H.E. Romuald Wadagni Minister of Economy and Finance Ministry of Economy and Finance Cotonou, Republic of Benin Republic of Benin: Credit Number 6663-BJ Agricultural Competitiveness and Export Diversification Project Additional Instructions: Disbursement and Financial Information Letter Excellency: I refer to the Financing Agreement between the Republic of Benin (the "Recipient") and the International Development Association (the "Association") fo r the above-referenced Project. The General Conditions, as defined in the Financing Agreement, provide that the Recipient may from time-to-time request withdrawals of Credit amounts from the Credit Accounts 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. I. Dis bursement Arrangements, Withdrawal of Credit Funds, and Reporting of Uses of Credit Funds. The Disbursement Guidelines for investment Project Financing dated February 2017, ("Disbursement Guidelines") are avai lable in the Bank's publ ic 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 this Disbursement and Financial Reporting Letter, and the manner in which the provisions in the guidelines apply to the Loan is specified below. (i) Disbursement Arrangem ents • General Provisions (Schedule 1). The table in Schedule I sets out the disbursement methods which may be used by the Recipient, 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 Account1. (ii) Electronic Delivery. Section 11.0 1 (c) of the General Conditions. The Recipient wi ll deliver Withdrawal Applications (with supporting documents) electronically through the Association's web-based portal "Client Connection" at https://cl ientconnection. worldbank.org. This option will be effected 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 -2- (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. (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. Ill. 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 Credit, 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, Atou Seek Country Manager for the Republic of Benin Africa Region A ttachments I. Form of Statement of Expenditure (SOE) 2. Form of Customized Statement of Expenditures -) - Schedule I Disbursement Arraneemcnts ......,.,!"Jlllllo• Country Reoublic of Benin Secuon Ill 8 .2 of Schedule Borrower C los ing Date Credit Reoublic of Benin 2 10 the Loan Amement. 6663-BJ Agricultural Competitiveness and Disbursement Number Four months after the Name of the Project Export Divers11ica1ion ProJCCt Deadline Date closing dale. Subsecllon 3. 7 • • Dlsbunement Methods and Sunnortln2 Doc umentation Disbursement Methods Suppo rting Docu mentation Methods Section 2 ( * *) Subsections 4.3 and 4. 4 ( ** ) Direcl Pavment Copy of records Yes Yes .Statement of Expenditures m the fom1at provided m Attachment I of this Leiter for expenditures Reimbursement . undercategones I & 2 of the withdra"al schedule of the F,nancmg Agreement Customized Statement of Expenditures m the format provided m Attachment 2 of this Lener for Yes .exnendnures under catc11.oncs 3 4 & 5 of the w1thdrawal schedule of the Fmancm11. A11.reement Statement of Expenditures m the format provided m Attachment I of this Letter for expenditures Designaled Account .under categones I & 2 of the" 11hdra" al schedule of the Fmancmg Agreement Custorruzed Statement of fapend1turcs m the format provided m Attachment 2 of this Lener for cxoend1tures under catcRones 3 4 & 5 of the "ithdrawal schedule of the Fmancmo Aitreement Special Commitments Yes Copy of Letter of Credi! l>flilmated Account (Sections 5 and 6 ..) Segregated Type DA-A for Category I. DA-B for Category 2 and 3. Fixed for DA-/\ and DA-8 Ceiling DA-C for Category 4 and D/\-D for Category 5 Variable for DA-C and DA-D Fhra11c/al fllstitutio11 - BCE/\0 Curren cy CFA F Name CFA F I billion for DA-A and CFAF I Frequen cy of Reporting Monthly for D/\-A and DA-B billion for DA-8 Subsedion 6.3 (**) Quarterly for DA-C and DA-D Am ount Forecast for two (2) quarters as provided in the IFR for DA-C and DA-D Minimum Value of Annlications lsubwction J_ 'fl The mmimum value ofaoolicauons for Rctmbursement, Direct Pannent and SocciaJ Comm,anent is FCFA JOO million. Aatllorizied Sip1tura (Subsecuon 3. J and 3. 2 ••) The form for Authori:ed Stgnatones letter is provided in Anacmwnl J ofthis letter Wlt/11/rrnval and Doc11mellllldon ,.nnl/cotlons (Subsection J.3 and J 4 ..) (/) Authorized Signatures (subsect/011 3.1). Appl ications for th is Financing will be signed by the offi cial(s) authorized to sign Applications for the Rcoublic of Benin. -4- (ii) Applications (subsections J.1- J.J) All Wuhdrawal Apphcauons and their )upponmg documentauon shall be electronically submitted ,,a the Assoc1aaon's web-based Ponal ··Chcnt Connecuon··. AddJtloeal IM1banemtnt la1tnttloa1 ~unds from the Designated Account ma} be transferred to a ProJect Account opened in a commercial bank acceptable to the Banl to meet ehgible e,pen"id COHrf