LILIA BURUNCIUC Country Director Caribbean Country Management Unit Latin America and the Caribbean Region 01-Feb-2024 ____________________ His Excellency Dr. Irving McIntyre Minister of Finance Ministry of Finance, Economic Development, Climate Resilience, and Social Security 5th Floor, Financial Centre, Kennedy Avenue Roseau Commonwealth of Dominica Re: IDA Credit 7487-DM (Commonwealth of Dominica – Geothermal Risk Mitigation II Project) Additional Instructions: Disbursement and Financial Information Letter Excellency: I refer to the Financing Agreement between the Commonwealth of Dominica (“Recipient”) and the International Development Association (“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 Credit amounts from the Credit Account in accordance with the Disbursement and Financial Information Letter (“DFIL”), 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 and may be revised from time to time. I. Disbursement Arrangements, Withdrawal of Credit Funds, and Reporting of Uses of Credit] Funds The Disbursement Guidelines for Investment Project Financing, dated February 2017 (“Disbursement Guidelines”), are available on 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. (i) Disbursement Arrangements General 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 signatories, processing of Withdrawal Applications (including the minimum value of applications and processing of advances), instructions on supporting documentation, and frequency of reporting on the Designated Account(s). (ii) Withdrawal Applications (Electronic Delivery) 1 The Recipient shall deliver Withdrawal Applications (with supporting documents, “Applications”) electronically through the Association’s web-based portal “Client Connection” at https://clientconnection.worldbank.org. This option will be effective after the officials designated in writing by the Recipient, who are authorized to sign and deliver Applications, have registered as users of “Client 1 Section 10.01 (c) of the General Conditions 3rd Floor, Courtleigh Corporate Center, 6 St. Lucia Avenue, Kingston 5, Jamaica  Phone 1 (876) 960-0459 Email : lburunciuc@worldbank.org -2- Connection.” The designated officials shall deliver Applications electronically by completing 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 Association 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 Association. 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 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. II. Financial Reports and Audits 2 (i) Financial Reports The Recipient shall through DGDC prepare and furnish to the Association not later than forty-five (45) days after the end of each calendar semester interim unaudited financial reports (“IFRs”) for the Project covering the semester. • Audits Each audit of the Financial Statements shall cover the period of one (1) fiscal year of the Borrower, 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 by the Recipient DGDC 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 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 Authorized Signatory Letters and Withdrawal Applications, monitor the near real-time status of the financing 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, INTERNATIONAL DEVELOPMENT ASSOCIATION ______________________________ Lilia Burunciuc Country Director Caribbean Country Management Unit Latin America and the Caribbean Region 2 Section 5.09 of the General Conditions -3- Attachments 1. Form of Authorized Signatory Letter [Interim unaudited Financial Report (IFR) – Current IFR format and content currently being utilized for P162149] With copy: Dominica Geothermal Development Company Limited 18 Kennedy Avenue Roseau Commonwealth of Dominica info@geodominica.com -4- Schedule 1: Disbursement Provisions Basic Information Country Commonwealth of Dominica Section III B.2 of Schedule 2 to the IDA Closing Date Borrower/ Commonwealth of Dominica Loan Agreement. Credit 7487-DM Dominica Geothermal Risk Mitigation Disbursement No. Name of the Project II Project Deadline Date Four months after the closing date Disbursement Methods and Supporting Documentation Disbursement Methods Methods Supporting Documentation Direct Payment Yes Copy of records (e.g., invoices and receipts) Reimbursement Yes Interim unaudited Financial Report (IFR) in the format provided in Attachment 2 of the DFIL Advance (into a Designated Yes Interim unaudited Financial Report (IFR in the format provided in Attachment 2 of the DFIL Account) Special Commitments Yes Copy of Letter of Credit Designated Account Pooled; only proceeds from this IDA credit and RETF C3491 Type may be pooled in this Designated Account (DA) – the DA Ceiling Variable managed by DGDC Financial Institution - Bank of Dominica Currency USD Name Cash-flow forecast for 6 months as Frequency of Reporting Semi-annually Amount provided in the IFRs Minimum Value of Applications (subsection 3.5) The minimum value of applications for Reimbursement, Special Commitments and Direct Payment is USD 300,000 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 Association’s “Client Connection” system. Additional Information N/A Other N/A -5- [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 Attention: [Country Director] 3 Dear [Country Director]: Re: IDA Credit No. _______-___ (name of Project) I refer to the [Credit] [Grant] Agreement (“Agreement”) between the International Development Association (“Association”)[, acting as implementing of the ] 4 and [name of recipient] (“Recipient”), providing the above [Credit] [Grant]. For the purposes of Section 2.03 of the General Conditions as defined in the Agreement, any 5[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, 6 [each] of the persons whose authenticated specimen signatures appears below is authorized on behalf of the Recipient, acting 7[individually] 8[jointly], to deliver Applications and evidence in support thereof on the terms and conditions specified by the Association. 3 Instruction to Association staff: please forward this letter to the Country Finance Officer for further processing (Recipient: please do not delete this note). 4 Instruction to the Recipient: add text in line with the Grant Agreement if applicable, if not applicable delete it. Please delete this footnote in the final letter that is sent to the Associations 5 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 the final letter that is sent to the Association. 6 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 Association. 7 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 Association. 8 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 Association. -6- 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 / ______________ [Position] 9 -7- Interim unaudited Financial Report (IFR) [Current IFR format and content currently being utilized for P162149]