PATCHAMUTHU ILLANGOVAN Country Director, Pakistan South Asia Region 18-Nov-2019 ___________________ Mr. Noor Ahmed Secretary Economic Affairs Division Ministry of Finance, Revenue and Economic Affairs Islamic Republic of Pakistan Islamabad, Pakistan Re: IBRD Loan No. 8995-PK (Karachi Mobility Project) Disbursement and Financial Information Letter (DFIL). Excellency: I refer to the Loan Agreement between Islamic Republic of Pakistan (the “Recipient”) and the International Bank for Reconstruction and Development (the “Bank”) for the Karachi Mobility Project. The General Conditions, as defined in the Loan Agreement, provide that the Recipient may request withdrawals of Loan funds in accordance with the instructions as the Bank may specify by notice to the Recipient. The General Conditions also provide that the Disbursement and Financial Information Letter (“DFIL”) may set out Program specific financial reporting requirements. This letter constitutes such DFIL, and as revised from time to time, provides such additional requirements. I. Disbursement Arrangements, Withdrawal of Loan Funds and Reporting of Uses of Loan Funds. (i) Disbursement Arrangements. The table in Schedule 1 sets out the disbursement methods which may be used by the Recipient, conditions, information on registration of authorized signatures, processing of withdrawal applications, instructions on supporting documentation, advances, and frequency of reporting. (ii) Electronic Delivery- Section 10.01 (c) of the General Conditions. The Bank may permit the Recipient to electronically deliver applications (with supporting documents) through the Bank’s web-based portal (https://clientconnection.worldbank.org) “Client Connection”. This option may be effected if: (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 Bank 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 may deliver Applications electronically by completing the Form 2380, which is accessible through “Client Connection”. The Recipient may continue to exercise the option of preparing and delivering Applications in paper form. The Bank 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 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 Recipient shall prepare and furnish to the Bank not later than forty-five (45) days after the end of each calendar quarter, interim unaudited financial reports (IFR) for the Program covering the quarter, in the format stated in Attachment 2 to this DFIL. (ii) Audits. Each audit of the 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 Financial Statements for each such period shall be furnished to the Bank not later than six (6) months after the end of such period. III. Other Important Information (i) Client Connection. For additional information on disbursement arrangements, please refer to the Loan Handbook available on the Bank’s public website and “Client Connection”. The 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 Loan, and retrieve related policy, financial, and procurement information. For more information about the website and registration arrangements, please contact the Bank by email at clientconnection@worldbank.org. (ii) Communication. If you have any queries in relation to the above, please contact us at AskLoans@WorldBank.org using the reference: Karachi Mobility Project 8995-PK. Yours sincerely, ______________________________ Patchamuthu Illangovan Country Director, Pakistan South Asia Region Attachments 1. Form of Authorized Signatory Letter 2. Interim unaudited Financial Report (IFR) Schedule 1 to DFIL Disbursement Arrangements Basic Information Country Islamic Republic of Pakistan Closing Date Section III.B.2. of Schedule 2 to Recipient/Beneficiary Islamic Republic of Pakistan the Loan Agreement. Loan 8995-PK Name of the Program Karachi Mobility Project Disbursement Four months after the closing Number Deadline Date date. Subsection 3.7 ** Disbursement Methods and Supporting Documentation Disbursement Methods Methods Supporting Documentation Section 2 (**) Subsections 4.3 and 4.4 (**) Direct Payment Yes Copies of receipts or supplier’s invoices Reimbursement Yes Interim Unaudited Financial Reports (IFRs) in the format stated in Attachment 2 of this DFIL Advance (Designated Yes Interim Unaudited Financial Reports (IFRs) in the format stated in Attachment 2 of this DFIL Account) Special Commitments Yes Request with documents Designated Account (Sections 5 and 6 **) Segregated Forecast for one semester as Type Ceiling provided in the quarterly IFRs. National Bank of Pakistan (through United States Dollar (USD) Financial Institution Currency the State Bank of Pakistan) Frequency of Reporting Subsection Quarterly (Same as IFRs) 6.3 (**) Minimum Value of Applications (subsection 3.5 **) The minimum value of applications for Reimbursement, Direct payment and Special Commitment is USD 100,000 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 Signatures – The ASL will be sent to the following address: The Bank/Association Attention: Loan Operations Unit, WFACS (Pakistan) 20-A Shahrah-e-Jamhuriat, G-5/1 Islamabad, Islamic Republic of Pakistan Withdrawal Applications (WAs)- All WAs and its supporting documentation will be electronically sent through the Bank’s system ClientConnection. Notes Part 2.(c) of the Project – The Loan will finance working capital (the amount to be contributed by the Project Implementing Entity to the financing of the working capital under the concession agreement to be entered into for the Bus Rapid Transit (BRT) operation along the Yellow Corridor. ** 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. Patchamuthu Illangovan, Country Director Re: Loan No. 8995-PK Karachi Mobility Project I refer to the Loan Agreement (“Agreement”) between the International Bank for Reconstruction and Development (the “Bank”) and the Islamic Republic of Pakistan (the “Recipient”), 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 Recipient to sign applications for withdrawal [and applications for a special commitment] under this Loan. For the purpose of delivering Applications to the Bank, 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 Bank. 5[Thisconfirms that the Recipient is authorizing such persons to accept Secure Identification Credentials (SIDC) and to deliver the Applications and supporting documents to the Bank by electronic means. In full recognition that the Bank shall rely upon such 1 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 Bank. 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 Bank. 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 Bank. 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 Bank. 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 Bank. 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 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 Reports (IFRs) Karachi Mobility Project IBRD Credit No. ______ Sources and Uses of Funds Statement For the Quarter Ended___________________ Notes Cumulative at Actual for Actual Cumulative for Start of Quarter Quarter Year-To-Date Project Life Sources of Funds Opening cash balance - IBRD Designated Account - Government of Sindh Cash Receipts - IBRD Designated Account - Government of Sindh Cash available (opening balance +receipts) Less: Uses of funds Goods, works, non-consulting services, consultants’ services, , salary or allowances of project staff, Insurance Premier, Training and Workshops, and Incremental Operating Costs Cash available less total expenditures Closing cash balances - IBRD Designated Account - Government of Sindh Total closing cash balance Karachi Mobility Project IBRD Credit No. ______ Interim Financial Report for the XXXX VARIANCE ANALYSIS OF USE OF FUNDS Cumulative for the Year (Pak Rs) Cumulative - Inception to Date (Pak Rs) Component Details Variance Variance Variance Planned Rs Actual Rs Planned Rs Actual Rs Planned Rs Actual Rs Amount Rs %age Amount Rs %age Amount Rs %age Category 1: Urban Road Infrastructure - Yellow Corridor Goods, works, non-consulting services, consultants’ services, Salary or allowances of project staff, Insurance Premier, Training and Workshops, Incremental Operating Costs Sub Total2: Development and Category Operationalization of a BRT System- Yellow Corridor Goods, works, non-consulting services, consultants’ services, Salary or allowances of project staff, Insurance Premier, Training and Workshops, Incremental Operating Costs Sub Total Category 3: Capacity Building and Technical Assistance Goods, works, non-consulting services, consultants’ services, Salary or allowances of project staff, Insurance Premier, Training and Workshops, Incremental Operating Costs Sub Total Grand Total Note: Reasons for variance in excess of 10% should be explained as notes Karachi Mobility Project IBRD Credit No. ______ Cash Forecast for Next Two Quarters Ending ____________________ Million Pak Rupees Cash Requirement for the next two quarters Disbursement Eligible (a) (b) (c) (d) Category % Cash Cash Cash IDA Eligible cash requirement for requirement for requirement for requirement for the next 1st the next 2nd the next 2 the next 2 quarter quarter quarters quarters (a+b) (in USD) Category 1: Urban Road Infrastructure - Yellow Corridor Goods, works, non-consulting services, consultants’ services, , salary or allowances of project staff, Insurance Premier, Training and Workshops, and Incremental Operating Costs Category 2: Development and Operationalization of a BRT System- Yellow Goods, works, non-consulting services, consultants’ services, , salary or allowances of project staff, Insurance Premier, Training and Workshops, and Incremental Operating Costs Category 3: Capacity Building and Technical Assistance Goods, works, non-consulting services, consultants’ services, , salary or allowances of project staff, Insurance Premier, Training and Workshops, and Incremental Operating Costs Total: Karachi Mobility Project IBRD Credit No. ______ DESIGNATED ACCOUNT ACTIVITY STATEMENT For the Quarter Ended: _________________ Currency : US Dollars PART I 1. Cumulative Advances by Bank to the end of Current Reporting Period 0 2. Cumulative Expenditure at the beginning of Current Reporting Period 0 3. Outstanding Advances to be accounted (Line 1 minus Line 2) 0 PART II 4. Opening DA balance at beginning of Reporting Period 0 5. Add/Subtract: Cumulative Adjustments (if any) 0 6. Advances from World Bank during Reporting Period 0 7. Sub total of Advances and Adjustments 0 8. Outstanding Advances to be accounted for (Line 4 plus Line 7) * 0 9. Closing DA balance at the end of Current Reporting Period 0 10. Add/Subtract: Cumulative Adjustments (if any) 0 11. Expenditure for Current Reporting Period 0 Prior Review Post Review 12. Sub total of Adjustments and Expenditure (Line 10 Plus Line 11) 0 13. Add Line 9 and Line 12 0 14. Difference if any (Line 8 minus Line 13) 0 PART III 15. Total Forecasted amount to be paid by World Bank 0 16. Less Closing DA balance after adjustments 0 17. Imprest Cash Balance 0 18. Direct payments/SC payments 0 19. Add Line 16 and Line 17 0 20. Cash Requirement from World Bank for next two reporting Periods 0 (Line 15 minus Line 18 and minus Line 19) * Unadjusted advances from Designated Account Karachi Mobility Project IBRD Credit No. ______ Post Review Expenditures (In Pak Rupees '000's) Cumulative at Start of Actual Year-To- Cumulative for Description Note Actual for Quarter Quarter Date Project Life Category 1: Urban Road Infrastructure - Yellow Corridor Goods, works, non-consulting services, consultants’ services, Salary or allowances of project staff, Insurance Premium, Training and Workshops, Incremental Operating Costs Sub Total Category 2: Development and Operationalization of a BRT System- Yellow Corridor Goods, works, non-consulting services, consultants’ services, Salary or allowances of project staff, Insurance Premium, Training and Workshops, Incremental Operating Costs Sub Total Category 3: Capacity Building and Technical Assistance Goods, works, non-consulting services, consultants’ services, Salary or allowances of project staff, Insurance Premium, Training and Workshops, Incremental Operating Costs Sub Total Grand Total Karachi Mobility Project IBRD Credit No. ______ DA Expenditures for Contracts Subject to Prior Review For the Quarter Ended __________ Disbursement Name & Address of Contractor Contract Currency & Invoiced Amount by % Financed by Elligible for IDA's Financing in Total Amount Total Amount Invoice Date, Number, Contract Category Value Currency IDA Contract's Currency Paid from DA Paid in US Dollar Balance carried forward Contract Reference/ Signing Date PKR (Col.3) (Col.4) (Col.5) (Col.6)=(Col.4)*(Col.5) (Col.7) (Col.8) Grand Total 0 0 0 0 0 FOR OFFICIAL USE ONLY Victor Ordonez, WFACS. Cleared with and cc: Said Dahdah, GTR05 Hélène Bertaud, LEGES Hasan Afzal Zaidi, GTR05 Cc: Akmal Minallah, GGOAP