July 22, 2020 Mr. Serhat Köksal Acting Deputy Director General Ministry of Treasury and Finance Inonu Bulvari No: 36, 06510 Emek/Ankara Republic of Turkey Re: IBRD Loan 9152-TR (Safe Schooling and Distance Education Project) Additional Instructions: Disbursement and Financial Information Letter (DFIL) Dear Mr. Köksal: I refer to the Loan Agreement between the Republic of Turkey (the “Borrower”) and International Bank for Reconstruction and Development (the “Bank”) for the above-referenced Project. The General Conditions, as defined in the Loan Agreement, provide that the Borrower may from time to time request withdrawals of Loan Amounts from the Loan Account in accordance with the Disbursement and Financial Information Letter, and such additional instructions as the Bank may specify from time to time by notice to the Borrower. 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 Loan Funds, and Reporting of Uses of Loan Funds The Disbursement Guidelines for Investment Project Financing, dated February 1, 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 the DFIL, and the manner in which the provisions in the Disbursement Guidelines apply to the Loan is specified below. (i) Disbursement Arrangements The table in Schedule 1 provides the disbursement methods which may be used by the Borrower, information on registration of authorized signatures, processing of withdrawal applications (including minimum value of applications and advances), instructions on supporting documentation, and frequency of reporting on the Designated Account. (ii) Electronic Delivery. Section 10.01 (c) of the General Conditions. The Borrower, through MoNE, shall deliver Withdrawal Applications (with supporting documents) electronically through the Bank’s web-based portal “Client Connection” at https://clientconnection.worldbank.org. This option shall be effected after the officials designated in writing by the Borrower who are authorized to sign and deliver Withdrawal Applications have registered as users of “Client Connection”. The designated officials shall deliver Applications electronically by completing the Form 2380, which is accessible through “Client Connection”. By signing the Authorized Signatory Letter, the Borrower confirms that it is authorizing such persons to accept Secure Identification Credentials (SIDC) and to deliver the Applications and supporting documents to the Bank by electronic means. The Borrower may exercise the option of preparing and delivering Withdrawal Applications in paper form on 1 exceptional cases (including those where the Borrower encounters legal limitations), and which were previously agreed with the Bank. 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 Reports and Audits (i) Financial Reports. The Borrower, through MoNE, shall 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, in form and substance satisfactory to the Bank. (ii) Project Audits. Each audit of the Project Financial Statements shall cover the period of one fiscal year of the Borrower, commencing with the fiscal year in which the first withdrawal was made. The project audit reports will be provided to the Bank within six 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 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 Loan, 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@worldbank.org using the above reference. Yours sincerely, _______________________ Auguste Tano Kouame Country Director Turkey Country Unit Europe and Central Asia Region 2 Attachments: 1. Form for Authorized Signatory Letter (ASL) 2. Form for Statement of Expenditures (SOE) Cc with copies: • Minister of National Education: Prof. Dr. Ziya Selçuk okm@meb.gov.tr • Deputy Minister: Reha Denemeç reha.denemec@meb.gov.tr • Director General for Innovation and Educational Technologies: Anil YILMAZ anil.yilmaz@meb.gov.tr, • Department Head of Education Technologies Development and Projects: Mustafa Hakan Bücük mhbucuk@meb.gov.tr • PIU within the Directorate General for Innovation and Educational Technologies (DGIET) at the Ministry of National Education (MoNE) 3 Schedule 1: Disbursement Provisions Basic Information Country Republic of Turkey Closing Date Section III.B.2. of Schedule 2 to the Recipient Ministry of Treasury and Finance Loan Agreement IBRD Loan IBRD Name of the Project Safe Schooling and Distance Disbursement Four months after the Closing Date Number 9152-TR Education 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 (e.g. suppliers’ invoices, guarantees for advance and retention payments, etc.) Reimbursement Yes Statement of Expenditure (SOE) in the format provided in Attachment 2 of the DFIL Designated Account Yes Statement of Expenditure (SOE) in the format provided in Attachment 2 of the DFIL Special Commitments Yes Copy of Letter of Credit Designated Account (Sections 5 and 6 **) Segregated – a new, separate Designated Account to be opened for the Project managed by the PIU within the Directorate Fixed Type Ceiling General for Innovation and Educational Technologies (DGIET) at the MoNE Financial Institution - To be opened at Türkiye Cumhuriyet Merkez Bankası (Central Currency EUR Name Bank of the Republic of Turkey) Frequency of Reporting Monthly Amount 16,000,000 (Subsection 6.3 **) Minimum Value of Applications (Subsection 3.5) The minimum value of applications for Reimbursement, Direct Payment and Special Commitment is EUR 1,000,000 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 **) The World Bank Radnicka cesta 80, 9th floor Zagreb, HR-10000, Croatia Attention: Loan Department (WFACS) Note: All Withdrawal and Documentation Applications will be electronically delivered to the Bank, via the Bank’s Client Connection website. Additional Information/Instructions For reimbursement method (including use for retroactive financing), funds will be disbursed to any bank account at the borrower’s request that is different from the designated account. The designated account is only used for receiving advances. ** Sections and subsections relate to the “Disbursement Guidelines for Investment Project Financing”, dated February 2017. 4 Attachment 1 Form of Authorized Signatory Letter [Letterhead] Ministry of Treasury and Finance [Street address] [City] [Country] [DATE] The World Bank 1818 H Street, N.W. Washington, D.C. 20433 United States of America Attention: [Country Director] Re: IBRD Loan 9152-TR (Safe Schooling and Distance Education) I refer to the Loan Agreement between the Ministry of Treasury and Finance (the “Borrower”) and International Bank for Reconstruction and Development (the “Bank”) for the above-referenced project, dated ________, providing the above Loan. For the purposes of Section 2.03 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[Thisconfirms 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 1 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. 5 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. 5 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] 6 Attachment 2 - Statement of Expenditures Payments made during the period from ________________ to ______________ Loan No.: Application No.: Category No.: SOE No.: 1 2 3 4 5 6 7 8 9 10 11 Supplier’s WB Type of Good or Currency and Total Currency and Total % Financed Amount Currency and Exchange Date of Remarks Name Contract Service Amount of Contract Amount of Invoice by IBRD Eligible Amount Paid Rate Payment Number in (CW/GO/CS/OP/TR) Covered by for from Client / Brief Description Application Financing Designated Connection (Inclusive of Taxes) (5 x 6) Account TOTALS Supporting documents for this SOE retained at ___________________________________________ (location) 7