19-Feb-2024 Date: _____________ Honorable Professor Mthuli Ncube Minister, Finance and Economic Development Ministry of Finance and Economic Development 6th Floor, Block B, New Government Complex Cnr. 4th Street/Samora Machel Avenue Harare, ZIMBABWE Re: HEPR TF0B6705 and ESMAP TF0B6709 (Zimbabwe COVID-19 Emergency Response Project) and GFF TF0C2998 (Zimbabwe COVID-19 Response and Essential Health Services Additional Financing) Additional Instructions: Disbursement and Financial Information Letter Honorable Prof. Ncube I refer to the Grant Agreements (“Agreement”) between the International Bank for Reconstruction and Development and International Development Association acting as administrator of the Health Emergency Preparedness and Response Fund (HEPR) and the Energy Sector Management Assistance Program (ESMAP), the Global Financing facility (GFF), and the Republic of Zimbabwe (the “Recipient”) for the above-referenced project, dated March 9, 2022.The Standard Conditions, as defined in the Grant Agreements, provide that the World Bank may issue additional instructions regarding the withdrawal of the proceeds of Grant TF0B6705 and TF0B6709 and TF0C2998 (“Grant”), and may set out Project specific financial reporting requirements. This letter (“Disbursement and Financial Information Letter”), as revised from time to time, constitutes such additional instructions. This DFIL represents the first restatement to the subject project DFIL dated March 9, 2022, to add the info related to GFF AF and supersedes it in its entirety. I. Disbursement Arrangements and Withdrawal of Grant Funds The World Bank Disbursement Guidelines for Projects dated February 1, 2017, (“Disbursement Guidelines”) are available in the World Bank's public website at https://www.worldbank.org, and are an integral part of the Disbursement and Financial Information 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 The table in Schedule 1 provides 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 advances), instructions on supporting documentation, and frequency of reporting on the Designated Account. (ii) Withdrawal of Grant Funds (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 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 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 Section 2.07 (a) and (b) of the Standard Conditions. (i) Financial Reports. The Recipient must prepare and furnish to the Bank not later than forty-five (45) days after the end of each calendar quarter, a single consolidated interim unaudited financial report (“IFR”) for the 3 TFs under the Project covering the quarter. Where a UN agency is contracted by the Recipient, the Recipient is responsible to ensure that the financial reporting requirements applicable to the UN Agency are stipulated in the agreement between the Recipient and the UN agency and met in a timely manner. (ii) Audits. Each single consolidated audit of the Project 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 Project Audited Financial Statements accompanied with the Management Letter for each such period must be furnished to the Bank not later than six (6) months after the end of such period. Where a UN agency is contracted by the Recipient, the Recipient is responsible to ensure that the documentation requirements applicable to the UN agency, for project audit purposes, are stipulated in the agreement between the Recipient and the UN agency. III. Other Important Information For additional information on disbursement arrangements, please refer to the Loan Handbook available on the World Bank’s website (http://www.worldbank.org) and “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 Grant, and retrieve related policy, financial, and procurement information. For more information about the website and registration arrangements, or if you have any queries in relation to the above, please contact the World Bank by email at askloans@worldbank.org using the above reference. Yours sincerely, ______________________________ Eneida Herrera Fernandes Country Manager for Zimbabwe Africa Region Attachments 1. Form for Authorized Signatures 2. Interim unaudited Financial Report (IFR) template Cc with copies: Ms. Heleen van den Berg Chief Executive Officer Stichting Cordaid Postbus 16440 BK's Gravenhage The Hague Kingdom of Netherlands Schedule 1 - Disbursement Provisions Basic Information Country Republic of Zimbabwe Closing Date Section III B.3 of Schedule 2 to HEPR Recipient Republic of Zimbabwe the Grant Agreements GRANT Name of the Zimbabwe COVID-19 Emergency Disbursement Four (4) months after the closing and TF0B6705 and Project Response Project Deadline Date date ESMAP TF0B6709 And Subsection 3.7 ** GRANT and TF0C2998 Zimbabwe COVID-19 Response and and Essential Health Services Additional GFF Grant Financing Disbursement Methods, and Supporting Documentation Disbursement Methods Methods Supporting Documentation Section 2 (**) Available Subsections 4.3 and 4.4 (**) Direct Payment Yes Copy of Records Reimbursement Yes Interim unaudited Financial Report in the format provided in Attachment 2 of the DFIL Advance (into a Designated Yes Interim unaudited Financial Report in the format provided in Attachment 2 of the DFIL Account) Special Commitments No N/A Designated Account (Section 5 and 6 **) Three DAs, to be managed by Stichting Cordaid, the Project Variable Implementing Entity as follows;  DA-A -pooled for HEPR and GFF AF Grant - linked to Category 1 Type Ceiling  DA-B - segregate - ESMAP Grant linked to Category 2  DA-C - segregate - GFF grant (AF) linked to category 3 Stanbic Bank Zimbabwe Limited USD Financial Institution - Name Currency Frequency of Reporting, Quarterly Based on six-month cashflow forecast as Amount Subsection 6.3 (**) per IFRS Minimum Value of Applications (subsection 3.5) The Minimum Value of Applications for Reimbursement, and Direct Payment is USD 10,000.00 equivalent Authorized Signatures (Subsection 3.1 and 3.2 **) The form for Authorized Signatories Letter is provided in Attachment 1 of this letter Withdrawal and Documentation Applications (Subsection 3.3 and 3.4 **) (i) Authorized Signatures (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 Office Block 3, Arundel Office Park 107 Norfolk Road, Mount Pleasant Harare, Republic of Zimbabwe Attention:, Eneida Fernandes Country Manager (ii) Applications (subsections 3.2 - 3.3). Please provide completed and signed (a) applications for withdrawal, together with supporting documents, and (b) applications for special commitments, together with a copy of the commercial bank letter of credit, to the address indicated below: The World Bank, Loan Operation and Trust Funds Department, Delta Center, 13th Floor, Menengai Road, Upper Hill, Nairobi, Kenya. Contact Telephone number: +254 20 2936 000. Additional [Information][Instructions] In case of category of the table under Schedule 2 Section III A (“Withdrawal Table”) of the Grant Agreement, payments to UN Agencies (if any) may be made through UN Advances (with or without a UN Commitment) disbursement mechanism. In case of a contract with a UN Agency requiring a UN Commitment, an application for issuance of UN Commitment is to be submitted by the Recipient. Subsequent payments and documentation of expenditures under the contract must be made in accordance with the Commitment letter to be issued by the Association and the contract between the Recipient and the UN agency. In case of a UN Advance (without UN Commitment), documentation of expenditure should be made once the final invoice is issued and based on the UN Financial Report Other N/A. ** Sections and subsections indicated relate to the Disbursement Guidelines for Investment Project Financing dated February 2017. Attachment 2 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: [Country Director] Dear [Country Director]: Re: HERP TF0B6705 and ESMAP TF0B6709 and GFF TF0C2998 (Parent Project and Additional Financing) I refer to the Grant Agreement (“Agreement”) between the International Bank for Reconstruction and Development and International Development Association acting as administrator of the ______ and ______ and ______, and the Republic of Zimbabwe (the “Recipient”), dated _______, providing the above Grant. For the purposes of Section 3.04 (b) of the Standard Conditions, as defined in the Agreement, any [1one] 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] [Association], 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 [World Bank] [Association]. 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/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 World Bank/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 World Bank/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 World Bank/Association. 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 [World Bank] [Association] by electronic means. In full recognition that the [World Bank] [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 [World Bank] [Association] 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] [Association] records with respect to this Agreement. [Name], [position] Specimen Signature: ____________________ [Name], [position] Specimen Signature: ____________________ [Name], [position] Specimen Signature: ____________________ Yours truly, / signed / ______________ [Position] 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 World Bank/Association. Attachment 2 – Interim unaudited Financial Statements Republic of Zimbabwe: Zimbabwe Covid-19 Emergency Response Project and Zimbabwe COVID-19 Response and Essential Health Services Additional Financing TRUST FUND No. TF0_____ SOURCES AND USES OF FUNDS BY CATEGORY QUARTER ENDED: …………………………………………. CURRENCY US$ CURRENT Year To 6 MONTHS QUARTER Date CUMMULATIVE FORECAST Cash Receipts: US$ US$ US$ US$ IDA Receipts - - - Other 0 0 - Total Financing - - - - Less: Use of Funds by Category (1) Goods, works, non-consulting services, consulting services, Training Costs and Operating Costs under Parts 1.A, 1.B, and 3 of the Project (2) Goods, works, non-consulting services, consulting services, Training Costs and Operating Costs under Part 2 of the Project (3) Goods, works, non-consulting services, consulting services, Training Costs and Operating Costs under Part 4 of the Project Total Expenditures - - - - Receipts less Expenditure - - - - Opening cash balance Designated Account - - - Other - - Total Opening Cash - - - Closing Cash balances Designated Account - - - Other 0 0 Total Closing Bank balances - - - Republic of Zimbabwe: ______Project TF No ___________ Designated Account (DA) Activity Statement For the quarter ending …… Project Name: Deposit Bank: Stanbic Bank A/C No: Currency of DA: US$ Part I 1. Cumulative advances to end of current reporting period - 2. Cumulative expenditures to end of last reporting period - 3. Outstanding Advances to be accounted (line 1minus line 2) - Part II 4.Opening DA balance at beginning of reporting period (as of XXXX ) - 5. Add/subtract: Cumulative adjustments (if any) 6. Advances from World Bank during reporting period - 7. Add lines 5 and 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 XXXX) - 10. Add/subtract: Cumulative adjustments (if any) 11.Expenditures for current reporting period - 12. Add line 10 and line 11 - 13. Outstanding advances to be accounted for (add line 9 and line 12) - 14. Difference (if any) (line 8 minus line 13) - Part III 15. Total forecasted amount to be paid by World Bank - 16. Less: Closing SA balance after adjustments - 17. Direct payments/SC payments - 18. Add lines 16 and 17 - 19. Cash requirement from World Bank for next two reporting periods (line 15 minus - line 18)