OFFICIAL DOCUMENTS THE WORLD BANK IBRD*IDA I WORLDBANKGROUP Date: ?1I 1,2Z) 2,1--' His Excellency Olavo Avelino Garcia Correia Minister of Finance Ministry of Finance Av. Amilcar Cabral Praia, Cabo Verde Re: IDA 6182-CV Access to Finance for Micro, Small and Medium-Sized Enterprises Project Additional Instructions: Disbursement and Financial Information Letter. Excellency, I refer to the Financing Agreement between the Republic of Cabo Verde (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 [Grant] [Credit]2' 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, 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. The Association may permit the Recipient to electronically deliver 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 -2- 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. 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, please contact the Association by email at clientconnection@.worldbank.org. If you have any queries in relation to the above, please contact Jose Janeiro, Senior Finance Officer atjjaneiro@worldbank.org, with copy to Juvenia Cohen, Finance Analyst atjcohen2@worldbank.org using the above reference. Yours incerely, Louise J Cord Country irector Senegal, Cabo Verde, Guinea- issau, Mauritania, The Gambia Africa Region -3- Attachments 1. Form of Authorized Signatory Letter 2. Interim unaudited Financial Report (IFR) With copies: Olavo Avelino Garcia Correia Av. Amilcar Cabral Praia, Cabo Verde o1avo.a.correiamf.gov.cv Unidade de Gestdo de Projetos Especiais (UGPE) Avenida China, Edificio Tribunal Constitucional, 30 Andar Chd d'Areia - Cidade da Praia, Ilha de Santiago C.P. no 145, Republica de Cabo Verde nuno.gomes@mf.gov.cv -4- Schedule I : Disbursement Provisions Country Republic of Cabo Verde Closing Date January 3 1, 2023 Credit Recipient Number Name of the Project Access to Finance for Micro, Small Disbursement Four months after the closing date. and Medium-Sized Enterprises Deadline Date Project Subsection 3.7 ** Disbursement Methods Methods Supporting Documentation Section 2 (**) Subsections 4.3 and 4.4 (* *) Direct Payment Yes (i) For eligible expenditures to be paid from Disbursement Category 1 and 2 of the Financing Agreement, copy of records (ii) With respect to Disbursement Categories 3 and 4, respectively the first and second capitalization of the PCG Fund, of the Financing Agreement, the Association, upon request from the Recipient, will transfer proceeds of this credit into the Partial Credit Guarantee Fund Account. This account will be exclusively for proceeds of this credit. In addition to the fulfilment of the conditions of disbursement for categories 2 and 3, as per notification to the Recipient, and before any disbursement can be made, the Recipient must formally notify the Association of the Financial Institution, which must be acceptable to the Association, and the account number, for the capitalization of the PCG Fund, for purposes of implementation of Part A (iv) of Schedule I of the Financing Agreement. This is the only disbursement method available for Disbursement Categories 2 and 3 of the Financing Agreement. Reimbursement Yes For eligible expenditures to be claimed from Disbursement Category I and 2 of the Financing Agreement: Interim unaudited Financial Report (IFR) in the form provided in Attachment 2 of this letter; this disbursement method is not available for expenditures to be financed from Disbursement Categories 3 and 4 of the Financing Agreement. Designated Account Yes For eligible expenditures to be claimed from Disbursement Category I and 2 of the Financing Agreement: Interim unaudited Financial Report (IFR) in the form provided in Attachment 2of this letter ; this disbursement method is not available for expenditures to be financed from Disbursement Categories 3 and 4 of the Financing Agreement. Special Commitments No N/A One Segregated Designated Account, managed by MoF, will be Variable Type opened for eligible expenditures to be claimed from Ceiling Disbursement Category 1 and 2 of the Financing Agreement Financial Institution - To be established at a financial institution acceptable to the Currency USD Name Association -5- Frequency of Reporting Quarterly Amount Variable, depending on a cash flow Subsection 6.3 (**) forecast for the 2 subsequent quarters For Disbursement Categories I and 2, the minimum value of applications for Reimbursement and Direct Payment is an amount equivalent to 20% of the outstanding advance made to the Designated Account. The World Bank, Loan Operations 13th Floor Delta Center Menengai Road Upper Hill P.O. Box 30577-00100 Nairobi Kenya Tel +254202936000 N/A N/A -6- [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: Credit' No. 6182-CV (Access to Finance for Micro, Small and Medium-Sized Enterprises Project) 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. I 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. -7- 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 - Form of Interim Financial Reports (IFRs)] UGPE- Unidade de Gestio de Projetos Especiais (PIU) ACCESS TO FINANCE FOR MICRO, SMALL, AND MEDIUM-SIZED ENTERPRISES PROJECT Sources and uses of funds - Quarter ended on US$ Expenditure Cumulatile forecasts Sources of funds Quarter ended on next 6 months Actual Planned Variance Actual Planned Variance Opening balances IDA Funds Others Total funds received Plus : sources of funds IDA Others Balance available Minus: Uses of funds per component Partial Credit Guarantee Fund to Enhance MSME Finance Technical Assistance for MSMEs Upgrades to Improve Credit Information Systems Institutional Capacity Building and Project Implementation Minus: Uses of funds by disbursement category Goods, non-consulting services and consulting services for Parts A(i) to A(iii) of the Project Goods, non-consulting services, consulting services and Incremental Operating Costs for the Project (except for Part A of the Project) First Capitalization of the PCG Fund under Part A(iv) of the Project Second Capitalization of the PCG Fund under Part A(iv) of the Project Refund of Preparation Advance Total of expenditure Remaining balance IDA funds Others Closing balances [Attachment 2 - Form of Interim Financial Reports (IFRs)] UGPE- Unidade de Gestio de Projetos Especiais (PIU) ACCESS TO FINANCE FOR MICRO, SMALL, AND MEDIUM-SIZED ENTERPRISES PROJECT Uses of funds per component - Quarter ended on US$ Components Quarter ended on Cumulative Comments PAD /life of Revised PA[ Project Actual Planned Variance Actual Planned Variance Partial Credit Guarantee Fund to Enhance MSME Finance Activity 1 Activity 2 Activity 3 Sub-total Technical Assistance for MSMEs Activity 1 Activity 2 Activity 3 Sub-total Upgrades to Improve Credit Information Systems Activity 1 Activity 2 Activity 3 Sub-total Institutional Capacity Building and Project Implementation Activity 1 Activity 2 Activity 3 Sub-total Total of project expenditures [Attachment 2 - Form of Interim Financial Reports (IFRs)] UGPE- Unidade de Gestio de Projetos Especiais (PIU) ACCESS TO FINANCE FOR MICRO, SMALL, AND MEDIUM-SIZED ENTERPRISES PROJECT Uses of funds per disbursement category - Quarter ended on US$ Disbursement category Quarter ended on Cumulative Comments PAD /life of Revised PAL Project Actual Planned Variance Actual Planned Variance Goods, non-consulting services and consulting services for Parts A(i) to A(iii) of the Project Activity 1 Activity 2 Activity 3 Sub-total Goods, non-consulting services, consulting services and Incremental Operating Costs for the Project (except for Part A of the Project) Activity 1 Activity 2 Activity 3 Sub-total First Capitalization of the PCG Fund under Part A(iv) of the Project Sub-total Second Capitalization of the PCG Fund under Part A(iv) of the Project Sub-total Refund of Preparation Advance Activity 1 Activity 2 Activity 3 Sub-total Total of project expenditures [Attachment 2 - Form of Interim Financial Reports (IFRs)1 SUMMARY STATEMENT OF DESIGNATED ACCOUNT UGPE- Unidade de Gest5o de Projetos Especiais (PIU) ACCESS TO FINANCE FOR MICRO, SMALL, AND MEDIUM-SIZED ENTERPRISES PROJECT Summary statement of Designated Account (CD) Uses of funds per component - Quarter ended on Project name: ACCESS TO FINANCE FOR MICRO, SMALL, AND MEDIUM-SIZED ENTERPRISES PROJECT Credit IBRD/IDA No Number of Bank name account: Currency US$ First Part 1. Cumulative advances at the end of the current period 2. Cumulative advances at the end of the period covered by the report 3. Outstanding advances (linel minus line2) Second part 4. Opening balance of the Designated Account at the beginning of the period 5. Cumulative adjustments 6. Advances received from Ida 7. Sum of lines 5 and 6 8. Outstanding advances 9. Closing balance of the Designated Account 10. Cumulative adjustments 11. Expenditures of the period 12. Variance Third part 13. Amount to be paid by IDA 14. Minus : Closing Balance of the Designated Account after adjustments 15. Direct payments 16. Cash forecasts for the next 6 months