THE WORLD BANK IBRD * IDA I WORLD BANKOROUP ,2018 Honourable Ken Ofori-Atta Minister for Finance O FFICIAL Ministry of Finance P.O. Box MB40 DOCUMENTS Accra O U ET Republic of Ghana Honourable Minister: Re: IDA Credit 6303-GH (Ghana Energy Sector Transformation Initiative Project) Additional Instructions: Disbursement and Financial Information Letter I refer to the Financing Agreement between Republic of Ghana (the "Recipient") and the International Development Association (the "Association") for the above-referenced Project. The General Conditions, as defined in the Financing Agreement, provide that the Recipient may from time to time request withdrawals of Credit amounts from the Credit Account in accordance with the Disbursement and Financial Information Letter, and such additional instructions as the Association may specify from time to time by notice to the Recipient. The General Conditions also provide that the Disbursement and Financial Information Letter may set out Project specific financial reporting requirements. This letter constitutes such Disbursement and Financial Information Letter ("DFIL"), and may be revised from time to time. I. Disbursement Arrangements, Withdrawal of Credit Funds, and Reporting of Uses of Credit' Funds The Disbursement Guidelines for Investment Project Financing, dated February 2017, ("Disbursement Guidelines") are available in the Association's public website at https://www.worldbank.or2 and its secure website "Client Connection" at https://clientconnection.worldbank.or2. The Disbursement Guidelines are an integral part of the DFlL, and the manner in which the provisions in the guidelines apply to the Credit is specified below. (i) Disbursement Arrangements * General Provisions (Schedule 1). The table in Schedule 1 sets out the disbursement methods which may be used by the Recipient, and conditions, information on registration of authorized signatures, processing of withdrawal applications (including minimum value of applications and processing of advances), instructions on supporting documentation, and frequency of reporting on the Designated Account. (ii) Electronic Delivery. Section 11.01 (c) of the General Conditions. The Association may permit the Recipient to electronically deliver applications (with supporting documents) through the Association's web-based portal (https://clientconnection.worldbank.org) "Client Connection". This option may be effected if the officials designated in writing by the Recipient 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 Recipient confirms that it is authorizing such persons to accept Secure Identification Credentials (SIDC) 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 -2- Applications in paper form. The Association 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 Association'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 must prepare and furnish to the Association not later than forty- five (45) days after the end of each calendar [quarter/semester], interim unaudited financial reports ("IFR") for the Project covering the 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 for each such period must be furnished to the Association not later than six (6) 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 Association's website (http://www.worldbank.org/) 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 Credit, and retrieve related policy, financial, and procurement information. For more information about the website and registration arrangements, please contact the Association by email at clientconnection@worldbank.ora. If you have any queries in relation to the above, please contact Maiada Kassem, Finance Officer at wfaldafr@worldbank.org, with copy to, Finance Analyst at schepkorir@worldbank.org using the above reference. Yours sincerely, Henry Kerali Country Director for Ghana Africa Region Attachments 1. Form of Authorized Signatory Letter 2. Form of Interim Financial Reports (IFR) With copies: Honourable Minister Ministry of Energy P. 0. Box SD 40, Stadium, Accra -3- Schedule 1: Disbursement Provisions Country Republic of Ghana Closing Date Section IV.B.2. of Schedule 2 to the Credit Recipient Republic of Ghana Financing Agreement. Number Name of the Project Ghana Energy Sector Disbursement Four months after the closing date. Transformation Initiative Project Deadline Date Subsection 3.7 ** Disbursement Methods Methods Supporting Documentation Section 2 (**) Subsections 4.3 and 4.4 (**) Direct Payment Yes Copy of records Reimbursement Yes Statement of Interim Financial Report (IFR) in the format provided in Attachment 2 of the DFIL Designated Account Yes Statement of Interim Financial Report (IFR) in the format provided in Attachment 2 of the DFIL Special Commitments Yes Copy of Letter of Credit Type Segregated Ceiling Variable Financial Institution - Bank of Ghana (Central Bank) C USD Name Frequency of Reporting Same as IFRs , Quarterly. Amount Forecast of two quarters as per IFR Subsection 6.3 (**) cleared by TTL. The minimum value of applications for Reimbursement, Direct Payment and Special Commitment is USD 100,000 equivalent. The World Bank Delta Center, 13d' Floor, Upper Hill, Menengai Road, Nairobi, Kenya Attention: Loan Operations Not applicable. Not applicable. ** Sections and subsections relate to the "Disbursement Guidelines for Investment Project Financing", dated February 2017. -4- Attachment 1 - Form of Authorized Signatory Letter [Letterhead] Ministry of Finance [Street address] [City] [Country] [DATE] International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Re: IDA Credit 6303-GH (Ghana Energy Sector Transformation Initiative Project) Attention: Country Director I refer to the [Grant] [Credit] Agreement ("Agreement") between the International Development Association (the "Association")[, acting as implementing of the ]1 and [name of recipient] (the "Recipient"), dated , providing the above [Grant] [Credit]. For the purposes of Section 2.03 of the General Conditions as defined in the Agreement, any 2[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 [Grant] [Credit]. For the purpose of delivering Applications to the Association, including by electronic means, 3[each] of the persons whose authenticated specimen signatures appears below is authorized on behalf of the Recipient, acting 4[individually] 5[ointly], to deliver Applications, and evidence in support thereof on the terms and conditions specified by the Association. Instruction to the Recipient: add text in line with the Grant Agreement if applicable; if not applicable delete it. Please delete this footnote in final letter that is sent to the Associations 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 Association. 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 Association. ' 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 Association. ' 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 Association. -5- 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 / -6- Ministry of Energy PROJECT CORDINATION UNIT (PCU) Ghana: Energy Sector Transformation Initiatiative Project Credit No. XXXXX INTERIM FINANCIAL REPORT (IFR) FOR THE QUARTER ENDED - XXXXX Prepared: Project A ccountant ............................ ......... .......... Reviewed By: Head of Accounts............................................... .. -7- PROJECT IMPLEMENTING ENTITY: Ministry of Energy PROJECT NAME: Ghana: Energy Sector Transformation Initiatiative Project IBRD CREDIT/GRANT NO. IDA......... REPORT: INTERIM FINANCIAL REPORT (IFR) THIS SCHEDULE: STATEMENT OF SOURCES AND USES OF FUNDS - COMPONEN PERIOD OF REPORT: QUARTER ENDING -XXXXX REPORTING CURRENCY: US DOLLARS Current Yearto Cumulative Referece to Quarter Date to Date Detail Opening cash Balances IDA Designated Account A -USD Project Bank Accounts -Local Currency Interest Account Cash-in hand -_- TOTAL OPENING BALANCES A A Add: Funds Received during the quarter/Period IDA Designated Account A -USD Project Bank Accounts -Local Currency Others - Interest Earned - USDAcc TOTAL FUNDS RECEIVED DURING THE PERIOD B B TOTAL FUNDS AVAILABLE C =(A +B ) C=(A+B)MO DA - Less: Uses of funds, by Project Components Component ACCOUNT Component 1 -Management of power sector financial 1 sector flows Goods 1 Works 1 Consultancy & Non Consultancy Services 1 Sub Total For Component 1 Component 2 -Sector Planning and Coordination 2 Goods 2 Works 2 Consultancy & Non Consultancy Services 2 Sub Total For Component 2 Component 3 -Energy Access 3 Goods 3 Works 3 Consultancy & Non Consultancy Services 3 Sub Total For Component 3 Component 4 -Natural Gas 4 Goods 4 Works 4 Consultancy & Non Consultancy Services 4 Sub Total For Component 4 Component s - Project Management, M&E etc 5 Sub Total For Component 4 Total Project Expenditure for the Period D D Net Cash Available E=C-D E=C-D Closing bank balances IDA Designated Account A -USD Project Bank Accounts -Local Currency Interest Account Total Closing ank Balances ME HUR Difference - to be explained h=f-g h=f-g Av Exch Rate For the Period -9- PROJECT IMPLEMENTING ENTITY: Ministry of Energy PROJECT NAME: I Ghana: Energy Sector Transformation Initialiative Project IBRD CREDIT/GRANT NO. IDAn, -*7 REPORT: lNrERIM FINANCIAL REPORT (IFIR) THIS SCHEDULE: STATEMENT OF SOURCES AND USES OF FUNDS - CATEGORY PERIOD OF REPORT: QUARTER ENDING -XXXXXX REPORTING CURRENCY: US DOLLARS Current Yearto Cumulative Referece to Quarter Date to Date Detail Opening cash Balances IDA Designated Account A -USD Project Bank Accounts -Local Currency Interest Account Cash-in hand TOTAL OPENING BALANCES A A Add: Funds Received during the quarter/Period IDA Designated Account A -USD Project Bank Accounts -Local Currency Others - Interest Earned - USD Acc TOTAL FUNDS RECEIVED DURING THE PERIODBB TOTAL FUNDS AVAILABLE C--(A.8 I C--(A+B) Less: Uses of funds, by Project Category Category (1) Goods, Works, Consultants' services, Non Consultancy Service, Operating Costs, and Training and Workshops under Part X ofthe 1 Project Total Project Expenditure for the Period - By Categori D D Net Cash Available tEC-D E=C-D Closing bank balances IDA Designated Account A -USD Project Bank Accounts -Local Currency Interest Account Total Closing Bank Balances g Difference-ttobenexplained h- h-f-g Av Exch Rate For the Period -10- PROJECT IMPLEMENTING ENTITY: Ministry of Energy PROJECT NAME: Ghana: Energy Sector Transformation Initiabatie Project IBRD CREDIT/GRANT NO. JI)A.......,. REPORT: INIERIM FINANCIAL REPORT (IFR) THIS SCHEDULE: Activity and Variance Report - By Components/Sub Component (AWP &B) PERIOD OF REPORT: QUARTER ENDING -XXXXX REPORTING CURRENCY: US DOLLARS CURRENT QUARTER YEAR TO DATE CUMJIULATIVE TO DATE Uses of Funds By Project Components/AWP Budget Actual Variance Budget Actual Variance Budget Actual Variance Per PAD US usS $ us $ us $ US$ us$ uss us$ US$ US $'m Components Description Component 1 -Management of power sector financial sector flows 2 Component 2 -Sector Planning and Coordination 3 Component 3 -Energy Access 4 Component 4-Natural Gas 5 Component 5 - Project Management, M&E etc TOTAL- -11- PROJECT IMPLEMENTING ENTITY: Ministry of Energy PROJECT NAME: Ghana: Energy Sector Transformation Initiatiative Project IBRD CREDIT/GRANT NO. IDA. REPORT: INTERIM FINANCIAL REPORT (IFR) THIS SCHEDULE: Designated Account Reconciliation Statement PERIOD OF REPORT: QUARTER ENDING -XXXXX REPORTING CURRENCY: US DOLLARS 1. Cumulative advances to the end of current reporting period 2. Cumulative expenditures to the end of last reporting period 3. Outstanding advance to be accounted for (Line 1 minus Line 2) 4. Opening DA balance at beginning of reporting period, as of 5. Add/subtract: cumulative adjustments, if any 6. Add: Advances from World Bank during current reporting period 7. Add Line 5 and Line 6 8. Outstanding advances to be accounted for (Add Line 4 and Line 7) 9. Closing DA balance at end of current reporting period, as of 10. Add/subtract: cumulative adjustments, if any 11. Add/subtract: Expenditures for the current reporting period 12. Add Line 10 and Line 11 13. Add Line 9 and Line 12 14. Difference Iif any (Line 8 minus Line 13) 15A. Total forecast amount to be paid by World Bank 15B. WA # xxx sent but not yet received 15C. Total adjusted forecast amount to be paid by World Bank (Line 15A minus Line 15B) 16. Less: Closing DA balance after adjusments 17. Adjustments (if any) 18. Add Line 16 and Line 17 19. Cash requirement/(Or not) from World bank for next two reporting periods (Line 15C minus Line 18) -12- PROJECT IMPLEMENTING ENTITY:of PROJECT NAME: Gh"an: Energy Sector Transformation Initababve Project IBRD CREDIT/GRANT NO. IDA ......... REPORT: INTERIM FINANCIAL REPORT (IFR) THIS SCHEDULE: LIST CONTRACTS SUBJECT TO PRIOR REVIEW PERIOD OF REPORT: QUARTER ENDING -XXXXX REPORTING CURRENCY: US DOLLARS REPORTING CURRENCY: UNITED STATES DOLLAR (USD$) DATE OF WB NON- AMOUNT PAID OUTSTAND DATE OF CURRENCY OF CONTRACT OBJECTION TO TO SUPPLIER ING CONTRACT NUMBER SUPPLIER CONTRACT CONTRACT AMOUNT CONTRACT DURING PERIOD BALANCE