22-Apr-2024 Date: _____________ H.E. Mr. Yerlan Nyssanbayev Minister of Ecology and Natural Resources Ministry of Ecology and Natural Resources Mangilik El Ave., Entrance 15 Astana, 010000 Republic of Kazakhstan Re: Grant No. TF0B9097 (Partnership for Market Implementation Project) Additional Instructions: Disbursement and Financial Information Letter Dear Mr. Nyssanbayev: I refer to the Letter Agreement (“Agreement”) between Republic of Kazakhstan (“Recipient”) and the International Bank for Reconstruction and Development and International Development Association (“Bank”), acting as implementing agency of the Partnership for Market Implementation Multi Donor Trust Fund, for the above-referenced project. The Standard Conditions, as defined in the Letter Agreement, provide that the Recipient may, from time to time, request withdrawals of Grant amounts from the Grant TF0B9097 (“Grant”) in accordance with the Disbursement and Financial Information Letter (“DFIL”), and such additional instructions as the Bank may specify from time to time by notice to the Recipient. The Standard 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 and may be revised from time to time. I. Disbursement Arrangements, Withdrawal of Grant Funds, and Reporting of Uses of Grant Funds The Disbursement Guidelines for Investment Project Financing, dated February 2017 (“Disbursement Guidelines”), are available on the 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. (i) Disbursement Arrangements The table in Schedule 1 provides the disbursement methods which may be used by the Recipient, information on registration of authorized signatories, processing of Withdrawal Applications (including the minimum value of applications and advances), instructions on supporting documentation, and frequency of reporting on the Designated Account(s). (ii) Withdrawal Applications (Electronic Delivery) 1 The Recipient shall through MENR deliver Withdrawal Applications (with supporting documents, “Applications”) electronically through the Bank’s web-based portal “Client Connection” at https://clientconnection.worldbank.org. This option will be effective after the officials designated in writing 1 Section 10.01 (c) of the General Conditions by the Recipient, who are authorized to sign and deliver Applications, have registered as users of “Client Connection.” The designated officials shall deliver Applications electronically by co mpleting Form 2380, which is accessible through “Client Connection.” By signing the Authorized Signatory Letter, which can be delivered manually or electronically, 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 these 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 Bank. By designating officials to use SIDC and 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 the Use of Electronic Means to Process Applications and Supporting Documentation, available in the Bank'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. II. Financial Reports and Audits 2 (i) Financial Reports The Recipient shall through MENR prepare and furnish to the Bank not later than forty-five (45) days after the end of each calendar semester interim unaudited financial reports (“IFRs”) for the Project covering the quarter.  Audits Each audit of the Financial Statements shall 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 shall be furnished to the Bank by the Recipient through MENR 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 public website at https://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 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, ______________________________ Andrei Mikhnev Country Manager for Kazakhstan 2 Section 5.09 of the General Conditions Attachments 1. Form of Authorized Signatory Letter 2. Form of Statement of Expenditure (SOE) 3. Form of Designated Account Reconciliation Statement (DARS) With copies: Alibek Kuantyrov, Minister Ministry of National Economy of the Republic of Kazakhstan Yerulan Zhamaubayev Minister Ministry of Finance of the Republic of Kazakhstan Yerzhan Sarsenbay Chairman of the Board JSC Zhasyl Damu under the Ministry of Ecology and Natural Resources of the Republic of Kazakhstan Astana, Republic of Kazakhstan Schedule 1: Disbursement Provisions Basic Information Country Republic of Kazakhstan Section 3.03 of the Article III of the Closing Date Recipient Republic of Kazakhstan Letter Agreement. Grant No. TF0B9097 Partnership for Market Disbursement Four (4) months after the Closing Name of the Project Implementation Project Deadline Date Date Disbursement Methods and Supporting Documentation Disbursement Methods Methods Supporting Documentation Direct Payment Yes Copy of records (e.g., invoices and receipts) Reimbursement Yes Statement of Expenditure (SOE) in the format provided in Attachment 2 of the DFIL Advance (into a Designated Yes Statement of Expenditure (SOE) in the format provided in Attachment 2 of the DFIL Account) DARS in the format provided in Attachment 3 of this letter Special Commitments Yes Copy of Letter of Credit (including pro forma invoice(s), if cited in the Letter of Credit) Designated Account Type Segregated Ceiling Fixed Financial Institution - To be established at a financial institution acceptable to the Bank Currency USD Name Frequency of Reporting Monthly Amount 300,000 Minimum Value of Applications (subsection 3.5) The minimum value of applications for Reimbursement, Direct Payment and Special Commitment is USD 50,000 equivalent. Authorized Signatures Withdrawal and Documentation Applications The form for Authorized Signatories Letter is provided in Attachment 1 of this letter The form for Authorized Signatory Letter is provided in Attachment 1 of this letter. The ASL and all Withdrawal Applications with their supporting documentation will be submitted electronically via the Bank’s “Client Connection” system. Attachment 1 – Form of Authorized Signatory Letter 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: Grant No. TF0B9097 (Partnership for Market Implementation Project) I refer to the Letter Agreement (“Agreement”) between the International Bank for Reconstruction and Development and the International Development Association (“Bank”), acting as implementing agency of the Partnership for Market Implementation Multi Donor Trust Fund, and Republic of Kazakhstan (the “Recipient”), providing the above Grant. For the purposes of Section 3.04 (b) of the Standard Conditions, as defined in the Agreement, any [3one] 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, 4[each] of the persons whose authenticated specimen signatures appears below is authorized on behalf of the Recipient, acting 5[individually] 6[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 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.] 3 Instruction to the Recipient when sending this letter to the Bank: Stipulate if more than one person needs to sign Applications, how many or which positions, and if any thresholds apply. Please delete this footnote in the final letter that is sent to the Bank. 4 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 the final letter that is sent to the Bank. 5 Instruction to the Recipient: Use this bracket if any one of the authorized persons may sign; if this is not applicable, please delete it. Please delete this footnote in the final letter that is sent to the Bank. 6 Instruction to the Recipient: Use this bracket only if several individuals must jointly sign each Application; if this is not applicable, please delete it. Please delete this footnote in the final letter that is sent to the Bank. 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] Attachment 2 – Form of the Statement of Expenditure Statement of Expenditure (SOE) for Goods, Non-Consulting Services and Consulting Services, Operating costs and Training 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 Total % Amount Currency Exchange Date of Remarks Name Number in Client Service Total Amount, Amount of Invoice Financed Eligible and Amount Rate Payment Connection (GO/WK/CS/TR/OC) and Date of Covered by Application by the for Paid from (for Prior Review / Brief Description Contract (Exclusive of Taxes, Grant Financing Designated Contracts) other than Withheld (5 x 6) Account (if Taxes) 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) US$/EUR _______________________ 2 LESS: TOTAL AMOUNT RECOVERED BY WORLD BANK - US$/EUR _______________________ 3. EQUALS PRESENT OUTSTANDING AMOUNT ADVANCED TO THE DESIGNATED ACCOUNT (NUMBER 1 LESS NUMBER 2) = US$/EUR _______________________ =========================================================== 4. BALANCE OF DESIGNATED ACCOUNT PER ATTACHED BANK STATEMENT AS OF DATE ______________________ US$/EUR _______________________ 5. PLUS: TOTAL AMOUNT CLAIMED IN THIS APPLICATION NO. _______________ + US$/EUR _______________________ 6. PLUS: TOTAL AMOUNT WITHDRAWN AND NOT YET CLAIMED REASON: ___________________________________ + US$/EUR _______________________ 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 + US$/EUR _______________________ 8. MINUS: INTEREST EARNED - US$/EUR _______________________ 9. TOTAL ADVANCE ACCOUNTED FOR (NO. 4 THROUGH NO. 9) = US$/EUR _______________________ 10. EXPLANATION OF ANY DIFFERENCE BETWEEN THE TOTALS APPEARING ON LINES 3 AND 9: ____________________________________________________________________________________________________ ____________________________________________________________________________________________________ 11. DATE: __________________________ SIGNATURE: _____________________________________ TITLE: ________________________________________