THE WORLD BANKPFFICIAL IBR* IDA I WORLDBANKGROUD ) CUM EN TS November 15, 2019 Mr. Iskandar Thamrongsab Project Director Hilal Ahmar Foundation 300/122 Nong Chik Road Village No. 4, Rusamilae Sub-district Muang District, Pattani Thailand 94000 Re: Trust Fund No. B0231: Socio-Economic Reintegration Project in Southern Thailand Disbursement and Financial Information Letter (DFIL) Dear Mr. Thamrongsab, I refer to the Letter Agreement ("Agreement") dated November 15, 2019 between the Hilal Ahmar Foundation (the "Recipient") and the International Bank for Reconstruction and Development acting as administrator of grant funds provided by the Republic of Korea ("Donor") under the Korean Trust Fund for Economic and Peace-Building Transitions (the "Bank") for purposes of financing the Socio-Economic Reintegration Project in Southern Thailand (the "Project"). The Standard Conditions, as defined in the Agreement, provide that the Recipient may request withdrawals of trust funds in accordance with the instructions as the World Bank may specify by notice to the Recipient. The Standard Conditions also provide that the Disbursement and Financial Information Letter ("DFIL") may set out Project specific financial reporting requirements. This letter constitutes such DFIL, and as revised from time to time, provides such additional requirements. I. Disbursement Arrangements, Withdrawal of Grant Funds and Reporting of Uses of TF funds. (i) Disbursement Arrangements. The table in Schedule I sets out the disbursement methods which may be used by the Recipient, 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 7.01 (c) of the Standard Conditions. The Recipient 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 Recipient 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 Recipient 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 Recipient may exercise the option of preparing and delivering Withdrawal Applications in paper form on exceptional cases (including those where the THE WORLD BANK IBRD IDA I WORLDBANKGROUP Recipient 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 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 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 Recipient must prepare and furnish to the Bank not later than forty-five (45) days after the end of each semester, Interim Unaudited Financial Reports ("lFR)" 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, 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 Bank not later than six (6) months after the end of such period. An independent auditor will be appointed based TOR and qualifications acceptable to the Bank. III. Other Important Information For additional information on disbursement arrangements, please refer to the Loan Handbook available on the Bank's website (http://www.worldbank.org/) 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 TF, and retrieve related policy, financial, and procurement information. For more information about the website and registration arrangements, please contact the Bank by email at clientconnectiongworldbank.org. If you have any queries in relation to the above, please contact us at AskLoans@WorldBank.org using the above reference. Yours sincerely, Birgit Hansl C ountry Manager Attachments: 1. Form of Authorized Signatory Letter 2. Statement of Expenditure (SOE) 3. Designated Account Reconciliation Statement Schedule I to DFIL Disbursement Arrangements Country Kingdom of Thailand Closing Date Section 3.03 of the Annex to the Reci ient/Beneficiar Hilal Ahmar Foundation Letter Agreement. TF Number B0231 Name of the Project Socio-economic Reintegration Project Disbursement Four months after the closing in Southern Thailand Deadline Date 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 Expenditure in the format provided in Attachment 2 Designated Account (Advance) Yes Statement of Expenditure in the format provided in Attachment 2 Special Commitments Yes Copy of Letter of Credit Type Segregated Ceiling Variable, based on 6-month forecast Finacia InsituionFinancial Institution acceptable to the Curny United States Dollar (USD) The minimum value ofapp s-catioWs for )ir t upptRint and Special onmitment is USDg35,000 equivalent. Authorized Signatures - The ASL will be sent y the Bank's ask em priortion The World B ank ication Attenin Th4ol akOfc 30"' Floor, Siam Piwat Tower 989 Rama 1, Bangkok 10330 Kingdom of Thailand Withdrawal Applications (WAs)- All WAs and its supporting documentation will be electronically sent through the Bank's system Client Connection. 1. Six-month cash forecast to be approved by the Bank's Task Team prior to submission of withdrawal application for DA advances 2. Funds from the Designated Account may be transferred to an Operating Account in local currency to meet eligible expenditures, provided that transactions and balance in this account are included in all project financial reports and in the Designated Account reconciliation 3. All other supporting documentation for SOEs should be retained by the Recipient and must be made available for review by World Bank missions and auditors 4. Copy of the bank statement of the Designated Account and Operating Account and a Designated Account Reconciliation Statement in the format provided in Attachment 3, must be attached to each replenishment application to the Designated Account Attachment I - Form of Authorized Signatory Letter Form of Authorized Signatory Letter [Letterhead] Ministry of Finance [Street address] [City] [Country] [DATE] The World Bank Office 30th Floor, Siam Piwat Tower 989 Rama I, Bangkok 10330 Kingdom of Thailand Attention: Ms. Birgit Hansl, Country Manager for Thailand Re: Trust Fund No. B0231 (Socio-economic Reintegration Project in Southern Thailand) Dear Ms. Hansl: I refer to the Letter Agreement ("Agreement") dated XXX between the Hilal Ahmar Foundation (the "Recipient") and the International Bank for Reconstruction and Development acting as administrator of grant funds provided by the Republic of Korea ("Donor") under the Korea Trust Fund for Economic and Peace-Building Transitions (the "Bank") providing the above Grant. For the purposes of Section 3.04 (b) of the Standard Conditions, as defined in the Agreement, any [lone] 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 Bank, 2[each] of the persons whose authenticated specimen signatures appears below is authorized on behalf of the Recipient, acting 3[individually] 4[jointly], to deliver Applications, and evidence in support thereof on the terms and conditions specified by the Bank. I Instruction to the Recipient when sending this letter to the 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 Bank. 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 Bank. 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 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 Bank. 5[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 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 woith Use of Electronic Means to Process Applications and Supporting Documentation ("Terms and Conditions of Use of SIDC"), the Recipient 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] 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 Bank. Attachment 2 - Statement of Expenditures Grant # Payment made during the period from to Application # Category # The following expenditures have been incurred during the retroactive financing period (please tick) Yes No Page # The following expenditures have been incurred during before the closing date of the grant (please tick) Yes No In case of DA payments 1 2 3 4 5 6 7 8 9 10 11 12 13 14 ContracToa Ctra Total Amount paid Prior Contract # Date amount Service Brief Review (Client currenc Invoice of of invoice % Erom Item provider / Description Contract Connectio amou t number payme covered Finance Expenditure Amount Designated No Supplier / of the I? amont by d by the Amount Eligible claimed Account Remarks Payee's onte ( n # for (original nt Applicatio Bank for Financing (which should Name expenditurePrior + Appicto be equal to NO) Review amend reten on) #11) contracts) ment) TOTAL Supporting documents for this SOE retained at:(insert location) Prepared by: Authorized Representative: *A separate form should be used for each category Page 7 of 9 Attachment 3 - Designated Account Reconciliation Statement TF Account No. Bank's name 1. Total Advance by World Bank 2. Less: Total amount recovered by World Bank 3. Equals: Present outstanding amount advanced to Special Account 4. Balance of Special Account per attached Bank statement (as of) 5. + Total amount claimed in this application (appl no.) 6. + Amounts notyet credited to account at date of bank statement from past applications (Enter application numbers below) 7. - Interest earned 8. + Total amount withdrawn and notyetclaimed (Enter explanations below) 9. Total Advance accounted for (#s 4 through 8) 10. Difference to be explained 11. Explanation of any difference between the totals appearing on lines 3 and 9 (Amounts) Bank charge collected by negotiating bank Total Advanced Accounted For 12. Unclaimed amount without explanation Note: (i) Withdraw application is created buttund is not credited to the PIU bank account (ii) PIU have paid from Designated account but not report in this period due to : Pending treasury certification; pending 13. Project Supervisor (Date)