OFFICIAL DOCUMENTS THE WORLD BANK IBRD* IDA I WORLD BANKGROUP Date: H.E. Abdirahman Duale Beileh D Minister of Finance Ministry of Finance Shanganni District Mogadishu, Somalia Re: IDA Grant D510-SO (Shock Responsive Safety Net for Human Capital Project) Additional Instructions: Disbursement and Financial Information Letter. Excellency: I refer to the Financing Agreement between Federal Republic of Somalia (the "Recipient") and the International Development Association (the "Association") for 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 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. 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.or. 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 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 Account. * Special Provision. 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 Association may permit the Recipient to electronically deliver applications (with supporting documents) through the Association's web-based portal (httos://clientconnection.worldbank.org) "Client Connection". This option may be effected if ie officials designated in writing by the Recipient who are authorized to sign and deliver Applications have registered as users of "Client Connection". The designated officials may 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 THE WORLD BANK IBRD*IDA I WORLDBANKGROUP 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 continue to exercise the option of preparing and delivering Applications in paper fonn. The Association reserves the right and may, in its sole discretion, temporarily or permanently disallow the electronic delivery of Applications by the Recipient. 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. 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 Bank 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 Bank by email at askloans(Aworldbank.org. Yours sincerely, Paolo Belli Acting Country Director Kenya, Rwanda, Somalia, Uganda Africa Region THE WORLD BANK 1 IBRDIDA I WORLDBANKGROUP Attachments 1. Form of Authorized Signatory Letter 2. Statement of Expenditure (SOE) Schedule I Disbursement Provisions Country Federal Republic of Somalia Closing Date August 31, 2022. Grant Recipient Federal Republic of Somalia ClosgeDat Aut Number D510-SO Shock Responsive Safety Net for Disbursement Name of the Project Human Capital Project Deadline Date Four months after the closing date. Subsection 3.7 ** 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 Yes Statement of Expenditure (SOE) in the format provided in Attachment 2 of the DFIL Spcial Commitments Yes CopX of Letter of Credit Tvpe Segregated and Managed by FGS Ceiling Fixed Financial Institudeon - Namne DA-1 -to held at Central Bank of Somalia Currency USD Frequencg, of Reporting A es otl mut D- S .0,0 Subsection 6.3f*)AlesMotlAmut D-US 10000 The minimum value of applications for Reimbursement Direct Payment and Special Commitment is USD 10,000.00 equivalent. Address for ASL* The World Bank Office Address for applications: The World Bank Office Delta Center, 15 Floor Delta Center, 13 Floor Menengai Road, Upper Hill Menengai Road, Upper Hill Nairobi, Kenya Nairobi, Kenya Attention: Carlos Felipe Jaramillo Attention: WFA Financial Operations Country Director for Somalia Tel: +0254 20 293 6000 *Applications for this Financing will be signed by the officials authorized to sign Applications as indicated in your letter of August 15, 2018 signed by the Minister of Finance, Dr. Abdirahman D. Beileh Transfers from the Designated Account to a project account may occur as necessary for project implementation. Designated Account DA-1 will be linked to Category 4 UN-1 Advance to WFP - MoU or Contract to be signed for the implementation of Category I and 2. submission of quarterly reports in the format agreed with World Bank UN-2 Advance for UNICEF - MoU or Contract to be signed for implementation of Category 3, submission of quarterly reports in the format agreed with World Bank ** Sections and subsections relate to the "Disbursement Guidelines for Investment Project Financing ", dated Februaiy 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. D510-SO (Shock Responsive Safety Net for Human Capital Project) Attention: Country Director I refer to the Financing Agreement ("Agreement") between the International Development Association (the "Association")[, acting as implementing of the ]I and [name of recipient] (the "Recipient"), dated - providing the above [Grant] [Credit]. 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] [Credit]. 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 Authorization replaces and supersedes any Authorization currently in the Association records with respect to this Agreement. 'Instruction to the Recipient: add text in line with the Financing 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. 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. s Instruction to the Recipient: use this bracket only if several individuals mustjointly sign each Application; if this is not applicable, please delete. Please delete this footnote in final letter that is sent to the Association. 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