OFFICIAL DOCUMENTS THE WORLD BANK IBRD * IDA I WORLDM BNKROUP July 13, 2018 Hon. Manasseh D Sogavare, MP Deputy Prime Minister and Minister of Finance and Treasury Ministry of Finance and Treasury P.O. Box 26 Honiara Solomon Islands Dear Minister, IDA Grant No. D32 7-SB and IDA Credit No. 6250-SB Electricity Access and Renewable Energy Expansion Project Additional Instructions: Disbursement and Financial Information Letter (DFIL) I refer to the Financing Agreement ("Agreement") between Solomon Islands (the "Recipient") and the International Development Association (the "Association") for the above-referenced project, dated 2bA1A t61 . The General Conditions, as defined in the Financing Agreement, provide that the Associatidn may issue additional instructions regarding the withdrawal of the proceeds of IDA Grant No. D327-SB and IDA Credit No. 6250-SB ("Financing"), 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 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 this Disbursement and Financial Reporting Letter, and the manner in which the provisions in the guidelines apply to the Financing is specified below. I. Disbursement Arrangements, Withdrawal and Reporting of Financing Proceeds (i) Disbursement Arrangements: * Instructions (Schedule 1). The table in Schedule 1 provides the disbursement methods, 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. * Disbursement Deadline Date, DDD (subsection 3.7). The DDD is four (4) months after the Closing Date specified in the Financing Agreement. Any changes to this date will be notified by the Association. (ii) Electronic Delivery. Refer to 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: (a) the Recipient has designated in writing, its officials who are authorized to sign and deliver Applications and to receive Secure Identification Credentials ("SIDC") from the Association for the purpose of delivering such Applications by electronic means; and (b) all such officials designated by the Recipient 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 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 shall cause the Project Implementing Entity to 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 shall cover the period of one fiscal year of the Project Implementing Entity. The audited Financial Statements for each such period shall be furnished to the Association not later than six (6) 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 Association's public website 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 Financing, 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(aworldbank.org. If you have any queries in relation to the above, please contact WFALN Manila(a,worldbank.org using the above reference. Yours sincerely, essa Sl -Sa 1 Acting Country Director Papua New Guinea & Pacific Islands East Asia and Pacific Region Attachments 1. Statement of Expenditure 2. Statement of Expenditure for Output-Based Claims 3. Form of Authorized Signatory Letter Page 2 of 9 Cc with copies: Mr. Pradip Verma Chief Executive Officer Solomon Islands Electricity Authority P.O. Box 6, Ranadi Honiara Solomon Islands Page 3 of 9 Schedule 1 Disbursement Arrangements IDA Credit No. Country Solomon Islands IDA Grant/Credit 6250-SB Recipient Solomon Islands Number IDA Grant No. Name of the Project Electricity Access and Renewable Energy D327-SB Expansion Project Disbursement Methods Methods Available Supporting Documentation Section 2 (**) Subsections 4.3 and 4.4 (**) Direct Payment Yes Copy of Records. Reimbursement Yes (a) Statement of Expenditure in the form attached (Attachment 1) (only for disbursement of categories I and 3 of the Financing Agreement) (b) Statement of Expenditure in the form attached (Attachment 2) for Output-Based Claims (only for disbursement category 2 of the Financing Agreement) (c) Independent Output Verification Report (only for disbursement category 2 of the Financing Agreement) Advance Yes (a) Statement of Expenditure in the form attached (Attachment 1) (only for disbursement of categories 1 and 3 of the Financing Agreement) (b) Statement of Expenditure in the form attached (Attachment 2) for Output-Based Claims (only for disbursement category 2 of the Financing Agreement) (c) Independent Output Verification Report (only for disbursement category 2 of the Financing Agreement) Special Commitments Yes Copy of Letter of Credit Type Pooled Ceilinz Fixed Financial Institution - ANZ Solomon Islands Currency USD Name Frequency of Reporting, Quarterly or more often if needed Amount USD1,000,000 Subsection 6.3 (**) The Minimum Value of Applications for Reimbursement and Direct Payment is USD40,000. Page 4 of 9 An authorized signatory letter in the Form attached (Attachment 3) 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 Level 19, 14 Martin Place CML Building Sydney NSW 2000, Australia Attention: Country Director Please provide completed and signed applications for withdrawal, together with supporting documents to the address indicated below: The World Bank 26th Floor, One Global Place 51 Avenue corner 25t Street, Bonifacio Global City Taguig City, Philippines Attention: Loan Department 1. The Project will be co-financed by IDA Grant No. D327-SB, IDA Credit No. 6250-SB, SCF-SREP Grant No. TF0A7425, SIDS-DOCK Grant No. TF0A7426 and GEF Grant No. TFOA7418. 2. The funds from the above five (5) financing sources under the Project will flow through an existing bank account (pooled designated account) maintained by the Solomon Power at the ANZ Solomon Islands. However, separate ledgers should be kept to account for the Association's funds. 3. The combined ceiling of the pooled designated account for IDA Grant No. D327-SB, IDA Credit No. 6250-SB, SCF-SREP Grant No. TF0A7425, SIDS-DOCK Grant No. TF0A7426 and GEF Grant No. TF0A7418 under the Project is USD1,000,000. 4. To the extent practical and subject to further change, the Association's funds under the Project will be accessed in the following sequence: (a) SIDS-DOCK Grant No. TF0A7426 for Part 1 of the Project first; (b) GEF Grant No. TFOA7418 for Part 3 of the Project first; (c) IDA Grant No. D327-SB; (d) SCF-SREP Grant No. TFOA7425 and (e) IDA Credit No. 6250-SB. ** Sections and subsections indicated relate to the Disbursement Guidelines for Investment Project Financing dated February 2017 Page 5 of 9 Attachment 1 Statement of Expenditures SOE) Financier; Payment made dunng the penod from to toeNred j........ The following expenditures have incurred during the retroactive financing period (please tick) yes No The following expenditures have incurred during before the closing date of the loan/credit/grant (please tick) lyes ND ONLY the Designated Account 1 2 3 4 a a 7 a 9 10 11 12 13 14 Iatm Suppliers f eict covereds N % Fevnanced Eligible Exchange f " No fte onrac? oneCDn aiont(orgial+ umbr ayntApplication (net by the Bank Amnount rate WithdrawDalIgfrom (YES or NO) ReY?Car Account Account contirs) (Col Xo1) (Coni 112) 0.00 0.00 TOTAL 0.00 Supportingd cknn.e fr INa SiE are rnaird a A .eaae fhrm sh.dd boasd for reeactv financrg A uperale Furm hnld heae fur each categry Page 6 of 9 Attachment 2 Statement of Expenditures (SOE) for Output-Based claims under Category 2 Connections made during the period from to Date: Application No.: TF No.: SOE No.: 1 2 3 4 5 6 7 8 Rate per Unit in Number of Grid Reference US$ Amount Eligible -1 Community connected Connections (Honiara/ (US$XX=for installation for Financing installed Outstation) XXY/ US$XX (Col 3 * Col 5) for XXX) 2 Total Amount claimed in this WA (total in Col 7 or total in Col 6 if below) Supporting documents for this SOE retained at: (insert location) Page 7 of 9 Attachment 3 Form of Authorized Signatory Letter [Letterhead] Ministry of Finance and Treasury [Street address] [City] [Country] [DATE] The World Bank Level 19, 14 Martin Place CML Building Sydney NSW 2000, Australia Attention: Country Director IDA Grant No. D327-SB and IDA Credit No. 6250-SB Electricity Access and Renewable Energy Expansion Project I refer to the Financing Agreement ("Agreement") between Solomon Islands (the "Recipient") and the International Development Association (the "Association"), dated providing the above Financing. For the purposes of Section 2.03 of the General Conditions as defined in the Agreement, any '[one] of the persons whose authenticated specimen signatures appear below is authorized on behalf of the Recipient to sign applications for withdrawal under this Financing. For the purpose of delivering Applications to the Association, 2[each] of the persons whose authenticated specimen signatures appears below is authorized on behalf of the Recipient, acting 3[individuallyl 4Uointly], to deliver Applications, and evidence in support thereof on the terms and conditions specified by the Association. I 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. 2 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. 3 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. 4 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. Page 8 of 9 5[This confirms that the Recipient is authorizing such persons to accept Secure Identification Credentials (SIDC) and to deliver the Applications and supporting documents to the Association by electronic means. In full recognition that the Association shall rely upon such 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 Recipient represents and warrants to the Association that it will cause such persons to abide by those terms and conditions.] 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 / [Position] Instruction to the Recipient: Add this paragraph if the Recipient 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 Association. Page 9 of 9