13-Aug-2020 Date: _____________________ Honorable Samuel D. Tweah, Jr. Minister, Ministry of Finance and Development Planning Ministry, Ministry of Finance and Development Planning Monrovia, Liberia Re: IDA Grant No. D5060-LR and TF0B3178 (Public Financial Management Reforms for Institutional Strengthening Project & Additional Financing for Public Financial Management Reforms for Institutional Strengthening Project) Additional Instructions: Disbursement and Financial Information Letter IDA Restated and Additional Financing Trust Fund Honorable Minister: I refer to the Financing Agreements between the Republic of Liberia (the “Recipient”) and the International Development Association (the “Association”), dated August 28, 2019, and to the Grant Agreement between the Republic of Liberia (the “Recipient”) and the International Development Association (“World Bank), acting as of the Public Financial Management Reforms for Institutional Strengthening Project Multi-Donor Trust Fund, for the above-mentioned Project. The General Conditions and the Standard Conditions, as defined in the Financing Agreement and the Grant Agreement, provide that the Recipient may from time to time request withdrawals of Grant amounts from the Grant Accounts 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 and Standard 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. This DFIL is the first restatement to such document dated August 28, 2019, to introduce the Trust Fund financing. Any previous DFIL version is no longer valid and is superseded in entirety by this version. 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 Grants is specified below. (i) Disbursement Arrangements  (ii) General Provisions (Schedule 1). The table in Schedule 1 sets out the disbursement methods which may be used by the Recipient, and conditions, 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. -2- The Recipient will 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 affected 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 will 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 Borrower encounters legal limitations), and which were previously agreed with the Association. 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, 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, or such other period agreed to by the association. The audited Financial Statements for each such period of the project 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 [Grant] [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, ______________________________ Khwima Nthara Country Manager, Liberia Africa Region Attachments 1. Form of Authorized Signatory Letter 2. Interim Financial Reports (IFRs) -3- Schedule 1 : Disbursement Provisions Basic Information Country Republic of Liberia Closing Date Parent IDA: Section III.B.5. of Recipient Republic of Liberia Schedule 2 of the FA AF TF: Section III.B.2. of Schedule Parent IDA 2 of the GA Grant D5060-LR Name of the Project Public Financial Management Disbursement Four months after the closing date. AF TF TF0B3178 Reforms for Institutional Deadline Date Number Strengthening Project & Additional Subsection 3.7 ** Financing for Public Financial Management Reforms for Institutional Strengthening Project 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 Interim Financial Reports (IFRs) in the format provided in Attachment 2 of the DFIL Advance (into a Designated No (until lapsed loan Interim Financial Reports (IFRs) in the format provided in Attachment 2 of the DFIL, including for Account) issue is resolved) Category 4 DLI linked. Special Commitments Yes Copy of Letter of Grant Upon resolution of the lapsed loan in the portfolio, the following will automatically apply- Designated Account (Sections 5 and 6 **) Parent: DA-A, DA-B and DA-C: Variable DA-A for all categories except cat 4 (EEP DLI linked)- Segregated Type DA-B for category 4 (EEP DLI linked)-Segregated Ceiling Additional Financing- TF: DA-C Segregated Financial Institution - DA-A, DA-B and DA-C: Ecobank Liberia DA-A, DA-B and DA-C: USD Currency Name Frequency of Reporting DA-A, DA-B and DA-C: Quarterly DA-A, DA-B and DA-C: “Two quarters Amount Subsection 6.3 (**) forecast as per IFRs” Minimum Value of Applications (subsection 3.5) The minimum value of applications for Reimbursement, Direct Payment and Special Commitment is USD 100,000 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 **) ASL and All Withdrawal Applications and its supporting documentation will be electronically sent via the Association’s system ClientConnection. Additional Instructions -4-  For Special Commitments, records evidencing eligible expenditures, e.g. copies of receipts, supplier invoices and documentary evidence of delivery and acceptance of contracted goods or services.  For DLI linked category 4:  Interim Financial Report (IFRs) in the form attached (Attachment 2) including the sheets (i) DLIs reconciliation Form, (ii) List of DLIs achieved and verified, (iii) Sources and Uses of Funds, (iv) Cash Forecast and (v) Bank Reconciliation.  Confirmation notice by task team leader that (i) one or more DLI(s) (as referred to in FA schedule 4) have been achieved and verified by the IVA according to the verification protocol set in the project’s operations manual and (ii) indicating amounts pertaining to such DLI(s). Other For category 4, i.e. DLI linked category, for financing eligible expenditures under said category : 1. Please refer to the withdrawal Condition(s) in the Financing Agreement. Section III.B. 2. For financing eligible expenditures under this category, the Recipient has furnished evidence satisfactory to the Bank that (i) EEP payments have been made as verified by the General Audit commission, in accordance with provisions of Financing Agreement Section III.B.1.c and that (ii) the relevant DLI(s) has/have been achieved. 3. Advances may be made quarterly or as deemed necessary and as approved in IFRs by the Bank’s Task Team. 4. For Documentation of advances (i.e. being converted to eligible expenditures) the Lesser of (i) EEP Payments reported in the quarterly IFRs or (ii) the amounts confirmed by TTL pertaining to DLIs which have been achieved and verified in accordance with the verificati on protocol set in project’s operations manual will be documented, as presented in the DLIs reconciliation Form (on cumulative basis). ** Sections and subsections relate to the “Disbursement Guidelines for Investment Project Financing ”, dated February 2017. -5- 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: IDA Grant No. D5060-LR and TF0B3178 (Public Financial Management Reforms for Institutional Strengthening Project & Additional Financing for Public Financial Management Reforms for Institutional Strengthening Project) Attention: _______________________, Country Director I refer to the [Grant] [Credit] Agreement (“Agreement”) between the International Development Association (the “Association”) [, acting as implementing of the]1 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 2[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, 3[each] of the persons whose authenticated specimen signatures appears below is authorized on behalf of the Recipient, acting 4[individually] 5[jointly], to deliver Applications, and evidence in support thereof on the terms and conditions specified by the Association. 1 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 2 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. 3 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. 4 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- 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 / ______________ 5 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- Attachment 2 – Interim Financial Report Implementing Agency Name of unit responsible for preparing the IFR Project Name and ID Grant No. IDA XXXXX TF No. XXXX INTERIM FINANCIAL REPORT (IFR) FOR THE QUARTER ENDED - XXXXX Prepared: Project Accountant ……………………………………………… Reviewed By: Head of Accounts…………………………………………………. -8- Project Code -: Project Name - IDA XXXX Interim Financial Report - Category 4 Eligible Expenditure Program Spending Report For the Period Ending…….. PART I - Advances Requested By Borrower Cummulative Advances Eligible Expenditure Program CoA Code Budgeted Data Actual IDA Share (capped) GoL Share IDA Cumulative to Date USD USD USD USD Notes Expenditure Elements: 1 2 3 TOTAL UNDER CATEGORY 4 - 0 - CUMMULATIVE ADVANCES DOCUMENTED DATE OUTSTANDING ADVANCES TO BE DOCUMENTED PART II - Documentation of Previous Advances (Upon Verifiction of DLRs) Documentation of Advances for the Year Project Expenditure CoA Code Actualised Exp (A) GoL Share (C.) Actual IDA Share (capped) (B) USD USD USD USD Notes Expenditure Elements: 1 2 3 Total Value of DLRs Achieved now Documented 0 Amount Advanced not yet documented 0 Outstanding Undocumented Advances 0 PART III Cumulative Status of Withdrawal Application Including Advances and Documentation Description/Application Number Date of Submission Value Date Amount (USD) Cummulative Notes Certified by: …………………..…………………. …………………..…………………. Director of Finance (xxx) Project Coordinator/ Director Date: Date: Notes The IFR is required to be submitted at least twice a year. Acutalised expenditure refers to the actual verified amount paid by the Govt, for the preceeding year by way of the Project Expenditure IDA share refers to the maximum amount that IDA can release to the Govt in a particular year Advances would be allowed only after the lapse loan issue is resolved. -9- List of DLIs achieved and verified Total Value of DLR Cummulative Amount XDR Amount Current Current Earned in Exchange Rate Equivalent Amount amount disbursed avaialble for DLIs allocated as quarter -DLIs quarter -DLIs Reporting Period (XDR/USD) to be Paid in WA under this DLI to future per FA achieved Verifed XDR date disbursements 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 -10- PROJECT IMPLEMENTING ENTITY: Implementing Agency PROJECT NAME: Project Name and ID IBRD CREDIT/GRANT NO. IDA………; TF…...... REPORT: INTERIM FINANCIAL REPORT (IFR) THIS SCHEDULE: STATEMENT OF SOURCES AND USES OF FUNDS - COMPONENT PERIOD OF REPORT: QUARTER ENDING -XXXXX REPORTING CURRENCY: US DOLLARS IDA TF Current Year to Cumulative Current Year to Cumulative Referece to Quarter Date to Date Quarter Date to Date Detail Opening cash Balances Designated Account -USD Project Bank Accounts -Local Currency (if any) Interest Account Cash-in hand - - - - TOTAL OPENING BALANCES A A - - - - - - Add: Funds Received during the quarter/Period IDA Designated Account A -USD Project Bank Accounts -Local Currency Others - Interest Earned - USD Acc TOTAL FUNDS RECEIVED DURING THE PERIOD B B - - - - - - TOTAL FUNDS AVAILABLE C=(A+B) C=(A+B) - - - - - - DA - Less: Uses of funds, by Project Components Component ACCOUNT Component 1 - Enhancing DRM Sources and Systems 1 Subcomponnet 1.1 1 Subcomponnet 1.2 1 Sub Total For Component 1 - - - - - - Component 2 -Stabilizing and Strengthening Performance of 2 Financial Controls and Systems - - - - - - Subcomponent 2.1 2 Subcomponent 2.2 2 Subcomponent 2.3 2 Subcomponent 2.4 2 Sub Total For Component 2 - - - - - - Component 3 - Improving Public-Sector Capacity for 3 Enhanced Oversight and Accountability Subcomponent 3.1 3 Subcomponent 3.2 3 Sub Total For Component 3 Component 4 - Improving Upstream and Downstream PFM 4 Systems in Selected Sectors Subcomponnet 4.1 4 Subcomponnet 4.2 4 Sub Total For Component 4 - - - - - - Component 5 - Project Management Subcomponent 5.1 5 Subcomponent 5.2 5 Sub Total For Component 5 Total Project Expenditure for the Period D D Net Cash Available E=C-D E=C-D Closing bank balances Designated Account -USD - - - - - - Project Bank Accounts -Local Currency - - - - - - Interest Account - - - - - - Total Closing Bank Balances f f - - - - - - Difference - to be explained g=e-f g=e-f - - - - - - Av Exch Rate For the Period -11- PROJECT IMPLEMENTING ENTITY: Implementing Agency PROJECT NAME: Project Name and ID IBRD CREDIT/GRANT NO. IDA………; TF…...... REPORT: INTERIM FINANCIAL REPORT (IFR) THIS SCHEDULE: STATEMENT OF SOURCES AND USES OF FUNDS - CATEGORY PERIOD OF REPORT: QUARTER ENDING -XXXXX REPORTING CURRENCY: US DOLLARS IDA TF Current Year to Cumulative Current Year to Cumulative Referece to Quarter Date to Date Quarter Date to Date Detail Opening cash Balances Designated Account -USD Project Bank Accounts -Local Currency Interest Account Cash-in hand - - - - TOTAL OPENING BALANCES A A - - - - - - Add: Funds Received during the quarter/Period Designated Account -USD Project Bank Accounts -Local Currency Others - Interest Earned - USD Acc TOTAL FUNDS RECEIVED DURING THE PERIOD B B - - - - - - TOTAL FUNDS AVAILABLE C=(A+B) C=(A+B) - - - - - - Less: Uses of funds, by Project Category Category (1) Goods, non-consulting services, consulting services, Training and Operating Costs under the Project, except for Parts 2, 3.1(d)(iii), and 1 4.2 of the Project (2) Goods, non-consulting services, Training and Operating Costs 2 under Part 2 of the Project (3) NSA Sub-Grants under Part 3.1(d)(iii) of the Project 3 (4) Eligible Expenditures Program under Part 4.2 of the Project 4 (5) Unallocated 5 (6) Refund of Preparation Advance 6 (7) Goods, non-consulting services, consulting services, Training and Operating Costs under the Project, except for Parts 1.2 (a)(ii), (a)(iii) 7 and (b), 2, 3.1(d)(iii), 4.2 and 5(b) of the Project (8) Goods, non-consulting services, consulting services, Training and 8 Operating Costs under Part 1.2(a)(ii), (a)(iii), and (b) of the Project (9) Goods, non-consulting services, Training and Operating Costs 9 under Parts 2.2, 2.3(a), 2.3(b)(ii) and 2.4 of the Project (10) Goods, non-consulting services, Training and Operating Costs 10 under Parts 2.1 and 2.3(b)(i) of the Project (11) Goods, non-consulting services, consulting services, Training 11 and Operating Costs under Part 5(b) of the Project Total Project Expenditure for the Period - By Categories D D - - - - - - Net Cash Available E=C-D E=C-D - - - - - - Closing bank balances Designated Account -USD - - - - - - Project Bank Accounts -Local Currency - - - - - - Interest Account - - - - - - Total Closing Bank Balances f f - - - - - - Difference - to be explained g=e-f g=e-f - - - - - - -12- PROJECT IMPLEMENTING ENTITY: Implementing Agency PROJECT NAME: Project Name and ID IBRD CREDIT/GRANT NO. IDA………; TF…...... REPORT: INTERIM FINANCIAL REPORT (IFR) THIS SCHEDULE: Activity and Variance Report - By Components/Sub Component (AWP &B) PERIOD OF REPORT: QUARTER ENDING -XXXXX REPORTING CURRENCY: US DOLLARS CURRENT QUARTER YEAR TO DATE CUMMULATIVE TO DATE Uses of Funds By Project Components/AWP Budget Actual Variance Budget Actual Variance Budget Actual Variance Per PAD Systemic Reasons for variances US $ US $ US $ US $ US $ US $ US $ US $ US $ US $'m Components Description Component 1 - Enhancing DRM Sources and 1 Systems 1a 1b Component 2 -Stabilizing and Strengthening 2 Performance of Financial Controls and Systems 2a 2b 2c 2d Component 3 - Improving Public-Sector Capacity 3 for Enhanced Oversight and Accountability Subcomponent 3.1 Subcomponent 3.2 Component 4 - Improving Upstream and 4 Downstream PFM Systems in Selected Sectors Subcomponnet 4.1 Subcomponnet 4.2 5 Component 5 - Project Management Subcomponent 5.1 Subcomponent 5.2 TOTAL - - - - - - - - - - - -13- PROJECT IMPLEMENTING ENTITY: Implementing Agency PROJECT NAME: Project Name and ID IBRD CREDIT/GRANT NO. IDA….......... REPORT: INTERIM FINANCIAL REPORT (IFR) THIS SCHEDULE: Designated Account Reconciliation Statement PERIOD OF REPORT: QUARTER ENDING -XXXXX REPORTING CURRENCY: US DOLLARS PART I In US$ In US$ 1. Cumulative advances to the end of current reporting period - 2. Cumulative expenditures to the end of last reporting period - 3. Outstanding advance to be accounted for (Line 1 minus Line 2) - PART II 4. Opening DA balance at beginning of reporting period, as of - 5. Add/subtract: cumulative adjustments, if any - 6. Add: Advances from World Bank during current reporting period - 7. Add Line 5 and Line 6 - 8. Outstanding advances to be accounted for (Add Line 4 and Line 7) - 9. Closing DA balance at end of current reporting period, as of - 10. Add/subtract: cumulative adjustments, if any 11. Add/subtract: Expenditures for the current reporting period - 12. Add Line 10 and Line 11 - 13. Add Line 9 and Line 12 - 14. Difference , if any (Line 8 minus Line 13) - PART III 15A. Total forecast amount to be paid by World Bank - 15B. WA # xxx sent but not yet received 15C. Total adjusted forecast amount to be paid by World Bank (Line 15A minus Line 15B) - 16. Less: Closing DA balance after adjusments - 17. Adjustments (if any) - 18. Add Line 16 and Line 17 - 19. Cash requirement from World bank for next two reporting periods - (Line 15C minus Line 18) -14- PROJECT IMPLEMENTING ENTITY: Implementing Agency PROJECT NAME: Project Name and ID IBRD CREDIT/GRANT NO. IDA….......... REPORT: INTERIM FINANCIAL REPORT (IFR) THIS SCHEDULE: Designated Account Reconciliation Statement PERIOD OF REPORT: QUARTER ENDING -XXXXX REPORTING CURRENCY: US DOLLARS PART I In US$ In US$ 1. Cumulative advances to the end of current reporting period - 2. Cumulative expenditures to the end of last reporting period - 3. Outstanding advance to be accounted for (Line 1 minus Line 2) - PART II 4. Opening DA balance at beginning of reporting period, as of - 5. Add/subtract: cumulative adjustments, if any - 6. Add: Advances from World Bank during current reporting period - 7. Add Line 5 and Line 6 - 8. Outstanding advances to be accounted for (Add Line 4 and Line 7) - 9. Closing DA balance at end of current reporting period, as of - 10. Add/subtract: cumulative adjustments, if any 11. Add/subtract: Expenditures for the current reporting period - 12. Add Line 10 and Line 11 - 13. Add Line 9 and Line 12 - 14. Difference , if any (Line 8 minus Line 13) - PART III 15A. Total forecast amount to be paid by World Bank - 15B. WA # xxx sent but not yet received 15C. Total adjusted forecast amount to be paid by World Bank (Line 15A minus Line 15B) - 16. Less: Closing DA balance after adjusments - 17. Adjustments (if any) - 18. Add Line 16 and Line 17 - 19. Cash requirement from World bank for next two reporting periods - (Line 15C minus Line 18) -15- PROJECT IMPLEMENTING ENTITY: Implementing Agency PROJECT NAME: Project Name and ID IBRD CREDIT/GRANT NO. TF….......... REPORT: INTERIM FINANCIAL REPORT (IFR) THIS SCHEDULE: Designated Account Reconciliation Statement PERIOD OF REPORT: QUARTER ENDING -XXXXX REPORTING CURRENCY: US DOLLARS PART I In US$ In US$ 1. Cumulative advances to the end of current reporting period - 2. Cumulative expenditures to the end of last reporting period - 3. Outstanding advance to be accounted for (Line 1 minus Line 2) - PART II 4. Opening DA balance at beginning of reporting period, as of - 5. Add/subtract: cumulative adjustments, if any - 6. Add: Advances from World Bank during current reporting period - 7. Add Line 5 and Line 6 - 8. Outstanding advances to be accounted for (Add Line 4 and Line 7) - 9. Closing DA balance at end of current reporting period, as of - 10. Add/subtract: cumulative adjustments, if any 11. Add/subtract: Expenditures for the current reporting period - 12. Add Line 10 and Line 11 - 13. Add Line 9 and Line 12 - 14. Difference , if any (Line 8 minus Line 13) - PART III 15A. Total forecast amount to be paid by World Bank - 15B. WA # xxx sent but not yet received 15C. Total adjusted forecast amount to be paid by World Bank (Line 15A minus Line 15B) - 16. Less: Closing DA balance after adjusments - 17. Adjustments (if any) - 18. Add Line 16 and Line 17 - 19. Cash requirement from World bank for next two reporting periods - (Line 15C minus Line 18)