23-Apr-2020 Date: _____________ Moussa Faki Mahama African Union Commission (AUC) Chairperson African Union Headquarters Roosevelt Street W2 1K19 P.O. Box 3243 Addis Ababa Ethiopia Re: African Union - IDA Grant D588-3W Harmonizing and Improving Statistics in West Africa Project Additional Instructions: Disbursement and Financial Information Letter Excellency: I refer to the Financing Agreement between African Union (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 the Grant amounts from 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 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 Credit 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, 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. 2 (ii) Electronic Delivery. Section 11.01 (c) of the General Conditions. The Recipient shall deliver Withdrawal Applications (with supporting documents) electronically through the Association’s web-based portal (https://clientconnection.worldbank.org) “Client Connection”. This option will be effected 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 shall deliver Withdrawal 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 Withdrawal 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 Recipient encounters legal limitations), and which were previously agreed with the Association. By designating officials to use SIDC, 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 Withdrawal 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 Withdrawal 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. 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. Yours sincerely, Deborah L. Wetzel Director, Regional Integration Africa, Middle East and North Africa 3 Attachments 1. Form of Authorized Signatory Letter 2. Statement of Expenditure (SOE) With copies: H.E Prof Victor Harison Commissioner for Economic Affairs Africa Union Commission Mrs. Leila Ben Ali Head of Statistics Division Department of Economic Affairs, Africa Union Commission 4 Schedule 1 : Disbursement Provisions Basic Information AU Closing Date Section III.B.2. of Schedule 2 to the Recipient Financing Agreement. Grant D588-3W Name of the Project Harmonizing and Improving Statistics Disbursement Four months after the closing date. Number in West Africa Deadline Date Subsection 3.7 ** 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 Report (IFR) in the format provided in Attachment 2 of the DFIL for all other Eligible Expenditures Advance Yes  Interim Financial Report (IFR) in the format provided in Attachment 2 of the DFIL for all other Eligible Expenditures Special Commitments Yes Copy of Letter of Credit Advance (Sections 5 and 6 **) Type Segregated Ceiling Fixed Financial Institution – The Commercial Bank of Ethiopia. USD Currency Name Frequency of Reporting Monthly 200,000 Amount Subsection 6.3 (**) Minimum Value of Applications (subsection 3.5) The minimum value of applications for Reimbursement, Direct Payment and Special Commitment Issuance is equivalent to 20 percent of the Designated Account Ceiling 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 **) (i) Authorized Signatures (subsection 3.1). A letter in the Form attached (Attachment 2) should be furnished to the Association at the address indicated below providing the name(s) and specimen signature(s) of the official(s) authorized to sign Withdrawal Applications: The World Bank Resident Mission …… Attention: ….., Regional Director 5 Applications (subsections 3.2 - 3.3): All Withdrawal Applications and its supporting documentation will be electronically sent via the Association’s web- portal “Client Connection” Additional Information ** Sections and subsections relate to the “Disbursement Guidelines for Investment Project Financing ”, dated February 2017. 6 Attachment 1 – Form of Authorized Signatory Letter [Letterhead] Ministry of Plan [Street address] [City] [Country] [DATE] International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Attention: Country Director for …. Re: African Union - IDA Grant D588-3W Harmonizing and Improving Statistics in West Africa Project Additional Instructions: Disbursement and Financial Information Letter. I refer to the Grant Agreement (“Agreement”) between the International Development Association (the “Association”)[, acting as implementing of the ]1 and the AU (the “Recipient”), dated _______, providing the above Grant. 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. For the purpose of delivering Withdrawal 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 Withdrawal 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. 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 Applications, and evidence in support thereof on the terms and conditions specified by the Association. 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 / ______________ 8 Attachment 2 – IFR Africa CDC Regional Investment Financing Project Interim Unaudited Financial Report Content Discussion of Financial performance, Notes & Explanations Consolidated Statement of Sources and Uses of Fund Summary of Expenditure by component Summary of Expenditure by category Statement of Designated account activity Fund Flow Statement by account Supporting schedules (Advances and Payables aging analysis, bank reconciliation, cash count certificate, etc.) 9 African Union Commission Harmonizing and Improving Statistics in West Africa Statement of Program Sources & Uses of Funds For The Quarter Ended_____________________(in USD) Actual Planned Variance Year Curren Year to Cumulativ t to Cumulativ Current date e Quarte date e Cumulative Quarter (In (To date) r (In (To date) Current Quarter Year to date (To date) (In USD)/I (In USD) (In USD)/I (In Particulars (In USD)/I (In USD)/II (In USD)/II(a) USD)/I I /II(a) USD)/I I USD)/II(a) Opening Balance Designated Account Cash at Bank – Birr account/ (III) Cash at bank – Tunis, USD account Cash at bank – Tunis, Dinar account Receivables Less: Payables Total Opening Balance Add: Sources IDA Total Source for the Period Total Available Fund for The Period Less: Program Expenditures Total Available Fund Less Total Expenditures Foreign Exchange Difference/ (IV) Net Fund Available Ending Balance IDA (Designated USD Acct.) 10 Cash/Bank balances plus receivables minus payables Total Ending Balance NOTES: I - The amounts are drawn from the ledger accounts of the program II - Of the current fiscal year II(a) - for the whole life of the project III- The following rates were used for conversion: USD 1=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 should be provided as a note to the IFR Prepared Approved By By___________________________ __________________________ Signature Signature ___________________________ ___________________________ Date Date ________________________________ ______________________________ 11 African Union Commission Harmonizing and Improving Statistics in West Africa Expenditure Summary by Component-(USD) For the Quarter Ended__________________ Actual Planned Variance year Cumulati Cumulati Current year to Cumulative to current to ve to Current year to ve to Particulars quarter/i date date/ii quarter date date/ii quarter/ii date date/ii Expenditures Component 1 - Regional Component: Harmonization, Data Collection, Quality Improvement, Dissemination and Use of Core Social and Economic Statistics Sub-component - 1.1 Support the implementation of SHaSA2 initiative by AU Component 3 Project Management and Monitoring and Evaluation (M&E) Grand Total Prepared Approved By___________________________ By___________________________ Signature Signature ___________________________ ___________________________ Date Date ______________________________ _______________________________ /i - Amounts are drawn from the ledger account of the program /ii - These are program to date figures 12 African Union Commission Harmonizing and Improving Statistics in West Africa Designated Account Activity Statement For the period……. (in USD) IDA Opening balance/i Advance received during the quarter Refund from DA during the quarter Less: Transfers out of the DA to the Birr/ Tunis account 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 13 African Union Commission Harmonizing and Improving Statistics in West Africa STATEMENT OF FUND FLOW (IDA) DESIGNATED DOLLAR ACCOUNT NO. For the period from ……………………………... USD OPENING BALANCE Add: Receipt Fund Received as at Fund Available for use Less: Transfer and Expenditure Transfer to birr account as at Expenditures Bank services Charges Total transfer & expenditure closing balance Approved By Prepared By___________________________ __________________________ Signature Signature ___________________________ ___________________________ Date Date ________________________________ ______________________________ 14 Africa Union Commission Harmonizing and Improving Statistics in West Africa Fund flow statement Birr Bank a/c ______________ (Birr) For the period from……………………… Birr USD Balance brought forward Cash Transfer from DA Fund available for use Expenditure Cash at Bank Actual exchange rate as of … Closing balance /Ledger USD/ Add gain or (Loss) on exchange rate Balance After Gain/loss on foreign exchange Approved By Prepared By______________________ __________________________ Signature Signature ______________________ ___________________________ Date Date ________________________ ______________________________ 15 Africa Union Commission Harmonizing and Improving Statistics in West Africa Fund flow statement Tunis Bank a/c ______________ (USD) For the period from……………………… USD Balance brought forward Cash Transfer from DA Fund available for use Expenditure Cash at Bank Ending Balance Approved By Prepared By______________________ __________________________ Signature Signature ______________________ ___________________________ Date Date ________________________ ______________________________ 16 Africa Union Commission Harmonizing and Improving Statistics in West Africa Fund flow statement Tunis Bank a/c ______________ (local currency) For the period from……………………… Tunisian Dinar USD Balance brought forward Cash Transfer from DA Fund available for use Expenditure Cash at Bank Actual exchange rate as of … Closing balance /Ledger USD/ Add gain or (Loss) on exchange rate Balance After Gain/loss on foreign exchange Approved By Prepared By______________________ __________________________ Signature Signature ______________________ ___________________________ Date Date ________________________ ______________________________ 17 African Union Commission Harmonizing and Improving Statistics in West Africa Expenditure Forecasts & Cash Requirements (In USD) For the 6 Months from …... to ……… Total for the six For the quarter For the quarter months Expenditures for the next Six Months ending……(USD) ending……(USD) (USD) Component 1 - Sub-component - 1.1 Support the implementation of SHaSA2 initiative by AUC Component 3 - Project Management and Monitoring and Evaluation (M&E) Total Expenditures for the next Six Months Ending Balance: Cash at bank and on hand Advances Payables Total Ending Balance Forecasted Expenditure Less Available Cash Requirement for the Next six months 18