JUNAID KAMAL AHMAD Country Director India, South Asia Region November 26, 2021 Mr. Sukhbir Singh Controller of Aid Accounts and Audit Department of Economic Affairs Ministry of Finance 5th Floor, “B” Wing Janpath Bhawan, Janpath New Delhi, India 110 001 Re: Loan No. 9295-IN (Shimla-Himachal Pradesh Water Supply and Sewerage Services Improvement Program Shimla) Additional Instructions: Disbursement and Financial Information Letter Mr. Sukhbir Singh, I refer to the Loan Agreement between India (the “Borrower”) and the International Bank for Reconstruction and Development (the “World Bank”) for the Shimla-Himachal Pradesh Water Supply and Sewerage Services Improvement Program, Loan 9295-IN). The General Conditions, as defined in the World Bank’s 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 (DFIL), and such additional instructions as the World Bank may specify from time to time by notice to the Borrower. The General Conditions also provide that the DFIL may set out Program specific financial reporting requirements. This letter constitutes such DFIL. 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, considerations on disbursement conditions, information on registration of authorized signatures, processing of withdrawal applications, deadlines, and instructions on documentation. (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, and Schedule 3 to 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 disbursement-linked indicators through specific DLRs. (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. The Program will not finance prior results. (v) 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 effected after the officials designated in writing by the Borrower who are authorized to sign and deliver Withdrawal Applications for the Shimla-Himachal Pradesh Water Supply and Sewerage Services Improvement Program Loan 9295-IN 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 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 Statements and Audits. Section 5.09 of the General Conditions. IFRs – The Interim Financial Reports will not be required for the Program. Audits – Each audit of the Financial Statements must cover the period of one fiscal year (April to March) of the Borrower, commencing with the fiscal year in which the first withdrawal was made. The annual Program’s financial statements will be audited by Chartered Accountants appointed by the Comptroller and Auditor General of India, and the report will be submitted to the Bank within nine (9) 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 World Bank’s website (http://www.worldbank.org/) and “Client Connection”. The World 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, please contact the World Bank by email at clientconnection@worldbank.org. If you have any queries in relation to the above, please contact us through the service account AskLoans@WorldBank.org, using the reference Loan No. 9295-IN Shimla-Himachal Pradesh Water Supply and Sewerage Services Improvement Program. Yours sincerely, __________________________ Junaid Kamal Ahmad Country Director India Attachments 1. Form of Authorized Signatory Letter Schedule 1 : Disbursement Provisions Basic Information Country India Closing Date Borrower India Section IV.B.4. of Schedule 2 to the Loan Loan IBRD 9295-IN Agreement. Number Name of the Shimla-Himachal Pradesh Water Supply and Sewerage Disbursement Six months after the Program Services Improvement Program Deadline Date closing date. Disbursement Methods and Supporting Documentation Disbursement Method Type and Supporting Documentation Reimbursement Financing of DLIs -Through achieved DLRs stated in the Confirmation issued by the Bank, and which will be part of each Withdrawal Application - All withdrawals from the Loan Account will be deposited by the Bank into an account established by CAAA at the Reserve Bank of India (RBI). Authorized Signatures The form for Authorized Signatories Letter is provided in Attachment 1 of this letter Withdrawal and Documentation Applications The Authorized Signatory Letter (ASL) will be sent electronically to the Bank, and if in paper, it will be sent to the following address: The World Bank Group No. 11, Taramani Main Road Taramani, Chennai – 600 113, India Attention: TF and Loan Operations Unit (WFACS) All Withdrawal Applications and its supporting documentation will be electronically sent through the World Bank’s system Clie ntConnection. Other Instructions  Program, program and Expenditure Framework. Paragraphs 22, and 26 (including Table 1) of the main text, and paragraph 4, 5, 6, 7, 35, 40, 41, 42 of Annex 4 of PAD, provide information on the programs and the expenditure framework. This information should be detailed in the Operations Manual to be acceptable to the Bank.  Disbursement Table. Section IV.A.2. of Schedule 2, and Schedule 3 to the Loan Agreement, provide detailed information on the Disbursement Linked Indicators, Disbursement Linked Results and Allocated Amounts and calculation of disbursable amounts applicable to the Program of the Bank. Attachment 1 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: IBRD Loan 9295-IN. Shimla-Himachal Pradesh Water Supply and Sewerage Services Improvement Program I refer to the Loan Agreement between the International Bank for Reconstruction and Development (the “World Bank”) and [name of borrower] (the “Borrower”), 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 under this Loan. For the purpose of delivering Applications to the World 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 World Bank. 5 [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 World Bank 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 World 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 World 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 World 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 World Bank. by electronic means. In full recognition that the World 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 of Electronic Means to Process Applications and Supporting Documentation (“Terms and Conditions of Use of SIDC”), the Borrower represents and warrants to the World Bank that it will cause such persons to abide by those terms and conditions.] This Authorization replaces and supersedes any Authorization currently in the World Bank records with respect to this Agreement. [Name], [position] Specimen Signature: ____________________ [Name], [position] Specimen Signature: ____________________ [Name], [position] Specimen Signature: ____________________ Yours truly, / signed / ______________ [Position] 5 Instruction to the Borrower: Add this paragraph if the Borrower wishes to authorize the listed persons to accept Secure Identification Credentials and to deliver Applications by electronic means; if this is not applicable, please delete the paragraph. Please delete this footnote in final letter that is sent to the World Bank.