THE WORLD BANK IBRD * IDA I WORLD BANKGROUP OFFICIAL DOCUMENTS October 8, 2018 Honorable Brenson S. Wase Minister of Finance Ministry of Finance P.O. Box D, Majuro Marshall Islands 96959 Dear Minister, Re: Original IDA Grant Number DO79-MH and Additional IDA Grant No. D377-MH (Pacific Resilience Project under the Pacific Resilience Program) Additional Instructions: Disbursement and Financial Information Letter I refer to the Financing Agreement ("Agreement") between the Republic of the Marshall Islands ("Recipient") and the International Development Association (the "Association") for the above-referenced Project. The General Conditions, as defined in the Agreement, provide that the Recipient may from time to time request withdrawals of Grant amounts from the Grant 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, and replaces the Disbursement Letter dated October 24, 2017 in respect of the Original IDA Grant No. DO 79- MH. I. Disbursement Arrangements, Withdrawal of Grant Funds, and Reporting of Uses of Grant 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.org and its secure website "Client Connection" at https://clientconnection.worldbank.org. The Disbursement Guidelines are an integral part of the DFIL, and the manner in which the provisions in the guidelines apply to the Grant 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, 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. 1818 H Street NW * Washington, DC 20433 USA (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 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 semester, interim unaudited financial reports ("IFR") for the Project covering the semester. (ii) Audits. Each audit of the Financial Statements must cover the period of one fiscal year of the Recipient. The audited Financial Statements for each such period must be furnished to the Association not later than nine (9) 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 Grant, 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.org. If you have any queries in relation to the above, please contact Chau-Ching Shen, Senior Finance Officer at cshen@worldbank.org, with copy to Joan Toledo, Finance Analyst at itoledo(&worldbank.org using the above reference. Sincerely, Mona Sur Acting Country Director Papua New Guinea & Pacific Islands East Asia and Pacific Region Page 2 of 7 Attachments 1. Form of Authorized Signatory Letter With copies: Ms. Maybelline Andon Bing Secretary Ministry of Finance P.O. Box D, Majuro Marshall Islands 96959 mavabing(&gmail.com Page 3 of 7 Schedule 1: Disbursement Provisions (1) IDA Country Republic of the Marshall Islands Section III.B.2. of Schedule 2 to the (1) Original Grant Recipient Ministry of Finance Financing Agreement. IDA No. Name of the Project Pacific Resilience Project under the Disbursement Four (4) months after the closing Grant No. D079- Pacific Resilience Program Deadline Date date. and MH Subsection 3.7 ** and and Additional ant IDA Grant No. No. G No.- MH Disbursement Methods Methods Supporting Documentation Section 2 (**) Subsections 4.3 and 4.4 (**) Direct Payment Yes Copy of records Reimbursement No N/A Advance No N/A Special Commitments No N/A The World Bank Level 19, 14 Martin Place CML Building Sydney NSW 2000, Australia Attention: Country Director The World Bank 26 Floor, One Global Place 5t Avenue cor 25' Street, Bonifacio Global City Taguig City, Philippines 1634 Attention: Loan Department Disbursements under the Original Financing and the Additional Financing will be made only through Direct Payment method. ** Sections and subsections relate to the "Disbursement Guidelines for Investment Project Financing", dated February 2017. Page 4 of 7 Attachment 1 - Form of Authorized Signatory Letter [Letterhead] Ministry of Finance [Street address] [City] [Country] [DATE] International Development Association Level 19, 14 Martin Place CML Building Sydney NSW 2000 Australia Attention: Country Director Re: Original IDA Grant Number D079-MH and Additional IDA Grant No. D377-MH (Pacific Resilience Project under the Pacific Resilience Program) I refer to the Financing Agreement ("Agreement") between the Republic of the Marshall Islands (the "Recipient") and the International Development Association (the "Association"), dated , providing the above Financing. For the purposes of Section 2.03 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 Recipient to sign applications for withdrawal under this Financing. For the purpose of delivering Applications to the Association, 2[each] of the persons whose authenticated specimen signatures appears below is authorized on behalf of the Recipient, acting f[individually] 4[jointly], to deliver Applications, and evidence in support thereof on the terms and conditions specified by the Association. I 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. 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 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 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 Association. Page 5 of 7 s[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 Association by electronic means. In full recognition that the 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 Association 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 / 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 Association. Page 6 of 7