The World Bank 1818 H Street NW. J2. o73-1nna - INTERNATIONAL BANK FOR RECONSTRUCTION AND DE'ELOPMENT Washington, D.C. 20433 Cable Address: INTBAFRAI INTERNATIONAL DEVELOPMENT ASSOCIATION U.SA. Cable Address: INDEVAS H.E. Franqois Marie Maurice Gervais Rakotoarimanana Minister of Finance and Budget Ministry of Finance and Budget BP 61 Antananarivo 101 Madagascar Re: Grant No. TF0AO 104 (Readiness Preparation Proposal) Additional Instructions: Disbursement Letter Excellency: I refer to the Grant Agreement ("Agreement") between the Republic of Madagascar ("Recipient ) and the International Bank for Reconstruction and Development ("World Bank"), acting as trustee of tl Readiness Fund for the FCPF for the above-referenced Readiness Preparation Activities of even dati. herewith. The Agreement provide s that the World Bank may issue additional instructions regarding t] , withdrawal of the proceeds of Grint No. TFOA0104 ("Grant"). This letter ("Disbursement Letter"), s revised from time to time, constitul es the additional instructions. The attached World Baik Disbursement Guidelines for Projects, dated May I, 200 ("Disbursement Guidelines") (Atta.hment 1), are an integral part of the Disbursement Letter. The mann in which the provisions in the Disbi irsement Guidelines apply to the Grant is specified below. Sections aj 2 subsections in parentheses below refer to the relevant sections and subsections in the Disburseme i Guidelines and, unless otherwise defined in this letter, the capitalized terms used have the meanin ascribed to them in the Disbursemnt Guidelines. 1. Disbursement Arrangements (i) Disbursement Methods (section 2). The following Disbursement Methods may be used under the Grat * Reimbursement * Advance * Direct Payment (ii) Disbursement Deadline Date (subsection 3.7). The Disbursement Deadline Date is four (4) mont, after the Closing Date specified in the Agreement. Any changes to this date will be notified by the Woj c Bank. (iii) Disbursement Conditions (s bsection 3.8). Please refer to the Withdrawal Condition(s) in Secti-i 3.02 of the Agreement. I. Withdrawal of Grant Proceeils (i) Authorized Signatures (subsee ion 3.1). A letter in the Form attached (Attachment 2) should be furnished to the World Bank at the address indicat ' below providing the name(s) and specimen signature(s) of the official(s) authorized to submit Applicatioi The World Bank 1818 H Street, N.W. Washington, DC 20433 United States of America Attention: Mark Lundell (ii) Applications (subsections 3.2 - 3.3). Please provide completed applications for withdrawal, together with supporting documents, through the World Bank's Client Connection. web-based portal. following the instructions for electronic delivery. In the case the recipient does not have internet access, the World Bank may permit the delivery of applications for withdrawal, together with supporting documents, in accordance with subsection 3.3, to the following address: The World Bank. Loan Department 13th Floor Delta Center Menengai Road Upper Hill P.O. Box 30557-00 100 Nairobi Kenya Tel +254 20 2936 000 Attention: Loan Department (iii) Electronic Delivery (subsection 3.4) The World Bank 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 World Bank 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 World Bank 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 World Bank agrees, the World Bank 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 (httjlienconection.worldbank.or). The Recipient may continue to exercise the option of preparing and delivering Applications in paper form. The World Bank reserves the right and may, in its sole discretion, temporarily or permanently disallow the electronic delivery of Applications by the Recipient. (1y) Terms and Conditions of Use of SIDC to Process Applications. By designating officials to accept 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 SIDC") provided in Attachment 3; and (b) to deliver the Terms and Conditions of Use of SIDC to each such official and to cause such official to abide by those terms and conditions. (v) Minimum Value of Applications (subsection 3.5). The Minimum Value of Applications for Reimbursements and Direct Payments is USD 200,000. (vi) Advances (sections 5 and 6). * Type of Designated Account/s] (subsection 5.3): Segregated * Currency of DesignatedAccount/s] (subsection 5.4): USD * Financial Institution a, which the Designated Account/s] Will Be Opened (subsection i..) Banque Malgache de I'Cic6an Indien (BMOI) - Analamahitsy * Ceiling (subsection 6.1) USD 600,000 III. Reporting on Use of Grant Proceeds (i) Supporting Documentation (.section 4). Supporting documentation should be provided with ea 1 application for withdrawal as set o it below: * For requests for Reimbursement: " Statement of Expenditure in the form attached (Attachment 4) o Records eviden ing eligible expenditures (e.g., copies of receipts, supplier invoices) ; payments againt contracts/payments valued at USD 200,000 or more; and o List of payment; against contracts that are subject to the World Bank's prior review. i the form attache d (Attachment 5) * For reporting eligible e openditures paidfrom the Designated Account: o Statement of ENpenditure in the form attached (Attachment 4) o Records eviden.:ing eligible expenditures (e.g., copies of receipts, supplier invoices) i payments again-t contracts/payments valued at JSD 200,000 or more; o List of payments against contracts that are subject to the World Bank's prior review, a the form attachtd (Attachment 5); and o A reconciliation of the Designated Account, in the form attached (Attachment 6), wit I copy of the ban, statement. * For requests for Direct Payment: records evidencing eligible expenditures, e.g., copies a receipts, supplier invoices (ii) Frequency of Reporting Elig,ble Expenditures Paid from the Designated Account (subsection 6. ) Quarterly or more often if required. IV. Other Important Informaticn For additional information on disbursement arrangements, please refer to the Disbursem, r Handbook available on the WorlI Bank's public website at ht; wwN%%.worldbank.org and its sec r website "Client Connection" at 1 Print copies are available ur ) i request. From the Client Connect on website. you will be able to download Applications, monitor the nur real-time status of the Grant, and ietrieve related policy, financial, and procurement information. If you have not already done so, the World Bank recommends that you register as a user of ie Client Connection website (higp: clienteennecon.worldbankorg). From this website you will be abc t download Applications, monitor the near real-time status of the Grant, and retrieve related policy, financ . . 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 affected. For more information about the website and registration arrangements, please contact the World Bank by email at . If you have any queries in relation to the above, please contact Finance Officer at WFALD-TF by sending an email to WFALD-TF@worldbank.org and using the trust fund number as a reference. Very truly yours, INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVFLOPMENT Acting as Trustee of the Readiness Fund of theorest Carbon Partnership Facility By Mark Lundell 4country Director for the Republic of Madagascar Attachments / 1. World Bank Disbursement Guide for Projects, dated May 1, 2006 2. Form for Authorized Signatures 3. Terms and Conditions of Use ofSecure Identification Credentials in connection with Use ofElectronic Means to Process Applications and Supporting Documentation, dated March 1, 2013 4. Form of Statement of Expenditures 5. Form of Payments Against Contracts Subject to the World Bank's Prior Review 6. Designated Account Reconciliation Statement Cc with copies: Son Excellence Monsieur Beboarimisa Ralava Ministre de I'Environnement, de l'Ecologie, de la Mer et des For8ts 101 Antananarivo R6publique de Madagascar Monsieur: Mamitiana Andriamanjato Coordonnateur National Bureau National de Coordination REDD+ (BNCR) Enceinte la Direction Gdn6rale des Forits BP 243 Nanisansa Antanarivo, Madagascar ngamamitianal 01 0@yahoo.fr Attachment Terms and Conditions of Use of Secure Identification Credentials in coanection with Use of Electronic Means to Process Applications and Supporting Documentation March 1, 2013 The World Bank (Bank)6 will provide secure identification credentials (SIDC) to permit the Borrower' 1. deliver applications for withdrawal and applications for special commitments under the Agreement(s) ar l supporting documentation (such applications and supporting documentation together referred to in the ,: Terms and Conditions of Use as Aplications) to the Bank electronically, on the terms and conditions < use specified herein. SIDC can be either: (a) hardware-based (Physical Token), or (b) software-based (Soft Token). The Bar k reserves the right to determine whi< h 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) du i delivered to and received by the Bank each person who will be authorized to deliver Application . The Bank will provide SICC to each person identified in the ASL (Signatory), as provided belo,. The Borrower shall also immediately notify the Bank if a Signatory is no longer authorized by tIl Borrower to act as a Signal ory. 2. Each Signatory must register as a user on the Bank's Client Connection (CC) websi,e (hp l.entconmnection.w rldbank.org) prior to receipt of his/her SIDC. Registration on CC w I require that the Signatory establish a CC password (CC Password). The Signatory shall not reve iI his/her CC Password to anyone or store or record the CC Password in written or other form. Up( n registration as a CC user, t ie Signatory will be assigned a unique identifying account name. B. Initialization of SIDC. I. Prior to initialization of SIDC by a Signatory, the Signatory will acknowledge having rea:, understood and agreed to ie 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 Signato will access CC using his/he!r account name and CC Password and register his/her Physical Toki n and set a personal identifi-,ation number (PIN) to be used in connection with the use of his/&. Physical Token, after wh ch the Physical Token will be initialized for use by the Signato exclusively for purposes of delivering Applications. Where a Soft Token is to be used. . t Signatory will access CC using his/her account name and CC Password and set a persor a identification number (PI) to be used in connection with the use of his/her Soft Token, after whi [ the Soft Token will be ini ialized for use by the Signatory exclusively for purposes of delveriir Applications. Upon initiali ration of the SIDC, the Signatory will be a -SIDC User". The Bank w I maintain in its database a aser account (Account) for each SIDC User for purposes of managii 1Bank" includes IBRD and IDA. "Borrower" includes the borrower oi an IBRD loan, IDA credit, or Project Preparation Facility advance and the recipient of a grant. 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. I. 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 clieitconnection a w%orldhank.ore. 4.5. The Borrower shall immediately notify the Bank at clieniconnectionia \koridbank.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 6.1. Physical Tokens will remain the property of the Bank. 8 6.2. The Bank will phys'cally deliver a Physical Token to each Signatory designated to recei' one in a manner to be detei mined by and satisfactory to the Bank. 6.3. Physical Tokens coitain delicate and sophisticated instrumentation and therefore should 1I handled with due care, ane should not be immersed in liquids, exposed to extreme temperature ., crushed or bent. Also, Physical Tokens should be kept more than five (5) cm from devices di I generate electromagnetic radiation (EMR), such as mobile phones, phone-enabled PDAs, sm i phones and other similar divices. Physical Tokens should be carried and stored separate from at y EMR device. At close range (less than 5 cm), these devices can output high levels of EMR th 1 can interfere with the prop,r operation of electronic equipment, including the Physical Token. 6.4. Without derogating from these Terms and Conditions of Use, other technical instructions < a 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 e replaced at the expense of I he Borrower. 7.2. The Bank reserves :he right, in its sole discretion, not to replace any Physical Toker. in t .e case of misuse, or not to reactivate a SIDC User's Account. Attachment 4 Statement of Expenditures (SOE) Payments made during the period from to Date: Application No.: TF No.: SOE No.: 1 2 3 4 5 6 7 8 9 10 11 Total amount of Amount Paid c Name and Address o Brief Description of 8 Ttaot ofExpenditure E 7 o Cntrctr, Contract, Invoice or GosWrk,expenditure ; Amount From z of Contractor, -Goods, Works, 0~ .2 mutFo Purchase order No. & y EV c E Supplier or Service Services or other covered by Eligible for esignated a. - Provider Date (or other ref.) Expenditure application (net a Financing Account (if Qo of retention) any) TOTALS Supporting documents for this SOE retained at:(insert location) 10 Attachment : Paymients Made during Reporting Period Against Contacts Subject to the World Bank's Prior Review Date of WB's Non WB's SI r: of Objection Amount Paid to Amt P i I o Contract Contract Contract to Supplier during Suppliej c u ng Number Supplier Date Amount Contract Period Per 10 Attachment 6 DESIGNATED ACCOUNT RECONCILIATION STATEMENT TRUST FUND 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 DESIGNATED 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: TITILE: * ALL ITEMS SHOULD BE INDICATED ON THE BANK STATEMENT 12