Date: April 19,2022 H. E. Mr. Almaz Baketaev Minister Ministry of Finance 5 8 Erkindik Boulevard Bishkek 720040 KYRGYZ REPUBLIC Re: IDA Financing Credit No. 7049-KG and Grant No. D976-KG (Second Regional Economic Development Project) Additional Instructions: Disbursement and Financial Information Letter (DFIL) Excellency: I refer to the Financing Agreement between the Kyrgyz Republic (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 and Grant amounts from the Credit and Grant Accounts respectively, 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 and Grant Funds, and Reporting on Uses of Credit and Grant 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 and the Grant 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 Recipient shall electronically deliver applications (with supporting documents) through the Association's web-based portal (https://clientconnection.worldbank.org) "Client Connection". This facility will become available once: (a) the Recipient has designated in writing, its officials who are authorized to sign and deliver Applications and to receive Secure Identification Credentials ("SIDC") from the Association 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". The designated officials shall 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 exercise the option ofpreparing and delivering Applications in paper form on an exceptional basis (including those where the Recipient encounters legal limitations), and which were previously agreed with the Association. By designating officials to use SIDC and 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, through the Project Implementing Entity, shall prepare and furnish to the Association not later than forty-five (45) days after the end of each calendar quarter, consolidated interim unaudited financial reports (IFR) for the Project, covering the quarter, in form and substance satisfactory to the Association. (ii) Project Audits. Each audit of the Project Financial Statements shall cover the period of one fiscal year of the Recipient, commencing with the fiscal year in which the first withdrawal was made. The audited Project Financial Statements for each such period shall be furnished to the Association not later than six (6) months after the end of such period. m. 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 the Grant, and retrieve related policy, financial, and procurement information. 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, .#.. Regional Director for Central Asia -2- Attachments 1. Form of Authorized Signatory Letter (ASL) 2. Form of Statement of Expenditure (SOE) 3. Form of Statement of Expenditure (SOE) for Small Grants under Category 3 4. Designated Account Reconciliation Statement (DARS) Cc with copies: Community Development and Investment Agency (ARIS) 102 Bokonbayev St, Bishkek, Kyrgyz Republic e-mail: office@aris.kg -3- Schedule 1: Disbursement Provisions Basic Information Country Kyrgyz Republic Closing Date Section III.B.2. of Schedule 2 IDA IDA 7049-KG Recipient Kyrgyz Republic to the Financing Agreement Credit and and Name of the Project Second Regional Economic Disbursement Four (4) months after the Grant IDAD976-KG Development Project Deadline Date Closing Date Number (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 (e.g., suppliers' invoices, guarantees for advance and retention payments, etc.) Reimbursement Yes SOE in the format provided in Attachment 2 of the DFIL for Category 1 and 2 SOE for Small Grants in the format provided in Attachment 3 of the DFIL for Category 3 Designated Account Yes SOE in the formats provided in Attachment 2 of the DFIL for Category 1 and 2 SOE for Small Grants in the format provided in Attachment 3 of the DFIL for Category 3 DARS in the format provided in Attachment 4 of the DFIL Special Commitments Yes Copy of Letter of Credit Designated Account (Sections S and 6 ) Segregated Fixed Type DA-C for Category 1 to 3 of IDA Credit 7049-KG Ceiling DA-D for Category 1 to 3 of IDA Grant D976-KG Financial Institution - Name To be established at a commercial bank acceptable to the Association Currency USD Frequency of Reporting Recommended at monthly interval. 1,000,000 for DA-C Amount (Subsection 6.3 **) 1,000,000 for DA-D Minimum Value of Applications (Subsection 3.5) The minimum value of applications for Reimbursement, Direct Payment and Special Commitment is USD 200,000 equivalent. Authorized Signatures (Subsection 3.1 and 3.2 ) Theformfor Authorized Signatories Letter is provided in Attachment I ofthis letter Withdrawal and Documentation Applications (Subsection 3.3 and 3.4) An authorized signatory letter (ASL) in the Form attached (Attachment 1) shall 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 Applications: The World Bank Radnicka cesta 80, 9 floor Zagreb, HR-10000, Croatia Attention: Loan Department (WFACS) All Withdrawal and Documentation Applications will be electronically delivered to the Association, via the Association's website Client Connection. Additional Instructions 1) For Category 1, IDA Grant should be fully disbursed/committed before withdrawing from the respective category under IDA Credit. 2) Disbursement mechanism under Category 4 of the Withdrawal Table [Contingent Emergency Response Component (CERC)]: a. If CERC is activated under the Project, in order to provide necessary liquidity for fast response, the ceiling of any of the current DAs may be increased temporarily or a new DA is opened in a bank acceptable to the Associations, before the DFIL is revised to include Advance provisions. b. The supporting documentation requirements for reporting on use of Credit/Grant proceeds under the CERC category will be same as for Category 1. If there is a need, the supporting documentation requirement would be provided in a revised DFIL, once the CERC is activated under the Project and funds are allocated to this category. ,Sections and subsections relate to the "Disbursement Guidelinesfor Investment Project Financing", dated February 2017. Attachment 1 - Form of Authorized Signatory Letter (ASL) [Letterhead] [Recipient] [Street address] [City] [Country] [DATE] The World Bank 1818 H Street, N.W. Washington, D .C. 20433 United States of America Attention: Country Director Re: IDA Credit No. 7049-KG and IDA Grant No. D976-KG Second Regional Economic Development Project I refer to the Financing Agreement ("Agreement") between the Kyrgyz Republic (the "Recipient") and the International Development Association (the "Association"), dated providing the above Credit and Grant. For the purposes of Section 2.03 of the General Conditions as defined in the Agreement, any 1[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 Credit and Grant. For the purpose of delivering Applications to the Association, 2[each] of the persons whose authenticated specimen signatures appears below is authorized on behalf of the Recipient, acting 3[individually] 4[jointly], to deliver Applications, and evidence in support thereof on the terms and conditions specified by the Association. This confirms that the Recipient is authorizing such persons to accept Secure Identification Credentials (SIDC) and to deliver the Applications and supporting documents to the Association by electronic means. In full recognition that the Association shall rely upon such representations and warranties, including without limitation, the representations and warranties contained in the 1 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 thisfootnote in final letter that is sent to the Association. 2 Instruction to the Recipient: Stipulate ifmore than one person needs to jointly sign Applications, ifso, please indicate the actual number. Please delete thisf ootnote in final letter that is sent to the Association. 3 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 thisfootnote in final letter that is sent to the Association. 4 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 thisfootnote in final letter that is sent to the Association. 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"), the Recipient represents and warrants to the Association that it will cause such persons to abide by those terms and conditions. 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/ [Position] Attachment 2 - Form of Statement of Expenditure (SOE) for Category 1 and 2 Statement of Expenditure (SOE) Payments made during the period from to _ Credit/Grant No.: Application No.: Category No.: SOE No.: 1 2 3 4 5 6 7 8 9 10 11 Supplier's WB Contract Number Type of Good or Currency and Currency and % Amount Currency and Exchange Date of Remarks Name in Client Connection Service Total Amount, Total Amount of Financed Eligible for Amount Paid from Rate Payment (for Prior Review (CW/GO/CS/OP/TR) and Date of Invoice Covered by IDA Financing Designated Account Contracts) / Brief Description Contract by Application (5x6) (if Applicable) TOTALS Supporting documents for this SOE retained at _ (location) Attachment 3 - Form of Statement of Expenditure for Small Grants under Categories 3 Statement of Expenditure (SOE) for Small Grants Credit/Grant No.: ---- Application No.: _ Category No.: _ Payments made during the period from to _ SOE No.: ------- 1 2 3 4 5 6 7 8 10 11 12 Type of Good or Amount Reference Service Currency Amount Date of % Eligible for Date of Amount or No. of Name of (CW/GO/CS/TR) I of Small of Small Small Amount Financed Financing Exchange Withdrawal withdrawn Small Grant Beneficiary Brief Description Grant Grant Grant Paid by IDA (Col 6 x 7) Rate from DA from DA TOTAL Supporting documents for this SOE retained at _ (location) Attachment 4- Form of Designated Account Reconciliation Statement (OARS) CREDIT/GRANT 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 I 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 REAS)N; + * 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: --------- T[T[E;