FFICIAL THE WORLD &U ET IBRD* IDA I WORLD BANKGR CUM ENTS I9VW 6kk /3, 2019 Mr. Faiziddin Qahhorzoda Minister of Finance Ministry of Finance 3, Akademikov Rajabovykh Ave. Dushanbe, 734025 Republic of Tajikistan Re: IDA Grant D4400-TJ (CASA 1000 Community Support Project) Additional Instructions: Disbursement and Financial Information Letter (DFIL) Dear Mr. Qahhorzoda: I refer to the Financing Agreement between Republic of Tajikistan (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 Grant amounts from the Grant 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 Grant Funds, and Reporting on Uses of 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 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 will electronically deliver applications (with supporting documents) through the Association's web-based portal (https://clientconnection.worldbank.or ) "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 will 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 1 THE WORLD BANK IBRD * IDA I WORLD BANK GROUP 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 of preparing and delivering Applications in paper form on an exceptional basis (including when encountering legislative limitations), and when pre-agreed with the Association. 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 shall cause the Project Implementing Entities to 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, in form and substance satisfactory to the Association. (ii) Project Audits. The Recipient shall cause the Project Implementing Entities to have the consolidated Project Financial Statements periodically audited by independent auditors acceptable to the Association, in accordance with consistently applied auditing standards acceptable to the Association. Each joint audit of the consolidated 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 consolidated Project Financial Statements for each such period shall be (a) furnished to the Association not later than six (6) months after the end of such period and (b) made publicly available in a timely fashion and in a manner acceptable to the Association. III. Other Information For additional information on disbursement arrangements, please refer to the Loan Handbook available on the Association's website (http://www.worldbank.ore/) 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 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 he above, please contact the Association by email at askloans(@iworldbank.or_. o sincerely, Jan-Peters 01ters Country Manager for TaJiki an 2 THE WORLD BANK IBRD * IDA I WORLD BANKGROUP Attachments 1. Form of Authorized Signatory Letter (ASL) 2. Forms of Statement of Expenditure (SOE) 3. Form of Designated Account Reconciliation Statement Cc with copies: State Unitary Enterprise "Energy Sector Project Management Unit" (ES PMU)/ Barqi Tojik (BT) National Social Investment Fund for Tajikistan (NSIFT) 3 Schedule 1: Disbursement Provisions Country Republic of Tajikistan Closing Date Section III.B.2. of Schedule 2 to Recipient Republic of Tajikistan the Financing Agreement IDA Grant IDA Name of the Project CASA 1000 Community Support Disbursement Four months after the Closing Number D440-TJ Project Deadline Date Date (Subsection 3. 7* ______________________fst itssiidit Metthods indKuppigDbesientation . >KK; s 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 Statement of Expenditure (SOE) in the formats provided in Attachment 2 of the DFIL Designated Account* Yes* Statement of Expenditure (SOE) in the formats provided in Attachment 2 of the DFIL and Designated Account Reconciliation Statement in the format provided in Attachment 3 of the DFL Special Commitments Yes Copy of Letter of Credit Designated Akccount (Sections 5 and*;6 *) Segregated - 2 new separate Designated Accounts (DA) to be opened for the IDA Grant: Type 1) DA to be managed by ES PMU/BT for category 1 Ceiling Fixed expenditures 2) DA to be managed by NSIFT for categories 2, 3 and 4 expenditures Financial Institution - To be established at a financial institution acceptable to Currency USD Name the Association Frequency of Reporting Quarterly, or more frequently if needed. Amount Up to 500,000 each* (Subsection 6.3 **) Minimum Value of Applic6tsi m bsection 3. 5)- The minimum value of applications for Reimbursement, Direct Payment and Special Commitment is USD 50,000 equivalent. Authorized Signatures (Subsection 3.1 and 3.2 *The frmnfor Authorized Atachnt I ofthis ler Withdrawal and Documentation Appicatioqis (Subsection 3.3and3.4 **n)& The World Bank Radnicka cesta 80, 9th floor Zagreb, HR-10000, Croatia Attention: Loan Department (WFACS) Note: All Withdrawal and Documentation Applications will be electronically delivered to the Association, via the Association's website Client Connection. * Condition for the Designated Account: In accordance with the subsection 5.2 of the Disbursement Guidelines, usage of the Designated Account may not be permitted in case the Recipient has failed to refund undocumented advances in the Designated Account of any other Grant or Credit to, or guaranteed by, the Recipient within two months after the Disbursement Deadline Date for that Grant or Credit. In such case, the advance/Designated Account method will become available only after the undocumented advance under the relevant lapsed Grant or Credit has been refunded to and received by the Association. Category 3 usage - IDA Grant funds allocated to the Category 3 expenditures will become available only once the MDTF Grant proceeds (co- financing the project) have been fully disbursed, and for the expenditures that have not been financed or agreed to be financed under the MDTF Grant. ** Sections and subsections relate to the "Disbursement Guidelines for Investment Project Financing ", dated February 2017. Attachment 1 - Form of Authorized Signatory Letter [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 Grant D440-TJ (CASA 1000 Community Support Project) I refer to the Financing Agreement ("Agreement") between the International Development Association (the "Association") and Republic of Tajikistan (the "Recipient"), dated providing the above 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 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 Terms and Conditions of Use of Secure Identification Credentials in connection with Use of Electronic 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 tojointly sign Applications, if so, please indicate the actual number. Please delete this footnote in final letter that is sent to the Association. I 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. 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 - Forms of Statement of Expenditure Statement of Expenditure (SOE) For Goods, works, services, training, IOC Payments made during the period from to Grant No.: Application No.: Category No.: SOE No.: 1 2 3 4 5 6 7 8 9 10 11 Supplier's WB Type of Good or Currency and Total Currency and % Financed Amount Currency and Exchange Date of Remarks Name Contract Service Amount, and Date of Total Amount by Eligible Amount Paid Rate Payment Number in (CW/GO/CS/OP/TR) Contract of Invoice IBRD/IDA/TF for from Client / Brief Description Covered by Financing Designated Connection Application (5 x 6) Account (if (for Prior Applicable) Review Contracts) TOTALS Supporting documents for this SOE retained at (location) GRANT NO.: DATE: Statement of Expenditure (SOE) WA NO.: For PAGE NO.: Sub-grants CATEGORY NUMBER: 1 2 3 4 5 6 7 8 9 10 11 12 Code of Brief 100% of Amount Reference or Name Currency Amount of Description Amounts paid % requested in Date of Rate Date of Amount Number of of of Sub-grant of in this Financ this Application Payment of Withdrawal withdrawn Sub-grant Benefic. Sub-grant Expenditures Application by IDA (Col 6 X 7) Exchange from DA from DA 13-Total Attachment 3 - Form of Designated Account Reconciliation Statement DESIGNATED ACCOUNT RECONCILIATION STATEMENT LOAN/CREDIT/PPF/COFINANCIER NUMBER ACCOUNT NUMBER WITH (BANK) I. TOTAL ADVANCED BY WORLD BANK (OR COFINANCIER) US$/EUR 2 LESS: TOTAL AMOUNT RECOVERED BY WORLD BANK - US$/EUR 3. EQUALS PRESENT OUTSTANDING AMOUNT ADVANCED TO THE DESIGNATED ACCOUNT (NUMBER I LESS NUMBER 2) = US$/EUR 4. BALANCE OF DESIGNATED ACCOUNT PER ATTACHED BANK STATEMENT AS OF DATE US$/EUR 5. PLUS: TOTAL AMOUNT CLAIMED IN THIS APPLICATION NO. + US$/EUR 6. PLUS: TOTAL AMOUNT WITHDRAWN AND NOT YET CLAIMED REASON: + US$/EUR 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 + US$/EUR 8. MINUS: INTEREST EARNED - US$/EUR 9. TOTAL ADVANCE ACCOUNTED FOR (NO. 4 THROUGH NO. 9) US$/EUR 10. EXPLANATION OF ANY DIFFERENCE BETWEEN THE TOTALS APPEARING ON LINES 3 AND 9: 11. DATE: SIGNATURE: TITLE: FOR INTERNAL DISTRIBUTION ONLY Prepared by: Jasna Mestnik, Finance Officer - WFACS Cleared with and cc: Pilar Gonzalez/Ruxandra Costache, Country Lawyer - LEGLE Janelle Plummer, Task Team Leader - GSU03 Cc: Niso Bazidova, Financial Management Analyst - GGOEE