OFFICIAL THE WORLD BYOCUMENTS IBRD* IDA I WORLDBANKGROUP April 24, 2018 Mr. Sukhbir Singh Controller of Aid Accounts and Audit (CAAA) Department of Economic Affairs, Ministry of Finance Government of India B-Wing, 5th Floor Janpath Bhawan New Delhi, India 110001 Re: India: Madhya Pradesh Rural Connectivity Project IBRD Loan No. 8833-IN and AIIB Loan No. _ Additional Instructions: Disbursement and Financial Information Letter ("DFIL") Mr. Singh, 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 April 24, 2018 and the Loan Agreement between the Asian Infrastructure Investment Bank ("The AIIB") and the Borrower for the AIIB Loan No. ("AIIB Loan"), dated . The General Conditions, as defined in the Loan Agreement, provide that the Borrower may from time to time request withdrawals of Loan Amounts from the Loan Account in accordance with the Disbursement and Financial Information Letter (DFIL), and such additional instructions as the World Bank may specify from time to time by notice to the Borrower. The General Conditions also provide that the DFIL may specify Project specific financial reporting requirements. The DFIL also serves as instructions of withdrawal of the funds corresponding to the AIIB Loan under a co-financing procedure. I. Disbursement Arrangements, Withdrawal and Reporting of Loan Funds The Disbursement Guidelines for Investment Project Financing, dated February 2017, ("Disbursement Guidelines") are available in the World Bank's public website at https://www.worldbank.org and its secure web-based portal (https://clientconnection.worldbank.org) "Client Connection". The Disbursement Guidelines are an integral part of the DFIL, and the manner in which the provisions in the Disbursement Guidelines apply to both loans is specified below. CAAA will submit, through the system Client Connection, back-to-back applications to ensure parallel processing (timely co-financing). (i) Disbursement Arrangements Provisions (Schedule 1). The table in Schedule I sets out the disbursement methods which may be used by the Borrower, information on registration of authorized signatures, processing of withdrawal applications (including minimum value of applications and processing of advances, if applicable), instructions on supporting documentation, and frequency of reporting on the Designated Account (if applicable). (ii) Electronic Delivery. Refer to section 10.01 (c) of the General Conditions. The World Bank and the AIIB may permit the Borrower to electronically deliver applications (with supporting documents) through the World Bank's web-based portal "Client Connection". This option may I The AlIB Loan No. will be provided by separate notice after the signature of the AllB Loan Agreement. THE WORLD BANK IBRD * IDA I WORLD BANKGROUP be effected if the officials designated in writing by the Borrower 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 Borrower confirms that it is authorizing such persons to accept Secure Identification Credentials (SIDC) and to deliver the Applications and supporting documents to the World Bank by electronic means. The Borrower may continue to exercise the option of preparing and delivering Applications in paper form. The World Bank reserves the right and may, in its sole discretion, temporarily or permanently disallow the electronic delivery of Applications by the Borrower. 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 World 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 Borrower must prepare and furnish to the World Bank not later than forty-five (45) days after the end of each calendar quarter, interim unaudited financial reports ("IFR") for the Project covering the financial information of the corresponding quarter. (ii) Audits. Each audit of the Financial Statements must cover the period of one 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 must be furnished to the World Bank 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 World Bank's public website (http://www.worldbank.org/) and in "Client Connection". The World 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 World Bank by email at clientconnectiongworldbank.org. If you have any queries in relation to the above, please contact Victor Ordonez, Senior Finance Officer at vcondegworldbank.org, with copy to Radha Raju, Finance Analyst at rraju(?,worldbank.org, using the above reference. Yours since 1I Hisha do Acting Country Director India THE WORLD BANK IBRD* IDA I WORLDBANKGROUP Attachments 1. Form of Authorized Signatory Letter 2. Interim Unaudited Financial Report (IFR) 3. Ratio for Co-financing Schedule 1 Disbursement Provisions Country India Closing Date Section II.B.2. of Schedule 2 to Loan -IN_Borrower India (DEA/CAAA) the [Loan] Agreement. * Number Name of the Project Madhya Pradesh Rural Disbursement Deadline Date Four months after the closing Connectivity Project Subsection 3.7 date. 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 of the DFIL, for regular expenditures and retroactive financing. Advance - Designated Acct. No Not Applicable Special Commitments No Not Applicable The minimum value of applications for Reimbursement is not applicable for this operation. The Authorized Signatories Letter, Withdrawal Applications and its documentation will be sent to the following address: No. 11, Taramani Main Road Taramani, Chennai - 600 113, India Attention: Ms. Sangeetha Ravikumar, Sr. Finance Officer in the Loan Operations Department. Co-financing/Financing Percentage. Financing ratio between the AllB Loan and the World Bank Loan for the Project will be in the, form of joint financing at 28%:42% respectively, plus Borrower's funding at 30%. Attachment 3 summarizes the co-financing AllB:World Bank by componenlt. The World Bank will provide disbursement services for AIIB, including review and approval of Application for Withdrawal. The World Bank will provide such services using its own policies and procedures, including the instructions contained or referenced to in the DFIL. The Borrower will simultaneously submit two Applications for Withdrawal, one covering the financing corresponding to the AllB Loan and one covering the financing corresponding IBRD Loan. The World Bank will process the deposits/transfers of funds corresponding to both loans in coordination, and in line with the arrangements agreed, with the AllB. * The Borrower must also consider the Closing Date applicable to the Al/B Loan No. - provided by the AllB. ** Sections and subsections relate to the "Disbursement Guidelines for Investment Project Financing, dated February 2017" Attachment I - 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, India Re: Loan No. 8833-IN (India: Madhya Pradesh Rural Connectivity Project) I refer to the Loan Agreement ("Agreement") between the International Bank for Reconstruction and Development (the "Bank") and India (the "Borrower"), dated providing the above Loan. For the purposes of Section 2.02 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 Borrower to sign applications for withdrawal [and applications for a special commitment] under this Loan. For the purpose of delivering Applications to the Bank, including by electronic means, 3[each] of the persons whose authenticated specimen signatures appears below is authorized on behalf of the Borrower, acting 4[individually] 5[jointly], to deliver Applications, and evidence in support thereof on the terms and conditions specified by the Bank. This Authorization replaces and supersedes any Authorization currently in the Bank records with respect to this Agreement. 2 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. 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. 4 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. 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. [Name], [position] Specimen Signature: [Name], [position] Specimen Signature: [Name], [position] Specimen Signature: Yours truly, / signed / [Position] Attachment 2 - Interim Unaudited Financial Statements (IFR) IUFR-1 Ref No. World Bank Funded Madhya Pradesh Rural Connectivity project (Loan No. _ IN) Statement of Expenditure by Components IFR for the period / /20 to _ /20 (Amount in Rs. lakhs) Particulam Current YTD Reimbursable from World Bank Rehnbursable from AlIB Pediod Current Preod YTD Current Period YTD (1) Expenditure by Component (Reimburseable) Component A. Road Upgrading, Construction and Maintenance Component B. Institutional Developoment Component C. Road Safety Management Capacity Development Component D. Design, Project Management Support (1OC) Total expenditure (2) Advance (Reimburseable) Total (1+2) (3) State Expenses ( Non Reimburseable) Total IUFR-2 Ref No World Bank Funded Madhya Pradesh Rural Connectivity project (Loan No. _ _ _ IN) Statement of expenditure by ComponentslSub-componentwise IUFR for the period J_ J20_ to J J20 (Amount in Rs. lakhs SExndi by Comonent Relmburseabe) A Road Upgrading, Construction and Maintenance A 1 Surface Sealing of Gravel Roads A,2 Provision of Alternate Connectivity B. Institutional Development B 1 Rural Roads Asset Management System B 2 Strengthening Design, Research and Quality Assurance Capacity C. Road Safety Management Capacity Development C 1 Development of Road Accident Database Management System C 2 Pilot Comprehensive Road Safety Progam D. Design, Project Management Support (1OC) Total expenditure (2) Advance (Reimburseable) Total (142) (3) State Expenses (Non Reimburseable_ Total IUFR-3 World Bank Funded Madhya Pradesh Rural Connectivity project (Loan No. _ _ _ IN) Ref No List Of Claims submitted to World Bank IUFR for the period _I 120 to I 120 (Amount in Rs lakhs) St No. IUFR No. Period for which RFIWF No. Value date Expenditure reported Reimbursable from World Bank Reimbursable from ADS Reimbursement IUFR submitte received 1 Claim 1 2 Claim 2 3 Claim 3 4 Claim 4 5 Claim 5 6 Claim 6 7 Claim 7 8 Claim 8 9 Claim 9 10 Claim 10 Total - KJFR.4 Ref No Wodd BankFndd MadU y. Pr.d.h Rual Connecti-ey proj (Lon No _._IN) Centr acti eIenbg Rep.1t IUFR for te p.od _ _ _ to I_ _ 20 FbanoWlPtoguesotRsbi"a S o, " no. a mner revAmf ouilniconka wno. otercea be o Acbo ontof na C aAou s. Amt Coumt Period EpemV*YTD E*OnaiweCTo %of propess Attachment 3 - Ratio for Co-financing Disbursements will follow the ratio AllB:1BRD at 28%:42% respectively, as well as the structure of the categories IBRD Counterpart Project Components ($m) Financing AllB ($m) Funding ($m) ($m) A. Road Upgrading, Construction and 4500 203.00 135.00 147.00 Maintenance A.1 Surface Sealing of Gravel Roads 440.00 184.00 123.00 133.00 A.2 Provision of Alternate Connectivity 45.00 19.00 12.00 14.00 B. institutional Development 3.00 1.10 0.90 1.00 B.1 Rural Roads Asset Management System 2.00 0.71 0.62 0.67 B.2 Strengthening Design, Research and Quality Asurnc apciy 1.00 0.39 0.28 0.33 Assurance Capacity C. Road Safety Management Capacity 10.00 4.10 2.90 3.00 Development C.1 Development of Road Accident Database 3.00 1.50 1.00 0.50 Management System C.2 Pilot Comprehensive Road Safety Program 7.00 2.60 1.90 2.50 D. Design and Project Management Support 3.12 1.27 0.85 1.00 Front End Fees -0.25% 0.88 0.53 0.35 Total Costs 502.00 210.00 140.00 152.00