expenses.

b. About Requests for Advances

The person designated by the EXECUTOR are the PA or Local Offices, the Manager or whom may correspond, must request the funds, formulating the "Payment Order” OFITESO MODULE (Savings Banks / Banks / Maintenance / PROFONANPE Options / Payment Order)6. For each "Payment Order" registered in the PROFONANPE SIGA that involves Specific Activities, an expense justification sheet will be elaborated (Form S-1) and attached to each Order and will have to fulfill the following requirements:

i. Be presented by the person responsible designated by the EXECUTOR7, either the Head of the PA, representative of the Local Office, the Administrator or another professional, the Administrative Assistant of the ETP, with the approval of the MANAGER8, as appropriate.

ii. Detailed budget for expenses and amounts of the Specific Activity, which must be programmed in the AOP.

iii. Date, duration, schedule of the activity. iv. Requirements that do not correspond to a specific activity will not be

included as part of that activity. v. The resources of the specific activities shall be delivered in checks, bank

drafts, or deposited in the account of the local offices of the EXECUTOR or of the Technical Unit of the Project. Advances for specific activities may be granted to PROJECT personnel, with the express authorization of the EXECUTOR9 and the PROJECT MANAGER.

c. About Documented accountability10

i. Specific activities will be accounted for within a maximum period of 7 days after completion of the activity, and a total of 25 days maximum from receipt of funds to its accountability.

ii. The accountability of expenses for specific activities (advances) referred to in the previous numeral, will be processed in the SIGA PROFONANPE "Module OFITESO: Company / (Accounts Receivable / Pay / Maintenance / PROFONANPE Options / Pre-Accountability Bank Expenses)"11. The respective report and supporting documentation will be sent to PROFONANPE according to the established guidelines.

iii. PROFONANPE will not transfer resources to the Executors who have pending renditions or to those who repeatedly fail to submit their renditions within the established deadlines, under the responsibility of

6 According to the "User Manual - SIGA". 7 According to the Interinstitutional Cooperation Agreement 8 Project Manager 9 As established in the corresponding Clause of the Interinstitutional Cooperation Agreement 10 See Appendix 5 11 See Appendix 5 and 5A of the agreement

the EXECUTOR12 in which case PROFONANPE will request that the necessary corrective actions be taken.

iv. In the event that a member of staff or consultant does not submit the rendering of the advance granted within the established term, in the case of staff or consultants hired directly by PROFONANPE, the EXECUTOR or MANAGER of the Project shall be notified and a discount shall be applied to the fees for the amount equivalent to the advance. In the case of personnel or consultants hired by the EXECUTOR, the General Office of Administration of the institution shall be notified of the corresponding discount.

IV.3 OF SUPPORT

1. All expenses made with charge to resources transferred by PROFONANPE must be supported by payment vouchers issued in the name of PROFONANPE:

• PROFONANPE, RUC 2026143047013 • All payment receipts must be stamped with the

inscription PROJECT (name of the project). 2. Expense documents constitute all those payment vouchers

approved by SUNAT, such as: Invoices, Professional Fee Receipts, Cash Register Tickets, Sales Tickets, Air Tickets, etc., and must not present erasures or amendments, otherwise they will be rejected, not forming part of the expenses claim.

3. The Banking Law 28194 sets out that payments to suppliers for amounts equal to or greater than S/. 3,500 or US$ 1,000 be made through payment means, which must be applied by THE EXECUTOR, when applicable.

4. Legislative Decree No. 940 and Superintendence Resolution No. 073-2006/SUNAT establish the deduction of 4% for goods transport services carried out by land for amounts greater than S/.400.00 to be applied by the EXECUTOR, when applicable.

5. In case it is not possible to have any of the documents indicated due to geographical location limitations and only in exceptional cases can the accounting expense be justified with an Affidavit up to a maximum of S/. 500.00.

6. For the payment of wages, where there is no supporting documentation, there will be a List of Payments, which will contain: names and surnames, ID N°., signature or fingerprint,

12 As established in the corresponding Clause of the Interinstitutional Cooperation Agreement. 13 If the transfer of PROFONANPE Resources is incorporated into the "Budget" (Public Sector) of the EXECUTOR, the RUC belongs to the EXECUTOR. If the resources are transferred as donations to sub grantees (private entities) the payment vouchers will be issued in the name and with the RUC of the EXECUTOR, in which case the account renderings will not be registered in the SIGA PROFONANPE.

duly endorsed by the head of the EXECUTOR, the Head or Coordinator of the Area.

7. The acquisitions (in the PA or local office) will require a short list of three candidates for the respective price comparison and subsequent adjudication to the best alternative in terms of price.

8. The fractioning of expenses is not applicable. 9. The Administrator and the Responsible Party shall endorse and

seal all payment vouchers supporting the account expenses, as well as sign the Pre-Accountabilities of Expenses and corresponding reports. The Representative or MANAGER, as the case may be, will endorse the documentation related to The PROJECT.

10. The concepts contained in the payment vouchers must be consistent with the amounts established in the corresponding budgets, according to the prices of goods and services in the area.

11. The execution of expenses made with funds transferred directly from PROFONANPE will be executed according to the procedures established in the Donation Agreement and these Guidelines.

IV.4 OF THE CASH COUNTS

1. PROFONANPE, on the dates it deems appropriate, will carry out unannounced cash counts (without prior communication) of the transferred funds, which will be carried out by personnel designated for this purpose.

2. Minutes of the cash counts practiced will be drawn up and will be signed by the contractors responsible for the funds, as well as by those in charge of carrying out the cash counts.

3. If there are observations, they must be raised immediately. 4. If the observations are not raised in the expense reports, THE

EXECUTOR must return the funds to PROFONANPE's account.

IV.5 COMPLEMENTARY PROVISIONS

1. The staff/consultant appointed by THE EXECUTOR14, as the case may be, will send the submissions according to the established guidelines and deadlines, via courier and electronic system, to PROFONANPE.

2. The staff/consultant appointed by THE EXECUTOR or the person concerned, in order to avoid tax contingencies for PROFONANPE, after the 20th of each month, will not accept any receipt for professional fees with a cancellation date for said

14 As established in the corresponding Clause of the Interinstitutional Cooperation Agreement.

month and will immediately send to PROFONANPE the Pre-submission Reports of Expenses for the total Fees paid on that date; this submission must reach PROFONANPE at the end of each month. Receipts for professional fees submitted after the above date should record the cancellation with the following month's date.

3. The concepts contained in the payment vouchers must be consistent with the amounts established in the corresponding budgets, according to the prices of goods and services in the area.

4. The cases not provided for in this Directive, must be resolved by PROFONANPE in coordination with the EXECUTOR, the MANAGER or Responsible for the PROJECT.

IV.6 OTHER ASPECTS TO BE TAKEN INTO ACCOUNT

• THE EXECUTOR, MANAGER, Chiefs of the PAs or Administrators and general personnel using PROJECT funds must verify the following aspects before sending the submissions: o Verify calculation of the IGV (19%) in each invoice. o Receipts of Fees (RF): The document must have 11 digits of the RUC printed

on it, otherwise it must be stamped. Only if applicable: Format of suspension of retentions

of Fourth Category. Send original receipt and copy of SUNAT. Fill in the RF, except cancellation date. Receipts equal to or less than S/.1 500 are not subject

to withholding. (This amount may vary according to SUNAT's resolution)

o Verify if the payment receipts are subject to the withdrawals indicated by SUNAT.

• Invoices and/or vouchers with amendments will not be accepted, under responsibility. PROFONANPE will request the EXECUTOR to apply the corresponding sanction for the personnel that had deliberately committed the above-mentioned fault.

• PROFONANPE is authorized to verify the authenticity of the payment vouchers, in order to guarantee the faithful fulfillment of the procedures.

• No disbursements will be made to the PAs or to personnel who owe surrenders for advances on operating expenses or for specific activities.

• In the case of personnel/consultant who owe advances for specific activities, their corresponding fees shall be withheld

until the respective rendering is made (in the case of personnel/consultant financed by the PROJECT). If the staff/consultant is hired by the EXECUTOR, the Administration Office of the EXECUTOR will be notified for the corresponding retention.

• The expenses supporting the submissions must be charged to the expense chain for which those expenses were requested. The expenses reported must correspond to the activities of the Project (under responsibility).

• Fractioning the acquisitions of goods and services are strictly prohibited.

• Resources must be used with caution. • Goods, furniture or equipment may not be acquired with

resources from operating expenses or expenses from specific activities.

• The EXECUTOR at the beginning of the present Agreement, will send to PROFONANPE the name of the responsible persons authorized to sign, endorse disbursement requests, expenses and those that apply to make these Guidelines effective (by PA or Local Office).

V. GUIDELINES AND PROCEDURES FOR CONTRACTING GOODS, SERVICES, CONSULTANCIES AND WORKS

It is necessary to establish the rules and procedures for the contracting of goods, services, consultancies and works, within the framework of the Operational Plans of the "PROJECT".

V1. PURPOSE

To achieve an adequate execution of the Project taking into account that it is financed with resources coming from the Cooperation Agreement through PROFONANPE, which has specific procedures for the contracting of goods, services, consultancies and works, which must be executed according to these procedures in order for the expenses incurred to be recognized as eligible, for which compliance is mandatory.

The procedures also have to do with compliance with what is programmed and budgeted in the respective AOP.

V.2 GENERAL STANDARDS

Acquisitions and contracting of goods, works, services, consultancies to be carried out with PROJECT's resources are subject to PROFONANPE's rules, to those indicated in the Financing Agreement with the Donor and to the principles and policies15 detailed below:

Basic Principles

• Economy and Efficiency. • Equal participation opportunity for potential stakeholders. • Promote the development of local capacities. • Transparency.

Policies

• Acquisition through competitive procedures. • Promote competition. • National preferences.

The Contracts and Acquisitions (of consultants, goods, services and works), required for the execution of the PROJECT are made in accordance with the provisions of the AGREEMENT16 of Financing with the Donor and according to the Interinstitutional Cooperation Agreement between the EXECUTOR and PROFONANPE, the contracting that could be required with charge to the resources of the PROJECT for the execution of the activities approved in the Annual Operational Plans (AOP) and Annual Acquisition Plan (AAP).

The contracting process must be carried out through the SIGA.

Contracts may be made under the following two schemes: (i) Contracts made by PROFONANPE at the request of the EXECUTOR and (ii) Contracts made directly by the EXECUTOR, according to the following Norms and Procedures:

All hires to be made must be provided for in the Procurement Plan approved annually or in the corresponding previously approved modifications.

It is the responsibility of PROFONANPE:

• Supervise the selection processes of the EXECUTOR in order to ensure compliance with these rules.

• Reject any acquisition that has not been carried out according to what is established in these Rules.

All acquisitions and contracts have contracting processes, which are indicated in Appendix 1 of this Annex.

15 The Anti-Corruption Rules are included (Appendix 6).. 16 Donation Agreement between PROFONANPE and the Donor.

1. General Rules for Contracts made by PROFONANPE at the request of the EXECUTOR a. Regarding the corresponding contracts made directly by PROFONANPE, this

institution will carry out the following activities: Carry out the selection and bidding process, if applicable, for the

acquisition of goods, services, consultancies and other contracts of a specific and temporary nature, in accordance with the approved AOP and AAP and according to the technical specifications or terms of reference to be elaborated by the EXECUTOR, with the support of the MANAGER. Formalize the hiring required by the EXECUTOR in accordance with the

provisions of the respective Financing Agreement, as well as contracts for works, goods, services, consultancies and other contracts of a specific and temporary nature that need to be performed directly by PROFONANPE for the PROJECT. Register in the Logistics Module of SIGA-PROFONANPE the contracts for

follow-up of the EXECUTOR. Verify and carry out, with charge to the resources of the PROJECT, the

payments that derive from the contracts before indicated, according to the established in the respective contracts. The original documentation related to the tender process will remain in

PROFONANPE's possession.

b. Regarding the contracts that correspond directly to PROFONANPE, the EXECUTOR will carry out the following activities:

Approve, as provided in the AOP and AAP of the PROJECT, the technical files, terms of reference, technical specifications and all other documentation, prepared for the procurement and contracting of goods, equipment, civil works, consultancies and other specific services to be performed. The Executive Unit (EXECUTOR) will enter in the Logistics Module of

SIGA-PROFONANPE the requirements of goods, consultancies, services and works. The Project Manager approves the requirement in the Approvals

Module and later the EXECUTOR, so that it is attended by PROFONANPE. With the support of consultants specially hired to supervise the

infrastructure issue, the EXECUTOR will be responsible for the selection of consultants and contractors for the execution of works, according to the procedures approved for the project. To carry out the follow-up and technical supervision of such contracts.

In the Logistics Module, the Infrastructure Specialist will record, in chronological order, the most outstanding incidents of the work (delays, modifications or changes in the work) that will serve to support the requests generated for extensions of time, additional, deductive, etc.

To give PROFONANPE the conformity of payment of goods, services, consultancies and works ensuring the due supervision of the quality of the same ones, for everything financed with resources of the PROJECT. For such effect, the EXECUTOR will register in the SIGA PROFONANPE - "Module OFITESO" the payment request and will send to PROFONANPE, within the term indicated in the contract subscribed with the supplier or respective consultant the support of the payment. It is expressly stated that PROFONANPE does not assume responsibility for lack of timely payment to the supplier of the good, service or work, in the event that EXECUTOR does not make the corresponding request or communication. If applicable, receive the goods and/or reports derived from the

contracting of goods and services to be performed by PROFONANPE.

2. General Standards for Contracts "Contracted" directly by the EXECUTOR a. Regarding the contracts that correspond directly to the EXECUTOR,

PROFONANPE will execute the following activities: Supervise and review the processes carried out under the responsibility

of the resources of the PROJECT, that is to say: call, tender, evaluation, contracting and the payments derived from the above mentioned contracts, according to what is established in the respective financing agreements and the signed contracts and agreements.

b. Regarding the contracts that correspond directly to the EXECUTOR, this entity will carry out the following activities:

Approve, in accordance with the provisions of the AOP and AAP of the PROJECT, the technical files, terms of reference, technical specifications and all other documentation prepared for the acquisitions and contracting of goods, equipment, civil works, consultancies and other specific services to be performed. Carry out the selection and bidding process, if applicable, for the

acquisition of goods, services, consultancies and other specific and temporary contracts, in accordance with the approved AOP and AAP, the Procedures indicated in the financing agreements, the present guidelines and according to the technical specifications or terms of reference to be elaborated by the EXECUTOR, with the support of the MANAGER. Formalize the contracting in accordance with the provisions of the

respective Financing Agreement, as well as the contracts for works, goods, services, consultancies and other specific and temporary contracts required for the PROJECT. With the support of consultants specially hired to supervise the

infrastructure issue, the EXECUTOR will be responsible for the selection of consultants and contractors for the execution of works, according to the procedures approved for the project.

Grant approval of payment ensuring the quality of the goods, services, consultancies and works. If necessary, receive the goods and/or reports derived from the

contracting of goods and services. The original documentation related to the bidding process will remain

in the hands of the EXECUTOR and in correlative order for subsequent supervision by PROFONANPE. THE EXECUTOR will assume exclusive responsibility as an employing

and/or contracting entity with respect to the suppliers, consultants, manufacturers and, in general, the personnel hired in his name for THE PROJECT. Therefore, it is expressly stated that PROFONANPE will not have any

contractual or any kind of connection with the suppliers of goods and works, consultants, personnel and persons or entities contracted by THE EXECUTOR. THE EXECUTOR is responsible for compliance with the applicable

national legal regulations, both with respect to civil contracting of works, goods and services, as well as the application of the pertinent labour legislation, with respect to the hiring of personnel; PROFONANPE cannot be held responsible in the event of non-compliance with the obligations and/or procedures applicable to such hiring, both with respect to formal and substantive aspects. In view of the foregoing, especially in the case of personnel, the

EXECUTOR is responsible for making calculations and foreseeing labour costs (including withholdings, social provisions to be paid by the employer, among others) that may be applicable, in order to comply with current regulations. The deduction and/or payment of taxes, or other tax contributions,

labour, social security or any other type of contribution to the State derived from the contracting of goods, services and personnel in charge of the EXECUTOR will be their exclusive responsibility. Fines and penalties that may be imposed by collecting societies and state entities, in general, derived from non-compliance with the provisions of this Section, as well as any claim from suppliers of goods and services, as well as personnel, shall be the sole and exclusive responsibility of the EXECUTOR and may not be paid with the resources derived from the PROJECT. No person employed or contracted (works, goods or services in general)

by the EXECUTOR, as established in THE PROJECT, will be considered agent, dependent or employee of PROFONANPE. Therefore, the EXECUTOR will be exclusively responsible for all claims -judicial, extrajudicial or of any nature- brought by such persons derived from their contractual relations with the EXECUTOR. In addition, the EXECUTOR shall expressly inform such persons of the foregoing provisions.

The EXECUTOR will be responsible for the work carried out or services provided by the persons or entities contracted (works, goods or services in general) or personnel contracted for the PROJECT. PROFONANPE will not attend or recognize any payment of fees, price,

remuneration or retribution, reimbursement of expenses, compensation or any other payment derived from such contracts (works, goods, services, personnel), in charge of the EXECUTOR, that are not foreseen in the AOP and AAP duly approved by the PROJECT. The EXECUTOR must inform and sustain PROFONANPE of any early

termination of a contract with any supplier or consultant of a good or service, as well as with respect to personnel contracts contracted by said entity; as well as of any contingency or claim associated with said contracts, in order to ensure the adequate execution of the PROJECT and, therefore, this does not imply that PROFONANPE assumes responsibility for such facts or decisions in the charge of the EXECUTOR. The payment of any retribution, expense (including expenses derived

from judicial, arbitral, administrative or similar processes), remuneration, compensation, or extraordinary cost resulting from the early termination or any other cause related to a personnel contract or works contract, goods or services in general contracted by the EXECUTOR, for the PROJECT, and in general, payment of any compensation, penalty and/or extraordinary cost, which may correspond, not justified and agreed with PROFONANPE, will be assumed exclusively by the EXECUTOR, and may not be paid with the committed resources of the PROJECT in general. Therefore, the EXECUTOR must attend and assume the costs directly of

any claim or contingency derived from full payment, retribution or remuneration, reimbursement of expenses, payment of judicial, arbitral or administrative processes, indemnities or accrued or extraordinary compensations and any concept that could be claimed by the persons or entities contracted by the EXECUTOR, in accordance with the foregoing. That institution should inform PROFONANPE of such claims or contingencies and adopt the pertinent provisions against such contracted persons for their compliance with the provisions of this section.

V.3 SPECIFIC RULES

1. Hiring of Consultants

The contracting of consultancies will be executed under the following procedure:

a. The processes will be carried out using the following methods according to the limits in Appendix 1:

o Selection based on quality and cost. o Selection according to fixed price.

o Selection based on consultant qualifications. o Selection by minimum cost: of a standard nature. o Individual consultants: experience and qualification of the person are

paramount. b. The EXECUTOR will elaborate the terms of reference, which must indicate the

following: background, objectives, description of the service, expected results and products, requirements, deadlines, among others.

c. The EXECUTOR prepares terms of reference (TOR) and/or technical specifications, which ALWAYS contain a detailed budget of the activity to be contracted. This estimate may differ from the budget considered in the AOP. The TOR will be reviewed by the MANAGER and will have its approval prior to the start of the tender.

d. If the budget of the TOR is higher than the budget approved in the respective AOP, the EXECUTOR, as the case may be, will inform the Executive Director of PROFONANPE of the situation, prior to the tender, and the decision will be analyzed according to the following budget modification procedure:

o If the difference can be managed with the available budget of the same expense chain or programme, approval of the Executive Director of PROFONANPE will be required.

o If the difference requires budgetary movements of other programmes or chain of expenses, or cannot be handled with internal movements of the budget but a budgetary increase is necessary, the approval of the Administration Board of the PROJECT will be required.

e. With the Budget of the TOR approved, the respective tender procedure will be initiated.

f. Every Evaluation Committee must receive at the moment of its installation the TOR or the PP (bases) and the approved budget; as well as the documentation containing the procedures applicable to the respective tender.

g. The functions of the Evaluation Committee are: to respond to the consultations, receive the proposals, evaluate the proposals, and issue its results report (which shall include, if applicable, the specific terms of the negotiation that has taken place).

h. The performance and decisions of the Evaluation Committee of the Tender shall be subject to the rules and procedures of the cooperating source, failing that, to those applicable according to the Project, the PP or TOR, and to the clarifications contained in this document.

i. The negotiating power of the Evaluation Committees, referred to in the preceding paragraph, may not commit additional resources of the Project established in the TOR or PP and approved referential budget, nor additional commitments or obligations on the part of the Project and, in general, shall be subject to the limitations and/or guidelines established in the present rules and procedures.

j. The culmination of the negotiations between the bidder and the Evaluation Committee of the Tender shall not necessarily imply the award in its favour in the terms negotiated with said Committee; the corresponding approvals shall

be obtained in accordance with the rules and procedures applicable to the bidding and with the clarifications contained in this document.

k. In the event that the proposal that obtained the highest score, even after the corresponding negotiation according to the type of contest, exceeds the approved referential budget, the Evaluation Committee shall submit its report to the EXECUTOR for consideration; so that the latter may decide whether or not to carry out the budget modification according to the procedures established in the present document or to conclude the negotiations and, consequently, that the Evaluation Committee proceeds to negotiate with the next best qualified bidder; according to the rules and procedures applicable to the contest and with the clarifications contained in the present document.

l. The Evaluation Committee shall submit its results report (containing the specific terms of the negotiation that has taken place) to the EXECUTOR and the latter in turn to PROFONANPE; on the basis of which it shall proceed to formalize the awarding of the bid, declare the contest null and void or the corresponding result.

m. For the hiring of consultants: o Foreign consultants are not required to register. o No reference value is indicated in the PP. o No minimum number of proposals need to be presented before

awarding the bid. o A correlative number of the selection processes of the consultancies will

be kept.

2. For the acquisition of goods, services

The procurement of goods and services shall be carried out in accordance with the following procedure:

a. The processes will be carried out using the following methods according to the limits in Appendix 1:

o Public Bidding o Price comparison o Direct adjudication

b. The EXECUTOR will prepare the technical specifications; determine the quantities (according to the Procurement Plan).

c. The Specifications must have the approval of the MANAGER prior to the beginning of the acquisition process.

d. Processes shall be carried out using the methods set out in the Procurement Guidelines with IBRD and KfW loans, according to the limits and procedures in Appendix 1.

e. The award to the Bidder must be based on the lowest evaluated cost. f. The original documentation related to the bidding process shall be kept in

custody. g. A sequential number of the bidding processes will be kept.

3. In the case of Acquisition of Motor Vehicles and their Maintenance

The EXECUTOR undertakes to comply with the procedures set forth in Appendix 2: Guidelines for the Use of Goods Granted to the EXECUTOR and Acquisition and Maintenance of Motor Vehicles.

4. For the contracting of works:

Works contracts shall be executed in accordance with the following procedure:

a. The processes will be carried out using the following methods according to the limits in Appendix 1:

o Public Bidding o Price comparison

b. The EXECUTOR will prepare the technical specifications/terms of reference, which ALWAYS contain a detailed budget of the activity to be contracted. This estimate may differ from the budget considered in the AOP.

c. It will be a condition for study or construction activities that the legal physical sanitation be resolved, and the EXECUTOR must attach the documentation that accredits it.

d. The TOR must have the previous approval of the MANAGER. e. If the budget of the TOR is higher than the budget approved in the respective

AOP, the EXECUTOR shall inform the Executive Director of PROFONANPE of the situation, prior to the official submission of the TOR by the EXECUTOR, and the decision shall be analyzed according to the budgetary modification procedure established in the corresponding agreement and which indicates, in a general manner, the following:

o If the difference can be managed with the available budget of the same or programme, approval of the Executive Director of PROFONANPE will be required.

o If the difference requires budgetary movements of other programmes or components or cannot be handled with internal movements of the budget but a budgetary increase is necessary, the approval of the Project Management Board will be required.

f. With the approved TOR Budget, the respective tender procedure will begin. g. In the case of PPs (bases), bidders must be requested to present a detailed

budget of their proposal or economic tender, by activity and product; including the corresponding taxes and labour costs.

h. Every Evaluation Committee must receive at the moment of its installation the TOR, the PP (bases) and the approved budget; as well as the documentation containing the procedures applicable to the respective contest.

i. The functions of the Evaluation Committee are: to respond to the consultations, receive the proposals, evaluate the proposals, and issue its results report.

j. The contract approval is awarded to the lowest proposal. k. There is no negotiation with the bidder on the price, except for the terms of the

execution process of the work.

l. The actions and decisions of the tender Evaluation Committee shall be subject to the present rules and procedures, the PP/bases, TOR, and the clarifications contained in this document.

m. The faculty of the Evaluation Committees may not commit additional resources of the Project established in the TOR or PP/bases and approved referential budget, nor additional commitments or obligations on the part of the Project.

n. The culmination of the negotiations between the bidder and the Bid Evaluation Committee shall not necessarily imply the award in its favour in the terms negotiated with said Committee; the corresponding approvals must be obtained in accordance with the rules and procedures applicable to the bidding and with the clarifications contained in this document.

o. In the event that the proposal with the highest score exceeds the approved referential budget, the Evaluation Committee shall submit its report to the EXECUTOR for consideration, so that the latter may decide whether or not to carry out the budget modification in accordance with the procedures established in this document.

p. The Evaluation Committee shall submit its report to the highest authority of the EXECUTOR, on the basis of which it shall proceed to formalize the granting of approval, declare the contest null and void or the corresponding result.

q. The original documentation related to the bidding process will be sent to PROFONANPE or will remain in the hands of the EXECUTOR, in an orderly manner for later revision/supervision, in the event that the resources transferred by PROFONANPE are incorporated in the EXECUTOR's budgets.

r. Precisions to the operative procedures and of control to follow, for the execution of the works:

o Each one of the contracts of work, must count on a supervisor of work contracted for such purpose and will be responsible for the supervision, monitoring of each one of the works, as well as of the approval of the corresponding valuations.

o The Infrastructure Department of the EXECUTOR is in charge of the technical and contractual follow-up of the infrastructure component and of the works and supervision contracts. This department will schedule inspection trips to the works.

o The occurrences that take place during the execution of the works are recorded in the workbook, which is signed by the Contractor's Resident Engineer and the Work Supervisor Engineer.

o The Site Supervisor permanently coordinates with said Department of Infrastructure.

o The generation of weekly and fortnightly technical reports will be implemented, in charge of the Supervising Engineers, which are indicated in their respective contracts.

o The formulation of the appraisals (payments on account for work progress), which are fortnightly, are prepared by the Resident Engineer and the Supervising Engineer, the latter approves them in the first instance.

o The appraisal document, together with the respective report of the Supervising Engineer, is submitted to the Head of the PNA or corresponding Local Office, who will transfer it administratively to the Headquarters of the SERNANP or the EXECUTOR.

o At the same time, the Head of the PA will extend a report to the Head of the SERNANP or to whom it corresponds, every fifteen days, regarding the progress of the execution of the work, pointing out any eventuality or incident that he considers outstanding and that could present itself in the development of the same.

o The Department of Infrastructure will review the appraisal and verify the contract. If applicable it will give the corresponding conformity and will, in turn, direct it to PROFONANPE, for the authorization of the corresponding payment.

o The Directorate of Administration and Finance of PROFONANPE, in turn, will process the issuance of the corresponding check.

o In the eventuality of presenting extensions of term and/or additional budgets of work, after review and approval by the Supervising Engineer, the respective report will be transferred to the Head of the ANP, who in turn will process it administratively to the Headquarters of the SERNANP or the EXECUTOR. The Dept. of Infrastructure will proceed to its evaluation and if considered in accordance with the presented proposal, it will submit it to the EXECUTOR for final approval.

o It is the responsibility of the Head of the PA to provide the facilities for the availability of the use of construction materials that are within the area, as well as in the control of temporary environmental impacts that will occur during construction, situations that are foreseen in the respective site plans, for which he shall coordinate with the Supervising Engineer and Resident Engineer of the Contractor and also when these require some coordination.

o When the work activities are concluded and once the observations have been verified, if any, the work will be received and then the corresponding settlement of accounts will be formulated.

o A Special Commission shall be formed for the reception of works, with the participation of officials of the EXECUTOR.

o The liquidation of the work will be approved by the maximum authority of the EXECUTOR.

s. Details of the operational and control procedures to be followed, for the execution of works by Direct Administration (only if it counts with the exceptional approval of DONOR), as indicated in Appendix 3 attached to this document.

5. For the recruitment of staff:

In the case of Projects where the Donation finances the hiring of personnel, this will be carried out by THE EXECUTOR in accordance with the provisions of numeral V.2.2 General Standards for

"Contracted" Contracts directly by the EXECUTOR, as well as the provisions of Appendix 4 General Guidelines on the Hiring of Personnel.

PROFONANPE shall transfer the funds monthly according to the advance payment procedure indicated in numeral IV.2.

VI. GUIDELINES AND PROCEDURES FOR THE GRANTING AND CONTROL OF EXPENSES

VI.1 GENERAL RULES

a. Official business trips will have to respond to a detailed and justified programming of activities and according to the financial and budgetary availability of the PROJECT, for the fulfillment of its goals and objectives.

b. The budget of daily and authorized travel expenses (Form S-2) must be prepared and signed by the commissioner as a sign of conformity of the amount to be received and the maximum amounts of expenses authorized to be executed. It must be authorized by the EXECUTOR and have the approval of the MANAGER, with which the commissioner will have knowledge of the maximum amount he can spend per day (Annex S-3).

c. The expenditure made with funds transferred by PROFONANPE will be executed according to the procedures established in these Guidelines.

VI.2 SPECIFIC RULES

A. Of the programming and justification of the trips: a. The requests for service commission (daily budget and expenses of authorized trips

- Form S-2) must be presented to the EXECUTOR, with at least 7 working days of anticipation of the respective trip, for its opportune attention. Those who formulate the "Order of Payment" in the SIGA17 take as support Form S-2. PROFONANPE will be sent the requests with 4 working days before the Commission.

b. The requests will be formulated according to the established format (Form S-2), which is part of the present directive. Requests must include a travel plan, which must be approved by the EXECUTOR.

c. Service commissions made within the urban radius of the work centre, using working hours that allow return to the staff's habitual residence on the same day the commission is made, do not generate the payment of daily expenses. Only travel mobility expenses will be recognized, when applicable

B. Granting and settlement of daily expenses: a. The daily allowance shall be granted in accordance with the provisions of Annex S-3

"Cost of Daily Assignment" and shall not exceed such amounts. b. The amounts paid for daily expenses shall be supported, with an Affidavit duly

signed by the person receiving it, according to Form R-V1. This Format must be endorsed by the EXECUTOR. This form will be delivered by the Commissioner at the moment of receiving the check of his travel expenses or sent simultaneously with the request.

17 See numeral IV 2.2. of the present guidelines.

c. The Commissioner shall render the amounts authorized in the travel commission with respect to transportation, fuel and other expenses that are approved as a travel bag for a specific expense (Form RV-1).

d. The settlement of the commissioner's expense should be supported by a copy of the respective service commission report (Form RV-2) duly endorsed by the EXECUTOR, when applicable, as a sign of conformity, and within four (04) days of the conclusion of the activity or the service commission trip. In the event that the Report is not submitted within the established time, when the member of staff or consultant is financed by the PROJECT and hired directly by PROFONANPE, the EXECUTOR will be notified and a discount will be applied to the fees. In the case of personnel hired by the EXECUTOR, the General Office of Administration of the EXECUTOR will be notified for the return of the surplus funds.

e. In the event that the service commission trip is cancelled or made in a shorter time than initially scheduled, the amount of unspent money must be returned to the PROJECT bank account maintained by PROFONANPE for the amount of the unused days, in the same currency in which the funds for the service commission were transferred and in the PROJECT bank account and which was mentioned above, within four (04) working days after the conclusion of the activity and/or the service commission trip. In the event that the deposit is not made within the established time, the respective discounts shall be made in a manner similar to that stipulated in paragraph d) above.

f. Refunds will only be accepted for additional days of commission authorized by the EXECUTOR.

g. In the event that any of the items exceeds the approved budget, it must be duly supported, with a report, by the Commissioner and authorized by the aforementioned official, as appropriate.

C. Purchase of Travel Tickets: a. In the case of terrestrial tickets and local air tickets of the Executor / area (plane),

these should be acquired by the server commissioned. b. National air tickets will be acquired through the Administration of the EXECUTOR or

PROFONANPE, as agreed in the Interinstitutional Cooperation Agreement, sending a copy of the ticket purchase requests to the Administration and Finance Direction of PROFONANPE. The boarding passes should be delivered together with the rendering of accounts, within four (04) days after the completion of the official travel service.

D. Supplementary Provisions a. In exceptional cases in which expenses are incurred for amounts greater than those

authorized / delivered, only those corresponding to additional days and authorized by the EXECUTOR and transportation expenses will be recognized, provided that

they are duly supported with payment vouchers in the name of PROFONANPE and a report supporting the reasons for which more than the approved was executed. The request for reimbursement of these expenses will be formulated through the "Payment Order" in the SIGA - PROFONANPE.

b. Invoices/payment vouchers must be issued to PROFONANPE, RUC: 20261430470.

Cases not foreseen in these guidelines will be resolved by the Executive Director of PROFONANPE.

VII. GUIDELINES AND PROCEDURES FOR THE APPROVAL AND EVALUATION PROCESS OF THE AOP AND AAP.

VII.1 PREPARATION AND APPROVAL OF THE ANNUAL OPERATIONAL PLAN (AOP)

i. Annually, the EXECUTOR with the support of the MANAGER if it were the case, will prepare the AOP that includes the annual budget of the PROJECT and, in coordination with PROFONANPE, will elaborate the Acquisitions Plan (AP).

ii. The annual AOP and AP will be presented by the EXECUTOR to PROFONANPE, in October each year, so that PROFONANPE can send it to the Board of Directors and to the DONOR, no later than October 30 of each annual fiscal year.

iii. The formats for the presentation of the AOP and AP are attached hereto as an important reference for its preparation. With respect to the AP18, this management tool is required by the cooperating sources for the approval of the AOP.

iv. The AOP formats include the monthly and quarterly programming in order to foresee the allocation of resources and be able to carry out the corresponding evaluations and monitoring.

v. PROFONANPE will communicate annually the exchange rate to be used as a reference for the preparation of the AOP.

vi. After the AOP has the approval of PROFONANPE's Board of Directors it will proceed to register in the annual SIGA PROFONANPE, the AOP and AAP presented by the EXECUTOR.

vii. It is recommended that the AOP propose activities that can actually be executed in that year, so as not to unnecessarily increase the budget and later observe little execution capacity.

VII.2 AOP EVALUATION

a. THE MANAGER, in coordination with the EXECUTOR, shall submit progress reports to PROFONANPE 20 days after the end of each quarter (financial and programmatic aspects) or extraordinary or special reports that may be required, which should be prepared, including Formats "E" in said report. These reports will be previously coordinated by the MANAGER-EXECUTOR.

b. THE MANAGER, in coordination with the EXECUTOR, shall present to PROFONANPE together with the physical-financial Report of the quarter the Evaluation of the

18 See Lis 7 (AOP and APP formats)

Acquisitions Plan. The financial information for the preparation of the Quarterly and Annual Physical Financial Report will be obtained from the SIGA "Module OFITPRES: Company Reports / PROFONANPE Options / Annual Evaluation Follow-up of the AOP and Quarterly Evaluation Follow-up of the AOP.”

c. This process contemplates the processes of review of the progress of the physical and financial goals programmed for each Project, as well as the follow-up of the annual AOP. Likewise, as a result of the quarterly and/or six-monthly evaluation and revision of the AOP, the corresponding budgetary modifications are produced as a proposal.

d. The process of monitoring and evaluation of a project generates information on the results and impacts, which, with the follow-up, ensure the adequate execution of the projects, improve transparency in decision making, support and document learning and optimize the processes by the actors involved: protected natural areas, national authority, project management and PROFONANPE, in addition to the beneficiaries.

e. The follow-up information collected will mainly serve these purposes: (i) present alerts and (ii) refine the development of the Projects allowing corrections to be made in time, (iii) programme the necessary resources for the next periods, (iv) carry out reprogramming, if necessary, among others.

f. Each Project should have its Logical Framework and a matrix of results and impact indicators which will be evaluated at least every quarter.

g. PROFONANPE will record in the SIGA Budget Module the Quarterly Physical Progress Reports submitted by the EXECUTORS in coordination with the MANAGER.

h. PROFONANPE will summon the MANAGER and/or those responsible to at least 2 meetings a year to evaluate the activities carried out. The results of these meetings will serve to correct or strengthen the actions of the AOP.

i. PROFONANPE will provide the EXECUTORS through the OFITES and OFIPRES Modules of the SIGA PROFONANPE with monthly, quarterly and annual reports on the execution of the expenditure and budget of the Project/Programme. Definitive information on expenses may be obtained eight days following the end of each month.

j. At the same time, the Managers in coordination with the EXECUTORS will present each semester a report that will include at least: (i) a qualitative and quantitative detail of the most outstanding actions carried out in relation to the achievement of the results and objectives of the Project; (ii) the progress made in relation to the defined indicators; (iii) an evaluation of the problems, limitations and matters derived from the implementation or execution of the Project; (iv) updated implementation and projection of disbursements for the next semester; (v) lessons learned; and, (vi) state of compliance with the Grant Agreement.

k. Within 30 days after each semester of the year, the semiannual report and the annual CD must be submitted to the Donor, detailing the achievements in relation to the Logical Framework indicators. Budget execution, constraints encountered and lessons learned should also be detailed.

VII.3 BUDGETARY MODIFICATIONS

One of the conclusions to be drawn from the evaluation and follow-up reports is whether a budget modification is required for the Project/Programme.

Depending on the need and proposed approach, the approval of a budget modification requires the following procedures:

(i) The approval of the Boards of Administration of each Project is required:

If the modifications of the Budget imply:

• Expansion of the initial amount budgeted • Transfer between Programmes

(ii) Donor Approval is required:

If Budget modifications imply:

• Expansion of the initial amount budgeted for the Project.

(iii) Only the approval of the PROFONANPE’s ED is required.

If changes to the Budget involve:

• Transfer between Subprogrammes • Transfer between activities

The reprogramming of the AOP will be carried out mainly on the following dates:

1. In the month of March, it will include the balances corresponding to the budget of the previous year, which are committed and not executed.

2. In the month of July, after the evaluation of the first semester for corrections in the execution of the AOP, in this case the reprogramming proposal must have the approval of the Project Management Board or the equivalent instance.

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