16-Apr-2024 Date:_______________ H. E. Mr. Almaz Baketaev Minister of Finance Ministry of Finance 58 Erkindik Boulevard Bishkek 720040 Kyrgyz Republic Re: IDA Credit No. 7470-KG Second Additional Financing for Sustainable Rural Water Supply and Sanitation Development Project Additional Instructions: Disbursement and Financial Information Letter (DFIL) Excellency: I refer to the Financing Agreement between the Kyrgyz Republic (the “Recipient”) and the International Development Association (the “Association”) for the above -referenced Project. The General Conditions, as defined in the Financing Agreement, provide that the Recipient may from time-to-time request withdrawals of Credit amount from the Credit Account respectively, 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 (the “DFIL”) and may be revised from time to time. I. Disbursement Arrangements, Withdrawal of Credit Funds, and Reporting on Uses of Credit 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 Credit is specified below. (i) Disbursement Arrangements 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. (ii) Electronic Delivery. Section 11.01 (c) of the General Conditions: The Recipient shall electronically deliver applications (with supporting documents) through the Association’s web-based portal (https://clientconnection.worldbank.org) “Client Connection”. This facility will become available once: (a) the Recipient has designated in writing, its officials who are authorized to sign and deliver Applications and to receive Secure Identification Credentials (“SIDC”) from the Association 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”. The designated officials shall 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 author izing 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 exercise the option of preparing and delivering Applications in paper form on an exceptional basis (including those where the Recipient encounters legal limitations), and which were previously agreed with the Association. By designating officials to use SIDC and 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://www.worldbank.org and “Client Connection” at https://clientconnection.worldbank.org; and (b) to cause such official to abide by those terms and conditions. II. Financial Reports and Audits (i) Financial Reports. The Recipient shall cause the Project Implementing Entity (PIE) to prepare and furnish to the Association not later than forty-five (45) days after the end of each calendar quarter, consolidated interim unaudited financial reports (IFR) for the Project, covering the quarter, in form and substance satisfactory to the Association. (ii) Project Audits. Each audit of the consolidated Project Financial Statements shall cover the period of one fiscal year of the Recipient. The audited consolidated Project Financial Statements for each such period shall be furnished to the Association by the Recipient through the PIE, not later than six (6) 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” at https://clientconnection.worldbank.org. The Association recommends that you register as a user of “Client Connection”. From this website you will be able to prepare and deliver Authorized Signatory Letters and Withdrawal Applications, monitor the near real-time status of the Credit, 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 Association by email at askloans@worldbank.org. Yours sincerely, ______________________________ Tatiana Proskuryakova Country Director Central Asia Attachments 1. Form of Authorized Signatory Letter (ASL) 2. Form of Statement of Expenditure (SOE) 3. Form of Designated Account Reconciliation Statement (DARS) Cc with copies: Ministry of Finance 58 Erkindik Boulevard Bishkek, 720 040 Kyrgyz Republic minfin@minfin.kg ARIS Mr. Mars Naspekov Executive Director Community Development and Investment Agency (ARIS) 102 Bokonbaeva Street Bishkek City 70040 Kyrgyz Republic mnaspekov@aris.kg Mr. Erlan Korchubay Project Coordinator Community Development and Investment Agency (ARIS) 102 Bokonbaeva Street Bishkek City 70040 Kyrgyz Republic EKorchubay@aris.kg Mr. Baktybek Stalbek Finance Manager Community Development and Investment Agency (ARIS) 102 Bokonbaeva Street Bishkek City 70040 Kyrgyz Republic Bstalbek@aris.kg Schedule 1: Disbursement Provisions Basic Information Country Kyrgyz Republic Closing Date Section III.B.2 of Schedule 2 Recipient Ministry of Finance to the Financing Agreement Credit Number IDA 7470-KG Name of the Project Second Additional Financing for Disbursement Four (4) months after the Sustainable Rural Water Supply and Deadline Date Closing Date Sanitation Development Project (Subsection 3.7 **) Disbursement Methods and Supporting Documentation Disbursement Methods Methods Supporting Documentation (Section 2 **) (Subsections 4.3 and 4.4 **) Direct Payment Yes Copy of records (e.g., suppliers’ invoices, guarantees for advance and retention payments, etc.) Reimbursement Yes SOE in the format provided in Attachment 2 of the DFIL Advance (into a Designated Account) Yes SOE and DARS in the formats provided in Attachment 2 and 3 of the DFIL Special Commitments Yes Copy of Letter of Credit (including pro forma invoice(s), if cited in the Letter of Credit) Designated Account (Sections 5 and 6 **) Type A Segregated DA (DA-F) managed by PIE Ceiling Fixed Financial Institution - Name OJSC RSK Bank Currency USD Frequency of Reporting Monthly Amount 1,500,000 (Subsection 6.3 **) Minimum Value of Applications (Subsection 3.5) The minimum value of applications for Reimbursement, Direct Payment and Special Commitment is USD 300,000 equivalent. Authorized Signatures (Subsections 3.1 and 3.2 **) Withdrawal and Documentation Applications (Subsections 3.3 and 3.4 **) 1) The form for Authorized Signatories Letter (ASL) is provided in Attachment 1 of this letter. 2) The ASL and all Withdrawal Applications with their supporting documentation will be submitted electronically via the Association’s ClientConnection system. Additional Instructions 1) The Recipient shall not request withdrawals for Eligible Expenditures that have already been financed by, or for which withdrawals have been requested under any other financing provided by the Association. 2) To the extent practicable, the proceeds of the Original Financing (IDA 5907-KG and IDA D138-KG) and Additional Financing (IDA 6088-KG and IDA D204- KG) shall be disbursed before the proceeds of this Second Additional Financing (IDA 7470-KG). 3) Only Reimbursement and Advance methods are to be used for Sub-grants. ** Sections and subsections relate to the “Disbursement Guidelines for Investment Project Financing”, dated February 2017. Attachment 1 – Form of Authorized Signatory Letter (ASL) [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 Re: IDA Credit No. 7470-KG Second Additional Financing for Sustainable Rural Water Supply and Sanitation Development Project I refer to the Financing Agreement (“Agreement”) between the Kyrgyz Republic (the “Recipient”) and the International Development Association (the “Association”), dated _______, providing the above Credit. For the purposes of Section 2.03 of the General Conditions as defined in the Agreement, any 1[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 Credit. 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 3[individually] 4[jointly], to deliver Applications, and evidence in support thereof on the terms and conditions specified by the Association. 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 1 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. 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. Signatory Details Name Position Email ID Phone No. [Signatory Name] [Title] [Email] [Phone No.] Specimen Signatures Signatory Name Signature 1 Signature 2 Signature 3 [Name] Yours truly, / signed / ______________ [Position] Attachment 2 – Form of Statement of Expenditure (SOE) Statement of Expenditure (SOE) for Goods, Works, Non-Consulting Services, Consulting Services, Training and Operating Costs Payments made during the period from ________________ to ______________ Credit No.: Application No.: Category No.: SOE No.: 1 2 3 4 5 6 7 8 9 10 11 Suppli WB Contract Number Type of Good or Currency and Currency and % Amount Currency and Exchange Date of Remarks er’s in Client Connection Service Total Amount, Total Amount of Financed Eligible for Amount Paid from Rate Payment Name (for Prior Review (CW/GO/CS/OP/TR) and Date of Invoice Covered by IDA Financing Designated Account Contracts) / Brief Description Contract by Application (5 x 6) (if Applicable) TOTALS Supporting documents for this SOE retained at ___________________________________________ (location) Statement of Expenditure (SOE) for Sub-grants Credit No.: _____________ Application No.: _____________ Category No.: _____________ Payments made during the period from ____________to ___________ SOE No.: _____________ 1 2 3 4 5 6 7 8 10 11 12 Reference Amount Eligible Date of Amount or No. of Name of Currency of Amount of Date of Sub- Amount % Financed for Financing Exchange Withdrawal withdrawn from Sub-grant Beneficiary Sub-grant Sub-grant grant Paid by IDA (Col 6 x 7) Rate from DA DA TOTAL Supporting documents for this SOE retained at _________________________________________ (location) Attachment 3 – Form of Designated Account Reconciliation Statement (DARS) CREDIT 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 1 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: ___________________________________________