OFFICIAL DOCUMENTS THE WORLD BANK IBRD *IDA I WORLD BANKOROUP Ethiopia Country Office Africa Avenue, Bole Road Tel: (251-11) 5176000 Addis Abeba, Ethiopia Fax: (251-11) 6627717 December 21, 2017 Ref.: WB/CD/479/12/21/2017 H.E. Dr. Abraham Tekeste Minister Ministry of Finance and Economic Cooperation Addis Ababa Dear Dr. Abraham, Re: IDA Financing D262 - ET (General Education Quality Improvement Program for Equity) Disbursement and Financial Information Letter ("DFIL") I refer to the Financing Agreement between the Federal Democratic Republic of Ethiopia (the "Recipient") and the International Development Association (the "Association") for the above referenced Program/Operation. The General Conditions, as defined in the Financing Agreement, provides that the Recipient may from time to time request withdrawals of the Grant 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 Program specific financial reporting requirements. This letter constitutes such Disbursement and Financial Information Letter ("DFIL"), and may be revised from time to time. A. Disbursement Arrangements - Program (P4R) I. Disbursement Arrangements, Withdrawal, and Reporting of Uses of Financing proceeds. (i) Schedule 1. The table in Schedule I sets out the disbursement methods which may be used by the Recipient, conditions, information on registration of authorized signatures, processing of withdrawal applications, and instructions on documentation and reporting of advances. (ii) Withdrawal Applications. Applications for withdrawal from the Grant Account ("Withdrawal Applications") of amounts of the Financing allocated to individual Disbursement Linked Results ("DLR") may, pursuant to the provisions of Section IV of Schedule 2 of the H.E. Dr. Abraham Tekeste 2 December 21, 2017 Financing Agreement, be sent to the Association at any time after the Association has notified the Recipient in writing that it has accepted evidence of achievement of the specific DLR. (iii) WithdrawalAmount. The Withdrawal Application may be for an amount not to exceed the amount of the Financing confirmed by the Association for the specific DLR in respect of which the withdrawal is requested, as specified in the Association's notice to the Recipient. (iv) Prior Results. The Association confirms that it has received evidence satisfactory to it that the DLRs referred to in any category of the Table in the Financing Agreement have been achieved and Verified. Consequently, the Recipient may withdraw the amount of SDR 18,600,000.000 allocated to said categories after the Financing Agreement has been declared effective. (iv) Advances and Recovery ofAdvances. The Recipient may, in accordance with provisions of the Financing Agreement, request advances of amounts of the Financing allocated to DLRs that have not yet been achieved using the Form attached (Attachment 1). The aggregate amount of all such advances made in respect of amounts allocated to DLRs from the Financing may not exceed the equivalent of a total of SDR 28,500,000.000 of the Financing. The Association records an amount of the advance as disbursed for an achieved DLR ("recovered") after it has notified the Recipient of its acceptance of the evidence of achievement of the DLR for which the advance was provided. The amount so reclassified becomes available for further advances in accordance with the preceding paragraph. (vi) Electronic Delivery. Section 10.01 (c) of the General Conditions. The Association may permit the Recipient to electronically applications (with supporting documents) through the Association's web-based portal (https://clientconnection.worldbank.org) "Client Connection". This option may be effected if the officials designated in writing by the Recipient who are authorized to sign and deliver Applications have registered as users of "Client Connection". The designated officials may 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 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. 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. H.E. Dr. Abraham Tekeste 3 December 21, 2017 II. Financial Reports and Audits. Section 5.09 of the General Conditions. (i) Financial Reports. The Recipient, will prepare and furnish to the Association no later than ninety (90) days after the end of each Ethiopian fiscal semester, interim unaudited financial reports ("IFR") for the Program covering said semester (6 months). (ii) Audits. The Recipient, will have the Program financial statements related to the Program audited in accordance with the provisions of Section 5.09 of the General Conditions by an auditor with qualifications, experience and terms of reference satisfactory to the Association. Each audit of the Financial Statements must cover the period of one Ethiopian fiscal year of the Recipient, or such other period agreed with the association, commencing with the period 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. B. Disbursement Arran2ements - Project I. Disbursement Arrangements, Withdrawal and Reporting of Financing Proceeds. (i) Disbursement Arrangements: * Instructions (Schedule 1). The table provides the disbursement methods, 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. * Minimum Value ofApplications (subsection 3.5). The Minimum Value of Applications for Reimbursement, Direct Payment and Special Commitment is USD 100,000 equivalent. * Disbursement Deadline Date, DDD (subsection 3.7). The DDD is four (4) months after the Closing Date. Any changes to this date will be notified by the Association. II. Financial Reports and Audits. Section 5.09 of the General Conditions. * (i) Financial Reports. The Recipient, will prepare and furnish to the association no later than sixty (60) days after the end of each Ethiopian fiscal quarter, interim unaudited financial reports ("IFR") for the Project covering said quarter. * (ii) Audits. Recipient, will have the Project financial statements related to the Project audited in accordance with the provisions of Section 5.09 of the General Conditions by an auditor with qualifications, experience and terms of reference satisfactory to the Association. Each audit of the Financial Statements must cover the period of one Ethiopian fiscal year of the Recipient, or such other period agreed with the association, 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 Bank not later than six (6) months after the end of such period. H.E. Dr. Abraham Tekeste 4 December 21, 2017 C. Other Important Information. For additional information on disbursement arrangements, please refer to the Loan Handbook available on the Association 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 Loan, and retrieve related policy, financial, and procurement information. For more information about the website and registration arrangements, please contact the Association by email at cIientconnection@worldbank.or . If you have any queries in relation to the above, please contact Maiada Kassem, Finance Officer at wfaldafr(@wordlbank.org, with copy to Stella Chepkorir, Finance Analyst at schepkorir@worldbank.org, using the above reference. Sincerely, 1Uiop/- Carolyn Turk Country Director for Ethiopia, Sudan and So - Africa Region Attachments 1. Form of Authorized Signatory Letter 2. Interim unaudited Financial Report (IFR) - Separate for P4R and IPF 3. Sample Form for Advances - for P4R 4. 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 5 Schedule 1: Disbursement Provisions-P4R Country FEDERAL DEMOCRATIC REPUBLIC Closing Date Section IV.B.4 of Schedule 2 to OF ETHIOPIA the Loan Agreement. Grant D2620 Recipient FEDERAL DEMOCRATIC REPUBLIC Number OF ETHIOPIA Name of the Program General Education Quality Disbursement Six months after the closing date. Improvement Program for Equity Deadline Date Disbursement Methods Methods Supporting Documentation Reimbursement (financing of Yes Confirmation issued by the World Bank achieved results) Advance Yes Request in the format provided in Attachment 2 of the DFIL Financial Institution - National Bank of Ethiopia (NBE) Ceiling Not Applicable Name Currency USD Amount Not Applicable Please provide completed and signed (a) applications for withdrawal, together with supporting documents, to the address indicated below: The World Bank Delta Centre, 13th Floor, Menengai Road Nairobi, Kenya Tel: +254 20 2936 000 Attention: Loan Operations-Anthony Okwako Not applicable Not applicable 6 Schedule 1 :Disbursement Provisions-IPF Disbursement Methods Methods Available Supporting Documentation Section 2 (**) Subsections 4.3 and 4.4 (**) Direct Payment Yes Copy of Records Reimbursement Yes Interim unaudited Financial Report Designated Account: Yes Interim unaudited Financial Report Special Commitments Yes Copy of Letter of Credit Segregate for IDA grant Variable- Forecast for 2 quarters as Type Ceiling provided in the quarterly Interim Financial Report approved by TTL Financial Institution - Name National Bank of Ethiopia (NBE) Currency USD Frequency of Reporting, Same as IFRs-Quarterly Amount Not Applicable Subsection 6.3 (**)I Please provide completed and signed (a) applications for withdrawal, together with supporting documents, to the address indicated below: The World Association Delta Centre, 13th Floor, Menengai Road Nairobi, Kenya Tel: +254 20 2936 000 Attention: Loan Operations-Anthony Okwako Not applicable. Not applicable. 7 Attachment 1 Form of Authorized Signatory Letter [Letterhead] Ministry of Finance [Street address] [DATE] The World Bank 1818 H Street, N.W. Washington, D.C. 20433 United States of America Attention: [Country Director] Re: IDA Financing D262-ET General Education Quality Improvement Program for Equity I refer to the Financing Agreement between the International Development Association (the "Association") and [name of Recipient] (the "Recipient"), dated , providing the above Financing. For the purposes of Section 2.02 of the General Conditions as defined in the Agreement, any '[one] of the persons whose authenticated specimen signatures appear below is authorized on behalf of the Recipient to sign applications for withdrawal 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] [jointly], to deliver Applications, and evidence in support thereof on the terms and conditions specified by the Association. s[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 I 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 tojointly sign Applications, if so, please indicate the actual number. Please delete this footnote in final letter that is sent to the Bank. I 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. I 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 Bank 8 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 ofSecure 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 / [Position] 9 Attachment 2 Interim unaudited Financial Report (IFR) General Education Quality Improvement Program for Equity IPF component Content Discussion of financial performance, notes and explanations Consolidated statement of sources and use of funds Statement of use of funds by components Statement of designated accounts by account/donor Supporting schedules 10 Ministry of Finance and Economic Cooperation General Education Quality Improvement Program for Equity - IPF component Statement of project sources & uses of funds for the qiuarter ended (in Ethiopian Birr/USD) Actual Planned _ Variance Particulars Current Year to Cumulativ Current quarter Year to Cumulative Current Year to Cumulative quarter date (in e (in ETB)/1 date (in (to date) quarter date (in (to date) (in ETB)/I ETB)/II (to date) ETB)/II (in ETB)/II(a) (in ETB)/I ETB)/II (in ETB)/ll(a) (in ETB)/ 11(a) Opening Balance Designated accounts /III - - Balance at Federal and Regional (cash/bank balances plus receivables minus payables) Total opening balance -_- Add: sources IDA -_- Total source for the period - - Total available fund for the - period Less: project expenditures - - (Annex 1) Total available fund less total - expenditures Foreign exchange - - difference/IV Net fund available - - Ending balance Designated Accounts - - IDA (designated USD - - account Balance at federal and regional (cash/bank balances plus receivables minus payables) v Total ending balance -_- Notes I - The amounts are drawn from the ledger accounts of the project II - Fiscal year of the project. 11(a) - Project to date (for the whole life of the project) III - The following rates were used for conversion: 1US Dollar=XX Birr (separately for opening and closing balances of DA) IV - The gain or loss on exchange rate is determined by the rate prevailing at the reporting date. V - Schedule for designated accounts, receivable and payables for GEQIP-E should be provided as a note to the IFR Prepared by Signature Date Sources of fund is converted at the exchange rate of prevailing at the collection date. 12 Ministry of Finance and Economic Cooperation General Education Quality Improvement Program for Equity - IPF component Statement of uses of fund by project activit for the uarter ended (in Ethiopia Birr/USD) Particulars Actual/ii Planned Variance Current Year to date Cumulative Current Year to Cumulative to Current Year Cumulative quarter/i to date/ii quarter/i date date/ii quarter/i to date to date/ii Expenditures (applications) Component 1: Enhanced capacity for delivering sustained results 1.1 National policy framework for preprimary education 1.2 ICT for education Sub Total Component 1 Component 2: Emergency response preparedness 2.1 Strategy for restoring education services in response to disaster 2.2 Contingency emergency response component Sub Total component 2 Component 3: GEQIP-E management and evaluation 3.1 program management 3.2 program evaluation Sub Total component 3 /i - Amounts are drawn from the ledger account of the project /ii - These are project to date figures /iii - agrees with the total quarterly expenditure noted in the above table /iv - the numbers in this column are obtained by multiplying the total expenditure by the financing share of each partner noted in the previous column. Prepared by Approved by Signature Signature Date Date 13 Ministry of Finance and Economic Cooperation General Education Quality Improvement Program for Equity - IPF component Expenditures forecasts and cash requirements (in Ethiopia Birr & USD) for the 6 month, from--------------------- to Particulars Cash requirement Cash requirement Cash requirement Cash requirement for the for the quarter for the quarter for the six months six months ending xx ending ending ending XX ETB ETB ETB/i USD/i Component 1: Enhanced capacity for delivering sustained results 1.1 National policy framework for preprimary education 1.2 ICT for education Sub-total Component I Component 2: Emergency response preparedness 2.1 Strategy for restoring education services in response to disaster 2.2 Contingency emergency response component Sub-total Component 2 Component 3: GEQIP-E management and evaluation 3.1 Program management 3.2 Program evaluation Sub-total Component 3 Less; DA balance as of the reporting quarter IDA Total ending balance Cash requirements for the next six months Contribution from donors IDA Total contribution from donors /i - exchange rate ruling on the reporting dates are used to convert ETB to USD and vice versa /ii - Comprises expenditures for which contracts have been signed, goods received but not paid, other commitments made but not settled, which are not included under forecasts. Prepared by Approved by Signature Signature Date Date 14 Ministry of Finance and Economic Cooperation General Education Quality Improvement Program for Equity - IPF component Designated account activity statement for the quarter ended in USD Line description IDA MDTF GPE Government Total Opening balance as at the quarter end/i Donors advance during the quarter Refund to donors from DA during the quarter Less: transfers out of the DA to the treasury during the quarter DA closing balance as at the quarter end carried forward to the next period Bank balance per bank statement Difference /i - enter the amount shown in the previous IFR Prepared by Approved by Signature Signature Date Date 15 Ministry of Finance and Economic Cooperation General Education Quality Improvement Program for Equity - IPF component Fund flow statement Pooled Bank a/c ...............(Birr) as of Birr Birr Balance brought forward Cash transfer from IDA -- Cash transfer from MDTF -- Cash transfer from GPE Cash transfer from GOE Fund available for use Fund transfer Detail by implementing entity Total transfer Bank service charge Incoming and outgoing Total Transfer & bank service Charge Cash at Bank Prepared by Approved by Signature Signature Date Date 16 Ministry of Finance and Economic Cooperation General Education Quality Improvement Program for Equity - IPF component Statement of fund flow (IDA) designated dollar account no., the period, from ........... USD Birr Opening balance Add: receipt Grant fund received as at Credit fund received Fund available for use Less: transfer and expenditure Transfer to pool birr account as at Expenditures Bank services Charges Total transfer & expenditure Closing balance Actual exchange rate of ......... Closing balance/leger birr account Add gain or (Loss) on foreign exchange gain Balance after gain of foreign exchange Prepared by Approved by Signature Signature Date Date 17 Ministry of Finance and Economic Cooperation General Education Quality Improvement Program for Equity - IPF component Statement of cash movement ........... Region, the period, from ... At woreda At regional office Total in the region Birr Birr Birr Opening balance Add: cash transfers Transfers from MoFEC Fund available for use Less: expenditure Component 1: Enhanced capacity for delivering sustained results 1.1 National policy framework for preprimary education 1.2 ICT for education Component 2: Emergency response preparedness 2.1 Strategy for restoring education services in response to disaster 2.2 Contingency emergency response component Component 3: GEQIP-E management and evaluation 3.1 program management 3.2 program evaluation Total expenditure Closing balance Breakdown of closing balance Cash and Bank balances Receivables Payables Others Total closing balance Prepared by Approved by Signature Signature Date Date 18 Attachment 2 General Education Quality Improvement Program for Equity Interim Unaudited Financial Report (PforR Component) Content Discussion of financial performance, notes and explanations Consolidated statement of sources and use of funds Statement of use of funds by sub-programs Statement of designated accounts by account Supporting schedules 19 Ministry of Finance and Economic Cooperation General Education Quality Improvement Program for Equity Statement of total expenditure - block grant and special purpose grant for the quarter ended (in Ethiopian Birr) For the quarter ended For the fiscal year ended Cumulative for Program life Block grant expenditure Recurrent non-salary expenditure* Special purpose grant School grant Text book procurement Teachers development program Grand Total * This figure is to be taken from the ESPES IFR for the quarter 20 Ministry of Finance and Economic Cooperation General Education Ouality Improvement Program for Equity Statement of Program sources and use of funds - special purpose 2rant for the quarter ended (in Ethiopian Birr/USD) Actual Planned Variance Particulars Current Year to Cumulative Current Year to Cumulative Current Year to Cumulative quarter date (in (to date) quarter date (in (to date) quarter date (in (to date) (in ETB)/II (in ETB)/ (in ETB)/II (in ETB) (in ETB)/II (in ETB) ETB)/I 11(a) ETB)/I /11(a) ETB)/I /11(a) Opening Balance - Designated - Accounts/Ill Balance at federal and regional (cash/bank balances plus receivables minus payables) Total opening balance - Add: sources Federal government - - Regional government - - IDA - - MDTF - - GPE -_ Total source for the - period Total available fund - for the period Less: Program - expenditures (Annex 1) 21 Total available fund - less total expenditures Foreign exchange - - difference/IV Net fund available - - Ending balance Designated Accounts - IDA designated - - USD account MDTF designated - - USD account GPE designated - - account Balance at federal and - regional (cash/bank balances plus receivables minus payables) v Total ending balance Notes I - The amounts are drawn from the ledger accounts of the Program II - Fiscal year of the Program 11(a) - Program to date (for the whole life of the project) III - The following rates were used for conversion: 1US Dollar-XX Birr (separately for opening and closing balances of DA) IV - The gain or loss on exchange rate is determined by the rate prevailing at the reporting date. V - Schedule for designated accounts, receivable and payables for GEQIP-E should be provided as a note to the IFR Sources of fund is converted at the exchange rate of prevailing at the collection date. Prepared by Signature Date 22 Ministry of Finance and Economic Cooperation General Education Quality Improvement Proaram for Equity Statement of use of funds by Proram activity - special purpose g!rant for the quarter ended (in Ethiopian Birr/USD) Particulars Actuallii Planned Variance Current Year to Cumulative Current Year Cumulative Current Year Cumulative quarter/i date to date/ii quarter/i to to date/ii quarter/i to date to date/ii date Expenditures (applications) School grant Text book procurement Teachers development program Grand total of the Program / - Amounts are drawn from the ledger account of the Program /ii - These are Program to date figures /iii - agrees with the total quarterly expenditure noted in the above table /iv - the numbers in this column are obtained by multiplying the total expenditure by the financing share of each partner noted in the previous column. Prepared by Approved by Signature Signature Date Date 23 Ministry of Finance and Economic Cooperation General Education Quality Improvement Program for Equity Designated account activity statement for the quarter ended in USD Line description IDA MDTF GPE Government Total Opening balance as at the quarter end/i Donors advance during the quarter Refund to donors from DA during the quarter Less: transfers out of the DA to the treasury during the quarter DA closing balance as at the quarter end carried forward to the next period Bank balance per bank statement Difference /i - enter the amount shown in the previous IFR Prepared by Approved by Signature Signature Date Date 24 Ministry of Finance and Economic Cooperation General Education Quality Improvement Program for Equity Fund flow statement Pooled Bank a/c ...............(Birr) as of Birr Birr Balance brought forward Cash transfer from IDA -- Cash transfer from MDTF -- Cash transfer from GPE Cash transfer from GOE Fund available for use Fund transfer Detail by implementing entity Total transfer Bank service charge Incoming and outgoing Total Transfer & bank service Charge Cash at Bank Prepared by Approved by Signature Signature Date Date 25 Ministry of Finance and Economic Cooperation General Education Quality Improvement Program for Equity Statement of fund flow (IDA) designated dollar account no., the period, from USD Birr Opening balance Add: receipt Grant fund received as at Credit fund received Fund available for use Less: transfer and expenditure Transfer to pool birr account as at Expenditures Bank services Charges Total transfer & expenditure Closing balance Actual exchange rate of ......... Closing balance/leger birr account Add gain or (Loss) on foreign exchange gain Balance after gain of foreign exchange Prepared by Approved by Signature Signature Date Date 26 Ministry of Finance and Economic Cooperation General Education Quality Improvement Program for Equity Statement of fund flow (MDTF) special dollar account no., the period, from GBP Birr Opening balance Add: receipt Grant fund received as at Fund available for use Less: transfer and expenditure Transfer to pool birr account as at Expenditures Total transfer & expenditure Closing balance Actual exchange rate of ......... Closing balance/leger birr account Add gain or (Loss) on foreign exchange gain Balance after gain of foreign exchange Prepared by Approved by Signature Signature Date Date 27 Ministry of Finance and Economic Cooperation General Education Quality Improvement Program for Equity Statement of cash movement ........... Region, the period, from ............. At woreda At regional office Total in the region Birr Birr Birr Opening balance Add: cash transfers Transfers from MoFEC Fund available for use Less: expenditure Sub-program 1 1.1 1.2 Sub-program 2 2.1 2.2 Sub-program 3 Sub-program 4 Total expenditure Closing balance Breakdown of closing balance Cash and Bank balances Receivables Payables Others Total closing balance Prepared by Approved by Signature Signature Date Date 28 Attachment 3 Sample Form for Advances [Ministry/Implementing Agency Letterhead] [Date] Loan Department - [name of Regional Center] The World Bank [address of regional center] Attention: [name of regional center team lead] Subject: Re: IDA Financing D262-ET General Education Quality Improvement Program for Equity - Request for Advance Dear Sir/Madam, We refer to the Financing Agreement between the International Development Association (the "Association") and [name of Recipient] (the "Recipient") dated [Date of Signing] providing for the above Financing. In accordance with the provisions of the Disbursement Letter and Schedule 2, Section IV, B.3 of the Financing Agreement, to support the implementation of the above Program and to facilitate the achievement of the planned results, we request an Advance in the amount of [insert amount] 1. [We request that the Advance be disbursed in [currency requested for disbursement] equivalent to the Total Advance Requested above.]2 We acknowledge that the amount disbursed will be charged to the Financing Account in the currency of the Financing at the rate of exchange in effect at the time of disbursement. Sincerely, [Name, Position]3 The Proposed Advance should be in the currency of the DLI/DLR as set out in the disbursement table in the legal agreement, and in accordance with provisions in the Disbursement Letter. Normally, this is the currency of commitment of the credit. 2 Use this text to designate the currency of the Advance if it should be different from the currency set out in the disbursement table in the legal agreement. I To be signed by a representative of the implementing/coordinating agency of the recipient, OR by the person(s) authorized on behalf of the recipient to sign applications for withdrawal under the financing as set out in the applicable Authorized Signatory Letter. 29 Attachment 4 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 '"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. 30 delivering Applications. Upon initialization of the SIDC, the Signatory will be a "SIDC User". 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 1. 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. 6. Care of Physical Tokens 31 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. 32 Prepared by: Maiada Kassem -WFALA Cleared with and cc: Margaret Png - Country Lawyer Hiroshi Saeki - Task Team Leader