THE WORLD BANK IBRD * IDA I WORLD BANK GROUP OFFICIAL DOCUMENTS Amb. Lib&at Mfumukeko Secretary General East African Community P.0 Box 1096 Arusha, Tanzania Re: Africa: Advance Agreement for Preparation of Proposed Lake Victoria Environmental Management Project Phase Three (LVEMP3) Project Preparation Advance No. V1590 Additional Instructions: Disbursement and Financial Information Letter. Honorable Secretary: I refer to the Advance Agreement between the East African Community ("Recipient") and the International Development Association ("World Bank"), for the preparation of the above-referenced Project. The General Conditions, as defined in the Advance Agreement, provide that the Recipient may from time to time request withdrawals of Advance amounts from the Advance Account in accordance with the Disbursement and Financial Information Letter, and such additional instructions as the World Bank 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 Advance Funds, and Reporting of Uses of Advance Funds. The Disbursement Guidelines for Investment Project Financing, dated February 2017, ("Disbursement Guidelines") are available in the World Bank'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 Advance 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. (ii) Electronic Delivery. Section 11.01 (c) of the General Conditions. The World Bank may permit the Recipient to electronically deliver applications (with supporting documents) through the World Bank'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 THE WORLD BANK IBRD * IDA I WORLD BANKoROUP "Client Connection". By signing the Autborized Signato#ly 4tter, the Recipient confirms that it is authorizing such persons to accept Sepurg Joeitjficatioa Credentiak (8C) and to deliver the Applications and supporting documents to the Wirld Bank by electronic mean§ TheRecipient may continue to exercise the option of preparing and delivering Aplications 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. 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 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 Reports and Audits. (i) Financial Reports. The Recipient must prepare and furnish to the World Bank 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 World Bank 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 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 Advance, 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 clientconnectionAworldbank.or. If you have any queries in relation to the above, please contact Christiaan Nieuwoudt, Finance Officer at cnieuwoudt@worldbank.org, with copy to Juvenia Cohen, Finance Analyst at jcohen2@worldbank.org using the above reference. Yours sincerel Paul Noumba Um Coordinating Director for Regional Integration, Southern and Eastern Africa Africa Region Attachments 1. Statement of Expenditure (SOE) 2. Payments against contracts subject to the Bank's prior review THE WORLD BANK IBRD * IDA I WORI BANK GROUP 3. Designated Account Reconciliation Statement With copies: Dr. Ali Matano Executive Secretary Lake Victoria Basin Commission (LVBC) Kisumu, Kenya Dr. Raymond Mngodo Regional Project Coordinator Lake Victoria Basin Commission (LVBC) Kisumu, Kenya Schedule 1: Disbursement Provisions Country East African Community Closing Date December 31, 2019 Credit Recipient East African Community Number Name of the Project Disbursement Same as closing date Deadline Date Subsection 3.7 ** Disbursement Methods Methods Supporting Documentation Section 2 (**) Subsections 4.3 and 4.4 Direct Payment Yes Copy of records Reimbursement Yes Statement of Expenditure (SOE) Designated Account Yes Statement of Expenditure (SOE), Payments against contracts subject to the Bank's Prior Review and the Designated Account Reconciliation Statement in the formats provided in Attachments 1, 2 and 3 of the DFIL Special Commitments No Copy of Letter of Credit Type Segregated Ceiling Fixed Financial Institution - Central Bank of Kenya USD Name Currency Frequency of Reporting Monthly Amount 100,000 Subsection 6.3 ** The minimum value of applications for Reimbursement, Direct Payment is USD 20,000 The World Bank, Delta Center 131 Floor, Menengai Road, Upper Hill, Nairobi Kenya (Tel: +254 20 293 6000) Notice that all information will be sent to the same address, and to the regional TL. ** Sections and subsections relate to the "Disbursement Guidelines for Investment Project Financing", dated February 2017. Attachment 1 - Statement of Expenditures STATEMENT OF EXPENDITURES 1 2 3 4 5 6 7 8 9 10 11 12 13 Total Remarks or Total invoice Currency V nv. Name of Brief aoUS$ a Invoice - . Amount of o amount M and 6 o o Z Supplier, Description A .a Equivalent p4 references, z Contract a covered by e eigible - Contractor of Goods, a . paid from including o (Include a this - amount Works or o Special no- or Woksor all application no-d Consultant Services atpaid Account** ( o objection currencies) (net of (7)x(8) Q telex date retention TOTALS ____$ Attachment 2 Payments Made during Reporting Period Against Contracts Subject to the Bank's Prior Review Dme~latelVto Attachment 3 DESIGNATED ACCOUNT RECONCILIATION STATEMENT CREDIT 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 SPECIAL ACCOUNT (NUMBER 1 LESS NUMBER 2) $ 4. BALANCE OF SPECIAL 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: TITLE: FOR INTERNAL DISTRIBUTION ONLY Christiaan Nieuwoudt Cleared with and cc: Beth Anne Hoffman Jian Xie Cc: Michael Okuny