OFFICIAL The World Bank DOCUMENTS (202) 473-1000 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Washington, D.C. 20433 Cable Address: INTBAFRAD INTERNATIONAL DEVELOPMENT ASSOCIATION U.S.A. Cable Address: INDEVAS March 29, 2017 Mr. Adylbek Kasymaliyev Minister of Finance Ministry of Finance 58, Erkindik Boulevard Bishkek 720040 Kyrgyz Republic Dear Mr. Kasymaliev, Re: Grant No. TF0A4647 (ECAPDEV Project Preparation Grant for the proposed Third Phase of the Central Asia Regional Links Program - CARs-3) Additional Instructions: Disbursement I refer to the Letter Agreement ("Agreement") between Kyrgyz Republic (the "Recipient") and the International Development Association ("World Bank"), acting as administrator of grant funds provided by various donors under the Multi-Donor Programmatic Trust Fund for Europe and Central Asia Region Capacity Development (ECAPDEV), for the above-referenced project, dated March 29, 2017. The Agreement provides that the World Bank may issue additional instructions regarding the withdrawal of the proceeds of Grant TF0A4647 ("Grant"). This letter ("Disbursement Letter"), as revised from time to time, constitutes the additional instructions. The attached World Bank Disbursement Guidelines for Investment Project Financing, dated February 2017, ("Disbursement Guidelines") (Attachment 1), are an integral part of the Disbursement Letter. The manner in which the provisions in the Disbursement Guidelines apply to the Grant is specified below. Sections and subsections in parentheses below refer to the relevant sections and subsections in the Disbursement Guidelines and, unless otherwise defined in this letter, the capitalized terms used have the meanings ascribed to them in the Disbursement Guidelines. I. Disbursement Arrangements (i) Disbursement Methods (section 2). The following Disbursement Methods may be used under the Grant: * Reimbursement * Advance * Direct Payment (ii) Disbursement Deadline Date (subsection 3.7). The Disbursement Deadline Date is 4 months after the Closing Date specified in the Agreement. Any changes to this date will be notified by the World Bank. (iii) Disbursement Conditions (subsection 3.8). Please refer to the Disbursement Condition(s) in the Agreement. II. Withdrawal of Grant Proceeds (i) AuthorizedSignatures (subsection 3.1). A letter in the Form attached (Attachment 2) should be furnished to the World Bank at the address indicated below providing the name(s) and specimen signature(s) of the official(s) authorized to sign Applications: The World Bank 1818 H Street, N.W. Washington, D.C. 20433 United States of America Attention: Lilia Burunciuc, Regional Country Director, Central Asia (ii) Applications (subsections 3.2 - 3.3). Please provide completed and signed applications for withdrawal, together with supporting documents, to the address indicated below: The World Bank Radnicka cesta 80, 9th floor Zagreb, HR - 10 000 Croatia Attention: Loan Department (iii) Electronic Delivery (subsection 3.4) The World Bank may permit the Recipient to electronically deliver to the World Bank Applications (with supporting documents) through the World Bank's Client Connection, web-based portal. The option to deliver Applications to the World Bank by electronic means may be effected if: (a) the Recipient has designated in writing, pursuant to the terms of subparagraph (i) of this Section, its officials who are authorized to sign and deliver Applications and to receive secure identification credentials ("SIDC") from the World 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. If the World Bank agrees, the World Bank will provide the Recipient with SIDC for the designated officials. Following which, the designated officials may deliver Applications electronically by completing Form 2380, which is accessible through Client Connection (https://clientconnection.worldbank.org). The Recipient 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 Recipient. (iv) Terms and Conditions of Use of SIDC to Process Applications. 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 ("Terms and Conditions of Use of SIDC") provided in Attachment 3; and (b) to cause such official to abide by those terms and conditions. (v) Minimum Value of Applications (subsection 3.5). The Minimum Value of Applications for Direct Payments and Reimbursements is US$ 20,000. (vi) Advances (sections 5 and 6). * Type ofDesignated Account (subsection 5.3): Segregated * Currency ofDesignatedAccount (subsection 5.4): United States Dollars (US$) * Financial Institution at which the Designated Account Will Be Opened (subsection 5.5): a commercial bank/financial institution acceptable to the World Bank. 2 * Ceiling (subsection 6.1): US$ 80,000 III. Reporting on Use of Grant Proceeds (i) Supporting Documentation (section 4). Supporting documentation should be provided with each application for withdrawal as set out below: * For requests for Reimbursement and for reporting eligible expenditures paid from the Designated Account: o Statement of Expenditure in the form attached (Attachment 4) for all expenditures / contracts; and o A designated account reconciliation statement (Attachment 5) and related bank statements. * For requests for Direct Payment: records evidencing eligible expenditures, e.g., copies of receipts, supplier invoices. (ii) Frequency of Reporting Eligible Expenditures Paid from the Designated Account (subsection 6.3): Quarterly, or more frequently if needed. IV. Other Important Information For additional information on disbursement arrangements, please refer to the Disbursement Handbook available on the World Bank's public website at https://www.worldbank.org and its secure website "Client Connection" at https://clientconnection.worldbank.org. Print copies are available upon request. If you have not already done so, the World Bank recommends that you register as a user of the Client Connection website (https://clientconnection.worldbank.org). From this website you will be able to download Applications, monitor the near real-time status of the Grant, and retrieve related policy, financial, and procurement information. All Recipient officials authorized to sign and deliver Applications by electronic means are required to register with Client Connection before electronic delivery can be effected. For more information about the website and registration arrangements, please contact the World Bank by email at . If you have any queries in relation to the above, please contact Jasna Mestnik, Finance Officer at jmestnik@worldbank.org, using the above reference. Yours sincerely, Lilia Burunciuc Regional Director Central Asia 3 Attachments: 1. World Bank Disbursement Guidelines for Investment Project Financing, dated February 2017 2. Form for Authorized Signatures 3. Terms and Conditions of Use ofSecure Identification Credentials in connection with Use ofElectronic Means to Process Applications and Supporting Documentation, dated March 1, 2013 4. Form of "Statement of Expenditure" 5. Form of Designated Account Reconciliation Statement Prepared by: Jasna Mestnik, Finance Officer - WFALN Cleared with and cc: Ruxandra Costache, Country Lawyer - LEGLE Cordula Rastogi, Task Team Leader - GTCTC Cc with copies: Ministry of Transport and Roads Investment Project Implementation Group, Room 612 6/F 42 Isanova Steet, Kyrgyz Republic, 720017 Tel: (996-312) 900-970, 900-893: Fax: (996-312) 314-378 bishkekoshroadginfotel.kg 4 Attachment 1 Disbursement Guidelines for Investment Project Financing February 2017 WORLD BANK GROUP 5 CONTENTS PAGE L Purpose 1 2. Disbursement Methods 1 I Withdrawal of Funds from Financing Account 2 4- Supporting Documentation Requirements 3 5. Designated Accounts 4 6. Tens and Conditions Apphcable to Advances 6 7. Ineligible Expenditures 7 8. Refunds 8 6 1. Purpose 1.1 The pupose of the Disbursement Guidelines for Investment Project Financing (the guidelines) is to set out the World Bank's procedures and requirements for disbursement of funds in projects.' Specifically, the guidelines set out (a) the different arangements used by the World Bank to disburse funds from the Financing Account2, (b) the requirements for withdrawal from the Financing Account, (c) the types of supportang documentation that the bo ower may be required to provide to demonstrate the use of funds of the Financing Account for eligible expenditures, (d) the criteria for establishing Designated Accounts3, (e) the terms and conditions applicable to advances, (f) the types of disbursement-related actions that the World Bank may take if it determnes that funds of the Financing Account are not needed or have been used for ineligible pmposes, and (g) the disbursement consequence of refunds. 2. Disbursement Methods 2.1 The World Bank establishes disbrsement arrangements for a project in consultation with the borrower, taking into consideration, among other things, an assessmEnt of the borrower's financial management and procurement arrangements, the cash flow needs of the project, and its disbursement experience with the borrower. Those arrangements are stated in the Financing Agreement4 and additional information is provided in the Disbursement Letter-' 2.2 The World Bank disburses funds from the Financing Account established for each loan, to or an the order of the borrower, using one or more of the following disbursement methods, as determined by the World Bank. In des docmeant the World Bak mludes the Intemational Bank for Reaoamstuion and De%elopmeDI (IBRD) and the hAmaional Develapmnut Association (IDA), wether actg an its own accomt or in the capacity as adn tiator of inst funds fiudd by dnors Fiamcmg or Bamk loaw inoes any lan, credi grant made by the World Bank fion its own esources, from trust finds funded by oler donors and administered by the World Bank, or from a combmuationofdese. Bormm means a barriomw or Eipemt ofa Ban loan fir a pr9ect and any othr eantity immoaied in the implammaabtnoffthe pqeC f-aned by dm Bank loan These Midlmes apply to all Bank loans for an Invstment Picd Financing. They do not apply tD PRogam-Fr-Results Finanag and Devlopenmt Policy Financing or for rnts made by the Wodd Bank from bmst funds funded by oder donors and adimued by the World Bank, vhn, e mceptionally, the terms ofthe aeewamt Awith the donorprside fir differenqmzrenwts . The Fimancing Account irms to the accout oI d by die World Bank in is accouing system in the name of e bonmwer to which he anmnat of the LanCigis credited A Desgwated Accusew is a bank accaint into which the World Bank may deposk amouzts wihdram framnte Fmancing Account to pay fw ehgible expeoddes as they am ncuRed. le F*mcingASrewu is the agreement between the World Bank and the Bafranw praing fir the Bank loan The Disbuenat Letter contams additional iauction descrmiing the disbusement anagemats for withdirawg proceeds fram the Financi Accouni =nder a particular investment project 1 7 (a) Reinbunrsenent The Wodd Bank may reimburse the borrower for expenditures eligible for financing pursuant to the Financing Agreement (eligible expenditures) that the borrower has prefinanced from its own resources- (b) Adtvnce The World Bank may advance funds from the Financing Account into a Designated Account of the borrower to finance eligible expenditures as they are incurred and for which supporting documents wil be provided at a later date (see section 5, Designated Accounts). (c) Direct Pawent The World Bank may make payments, at the borrower's request, directly to a third party (for example, supplier, contractor, or consultant) for eligible expenditures. (d) Special Comnitment The World Bank may pay amounts to a third party for eligible expenditures under special commitments entered into, in writing, at the borrower's request and on tems and conditions agreed betwen the World Bank and the borrower. 3. Withdrawal of Funds from the Financing Account 3.1 Anthoried Signainrrs Before fiunds from the Financing Account may be widx1rawn or comnmitted, the authorized representative of the borrower (as designated in the Financing Agreement) must fumish to the Wodd Bank, electronically through the Client Connection website (http/clientconnection-workdbankar) or through an authorized signatory designation letter, the name(s) of the official(s) authorized (a) to sign and submit applications for withdawal and applications for a special commitment (collectively, Applications), and (b) to receive Secure Identification Credentials (SIDC) from the Wodd Bank The borower must notify the World Bank of any changes in signature aumrity either electronically in Client Connection or through an updated authorized signatory designation letter. 3.2 Terms and Conditions of Use of Secnre Identification Credentials (SIDC) to Process Applications. By designating officials to use SIDC and by choosing to submit the applications electronically, the borrower confums its agreement to abide by the terms and conditions of use of SIDC 3.3 Applications. Applications must be provided to the World Bank in such form as is required to access funds from the Financig Account and must include such information as the Wodd Bank may reasonably request. 3.4 Applications and necessary supporting documents (see section 4 Supporting Documentation Requirements) should be submitted to the Wodd Bank electronically, in a ' Tems and candtais of use of SIDC re proaded m the Durement Iter. 8 manmer and on terms and conditions specified by the World Bank, through the Client Connection website at bttpJ/clientconaectionLwldbankorg. The World Bank may, at its discretion, temporarily or permanently, disallow the electronic submission of applications by the borrower. The World Bank may permit the borroww to complete and submit applications manually m paper form. Paper applications forms can be found in the Client Connection website at htp/clienconnection.worldbank.ary or maybe obtained from the World Bank upon request. 35 Minimum I-ale ofAppfcadons. The World Bank establishes a minimum value for applications for reimbursement direct payment, and special commitment- The World Bank reserves the right not to accept applications that are below such minimmn value- 3.6 Loan Disbursing Period. The World Bank processes Applications only after the Fiancing Agreement has been declared effective in accordance with the terms of the Financing Agreement The expenditures for which the Applications are made must be: (a) Paid for on or after the date of the Financing Agreement, or alternatively, in the case of projects that permit retroactive financing, on or after the earlier date specified in the Financing Agreement for that purpose; and (b) Incurred on or before the closing date specified or refmned to in the Financing Agreement (the Closing Date), except as otherwise specifically agreed with the World Bank 3.7 The loan disbursing period ends on the final date established by the World Bank f1f receipt by the World Bank of applications for withdrawal and supporting documentation (the Disbursement Deadline Date). The Disbursement Deadline Date may be the same as the Closing Date, or up to four months after the Closing Date, To support orderly project completion and closure of the Financing Account, the World Bank does not accept applications for withdrawal or supporting documentation received after the Disbursement Deadline Date. The borrower must promptly inform the World Bank of any expected implementation delays or exceptional administrative issues before those dates. The World Bank notifies the borrower of any exception that the World Bank may make to Ihe Disbursement Deadline Date. 3.8 Disbursement Conditions. If the Financing Agreement contains a disbursement condition for a specific expenditure category, the World Bank will disburse funds from the Financing Account for that category only after the disbursement condition has been fulfilled and the World Bank has notified the borrower to that effect. 4. Supporting Documentation Requirements 4.1 The borrower provides supporting documentation to the World Bank to show that funds from the Financing Account have been or are being used to finance eligible expenditures. 3 4.2 For special commitments, the commercial bank provides its confimiation directly to the World Bank that conditions for the release of payments committed for withdrawal have been met. 4.3 1)pes of Supporting Documffentaion. The World Bank requires either copies of the original documents evidencing eligible expenditures (Records) or summary reports of expenditure (Summary Reports) in such form and substance as the World Bank may specify. Records include such documents as invoices and receipts. A Summary Report may be either (a) the interim unaudited financial report required under the Financing Agreement (Interim Financial Report) or (b) a statement of expenditure arizing eligible expenditures paid during a stated period (Statement of Expenditure). In all cases, the borrower is responsible for retaming the original documents evidencing eligible expenditures and making them available for audit or inspection. 4.4 The World Bank detenmes the types of supporting documentation that the borrower must provide, taking into consideration the disbursement method used. The supporting documentation may be the following: (a) For applicadons for Reimbursement (i) Interim Financial Reports, (ii) Statements of Expenditure, or (iii) Records (b) For reporng on the use of Adiwnces: (i) Interim Financial Reports, (ii) Statements of Expenditure, or (iii) Records (c) For applications for Direct Payments: (i) Records such as copies of supplier invoices; (ii) a bank guarantee for advance or retention payment (d) For 4pplicadons for Spedal Commitment Copy of the Letter of Credit (with valid expiry date) that the commercial bank, known as the opening bank, has issued. For payment, a SWIFT (Society for Worldwide Interbank Telecommunication) message must be sent by the commercial bank, and (e) Any other supporting documentation that the World Bank may request by notice to the borrower or as specified in the Disbursement Ietter 4.5 Failure to ProsideAudited Financial Statements. If the borrower fails to provide any of the audited financial statements required in accordance with, and within the period of time specified in, the Financing Agreement, the World Bank may at its discretion, decide not to accept applications for withdrawal supported by Summary Reports, even if such reports are accompanied by Records. 5. Designated Accounts 4 10 5-1 The borrower may open one or more designated accounts into which the World Bank may, at the borrower's request, deposit amounts withdrawn from the Financing Account for the purpose of paying for eligible expenditures as they are incurred. Before the World Bank authorizes establishment of a Designated Account, the borrower must have adequate administrative capability, intemal controls, and accounting and auditing procedures to ensure effective use of the Designated Account 5.2 The World Bank may decide not to permit the use of Designated Accounts in new projects if the borrower has failed to refund undocumented advances in the Designated Account of any other loan to, or guaranteed by the borrower within two months after the Disbursement Deadline Date for that loan- 5-3 I:pe ofDesignated.Account A Designated Account may be established in one of two ways - as a segregated account or pooled account as appropriate for the project concerned, and as determined and notified by the World Bant (a) Segregated Accoint An account of the borrower into which only proceeds of the Financing Account maybe deposited; (b) Pooled Account An account of the borrower into which the funds from the Financing Account and funds of other financing for the project (such as borrower resources or financing by other development partners) may be deposited- 5.4 Currency of the Designated Account. Designated Accounts must be in a currency acceptable to the World Bank In countries that have a freely convertible cmrency Designated Accounts may be held in the currency of the borrower or any freely convertible currency The World Bank may also agree to local currency Designated Accounts when, among other things, the country's currency (even if not freely convertible) is stable and the expenditures to be financed are primarily in local currency The borrower bears all risks associated with foreign exchange fluctuations between (a) the currency of denomination of the loan and that of the borrower's Designated Account, and (b) the currency of denommation of the borrower's Designated Account and the currency or currencies of project expenditures. 5.5 Financial Institution. Designated Accounts must be opened and maintained in a financial institution selected by the borrower and acceptable to the World Bank. A financial institution is acceptable if it meets all the following requirements: (a) It is financially sound, (b) It is in good standing (c) It is authorized to maintain the Designated Account in the currency agreed between the World Bank and the borrower (d) It is audited regularly, and receive satisfactory audit reports; A fmanwal astitution may be the coutry's catal bank, a local devulopamt bmk or a commuaial bank. (e) It can execute a large nmnber of transactions promptly, (f) It can satisfactorily perform a wide range of banking services (g) It can provide a detailed statement of the Designated Account; (h) It is part of a satisfactory correspondent banking network, (i) It charges reasonable fees for its services. 5.6 The World Bank reserves the right not to transfer funds to a fmancial institution if that institution has asserted or asserts a claim to set off, seize, or attach the proceeds of any Bank loan on deposit in a Designated Account maintained by the institution. 6. Tems and Conditions Applicable to Advances 6.1 Ceiling. The World Bank notifies the borrower of the maxsmurm amount of funds from the Financing Account that may be on deposit in a Designated Account (the Ceiling). The World Bank, at its discretion, may establish the Ceiling as either (a) a fixed amount, or (b) an amount that is adjusted from time to time during project implementalian on the basis of periodic forecasts of project cash flow needs. 61 Applications for Advances. The borrower may apply for an advance in an amount up to the Ceiling less the aggregate amount of those advances previously received by the borrower for which the borrower has not yet provided supporting documentation. Nomally, to support orderly closure of the Financing Account, the World Bank does not advance funds from the Financing Account into the Designated Account after the Closing Date. 6.3 Frequencq of Reporting Eligible Expenditures Paid firm the Designated Account The borrower reports on the use of funds from the Financing Account advanced to the Designated Account at intervals specified by the World Bank by notice to the borrower The borrower nxst ensue that all amounts deposited into the Designated Account are accounted for and that their use is reported prior to the Disbumsement Deadline Date. After that date, the borrower must refund to the World Bank any advances still unaccounted for or remaining in the Designated Account 6.4 ffithholding Adances. The World Bank is not required to make any deposit into the Designated Account if any of the following conditions apply: (a) The World Bank deterines that payment of the deposit would result in exceeding the Ceiling (see subsection 6.2, Applications for Advances); (b) The World Bank is not satisfied that the borrower's planned project expenditures justify the deposit. The Wodd Bank may adjust the amount it deposits or withhold fmther deposits into the Designated Account until it is satisfied that the financial needs of the project warrant further deposits; 6 12 (c) The borrower fails to take the action required pursuant to the determinations made by the World Bank under subsections 7.1 and 7-2 of these guidelmes; (d) The borrower fails to provide any of the audited financial statements required in accordance with, and within the period of time specified in, the Financing Agreement; (e) The World Bank determmes that all further withdrawals of funds from the Financing Account should be made by the borrower directly from the Financing Account; or (f) The World Bank has notified the borrower of its infention to suspend in whole or in part the borrower's right to make withdrawals from the Financing Account- 6.5 Eycess Adownces. If at any time the World Bank detennines that any amount deposited in the Designated Account will not be required to cover further payments for eligible expenditures (the Excess Amount), it may, at its discretion, require the borrower to take one of the following two disbursement-related actions (a) Provide evidence satisfactory to the World Bank within a period specified by the World Bank that the Excess Amount will be used to pay for eligible expenditures. If the evidence is not fumished within the time period specified, the borower must promptly refund the Excess Amount to the World Bank; or (b) Refund the Excess Amount promptly The borrower must perform the action requested promptly after receiving notification from the World Bank that it must do so. 7. Ineligible Expenditures 7.1 In&igible Expenditures Generalt If the World Bank detemnines that any amount of the funds from the Fiancing Account was used to pay for an expenditure that is not eligible pursuant to the Finanemg Agreement (an ineligible expenditur4 the World Bank nay, at its discretion, require the borrower to take one of the following two disbursement-related actions, without prejudice to the Bank's right to exercise remedies under the General Canditionis or Standard Conditions9 and Financing Ageement. (a) Refund an equivalent amount to the World Bank (b) Exceptionally provide substitute documentation evidencing other eligible expenditures. The borrower must perform the action equested promptly after receiving notification from the World Bank that it ast do so. The Goad Cambious set fErh ceitmn tens and canditions generally apphcable to IBRD lam and IDAaed and pamts. The Samard Cmadianw set frth ceran tm and camhians that ae genrafly applicable to trut fmds and adranes nde by the Bank uidth Projct Preparian Facility 13 ii [ui h i É b i hI d ~j ! lI 4 Attachment 2 Form of Authorized Signatory Letter [Letterhead] [Recipient] [Street address] [City] [Country] [DATE] The World Bank 1818 H Street, N.W. Washington, D.C. 20433 United States of America Attention: [Country Director] Dear [Country Director]: Re: Grant No. TF0A4647 (ECAPDEV Project Preparation Grant for the proposed Third Phase of the Central Asia Regional Links Program - CARs-3) I refer to the Letter Agreement ("Agreement") between Kyrgyz Republic (the "Recipient") and the International Development Association ("World Bank"), acting as administrator of grant funds provided by various donors under the Multi-Donor Programmatic Trust Fund for Europe and Central Asia Region Capacity Development (ECAPDEV), dated , providing the above Grant. For the purposes of Section 3.04 (b) of the Standard 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 [and applications for a special commitment] under this Grant. For the purpose of delivering Applications to the World Bank, 2[each] of the persons whose authenticated specimen signatures appears below is authorized on behalf of the Recipient, acting '[individually] 4[ointly], to deliver Applications, and evidence in support thereof on the terms and conditions specified by the World Bank. 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 World Bank by electronic means. In full recognition that the World 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 1 Instruction to the Recipient when sending this letter to the World Bank: 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 World Bank. 2 Instruction to the Recipient: 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 World Bank. 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 World 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 World Bank. 15 Recipient represents and warrants to the World Bank that it will cause such persons to abide by those terms and conditions. This Authorization replaces and supersedes any Authorization currently in the World Bank records with respect to this Agreement. [Name], [position] Specimen Signature: [Name], [position] Specimen Signature: [Name], [position] Specimen Signature: Yours truly, / signed/ [Position] 16 Attachment 3 Terms and Conditions of Use of Secure Identification Credentials in connection with Use of Electronic Means to Process Applications and Supporting Documentation March 1, 2013 The World Bank (Bank)1 will provide secure identification credentials (SIDC) to permit the Borrower2 to deliver applications for withdrawal and applications for special commitments under the Agreement(s) and supporting documentation (such applications and supporting documentation together referred to in these Terms and Conditions of Use as Applications) to the Bank electronically, on the terms and conditions of use specified herein. SIDC can be either: (a) hardware-based (Physical Token), or (b) software-based (Soft Token). The Bank reserves the right to determine which type of SIDC is most appropriate. A. Identification of Users. 1. The Borrower will be required to identify in a completed Authorized Signatory Letter (ASL) duly delivered to and received by the Bank each person who will be authorized to deliver Applications. The Bank will provide SIDC to each person identified in the ASL (Signatory), as provided below. The Borrower shall also immediately notify the Bank if a Signatory is no longer authorized by the Borrower to act as a Signatory. 2. Each Signatory must register as a user on the Bank's Client Connection (CC) website (https://clientconnection.worldbank.org) prior to receipt of his/her SIDC. Registration on CC will require that the Signatory establish a CC password (CC Password). The Signatory shall not reveal his/her CC Password to anyone or store or record the CC Password in written or other form. Upon registration as a CC user, the Signatory will be assigned a unique identifying account name. B. Initialization of SIDC. 1. Prior to initialization of SIDC by a Signatory, the Signatory will acknowledge having read, understood and agreed to be bound by these Terms and Conditions of Use. 2. Where a Physical Token is to be used, promptly upon receipt of the Physical Token, the Signatory will access CC using his/her account name and CC Password and register his/her Physical Token and set a personal identification number (PIN) to be used in connection with the use of his/her Physical Token, after which the Physical Token will be initialized for use by the Signatory exclusively for purposes of delivering Applications. Where a Soft Token is to be used, the Signatory will access CC using his/her account name and CC Password and set a personal "Bank" includes IBRD and IDA. 2 "Borrower" includes the borrower of an IBRD loan, IDA credit, or Project Preparation Facility advance and the recipient of a grant. 17 identification number (PIN) to be used in connection with the use of his/her Soft Token, after which the Soft Token will be initialized for use by the Signatory exclusively for purposes of delivering Applications. Upon initialization of the SIDC, the Signatory will be a "SIDC User". The Bank will maintain in its database a user account (Account) for each SIDC User for purposes of managing the SIDC of the SIDC User. Neither the Borrower nor the SIDC User will have any access to the Account. 3. Prior to first use of the SIDC by the SIDC User, the Borrower shall ensure that the SIDC User has received training materials provided by the Bank in use of the SIDC. C. Use of SIDC. 1. Use of the SIDC is strictly limited to use in the delivery of Applications by the SIDC User in the manner prescribed by the Bank in the Agreement(s) and these Terms and Conditions. Any other use of the SIDC is prohibited. 2. The Bank assumes no responsibility or liability whatsoever for any misuse of the SIDC by the SIDC User, other representatives of the Borrower, or third parties. 3. The Borrower undertakes to ensure, and represents and warrants to the Bank (such representation and warranty being expressly relied upon by the Bank in granting SIDC) that each SIDC User understands and will abide by, these Terms and Conditions of Use, including without limitation the following: 4. Security 4.1. The SIDC User shall not reveal his/her PIN to anyone or store or record the PIN in written or other form. 4.2. The SIDC User shall not allow anyone else to utilize his/her SIDC to deliver an Application to the Bank. 4.3. The SIDC User shall always logout from CC when not using the system. Failure to logout properly can create a route into the system that is unprotected. 4.4. If the SIDC User believes a third party has learned his/her PIN or has lost his/her Physical Token he/she shall immediately notify clientconnection@worldbank.orR. 4.5. The Borrower shall immediately notify the Bank at clientconnectiongworldbank.org of any lost, stolen or compromised SIDC, and take other reasonable steps to ensure such SIDC are disabled immediately. 5. Reservation of Right to Disable SIDC 5.1. The Borrower shall reserve the right to revoke the authorization of a SIDC User to use a SIDC for any reason. 5.2. The Bank reserves the right, in its sole discretion, to temporarily or permanently disable a SIDC, de-activate a SIDC User's Account or both. 18 6. Care of Physical Tokens 6.1. Physical Tokens will remain the property of the Bank. 6.2. The Bank will physically deliver a Physical Token to each Signatory designated to receive one in a manner to be determined by and satisfactory to the Bank. 6.3. Physical Tokens contain delicate and sophisticated instrumentation and therefore should be handled with due care, and should not be immersed in liquids, exposed to extreme temperatures, crushed or bent. Also, Physical Tokens should be kept more than five (5) cm from devices that generate electromagnetic radiation (EMR), such as mobile phones, phone-enabled PDAs, smart phones and other similar devices. Physical Tokens should be carried and stored separate from any EMR device. At close range (less than 5 cm), these devices can output high levels of EMR that can interfere with the proper operation of electronic equipment, including the Physical Token. 6.4. Without derogating from these Terms and Conditions of Use, other technical instructions on the proper use and care of Physical Tokens are available at http://www.rsa.com. 7. Replacement 7.1. Lost, damaged, compromised (in terms of 4.5, above) or destroyed Physical Tokens will be replaced at the expense of the Borrower. 7.2. The Bank reserves the right, in its sole discretion, not to replace any Physical Token in the case of misuse, or not to reactivate a SIDC User's Account. 19 Attachment 4 Statement of Expenditures (SOE) Payments made during the period from to Grant No.: Application No.: .ategory No.: SOE No.: 1 2 3 4 5 6 7 8 9 10 11 Supplier's WB Type of Good or Currency and Currency % Financed Amount Currency and Exchange Date of Remarks Name Contract Service Total Amount, and and Total by Eligible Amount Paid Rate Payment Number in (CW/GO/CS/OP/TR) Date of Contract Amount of IBRD/IDA/TF for from Client / Brief Description Invoice Financing Designated Connection Covered by (5 x 6) Account (if (for Prior Application Applicable) Review Contracts) TOTALS Supporting documents for this SOE retained at (location) 20 Attachment 5 DESIGNATED ACCOUNT RECONCILIATION STATEMENT LOAN/CREDIT/PPF/COFINANCIER NUMBER ACCOUNT NUMBER WITH (BANK) 1. TOTAL ADVANCED BY WORLD BANK (OR COFINANCIER) $ 2 LESS: TOTAL AMOUNT RECOVERED BY WORLD BANK - $ 3. EQUALS PRESENT OUTSTANDING AMOUNT ADVANCED TO THE SPECIAL ACCOUNT (NUMBER I LESS NUMBER 2) = $ 4. BALANCE OF SPECIAL ACCOUNT PER ATTACHED BANK STATEMENT AS OF DATE $ 5. PLUS: TOTAL AMOUNT CLAIMED IN THIS APPLICATION NO. + $ 6. PLUS: TOTAL AMOUNT WITHDRAWN AND NOT YET CLAIMED REASON: + $ 7. PLUS: AMOUNTS CLAIMED IN PREVIOUS APPLICATIONS NOT YET CREDITED AT DATE OF BANK STATEMENTS APPLICATION NO. AMOUNT * SUBTOTAL OF PREVIOUS APPLICATIONS NOT YET CREDITED + $ 8. MINUS: INTEREST EARNED - $ 9. TOTAL ADVANCE ACCOUNTED FOR (NO. 4 THROUGH NO. 9) = $ 10. EXPLANATION OF ANY DIFFERENCE BETWEEN THE TOTALS APPEARING ON LINES 3 AND 9: 11. DATE: SIGNATURE: TITLE: 21