ALBERT G. ZEUFACK Country Director AECC2 09-Oct-2023 Date: _______________ H.E. Ginesio Valentim Afonso da Mata Minister of Planning, Finance, and the Blue Economy Ministry of Planning, Finance, and the Blue Economy Agua Grande Caixa Postal Nº168 São Tomé Republic of São Tomé and Príncipe Re: Grant No. TF0C2226-ST (Third Additional financing to the STP COVID-19 Emergency Response Project) Additional Instructions: Disbursement and Financial Information Letter Excellency: I refer to the Grant Agreement (“Agreement”) between the International Development Association (“World Bank”), acting as administrator of the Energy Sector Management Assistance Program Umbrella 2.0 Multi-Donor Trust Fund (“ESMAP”), and Democratic Republic of São Tome e Principe (the “Recipient”) for the above-referenced project, of even date herewith. The Standard Conditions, as defined in the Grant Agreement, provide that the World Bank may issue additional instructions regarding the withdrawal of the proceeds of Grant TF0C2226-ST (“Grant”), and may set out Project specific financial reporting requirements. This letter (“Disbursement and Financial Information Letter”), as revised from time to time, constitutes such additional instructions. I. Disbursement Arrangements and Withdrawal of Grant Funds The World Bank Disbursement Guidelines for Projects, dated February 1, 2017, (“Disbursement Guidelines”) are available in the World 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. Sections and subsections in parentheses below refer to the relevant sections and subsections in the Disbursement Guidelines and, unless otherwise defined in this letter, the capitalized terms used have the meanings ascribed to them in the Disbursement Guidelines. (i) Disbursement Arrangements The table in Schedule 1 provides 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 advances), instructions on supporting documentation, and frequency of reporting on the Designated Account. (ii) Withdrawal of Grant Funds (Electronic Delivery) Section 7.01 (c) of the Standard Conditions. The Recipient will deliver Withdrawal Applications (with supporting documents) electronically through the Bank’s web-based portal “Client Connection” at https://clientconnection.worldbank.org. This option will be effected after the officials designated in writing by the Recipient who are authorized to sign 2 and deliver Withdrawal 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 Bank by electronic means. The Recipient may exercise the option of preparing and delivering Withdrawal 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 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 World Bank'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 Section 2.07 (a) and (b) of the Standard Conditions. (i) Financial Reports. The Recipient must prepare and furnish to the Bank not later than forty-five (45) days after the end of each calendar quarter, interim unaudited financial reports (“IFR”) for the Project covering the semester . Where a UN agency is contracted by the Recipient, the Recipient is responsible to ensure that the financial reporting requirements applicable to the UN Agency are stipulated in the agreement between the Recipient and the UN agency and met in a timely manner. (ii) Audits. Each audit of the Financial Statements must cover the period of commencing with the fiscal year in which the first withdrawal was made. The audited Financial Statements for each such period must be furnished to the Bank not later than six (6) months after the end of such period. Where a UN agency is contracted by the Recipient, the Recipient is responsible to ensure that the documentation requirements applicable to the UN agency, for project audit purposes, are stipulated in the agreement between the Recipient and the UN agency. III. Other Important Information For additional information on disbursement arrangements, please refer to the Loan Handbook available on the World Bank’s website (http://www.worldbank.org) and “Client Connection”. The World 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 above, please contact the World Bank by email at AskLoans@WorldBank.org using the above reference. Yours sincerely, ______________________________ Albert G. Zeufack Country Director for São Tomé and Principe Africa Region 3 Attachments 1. Form of Authorized Signatory Letter 2. Interim Financial Report (IFR) Cc with copies: General Director Agência Fiduciaria de Administração de Projectos Prédio da Afriland First Bank – 2 º Andar Avenida Kwame Nkrumah CP 1029 São Tomé São Tomé e Príncipe 4 Schedule 1 - Disbursement Provisions Basic Information Country Democratic Republic of São Tome e Principe Section III.B.2. of Schedule 2 to Closing Date Recipient Minister of Finance, Trade and Blue the Grant Agreement. Grant TF0C2226-ST Economy Number Name of the Third Additional financing to the STP Disbursement Four months after the closing Project COVID-19 Emergency Response Deadline Date date. Project. Subsection 3.7 ** Disbursement Methods, and Supporting Documentation Disbursement Methods Methods Supporting Documentation Section 2 (**) Available Subsections 4.3 and 4.4 (**) Direct Payment Yes Copy of Records Reimbursement Yes Interim Financial Report (IFR) in the format provided in Attachment 2 of the DFIL Advance (Designated Account) Yes Interim Financial Report (IFR) in the format provided in Attachment 2 of the DFIL Special Commitments Yes Copy of Letter of Credit Designated Account (Section 5 and 6 **) Type Segregated Ceiling Variable DA-F - Open at the Banco Internacional de Sao Tome e Financial Institution - Name Currency USD Principe Frequency of Reporting, 6-month forecast included in the Interim Quarterly Amount Financial Report Subsection 6.3 (**) Minimum Value of Applications (subsection 3.5) The minimum value of applications for Reimbursement, Direct Payment and Special Commitment is waived as this is an emergency project. 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 **) i) Authorized Signatures Applications for this Financing will be signed by the officials authorized to sign Applications as indicated in your letter of March 24th, 2021, signed by the Minister of Planning, Finance and Blue Economy, H.E. Osvaldo Tavares dos Santos Vaz, and as amended in your letter of March 09, 2023, signed by the Minister of Planning, Finance and Blue Economy, H.E. Ginésio Valentim Afonso da Mata The address for the new ASL letter AND the Withdrawal Applications and its supporting documentation will be electronically sent via the Bank’s system Client Connection. 5 Additional Information The Designated Account will be managed by AFAP. Transfers to a local currency project may be done as and when required to the needs of the project. Excessive transfers should be avoided in order to not incur exchange rates losses, should there be a need to convert back to the USD dominated account. In case of eligible expenditure of the table under Schedule 2 Section III.A.1 (“Withdrawal Table”) of the Grant Agreement, payments to UN Agencies (if any) may be made through UN Advances (with or without a UN Commitment) disbursement mechanism. In case of a contract with a UN Agency requiring a UN Commitment, an application for issuance of UN Commitment is to be submitted by the Recipient/Borrower. Subsequent payments and documentation of expenditures under the contract must be made in accordance with the Commitment letter to be issued by the Association and the contract between the Borrower/Recipient and the UN agency. In case of a UN Advance (without UN Commitment), documentation of expenditure should be made once the final invoice is issued and based on the UN Financial Report] Other The Designated Account DA-E is to be shared with the IDA D6060 DA-A, Trust Fund TF0B3913 DA-B, HEP TF0B5690 DA-C, IDA Grant D8130 DA-D, IDA E2230 DA-E and with TF0C2216 DA-G. * Select the agreed supporting documentation, and add the following “in the format provided in Attachment 2 of this letter.” ** Sections and subsections indicated relate to the Disbursement Guidelines for Investment Project Financing dated February 2017. 6 Attachment 1 Form of Authorized Signatory Letter [Letterhead] Ministry of Finance [Street address] [City] [Country] [DATE] The World Bank 1818 H Street, N.W. Washington, D.C. 20433 United States of America Attention: [Country Director] Dear [Country Director]: Re: Grant No. TF0C2226-ST (Third Additional financing to the STP COVID-19 Emergency Response Project) I refer to the [Grant] [Letter] Agreement (“Agreement”) between the [International Bank for Reconstruction and Development/International Development Association] (“[World Bank”][“Association”])], acting as [an implementing agency of the Global Environmental Facility] [administrator of the Global Partnership on Output-based Aid] [administrator of name of the trust fund], and [name of recipient] (the “Recipient”), dated _______, providing the above Grant. For the purposes of Section 3.04 (b) of the Standard Conditions, as defined in the Agreement, any [1one] 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 [World Bank] [Association], 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 [World Bank] [Association]. 1 Instruction to the Recipient when sending this letter to the World Bank: 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 World Bank/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 World Bank/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 World Bank/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 World Bank/Association. 7 5[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 [World Bank] [Association] by electronic means. In full recognition that the [World Bank] [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 [World Bank] [Association] that it will cause such persons to abide by those terms and conditions.] This Authorization replaces and supersedes any Authorization currently in the [World Bank] [Association] records with respect to this Agreement. [Name], [position] Specimen Signature: ____________________ [Name], [position] Specimen Signature: ____________________ [Name], [position] Specimen Signature: ____________________ Yours truly, / signed / ______________ [Position] 5 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 final letter that is sent to the World Bank/Association. 8 Attachment 2 Interim Financial Report 9 10 11 12