OFFICIAL DOCUMENTS The World Bank E-32 Agargaon, Sher-e-Bangla Nagar, Dhaka 1207, Bangladesh Phone: (880-2) 5566-7777 Facsimile: (880-2) 5566-7778 Qimiao Fan Country Director for Bangladesh, Bhutan & Nepal September 20, 2018 Mr. Kazi Shofiqul Azam Secretary Economic Relations Division Ministry of Finance Dhaka, Bangladesh Dear Secretary Azam: Re: IDA Grant Number D361-BD and IDA Credit Number 6302-BD Additional Financing for Health Sector Support Project Additional Instructions: Disbursement and Financial Information Letter I refer to the Financing Agreement between People's Republic of Bangladesh ("Recipient") and the International Development Association ("Association") for the above-referenced Project, dated , 2018. The General Conditions, as defined in the Financing Agreement, provide that the Association may issue additional instructions regarding the withdrawal of the proceeds of IDA Grant Number D361-BD and IDA Credit Number 6302-BD (collectively, the "Financing"), and specify certain financial management reporting and audit requirements. This letter ("Disbursement and Financial Information Letter" or "DFIL"), as revised from time to time, constitutes such additional instructions. 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 this Disbursement and Financial Reporting Letter, and the manner in which the provisions in the guidelines apply to the Financing is specified below. I. Disbursement Arrangements, Withdrawal and Reporting of Financing Proceeds (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), instructions on supporting documentation. * 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. Refer to 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: (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 Bank 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 may deliver Applications electronically by completing the Form 2380, which is accessible through "Client Connection". 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 signatories 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. H. Financial Reports and Audits. (i) Financial Reports. The Recipient shall prepare and furnish to the Association not later than forty- five (45) days after the end of each quarter, Interim Unaudited Financial Reports (IUFR) of the Project covering the quarter. (ii) Audits. Each audit of the 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 Financial Statements for each such period shall be furnished to the Association not later than six (6) months after the end of such period. III. Other Important Information For additional information on disbursement arrangements, please refer to the Loan Handbook available on the Association's public website 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 Financing, 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 Mr. Satish Kumar Shivakumar, Finance Officer, at satishkumarl@worldbank.org using the above reference. Sincerely, INTERNATIONAL DEVELOPMENT ASSOCIATION Qimiao Fan Country Director -3- Attachments 1. Form of Authorized Signatories Letter 2. Format of Interim Unaudited Financial Report Schedule 1: Disbursement Provisions Basic Information Grant Country People's Republic of Bangladesh Closing Date Section III.B.2 of Schedule 2 to the Number IDA D361 Recipient People's Republic of Bangladesh Financing Agreement. and BD and IDA Name of the Project Additional Financing for Health Disbursement Four months after the closing date. Credit 6302-BD Sector Support Project Deadline Date Subsection 3.7 number ** Disbursement Methods and Supporting Documentation Methods Available Disbursement Methods Supporting Documentation Section 2* Subsections 4.3 and 4.4 Direct Payment Yes Copy of Records Yes for contracts other than contracts referred in Interim Unaudited Financial Report (IUFR) in the form attached Reimbursement Clause I(i) of the DFIL Copy of Letter of Credit. Special Commitments Yes Proforma Invoice if cited in the Letter of Credit Minimum Value of Applications (subsection 3.5) The minimum value of applications for Reimbursement, Direct Payment and Special Commitment is USD 100,000 equivalent. Minimum value of applications does not apply to the disbursements of contracts referred to in Section I(i) of the DFIL made only through Direct Payment and/or special Commitment disbursement methods. -5- Authorized Signatures (Subsection 3.1 and 3.2 **) Thejbrin for Authorized Signatories Letter is provided in Atachment of this lelter If ithdrawal and Documentation Applications (Subsection 3 3 and 3.4 **) Authorized Signatories Letter: Withdrawal and Documentation Applications: The World Bank The World Bank Plot E32, Agargaon No. 11, Taramani Main Road Sher-e Bangla Nagar Taramani, Chennai - 600 113 G.P.O. Box 97 India Dhaka 1207, Bangladesh Attention: Team Lead, WFACS Attention: Country Director Additional Instructions (i) All payments for expenditures claimed under this Financing must be made using the banking system, except expenditures paid using the petty cash system following the Recipient's existing policy. The petty cash limit as per the Recipient's existing policy is BDT 100,000. (ii) In case of category 2 - Goods, works, non-consulting services, consulting services, Incremental Operating Costs and Training under UN Agency contracts under Part 4 of the Project, payments would be made through UN Commitment disbursement mechanism. In case of contract with UN Agency, an application for issuance of UN Commitment is be submitted by Ministry of Health and Family Welfare (MOHFW). Subsequent payment and documentation of expenditures would be as per the commitment letter to be issued by the Association and the agreement between MOHFW and the UN agency. *Sections and subsections indicated relate to the Disbursement Guidelines for Investment Project dated Financing 2017. Attachment 1 Form of Authorized Signatories Letter [Letterhead] Minister of Finance [Street address] [City] [Country] [Date] The World Bank Plot E32, Agargaon Sher-e Bangla Nagar G.P.O. Box 97 Dhaka 1207, Bangladesh Attention: Country Director Re: IDA Grant Number D361-BD and IDA Credit Number 6302-BD (Additional Financing for Health Sector Support Project) I refer to the Financing Agreement ("Agreement") between the International Development Association ("Association") and People's Republic of Bangladesh ("Recipient"), dated _ , providing the above Financing. For the purposes of Section 2.03 of the General Conditions as defined in the Agreement, any [one]' of the persons whose authenticated specimen signatures appear below is authorized on behalf of the Recipient to sign applications for withdrawal under this Financing. For the purpose of delivering Applications to the Association, [each]2 of the persons whose authenticated specimen signatures appears below is authorized on behalf of the Recipient, acting [individually] [jointly]4, 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 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 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 this footnote in final letter that is sent to the Association. 2 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. 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. 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 this footnote in final letter that is sent to the Association. -7- 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's records with respect to this Agreement. [Name], [Position] Specimen Signature: [Name], [Position] Specimen Signature: [Name], [Position] Specimen Signature: Yours truly, / signed / [Position] Instruction to the Recipient: Add this paragraph if the Recipient wishes to authorize the listed persons to accept Secure Identification Credentials and to deliver Applications by electronic means; if this is not applicable, please delete the paragraph. Please delete this footnote in final letter that is sent to the Association. Attachment 2 - Format of Interim Unaudited Financial Report Government of the People's Republic of Bangladesh Ministry of Health and Family Welfare Health Services Division Financial Management and Audit Unit Health Sector Support Project Interim Unaudited Financial Reports (IUFRs) For the Period : ............................................ Report 1 Statement of Expenditures Under Eligible Expenditure Program Report 2 Details of Expenditures under EEP by Functional Codes Health Sector Support Project Statement of Expenditure under Eligible Expenditure Program (EEP) by Account Codes For the quarter : .............................................. Rate of Exchange . . .... . . BDT-000's BDT - 000's Current Current Current Current Current Quarter- Quarter- Quarter- Quarter- Quarter- Current Quarter Year to date- Year to date- Year to date- Year to date- Year to date- Year to date (UN expenditiures expenditiures only)(Not to IDA Credit only)(Not to be IDA Credit be claimed AF (10 claimed since AF (10 since functional payments functional payments codes given would be made codes given in would be in the next directly by the next tab made directly Total IDA Credit MDTF GFF tab only) IDA) Total IDA Credit MDTF only) by IDA) GFF Economic: Uses of Funds Cox's Bazar District Revenue Expenditure 4500 Pay of Officers * 4600 Pay of Establishment * Total Eligible Expenditures- in BDT Total Eligible Expenditures- in unit BDT *Excluding functional codes as in Financing Agreement Health Sector Support Project Statement of Expenditure under Eligible Expenditure Program (EEP) Details by Functional Codes for Additional Financing For the quarter ................................... Figure in unit BDT Current Quarter Quarter to date Year to date A/C 4500 A/C 4600 A/C 4700 A/C 4500 A/C 4600 A/C 4700 A/C 4500 A/C 4600 A/C 4700 Functional Code Cox's Bazar District Code Functional Code 3-2713-0000 Civil Surgeon Office, Coxs Bazar 3-2714-0000 Upazila Health Offices, Cox's Bazar 3-2715-0000 Drug Administration, Cox's Bazar 3-2716-0000 Nursing, Cox's Bazar 3-2742-0000 District Hospital, Cox's Bazar 3-2744-0005 Upazila Health Complex and Rural Health Centre, Cox's Bazar 3-7421-0047 Cox's Bazar Medical College 3-7485-0000 District Family Planning Office, Cox's Bazar 3-7487-0000 Upazila Family Planning Offices, Cox's Bazar 3-7489-0000 Hospitals and Dispensery, CoX's Bazar Total: Eligible Expenditure (Reimbursable) BDT 0.00 BDT 0.00 BDT 0.00BD 0.00 - -