29-Jul-2021 Date: ________________________ Ms. Bana Kaloti Regional Director – Middle East United Nations Office for Project Services Middle East Region, Operational Hub in Amman Deir Ghbar Al-Shakereen Street P.O. Box 941655 Amman 11194 Jordan Re: IDA Grant No. D881-RY (Yemen Emergency Human Capital Project) Additional Instructions: Disbursement and Financial Information Letter Dear Madam, I refer to the Financing Agreement between the UNITED NATIONS OFFICE FOR PROJECT SERVICES (for the benefit of the Republic of Yemen) (“UNOPS” or “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 Grant amounts from the Grant 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 Grant Funds, and Reporting of Uses of Grant 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 Grant 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, 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 Advance. -2- (ii) Electronic Delivery. Section 11.01(c) of the General Conditions. The Recipient shall deliver Withdrawal Applications (with supporting documents) electronically through the Association’s web-based portal “Client Connection” at https://clientconnection.worldbank.org. This option will be effected after the officials designated in writing by the Recipient who are authorized to sign and deliver Withdrawal Applications have registered as users of “Client Connection”. The designated officials shall deliver Withdrawal 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 Withdrawal Applications and supporting documents to the Association by electronic means. The Recipient may exercise the option of preparing and delivering Withdrawal Applications in paper form on exceptional cases (including those where the Recipient encounters legal limitations), and which were previously agreed with the Association. By designating officials to use SIDC, 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 Withdrawal 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) The Recipient shall maintain or cause to be maintained a financial management system, including a separate account in its records, adequate to reflect the transactions related to its Respective Parts of the Project, in accordance with the requirements of the UNOPS Financial Regulations and Rules, (hereinafter referred to as the Financial Regulations). (ii) Financial Reports. The Recipient shall prepare, on a semi-annual basis, interim unaudited financial reports related to its Respective Parts of the Project, in accordance with accounting standards established pursuant to the Financial Regulations and in its standard format for such reports,. The first said interim unaudited financial reports shall be furnished to the Association no later than forty-five (45) days after the end of the six (6) months after the Effective Date, and shall cover the period from the incurrence of such six (6) months period; thereafter, each interim unaudited financial report shall be furnished to the Association not later than forty-five days after each subsequent semester, and shall cover such six (6) months period. (iii) Audits. The Recipient shall ensure that the audit of its Respective Parts of the Project is governed by its Financial Regulations and Rules. In addition, the Recipient shall carry out any additional due diligence activities as agreed by the Recipient and the Association in accordance to the provisions set forth under Section II.B.4 of Schedule 2 to the Financing Agreement. 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 Withdrawal Applications, monitor the near real-time status of the Grant, and -3- 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 Association by email at askloans@worldbank.org using the above reference. Yours sincerely, INTERNATIONAL DEVELOPMENT ASSOCIATION By: ______________________________ Robert Bou Jaoude Acting Country Director for Yemen Middle East and North Africa Region Attachments 1. Form of Authorized Signatory Letter. 2. Interim unaudited Financial Report (IFR). -4- Schedule 1 : Disbursement Provisions Basic Information Country Republic of Yemen Closing Date Section IV.B.5 of Schedule 2 to Recipient UNITED NATIONS OFFICE the Financing Agreement. FOR PROJECT SERVICES Grant D881-RY Name of the Project Yemen Emergency Human Capital Disbursement Four months after the closing Number Project Deadline Date date. Subsection 3.7 ** Disbursement Methods and Supporting Documentation Disbursement Methods Methods Supporting Documentation Section 2 (**) Subsections 4.3 and 4.4 (**) Direct Payment No Not Applicable Reimbursement No Not Applicable Advance Yes Interim unaudited Financial Report (Tables 1-B and 1-E of IFR in the format provided in Attachment 2 of the DFIL) Special Commitments No Not Applicable Advance (Sections 5 and 6 **) All advances made by the Association will be deposited Variable, forecast for 6 months of into an official UNOPS bank account in accordance with implementation Type the provisions of applicable provisions of the Financial Ceiling Regulations and Rules of UNITED NATIONS OFFICE FOR PROJECT SERVICES Financial Institution – Not Applicable USD Currency Name Frequency of Reporting Quarterly Not Applicable Amount Subsection 6.3 (**) Minimum Value of Applications (subsection 3.5) Not Applicable. 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 **) A letter in the Form attached (Attachment 1) 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 Withdrawal Applications: -5- International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Attention: Marina Wes, Country Director All Withdrawal Applications and its supporting documentation will be electronically sent via the Association’s web portal Client Connection Other Undertakings 1. The Recipient shall not transfer or channel any of the proceeds of the Financing to and/or through any central government entities in the Republic of Yemen. 2. The Recipient shall not, without the express written consent of the Association, transfer or channel any of the proceeds of the Financing to public officials or employees employed by any central government entities in the Republic of Yemen except travel costs. ** Sections and subsections relate to the “Disbursement Guidelines for Investment Project Financing”, dated February 2017. -6- Attachment 1 Form of Authorized Signatory Letter [Letterhead] UNOPS [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. -7- 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 / ______________ -8- Attachment 2 Interim Unaudited Financial Statement Interim Financial Reports 1A Sources and Uses of Funds Statement by components/ activities For the period ending __________ Actual Planned Variance Year to Date Cumulative Year to Date Cumulative Current Period Current Period Current (as at (as at (as at (as at Year to Date Cumulative (as at xx/xxxx) (as at xx/xxxx) Period xx/xxxx) xx/xxxx) xx/xxxx) xx/xxxx) Sources of Funds IDA Funds Received Interest Earned Forex gain/loss Total Funds Received Expenditures Component 2 Sub-component 2.X Sub-component 2.XX Sub-component 2.XXX Component 3 Subcomponent 3.1: Project Implementation and Management Support (a) Recipient’s Direct Costs for management and supervision (b) Recipient’s Indirect Costs c) Audit (d) Third Party Monitoring Subcomponent 2.2: Technical Assistance Component 4: Contingent Emergency Response Total Expenditures Cash Receipts less Expenditures Opening Cash Balance Ending Cash Balance -9- Interim Financial Reports 1B Uses of Funds Statement by category of expenditures For the period ending __________ Actual Amount Actual Category # Disbursement Category Current Period Year to Date Cumulative Committed Expenditures Expenditures Expenditure Works, goods, non-consulting services, consultants’ 1 services, Training and Operating Costs for Components 2, 3.1 (a)(c), 3.1 (a) (d) and 3.2 of the Project Recipient Indirect Cost payable under Component 3.1(a)(b) 2 of the Project (i) Recipient’s Direct Cost under Component 3.1(a)(a) of the 3a Project (ii) Recipient’s Third Party Monitoring under Component 3b 2.3 of the Project 4 Emergency Expenditures under Component 4 of the Project Total Expenditures - 10 - Interim Financial Reports 1E Reconciliation for period ending xxxx Project Account Amount advanced by World Bank WA#1 WA#2 WA#3 WA#4 WA#5 WA#6 WA#7 Expenditures paid - Outstanding advances Closing balance Date Names and Titles of Representatives Signatures - 11 - Client Connection Reconciliation Client connection Difference explanation and Last IFR cumulative Differences This IFR current Difference after this IFR Description cumulative proposed reconciliation USD USD USD USD USD measures Cumulative Receipts per client 0 0 0 0 0 connections Disbursement per Category Category X 0 0 0 0 0 Category XX 0 0 0 0 0 Category XXX 0 0 0 0 0 Balance 0 0 0 0 0