JUNAID KAMAL AHMAD Country Director India, South Asia Region November 19, 2020 Mr. Sukhbir Singh Controller of Aid Accounts and Audit Department of Economic Affairs, Ministry of Finance Government of India B-Wing, 5th Floor Janpath Bhawan New Delhi, India 110001 Re: India IBRD Loan No. 9169-IN (Meghalaya Integrated Transport Project) Additional Instructions: Disbursement and Financial Information Letter (“DFIL”) Mr. Sukhbir Singh, I refer to the Loan Agreement between India (the “Borrower”) and the International Bank for Reconstruction and Development (the “World Bank”) for the Meghalaya Integrated Transport Project, Loan 9169-IN. The General Conditions, as defined in the Loan Agreement, provide that the Borrower may from time to time request withdrawals of Loan Amounts from the Loan Account in accordance with the Disbursement and Financial Information Letter (DFIL), and such additional instructions as the World Bank may specify from time to time by notice to the Borrower. The General Conditions also provide that the DFIL may specify Project specific financial reporting requirements. I. Disbursement Arrangements, Withdrawal and Reporting of Loan Funds The Disbursement Guidelines for Investment Project Financing, dated February 2017, (“Disbursement Guidelines”) are available in the World Bank’s public website at https://www.worldbank.org and its secure web-based portal (https://clientconnection.worldbank.org) “Client Connection”. The Disbursement Guidelines are an integral part of the DFIL, and the manner in which the provisions in the Disbursement Guidelines apply to the loan is specified below. (i) Disbursement Arrangements Schedule 1 sets out the disbursement methods which may be used by the Borrower, information on registration of authorized signatures, processing of withdrawal applications (including minimum value of applications), and instructions on supporting documentation. (ii) Electronic Delivery. Refer to section 10.01 (c) of the General Conditions. The World Bank may permit the Borrower to electronically deliver applications (with supporting documents) through the World Bank’s web-based portal “Client Connection”. This option may be effected if the officials designated in writing by the Borrower who are authorized to sign and deliver Applications 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”. By signing the Authorized Signatory Letter, the Borrower confirms that it is authorizing such persons to accept Secure Identification Credentials (SIDC) and to deliver the Applications and supporting documents to the World Bank by electronic means. The Borrower may continue to exercise the option of preparing and delivering Applications in paper form. The World Bank reserves the right and may, in its sole discretion, temporarily or permanently disallow the electronic delivery of Applications by the Borrower. By designating officials to use SIDC and by choosing to deliver the Applications electronically, the Borrower 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 World Bank'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 Borrower must prepare Interim unaudited Financial Reports (IFR) for the Project, and not later than forty-five (45) days after the end of each calendar quarter, a consolidated IFR will be submitted by the Meghalaya Infrastructure Development Finance Corporation (MIDFC) through the office of the Controller of Aid, Accounts and Audit (CAAA), covering the financial information of the corresponding quarter. (ii) Audits. Each audit of the Financial Statements must cover the period of one fiscal year of the Borrower, commencing with the fiscal year in which the first withdrawal was made. The audited Financial Statements for each such period must be furnished to the World Bank not later than nine (9) months after the end of such period. III. Other Information For additional information on disbursement arrangements, please refer to the Loan Handbook available on the World Bank’s website (http://www.worldbank.org/) and “Client Connection”. The World Bank 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 the above, please contact the World Bank by email at AskLoans@WorldBank.org using the reference Meghalaya Integrated Transport Project, IBRD Loan No. 9169-IN. Yours sincerely, Hideki Mori Acting Country Director, India Attachments 1. Form of Authorized Signatory Letter 2. Interim unaudited Financial Report (IFR) Schedule 1 : Disbursement Provisions Basic Information Country India Closing Date Section III.D. of Schedule 2 to the Loan Borrower India (DEA/CAAA) Loan Agreement 9169-IN Number Name of the Meghalaya Integrated Transport Project Disbursement Deadline Four months after the closing Project Date Subsection 3.7 ** date. Disbursement Methods, and Supporting Documentation Disbursement Methods Applicability Supporting Documentation Section 2 (**) Subsections 4.3 and 4.4 (**) Direct Payment No Not Applicable Reimbursement Yes Interim unaudited Financial Report in the format provided in Attachment 2 Advance – Designated Account No Not Applicable Special Commitments No Not Applicable Designated Account (Sections 5 and 6 **) Type Ceiling Financial Institution – Name Currency Frequency of Reporting Subsection Amount 6.3 (**) Minimum Value of Applications (subsection 3.5) The minimum value of applications for Reimbursement is USD 1,000,000 equivalent. Authorized Signatures (Subsection 3.1 and 3.2 **) The form for Authorized Signatories Letter is provided in Attachment 1 of this letter Withdrawal and Documentation Applications (Subsection 3.3 and 3.4 **) Authorized Signatories Letter (ASL). The ASL will be sent to the following address: TF and Loan Operations Support Unit (WFACS) The World Bank No. 11, Taramani Main Road Taramani, Chennai – 600 113, India Attention: WFACS Unit. Withdrawal Applications (WAs). All WAs and its supporting documentation will be electronically sent through the World Bank’s system ClientConnection. Additional Instructions -The Eligible Expenditures Program to finance goods, works, non-consulting services, consulting services, incentive schemes, incremental operating costs, and training under Category 1 (section III.A. of schedule 2 to the Loan Agreement), corresponding to budget head 3451-800-O.E.-76-36 with Meghalaya Infrastructure Development and Finance Corporation (MIDFC) to be reimbursed once the Performance Based Conditions (PBCs) from #1 to #8 are achieved. -Category 1, linked to PBCs, will disburse after Category 2 has disbursed in full the allocated amount. * According to section III.C.1. of Schedule 2 to the Loan Agreement ** Sections and subsections relate to the “Disbursement Guidelines for Investment Project Financing, dated February 2017” [Attachment 1 – Form of Authorized Signatory Letter] [Letterhead] Ministry of Finance [Street address] [City] [Country] [DATE] The World Bank 1818 H Street, N.W. Washington, D.C. 20433 United States of America Attention: Mr. Junaid Kamal Ahmad, Country Director Re: Loan No. 9169-IN (Meghalaya Integrated Transport Project) I refer to the Loan Agreement (“Agreement”) between the International Bank for Reconstruction and Development (the “Bank”) and India (the “Borrower”), dated , providing the above Loan. For the purposes of Section 2.02 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 Borrower to sign applications for withdrawal [and applications for a special commitment] under this Loan. For the purpose of delivering Applications to the Bank, including by electronic means, 2[each]of the persons whose authenticated specimen signatures appears below is authorized on behalf of the Borrower, acting 3[individually] 4[jointly], to deliver Applications, and evidence in support thereof on the terms and conditions specified by the Bank. 5 [This confirms that the Borrower is authorizing such persons to accept Secure Identification Credentials (SIDC) and to deliver the Applications and supporting documents to the World Bank by electronic means. In full recognition that the World Bank shall rely upon such representations 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 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 Bank. 3 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 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 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 Bank. 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 Bank records with respect to this Agreement. [Name], [position] Specimen Signature: [Name], [position] Specimen Signature: [Name], [position] Specimen Signature: Yours truly, / signed / [Position] Attachment 2 - Interim unaudited Financial Statements (IFR) Meghalaya Integrated Transport Project (Loan No _______ IN) Implementing Agency: Meghalaya Infrastructure Development and Finance Corporation (MIDFC) Statement of Sources and Uses of Funds IUFR for the period _ _/_ _/20_ _ to _ _/_ _/20 _ _ Figures in INR IUFR 1 Reporting Period Reimbursable S.No Particulars Disbursement % expenditure Amount A - (1+2) Sources of funds 1 Opening balance 1) Project Bank Account 2) Advances (other than Contractual Advances) 2 Receipts: Funds drawn from Budget of Govt of Meghalaya - Externally Aided Project Interest Earned (If any) B - (3+4) Uses of funds 3 Expenditures Component 1: Effective delivery and maintenance of transport infrastructure: Component 2: Asset Management, Institutional Effectiveness, and Transport Services: Component 3: Project Management and Implementation: Component 4: Contingent Emergency Response: - 4 Closing balance - 1) Project Bank Account 2) Advances (other than Contractual Advances) We certify that the expenditure reported in this IUFR is actual expenditure incurred and paid by MIDFC, PWD from the project specific separate account. The necessary supporting documents are retained and available for review. Project Director CFO (Chief Finance Officer). PMU, MIDFC PMU, MIDFC Meghalaya Integrated Transport Project (Loan No _______ IN) Implementing Agency: Meghalaya Infrastructure Development and Finance Corporation (MIDFC) Consolidated Statement of expenditure by Components/Sub-component wise IUFR for the period _ _/_ _/20_ _ to _ _/_ _/20 _ _ Amount in INR IUFR-2 Eligible Claimable Eligible Cumulative eligible Particulars Expenditure for Cumulative Expenditure for Claimable claimable the reporting Expenditure Expenditure till the reporting Expenditure expenditure till date period Year to date reporting period period Year to date (1) Expenditure by Component (Reimbursable) Component 1: Effective delivery and maintenance of transport infrastructure: Sub-Component 1.1 - Improvement, rehabilitation and heavy periodical maintenance Sub-Component 1.2 - Pilots covering: Sub-Component 1.3 - Pilots on innovative maintenance Component 2: Asset Management, Institutional Effectiveness, and Transport Services: Sub-Component 2.1 - Asset Management: Sub-Component 2.2 - Investment Effectiveness Sub-component 2.2.1 - Integrated Transport Network Development Plan (ITNDP) Sub-Component 2.2.2 - Innovative, climate-resilient, nature-based design and construction solutions for roads and bridges Sub-Component 2.3 - Institutional Effectiveness: Sub-component 2.3.1 - Development and implementation Sub-component 2.3.2 - Implementation of a human resources professional development Sub-component 2.3.3 - Development of an overarching transport sector Sub-component 2.4 - Urban Mobility, Transport Services and Road Safety Management Sub-Component 2.4.1 - Urban Mobility and Transport Services: Sub-Component 2.4.2 - Road Safety Management Component 3: Project Management and Implementation: Component 4: Contingent Emergency Response : Total expenditure Total Total (1+2) Project Director CFO (Chief Finance Officer). PMU, MIDFC PMU, MIDFC Note - IUFR 2 is the consolidated statement. However, PWD will submit this statement for their activities to MIDFC on monthly basis. These statements will be part of the IUFRs. Meghalaya Integrated Transport Project (Loan No ________IN) Implementing Agency: Meghalaya Infrastructure Development and Finance Corporation (MIDFC) Contract Monitoring Report IUFR for the period _ _/_ _/20_ _ to _ _/_ _/20 _ _ Amount in INR CONTRACT GROSS EXPENDITURE ADVANCES STATUTORY DEDUCTIONS WITHHELD AMOUNT SECURITY DEPOSIT/RETENSION NET AMOUNT PAID AMOUNT TO BE REPORTED IN Advances - Deductions - Net Net Security Total Expenditure Paid or Net Advances Taxes , Deductions - Net Withheld Withheld(Retaine Deposit PACKAGE/CONTRACT component wise Original Fundable certified Expenditure Adjusted (PAID - Less: Duties, Taxes , Duties, (retained : Less d: LESS (Retained : Less Net Security Deposit Contract Amendmen Price Contract during the certified- during the Adjusted) Royalties Royalties released) FOR Released) Released) for the (Retained : Less During the During the WBR Ref Currency Amount ts Variation Value Quarter Cumulative Quarter Cumulative (QTR) (CUMMULATIVE) THE QTR Cumulative quarter Released) cumulative quarter Cumulative quarter Cumulative 1 2 3 4 = 1 + 2 +3 5 6 7 8 9 10 11 12 13 14 15=5+7-9-11-13 16=6+8-10-12-14 17=13+9+11+15 18=14+10 + 12+16 - - - - - - - - - - - - - - Total Project Director CFO (Chief Finance Officer). PMU, MIDFC PMU, MIDFC Expenditure means: As per the bank terminology, the expenses that are actually incurred and paid are treated as expenditure. Security Deposit/Retention money : This amount is typically eligible for withdrawal from the loan account only when the project releases the funds to the contractor or supplier at the end of the contract period. When the contract period goes beyond the closing date, the Bank will accept retention money as an eligible expenditure if (a) the contract for the work has been completed and the work has been provisionally accepted before the loan closing date. Meghalaya Integrated Transport Project (Loan No. ______ IN) IUFR 4: PBC Achievement & underlying Eligible Expenditure Program (EEP) for the period ended ……… IUFR 4 S.No. Particulars Total in INR 1 Cumulative Gross eligible expenditure for PBCs - 2 PBC Eligible expenditure at disbursement rate of xx% 3 Disbursement till date - 4 Remaining Qualifying Eligible expenditure for PBCs [(3) - (2)] - 5 Value of PBCs Achieved during the period (From PBC Achievement Summary) 6 PBCs Achieved to be disbursed Now (Limited to remaining qualifying eligible incurred expenditure for PBCs) Project Director CFO (Chief Finance Officer). PMU, MIDFC PMU, MIDFC