03-Jun-2020 Date: _____________ H. E. Ilyas Moussa Dawaleh Minister of Economy and Finance in charge of Industry Ministry of Economy and Finance in charge of Industry Djibouti City Republic of Djibouti Re: IDA Credit 6666-DJ (Additional Financing for Development Response to Displacement Impacts Project in the Horn of Africa) Additional Instructions: Disbursement and Financial Information Letter. Your Excellency; I refer to the Financing Agreement between REPUBLIC OF DJIBOUTI (the “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 Credit amounts from the Credit 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 Credit Funds, and Reporting of Uses of Credit 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 Credit 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 Designated Account. (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 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 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 and 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 must prepare and furnish to the Association 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. (ii) Audits. Each audit of the Financial Statements must cover the period of one fiscal year of the Recipient, commencing with the fiscal year in which the first withdrawal was made. The audited Financial Statements for each such period must be furnished to the Association not later than six (6) months after the end of such period. 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 Applications, monitor the near real-time status of the Credit, 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 Association by email at AskLoans@WorldBank.org using the above reference. Yours sincerely, ______________________________ Marina Wes Country Director Djibouti, Egypt and Yemen MENA Region Attachments 1. Form of Authorized Signatory Letter 2. Statement of Expenditure (SOE) 3. Designated Account Reconciliation Statement Schedule 1 : Disbursement Provisions Basic Information Country Republic of Djibouti Closing Date Section III.B.2. of Schedule 2 to the Recipient Ministry of Economy and Finance in Financing Agreement. charge of Industry Grant/Credit 6666-DJ Name of the Project Additional Financing for Disbursement Four months after the closing date. Number Development Response to Deadline Date Displacement Impacts Project in the Subsection 3.7 ** Horn of Africa Disbursement Methods and Supporting Documentation Disbursement Methods Methods Supporting Documentation Section 2 (**) Subsections 4.3 and 4.4 (**) Direct Payment Yes Copy of records Reimbursement Yes Statement of Expenditure (SOE) in the format provided in Attachment 2 of the DFIL Advance (into a Designated Yes • Statement of Expenditure (SOE) in the format provided in Attachment 2 of the DFIL Account) • Designated Account Reconciliation Statement in the format provided in Attachment 3 of the DFIL Special Commitments Yes Copy of Letter of Credit Designated Account (Sections 5 and 6 **) Type Segregated Ceiling Fixed Financial Institution - Bank Of Africa – Mer Rouge USD Currency Name Frequency of Reporting Monthly 750,000 Amount Subsection 6.3 (**) Minimum Value of Applications (subsection 3.5) The minimum value of applications for Reimbursement, Direct Payment and Special Commitment is equivalent to 20 percent of the Designated Account outstanding advance. 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 **) 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 Withdrawal Applications: The World Bank 1818 H Street, N.W. Washington, D.C. 20433 United States of America Attention: Marina Wes, Country Director for Djibouti All Withdrawal Applications and its supporting documentation will be electronically sent via the Association’s web-portal “Client Connection”. ** Sections and subsections relate to the “Disbursement Guidelines for Investment Project Financing”, dated February 2017. Attachment 1 – Form of Authorized Signatory Letter/ [Letterhead] Ministry of Finance [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. 6666-DJ Development Response to Displacement Impacts Project in the Horn of Africa 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. 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 / ______________ 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 Article Supplier’s Name Type of Good or Service Currency and Currency and % Financed Amount Currency and Exchange Date of Remarks (CW/GO/CS/OP/TR) / Total Total Amount of by Eligible for Amount Paid Rate Payment Brief Description Amount of Invoice Covered IBRD/IDA/TF Financing (5 x from Contract by Application 6) Designated Account (if Applicable) TOTALS Supporting documents for this SOE retained at ___________________________________________ (location) Attachment 3: Designated Account Reconciliation Statement LOAN/CREDIT/PPF/COFINANCIER NUMBER ______________ ACCOUNT NUMBER ______________ WITH (BANK) __________________________ 1. TOTAL ADVANCED BY WORLD BANK (OR COFINANCIER) _______________________ 2 LESS: TOTAL AMOUNT RECOVERED BY WORLD BANK - _______________________ 3. EQUALS PRESENT OUTSTANDING AMOUNT ADVANCED TO THE DESIGNATED ACCOUNT (NUMBER 1 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: ______________________________