Saroj Kumar Jha Regional Director Mashreq Department Middle East and North Africa Region Date: February 23, 2022 Dr. Neil Khor Acting Chief of Staff, Office of the Executive Director United Nations Human Settlements Programme (UN-Habitat) P.O. Box 300-30, Nairobi 00100, Kenya Re: Grant No. TF0B7930 (Beirut Housing Rehabilitation and Cultural and Creative Industries Recovery Project) Additional Instructions: Disbursement and Financial Information Letter I refer to the Grant Agreement (“Agreement”) between the International Bank for Reconstruction and Development/International Development Association (“World Bank”), acting as administrator of Lebanon Financing Facility for Reform, Recovery and Reconstruction Multi-Donor Trust Fund, and UNITED NATIONS HUMAN SETTLEMENTS PROGRAM (the “Recipient”) for the above-referenced project, dated February 23, 2022. The Standard Conditions, as defined in the Grant Agreement, provide that the World Bank may issue additional instructions regarding the withdrawal of the proceeds of Grant TF0B7930 (“Grant”), and may set out Project specific financial reporting requirements . This letter (“Disbursement and Financial Information Letter”), as revised from time to time, constitutes such additional instructions. I. Disbursement Arrangements and Withdrawal of Grant Funds The World Bank Disbursement Guidelines for Projects, dated February 1, 2017, (“Disbursement Guidelines”) are available in the World Bank's public website at https://www.worldbank.org, and are an integral part of the Disbursement and Financial Information Letter. The manner in which the provisions in the Disbursement Guidelines apply to the Grant 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 The table in Schedule 1 provides 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 advances), instructions on supporting documentation, and frequency of reporting on the Designated Account. (ii) Withdrawal of Grant Funds (Electronic Delivery) Section 7.01 (c) of the Standard Conditions. The Recipient will deliver Withdrawal Applications (with supporting documents) electronically through the Bank’s web-based portal “Client Connection” at https://clientconnection.worldbank.org. This option will be effected after the officials designated in writing by the Recipient who are authorized to sign and deliver Withdrawal Applications 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 persons to accept Secure Identification Credentials (SIDC) and to deliver the Applications and supporting documents to the Bank by electronic means. The Recipient may exercise the option of preparing and delivering Withdrawal Applications in paper form on exceptional cases (including those where the Recipient encounters legal limitations), and which were previously agreed with the Bank. 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 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 Section 2.07 (a) and (b) of the Standard Conditions. (i) Financial Reports. The Recipient shall prepare, on quarterly basis, interim unaudited financial reports related to the Project, in accordance with accounting standards established pursuant to the Financial Regulations and in its standard format for such reports. The first said interim unaudited financial reports shall be furnished to the World Bank no later than forty-five (45) days after the end of the quarter after the Effective Date and, shall cover the period from the incurrence of such quarter period; thereafter, each interim unaudited financial report shall be furnished to the World Bank not later than forty-five days after each subsequent quarter, and shall cover such quarter period. (ii) Audits. The Recipient shall ensure that the audit of the Project is governed by its Financial Regulations and Rules. In addition, the audit of the Project and any additional due diligence activities as agreed by the Recipient and the World Bank shall be carried out in accordance with the provisions set forth under Section II.B of Schedule 2 to the Financing Agreement. III. Other Important 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 above reference. Yours sincerely, ______________________________ Saroj Kumar Jha Regional Director Attachments 1. Form of Authorized Signatory Letter 2. Form of Interim unaudited Financial Report (IFR) Cc with copies: United Nations Human Settlements Programme (UN-Habitat) Riad El Solh Beirut – Lebanon christiansen@un.org Schedule 1 - Disbursement Provisions Basic Information Country Republic of Lebanon Closing Date Section IV.B.5 of Schedule 2 to Recipient UNITED NATIONS HUMAN SETTLEMENTS the Grant Agreement Grant PROGRAM (UN-Habitat) TF0B7930 Number Name of the Project Beirut Housing Rehabilitation and Disbursement Four (4) months after the closing Cultural and Creative Industries Deadline Date date Recovery Subsection 3.7 ** Disbursement Methods, and Supporting Documentation Disbursement Methods Methods Available Supporting Documentation Section 2 (**) Subsections 4.3 and 4.4 (**) Direct Payment No Not Applicable Reimbursement No Not Applicable Advance (into a Designated No Not Applicable Account) Special Commitments No Not Applicable Designated Account (Section 5 and 6 **) Type Not Applicable Ceiling Not Applicable Financial Institution - Name Not Applicable Currency Not Applicable Frequency of Reporting, Not Applicable Not Applicable Amount Subsection 6.3 (**) Minimum Value of Applications (subsection 3.5) Not Applicable 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 **) A letter in the Form attached (Attachment 1) 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 Withdrawal Applications: International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Attention: Saroj Kumar Jha Country Director All Withdrawal Applications and its supporting documentation will be electronically sent via the Association’s web portal Client Connection Additional Information The Disbursement methods are (i) UN advance and (ii)UN commitment. The Currency of the UN account is USD. The frequency of Reporting is on Quarterly basis. The UN advance Ceiling is variable and based on cash forecast for 6 months of implementation as provided in the Interim Financial Report in attachment 2 of this DFIL. The supporting documentation to use while reporting on eligible expenditures financed from the UN advance are the Interim Financial Report in the format provided in attachments 2 of this DFIL. All advances made by the Association will be deposited into an official UN-Habitat bank account in accordance with the provisions of applicable provisions of the Financial Regulations and Rules of UNITED NATIONS HUMAN SETTLEMENTS PROGRAM (UN-Habitat). Other Advances of the CCI Grants amount under category 2 can be documented only after they have been disbursed by the beneficiaries of the CCI Grants against eligible expenditures. Any unused balance should be returned to the World Bank before the end of the grace period. ** Sections and subsections indicated relate to the Disbursement Guidelines for Investment Project Financing dated February 2017. Attachment 1 10/ Form of Authorized Signatory Letter [Letterhead] United Nations Human Settlements Programme UN-Habitat [Street address] [City] [Country] [DATE] The World Bank 1818 H Street, N.W. Washington, D.C. 20433 United States of America Attention: [Country Director] Dear [Country Director]: Re: Grant No. ____-___ (____________ Project) I refer to the [Grant] [Letter] Agreement (“Agreement”) between the [International Bank for Reconstruction and Development/International Development Association] (“[World Bank”][“Association”])], acting as [an implementing agency of the Global Environmental Facility] [administrator of the Global Partnership on Output-based Aid] [administrator of name of the trust fund], and [name of recipient] (the “Recipient”), dated _______, providing the above Grant. For the purposes of Section 3.04 (b) of the Standard Conditions, as defined in the Agreement, any [1one] 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 [World Bank] [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 [World Bank] [Association]. 1 Instruction to the Recipient when sending this letter to the World Bank: 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/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 World Bank/Association. 3 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 World Bank/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 World Bank/Association. 5[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 [World Bank] [Association] by electronic means. In full recognition that the [World Bank] [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 Recipient represents and warrants to the [World Bank] [Association] 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] [Association] records with respect to this Agreement. [Name], [position] Specimen Signature: ____________________ [Name], [position] Specimen Signature: ____________________ [Name], [position] Specimen Signature: ____________________ Yours truly, / signed / ______________ [Position] 5 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 World Bank/Association. Attachments 2 Interim Certified Financial Statements for the period ending Statement of cash receipts and payments (Expressed in US dollars) Beirut Housing Rehabilitation and Cultural and Creative Industries Recovery Grant TF0B7930 Income Contribution Received Total Income Expenditures Staff and other personnel cost Supplies, Commodities and Materials Equipment, Vehicles and Furniture Contractual Services Travel Transfers and Grants General Operating and Other Direct Costs Total direct expenditures Indirect Support Costs (United Nations) Total expenditures Available Balance Certified by: Date: Name Programme Management Officer United Nations Human Settlements Programme UN-Habitat Cleared by: Date: Name Chief, Accounts Section, BFMS UNON Approved by: Date: Name Director (ai), Management, Advisory and Compliance United Nations Human Settlements Programme UN Habitat Interim unaudited Financial Statements Beirut Housing Rehabilitation and Cultural and Creative Industries Recovery Grant TF0B7930 Interim unaudited Financial Statements Detailed Expenses Beirut Housing Rehabilitation and Cultural and Creative Industries Recovery Grant TF0B7930 Grant - Expense Funded Actual Total Budget Parent Grant Sending Funds Centre WBSE WBSE Text Allotment Commitment Balance Grouping Program Expenditure Consumed Grant (Text) FOR OFFICIAL USE ONLY Prepared by: Georges Tony Abou Rjaily -Finance Analyst - WFA Reviewed by: FO Maiada Mahmoud Abdel Fattah Kassem -Finance Officer - WFA Cleared with and cc: Daria Goldstein: Country lawyer Waleska Magalhaes Pedrosa: Legal Analyst Karima Ben Bih – Disaster Risk Management Specialist Cc: Rock Jabbour Financial Management Analyst