MARYAM SALIM Country Manager Cambodia 01-May-2024 ___________________ H.E. Dr. Aun Pornmoniroth Deputy Prime Minister Minister of Economy and Finance Ministry of Economy and Finance Street 92, Sangkat Wat Phnom Khan Daun Penh, Phnom Penh Kingdom of Cambodia Re: IDA Credit 6767-KH and Credit 7518-KH (Cambodia Road Connectivity Improvement Project) and (Additional Financing for the Cambodia Road Connectivity Improvement Project Additional Instructions: Disbursement and Financial Information Letter) Excellency: I refer to the Financing Agreement between the Kingdom of Cambodia (the “Recipient”) and the International Development Association (the “Association”) for the above-referenced Project. The General Conditions, as defined in the Financing Agreement, provide that the Recipient may from time-to-time request withdrawals of Financing amounts from the Financing 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 Project specific financial reporting requirements. This letter constitutes such Disbursement and Financial Information Letter (“DFIL”) and may be revised from time to time. This letter constitutes the first restatement of the Disbursement and Financial Information Letter dated August 5, 2020, to include the additional financing, and supersedes it in its entirety. I. Disbursement Arrangements, Withdrawal of Financing Funds, and Reporting of Uses of Financing Funds. 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 guidelines apply to the Financing is specified below. (i) Disbursement Arrangements  Provisions (Schedule 1). The table in Schedule 1 sets out the disbursement methods which may be used by the Recipient, and conditions, 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. Section 11.01 (c) of the General Conditions. The Recipient will electronically deliver applications (with supporting documents) through the Association’s web-based portal (https://clientconnection.worldbank.org) “Client Connection”. This option may be affected if 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 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 must prepare and furnish to the Association not later than forty-five (45) days after the end of each calendar semester, interim unaudited financial reports (“IFR”) for the Project covering the semester. (ii) 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 and related management letters for each such period must be furnished to the Association not later than six (6) months after the end of such period. III. Other Information. For additional information on disbursement arrangements, please refer to the Loan Handbook available on the Association’s public website 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 loan name and number, as applicable. Yours sincerely, ______________________________ Maryam Salim Country Manager Cambodia 9 Attachments 1. Form of Authorized Signatory Letter 2. Statement of Expenditure (SOE) 3. Designated account reconciliation statement With copies: Ministry of Economy and Finance (MEF) Street 92, Sangkat Wat Phnom Khan Daun Penh, Phnom Penh Kingdom of Cambodia Telephone: 855-23-724-664 Email: thirong_pen@mef.gov.kh Ministry of Public Works and Transport (MPWT) Corner Norodom Blvd and Street 106, Phnom Penh, Kingdom of Cambodia Telephone: (+855) (85/15/67)- 929 -090 Email: psovicheano@online.com.kh Website: www.mpwt.gov.kh Ministry of Rural Development (MRD) #771-773, Preah Monivong Blvd, Sangkat Boeing Trabek, Khan Chamkarmon, Phnom Penh, Kingdom of Cambodia Telephone: (855) 23 884 639 Email: darongchan@gmail.com; Website: www.mrd.gov.kh Schedule 1 : Disbursement Provisions Basic Information Country The Kingdom of Cambodia Closing Date Section III.B.2 and Section III.B.3 Recipient The Kingdom of Cambodia of Schedule 2 to the OF Credit and IDA AF Credit Financing Agreement Credit Grant/Credit respectively. 6767-KH Number Name of the Project Cambodia Road Connectivity Disbursement Four (4) months after the closing and Credit Improvement Project and Additional Deadline Date date. 7518-KH Financing for the Cambodia Road Subsection 3.7 ** Connectivity Improvement Project Disbursement Methods and Supporting Documentation Disbursement Methods Methods Supporting Documentation Section 2 (**) Subsections 4.3 and 4.4 (**) Direct Payment Yes Copy of records Reimbursement Yes  Statement of Expenditure (SOE) in the format provided in Attachment 2 of the DFIL Designated Account Yes  Statement of Expenditure (SOE) in the format provided in Attachment 2 of the DFIL  Designated account reconciliation statement with copy of bank statement as in the attachment 3 Special Commitments Yes Copy of Letter of Credit Designated Account (Sections 5 and 6 **) Pooled for OF and AF: 2 designated accounts as follows: Fixed Type DA1 managed by MPWT. Ceiling DA2 managed by MRD. Financial Institution - National Bank of Cambodia USD Currency Name Frequency of Reporting Quarterly DA 1: 2,000,000 Amount Subsection 6.3 (**) DA 2: 2,000,000 Minimum Value of Applications (subsection 3.5) The minimum value of applications for Reimbursement, Direct Payment and Special Commitment is USD 200,000 Authorized Signatures (Subsection 3.1 and 3.2 **) The form for Authorized Signatories Letter is provided in Attachment 1 of this letter Withdrawal and Documentation Applications (Subsection 3.3 and 3.4 **) The form for Authorized Signatory Letter is provided in Attachment 1 of this letter. All Applications and its supporting documentation, and Authorized Signatory Letter will be electronically sent via the Bank’s system “Client Connection”. Additional Instructions Disbursement under category 3 – Emergency Response: This Disbursement and Financial Information Letter may not be fully adapted to the disbursement of funds allocated from time to time to Category 3 of the disbursement table included in the Section III.A of Schedule 2 of the OF to the Financing Agreement. The Disbursement and Financial Information Letter will be revised, or a supplemental letter issued, if needed, when funds are allocated to category 3 of the OF. ** Sections and subsections 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 10th Floor, Exchange Square Building No.19-20, Street 106, Sangkat Wat Phnom Phnom Penh, Kingdom of Cambodia Re: Financing No. CREDIT NUMBER 7518-KH (Cambodia Road Connectivity Improvement Project) Attention: [Name], Country Manager I refer to the Financing Agreement (“Agreement”) between the International Development Association (the “Association”), and The Kingdom of Cambodia (the “Recipient”), dated _______, providing the above Financing. For the purposes of Section 2.03 of the General Conditions as defined in the Agreement, any 1[one] 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, including by electronic means, 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 Association. This Authorization replaces and supersedes any Authorization currently in the Association records with respect to this Agreement. [Name], [position] Specimen Signature: ____________________ 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 this footnote in final letter that is sent to the 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 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 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 Association. [Name], [position] Specimen Signature: ____________________ [Name], [position] Specimen Signature: ____________________ Yours truly, / signed / ______________ Attachment 2 – Statement of Expenditures Attachment 3