16-Apr-2024 Date:________________ H. E. Mr. Almaz Baketaev Minister of Finance Ministry of Finance 58 Erkindik Boulevard Bishkek 720 040 KYRGYZ REPUBLIC Re: GAFSP Grant No. TF C4129-KG Resilient Agri-Food Clusters Development Project Additional Instructions: Disbursement and Financial Information Letter Excellency: I refer to the Grant Agreement (the “Agreement”) between the International Development Association (the “Bank”), acting as a Supervising Entity of the Global Agriculture and Food Security Program and the Kyrgyz Republic (the “Recipient”) for the above-referenced Project. The Standard Conditions, as defined in the Grant Agreement, provide that the Bank may issue additional instructions regarding the withdrawal of the proceeds of GAFSP Grant No. TF C4129-KG (the “Grant”), and may set out Project specific financial reporting requirements. This letter (“Disbursement and Financial Information Letter” or “DFIL”), as revised from time to time, constitutes such additional instructions. I. Disbursement Arrangements and Withdrawal of Grant Funds The Disbursement Guidelines for Investment Project Financing, dated February 2017, (“Disbursement Guidelines”) are available in the Bank’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 Grant is specified below. (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 shall 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 Bank's public website at https://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 Section 2.07 (a) and (b) of the Standard Conditions. (i) Financial Reports. The Recipient shall cause CLMU to prepare and furnish to the 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 quarter, in form and substance satisfactory to the Bank, commencing with the calendar quarter in which the first withdrawal was made. (ii) Audits. Each audit of the Project Financial Statements shall cover the period of one fiscal year of the Recipient, commencing with the fiscal year in which the first withdrawal was made. The audited Project Financial Statements for each such period shall be furnished to the Bank by the Recipient through CMLU, not later than six (6) months after the end of such period. 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” at https://clientconnection.worldbank.org. The Bank 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 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 Bank by email at askloans@worldbank.org using the above reference. 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: His Excellency Mr. Torobaev Bakyt Ergeshevich Minister Ministry of Water Resources, Agriculture and Processing Industry (MoWRAPI) 96А, Kievskya Street Bishkek, Kyrgyzstan Mr. Torogul Bekov Director Agribusiness Competitiveness Center (ABCC) 114, Chuy Avenue Bishkek, Kyrgyz Republic Schedule 1 - Disbursement Provisions Basic Information Country Kyrgyz Republic Closing Date Section III.B.2 of Recipient’s Ministry of Finance Schedule 2 to the TF C4129-KG Representative Grant Agreement GAFSP Grant No. Name of the Resilient Agri-Food Clusters Development Disbursement Four (4) months after Project Project Deadline Date the closing date 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 Section 5 and 6 ** Type A segregated DA (DA-B) managed by CLMU*** Ceiling Fixed Financial Institution - Name To be established at a financial institution acceptable to the Bank Currency USD Frequency of Reporting Subsection 6.3 ** Monthly Amount 500,000 Minimum Value of Applications Subsection 3.5** The minimum value of applications for Reimbursement, Direct Payment and Special Commitment is USD 50,000 equivalent for payments in USD outside the country and USD 100,000 equivalent for all other payments. Authorized Signatures Subsections 3.1 and 3.2 ** The form for Authorized Signatories Letter (ASL) is provided in Attachment 1 of this letter. Withdrawal and Documentation Applications Subsections 3.3 and 3.4 ** The ASL and all Withdrawal Applications with their supporting documentation will be submitted electronically via the Bank’s Cl ientConnection system. Additional Instructions 1) Funds from the Designated Account to be transferred to a ABCC Project Account managed by Agribusiness Competitiveness Center (ABCC) of the MoWRAPI in a financial institute acceptable to the Bank to meet eligible project expenditures under Part 2 and 3(b) of the Project. The summary of transactions and balance in this account are to be included in all project financial reports. 2) No withdrawal shall be made under the GAFSP Grant (TF C4129-KG) for eligible expenditure that have already been financed from the Credit (IDA 75260-KG), or for which withdrawals have been requested under the Credit, and vice versa. ** Sections and subsections indicated relate to the “Disbursement Guidelines for Investment Project Financing” dated February 2017. *** As defined in the Grant Agreement. Attachment 1 – Form of Authorized Signatory Letter (ASL) 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 Re: GAFSP Grant No. TF C4129- KG Resilient Agri-Food Clusters Development Project I refer to the Grant Agreement (the “Agreement”) between the International Development Association (the “Bank”), acting as a Supervising Entity of the Global Agriculture and Food Security Program and the Kyrgyz Republic (the “Recipient”), 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 the 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. 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 with Use of Electronic 1Instruction 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 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. 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 these Agreements. Signatory Details Signatory Name Position Email ID Phone No. [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 for Goods, Works, Non-Consulting Services, Consulting Services, Training and Operating Costs Payments made during the period from ________________ to ______________ Grant No.: Application No.: Category No.: SOE No.: 1 2 3 4 5 6 7 8 9 10 11 Supplier’s WB Contract Type of Good or Currency and Currency and % Amount Currency and Exchange Date of Remarks Name Number in Client Service Total Total Amount Financed Eligible for Amount Paid from Rate Payment Connection (CW/GO/CS/OP/TR) Amount, and of Invoice by TF Financing Designated (for Prior Review / Brief Description Date of Covered by (5 x 6) Account (if Contracts) Contract Application Applicable) TOTALS Supporting documents for this SOE retained at ___________________________________________ (location) Attachment 3 – Form of Designated Account Reconciliation Statement (DARS) Designated Account Reconciliation Statement GRANT 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: ______________________________ __________