OFFICIAL OCUMENTS THE WORLD BANK IBRD * IDA I WORLD BANKGROUP September 20, 2017 H.E. Djamshid Kuchkarov Deputy Prime Minister Republic of Uzbekistan Excellency: Re: Credit No. 6083-UZ (Ferghana Valley Water Resources Management Project - Phase II) Additional Instructions: Disbursement I refer to the Financing Agreement between the International Development Association (the "Association") and the Republic of Uzbekistan (the "Recipient") for the above-referenced Project, dated September 20, 2017. The Financing Agreement provides that the Association may issue additional instructions regarding the withdrawal of the proceeds of financing Credit No. 6083-UZ ("Financing"). This letter ("Disbursement Letter"), as revised from time to time, constitutes the additional instructions. The attached World Bank Disbursement Guidelines for Investment Project Financing, dated February 2017, ("Disbursement Guidelines") (Attachment 1), are an integral part of the Disbursement Letter. The manner in which the provisions in the Disbursement Guidelines apply to the Financing is specified below. Sections and subsections in parentheses below refer to the relevant sections and subsections in the Disbursement Guidelines and, unless otherwise defined in this letter, the capitalized terms used have the meanings ascribed to them in the Disbursement Guidelines. I. Disbursement Arrangements (i) Disbursement Methods (section 2). The following Disbursement Methods may be used under the Financing: * Reimbursement * Advance * Direct Payment * Special Commitment (ii) Disbursement Deadline Date (subsection 3.7). The Disbursement Deadline Date is 4 months after the Closing Date specified in the Financing Agreement. Any changes to this date will be notified by the Association. (iii) Disbursement Conditions (subsection 3.8). Please refer to the Disbursement Condition(s) in the Financing Agreement (Schedule 2, Section IV.B.1). II. Withdrawal of Financing Proceeds (i) Authorized Signatures (subsection 3.1). An authorized signatory letter in the Form attached (Attachment 2) 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 1818 H Street, N.W. Washington, DC 20433 United States of America Attention: Lilia Burunciuc, Regional Country Director, Central Asia (ii) Applications (subsections 3.2 - 3.3). Please provide completed and signed (a) applications for withdrawal, together with supporting documents, and (b) applications for special commitments, together with a copy of the commercial bank letter of credit, to the address indicated below: The World Bank Radnicka cesta 80, 9th floor Zagreb, HR - 10 000 Croatia Attention: Loan Department (iii) Electronic Delivery (subsection 3.4) The Association may permit the Recipient to electronically deliver to the Association Applications (with supporting documents) through the Association's Client Connection, web-based portal. The option to deliver Applications to the Association by electronic means may be effected if: (a) the Recipient has designated in writing, pursuant to the terms of subparagraph (i) of this Section, 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. If the Association agrees, the Association will provide the Recipient with SIDC for the designated officials. Following which, the designated officials may deliver Applications electronically by completing Form 2380, which is accessible through Client Connection (https://clientconnection.worldbank.org). 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. (iv) Terms and Conditions of Use of SIDC to Process Applications. 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 ("Terms and Conditions of Use of Secure Identification Credentials") provided in Attachment 3; and (b) to cause such official to abide by those terms and conditions. (v) Minimum Value ofApplications (subsection 3.5). The Minimum Value of Applications for Direct Payments, Reimbursements and issuance of Special Commitments is: US$ 1,000,000 for works and US$ 100,000 for goods, non-consulting and consultants' services. (vi) Advances (sections 5 and 6). * Type of Designated Account (subsection 5.3): Segregated 2 * Currency of Designated Account (subsection 5.4): US Dollar (US$) * Financial Institution at which the Designated Account Will Be Opened (subsection 5.5): a commercial bank / financial institution acceptable to the Association. * Ceiling (subsection 6.1): US$5,000,000 III. Reporting on Use of Financing Proceeds (i) Supporting Documentation (section 4). Supporting documentation should be provided with each application for withdrawal as set out below: * For requests for Reimbursement and for reporting eligible expenditures paid from the Designated Account: 0 Statement of Expenditure in the form attached (Attachment 4) for all expenditures / contracts; and o A designated account reconciliation statement (Attachment 5) and related bank statements. * For requests for Direct Payment: records evidencing eligible expenditures, e.g., copies of receipts, supplier invoices. (ii) Frequency of Reporting Eligible Expenditures Paid from the Designated Account (subsection 6.3). At least quarterly, or more frequently if needed. IV. Other Important Information For additional information on disbursement arrangements, please refer to the Disbursement Handbook available on the Association's public website at https://www.worldbank.org and its secure website "Client Connection" at https://clientconnection.worldbank.org. Print copies are available upon request. If you have not already done so, the Association recommends that you register as a user of the Client Connection website (https://clientconnection.worldbank.org). 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. All Recipient officials authorized to sign and deliver Applications by electronic means are required to register with Client Connection before electronic delivery can be effected. For more information about the website and registration arrangements, please contact the Association by email at . 3 If you have any queries in relation to the above, please contact Jasna Mestnik, Finance Officer, at imestnikgworldbank.org, using the above reference. Yours sincerely, Lilia Burunciuc Country Director Europe and Central Asia Region Attachments: 1. World Bank Disbursement Guidelines for Investment Project Financing, dated February 2017 2. Form for Authorized Signatures 3. Terms and Conditions of Use of Secure Identification Credentials in connection with Use of Electronic Means to Process Applications and Supporting Documentation, dated March 1, 2013 4. Form of "Statement of Expenditure" 5. Form of Designated Account Reconciliation Statement Prepared by: Jasna Mestnik, Finance Officer - WFALN Cleared with and cc: Nikolai Soubbotin, Country Lawyer - LEGLE Usbrand de Jong, Task Team Leader - GWADR Cc with copies: Project Implementation Unit for World Bank projects Under the Ministry of Agriculture and Water Resources I a, Labzak Street Tashkent 100128 Republic of Uzbekistan piu.fwrmp@gmail.com 4 Attachment I Disbursement Guidelines for Investment Project Financing February 2017 WORLD BANKGROUP 5 CONTENTS PAGE 1. Purpose 1 2. Disbursement Methods I 3. Withdrawal of Funds from Financing Account 2 4. Supporting Documentation Requirements 3 5. Designated Accounts 4 6. Terms and Conditions Applicable to Advances 6 7 Ineligible Expenditures 7 8. Refunds 8 6 1. Purpose 1.1 The purpose of the Disbursement Guidelines for Investment Project Financing (the guidelines) is to set out the World Bank's procedures and requrements for disbursement of finds in projects.1 Specifically- the guidelines set out (a) the different arrangements used by the World Bank to disburse finds from the Financing Account2. (b) the requirements for withdrawal from the Financing Account. (c) the types of supporting documentation that the borrower may be required to provide to demonstrate the use of fuinds of the Financing Account for eligible expenditures- (d) the criteria for establishing Designated Accounts , (e) the terms and conditions applicable to advances, (f) the types of disbursement-related actions that the World Bank may take if it determnes that funds of the Financing Account are not needed or have been used for ineligible purposes, and (g) the disbursement consequence of refunds. 2. Disbmsement Methods 2.1 The World Bank establishes disbursement arrangements for a project in consultation with the borrower taking into consideration. among other things. an assessment of the borrower's financial management and procurement arrangements, the cash flow needs of the project. and its disbursement expenence with the borrower. Those arrangements are stated in the Financing Agreement and additional information is provided in the Disbursement Letter.' 2.2 The World Bank disburses funds from the Financing Account established for each loan- to or on the order of the borrower. using one or more of the following disbursement methods. as determined by the World Bank. In d document the World Bank meludes the Internatanal Bank fr Reacan-rtxan and DeLlopment (IBRD) and the Intesnational Developmenit Association (IDA). whether actmg on it own accosmt ar m the capaczy as admmr&ataor of trust funds funded by donors- Finawnrg or Bank loan mlurdes any loan. credt or grant made by the World Bank from its own esoures. from tust Funds filded by other donor: and admmEtered by the World Bank O from a combnmatu of these. Barrvr m am a boarowr or recipient of a Bank loan for a project and any odher entty inoh-ed in the mplemnertaon ofthe project financed by the Bank loa These gundelmes apply to all Bank loans for an lnvstment Project Fmang They do not apply to Propam-Far-Result Fmancing and De-mlopment Pohey Fmancm or for grants made by the World Bank from trust finds funded by other donor and admamasered by the World Bank when excepaonally the aen of the agreement with the donor provide for different requmnmuts . The Financzng Accoint refer- to the account opened by the World Bank m it acconmg system m the mme of the borrower to huch Ae amonit of the fiancg as credted. A Deignwaed -rert as a bank account into whch the Wodd Bank mar depost amunts wthdrawn franthe Fnancing Account to pay fir ehpble expenddures as they are mcuned The Fvnannggreement as the agreement between the World Bank and the Barrower provding fr 1A Bank loan. The DLburement Leter contans addmaonal m5truca descring the disburement arrangement fBr withdrawing proceeds from the Financig Account under a particular Eimenen prject. 7 (a) Reimbursement The World Bank may reimburse the borrower for expenditures eligible for financing pursuant to the Financing Agreement (eligible expenditures) that the borrower has prefinanced from its ovn resources. (b) Advance The World Bank may advance finds from the Financing Account into a Designated Account of the borrower to fiance eligible expenditures as they are incued and for winch supporting documents wtil be provided at a later date (see section 5. Designated Accounts). (c) Direct Payment The World Bank may make payments. at the borrower's request. directly to a third party (for example. supplier. contractor. or consultant) for eligible expenditures. (d) Special Commitment The World Bank may pay amounts to a third party for eligible expenditures under special commitments entered into. in riting. at the borrower s request and on tems and conditions agreed between the World Bank and the borrower. 3. Withdrawal of Funds from the Financing Account 3.1 Authoried Signatures. Before finds from the Financing Account may be withdrawn or committed, the authorized representative of the borrower (as designated in the Financing Agreement) must furnish to the World Bank electronically through the Client Connection website (btp: clientconnection-workdbankorg). or through an authorized signatory designation letter, the name(s) of the official(s) authorized (a) to sign and submit applications for withdrawal and applications for a special commitment (collectively Applications), and (b) to receive Secure Identification Credentials (SIDC) from the World Bank The borrower must notify the World Bank of any changes in signature authority. either electronically in Client Connection or through an updated authorized signatory designation letter. 3.2 Terms wad Conditions of Ise of Secure Identfication Credentials ISD)Q to P ocess Applications. By designating officials to use SIDC and by choosing to submit the applications electronically. the borrower confirns its agreement to abide by the terms and conditions of use of SIDC-6 3.3 Applications. Applications must be provided to the World Bank in such form as is required to access funds from the Financing Account and must include such information as the World Bank may reasonably request 3.4 Applications and necessary supporting documents (see section 4 Supporting Documentation Requirements) should be submitted to the World Bank electronically in a Tem and coandinom of use of SIDC am promed m the Dsbur;sentw Letteu 8 manner and on terms and conditions specified by the World BanL through the Client Connection website at http: chentconecti oLn.u dbank.org- The World Bank may. at its discretion, temporarily or permanently, disallow the electronic submission of applications by the borrower. The World Bank may permit the borrower to complete and submit applications manually in paper form. Paper applications forms can be found in the Client Connection website at http:: cientconnection.uldbanLr! or may be obtained from the World Bank upon request. 3.5 Minitrinm Vahie of-Applications. The World Bank establishes a minimun value for applications for reimbursement. drect payment. and special commitment- The World Bank reserves the right not to accept applications that are below% such mininmn value. 3.6 Loan Disbrarsing Period The World Bank processes Applications only after the Financing Agreement has been declared effective in accordance with the terms of the Fmancing Agreement- The expenditures for wich the Applications are made must be: (a) Paid for on or after the date of the Financing Agreement, or alternatively. in the case of projects that permit retroactive financing- on or after the earlier date specified in the Financing Agreement for that purpose, and (b) Incurred on or before the closing date specified or referred to in the Financig Agreement (the Closing Date). except as otherwise specifically areed with the World Bank- 3.7 The loan disbursing period ends on the final date established by the World Bank for receipt by the World Bank of applications for withdrawal and supporting documentation (the Disbursement Deadline Date). The Disbursement Deadline Date may be the same as the Closing Date- or up to four months after the Closing Date. To support orderly project completion and closure of the Fmiancing Account. the World Bank does not accept applications for withdrawal or supporting documentation received after the Disbursement Deadline Date. The borrower must promptly inform the World Bank of any expected implementation delays or exceptional administrative issues before those dates. The World Bank notifies the borrower of any exception that the World Bank may make to the Disbtursement Deadline Date 3.8 Disburseent Conditions. If the Financing Agreement contains a disbursement condition for a specific expenditure category the World Bank will disburse funds from the Financing Account for that category only after the disbursement condition has been fulfilled and the World Bank has notified the borrower to that effect. 4. Supporting Documentation Requirements 4.1 The borrower provides supporting documentation to the World Bank to show that funds from the Financing Account have been or are being used to finance eligible expenditures. 9 4.2 For special commitments. the commercial bank provides its confumation directly to the World Bank that conditions for the release of payments committed for withdrawal have been met. 4.3 ripes of Supporting Docnentation. The World Bank requires either copies of the original documents evidencing eligible expenditures (Records) or summary reports of expenditure (Summary Reports) in such form and substance as the World Bank may specify. Records include such documents as invoices and receipts. A Summary Report may be either (a) the interim unaudited financial report required under the Financing Agreement (Interim Financial Report) or (b) a statement of expenditure suimmaning eligible expenditures paid during a stated period (Statement of Expenditure). In all cases. the borrower is responsible for retaing the original documents evidencing eligible expenditures and making them available for audit or inspection. 4.4 The World Bank determines the types of supporting documentation that the borrower must provide. takmg into consideration the disbursement method used. The supporting documentation may be the following: (a) For applications for Reimbursement (i) Interim Financial Reports, (ii) Statements of Expenditure or (iu) Records (b) For reporting on the use ofAdmances: (i) Interim Financial Reports, (ii) Statements of Expenditure. or (ii) Records (c) For applications for Direct Payments: (i) Records such as copies of supplier invoices: (i) a bank guarantee for advance or retention payment (d) For applications for Special Commitment Copy of the Letter of Credit (with valid expry date) that the commercial bank known as the opening bank, has issued. For payment, a SWIFT (Society for Worldwide Interbank Telecommunication) message must be sent by the commercial bank and (e) Any other supportig documentation that the World Bank may request by notice to the borrower or as specified in the Disbursement Letter. 4.5 Failure to Provide Audited Financial Statements. If the borrower fails to provide any of the audited financial statements required in accordance with, and within the period of time specified in, the Financing Agreement. the World Bank may. at its discretion. decide not to accept applications for withdrawal supported by Summary Reports. even if such reports are accompanied by Records. 5. Designated Accounts 10 5.1 The borrower may open one or more designated accounts into which the World Bank may. at the borrower's request, deposit amounts withdrawn from the Fimancing Account for the purpose of paying for eligible expenditures as they are incurred. Before the World Bank authorizes establishment of a Designated Account. the borroww must have adequate administrative capability. internal controls. and accounting and auditing procedures to ensure effective use of the Designated Account. 5.2 The World Bank may decide not to permit the use of Designated Accounts in new projects if the borrower has failed to refund undocumented adhances in the Designated Account of any other loan to, or guaranteed by- the borrower within two months after the Disbursement Deadline Date for that loan. 5.3 ripe ofDesignated Account A Designated Account may be established i one of two ways - as a segregated account or pooled account as appropriate for the project concerned, and as determined and notified by the World Bank (a) Segregated Account An account of the borrow into which only proceeds of the Financing Account may be deposited (b) Pooled Account An account of the borrower into which the finds from the Financing Account and Binds of other financing for the project (such as borrower resources or financing by other development partners) may be deposited- 5.4 Currepn of the Designated Account Designated Accounts must be in a currency acceptable to the World Bank. In countries that have a freely convertible currency. Designated Accounts may be held in the currency of the borrower or any freely convertible currency. The World Bank may also agree to local currency Designated Accounts when- among other things- the country's currency (even if not freely convertible) is stable and the expenditures to be financed are primarily in local currency The borrower bears all nsks associated with foreign exchange fluctuations between (a) the currency of denomination of the loan and that of the borrouw's Designated Account and (b) the currency of denomination of the borrower s Designated Account and the currency or currencies of project expenditures. 5.5 Financial Instiftion. Designated Accounts must be opened and maintained in a financial institution selected by the borrower and acceptable to the World Bank. A financial institution is acceptable if it meets all the following requirements: (a) It is financially sound: (b) It is m good standing (c) It is authorized to maintain the Designated Account in the currency agreed between the World Bank and the borrower (d) It is audited regularly, and receive satisfactory audit reports: A fianral tunn may be the country's central bank. a local development bank or a coarcial bank. 11 (e) It can execute a large number of transactions promptly (f) It can satisfactorily perform a wide range of banking services (g) It can provide a detailed statement of the Designated Account: (h) It is part of a satisfactory correspondent banking network (i) It charges reasonable fees for its sen-ices. 5.6 The World Bank reserves the right not to transfer funds to a financial institution if that institution has asserted or asserts a claim to set off. seize, or attach the proceeds of any Bank loan on deposit in a Designated Account maintained by the institution. 6. Terms and Conditions Applicable to Advances 6.1 Ceiling. The World Bank notifies the borrower of the maxmnan amount of funds from the Financing Account that may be on deposit in a Designated Account (the Ceiling). The World Bank. at its discretion- may establish the Ceiling as either (a) a fixed amount, or (b) an amount that is adjusted from time to tune during project implementation on the basis of periodic firecasts of project cash flow needs 6.2 Applicadions for Advances. The borrower may apply for an advance in an amount up to the Ceiling less the aggregate amount of those advances previously received by the borrower for winch the borrower has not yet provided supporting documentation. Normally. to support orderly closure of the Financig Account. the World Bank does not advance finds from the Financing Account into the Designated Account after the Closing Date. 6.3 Frequenin of Reporing Eligible Expenditures Paid from the Designated Account. The borrower reports on the use of funds from the Financing Account advanced to the Designated Account at intervals specified by the World Bank by notice to the borrower. The borrower must ensure that all amounts deposited into the Designated Account are accounted for and that their use is reported prior to the Disbursement Deadline Date. After that date, the borrower must refind to the World Bank any advances still unaccounted for or remaining in the Designated Account. 64 Mirhholding Advances. The World Bank is not required to make any deposit into the Designated Account if any of the following conditions apply- (a) The World Bank detemunes that payment of the deposit would result in exceeding the Ceding (see subsection 6.2. Applications for Advances): (b) The World Bank is not satisfied that the borrower's planned pro)ect expenditures justify the deposit. The World Bank may adjust the amount it deposits or withhold further deposits into the Designated Account until it is satisfied that the financial needs of the project %arrant fixther deposits 12 (c) The borrower fails to take the action required pursuant to the determinations made by the World Bank under subsections 71 and 7-2 of these guidelines, (d) The borrower fails to provide any of the audited financial statements required m accordance with, and within the period of time specified in, the Financing Agreement: (e) The World Bank determines that all further withdrawals of funds from the Financing Account should be made by the borrower directly from the Financing Account: or (f) The World Bank has notified the borrower of its intention to suspend in whole or in part the borrowe's right to make withdrawals from the Financine Account. 6.5 Eycess Advances. If at any tune the World Bank determines that any amount deposited in the Designated Account will not be required to co'er fitter payments for eligible expenditures (the Excess Amount), it may. at its discretion. require the borrower to take one of the followAing two disbursement-related actions: (a) Provide evidence satisfactory to the World Bank within a period specified by the World Bank that the Excess Amount will be used to pay for eligible expenditures- If the evidence is not fimshed uithin the time period specdfied the borrower must promptly refund the Excess Amount to the World Bani or (b) Refund the Excess Amount promptly The borrower must perform the action requested promptly after receiving notification from the World Bank that it must do so. 7. Ineligible Expenditures .1 Ineligible Ependihhres Generally If the World Bank determines that any amount of the funds from the Financing Account was used to pay for an expenditure that is not eligible pursuant to the Financing Agreement (an ineligible expenditure). the World Bank may. at its discretion- require the borrower to take one of the followig two disbursement-related actions. without prejudice to the Bank's right to exercise remedies under the General Conditionss or Standard Conditions' and Financing Agreement. (a) Refund an equivalent amount to the World Bank (b) Exceptionally. provide substitute documentation evidencing other eligible expenditures. The borrower must perfon the action requested promptly after receivmg notification from the World Bank that it must do so. The General Codrion set forth cetam tennr and candaon genralv apphcable to IBRD loam and IDA aedrs and pants The Standard Condtons set forth ceram tenm and condatmn that ae generall apphcable to tUt find and advances made by. the Bank under the Praect Preparation Facility. 13 7.2 Ineligible Ependitures Paid fromr the Designated Account. If the World Bank detennines that any payment out of the Designated Account was not justified by the evidence funished to the World Bank or was made for an ineligible expenditure. the World Bank may. at its discretion- reqture the borrower to take one of the following actions. (a) Provide the additional evidence requested by the World Bank (b) Deposit an equivalent amount into the Designated Account (c) RefUnd an equivalent amount to the World Bank (d) Exceptionally. provide substitute documentation evidencing other eligible expenditures. The borrower must perform the action requested promptly after receivmg notification from the World Bank that it must do so. 8. Refunds 8.1 Borrower Decision to RefinL The borrower may upon notice to the World Bank refund all or any amount of the loan on deposit in the Designated Account to the World Bank for credit to the Financing Account. 8.2 Consequence of Refunds. The World Bank shall determine whether refunds made to the World Bank in accordance with sections 6 and - and subsection 8.1 of these guidelnes will be credited to the Financing Account. Refunds of funds into the Financing Account may result in (a) swap termination fees (b) unwinding costs for amounts for wich the interest rate basis or cumency has been comvnted or hedged. (c) both 8.3 Other Rights and Obligations Unaffected by Refunds. Refumds of loan amounts do not affect other legal rights and obligations of the parties under the Financmg Agreement 14 Attachment 2 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: [Country Director] Re: Credit No. 6083-UZ (Ferghana Valley Water Resources Management Project - Phase II) I refer to the Financing Agreement ("Agreement") between the International Development Association (the "Association") and the Republic of Uzbekistan (the "Recipient"), dated , providing the above Financing. For the purposes of Section 2.03 of the General Conditions as defined in the Agreement, any I [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 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[individually] 4[jointly], to deliver Applications, and evidence in support thereof on the terms and conditions specified by the Association. 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. 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. 15 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] 16 Attachment 3 Terms and Conditions of Use of Secure Identification Credentials in connection with Use of Electronic Means to Process Applications and Supporting Documentation March 1, 2013 The World Bank (Bank)' will provide secure identification credentials (SIDC) to permit the Borrower2 to deliver applications for withdrawal and applications for special commitments under the Agreement(s) and supporting documentation (such applications and supporting documentation together referred to in these Terms and Conditions of Use as Applications) to the Bank electronically, on the terms and conditions of use specified herein. SIDC can be either: (a) hardware-based (Physical Token), or (b) software-based (Soft Token). The Bank reserves the right to determine which type of SIDC is most appropriate. A. Identification of Users. 1. The Borrower will be required to identify in a completed Authorized Signatory Letter (ASL) duly delivered to and received by the Bank each person who will be authorized to deliver Applications. The Bank will provide SIDC to each person identified in the ASL (Signatory), as provided below. The Borrower shall also immediately notify the Bank if a Signatory is no longer authorized by the Borrower to act as a Signatory. 2. Each Signatory must register as a user on the Bank's Client Connection (CC) website (https://clientconnection.worldbank.org) prior to receipt of his/her SIDC. Registration on CC will require that the Signatory establish a CC password (CC Password). The Signatory shall not reveal his/her CC Password to anyone or store or record the CC Password in written or other form. Upon registration as a CC user, the Signatory will be assigned a unique identifying account name. B. Initialization of SIDC. 1. Prior to initialization of SIDC by a Signatory, the Signatory will acknowledge having read, understood and agreed to be bound by these Terms and Conditions of Use. 2. Where a Physical Token is to be used, promptly upon receipt of the Physical Token, the Signatory will access CC using his/her account name and CC Password and register his/her Physical Token and set a personal identification number (PIN) to be used in connection with the use of his/her Physical Token, after which the Physical Token will be initialized for use by the Signatory exclusively for purposes of delivering Applications. Where a Soft Token is to be used, the Signatory will access CC using his/her account name and CC Password and set a personal identification number (PIN) to be used in connection with the use of his/her Soft Token, after which the Soft Token will be initialized for use by the Signatory exclusively for purposes of delivering Applications. Upon initialization of the SIDC, the Signatory will be a "SIDC User". "Bank" includes IBRD and IDA. 2 "Borrower" includes the borrower of an IBRD loan, IDA credit, or Project Preparation Facility advance and the recipient of a grant. 17 The Bank will maintain in its database a user account (Account) for each SIDC User for purposes of managing the SIDC of the SIDC User. Neither the Borrower nor the SIDC User will have any access to the Account. 3. Prior to first use of the SIDC by the SIDC User, the Borrower shall ensure that the SIDC User has received training materials provided by the Bank in use of the SIDC. C. Use of SIDC. Use of the SIDC is strictly limited to use in the delivery of Applications by the SIDC User in the manner prescribed by the Bank in the Agreement(s) and these Terms and Conditions. Any other use of the SIDC is prohibited. 2. The Bank assumes no responsibility or liability whatsoever for any misuse of the SIDC by the SIDC User, other representatives of the Borrower, or third parties. 3. The Borrower undertakes to ensure, and represents and warrants to the Bank (such representation and warranty being expressly relied upon by the Bank in granting SIDC) that each SIDC User understands and will abide by, these Terms and Conditions of Use, including without limitation the following: 4. Security 4.1. The SIDC User shall not reveal his/her PIN to anyone or store or record the PIN in written or other form. 4.2. The SIDC User shall not allow anyone else to utilize his/her SIDC to deliver an Application to the Bank. 4.3. The SIDC User shall always logout from CC when not using the system. Failure to logout properly can create a route into the system that is unprotected. 4.4. If the SIDC User believes a third party has learned his/her PIN or has lost his/her Physical Token he/she shall immediately notify clientconnection@worldbank.org. 4.5. The Borrower shall immediately notify the Bank at clientconnection@worldbank.org of any lost, stolen or compromised SIDC, and take other reasonable steps to ensure such SIDC are disabled immediately. 5. Reservation of Right to Disable SIDC 5.1. The Borrower shall reserve the right to revoke the authorization of a SIDC User to use a SIDC for any reason. 5.2. The Bank reserves the right, in its sole discretion, to temporarily or permanently disable a SIDC, de-activate a SIDC User's Account or both. 18 6. Care of Physical Tokens 6.1. Physical Tokens will remain the property of the Bank. 6.2. The Bank will physically deliver a Physical Token to each Signatory designated to receive one in a manner to be determined by and satisfactory to the Bank. 6.3. Physical Tokens contain delicate and sophisticated instrumentation and therefore should be handled with due care, and should not be immersed in liquids, exposed to extreme temperatures, crushed or bent. Also, Physical Tokens should be kept more than five (5) cm from devices that generate electromagnetic radiation (EMR), such as mobile phones, phone-enabled PDAs, smart phones and other similar devices. Physical Tokens should be carried and stored separate from any EMR device. At close range (less than 5 cm), these devices can output high levels of EMR that can interfere with the proper operation of electronic equipment, including the Physical Token. 6.4. Without derogating from these Terms and Conditions of Use, other technical instructions on the proper use and care of Physical Tokens are available at http://www.rsa.com. 7. Replacement 7.1. Lost, damaged, compromised (in terms of 4.5, above) or destroyed Physical Tokens will be replaced at the expense of the Borrower. 7.2. The Bank reserves the right, in its sole discretion, not to replace any Physical Token in the case of misuse, or not to reactivate a SIDC User's Account. 19 Attachment 4 Statement of Expenditures (SOE) Payments made during the period from to Credit 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 % Financed Amount Currency and Exchange Date of Remarks Name Contract Service Amount, and Date of Total Amount by Eligible Amount Paid Rate Payment Number in (CW/GO/CS/OP/TR) Contract of Invoice IBRD/IDA/TF for from Client / Brief Description Covered by Financing Designated Connection Application (5 x 6) Account (if (for Prior Applicable) Review Contracts) TOTALS Supporting documents for this SOE retained at (location) Attachment 5 DESIGNATED ACCOUNT RECONCILIATION STATEMENT LOAN/CREDIT[/PPF/COFINANCIER NUMBER ACCOUNT NUMBER WITH (BANK) I. TOTAL ADVANCED BY WORLD BANK (OR COFINANCIER) $ 2 LESS: TOTAL AMOUNT RECOVERED BY WORLD BANK - $ 3. EQUALS PRESENT OUTSTANDING AMOUNT ADVANCED TO THE SPECIAL ACCOUNT (NUMBER I LESS NUMBER 2) = $ 4. BALANCE OF SPECIAL ACCOUNT PER ATTACHED BANK STATEMENT AS OF DATE $ 5. PLUS: TOTAL AMOUNT CLAIMED IN THIS APPLICATION NO. + $ * 6. PLUS: TOTAL AMOUNT WITHDRAWN AND NOT YET CLAIMED REASON: * $ * 7. PLUS: AMOUNTS CLAIMED IN PREVIOUS APPLICATIONS NOT YET CREDITED AT DATE OF BANK STATEMENTS APPLICATION NO. AMOUNT * SUBTOTAL OF PREVIOUS APPLICATIONS NOT YET CREDITED + $ 8. MINUS: INTEREST EARNED - $ * 9. TOTAL ADVANCE ACCOUNTED FOR (NO. 4 THROUGH NO. 9) = $ 10. EXPLANATION OF ANY DIFFERENCE BETWEEN THE TOTALS APPEARING ON LINES 3 AND 9: 11. DATE: SIGNATURE: TITLE: