The World Bank E-32 Agargaon, Sher-e-Bangla Nagar, Dhaka 1207, Bangladesh Phone: (880-2) 5566-7777 Facsimile: (880-2) 5566-7778 Abdoulaye Seek Country Director for Bangladesh and Bhutan 28·04 -----' 2023 Ms. Sharifa Khan Secretary Economic Relations Division Ministry of Finance Dhaka, Bangladesh Dear Secretary Khan: Re: IDA Credit 7300-BD Sustainable Microenterprise and Resilient Transformation Additional Instructions: Disbursement and Financial Information Letter. I refer to the Financing Agreement between People's Republic of Bangladesh ("Recipient") and the International Development Association ("Association") for the above-referenced Project, dated 28·4·lo2 ? The General Conditions, as defined in the Financing Agreement, provide that the Association may issue additional instructions regarding the withdrawal ofthe proceeds of IDA Credit 7300- BD ("Financing"), and specify certain financial management reporting and audit requirements. This letter ("Disbursement and Financial Information Letter" or "DFIL"), as revised from time to time, constitutes such additional instructions. The Disbursement Guidelines f or 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 this Disbursement and Financial Information Letter, and the manner in which the provisions in the guidelines apply to the Financing is specified below. I. Disbursement Arrangements, Withdrawal and Reporting of Financing Proceeds. (i) Disbursement Arrangements: • General Provisions (Schedule 1 ). 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. Refer to section 11.01 (c) of the General Conditions: • The Association may permit the Recipient to electronically deliver applications (with supporting documents) through the Association's web-based portal (https://clientconnection.worldbank.org) "Client Connection". This option may be effected if: (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 may deliver Applications electronically by completing the Form 2380, which is accessible through "Client Connection". The Recipient may continue to exercise the option of preparing and delivering Applications in paper form. The Association reserves the right and may, in its sole discretion, temporarily or permanently disallow the electronic delivery of Applications by the Recipient. 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://worldbank.org and "Client Connection"; and (b) to cause such official to abide by those terms and conditions. II. Financial Reports and Audits. (i) Financial Reports. The Recipient shall prepare and furnish to the Association through Palli Karma- Sahayak Foundation (PKSF) not later than sixty (60) days after the end of each fiscal quarter, Interim Unaudited Financial Report (IUFR) for the Project covering the fiscal quarter. (ii) 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 Association through PKSF 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 Association's website (http://www.worldbank.org/) and "Client Connection". 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 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 using the above reference. Sincerely, INTERNATIONAL DEVELOPMENT ASSOCIATION A- Abdoulaye Seek Country Director for Bangladesh and Bhutan South Asia Region Attachments I .Form of Authorized Signatory Letter 2.Format of Interim Unaudited Financial Report Schedule 1: Disbursement Provisions Basic Information Country People's Republic of Bangladesh Closing Date Section 111.B.2 of Schedule 2 to the Recipient People's Republic of Bangladesh Financing Agreement. Credit IDA 7300- Name of the Project Sustainable Microenterprise and Disbursement Four months after the Closing Date. Number BD Resilient Transformation Project Deadline Date Subsection 3. 7 kk Disbursement Methods and Supporting Documentation Methods Available Disbursement Methods Supporting Documentation Section 2() Subsections 4.3 and 4.4 (*) Yes for Category 4 of the table in Schedule 2 Section III.A of the Financing Agreement Direct Payment ("Withdrawal Table") Copy of Records - invoice Reimbursement Yes Interim Unaudited Financial Report (Attachment 2) Interim Unaudited Financial Report (Attachment 2) Advance Yes Copy of bank statements Yes for Category 4 of the Copy of Letter of Credit Special Commitment Withdrawal Table Proforma Invoice, if cited in the Letter of Credit Designated Account (Sections 5 and 6) Type Segregated to be operated by PKSF Ceiling Variable Financial Institution Nationalized commercial bank acceptable to the Currency BDT -Name Association Frequency of Reporting Quarterly Amount Forecast for two quarters as per the Subsection 6.3 (**) IUFR Minimum Value of Applications (subsection 3.5) The minimum value of applications for Reimbursement, Direct Payment and Special Commitment is USD 1,000,000 equivalent. Authorized Signatures (Subsection 3.1 and 3.2 ) The form for Authorized Signatories Letter is provided in Attachment 1 ofthis letter Withdrawal and Documentation Applications (Subsection 3.3 and 3.4) Authorized Signatories Letter: Withdrawal and Documentation Applications: The World Bank The World Bank Plot E32, Agargaon No. 11, Taramani Main Road Sher-e Bangla Nagar Taramani, Chennai 600 113 G.P.O. Box 97 India Dhaka 1207, Bangladesh Attention: Team Lead, WFACS Attention: Country Director for Bangladesh and Bhutan Additional Instructions (i) All payments for expenditures claimed under this Financing must be made using the banking system, except expenditures paid using the petty cash system following the Recipient's existing policy. The petty cash limit as per the Recipient's existing policy is BDT 100,000. (ii) In case of Category 1 of the Withdrawal Table - Grants under Parts 1.1, Part 1.2 and Pat 1.3 of the Project, paid and incurred expenditures reported by Partner Organizations (POs) would be included in the IUFR. (iii) In case of Category 2 of the Withdrawal Table Lines of Credit under Part 2.1 of the Project and Category 3 of the Withdrawal Table Lines of Credit under Part 2.2 of the Project, paid and incurred expenditures reported of the Microenterprises would be included in the IUFR. *Sections and subsections indicated relate to the Disbursement Guidelines for Investment Project Financing dated February 2017. Attachment 1- Form of Authorized Signatory Letter [Letterhead] Ministry of Finance [Street address] [City] [Country] [DATE] The World Bank Plot E32, Agargaon Sher-e Bangla Nagar G.P.O. Box 97 Dhaka 1207, Bangladesh Attention: Country Director for Bangladesh and Bhutan Re: IDA Credit 7300-BD (Sustainable Microenterprise and Resilient Transformation) I refer to the Financing Agreement ("Agreement") between the International Development Association ("Association") and People's Republic of Bangladesh ("Recipient"), dated , providing the above Financing. For the purposes of Section 2.03 of the General Conditions as defined in the Agreement, any [one] 1 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 Financing. For the purpose of delivering Applications to the Association, [each]2 of the persons whose authenticated specimen signatures appears below is authorized on behalf of 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 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 thisfootnote in final letter that is sent to the Association. 2 Instruction to the Recipient: Stipulate ifmore than one person needs to jointly sign Applications, if so, please indicate the actual number. Please delete thisf ootnote 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 thisfootnote 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 thisfootnote in final letter that is sent to the Association. 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's records with respect to this Agreement. [Name], [Position] Specimen Signature. [Name], [Position] Specimen Signature: ---------- [Name], [Position] Specimen Signature. Yours truly, /signed/ [Position] 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 thisfootnote in final letter that is sent to the Association. 6 Instruction to the Recipient: In case signatory(ies) are authorized separately for part(s)/category(ies) included in the Financing Agreement, the authorized signatories letter may make reference to the relevant part(s)/category(ies) in the subject line. Please delete thisfootnote in final letter that is sent to the Association. Attachment 2- Format of IUFR Project IDA Credit No. XXXX-BD Project Sources & Uses of Funds For the quarter ended XX MONTH to XX MONTH, 202X (BDT in Million) Current quarter Year to Date Cumulative to Date Particulars IDA PKSF Total IDA PKSF Total IDA PKSF Total Opening Cash Balance: Project Bank Account (Advance to POs) I DA Designated Account Opening Balance Total Sources of Funds IDA Funds-DA PKSF Funds Sources of Funds Total Total Resources Available Less: Uses of Funds CATEGORY 1: CATEGORY 2: CATEGORY 3: CATEGORY 4: Uses of Funds Total Closing Balance: Project Bank Account (Advance to POs) IDA Designated Account Closing Balance Total Project IDA Credit No. XXXX-BD Uses of funds by project Actvities For the quarter ended xx month - xx month, 202x BDT in Million) Actual Planned Variance PAD Life of the Current Cumulative Current Cumulative Current Cumulative Year to Date Year to Date Year to Date Project S quarter to date quarter to date quarter to date Project Components Years Component 1 Component 2 Component3 Grand Total Project IDA Cr. No. Designated Account (DA) Reconciliation Statement For the quarter In Local Currency Unit (BDT) Total SI. No. Description AmountTk. Amount Part- 1 1. Cumulative Advance to end of current reporting quarter 2. Less.Cumulative expenditure to end of last reporting quarter 3. Outstanding Advances to be Accounted PART-2 4. Opening DA Balance as at beginning of the Reporting Period Opening Project Account (Advance to Pas) Balance as at beginning of the Reporting Period Add/Subject: Interest received 5. Add. Advance during the quarter 6. Sub Total of Advances And Adjustments 7. Less. Refund from DA during the quarter 8. Outstanding Advances to be Accounted 9. Closing DA Balance at the end of Current Reporting Period 10 Add. Advance to POs and MEs outstanding amount 12 Add/Subject: Cumulative Adjustments (if Any) 13 Add:Amount of eligible expenditures for Current Disbursement Period 14 Sub Total of Advances And Adjustments 15 Less.Interest Earned (if Credited into DA) Total Of Account for Project: IDACr. No. Project Cash Forecast Statements For the quarter ended (a) (b) (e) I DA eligible Cash total cash Description/Category requirements requisition Cash requirements for the next to for next 6 for the next quarter next quarter months Category as per Financing Agreement Total IDA Financed ~ . . Statement of Required Advance to Designated Account Particulars BDT Projected IDA eligible expenditure for next six months Less. Closing DA Balance after Adjustments Less. Advance to POs/MEs (Break down attached) Less. Closing Cash In Hand Less. Amount to be paid through Direct Payment of Special Commitment Requested Amount to be Advanced to DA Project Statement of contracts subject to Bank's Prior Review IDA Credit No. XXXX-BD For the quarter ended XX MONTH- XX MONTH, 202X Amount paid till the end of the Delivery date Contract/Packag Signing date of Total invoiced Quarter. Cumulative Description of the Contract Contractor's Name Contract amount e No the Contract amount Expenditure. GOB Actual delivery IDA Fund Total Fund date Project IDA Credit No. XXXX-BD Statement of contracts not subject to Bank's Prior Review and Operating costs For the quarter ended XX MONTH- XX MONTH, 202X Amount paid Disbursement category and description Contract Value Amount invoiced from DA Total Project: IDA Credit No. XXXX-BD List of advance provided to POs/Mes For the quarter ended. 202X Exp. reported/amount Net amount Cumulative amount SI. No. Name of POs/MEs Advance Paid adjusted of advance paid to PO during this quarter Total