Ousmane Dione Country Director for Eritrea, Ethiopia, South Sudan and Sudan Tel: (251 11) 5176000 Eastern and Southern Africa Region Fax: (251 11) 6627717 July 27, 2022 Hon. Agak Achuil Lual Minister of Finance and Planning Ministry of Finance and Planning Juba, Republic of South Sudan Re: IDA Grant D980-SS (South Sudan Enhancing Community Resilience And Local Governance Project Phase II) Additional Instructions: First Restatement of the Disbursement and Financial Information Letter Honorable Minister: I refer to the Financing Agreement between Republic of South Sudan (the “Recipient”) and the International Development Association (the “Association”) for the above-referenced Project, dated April 5, 2022. The General Conditions, as defined in the Financing Agreement, provide that the Recipient may from time-to-time request withdrawals of Grant amounts from the Grant Account in accordance with the Disbursement and Financial Information Letter, and such additional instructions as the Association may specify from time to time by notice to the Recipient. The General Conditions also provide that the Disbursement and Financial Information Letter may set out Project specific financial reporting requirements. This letter constitutes such Disbursement and Financial Information Letter (“DFIL”) and may be revised from time to time. The purpose of this restatement is to amend Schedule 1- Disbursement Provisions- Designated Account: to add the UN Advance account that will be run by IOM and link the withdrawal categories to the DA and UN Advance accounts. All other provisions and attachments of the “Additional Instructions: Disbursement” dated June 9, 2021, except as amended, shall remain in force and effect. I. Disbursement Arrangements, Withdrawal of Grant Funds, and Reporting of Uses of Grant Funds. The Disbursement Guidelines for Investment Project Financing, dated February 2017, (“Disbursement Guidelines”) are available in the Association’s public website at https://www.worldbank.org and its secure website “Client Connection” at https://clientconnection.worldbank.org. The Disbursement Guidelines are an integral part of the DFIL, and the manner in which the provisions in the guidelines apply to the Grant is specified below. (i) Disbursement Arrangements • General Provisions (Schedule 1). The table in Schedule 1 sets out the disbursement methods which may be used by the Recipient, and conditions, information on registration of authorized signatures, processing of withdrawal applications (including minimum value of applications and processing of advances), instructions on supporting documentation, and frequency of reporting on the Designated Account. • Special Provision. Projects in situations of urgent need of assistance or capacity constraints: Disbursements under contracts for goods, works, non-consulting services and consulting services procured or selected through international open or limited competition or Direct Selection, as set out in the procurement plan, must be made only through Direct Payment and/or Special Commitment disbursement methods. (ii) Electronic Delivery. Section 11.01 (c) of the General Conditions. The Recipient will deliver Withdrawal Applications (with supporting documents) electronically through the Association’s web-based portal “Client Connection” at https://clientconnection.worldbank.org. This option will be affected after the officials designated in writing by the Recipient who are authorized to sign and deliver Withdrawal Applications have registered as users of “Client Connection”. The designated officials will deliver Applications electronically by completing the Form 2380, which is accessible through “Client Connection”. By signing the Authorized Signatory Letter, the Recipient confirms that it is authorizing such persons to accept Secure Identification Credentials (SIDC) and to deliver the Applications and supporting documents to the Association by electronic means. The Recipient may exercise the option of preparing and delivering Withdrawal Applications in paper form on exceptional cases (including those where the Borrower encounters legal limitations), and which were previously agreed with the Association. By designating officials to use SIDC and by choosing to deliver the Applications electronically, the Recipient 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, available in the Association's public website at https://worldbank.org and “Client Connection”; and (b) to cause such official to abide by those terms and conditions. II. Financial Reports and Audits. (i) Financial Reports. The Recipient must prepare and furnish to the Association not later than forty-five (45) days after the end of each calendar quarter, interim unaudited financial reports (“IFR”) for the Project covering the quarter. Where a UN agency is contracted by the Recipient, the Recipient is responsible to ensure that the financial reporting requirements applicable to the UN Agency are stipulated in the agreement between the Recipient and the UN agency and met in a timely manner. (ii) Audits. Each audit of the Financial Statements must cover the period of one fiscal year of the Recipient, commencing with the fiscal year in which the first withdrawal was made. The audited Financial Statements for each such period must be furnished to the Association not later than six (6) months after the end of such period. Where a UN agency is contracted by the Recipient, the Recipient is responsible to ensure that the documentation requirements applicable to the UN agency, for project audit purposes, are stipulated in the agreement between the Recipient and the UN agency. III. Other Information. For additional information on disbursement arrangements, please refer to the Loan Handbook available on the Association’s website (http://www.worldbank.org/) and “Client Connection”. The Association recommends that you register as a user of “Client Connection”. From this website you will be able to prepare and deliver Applications, monitor the near real-time status of the Grant, and retrieve related policy, financial, and procurement information. For more information about the website and registration arrangements, or if you have any queries in relation to the above, please contact the Association by email at AskLoans@WorldBank.org using the above reference. Yours sincerely, ______________________________ Ousmane Dione Country Director for Eritrea, Ethiopia, Sudan, and South Sudan Eastern Africa Region Attachments 1. Form of Authorized Signatory Letter 2. Statement of Expenditure (SOE) Schedule 1 : Disbursement Provisions Basic Information Country Republic of South Sudan Closing Date Section III.B.2. of Schedule 2 to the Recipient Ministry of Finance and Economic Financing Agreement. Grant IDA Planning Number D980-SS Name of the Project South Sudan Enhancing Community Disbursement Four months after the closing date. Resilience And Local Governance Deadline Date Project Phase II Subsection 3.7 ** Disbursement Methods and Supporting Documentation Disbursement Methods Methods Supporting Documentation Section 2 (**) Subsections 4.3 and 4.4 (**) Direct Payment Yes Copy of records Reimbursement Yes Statement of Expenditure (SOE) in the format provided in Attachment 2 of the DFIL Advance (into a Designated Yes Statement of Expenditure (SOE) in the format provided in Attachment 2 of the DFIL (for PMU) Account) Special Commitments Yes Copy of Letter of Credit Designated Account (Sections 5 and 6 **) Segregated DA A-Fixed DA A-Managed by MoFP (linked to categories 2(b), 3 and 4) Type Ceiling UN-Advance Account-Variable UN-Advance Account-Managed by IOM (linked to categories 1 and 2(a)) Financial Institution - To be established at a financial institution acceptable to the Currency Name Association USD DA A- 100,000 Frequency of Reporting At least quarterly Amount Subsection 6.3 (**) UN-Advance-Based on approved budget and deliverables in line with the payment schedule Minimum Value of Applications (subsection 3.5) The minimum value of applications for Reimbursement, Direct Payment and Special Commitment is USD 5,000 equivalent. Authorized Signatures (Subsection 3.1 and 3.2 **) The form for Authorized Signatories Letter is provided in Attachment 1 of this letter Withdrawal and Documentation Applications (Subsection 3.3 and 3.4 **) i) Authorized Signatures &(ii) Applications An authorized signatory letter in the Form attached (Attachment 2) should be furnished to the Association at the address indicated below providing the name(s) and specimen signature(s) of the official(s) authorized to sign Applications. Please provide completed and signed (a) applications for withdrawal, together with supporting documents, and (b) applications for special commitments, together with a copy of the commercial bank letter of credit, to the address indicated below: The World Bank, Loan Operation and Trust Funds Department, Delta Center, 13th Floor, Menengai Road, Upper Hill, Nairobi, Kenya. Contact Telephone number: +254 20 2936 000. Additional Information In case of category 1 and 2(a) of the table under Schedule 2 Section III.A (“Withdrawal Table”) of the Financing Agreement, payments to UN Agencies (if any) may be made through UN Advances (with or without a UN Commitment) disbursement mechanism. In case of a contract with a UN Agency requiring a UN Commitment, an application for issuance of UN Commitment is to be submitted by the Recipient/Borrower. Subsequent payments and documentation of expenditures under the contract must be made in accordance with the Commitment letter to be issued by the Association and the contract between the Borrower/Recipient and the UN agency. In case of a UN Advance (without UN Commitment), documentation of expenditure should be made once the final invoice is issued and based on the UN Financial Report. Other South Sudan portfolio currently has 2 lapsed loans due to ineligible expenditures, hence the use of Advance method of disbursement to DA A (PMU) will not be permitted until an agreement is reached and shared with the World Bank on the payments of the refund by installments. ** Sections and subsections relate to the “Disbursement Guidelines for Investment Project Financing ”, dated February 2017. [Attachment 1 – Form of Authorized Signatory Letter] [Letterhead] Ministry of Finance [Street address] [City] [Country] [DATE] International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Re: Grant No. _______-___ (South Sudan Enhancing Community Resilience And Local Governance Project Phase II) Attention: _______________________, Country Director I refer to the Financing Agreement (“Agreement”) between the International Development Association (the “Association”)[, acting as implementing of the ]1 and [name of recipient] (the “Recipient”), dated _______, providing the above Grant. For the purposes of Section 2.03 of the General Conditions as defined in the Agreement, any 2[one] of the persons whose authenticated specimen signatures appear below is authorized on behalf of the Recipient to sign applications for withdrawal [and applications for a special commitment] under this Grant. For the purpose of delivering Applications to the Association, including by electronic means, 3[each] of the persons whose authenticated specimen signatures appears below is authorized on behalf of the Recipient, acting 4[individually] 5[jointly], to deliver Applications, and evidence in support thereof on the terms and conditions specified by the Association. This confirms that the Recipient is authorizing such persons to accept Secure Identification Credentials (SIDC) and to deliver the Applications and supporting documents to the Association by electronic means. In full recognition that the Association shall rely upon such representations 1 Instruction to the Recipient: add text in line with the Grant Agreement if applicable; if not applicable delete it. Please delete this footnote in final letter that is sent to the Associations 2 Instruction to the Recipient: stipulate if more than one person needs to sign Applications, and how many or which positions, and if any thresholds apply. Please delete this footnote in final letter that is sent to the Association. 3 Instruction to the Recipient: stipulate if more than one person needs to jointly sign Applications, if so, please indicate the actual number. Please delete this footnote in final letter that is sent to the Association. 4 Instruction to the Recipient: use this bracket if any one of the authorized persons may sign; if this is not applicable, please delete. Please delete this footnote in final letter that is sent to the Association. 5 Instruction to the Recipient: use this bracket only if several individuals must jointly sign each Application; if this is not applicable, please delete. Please delete this footnote in final letter that is sent to the Association. and warranties, including without limitation, the representations and warranties contained in 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 SIDC”), the Recipient represents and warrants to the Association that it will cause such persons to abide by those terms and conditions. This Authorization replaces and supersedes any Authorization currently in the Association records with respect to this Agreement. [Name], [position] Specimen Signature: ____________________ [Name], [position] Specimen Signature: ____________________ [Name], [position] Specimen Signature: ____________________ Yours truly, / signed / ______________ Attachment 2 – Statement of Expenditure (SOE) SOE Model Template (incl. listing of prior review payments) IBRD – International Bank for Reconstruction and Development/IDA – International Development Association Statement of Expenditures Financier Payment made during the to Loan/Credit/Grant period from # Application # The following expenditures have been incurred during the retroactive Yes No Category # financing period (please tick) The following expenditures have been incurred before the closing date Yes No Page # of the loan/credit/grant (please tick) ONLY for the Designated Account 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Ite Suppli Brief Prior Contr Contra Invoi Date Total % Eligi Excha Date of Amoun m er’s Descrip Review act # ct ce of Amoun Finan ble nge Withdr t No Name tion of (Contr Curren Num Paym t of ced Amo Rate awal Withdr the act?) (Client cy and ber ent Invoice from unt from awn Expend Conne Amoun Covere the the from iture (YES or ction # t d by Bank (Col Design the NO) for Applic 9x ated Design Prior (Origin ation 10) Accoun ated Review al + t Accoun Contra Amend (Net of t cts) ment) Retenti on) (Col 11/12) 0.00 0.00 TOTAL 0.00 Supporting documents for this SOE are retained at (insert location) A separate form should be used for each category.