A~ ~ A11 I TTPO09c D 9 The World Bank 8 H Street N, (202) 473-1000 INTERNATIONQ1 BANK FOR RECONSTRUCTION AND DEVELOI'MENT Washitp, W 20433 Cable Address: INTBAFRAD INTERNATIONMOd DEVELOPMENT ASSOCIATION Cable Address: INDEVAS d A._L.0 ,2013 His Excellency Minister of Finance and Budget Ministry of Finance ar.d Budg(t B]P. 61 Antananarivo 101 Madagascar Es cellency: Re: Grant No. TF0V2018-M AG (Madagascar - Financial Services Project) Addil iona I Instructions: Disbursement I refer to the Agreeir ent Pro-iding for the Amendment and Restatement of the Africa Catalytic Growth Fund Agree nert of even date herewith between the International Development Association (the "Association") acting as administrator of the Africa Catalytic Growth Fund and Republic of Madagascar (the 'Recipient") for the above-referenced Project. The amended Grant Agreement ("Grant A greemei t") proN ides that the Association may issue additional instructions regarding the withdrawal of thc prc ceeds of Grant TF092098-MAG ("Grant"). This letter ("Disbursement Letter"), as re vised from time to time, constitutes the additional instructions. This Disbursement Letter supersed,.s any p evious Disbursement Letter related to this Grant. The attached World Bat k D sbursement Guidelines for Projects, dated May 1, 2006, ("'Disbursement Guidelines") (A.tach-nent 1), are an integral part of the Disbursement Letter. The manner in which the provision; in the Disbursement Guidelines apply to the Grant is specified below. Sections and subsec ions in parentheses below refer to the relevant sections and subsections in the Disbursermient GL idelines and, unless otherwise defined in this letter, the capitalized terms used have the n eani igs ascribed to them in the Disbursement Guidelines. 1. Disbursement Arrangembnt, (i) Disbursement Methods (setin 2,. The following Disbursement Methods may be used under the Grant: * Advance * Reimbursement * Direct Pay-nent * Special Commitme nt 1ii) Disbursement Deadline Date (su section 3.7). The Disbursement Deadline Date is 4 months after the Closing Date specified n th( Grant Agreement. Any changes to this date will be notified by the Association. (iii) Disbursement Conditions (rubsi ction 3.8). Please refer to the Disbursement Condition(s) in Cie Grant Agreement. 11 Withdrawal of Grant Pro -ee Is (i) Authorized Signatures (sul section 3.1). A letter in the Form attached (Attachment 2) should be furnished to the Associat on at t ie address indicated below providing the name(s) and specimen signature(s) 3f the of Fici il(s) iuthorized to sign Applications: Banqt e Mond ale Rue A ndriami idy L. Razafimanantsoa Anos) (pies diu Ministre des Affaires Etrangres) Antanana-ivo 101, Madagascar Atten ion Ha eh Z. Bridi (i, Applications (subvections 3.2 - 3. 1). Please provide completed and signed: (a) applications for withdrawal, tog rther NNith sup porting documents, and (b) applications for special commitments, together with a copy of the commercial bank letter of credit, to the address indicated below: 4 Fric ker Roa I IFC Euilding ILLOVO 219, Johar nes burg South Africa Atteni:ior: Re gional Processing Center, Loan Department, World Bank (id) Minimum Value ofAppdicaj ions (subsection 3.5). ). The Minimum Value of Applications is 20% of the amount advance d tc the Designated Account. (iv) Advances (secti6ns 5 and 6) * Type of Deyignate4 Accou t (subsection 5.3): Segregated * Currency tf DesigiiiatE dAt count (subsection 5.4): United States Dollars * Financial Instituti ns at n hrich the Designated Account Will Be Opened (subsection 5.5): (CA-BNI Ma dagasiki ra. * Ceilings (subsectik n 6.1): Forecast for 2 quarters as provided in the quarterly Interim Financial Report fc r el gibl expenditures. III. Reporting on Use of Gr int Prot eeds (i) Supporting Documentati on Isecton 4). Supporting documentation should be provided with each application for withdrawal as sel out below: * For requests for Reitibur iement and for reporting eligible expenditures paid from the DesignatedAc!-oufist: o Interim Fin ancial F eport in the form attached (Attachment 3) * For requeits for Lireet Pa vment: records evidencing eligible expenditures, e.g., copies of receipts, supplier invoic s. (ii) Frequency of Reporting Eligib'e Expenditures Paid from the Designated Account (sabsection 6.3): The period ;et )ut i i the Grant Agreement for provision of Interim Financial Rc)orts. IV Other Important I nformaitioi For additional infor nat on on disbursement arrangements, please refer to the D :bursement Hanc.book availab e on the Association's public website at htt:://www.worldbank.org and its secure website "Client Connection" at htto://clientconnectionworldba nk.:rg. Printed copies are available upon request. From the Client Connection w,:bsite, you will be able to download Applications, monitor the near real-time status of tie Gran, and retrieve related policy, financial, and procurement information. If you have any queri,.s ii rel ition to the above, please contact Suzanne Morris, Senior Finance Officer at using the above reference. Yo s sin erely, Hal Z. Bridi Couitry Dir ctor, Madagascar Africa Region Attachments 1. World Bank Disburse net t Gh idelines for Projects, dated May 1, 2006 2. Form for Authorized ;ignatur es 3. Form of Interim Finai ncia I Report -p- - - - - --e .. ..- --...- - ce,..- - - - - r ( $ i Copyrig it © 2003 The Internationn 3ý nk fc r Reconstruction and Developnent/ TIIE WORLD BA \ K 1818 H t rec, N W. Washin;ton, D.C. 2C,433, J.S.A. First Piinting: J '!006  VWom,i B,NN Di siwi Si. N GTCI )IINK Foii PRouscE(rs 2. Disbursement Mthods 2.1 The Bank ast ibliE les disbursement arrangements for an op- era:ion in consult ation with the borrower and taking into considerat on. int?r alia, an assessment of the borrower's financial rianagemient and procurement arrangements, the procuremeit )lan and cash flow needs of the operation, and its disburs-rent (xperience with the borrower. 2.2 The Bank disburss proceeds from the Loan Account estab- lished for (ach loa i, to or on the order of the borrower, using one or moi e cf th< disbursement methods set forth below, as determined br tho Bank. (a Reimbu,ser,tent: The Bank may reimburse the bor- rower for exp mditures eligible for financing pursuant to the Loan Ag eement ("eligible expenditures") that the borrower has prefinanced from its own resources. (b) Advarice: Tie Bank may advance loan proceeds into a desiznEted 3ccount of the borrower to finance eligible expendJitires as they are incurred and for which sup- portir g c ocu nents will be provided at a later date (see sectioii 5, "D ,signated Accounts"). (cI Dire(t Pay nent: The Bank may make payments, at the b )rrower's request, directly to a third party (e.g., suppl-er, cor tractor, consultant) for eligible expendi- tures. (d) Spec, al Co,nmitment: The Bank may pay amounts to a 1hirl ptrty for eligible expenditures under special commitment entered into, in writing, at the borrower's request nd ( n terms and conditions agreed between the Bank an I th , borrower. 3. Withdrawal of Loan Proceeds 3.1 A uthoriz.ed Si inatures. Before loan proceeds may be withdrawi cr ccrnmitted from the Loan Account, the au- 16 Wkortu) B3\I DiY13U tSTI: *;NT C Foil PR~O IFCTS 3.5 Mqnimum Valu of Applications. The Bank establishes a minimuri value for Applications for reimbursement, direct payment, inc sp( cial commitment. The Bank reserves the right not 1o ,ccel t Applications that are below such mini- mum value. 3.6 Loan Di,bv.rsi,g Period. The Bank processes Appli- cations oi ly afte - the Loan Agreement has been declared effective i i a cor lance with the terms of the Loan Agree- ment. Th- expe iditures for which the Applications are made mu.t be: (aI paid :o i) oi or after the date of the Loan Agreement, or (ii) in the case of operations that permit retroactive financing, on or after the earlier date specified in the Loan g -eerr ent for that purpose; and (b) incurred on or before the closing date specified or re- ferred to in the Loan Agreement ("Closing Date"), ex- cept s cther xise specifically agreed with the Bank. 3.7 The loan lislursiig period ends on the final date established by the Ba-ik for r sceipt by the Bank of applications for with- drawal ard ;upforting documentation (the "Disbursement Deadline Daie"). The Disbursement Deadline Date may be th same is the Closing Date, or up to four months after the Closing E aE. N( rmally, to support orderly project comple- tion and (losure of the Loan Account, the Bank does not ac- cept applicat ons for withdrawal or supporting documentation received after the Disbursement Deadline Date. The borrower should pr )rr)tly tnform the Bank of any expected implemen- tation delays or e ceptional administrative issues before these dates. The E ank notifies the borrower of any exception that the Bank may m ike to the Disbursement Deadline Date. 3.8 Disburs ?ment Conditions. If the Loan Agreement con- tains a di ;bursen ient condition for a specific expenditure cat- egory, th( Bank - vill disburse loan proceeds for that category only afte: tl e di ;bursement condition has been fulfilled and tle Bank has no:ified the borrower to this effect. 18 Womio B aNi Dism1n s NT G IIDELINES FOR PROJECTS (c) For upplicalions for direct payments: Records; and (d) Any cthcr st pporting documentation that the Bank may reqn,st ty notice to the borrower. 4.5 Failure to Frov'de Audited Financial Statements. If the borrower fails to provide any of the audited Financial Statement:. requir Ad in accordance with, and within the pe- riod of time specif ed in, the Loan Agreement, the Bank may at its discie:i)n decide not to accept applications for with- drawal sufpol ted by Summary Reports, even if such reports are accompanied 1y Records. 5. Designated Acco ints 5.1 The borrovej mey open one or more designated accounts into whicl the Eank may, at the borrower's request, de- posit amoimts withdrawn from the Loan Account for the purpose o. payin: for eligible expenditures as they are in- curred ("Lesignated Account"). Before the Bank authorizes establishrrent of L Designated Account, the borrower must have adeqiate a ministrative capability, internal controls, and accouating a id auditing procedures to ensure effective use of the Deiign;,ted Account. 5.2 The Bank nmy d,,cide not to permit the use of Designated Accounts n iew projects if the borrower has failed to re- furd undcmiaented advances in the Designated Account of an, other loLn to, or guaranteed by, the borrower within two months ,fter the Disbursement Deadline Date for such loan. 5.3 Type of De.'ign,ted Account. A Designated Account may be establi hed in one of the two ways set out below, as ap- propriate for the operation concerned, as determined and no-ified b) tte B(nk. 1 10 WoRLo B.Nx DisBm SEM :NT G JIDELINES FOR PROJECTS (d) be ab e o Execute a large number of transactions promp:y: (e) be ablii tc per orm a wide range of banking services sat- isfactoi-ily; (f) be abl t) pr vide a detailed statement of the Desig- nated kccoun ; (g) be parl; of a se tisfactory correspondent banking network; and (h) charge reason ible fees for its services. 5.6 The Bank reserves the right not to accept a financial insti- tution for thE opEning and/or maintenance of a Designated Account il such i astitution has asserted or asserts a claim to set off, sci, e, o - attach the proceeds of any Bank loan on deposit in a Designated Account maintained by it. 6. Terms anc Conditions Applicable to Advances 6.1 Ceiling. ThE Ba-ik notifies the borrower of the maximum amount of loan p: oceeds that may be on deposit in a Desig- na;ed Account (t ie "Ceiling"). The Bank, at its discretion, may estab.ish the Ceiling as either (a) a fixed amount, or (b) an amoun, that i, adjusted from time to time during project implemen, ati:n I ased on periodic forecasts of project cash flow needs. 6.2 Applicatons fcr Advances. The borrower may apply for an advance i -i ar amount up to the Ceiling less the aggre- ga-:e amo-nt of ihose advances previously received by the borrower :or whi:h the borrower has not yet provided sup- porting docu -nen ation. Normally, to support orderly closure of the Loan kcc unt, the Bank does not advance loan pro- ceeds intc th - DE signated Account after the Closing Date. 6.3 Frequency of iteporting Eligible Expenditures Paid fr9m thc Desicnated Account. The borrower reports on the use of loan pr)ceeds advanced to the Designated Account 1 12 WoiiuL1 B \.NK Dim EMNr Gx )1DEL[rNr-s Fm~ PROJFCTS n o notificatioi by thi Bank, the borrower must promptly take the action request Ad: (a) Provide evideace satisfactory to the Bank within a pe- riod sprecihed by the Bank that the Excess Amount will be use:1 to par for eligible expenditures. If the evidence is not fm nist ed within the time period specified, the borrover mus- promptly refund the Excess Amount to the BFnk or (b) Refund tl.e E::cess Amount promptly. 7. Ineligible Expenc itures 7.1 Ineligible Erpenditures Generally. If the Bank deter- mines that ar y ai.iount of the loan was used to pay for an expendituie t iat is not eligible pursuant to the Loan Agree- ment ("inlig ble expenditure"), the Bank may, at its dis- creiion, requi:-e tle borrower to take one of the two actions listed below. Upoi notification by the Bank, the borrower must prorrptly ta ce the action requested: (a) Refund an eq iivalent amount to the Bank; or (b) Excep .ior ally provide substitute documentation evi- dencing other eligible expenditures. 7.2 Ineligible Expe iditures Paid from the Designated Account. If he 3ank determines that any payment out of the Desigr.at( dA ccount was not justified by the evidence furnished 1 o the I ank or was made for an ineligible expen- diture, the BEnk nay, at its discretion, require the borrower to take ore (f th c actions listed below. Upon notification by the Baik, the borrower must promptly take the action requested: (a) Provic et e a iditional evidence requested by the Bank; (b) Depost En e uivalent amount into the Designated Ac- count; 114 口戶口口口口口口口口口口口口口口 Attachment 2 [Letterhead] Mi: iistr of Finance and Budget [Street address] [City] [Country] [DATEI TI e World Bank 1818 H Street, N.W. Washington, D.C. 2C433 United States of AMErica Attention: [Country Directcr] Dear [Country Direcior]: Re: Finar cing No. TF092098-MAG (Financial Services Project) I refer to the Afnca -ata lytic Growth Fund Grant Agreement ("Agreement") be tween the Internati onal Dc ve" opn -ent Association (the "Association") and the Republic of Madagascar (the "Recip ent"), dated . providing the above Financing. For the purposes of'3ecti Dn 2.03 of the General Conditions, as defined in the Agreement, any [one] of thE person 3 whose authenticated specimen signatures appear below is authorized on beha'f ol'the Recipient to sign applications for withdrawal [and applications for a SpEcial cor un trne.-A] under this Financing: [Name], [position] Sp,!cimen Signature: [Name], [position] SiF nature: [Name], [position] Spocimen Signature: Yours truly, / signed / [Position] Iristruction to the recipient when.,encing ti tis letter to the Association: Stipulate if more than one person needs to sign Applications, and ho, v m iny c - which positions, and if any thresholds apply. Rel ublic of Madagascar Fin.incial S( rvices Project - ACGF Grant C rant No TF 92098 Source and Use! of Fun Is Statement for the Quarter ending ...... Quarter Cumulative Oper,ng Cash Balances Designated Acccunt Local Currency Account Add: Source of Funds World Bank Cash Available Less: Uses of Funds by Project Cate,zories Categ)ry I Category 2 Category 3 Category 4 Total Expenditure Cash Available Less Expenditure Foreign Exchange Differences Net Cash Available Closing Cash Balances Designated Account Local Currency Account Total Closing Cash Balances Republic of Madagascar Financial Services Project - ACGF Grant Grant No Tlt, 92t098 Uses of Funds by Category Statement for the Quarter ending ...... Categories Quarter Cumulative Project Planned Actual Variance Planned Actual Variance Life Cateaorv I Category 3 Category 4 Total Expenditures 0 Republic of Madagascar Financial S rvices Project - ACGF Grant Grant No TF 92098 Statement of Uses f fund: by Component for the Quarter ending ...... Component Quarter Cumulative Project P anned Actual Variance Planned Actual Variance Life Com ponent 1: ..................... Component 2: ........ Component 3: ............. C om ponent 4: ..................... Com ponent 5: ..................... Total Expenditures 0 Rel ublic of Madagascar Firnancial Services Project - ACGF Grant ( rant No TF 92098 Desig,nated At count (DA) Activity Statement For the quarter ending ........... Credit: Deposit Bani: A/C N(: Currency of DA: USD 1. Cumulative advances to end of current rep,rtirg pei od 2. Cumulatixe expenditures to end cf last reportir g pei od 3. Outstanding Advances to be accounted (lir a IninUS line 2) 4.Opening DA balance at beginning of report ng perioc (as of ) 5. Add/subtract: Cumulative adjustnents (if iny) 6. Advances rom World Bank during reporting poriod 7. Add lines 5 and 6 8.Outstanding advances to be accounted for (,dd line 4 and line 7) 9. Closing DA balance at end of current repor ing perio I (as of _ 10. Add/subtract: Cumulative adjustments (if any _ 11 .Expenditures for current reporting period 12. Add line 10 and line 11 13. Add line 9 and line 12 14. Difference (if any) (line 8 minus ine 13) 15. Total forecasted amount to be pai J by the W'orld Bai k 16. Less: Closing DA balance after adjustmen s 17. Direct paymnents/SC payments 18. Add lines 16 and 17 19. Cash requirement from the World Bank for next two reporting periods (line 15 minus line 18) F epublic of Madagascar Fin ncial Services Project - ACGF Grant Grant No TF 92098 Designated Accoun Exp nditure for Contracts Subject to Prior Review For th Quarter ending ................ Contract u Disbursement share of Contract Number Contrac date amount r P Category as per the to Grant Agreement Date of WB's Amount Paid to Supplier Non Objection Supplier during during Supplier to Contract Period Period Authorized by: Signature and Date: I epublic of Madagascar Financial Services Project - ACGF Grant Grant No TF 92098 Designated Account Expet diture for Contracts not subject to Prior Review I or t ie Qu: rter ending .................. Contract Disbursement Contract N .mber Contr ct dat( amount sar Category as per the I ~~~~Amt PaidCaeoyaprth Ito Supplier Grant Agreement Date of WB's Amount Paid to during Non Objection Supplier during Period Supplier to Contract Period from the Auths-ized by: Signature and Date: