South Caucasus Regional Office 30-Mar-2022 ____________________ H.E. Lasha Khutsishvili Minister of Finance Ministry of Finance 16 Gorgasali Street, Tbilisi, Georgia Re: IBRD Loan 9349-GE Georgia Human Capital Program Additional Instructions: Disbursement and Financial Information Letter (DFIL) Excellency: I refer to the Loan Agreement between Georgia (the “Borrower”) and the International Bank for Reconstruction and Development (the “Bank”) for the above -referenced Program. 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. 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 (i) Schedule 1. The table in Schedule 1 sets out the disbursement methods which may be used by the Borrower, information on registration of authorized signatures, processing of withdrawal applications (including processing of advances), instructions on documentation, and reporting of advances. (ii)Withdrawal Applications. Applications for withdrawal from the Loan Account (“Withdrawal Applications”) of amounts of the Loan allocated to individual Disbursement Linked Results (“DLR”) may, pursuant to the provisions of Section IV of Schedule 2 of the Loan Agreement, be sent to the World Bank at any time after the World Bank has notified the Borrower in writing that it has accepted evidence of achievement of the specific DLR. (iii)Withdrawal Amount. The Withdrawal Application may be for an amount not to exceed the amount of the Loan confirmed by the World Bank for the specific DLR in respect of which the withdrawal is requested, as specified in the World Bank’s notice to the Borrower. (iv) Prior Results. Not Applicable. (v) Advances and Recovery of Advances. Not Applicable. (vi) Electronic Delivery. Section 10.01 (c) of the General Conditions. The Borrower will deliver Withdrawal Applications (with supporting documents) electronically through the Bank’s web-based portal “Client Connection” at https://clientconnection.worldbank.org. This option will be affected 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 5A, Ramishvili Street 1818 H Street N.W. Tbilisi 0179, Georgia Washington, DC 20433, USA. Tel: +995 (32) 291 30 96 Tel: +1 (202) 473 7252 Fax: +995 (32) 291 34 78 Fax: +1 (202) 522 3607 -2- designated officials will 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 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 World 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 Audits. Each audit of the Financial Statements shall cover the period of one fiscal year of the Borrower. The audited Financial Statements for each such period shall be furnished to the Bank not later than twelve (12) months after the end of such period, and will be publicly disclosed in a timely fashion and in a manner acceptable to the Bank. III. Other 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 World Bank by email at askloans@worldbank.org using the above reference. Yours sincerely, _______________________ Sebastian-A. Molineus Regional Director for the South Caucasus Attachments 1. Form of Authorized Signatory Letter 2. Sample DLI/DLRs Monitoring Progress Report Schedule 1: Disbursement Provisions Basic Information Country Georgia Closing Date Section IV. B of Schedule 2 to the Loan Borrower Georgia Loan Agreement. IBRD 9349-GE Number Georgia Human Capital ProgramDisbursement Name of the Program Six months after the closing date. Deadline Date Disbursement Methods and Supporting Documentation Disbursement Methods Methods Supporting Documentation DLI payment (financing of Yes Confirmation issued by the World Bank achieved results) Advance No Not Applicable. Advances Financial Institution - Name N/A Ceiling N/A Currency N/A Amount N/A Authorized Signatures The form for Authorized Signatories Letter is provided in Attachment 1 of this letter Withdrawal and Documentation Applications The World Bank Radnicka cesta 80, 9th floor Zagreb, HR - 10 000 Croatia Attention: WFACS Loan Client Services Additional Instructions Financial Institution to be used for disbursements will be Treasury Single Account at National Bank of Georgia. Other None Attachment 1 – Form of Authorized Signatory Letter [Letterhead] Minister of Finance, Georgia [DATE] The World Bank 1818 H Street, N.W. Washington, D.C. 20433 United States of America Attention: [Country Director] Re: IBRD Loan 9349- GE Georgia Human Capital Program Additional Instructions: Disbursement and Financial Information Letter (DFIL) Excellency: I refer to the Loan Agreement between Georgia (the “Borrower”) and the International Bank for Reconstruction and Development (the “Bank”) for the above-referenced Project 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. 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 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 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. 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 - Monitoring Progress Report for DLI/DLR Verification Sample Report Georgia Human Capital Program (P175455) Monitoring Progress Report for DLI/DLR Verification for Disbursement Purposes IBRD Loan number: Application Number: Date: Disbursement Linked Indicator/Result Result Achieved Under this Notification DLR [Loan no] Proceeds DLR [Loan no] Proceeds to be Approved Disbursed As per Notification As Confirmed by Task Team ({insert currency}) ({insert currency}) DLI/DLR# {DLI/DLR# and description from {insert specific results {insert specific results as {insert amount of loan proceeds that disbursement table in legal agreement, for as submitted by confirmed by the task team} can now be disbursed – should be based each DLI/DLR in borrower’s Results borrower} or [Cannot confirm at this on ‘confirmed’ results; or should be Achievement Notification} point] ‘zero’ if results cannot be confirmed} {Use separate row for each DLIs – example In case advance has been previously below) disbursed the corresponding amount of loan proceeds shall be deducted from current disbursement TOTAL