THE WORLD BANK OFFICIAL IBRD* IDA I WORLD BANKGROUP JUNAIDKAMALAHMAD IDOCUMENTS Country Director India, South Asia Region January 30, 2018 Mr. Jasvinder Singh Joint Controller of Aid Accounts and Audit and Officiating CAAA Department of Economic Affairs, Ministry of Finance Government of India B-Wing, 5th Floor Janpath Bhawan New Delhi, India 110001 Re: IBRD Loan 8795-IN (India: Tamil Nadu Rural Transformation Project) Additional Instructions: Disbursement and Financial Information Letter. Dear Mr. Singh, I refer to the Loan Agreement between India (the "Borrower") and the International Bank for Reconstruction and Development (the "World Bank") for the above-referenced project, dated January 30, 2018. The General Conditions, as defined in the Loan Agreement, provide that the World Bank may issue additional instructions regarding the withdrawal of the proceeds of Loan 8795-IN ("Loan"), and specify certain financial management reporting and audit requirements. This letter ("Disbursement and Financial Information Letter" or "DFIL"), as revised from time to time, constitutes such additional instructions. The Disbursement Guidelines for Investment Project Financing dated February 2017, ("Disbursement Guidelines") are available in the Bank'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 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 Arrangements, Withdrawal and Reporting of Loan Proceeds. (i) Disbursement Arrangements Instructions (Schedule 1). The table in Schedule I provides the disbursement methods, information on registration of authorized signatures, processing of withdrawal applications, instructions on supporting documentation, the closing date, and the disbursement deadline date. (ii) Electronic Delivery. Refer to section 10.01 (c) of the General Conditions: * The World Bank may permit the Borrower to electronically deliver applications (with supporting documents) through the Bank's web-based portal (https://clientconnection.worldbank.org) "Client Connection". This option may be effected if: (a) the Borrower has designated in writing, its officials who are authorized to sign and deliver Applications and to receive Secure Identification Credentials ("SIDC") from the Bank for the purpose of delivering such Applications by electronic means; and (b) all such officials designated by the Borrower 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". The Borrower may continue to exercise the option of preparing and delivering Applications in paper form. The Bank reserves the right and THE WORLD BANK IBRD * IDA I WORLDRANKGROUP may, in its sole discretion, temporarily or permanently disallow the electronic delivery of Applications by the Borrower. By designating officials to use SIDC and by choosing to deliver the Applications electronically, the Borrower 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 Bank'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 Information (i) Financial Reports. The Borrower shall cause the State Government of Tamil Nadu, through the Tamil Nadu Rural Transformation Society, to prepare and furnish to the Bank 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 shall cover the period of one (1) fiscal year of the Borrower, commencing with the fiscal year in which the first withdrawal was made. The audited Financial Statements for each such period shall be furnished to the Bank not later than nine (9) months after the end of such period. III. Other Important Information For additional information on disbursement arrangements, please refer to the Loan Handbook available on the Bank's public website 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 Loan, and retrieve related policy, financial, and procurement information. For more information about the website and registration arrangements, please contact the Bank by email at clientconnectionAworldbank.org. If you have any queries in relation to the above, please contact the Loan Operations Department, Victor Ordonez (Senior Finance Officer, at vcondegworldbank.org) with copy to Radha Raju (Finance Analyst, at traiu@2,worldbank.org) using the above reference. Yours sincerely, Junaid Kamal Ahmad Country Director India Attachments 1. Form of Authorized Signatory Letter 2. Interim unaudited Financial Report (IFR) Schedule 1 Disbursement Arrangements Country India Closing Date 30-Nov-2023 Section IV.B.2. of Schedule 2 to Loan Borrower India (Entities: DEA and CAAA) the Loan Agreement. Number Name of the Project Tamil Nadu Rural Disbursement Deadline Date Four months after the closing Transformation Project Subsection 3.7 ** date. Disbursement Methods Methods Supporting Documentation Section 2 (**) Subsections 4.3 and 4.4 (**} Direct Payment No Not Applicable Reimbursement Yes Interim unaudited Financial Report in the format provided in Attachment 2 Advance - Designated Acct. No Not Applicable Special Commitments No Not Applicable Type Not Applicable Ceiling Not Applicable Financial Institution - Name Not Applicable Currency Not Applicable Frequency of Reporting Not Applicable AmutNot Applicable Subsection 6.3.(** The minimum value of applications for Reimbursement is not applicable to this project. Funds will be pre-financed by the Government of India through the regular budget to Government of Tamil Nadu, which will subsequently transfer these funds to Tamil Nadu Rural Transformation Society to finance eligible expenditures for project implementation. After it, CAAA will process reimbursements based on the information provided by the implementing entity. .,A V" -I 41111ft.1"N" Category 1lla) Goods, Works, Non-consulting Services, Consulting Services, Operating Costs, Training and Workshops for the Project 9other than funds towards Start up Funrd gats i rawl d schedules of the iFR (refer to corresponding format in Attachment 2), and Category 1 (b) Start-up Fund Grants and Category 2 Matching Grants will use the specific schedules stated in the IFR format (refer to corresponding format, also in Attachment 2). ** Sections and subsections relate to the "Disbursement Guidelines for In vestment Project Financing, dated February 2017" Attachment 1 - Form of Authorized Signatory Letter [Letterhead] Ministry of Finance [Street address] [City] [Country] [DATE] The World Bank 1818 H Street, N.W. Washington, D.C. 20433 United States of America Attention: Mr. Junaid Kamal Ahmad, Country Director, India Re: Loan No. 8795-IN (India: Tamil Nadu Rural Transformation Project) I refer to the Loan Agreement ("Agreement") between the International Bank for Reconstruction and Development (the "Bank") and India (the "Borrower"), dated , providing the above Loan. For the purposes of Section 2.02 of the General Conditions as defined in the Agreement, any 1[one] of the persons whose authenticated specimen signatures appear below is authorized on behalf of the Borrower to sign applications for withdrawal [and applications for a special commitment] under this Loan. For the purpose of delivering Applications to the Bank, 2[each] of the persons whose authenticated specimen signatures appears below is authorized on behalf of the Borrower, acting 3[individually] 4[jointly], to deliver Applications, and evidence in support thereof on the terms and conditions specified by the Bank. 5[This confirms that the Borrower is authorizing such persons to accept Secure Identification Credentials (SIDC) and to deliver the Applications and supporting documents to the Bank by electronic means. In full recognition that the Bank shall rely upon such I Instruction to the Borrower: 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 Bank. 2 Instruction to the Borrower: 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 Bank. 3 Instruction to the Borrower: 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 Bank. 4 Instruction to the Borrower: 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 Bank. Instruction to the Borrower: Add this paragraph if the Borrower wishes to authorize the listed persons to accept Secure Identification Credentials and to deliver Applications by electronic means; if this is not applicable, please delete the paragraph. Please delete this footnote in final letter that is sent to the Bank. representations 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 Borrower represents and warrants to the Bank that it will cause such persons to abide by those terms and conditions.] This Authorization replaces and supersedes any Authorization currently in the Bank records with respect to this Agreement. [Name], [position] Specimen Signature: [Name], [position] Specimen Signature: [Name], [position] Specimen Signature: Yours truly, / signed / [Position] Attachment 2 - Interim Unaudited Financial Statements IUFR-S1 TAMILNADU RURAL TRANSFORMATION PROJECT (TNRTP) Interim Unaudited Financial Report (IUFR) for the quarter ended.......................... Sources and Uses of Funds for the period from ........ (Amount in Indian Rupmes) A Opening alances (Total) Al Cash and Bank balances -SPMU -DPMU - BPMU A2 Advances -SPMU - DPMU - BPMU B Receipts (Total) Bi Grant received from State 82. Grant received from Line Deptt 83. Grant received from other Sources B4 Other Receipts - Interest from Bank -Other income - Liabilities Current [TDS & other deductions not yet remitted] C Uses of Funds 1.1 - Inclusive Strategic Investments, Analytics and Planning 1.2 - Business Development and Support Services 1.3 - Enterprise Promotion and Value Chain Strengthening 2.1 - Facilitating Business Plan Financing 2.2 - Innovation Promotion 3.1 - Pre and Post Skilling Services to Enhance Employment Outcomes 3.2 - Community based Skilling 3.3 - Skilling for Prioritized Value Chains 4.1 Implementation Support Systems [HR, FM, Procurement, Safeguards and ICTI 4.2 -Monitoring and Fvaluation and Grievance Redressal 4.3 -Knowledge, Communication and Learning SystemsI I D Net Funds Available (A+B-CQ Representedby: E Closing Balances Cash and Bank balances - SPMU - DPMU - BPMU Advances SPMU -DPMU1 2.2 Innovation Promotion 2.2.1 - Pilots Induced Thematic Interventions 2.2.1.1 - Agri-Food Hubs 2.2.1.2 - Green Enterprises 2.2.1.3 - Innovative Creative Enterprises 2.2.2 - Tamilnadu Transformation Market Place 2.2.3 - ICT Platform for Innovation Promotion 2.2.4 - Facilitation Costs 2.2.4.1 - StaffCosts 2.2.4.2 - Other District faciliation Costs 2.2.4.3 - Other Block level facilitation costs 3.1 Pre and Post Skilling Services 3.1.1 - Youth mobilization through Convergence 3.2 Community based Skills 3.2.1 - Community Skills Schools 3.2.2 Community Farm Schools 3.3 Enterpreneurship Development Program 3.4 - ICT for Skilling and job Opportunities 3.5 - Facilitation Costs 3.5.1 - StaffCosts 3.5.2 - Other District faciliation Costs 3.5.3 Other Block level facilitation costs 4.1 Pr-e Management and Implementation Support Systems 4.1.1 - One Reu rbhishment Costs 4.1.2 - us f office equipment 4.1.3 - Consultancies 4.1.4 - Training 4.1.5 - Incremental Operating Costs 4.1.5.1 Contractual Staff Salaries 4.1.5.2 - Outsourced Staff 4.1.5.3 -Mobilit Costs 4.1.5.4 -Hiring of Vehicles 4.1.5.5 -Office Running Costs 4.1.5.6 -Other Operating Costs 4.1.6 -Regional Units 4.1.7 -MIS and ICT for Project Management 4.2 Monitoring and Evaluation and Knowledge Management 4.2.1 - Monitoring and Evaluation 4.2.2 - Knowledge Management TAMILNADU RURAL TRANSFORMATION PROJECT ended ........................ Producer Collectives (PC's) START-UP GRANT PROGRESS REPORT No. Of KC's formed & No of PCs to whom grent ~ n ~ ~ -~ ~ m.Fund Utilized Reported Ttale Ex asf 1eNo Nm of t ement signed released r - Ist Tranche release PC - 2nd Tranche release PC - 3rd Tranche release uAm n I ) Relees (in PG's EG's PC's CQ YTD cro CQ YTD CTD (A) CQ YTD CD (B) CQ YTD CC1)(C) OQ YTD CTD CTD (A+B+C CTD 1 District 1 2 District 2 3 District 3 4 District 4 5 District 5 6 District 6 7 District 7 8 District 8 9 District 9 101District 10 11 District 11 12 District 12 13 District 13 14 District 14 15 District 15 16 District 16 17 District 17 181District 18 191District 19 201 District 20 211District 21 23D!itrict 23 241District 24 IUFR-S3 TAMILNADU RURAL TRANSFORMATION PROJECT Quarterly Interim Unaudited Financial Report (IUFR) for Period from ----------to-------- Summary of Payments of Prior Review Contracts for ----------- (Amount indian Rupees) Componentl Sub- ContractoriCons Contract Payment Details S.No. WBR# Date of Paid this Cumulative ' component ultants Value Payment quarter 1 2 3 4