OFFICIAL DOCUMENTS ~ ~~.!12_1!~~NK SHUBHAM CHAUDHURI Country Director Islamic Republic of Afghanistan. SAR H.E. Prof. Mohammad Humayon ()ayoumi Acting Minister of Finance Ministry of Finance Kabul. Islamic Republic of Afghanistan RE:_IDA Grant D384-AF and ARTF Grant No. TFOA8443. (Women's Economic Empowerment Rural Development Project) Disbursement and Financial Information Letter (DFIL) Excellency: I refor to (I) the Grant Agreement between the Islamic Republic of Atghanistan (the -Recipient''). and the Intemational Development Association (the ··Association.. ), acting as an Administrator of the grants funds provided by various donors to the Afghanistan Reconstruction Trust Fund (ARTF), for the ARTF Grant No. TFOA8443. and (2) the Financing Agreement between the Recipient and Association for the IDA Grant No. D384-AF. These legal agreements provide that the Association may issue additional instructions regarding the \.Vithdrawal of the funds of these grants (ARTF Grant and IDA Grant, collectively the .. Financing .. ). This letter ("Disbursement and Financial Information Letter''). as revist..-d from time to time. constitutes the additional instructions. The /)ishur.wment ( iuidelines }i,r Investment Project Financing. dated February 2017. ( ··Disbursement Guidelines .. ) are an integral part of the Disbursement and Financial Information Letter, and arc available in the Association's public website at https://worldbank.org. The manner in which the provisions in the Disbursement Guidelines apply to the Financing is specified below. Sections and subsections in parenthesis below refer to the relevant sections and subsections in the Disbursement Uuidelines and. unless otherwise defined in this letter. the capitalized terms used have the meaning ascribed to them in the Disbursement Guidelines. l. Disbursement Arrangements. Withdrawal of Financing Funds, and Reporting of Uses of Financing Funds. General Provifion.,~ The table in Schedule I sets out the disbursement methods which may be used by the Recipient. disbursement conditions. information on registration of authorized signatures, processing of \\ ithdrawal applications (including minimum value of applications, processing of Direct Payments. and advances). and instructions on supporting documentation. (ii) Electronic Deli~·ery. Reference: (A)li,r the ARTF. Section 7. 0 I ,~(the Standard ( 'unclitio11s.for Grants: und (B1for the /DA grunl..\'ection I l.(J/ ar:i_!cors) ..Client Connection"'. This option may be effected if the oflicials designated in writing by the Recipient who are authori/.ed to sign and deliver Applications have registered as users of .. Client Connection"'. The designated otlicials may deliver Applica1ions eleclronically by completing lhe fonn 2380. which is accessible through ..Client Connection". By signing the Authorized Signatory Letter. the Recipient confirms that it is authorizing such persons to accepl Secure Identification Credentials (SIIX') and to deliver the Applications and supporting documents to the Association by electronic means. The Recipient may continue to exercise the option of preparing and delivering Applications in paper fonn. The Association reserves the right and may. in its sole discretion. temporarily or pennanently disallow the electronic delivery of Applications by the Recipient. By designating officials to use SIOC and by choosing to deliver the Applications electronically. the Recipient confinns through the authorized signatory letter its agreement to: (a) abide by the Tenns and Conditions of Use of Secure Identification Credentials in connection with Use of Elt.>etronic 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 tenns and conditions. II. f'ioancial Reports and Audits. App/icahle to the /DA Gram. in line with Section 5.09 of the (ieneral <·011cli1iomfor IDA Fi1U.J11£'illK: lnwstment Project Financinx. 1 (i) Financi,,J Reports. The Recipient must prepare and furnish to the Association not later than forty-five (-l5) days after the end of each calendar quarter, interim unaudited financial reports ( .... IFR'") for the Project covering such quarter. (ii) Audits. Each audit of the Financial Statements must cover the period of one fiscal year of the Recipient, commencing with the fiscal year in which the first withdrawal was made. The audited Financial Statements fix each such period must be furnished to the Associations not later than six (6) months after the end of such period. Ill. Other Information. For additional infonnation on disbursement arrangements. plea..e refer to the Loan Handbook available on the Association's website 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 Financing, and retrieve related policy, financial, and procurement infonnation. For more infonnation about the website and registration arrangements. please contact the Association by email at c:!it,!J1tcgn_Q~g!~m@wQfJd~!llJ~.org. If you have any queries in relation to the above, please contact Satish Kumar Shivakumar. Finance Officer. at satishkumarl@.worldbank.org, or Chau-Ching Shen, Senior Finance Officer. at cshen(it:worldbank.org. with copy to Janardhanan Ramanujam at irnm~nµjam(a1worldbaQf<..org using the above reference. Yours sincerely. / Shubham Chaudhuri Country Director Afghanistan. South Asia Region International Development Association ; Hoth provisions. i.e. Financial Reports and Audit. arc applicable to the ARTF grant. Attachments 1. Form of authorized Signatories 2. Form of Interim Unaudited Financial Report Schedule I : Disbursement Pro~·isions Stated in (A) section 111.B ..2. of Schedule .2 to the IDA IDA Grant I D384-AF Closing Date Financing Agreement. and (B) section IV.8 ..2. of Schedule 2 to the ARTF Grant Agreement. __ --·-- _ ___ _ ARTF Grant I IFOA8443 I Name of the Disbursement Four ( 4) months after the closing date. Project Deadline Date Supporting Documentation Section 2 I• I .. _____ ____ Suhsections ./. 3 and ./ . ./ r • I ___ _ _ 1 f Direct Pavment • Yes i Cop~ of records T ---------------· ···-------- ----~ Reimbursement ------·-- ---·--- _yes ______ j Interim unaudited Financial Report (IFR) (Attachment 2 Advance - -·· ---- -- .... Yes.... _ i Interim unaudited Financial Report (IFR) (Attachment 2 Yes I Cop~ of Letter of Credit - --- ---- - --- ---------- ··-··------ --·-·- -------- . -----~·- Based on two (2) quarters· forecast of eligible expenditures to be financed out of the Freque11q• of Reportil1g ti.Inds in the DA. Type of the De.dg11ated Accounts DA "A" for IDA Grant No.0384-AF Segregated: two (2) segregated designated account in USD will be established DA ··B'' for ARTF Grant No. TFOA8443 under the Project. one for the ARTF and the other for the IDA grant. Applications for the Financing (both IDA Grant and ARTF Grant under the Project) will be signed by the ollicial(s) authorized to sign Applications as indicated in your letter dated August 20.2017. Whenever changes are necessary, a letter in the Form attached (Attachment I) should be furnished to the Association at the address indicated below, providing the narne(s) and specimen signature(s) of the official(s) I authorized to sign Applications: The World Bank Count!) Otlice Kabul, Afghanistan Attention: WFACS The World Bank Country Otlicc Kabul. Afghanistan Attention: WF ACS (i) Please refer to Schedule 2. 111.B.1 of the IDA Financing Agreement and Schedule 2. IV.B. I of the ARTF Grant Agreement for disbursement conditions for disbursement categories 2 and 3. (ii) Expenditures for Seed Grants will be recognized when IDA'ARTF funds reach the bank account of the revolving fund established under Part 2 (al of the Project. Expenditures for Catal)1ic Grants under Part 3 (b) of the Project will be recognized on actual basis. (Iii) rhe use of Advance method and designated account as stipulated in this Attachment I will not be allowed until the issue of lapsed loan (Second Education Quality Improvement Project. ARTF Tr093962) is fully resolved. ·-···-·-·---·- * SecTw11.1 ,md .rnhsectiom relate to the "Dishursi:menr ( iwde/inesfiir lnwstmenr Proiect Financing··. datl.'d flthruary :!/J, - Attachment 1 - Form of Authorized Signatory Letter [Letterhead] Ministry of Finance {Street address) [City] [Country] [DATE] The World Bank Country Office Kabul, Afghanistan Attm1tion: Country Director RE:_IDA Grant D384-AF and ARTF Grant No. TFOAS443 (Women's Economic Empowerment Rural Development Project) I refer to (1) the Grant Agreement between the Islamic Republic of Afghanistan (the "Recipient"), and the International Development Association {the "Association"), acting as an Administrator of the grants funds provided by various donors to the Afghanistan Reconstruction Trust Fund (ARTF), and (2) the Financing Agreement between the Recipient and Association, dated - - 1 providing the above Financing. For the purposes of Section 2.03 of the General Conditions as defined in the IDA Financing Agreement and Section 3.04 (b) of the Standard Conditions as defined in the ARTF Grant Agreement, any 2(one] of the persons whose authenticated specimen signah.ues appear below is authorized on behalf of the Recipient to sign applications for withdrawal and applications for a special commitment] under the above Financing. For the purpose of delivering Applications to the Association, 3(each] of the persons whose authenticated specimen signatures appears below is authorized on behalf of the Recipient, acting 4(individually) S[jointlyJ, to deliver Applications, and evidence in support thereof on the terms and conditions specified by the Association. &('"Ibis confirms that the Recipient is authorizing such persons to accept Secure Identification Credentials (SIDq and to deliver the Applicatioru; and supporting documents to 2 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 lbsociation. 3 Instruction to the Recipient: Stipulate if more than one person needs to jointly sign Applications, if so, please jndicate the actual number. Please delete this footnote in.fmal letter that is sent to the Associalion. 4 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 lefler that is senJ to the Association. s lnstruction to the Recipient: Use this bracket Qil}y if several individuals must jointly sign each Application; if this is not applicable, please delete. Please delete this footnote in final letter thut is sent to the A.vsociafi()n,- 6 Instruction to the Recipient: Add d1is paragraph if the Recipient wishes to authorize the listed persons to accept s~ure Identification Credentials and to deliver Applications by electronic means; if this is not applicable, please delete the paragraph. Please delete thi.Yjootnote injinal letter that is sent to che Association. the Association by eJectronic means. In full recognition that the Association shall rely upon such representations and warranties, including without limitation, the representations and warranties contained in the Tem1s and Omditions of Use of Secure [dmtification 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 As.sociation 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/ Attachment 2- Form ofloterim Unaudited Financial Report