H.E. M. Jean-Baptiste Ondaye Minister of Economy and Finance Ministry of Economy and Finance Boulevard Denis Sassou-N'guesso B.P. 2083 Brazzaville Republic of Congo Re: IDA Credit 7293-CG (Accelerating Governance Institutional Reforms for Sustainable Services (AGIR) Program) Additional Instructions: Disbursement and Financial Information Letter Excellency: I refer to the Financing Agreement between Republic of Congo ("Recipient") and the International Development Association ("Association") for the above-referenced Program. The General Conditions, as defined in the Financing Agreement, provide that the Recipient may from time to time request withdrawals of Credit amounts from the Credit Account 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 Program specific financial reporting requirements. This letter constitutes such Disbursement and Financial Information Letter ("DFIL"), and may be revised from time to time. I. Disbursement Arrangements, Withdrawal of Credit Funds, and Reporting of Uses of Credit Funds (i) Disbursement Arrangements The table in Schedule 1 sets out the disbursement methods which may be used by the Recipient, [conditions], information on registration of authorized signatories, processing of Withdrawal Applications (including processing of advances), instructions on supporting documentation, and reporting of advances. • For the Project 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 Disbursement Guidelines apply to the Credit is specified below. 1 (ii) Withdrawal Applications (Electronic Delivery) The Recipient will deliver Withdrawal Applications (with supporting documents, "Applications") electronically through the Association's web-based portal "Client Connection" at 1 Section 10.01 (c) of the General Conditions 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 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 Association by electronic means. The Recipient may exercise the option of preparing and delivering Applications in paper form on exceptional cases (including those where the Recipient encounters legal limitations), and which were previously agreed with the Association. 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 Association's public website at https://www.worldbank.org and "Client Connection" at https://clientconnection.worldbank.org; and (b) to cause such officials to abide by those terms and conditions. (iii) Disbursement Linked Results (DLRs) (Program only) The Recipient will deliver Applications of amounts of the Loan allocated to individual Disbursement Linked Results ("DLRs") may, pursuant to the provisions of Section _IV. A2_of Schedule of the Loan Agreement, be sent to the Association at any time after the Association has notified the Recipient in writing that it has accepted evidence of achievement of the specific DLRs. (iv) Withdrawal Amountfor the Program The Applications may be for an amount not to exceed the amount of the Loan confirmed by the Association for the specific DLRs in respect of which the withdrawal is requested, as specified in the Association's notice to the Recipient. (v) Prior Results (Program only) The Association confirms that it has received evidence satisfactory to it that the DLRs referred to in categories 2.1 and 4.1 of the Withdrawal Table in the Loan Agreement have been achieved. Consequently, the Borrower may withdraw the amount of the Loan allocated to said categories in the amount of EUR 4 725 000 after the Loan Agreement has been declared effective. 1 (vi) Advances and Recovery ofAdvancesfor the Program The Recipient may, in accordance with provisions of the Loan Agreement, request advances of amounts of the Loan allocated to DLis/DLRs that have not yet been achieved using the Form attached (Attachment 2). The aggregated amount of all such advances made in respect of amounts allocated to DLRs may not exceed EUR 10 395 000 under the loan agreement. The Association records an amount of the advance as disbursed for an achieved DLRs ("recovered") after it has notified the Recipient of its acceptance of the evidence of achievement of the DLR for which the advance was provided. The amount so reclassified becomes available for further advances in accordance with the preceding paragraph. 1 Advances and Recovery ofDesignated Account(s)/advancesfor the project, please refto Disbursement Guidelines section 5 and 6. III. Other Important Information For additional information on disbursement arrangements, please refer to the Loan Handbook available on the Association's public website at https://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 Applications, monitor the near real- time status of the Loan, 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 using the above reference. Yours sincerely, %5.. meU @),4t/ Africa Region Attachments 1. Form of Authorized Signatory Letter 2. Sample Form for Advances 3. Statement of Expenditure (SOE) With copies: Ministry of Economy and Finance Boulevard Denis Sassou-N'guesso B.P. 2083 II. Financial Reports and Audits ' (i) For the Program • Financial Reports The interim unaudited financial reports ("IFRs") for the Program are not required. However, in line with PforR policy requirements, at the end of the Program, there will be a reconciliation carried out to ensure total disbursed amount under the PforR does not exceed the net amount corresponding to the expenditures of the Program. • 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 Association not later than six (6) months after the end of such period. (ii) For the Project • Financial Reports The Recipient must prepare and furnish to the Association not later than forty-five (45) days after the end of each calendar quarter, interim unaudited financial reports ("IFRs") for the Project covering the quarter. • Audits Each audit of the Financial Statements must cover the period of one (1) 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 Association not later than six (6) months after the end of such period. The same audit report will cover the Project and the Program. 1 Section 5.09 of the General Conditions Schedule 1 : Disbursement Provisions A. Basic Information Country Republic of Congo Closing Date Section III.B.2 of Schedule 2 to Recipient Republic of Congo the Loan Agreement. IDA Credit Name of the Accelerating Governance Disbursement Six (6) months after the Number 7293-CG Operation Institutional Reforms for Deadline Date closing date. Sustainable Services (AGIR) Program B. Disbursement Methods and Supporting Documentation • Uoder the Program Disbursement Methods Methods Supporting Documentation Reimbursement (DLI Yes Confirmation issued by the Association payment for achieved results) Advance Yes Request in the format provided in Attachment 2 of the DFIL • Under the Project Disbursement Methods Methods Supporting Documentation Direct Payment Yes Copy of Records Reimbursement Yes Statement of Expenditure (SOE) in the format provided in Attachment 3 of the DFIL Advance (into a Yes Statement of Expenditure (SOE) in the format provided in Attachment 3 of the DFIL Designated Account) Copy of Letter of Credit. Special Commitments Yes Proforma Invoice if cited in the Letter of Credit C. Advances • Under the Program Financial Institution - Single Treasury Account managed by the Ministry of Limit 10 395 000 Name Economy and Finance EUR Currency • Under the Project Type and Management Pooled, managed by the PCU AGIR (formerly known as Fixed Ceiling Unit PIU PRISP) Financial Institution - Banque Postale du Congo Currency EUR Name Frequency ofReporting' I Same as IFR: Quarterly I Amount I 1,000,000 D. Authorized Signatories Withdrawal and Documentation Applications The form for Authorized Signatory Letter is provided in Attachment 1 of this letter. All Withdrawal Applications and its supporting documentation will be electronically sent via the Bank's system "Client Connection". E. Additional Instructions i The minimum value of applications for Reimbursement, Direct Payment and Special Commitment is EUR 100,0,)0 All disbursements, whether IPF or PforR will be jointly financed by IBRD: 64.3% (IDA 35.7%) The PIU may open a secondary bank account at an institution deemed acceptable by IDA. 1 Subsection 6.3 of Disbursement Guidelines Attachment 1- Form of Authorized Signatory Letter [Letterhead] Ministry of Finance [Street address] [City] [Country] [DATE] International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America 1 Attention: [Country Director] Dear [Country Director]: Re: IDA [Credit] [Grant] No. 7293-CG ( Accelerating Governance Institutional Reforms for Sustainable Services (AGIR) Program ) I refer to the [Credit] [Grant] Agreement ("Agreement") between the International Development Association ("Association")[, acting as implementing of the ] 3 and [ name of recipient] ("Recipient"), providing the above [Credit] [Grant]. For the purposes of Section 2.03 ofthe General Conditions as defined in the Agreement, any 4[one] of the persons whose authenticated specimen signatures appear below is authorized on behalf of the Recipient to sign Withdrawal Applications ("Application") [and applications for a special commitment] under this [Credit] [Grant]. For the purpose of delivering Applications to the Association, including by electronic means, [each] of the persons whose authenticated specimen signatures appears below is authorized on behalf of 1 Instruction to Association staff: please forward this letter to Country Lawyer for further processing (Recipient: please do not delete this note). 2 Instruction to the Recipient: use "Credit" or "Grant" as applicable. Please delete this footnote in final letter that is sent to the Association. 3 Instruction to the Recipient: add text in line with the Grant Agreement if applicable; if not applicable delete it. Please delete this footnote in final letter that is sent to the Associations 4 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 thisfootnote in final letter that is sent to the Association. 5 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. the Recipient, acting '[individually] '[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 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. [Name], [position] Specimen Signature: _ [Name], [position] Specimen Signature. [Name], [position] Specimen Signature: ---------- Yours truly, /signed/ 1 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 thisf ootnote in final letter that is sent to the Association. 2 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 thisfootnote in final letter that is sent to the Association. Attachment 2 - Sample Form for Advances [Ministry/Implementing Agency Letterhead] [Date] Loan Department- [name of Regional Center] The World Bank [address of regional center] Attention: [name of regional center team lead] Subject: Re: IDA [Credit] [Grant] -_ (name of Program/Operation) -Request for Advance Dear Sir/Madam, We refer to the Financing Agreement between the Association (the "Association") and [insert the name ofthe Recipient] (the "Recipient") providing for the above [Grant][Credit]. In accordance with the provisions of the Disbursement Letter and Schedule , Section _____ of the Financing Agreement, to support the implementation of the above Program and to facilitate the achievement of the planned results, we request an Advance in the amount of [insert amount] 1 [We request that the Advance be disbursed in [ currency requestedfor disbursement] equivalent to the Total Advance Requested above.]2 We acknowledge that the amount disbursed will be charged to the [Grant][Credit] Account in the currency of the Financing at the rate of exchange in effect at the time of disbursement. Sincerely, [insert Name, and Position] 1 The Proposed Advance should be in the currency of the DLI/DLR as set out in the disbursement table in the [Grant][Financing] Agreement, and in accordance with provisions in the Disbursement and Financial Information Letter. Normally, this is the currency of commitment of the [Grant][Credit]. 2 Use this text to designate the currency of the Advance if it should be different from the currency set out in the disbursement table in the [Grant][Financing] Agreement. 3 To be signed by a representative of the implementing/coordinating agency of the Recipient, OR by the person(s) authorized on behalf of the Recipient to sign applications for withdrawal under the Credit/Grant as set out in the applicable Authorized Signatory Letter. Attachment 3 - Statement of Expenditures SOE Model Template (incl. listing of prior review payments) Financier Payment made during the period from to Loan/Credit/Grant # Application # The following expenditures have been incurred during the retroactive financing period (please tick) Yes No Category # The following expenditures have been incurred before the closing date of the loan/credit/grant (please tick) Yes No Page # ONLY for the Designated Account 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Item Supplier's Brief Prior Contract# Contract Invoice Date of Total % Eligible Exchange Date of Amount No Name Description Review Currency Number Payment Amount of Financed Amount Rate Withdrawal Withdrawn of the (Contract?) (Client and Invoice from the from the from the Expenditure Connection Amount Covered by Bank (Col 9 x Designated Designated (YES or #for Prior Application 10) Account Account NO) Review (Original + Contracts) Amendment) (Net of (Col JJ/12) Retention) 0.00 0.00 TOTAL 0.00 Supporting documents for this SOE are retained at