Tahseen Sayed Director, Caribbean Latin America and the Caribbean Region July 28, 2020 The Honourable Allen M. Chastanet Prime Minister and Minister of Finance, Economic Growth, Job Creation, and External Affairs Office of the Prime Minister 5th Floor, Greaham Louisy Administrative Building Waterfront, Castries Saint Lucia Dear Prime Minister: Re: IDA Credit 6682-LC (SAINT LUCIA – Caribbean Digital Transformation Project) Additional Instructions: Disbursement and Financial Information Letter I refer to the Financing Agreement between Saint Lucia (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 Credit amounts from the Credit 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 Credit Funds, and Reporting of Uses of Credit 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 Credit 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. (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 (https://clientconnection.worldbank.org) “Client Connection”. This option may be effected if the 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 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 form. 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 semester, interim unaudited financial reports (“IFR”) for the Project covering the semester. (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 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, please contact the Association by email at clientconnection@worldbank.org. If you have any queries in relation to the above, please contact Jose Janeiro, Senior Finance Officer at jjaneiro@worlbank.org, with copy to Lelia Werner, Finance Analyst at lwerner@worldbank.org using the above reference. Sincerely, Tahseen Sayed Attachments 1. Authorized Signatory Letter Form 2. Interim unaudited Financial Report (IFR) Schedule 1: Disbursement Provisions Basic Information Country Saint Lucia Closing Date Section III.B.2. of Schedule 2 to the Recipient Saint Lucia Financing Agreement. Credit Name of the Project Caribbean Digital Transformation Disbursement Four months after the closing date. Number Project Deadline Date 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 Interim unaudited Financial Report (IFR), including a list of payments against contract for which the Bank’s prior review is required, in the format provided in Attachment 2 of the DFIL Designated Account Yes Interim unaudited Financial Report (IFR), including a list of payments against contract for which the Bank’s prior review is required, in the format provided in Attachment 2 of the DFIL Special Commitments No Not applicable Designated Account (Sections 5 and 6 **) Type Segregated Ceiling Variable Financial Institution - Bank of Saint Lucia USD Currency Name Frequency of Reporting Semi-annual Twelve month cash flow forecast as per Amount Subsection 6.3 (**) the semi-annual IFRs Minimum Value of Applications (subsection 3.5) The minimum value of applications for Direct Payment is USD 200,000 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 **) Authorized Signatures: A 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: The World Bank 1818 H Street, N.W. Washington, DC 20433, USA Attention: Ms. Tahseen Sayed, Country Director Applications: Completed Applications for withdrawal, together with supporting documents, should be provided through the Assoc iation’s Client Connection, web-based portal, following the instructions for electronic delivery. In the case the Recipient does not have internet access, the Association may permit the delivery of Applications for withdrawal, together with supporting documents, to the following address: Banco Mundial SCN Quadra 02, Lote A Ed. Corporate Financial Center, 7º andar 70712-900, Brasília, D.F. – Brazil Attention: Loan Operations Additional Information/Instructions Not Applicable Other Not Applicable ** Sections and subsections relate to the “Disbursement Guidelines for Investment Project Financing”, dated February 2017. 4 [Attachment 1 – Form of Authorized Signatory Letter] 11/ [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][Credit]1 No. _______-___ ([Name of the project]) Attention: _______________________, Country Director I refer to the [Grant] [Credit] Agreement (“Agreement”) between the International Development Association (the “Association”)[, acting as implementing of the ]2 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 3[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, 4[each] of the persons whose authenticated specimen signatures appears below is authorized on behalf of the Recipient, acting 5[individually] 6[jointly], to deliver Applications, and evidence in support thereof on the terms and conditions specified by the Association. 1 Instruction to the Recipient: use “Credit” or “Grant” as applicable. Please delete this footnote in final letter that is sent to the Associations. 2 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 3 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. 4 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. 5 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. 6 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. 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 / ______________ 6 Attachment 2 - Interim unaudited Financial Statements Name/Number of Project Sources and Uses of Funds For the Period Ending Current Period Cumulative Forecast RECEIPTS Actual Budgeted Variance Actual Budgeted Variance Next 6 Months World Bank Advance Reimbursement Direct Payment Total Receipts (A) - - - - - - - LESS EXPENDITURES Component 1 Component 2 Component 3 Component4 Total Expenditures (B) - - - - - - - RECEIPTS LESS EXPENDITURES ' - Net Change in Cash (A - B} - Foreign Exchange Adjustment CASH BALANCES Opening Cash Balances Designated Account - Project Account - Total Opening Balance - Closing Cash Balances Designated Account Project Account Total Closing Balance - Name/Number of Project Use of Funds by Project Components For the Period Ending Current Period Cumulative Forecast Actual Budgeted Variance Actual Budgeted Variance Next 6 Months Component 1 : - Component 2 Component 3 Component 4 Total - - - - - - 8 Name/Number of Project Use of Funds by Disbursement Categories For the Period Ending Categories Current Period Cumulative - Amount per Actual Amount per IFR Client Difference Comments Total Allocation per Connection legal agreements 1. Consultants 2. Training and Workshops 3. Audits Total - - - - - - DESIGNATED ACCOUNT RECONCILIATION STATEMENT LOAN/CREDIT /PPF /COFI NANCI ER NUMBER ACCOUNT NUMBER WITH (BANK) US$ 1 TOTAL ADVANCED BY WOR~D BANK (OR COFINANCIER) 2 LESS: TOTAL AMOUNT DOCUMENTED BY WORLD BANK - 3 PRESENT OUTSTANDING AMOUNT ADVANCED TO THE DESIGNATED ACCOUNT {1- 2) - 4 BALANCE OF DESIGNATED ACCOUNT & PROJECT ACCOUNT PER ATTACHED BANK RECONCILIATION AS OF DATE 5 PLUS: TOTAL AMOUNT TO BE DOCUMENTED IN THIS APPLICATION NO. 6 PLUS: TOTAL AMOUNT WITHDRAWN AND NOT YET DOCUMENTED REASON: 7 PLUS: AMOUNTS CLAIMED IN PREVIOUS APPLICATIONS NOT YET CREDITED AT DATE OF BANK STATEMENTS APPLICATION NO. WA#XXX WA#XX SUBTOTAL OF PREVIOUS APPLICATIONS NOT YET CREDITED 8 LESS: INTEREST EARNED 9 TOTAL ADVANCE ACCOUNTED FOR (NO. 4 THROUGH NO. 9) - 10 DIFFERENCE (3 - 9) - 11 EXPLANATION OF ANY DIFFERENCE SHOWN IN LINE 10: DATE: SIGNATURE: TITLE: - a - 10 Name/Number of Project Cash Forecast For the Period Ending US$ Eligible Expenditures to be financed by the World Bank for the Next 6 Months - Less Direct payments to be made by the World Bank - Eligible Expenditures to be financed by the World Bank from the Designated Accounts - Less: Current Balance in the Designated Account - Current Balance in the Project Account Total Current Balance - - Amount Requested to be Advanced to Designated Account - - Attachment [SJ Payments Made during Reporting Period Against Contracts Subject to the Bank's Prior Review Date of Amount WB's Date of Amount Share of Contract Contract Contract WB'sNon Paid to Amt Paid Supplier Objection Supplier to Supplier to during during Contract Period during Number Date Amount Period I II' I 12