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 Ms. Sharifa Khan 27 h,a Secretary Economic Relations Division Ministry of Finance Dhaka, Bangladesh Dear Secretary Khan: Re: IDA Credit 7167-BD Resilient Infrastructure for Adaptability and Vulnerability Reduction Project 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 • 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 7167- 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 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 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. () 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 11.0l(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 not later than forty-five (45) 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 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 K Abdoulaye Seek Country Director for Bangladesh and Bhutan South Asia Region Attachments l .Form of Authorized Signatory Letter 2.Format ofIUFR Schedule 1: Disbursement Provisions Basic Information Country People's Republic of Bangladesh Closing Date Section III.B.2 of Schedule 2 to the Recipient People's Republic of Bangladesh Financing Agreement. Credit IDA 7167- Name of the Project Resilient Infrastructure for Disbursement Four months after the closing date. Number BD Adaptability and Vulnerability Deadline Date Reduction Project Subsection 3. 7 kk Disbursement Methods and Supporting Documentation Methods Available Disbursement Methods Supporting Documentation Section 2 () Subsections 4.3 and 4.4 () Direct Payment Yes Copy of Records - invoice Reimbursement Yes Interim Unaudited Financial Report (IUFR) (Attachment 2) Interim Unaudited Financial Report (Attachment 2) Advance Yes Copy of bank Statements Copy of Letter of Credit Special Commitment Yes Proforma Invoice, if cited in the Letter of Credit Designated Account (Sections 5 and 6) Type Segregated to be operated by Local Government Ceiling /Variable Engineering Department Financial Institution Nationalised commercial bank acceptable to the Currency BDT -Name Association Frequency of Reporting Quarterly Amount Forecast for two quarters Subsection 6.3 () as provided in the 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 **) Theformfor 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 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) Supporting documentation requirements for reporting on use of financing proceeds under Category 2 of the table in Schedule 2 Section III.A of the Financing Agreement ("Withdrawal Table") -Emergency Expenditures under Part 4 of the Project would be provided in a revised Disbursement and Financial Information letter, if funds are allocated to Category 2 *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 Re: IDA Credit 7167-BD (Resilient Infrastructure for Adaptability and Vulnerability Reduction Project) I refer to the Financing Agreement ("Agreement") between the International Development Association ("Association") and People's Republic ofBangladesh ("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]3 [jointly]4, 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 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. 3Instruction 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. 4Instruction 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.]5 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. 6Instruction 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 oflnterim Unaudited Financial Report IDA Credit No. XXXX-BD 1 A. Project Sources & Uses of Funds For the Reporting Quarter: xxxxx - xxXxxx ,202x¥ In Local Currency Unit: BDT ,-- - --- ----------, ,___ Current Quarter Year to Date Cumulative to Date PAD Life of the IDA Project GOB TOTAL IDA GOB TOTAL IDA GOB TOTAL (in Million USD) RPA DP Opening Cash Balance Project Bank ACCOUNT (GOB) IDA Designated Account Project Bank ACCOUNT Opening Balance Total Add: Sources of funds IDA Funds Government Funds Sources of Funds Total Total Receipts Less: Uses of Funds Category as per Financing Agreement Operating Costs Use of Funds Total Closing Cash Balance IDA Designated Account Project Bank Account Project Bank Account(GOB) Closing Balance Total Resilient Infrastructure for Adaptation and Vulnerability Reduction Project IDA Credit No. XXXX-BD 1 B. Uses of Funds by Project Components For the Reporting Quarter: XXXXX- XXXXX, 202X In Local Currency Unit: BDT Actual Planned Variance PAD (BOT in Million) (BOT in Million) (BOT in Million) Life of Project Components Cumulati the Current Year-To Current Year-To Cumulativ Current Year-To Cumulative ve To- Project Quarter Date Quarter Date e To-Date Quarter Date To-Date Date (US$ million) 1. Resilient Flood Shelters and Community Infrastructure 2. Strengthening Capacity for Disaster Preparedness and Response and Technical Assistance 3. Project Management, Design and Supervision, Monitoring and Evaluation Total IDA/GOB Financed 1C. Project Expenditure by Category For the Reporting Quarter: :XXXXX- :XXXXX 201X l IDA Eligible Expenditure BDT in Million Category For the Quarter Cumulative to date Category Description No Total Paid form Paid from Paid from Total Paid form DA Cumulative to DA GoB GoB date Category as per Financing Agreement Resilient Infrastructure for Adaptation and Vulnerability Reduction Project Designated Account (DA) Activity Statement For the Reporting Period: Project Name: Resilient Infrastructure for Adaptation and Vulnerability Reduction Project IBRD/IDA Loan No.: Deposit Bank: AC No: . Currency of DA: PART I 1. Cumulative advances to end of current reporting period 0 2. Cumulative expenditures to end of last reporting period 0 3. Outstanding Advance to be accounted (line 1 minus line 2) 0 PARTII 4. Opening DA balance at beginning of reporting period (as of ) 0 5. Add/subtract: Cumulative adjustments (if any) 0 6. Advances from World Bank during reporting period 0 7. Add lines 5 and 6 0 8. Outstanding advances to be accounted for (add line 4 and line 7) 0 9. Closing DA balance at end of current reporting period (as of ) #REF! 0 10. Add/subtract: Cumulative adjustments (if any) 0 11. Expenditures for current reporting period 0 12. Add line 10 and line 11 0 13. Add line 9 and line 12 0 14. Difference (if any) (line 8 minus line 13) 0 Resilient Infrastructure for Adaptation and Vulnerability Reduction Project Credit No; XXXX-BD 1-E. Projected Cash Forecast Statements BDT in Million In Taka (a) (b) (c) Cash Cash IDA eligible total cash Disbursement Category Requirements for Requirements for requisition for the next quarter the next auarter 6 months XXXXX -XXXXX 201X XXXXX - :XXXXX, 201X XXXXX -XXXXX 201X aegory as per rmnancmng Agreement --.'al. --1'a ---- 1-+'1. Total IDA Statement of Required Advance to Special Account BDT in Million Particulars BDT Projected IDA eligible expenditure for the next six months Less: Closing DA Balance Less: Advance Received to DA Account /to be paid using Direct Payment/Special Commitment/Reimbursement disbursement methods Less: Unadjusted Advance Required amount for next six month Requested amount to be advanced to DA Resilient Infrastructure for Adaptation and Vulnerability Reduction Project IDA Credit No. XXXX-BD 2 A. Designated Account Expenditure for Contracts/Subject to prior Review (Summary) For the Reporting Quarter: :XXX:XX - :XXX:XX 201X Amount in BDT Disbursement Contract No Package Selection Contract Contract Amount Invoice No Amount Paid Contract Balance Contractor's Name Category & Date No Method Currency Value Invoiced &Date from DA Carried Forward Total Resilient Infrastructure for Adaptation and Vulnerability Reduction Project 2B. Designated Account Expenditure for Contracts/ Not Subject to prior Review (Summary) For the Reporting Quarter: XXXXX- XXXXX,201X Amount Paid from Disbursement Category and Description Contract Value Amount Invoiced Designated Account Total