27-Jul-2023 Date: _____________ Ms. Bana Kaloti Regional Director Middle East United Nations Office for Project Services Middle East Region Operational Hub in Amman Deir Ghbar Al-Shakereen Street P.O. Box 941655 Amman 11194 Jordan Re: Grant No. TF0C1720 (Second Additional Financing for Yemen Integrated Urban Services Emergency Project II) Additional Instructions: Disbursement and Financial Information Letter Dear Ms. Kaloti, I refer to the Grant Agreement (“Agreement”) UNITED NATIONS OFFICE FOR PROJECT SERVICES for the benefit of the Republic of Yemen (“Recipient”) and INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVLOPMENT/INTERNATIONAL DEVELOPMENT ASSOCIATION (“Bank”), acting as Administrator of the Global Partnership for Result-Based Approaches Trust Fund, for the above-referenced project. The Standard Conditions, as defined in the Grant Agreement, provide that the Recipient may, from time to time, request withdrawals of Grant amounts from the Grant No. TF0C1720 (“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 1 Section 3.01(c) of the Standard Conditions The Recipient shall 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 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 prepare, on a semi-annual basis, interim unaudited financial reports related to the Project, in accordance with accounting standards established pursuant to the Financial Regulations and in its standard format for such reports. The first said interim unaudited financial reports shall be furnished to the Association no later than forty-five (45) days after the end of the six (6) months after the Effective Date and, shall cover the period from the incurrence of such six (6) months period; thereafter, each interim unaudited financial report shall be furnished to the Association not later than forty-five days after each subsequent semester, and shall cover such six (6) months period. (ii) Audits The audit of the Project and any additional due diligence activities as agreed by the Recipient and the Association shall be carried out in accordance to the provisions set forth under Section II.B.4 of Schedule 2 to the Grant Agreement. 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 2 Section 2.07 of the Standard Conditions above, please contact the Bank by email at askloans@worldbank.org using the above reference. Yours sincerely, ______________________________ Sherif Bahig Hamdy Acting Country Director Egypt, Yemen and Djibouti Middle East and North Africa Region Attachments 1. Form of Authorized Signatory Letter 2. Form of Interim unaudited Financial Report (IFR)] Schedule 1: Disbursement Provisions Basic Information Country Republic of Yemen Section IV.B.5 of Schedule II to the Recipient United Nations Office for Project Closing Date Grant Agreement. Services Grant No. TF0C1720 Second Additional Financing for Disbursement Name of the Project Yemen Integrated Urban Services Deadline Date Four months after the closing date Emergency Project II Disbursement Methods and Supporting Documentation Disbursement Methods Methods Supporting Documentation Direct Payment No Not Applicable Reimbursement No Not Applicable Advance (into a Designated Yes Interim unaudited Financial Report (IFR in the format provided in Attachment 2 of the DFIL) Account) Special Commitments No Not Applicable Advance (Sections 5 and 6 **) All advances made by the Association will be deposited into an Variable, forecast for 6 months of official UNOPS bank account in accordance with the provisions implementation as provided in the Interim Type Ceiling of applicable provisions of the Financial Regulations and Rules Financial Report of UNITED NATIONS OFFICE FOR PROJECT SERVICES Financial Institution - Not Applicable USD Currency Name Frequency of Reporting Quarterly Amount Not Applicable Minimum Value of Applications (subsection 3.5) Not Applicable. 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. The ASL and all Withdrawal Applications with their supporting documentation will be submitted electronically via the Bank’s “Client Connection” system. Other Undertakings 1. The Recipient shall not transfer or channel any of the proceeds of the Financing to and/or through any central government entities in the Republic of Yemen. 2. The Recipient shall not, without the express written consent of the Association, transfer or channel any of the proceeds of the Financing to public officials or employees employed by any central government entities in the Republic of Yemen. ** Sections and subsections relate to the “Disbursement Guidelines for Investment Project Financing”, dated February 2017 Attachment 1 – Form of Authorized Signatory Letter [Letterhead] UNOPS [Street address] [City] [Country] [DATE] The World Bank 1818 H Street, N.W. Washington, D.C. 20433 United States of America Attention: [Country Director] 3 Dear [Country Director]: Re: Grant No. ______ (name of Project) I refer to the [Grant] [Letter] Agreement (“Agreement”) between the [International Bank for Reconstruction and Development/International Development Association] (“[Bank”])], acting as [an implementing agency of the Global Environmental Facility] [administrator of the Global Partnership on Output-based Aid] [administrator of the name of the trust fund], and [name of recipient] (the “Recipient”), providing the above Grant. For the purposes of Section 3.04 (b) of the Standard Conditions, as defined in the Agreement, any [ 4 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 Grant. For the purpose of delivering Applications to the Bank, 5[each] of the persons whose authenticated specimen signatures appears below is authorized on behalf of the Recipient, acting 6[individually] 7[jointly], to deliver Applications and evidence in support thereof on the terms and conditions specified by the Bank. 8 [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 3 Instruction to Bank staff: please forward this letter to the Country Lawyer for further processing (Recipient: please do not delete this note). 4 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. 5 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. 6 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. 7 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. 8 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 this footnote in the final letter that is sent to the Bank. 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.] This Authorization replaces and supersedes any Authorization currently in the Bank records with respect to this Agreement. Name Position Email ID [Signatory Name] [Title] [Email] Specimen Signatures Signatory Name Signature 1 Signature 2 Signature 3 [User Name] [User Name] Yours truly, / signed / ______________ [Position] 9 9 Instruction to Bank staff: please forward this letter to the Country Lawyer for further processing (Recipient: please do not delete this note). Attachment 2: Interim Unaudited Financial Statement Interim Financial Reports 1A Sources and Uses of Funds Statement by components/ activities For the period ending __________ Actual Planned Variance Year to Date Cumulative Year to Date Cumulative Current Period Current Period Current (as at (as at (as at (as at Year to Date Cumulative (as at xx/xxxx) (as at xx/xxxx) Period xx/xxxx) xx/xxxx) xx/xxxx) xx/xxxx) Sources of Funds IDA Funds Received Interest Earned Forex gain/loss Total Funds Received Expenditures Component 1: Service Restoration Sub-component 1.1Tertiary Municipal Services and Solid Waste Management (a) Solid waste management (b) Neighborhood sanitation c) Rain water drainage (d) Stone paving of neighborhood streets e) Rehabilitation of local parks and green spaces Sub-total 1.1 Sub-component 1.2 Urban Water and Sanitation (a) replacement of needed assets (b) rehabilitation of pipes, water tanks, and existing wells (c) installation of decentralized small- and medium-sized WWTPs (d) service delivery maintenance support to LCs (e) awareness campaign on utility payment through citizen engagement (f) support for the establishment of private tanker filling stations and associated accreditation (g) support to public and private capacity for water quality monitoring and testing (h) creation of a directory of service providers (i) sector specific analytical work Sub-total 1.2 Sub-component 1.3 Urban Roads Sub-component 1.4 Electricity for critical services (a) rehabilitation of existing conventional (diesel) generation systems (b) installation of new off-grid generation using diesel, renewable energy (c) restoration of fuel supply (d) solar PV and light-emitting diode (LED) street lights (e) energy efficiency improvements (d) …… sub-total 1.4 Subcomponent 1.5: Housing Sector Component 2: Implementation Support and Capacity Development Subcomponent 2.1: Project Implementation and Management Support (a) Recipient’s Indirect Costs (b) Recipient’s Direct Costs for management and supervision c) Project monitoring, evaluation and coordination at city level (d) GIS based expenditure tracking and activity information dissemination system e) Independent audits of Project activities f) Establishment of a Grievance Redress Mechanism (GRM) system sub-total 2.1 Subcomponent 2.2: Technical Assistance (a) Capacity building activities for local agencies (b) Citizen engagement and communication sub-total 2.2 Sub-component 2.3 Third Party Monitoring Sub-component 2.4: Solid waste management (a) Result-Based Payments (b) Verification of RBCs Component 3: Contingent Emergency Response Total Expenditures Cash Receipts less Expenditures Opening Cash Balance Ending Cash Balance Interim Financial Reports 1B Uses of Funds Statement by category of expenditures For the period ending __________ Actual Amount Actual Category # Disbursement Category Current Period Year to Date Cumulative Committed Expenditures Expenditures Expenditure 1 Results-Based Payments under Part 2.4.(a) of the Project goods, non-consulting services, consultants’ services, 2 Training and Operating Costs for Part 2.2, Part 2.3 and Part 2.4 of the Project 3 Indirect Costs Total Expenditures Interim Financial Reports 1E Reconciliation for period ending xxxx Project Account Amount advanced by World Bank WA#1 WA#2 WA#3 WA#4 WA#5 WA#6 WA#7 Expenditures paid - Outstanding advances Closing balance Date Names and Titles of Representatives Signatures Client Connection Reconciliation Client connection Difference explanation and Last IFR cumulative Differences This IFR current Difference after this IFR Description cumulative proposed reconciliation USD USD USD USD USD measures Cumulative Receipts per client 0 0 0 0 0 connections Disbursement per Category Category 1 0 0 0 0 0 Category 2 0 0 0 0 0 Category 3 0 0 0 0 0 Balance 0 0 0 0 0