OFFICIAL DOCUMENTS THE WORLD BANK IBRD* IDA I WORLDBANKGROUP LOUISE CORD Country Director Africa Region (Cabo Verde, Gambia, Guine-Bissau, Mauritania, Senegal) Date: His Excellency Dr. Olavo Avelino Garcia Correia Minister of Finance Republic of Cabo Verde Praia Cabo Verde Re: IDA Credit 6251-CV (State Owned Enterprises Related Fiscal Management 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 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.or. 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. * Special Provision. Projects in situations of urgent need of assistance or capacity constraints: Disbursements under contracts for goods, works, non-consulting services and consulting services procured or selected through international open or limited competition or Direct Selection, as set out in the procurement plan, must be made only through Direct Payment and/or Special Commitment disbursement methods. 2 (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 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(aworldbank.org. 3 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 sincerely, 1!14'11 LG M r Louise J. ord Country Director Senegal, Cabo Verde, Guinea-Bissau, Mauritania, Africa Region Attachments 1. Form of Authorized Signatory Letter 2. Unaudited Interim Financial Reports (IFRs) With copies: Carla Cruz, Director of Planning Ministry of Finance Avenida Amilcar Cabral, CP#30 Praia, Republica de Cabo Verde Carla.Cruz(g)mf.gov.cv Margarida Mascarenhas, Director Unidade de Acompanhamento ao Sector Empresarial (UASE) Ministry of Finance Avenida Amilcar Cabral, CP#30 Praia, Republica de Cabo Verde Margarida.mascarenha@2mf.gov.cv 4 Schedule I : Disbursement Provisions Country Cabo Verde Closing Date Section IV.B.5. of Schedule 2 to the Credit Recipient Financing Agreement. Number Name of the Project State Owned Enterprises Related Disbursement Four months after the closing date. Fiscal Management Project Deadline Date Subsection 3.7 ** Disbursement Methods Methods Supporting Documentation Section 2 (**) Subsections 4.3 and 4.4 (**) Direct Payment Yes Copy of records (not applicable for Categories 1, 2 and 3) Reimbursement Yes Interim unaudited Financial Report (IFR) in the format provided in Attachment 2 of the DFIL which will include a report on payments made against contracts that require the Association's Prior Review. For Disbursement Categories 1, 2 and 3, formal notification by the Association of the level of attainment of results and the corresponding monetary value is also required. Designated Account Yes Interim unaudited Financial Report (IFR) in the format provided in Attachment 2 of the DFIL which will include a report on payments made against contracts that require the Association's Prior Review. For Disbursement Categories 1, 2 and 3, formal notification by the Association of the level of attainment of results and the corresponding monetary value is also required. Special Commitments Yes ICopy of Letter of Credit (not applicable for Categories 1, 2 and 3) Deinte onesun l,2aonnd3n 6* - Type Segregated Ceiling Variable Financial Institution - To be established at a financial institution acceptable to the TBD Name Association Frequency of Reporting Quarterly Amount TBD Subsection 6.3 (* Taking into consideration the Special Provisions under (1) (i) of this Disbursement and Financial Information Letter, there will be no minimum value for at lications. TheWorld Ban1k, Loa O( ertion 13th) Flor-121, Delta Cente r ,6 enenta i oa Useri Hill P).O. Box 305)77-00(100( Nairob i Key Te +2420960 (i) Withdrawal applications to be submitted to the Association to document advances to the Designated Account or reimbursements, using IFRs as supporting documentation will necessarily include: the IFRs and, for Disbursement Categories 1, 2 and 3, evidence to be provided by the Association on the level of attainment of results and its corresponding monetary value 5 (ii) An Independent Verification Agent will be responsible for the regular verification of the level of attainment of all DLIs as stated in Schedule 4 of the Financing Agreement. (iii) In addition, this Independent Verification Agent will also attest the eligibility of Severance payments made to eligible beneficiaries, including payments made to eligible beneficiaries and fulfillment of eligibility criteria, which are part of EEPs for disbursement category 3. This information will be required to be submitted to the Association, for approval and determination of the amounts to be disbursed, prior to any disbursements. ** Sections and subsections relate to the "Disbursement Guidelines for Investment Project Financing", dated February 2017. 6 [Attachment 1 - Form of Authorized Signatory Letter]-L1 [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: IDA Credit No. 6251-CV (State Owned Enterprises Related Fiscal Management Project) Attention: , Country Director I refer to the [Grant] [Credit] Agreement ("Agreement") between the International Development Association (the "Association")[, acting as implementing of the ]1 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 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] [Credit]. For the purpose of delivering Applications to the Association, including by electronic means, [each] of the persons whose authenticated specimen signatures appears below is authorized on behalf of the Recipient, acting 4[individually] 5[jointly], to deliver 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. I 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. 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 [Name], [position] Specimen Signature: [Name], [position] Specimen Signature: [Name], [position] Specimen Signature: Yours truly, / signed / 8 Attachment 2 - Interim unaudited Financial Statements Separately attached in Exel format