80CUMENTS, The World Bank 1818 H Street N.W. (202) 473-1000 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Washington, D.C. 20433 Cable Address: INTBAFRAD INTERNATIONAL DEVELOPMENT ASSOCIATION U.S.A. Cable Address: INDEVAS MaV z! 42013 H.E. Ms. Lavrova Olga Minister of Finance Ministry of Finance 58 Erkindik Boulevard Bishkek 720040 Kyrgyz Republic Re: IDA Financing (Credit No. 5198-KG and Grant No. H824-KG) Second Additional Financing for Second Village Investment Project Additional Instructions: Disbursement Excellency, I refer to the Financing Agreement between the International Development Association (the "Association") and The Kyrgyz Republic (the "Recipient") for the above-referenced project, dated /11a4 L - M , 2013. The Financing Agreement provides that the Association may issue addi6nal instructions regarding the withdrawal of the proceeds of IDA Financing (Credit No. 5198-KG and Grant No. H824-KG) ("Financing"). This letter ("Disbursement Letter"), as revised from time to time, constitutes the additional instructions. The attached World Bank Disbursement Guidelines for Projects, dated May 1, 2006, ("Disbursement Guidelines") (Attachment 1), are an integral part of the Disbursement Letter. The manner in which the provisions in the Disbursement Guidelines apply to the Financing is specified below. Sections and subsections in parentheses below refer to the relevant sections and subsections in the Disbursement Guidelines and, unless otherwise defined in this letter, the capitalized terms used have the meanings ascribed to them in the Disbursement Guidelines. I. Disbursement Arrangements (i) Disbursement Methods (section 2). The following Disbursement Methods may be used under the Financing: * Reimbursement * Advance * Direct Payment * Special Commitment (ii) Disbursement Deadline Date (subsection 3.7). The Disbursement Deadline Date is four (4) months after the Closing Date, specified in the Financing Agreement. Any changes to this date will be notified by the Association. 1 II. Withdrawal of Financina Proceeds (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 Applications: International Development Association 1818 H Street, N.W. Washington, DC 20433 United States of America Attention: Saroj Kumar Jha, Regional Director, Central Asia (ii) Applications (subsections 3.2 - 3.3). Please provide completed and signed (a) applications for withdrawal, together with supporting documents, and (b) applications for special commitments, together with a copy of the commercial bank letter of credit, to the address indicated below: The World Bank Radnicka cesta 80, 9th floor Zagreb, HR - 10 000, Croatia Attention: Disbursement Management Group (iii) Minimum Value ofApplications (subsection 3.5). The Minimum Value of Applications for direct payments and issuance of special commitment is USD 70,000 for the IDA Grant and USD 100,000 for the IDA Credit. (iv) Advances (sections 5 and 6). * Type of Designated Account (subsection 5.3): Segregated. * Currency ofDesignated Account (subsection 5.4): United States Dollars (US$). * Financial Institution at which the Designated Account/s] Will Be Opened (subsection 5.5): in a Commercial Bank acceptable to the Association. * Ceiling (subsection 6.1). USD 500,000 for the IDA Grant and USD 350,000 for the IDA Credit. III. Reporting on Use of Financin2 Proceeds Supporting Documentation (section 4). Supporting documentation should be provided with each application for withdrawal as set out below: 2 * For requests for reimbursement: 0 Statement of Expenditure in the form attached (Attachment 3); o Records evidencing eligible expenditures (e.g., copies of receipts, supplier invoices, bills of lading evidencing eligible imports, for goods and works against contracts valued at US$100,000 equivalent or more, services of consulting firms under contracts valued at US$50,000 equivalent or more, services of individual consultants valued at US$10,000 equivalent or more; and o List of payments against contracts that are subject to the Association's prior review, in the form attached (Attachment 4). * For reporting eligible expenditures paid from the Designated Account: o Statement of Expenditure in the form attached (Attachment 3); o Records evidencing eligible expenditures (e.g., copies of receipts, supplier invoices, bills of lading evidencing eligible imports, for goods and works against contracts valued at US$100,000 equivalent or more, services of consulting firms under contracts valued at US$50,000 equivalent or more, services of individual consultants valued at US$10,000 equivalent or more; and o List of payments against contracts that are subject to the Association's prior review, in the form attached (Attachment 4). * For requests for direct payment: records evidencing eligible expenditures, e.g., copies of receipts, supplier invoices for payment against contracts, bills of lading evidencing eligible imports. (ii) Frequency of Reporting Eligible Expenditures Paid from the Designated Account (subsection 6.3): Quarterly. (iii) Other Supporting Documentation Instructions: Please submit bank reconciliations when submitting applications for replenishment of the DA. V. Other Disbursement Instructions Please be advised that in accordance to Schedule 2, Section IV.A.2 of the Financing Agreement, to the extent practicable, for the Categories, the proceeds of the Grant shall be disbursed before disbursement of the proceeds of the Credit. 3 VI. Other Important Information For additional information on disbursement arrangements, please refer to the Disbursement Handbook available on the Association's public website at http://www.worldbank.org and its secure website "Client Connection" at http://clientconnection.worldbank.org. Print copies are available upon request. If you have not already done so, the World Bank recommends that you register as a user of the Client Connection website (https://clientconnection.worldbank.org). From this website you will be able to download Applications, monitor the near real-time status of the Grant, and retrieve related policy, financial, and procurement information. All Recipient officials authorized to sign and deliver Applications by electronic means are required to register with Client Connection before electronic delivery can be effected. For more information about the website and registration arrangements, please contact the World Bank by email at . If you have any queries in relation to the above, please contact Mr. Joseph P. Formoso, Senior Finance Officer at loa-eca(aworldbank.org using the above reference. INTERNATIONAL DEVELOPMENT ASSO TION Alexander Kremer Country Manager Kyrgyz Republic Attachments 1. World Bank isbursement Guidelines for Projects, dated May 1, 2006 2. Form for Authorized Signatures 3. Terms and Conditions of Use of Secure Identification Devices in connection with Use of Electronic Means to Process Applications and Supporting Documentation, dated January 20, 2010 4. Form for "Statement of Expenditure" 5. Form for Payments Against Contracts Subject to the Association's Prior Review 4 Cc with copies: Elmira Ibraimova Executive Director Community Development and Investment Agency (ARIS) 102 Bokonbaeva Street Bishkek City 70040 Kyrgyz Republic Ms. Dinara Doishenkul kyzy Finance Manager Community Development and Investment Agency (ARIS) 102, Bokonbaev Street Bishkek, 720040 Kyrgyz Republic Attachment 2 [Letterhead] Ministry of Finance [Street address] [City] [Country] The World Bank 1818 H Street, N.W. Washington, D.C. 20433 United States of America Attention: Saroj Kumar Jha Country Director for Central Asia Europe and Central Asia Region Re: IDA Financing (Credit No. 5198-KG and Grant No. H824-KG) Second Additional Financing for Second Village Investment Project Dear Saroj Kumar Jha, I refer to the Financing Agreement ("Agreement") between the International Development Association (the "Association") and the Kyrgyz Republic (the "Recipient"), dated , 2013 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 [and applications for a special commitment] under this Financing For the purpose of delivering Applications to the World Bank, 2[each] of the persons whose authenticated specimen signatures appears below is authorized on behalf of the Recipient, acting 3[individually] 4jointly], to deliver Applications, and evidence in support thereof on the terms and conditions specified by the World Bank. 5[This confirms that the Recipient is authorizing such persons to accept Tokens and to deliver the Applications and supporting documents to the World Bank by 1 Instruction to the recipient when sending this letter to the Association: Stipulate if more than one person needs to sign Applications, and how many or which positions, and if any thresholds apply. 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. electronic means. In full recognition that the World Bank 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 Devices in connection with Use of Electronic Means to Process Applications and Supporting Documentation ("Terms and Conditions of Use of Tokens"), the Recipient represents and warrants to the World Bank that it will deliver to each such person a copy of the Terms and Conditions of Use of Tokens and will cause such persons to abide by those terms and conditions.] This Authorization replaces and supersedes any Authorization currently in the World Bank records with respect to this Agreement. [Name], [position]Specimen Signature: [Name], [position]Specimen Signature: [Name], [position] Specimen Signature: Yours truly, /signed/ Minister of Finance 5 Instruction to the Recipient: Add this paragraph if the Recipient wishes to authorize the listed persons to accept Tokens 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 3 Terms and Conditions of Use of Secure Identification Devices in connection with Use of Electronic Means to Process Applications and Supporting Documentation January 20, 2010 The World Bank (Bank)6 Will provide secure identification devices (Tokens) to permit the Borrower7 to deliver applications for withdrawal and applications for special commitments under the Agreement(s) and supporting documentation (such applications and supporting documentation together referred to in these Terms and Conditions of Use as Applications) to the Bank electronically, on the terms and conditions of use specified herein. A. Identification of Users. 1. The Borrower will be required to identify in a completed Authorized Signatory Letter (ASL) duly delivered to and received by the Bank each person who will be authorized to deliver Applications. The Bank will provide Tokens to each person identified in the ASL (Signatory), as provided below. The Borrower shall also immediately notify the Bank if a Signatory is no longer authorized by the Borrower to act as a Signatory. 2. Each Signatory must register as a user on the Bank's Client Connection (CC) website (https://clientconnection.worldbank.org ) prior to delivery of Tokens. Registration on CC will require that the Signatory establish a CC password (CC Password). The Signatory shall not reveal his/her CC Password to anyone or store or record the CC Password in written or other form. Upon registration as a CC user, the Signatory will be assigned a unique identifying account name. B. Distribution, Initialization and Return of Tokens. 1. The Bank will physically deliver a Token to each Signatory in a manner to be determined by and satisfactory to the Bank. 2. At the time of delivery of a Token to a Signatory, the Signatory will receive a copy of these Terms and Conditions of Use for purposes of initializing the Token. 3. The Bank will verify that the Token, Temporary Password and Terms and Conditions of Use have been duly delivered to and received by the CC User. 4. Promptly upon receipt of the Token and Terms and Conditions of Use, the Signatory will access CC using his/her account name and CC Password and register his/her Token and set a personal identification number (PIN) to be used in connection with the use of his/her Token, after which the Token will be initialized for use by the Signatory exclusively for purposes of delivering Applications. Upon initialization of the Token, the Signatory will be a "Token User". The Bank will maintain in its database a user account (Account) for each Token User for purposes of managing the Token of the Token User. Neither the Borrower nor the Token User will have any access to the Account. 6 "Bank" includes IBRD and IDA. 7 "Borrower" includes the borrower of an IBRD loan, IDA credit, or Project Preparation Facility advance and the recipient of a grant. 5. Prior to first use of the Token by the Token User for delivering Applications, the Borrower shall ensure that the Token User has received training materials provided by the Bank in use of the Token. 6. Tokens shall be promptly returned to the Bank upon request of the Bank. C. Management of Tokens. 1. Tokens will remain the property of the Bank. 2. Use of the Token is strictly limited to use in the delivery of Applications by the Token User in the manner prescribed by the Bank in the Agreement(s) and these Terms and Conditions. Any other use of the Token is prohibited. 3. The Bank assumes no responsibility or liability whatsoever for any misuse of the Token by the Token User, other representatives of the Borrower, or third parties. 4. The Borrower undertakes to ensure, and represents and warrants to the Bank (such representation and warranty being expressly relied upon by the Bank in delivery of a Token to each Token User) that each Token User is provided, understands and will abide by, these Terms and Conditions of Use, including without limitation the following: Security 4.1. The Token User shall not reveal his/her PIN to anyone or store or record the PIN in written or other form. 4.2. The Token User shall not allow anyone else to utilize a Token to deliver an Application to the Bank. 4.3. The Token User shall always logout from CC when not using the system. Failure to logout properly can create a route into the system that is unprotected. 4.4. If the Token User believes a third party has learned his/her PIN or has lost his/her Token he/she shall immediately notify clientconnectionL&worldbank.ore. 4.5. The Borrower shall immediately notify the Bank at clientconnection(dworldbank.org of any lost, stolen or compromised Tokens, and take other reasonable steps to ensure such Tokens are disabled immediately. Care of Tokens 4.6. Tokens contain delicate and sophisticated instrumentation and therefore should be handled with due care, and should not be immersed in liquids, exposed to extreme temperatures, crushed or bent. Also, Tokens should be kept more than five (5) cm from devices that generate electromagnetic radiation (EMR), such as mobile phones, phone-enabled PDAs, smart phones and other similar devices. Tokens should be carried and stored separate from any EMR device. At close range (less than 5 cm), these devices can output high levels of EMR that can interfere with the proper operation of electronic equipment, including the Token. 4.7 Without derogating from these Terms and Conditions of Use, other technical instructions on the proper use and care Tokens are available at http://www.rsa.com. 5. Replacement 5.1. Lost, damaged, compromised (in terms of 4.5, above) or destroyed Tokens will be replaced at the expense of the Borrower. 5.2. The Bank reserves the right, in its sole discretion, not to replace any Token in the case of misuse, or not to reactivate a Token User's Account 6. Reservation of Right to disable Token 6.1. The Borrower shall reserve the right to revoke the authorization of a Token User to use a Token for any reason. 6.2. The Bank reserves the right, in its sole discretion, to temporarily or permanently disable a Token, de-activate a Token User's Account or both. Attachment 4 Statement of Expenditures (SOE) Payments made during the period from to Date: Application No.: For expenditures against the contracts not subject to the Bank Prior Review TF No.: SOE No.: 1 2 3 4 5 6 7 8 9 Item Category Currency and Total Currency and Eligible % Amount Currency and Exchange Rate Remarks No. No. (**) Amount of Contract Total Amount of from Schedule Eligible for Amount Paid from (Col. 7 divided by Invoice Covered 2 of Financing (4 Special Account (if Col. 6) by Application Loan/Credit x 5) Applicable) (Net of Retention) Agreement TOTALS Supporting documents for this SOE retained at (insert location) (*) A separate SOE form should be used for retroactive financing (**) Items should be grouped by category; or alternatively, a separate SOE form may be used for each category Attachment 5 Payments Made during Reporting Period Against Contracts Subject to the Bank's Prior Review Date of WB's Non WB's Share of Objection Amount Paid Amt Paid to Contract Contract Contract to to Supplier Supplier Number Supplier Date Amount Contract during Period during Period