THE WORLD BANK IBRD* IDA I WORLDBANKGROUP O FFICIAL JUNAID KAMAL AHMAD Country Director DOCU MENTS India, South Asia Region June 25, 2019 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: IBRD Loan 8928-IN (Uttarakhand Public Financial Management Strengthening Project) Additional Instructions: Disbursement and Financial Information Letter. Dear Mr. Sukhbir, I refer to the Loan Agreement between India (the "Borrower") and the International Bank for Reconstruction and Development (the "World Bank") for the above-referenced project, dated June 25, 2019. The General Conditions, as defined in the Loan Agreement, provide that the World Bank may issue additional instructions regarding the withdrawal of the proceeds of Loan 8928-IN ("Loan"), and specify certain financial management reporting and audit requirements. This letter ("Disbursement and Financial Information Letter" or "DFIL"), as revised from time to time, constitutes such additional instructions. The Disbursement Guidelines for Investment Project Financing dated February 2017, ("Disbursement Guidelines") are available in the Bank'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 this Disbursement and Financial Reporting Letter, and the manner in which the provisions in the guidelines apply to the Loan is specified below. I. Disbursement Arrangements, Withdrawal and Reporting of Loan Proceeds. (i) Disbursement Arrangements. Instructions (Schedule 1). The table in Schedule 1 provides the disbursement methods, information on registration of authorized signatures, processing of withdrawal applications, instructions on supporting documentation, the closing date, and the disbursement deadline date. (ii) Electronic Delivery. Refer to section 10.01 (c) of the General Conditions: The Borrower 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 Borrower 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 Borrower 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 Borrower may exercise the option of preparing and delivering Withdrawal Applications in paper form on exceptional cases (including those where the Borrower 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 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 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 Information. (i) Financial Reports. The Borrower shall prepare and furnish to the Bank not later than forty-five (45) days after the end of each calendar semester, interim unaudited financial reports (IFR) for the Project covering that semester (Attachment 2). (ii) Audits. Each audit of the Financial Statements shall cover the period of one (1) 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 shall be furnished to the Bank not later than six (6) months after the end of such period. III. Other Important Information 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(a@worldbank.or . If you have any queries in relation to the above, please contact the Client Services and Loan Operations Department at AskLoanskWorldBank.org using the above reference. Yours sincerely, Shanker Lal Acting Country Director India Attachments 1. Interim unaudited Financial Report (IFR) 2. Form of Authorized Signatory Letter Schedule 1 Disbursement Arrangements Country India Closing Date Section 3.B.6. of Schedule 2 to Loan Borrower India (Entities: DEA and CAAA) the Loan Agreement. Number 8928-IN Name of the Project Uttarakhand Public Financial Disbursement Deadline Date Four months after the closing Management Strengthening Subsection 3.7 ** date. Project Disbursement Methods Methods Supporting Documentation Section 2 (**) Subsections 4.3 and 4.4 (**) Direct Payment No Not Applicable Reimbursement Yes Interim unaudited Financial Report (IFR) in the format provided in Attachment 2 Advance - Designated Acct. No Not Applicable Special Commitments No Not Applicable Not applicable to "M 0V,p The minimum value of applications is not applicable for this project The Authorized Signatories Letter will be sent to the following address: No. 11, Taramani Main Road Taramani, Chennai - 600 113, India Attention: Client Services and Loan Operations Department (WFACS) Note: The Withdrawal Applications and its supporting documentation will be electronically sent through the Bank's system ClientConnection. For the DLIs 1 to 7 stated in Section III.A. of Schedule 2, and Schedule 4 of the Loan Agreement, specifically for Category 2, the eligible expenditures are (i) actual expenditures incurred by the Centre for Training and Research in Financial Administration on Goods, Non-consulting services, Consultant Services, Training and Incremental Operating Costs for Part 1(a), 1(b), 1(e), 1(f), 2(b) and 3(a) of the Project, (ii) Salaries and Dearness allowance of Directorate of Audit, Audit Cell, and Directorate of Treasury of Uttarakhand and (iii) Consultant Services of the Directorate of Audit and Audit Cell, as detailed in the Project Implementation Plan. ** Sections and subsections relate to the "Disbursement Guidelines for Investment Project Financing, dated February 2017" Attachment 1 - Interim unaudited Financial Reports Uttarakhand Public Financial Management Strengthening Project IFR 1: Disbursement Summary Sheet for the period ended ...... Loan Number......... INR in millions Eligble Bank Share Category No. Category Description Components Expenditure for S Reimbursement Amount the period Reimbursement for Technical Assistance Goods, non-consulting services, consultant services, Training and Incremental Operating Costs for technical Components [1.3, 1.4, 1.7], [2.1, 80% 0-00 assistance under Part(s) 1(c), 1(d), 1(g), 2.3],[3.2], and [4] of the Project 2(a), 2(c), 2 (d), 3(b) and 4 of the Project Disbursement of DLIs DLls under Part(s) 1(a), 1(b), 1(e), 1(f), Component [1.1, 1.2, 1.5, 1.6],[2.2] Fill from S.No 6 given below 2(b) and 3(a) of the Project and [3.1] of the Project S.No. Particulars Total 1 Cumulative EEP (from IFR-3) 0.00 2 Eligible EEP [(1)*80%] 0.00 3 DLIs disbursed til previous IFR period 0.00 4 Remaining Quali6sng EEP [(3) - (2)] 0.00 Value of DLIs Achieved in the current 0.00 IFR period DLIs Achieved To be Disbursed Now (Mininum of [(4) or (5)] 7 Balance EEP carried forward [(4) - (6)] 0.00 Uttarakhand Public Financial Management IFR 2: Sources and Uses of Funds for the period Loan NumberF- INR in Millions S.No. Description Period YTD CTD A (1+2 Sources of Funds 0.00 0.00 0.00 1 Opening Balance in Bank Account - PMU (CTRFA) 0.00 0.00 0.00 2 Receipts Grant received from GoUK deposited into Bank Account of PMU Other Income - Interest earned, sale of tender forms. Others (net) B (3+4 Uses of Funds (TA and EEP) 0.00 0.00 0.00 Category 1: Technical Assistance (TA) - Goods, Non- consulting services, consultant services. Training and Component 1: Strengthening the Public Financial Functions Component 2: Strengthening Revenue Management Systems Component 3: Strenghtening PFM in Urban Local Bodies and State- Owned Enterprises Component 4: Project Management and Monitoring & Evaluation Category 2: Eligible Expenditure Program (EEP) for DLls - 4 Goods, Non-consulting services, consultant services. 0.00 0.00 0.00 Training and Incremental Operating Costs Component 1: Strengthening the Public Financial Functions Component 2: Strengthening Revenue Management Systems Component 3: Strenghtening PFM in Urban Local Bodies and State- Owned Enterprises 5 Closing Balance in Bank Account - PMU (CTRFA) 0.00 0.00 0.00 Uttarakhand Public Financial Management Strengthening Project IFR 3: Eligible Expenditure Program Loan Number...... INR in Millions S.No. Description Period YTD CTD A Category 2: Eligible Expenditure Program (EEP) for DLIs - Payments made 0.00 0.00 0.00 from PMU Bank Account (As per IFR - 2) B Category 2: Eligible Expenditure Program (EEP) for DLIs - Payments made 0.00 0.00 0.00 from GoUK Treasury_ I 2054-098-06-01 (Pay of Audit Directorate) 2 2054-098-06-03 (DA of Audit Directorate) 3 2052-091-12-01 (Pay of Audit Cell) 4 2052-091-12-03 (DA of Audit Cell) 5 2054-098-06-16 (Audit consultancy fees of Audit Directorate) 6 2052-091-12-16 (Audit Consultancy of Audit Cell) 7 2054-095-03-01 (Pay of Establishment of treasury and finance services) 8 2054-095-03-03 (DA of Establishment of treasury and finance senices) 9 2054-097-03-01 (Pay of Establishment of Treasury) 10 2054-097-03-03 (DA of Establishment of Treasury) C=A+B Category 2: Eligible Expenditure Program (EEP) for DLIs - Total 0.00 0.00 0.00 Uttarakhand Public Financial Management Strengthening Project IFR 4: Payment made under Prior Review Contract for the period... Loan Number...... INR in Million Contractor Date of Amount S.No Contract No. Description of Contract Date of NoC WBR No. paid Amount Amount paid Cslt & Date serrices Amount Cmei dui e paid YTD CTD Note: All forms must be signed by the Financial Controller, and Project Director / Deputy Project Director Attachment 2 - 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. -IN (Uttarakhand Public Financial Management Strengthening Projec) I refer to the Loan Agreement ("Agreement") between the International Bank for Reconstruction and Development (the "Bank") and [name of borrower] (the "Borrower"), dated . providing the above Loan. For the purposes of Section 2.02 of the General Conditions as defined in the Agreement, any '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, 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 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 tojointly sign Applications, if so, please indicate the actual number. Please delete this footnote in final letter that is sent to the Bank. ' 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. I 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. the Bank by electronic means. In full recognition that the Bank 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 Borrower 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]