OFFICIAL DOCUMENTS THE WORLD BANK IBRD IDA I WORLDBANKGROUP Au6us-r 4R,2017 Secretary Kazi Shofiqul Azam Economic Relations Division Ministry of Finance People's Republic of Bangladesh Sher-e-Bangla Nagar Dhaka, Bangladesh Dear Secretary Azam: Re: IDA Financing 6127-BD and GFF Grant Number TF0A4355-BD (Grant) (Bangladesh Health Sector Support Project) Additional Instructions: Disbursement Letter I refer to the Financing Agreement between People's Republic of Bangladesh ("Recipient") and International Development Association ("Association") and the Grant Agreement between People's Republic of Bangladesh ("Recipient") and International Development Association ("World Bank"), acting as Administrator of the Multi-Donor Trust Fund for the Global Financing Facility (GFF) in support of Every Woman Every Child for the above- referenced Project, dated Aucu5t 4*, 2017. The Financing Agreement and the Grant Agreement (collectively, "Agreements") provide that the Association and World Bank (collectively, "World Bank") may issue to the Recipient additional instructions regarding the withdrawal of the proceeds of IDA 6127-BD ("Financing") and GFF Grant Number TF A4355- BD ("Grant"). This letter (the "Disbursement Letter"), as revised from time to time, constitutes the additional instructions. The attached Disbursement Guidelines for Investment Project Financing, dated February 2017, ("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 Method (section 2). The following Disbursement Methods may be used under the Financing and Grant: * Reimbursement (ii) Disbursement Deadline Date (subsection 3.7). The Disbursement Deadline Date is 4 months after the Closing Date specified in the Agreements. Any changes to this date will be notified by the Association. 1818 H Street NW - Washington, DC 20433 USA II. Withdrawal of Financing and Grant Proceeds (i) Authorized Signatures (subsection 3.1). Authorized signatory letters 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: The World Bank Plot E32, Agargaon Sher-e Bangla Nagar G.P.O. Box 97 Dhaka 1207, Bangladesh Attention: Country Director (ii) Applications (subsections 3.3). Please provide completed and signed (a) applications for withdrawal, together with supporting documents, to the address indicated below: The World Bank No. 11, Taramani Main Road Taramani, Chennai - 600 113 India Attention: Team Lead, WFALA (iii) Electronic Delivery (subsection 3.4) The Association may permit the Recipient to electronically deliver to the Association Applications (with supporting documents) through the Association's Client Connection, web-based portal. The option to deliver Applications to the Association by electronic means may be effected if: (a) the Recipient has designated in writing, pursuant to the terms of subparagraph (i) of this Section, 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. If the Association agrees, the Association will provide the Recipient with SIDC for the designated officials. Following which, the designated officials may deliver Applications electronically by completing Form 2380, which is accessible through Client Connection (https://clientconnection.worldbank.or). 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. (iv) Terms and Conditions of Use of SIDC to Process Applications (subsection 3.2). 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 ("Terms and 2 Conditions of Use of Secure Identification Credentials") provided in Attachment [3]; and (b) to cause such official to abide by those terms and conditions. (v) Minimum Value ofApplications (subsection 3.5). The minimum value for Reimbursement applications is US$ 100,000. III. Reporting on Use of Financing and Grant Proceeds (i) Supporting Documentation (section 4). Supporting docum-ntation should be provided with each application for withdrawal as set out below: * For requests for reimbursement: 0 Interim Unaudited Financial Report ("IUFR") (attachment 4) IV. Other Disbursement Instructions (i) For category 1 - Eligible Expenditure Programs under Part 1, 2 and 3 of the Financing Agreement, only reimbursement disbursement method is applicable. Association's funds will be disbursed to the Consolidated Fund of Government of Bangladesh based on the lesser of (i) eligible expenditures related to the Association's part and reported separately in IUFR; and (ii) value of target DLIs achieved. (ii) For category 1 - Eligible Expenditure Programs under Part 1, 2 and 3 of the Grant Agreement, only reimbursement disbursement method is applicable. World Bank's funds will be disbursed to the Consolidated Fund of Government of Bangladesh based on the lesser of (i) eligible expenditures related to the World Bank's part and reported separately in IUFR; and (ii) value of target DLIs achieved. (iii) Scalable Disbursed-linked Results (DLRs) have been identified in footnotes 1 and 2 of Annex to Schedule 2 of the Financing Agreement and footnotes 1 and 2 of Annex to Schedule 2 of the Grant Agreement. The formula for calculation of scalable disbursements have been provided against the respective DLRs in Annex to Schedule 2 of the Financing Agreement and Annex to Schedule 2 of the Grant Agreement. V. Other Important Information For additional information on disbursement arrangements, please refer to the Loan Handbook for World Bank Borrowers available on the Association's public website at https://www.worldbank.org and its secure website "Client Connection" at https://clientconnection.worldbank.org. Print copies are available upon request. 3 From the Client Connection website, you will be able to prepare and deliver Applications, monitor the near real-time status of the Financing and Grant, and retrieve related policy, financial, and procurement information. If you have not already done so, the Association recommends that you register as a user of the Client Connection website (https://clientconnection.worldbank.org. 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 Association by email at . If you have any queries in relation to the above, please contact Mr.Satish Kumar Shivakumar, Finance Officer at satishkumarl@worldbank.org. Yours sincerely, Country Directo f Bangladesh South Asi Region 4 Attachments: 1. World Bank Disbursement Guidelines for Projects, dated May 1, 2006 2. Form for Authorized Signatures for IDA 3. Terms and Conditions of Use ofSecure Identification Credentials in connection with Use of Electronic Means to Process Applications and Supporting Documentation, dated March 1, 2013 4. Form of Interim Unaudited Financial Report 5 Attachment 2 Form of Authorized Signatory Letter [Letterhead] Ministry of Finance [Street address] [DATE] The World Bank Plot E32, Agargaon Sher-e Bangla Nagar G.P.O. Box 97 Dhaka 1207, Bangladesh Attention: Country Director Re: IDA Financing 6127-BD (Financing) and Grant TF0A4355-BD (Grant) Bangladesh Health Sector Support Project I refer to the Financing Agreement between the International Development Association ("Association") and People's Republic of Bangladesh ( "Recipient"), and the Grant Agreement between International Development Association ("World Bank") acting as Administrator of the Multi-Donor Trust Fund for the Global Financing Facility (GFF) in support of Every Woman Every Child and People's Republic of Bangladesh ("Recipient"), for the above-referenced Project, dated . providing for the above Financing and Grant. For the purposes of Section 2.03 of the General Conditions and Section 3.04 of the Standard Conditions for the Project 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 and Grant. For the purpose of delivering Applications for withdrawal to the Association and World Bank (collectively, "World Bank"), [each] of the persons whose authenticated specimen signatures appears below is authorized on behalf of the Recipient, acting [individually] [jointly], to deliver Applications for withdrawal, and evidence in support thereof on the terms and conditions specified by the World Bank. [This confirms that the Borrower is authorizing such persons to accept Secure Identification Credentials (SIDC) and to deliver the Applications for withdrawal and supporting documents to the World Bank by 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 Credentials in connection with Use of Electronic Means to Process Applications and Supporting Documentation ("Terms and Conditions of Use of SIDC"), the Borrower represents and warrants to the World Bank that it 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. 6 [Name], [position] Specimen Signature: [Name], [position] Specimen Signature: [Name], [position] Specimen Signature: Yours truly, / signed / [Position] 1 Instruction to the Borrower: 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 World Bank 2 Instruction to the Borrower: 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 World Bank. ' Instruction to the Borrower: 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 World Bank 4 Instruction to the Borrower: 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 World Bank 5 Instruction to the Borrower: Add this paragraph if the Borrower 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 World Bank 7 Attachment 3 Terms and Conditions of Use of Secure Identification Credentials in connection with Use of Electronic Means to Process Applications and Supporting Documentation March 1, 2013 The World Bank (Bank)' will provide secure identification credentials (SIDC) to permit the Borrower2 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. SIDC can be either: (a) hardware-based (Physical Token), or (b) software-based (Soft Token). The Bank reserves the right to determine which type of SIDC is most appropriate. 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 SIDC 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 receipt of his/her SIDC. 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. Initialization of SIDC. 1. Prior to initialization of SIDC by a Signatory, the Signatory will acknowledge having read, understood and agreed to be bound by these Terms and Conditions of Use. '"Bank" includes IBRD and IDA. 2 "Borrower" includes the borrower of an IBRD loan, IDA credit, or Project Preparation Facility advance and the recipient of a grant. 8 2. Where a Physical Token is to be used, promptly upon receipt of the Physical Token, the Signatory will access CC using his/her account name and CC Password and register his/her Physical Token and set a personal identification number (PIN) to be used in connection with the use of his/her Physical Token, after which the Physical Token will be initialized for use by the Signatory exclusively for purposes of delivering Applications. Where a Soft Token is to be used, the Signatory will access CC using his/her account name and CC Password and set a personal identification number (PIN) to be used in connection with the use of his/her Soft Token, after which the Soft Token will be initialized for use by the Signatory exclusively for purposes of delivering Applications. Upon initialization of the SIDC, the Signatory will be a "SIDC User". The Bank will maintain in its database a user account (Account) for each SIDC User for purposes of managing the SIDC of the SIDC User. Neither the Borrower nor the SIDC User will have any access to the Account. 3. Prior to first use of the SIDC by the SIDC User, the Borrower shall ensure that the SIDC User has received training materials provided by the Bank in use of the SIDC. C. Use of SIDC. 1. Use of the SIDC is strictly limited to use in the delivery of Applications by the SIDC User in the manner prescribed by the Bank in the Agreement(s) and these Terms and Conditions. Any other use of the SIDC is prohibited. 2. The Bank assumes no responsibility or liability whatsoever for any misuse of the SIDC by the SIDC User, other representatives of the Borrower, or third parties. 3. The Borrower undertakes to ensure, and represents and warrants to the Bank (such representation and warranty being expressly relied upon by the Bank in granting SIDC) that each SIDC User understands and will abide by, these Terms and Conditions of Use, including without limitation the following: 4. Security 4.1. The SIDC User shall not reveal his/her PIN to anyone or store or record the PIN in written or other form. 4.2. The SIDC User shall not allow anyone else to utilize his/her SIDC to deliver an Application to the Bank. 4.3. The SIDC 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 SIDC User believes a third party has learned his/her PIN or has lost his/her Physical Token he/she shall immediately notify clientconnection(@worldbank.org. 9 4.5. The Borrower shall immediately notify the Bank at clientconnectiongworldbank.org of any lost, stolen or compromised SIDC, and take other reasonable steps to ensure such SIDC are disabled immediately. 5. Reservation of Right to Disable SIDC 5.1. The Borrower shall reserve the right to revoke the authorization of a SIDC User to use a SIDC for any reason. 5.2. The Bank reserves the right, in its sole discretion, to temporarily or permanently disable a SIDC, de-activate a SIDC User's Account or both. 6. Care of Physical Tokens 6.1. Physical Tokens will remain the property of the Bank. 6.2. The Bank will physically deliver a Physical Token to each Signatory designated to receive one in a manner to be determined by and satisfactory to the Bank. 6.3. Physical 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, Physical 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. Physical 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 Physical Token. 6.4. Without derogating from these Terms and Conditions of Use, other technical instructions on the proper use and care of Physical Tokens are available at http://www.rsa.com. 7. Replacement 7.1. Lost, damaged, compromised (in terms of 4.5, above) or destroyed Physical Tokens will be replaced at the expense of the Borrower. 7.2. The Bank reserves the right, in its sole discretion, not to replace any Physical Token in the case of misuse, or not to reactivate a SIDC User's Account. 10 Attachment 4- Form of IUFR 11 Government of Bangladesh Health Sector Support Project Interim Unaudited Financial Reports (IUFRs) For the period XXXXXXXXXXXXXXXXXX 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 Expenditures under Eligible Expenditure Program (EEP) by Account Codes For the quarter XXXXXXXXXXXXX BDT- 000's BDT- 000's Current Quarter - Current Quarter - Current Quarter - Year To date - Year To date - Year To date - Total IDA credit GFF Total IDA Credit GFF Economic: Uses of Funds Revenue Expenditure 4500 Pay of Officers 4600 Pay of Establishment Total Eligible Expenditures BDT) Total: Eligible Expenditures - in unit USD Health Sector Support Project Statement of Expenditures under Eligible Expenditure Program (EEP) Details by Functional Codes For the quarter0 00 0 0 Figure in Unit BDT Curren Quarter Ouart r to Date Year to Date A/C 4500 A/C 4600 A/C 4500 A/C 4600 A/C 4500 A/C 4600 Functional Code Code Functional Head 2701 Secretariat 2711 Department of Health Services 2712 Divisional Establishments 2713 Civil Surgeon Offices 2714 Upazil Health Offices 2716 Directorate of Nursing 2717 Health Engineering Department 2721 Medical Colleges 2725 Dental Colleges 2726 College of Nursing 2728 Sylhet Ayurved & Tibbia College 2729 Govt. Unani & Ayurvedic Degree College & Hos. 2730 Govt.Homeopathic Degree College & Hospital 2733 Center for Medical Education 2741 Medical College Hospitals 2742 District Hospitals 2743 Other district hospitals 2744 Upazilla Health Complex and Sub Centres 2747 Dental College Hospitals 2751 S -cialized Hot-itals and Institution 2761 Epedemic Disease Control Centres 2771 TB Centres (42) 2772 School Health Centres 7481 Departmentof Famil Planning 7483 Divisional Offices 7485 District Offices 7489 Hospitals and Dispensaries 7491 Other Family Welfare Facilities Total: Eligible Expenditure (Reimbursable)