THE WORLD BANK IBRD • IDA I W0RLOBANKGROUP 2. --=-----'- 7----1, (~ _,_ Jt.A J 1---- -' 2022 l---=--, Minister for Treasury Ministry for Treasury I 0th floor, The Treasury P.O . Box 542 Waigani, 131 NCD Papua New Guinea Dear Minister, Re: PNG SP Grant No. TF0B83 58 and PNG SP Grant No. TF0B83 59 (Papua New Guinea Resilient Transport Project) Additional Instructions: Disbursement and Financial Information Letter I refer to the Grant Agreement between Independent State of Papua New Guinea (the "Recipient") and International Bank for Reconstruction and Development and International Development Association (collectively, the "Bank"), acting as administrator of the Papua New Guinea Strategic Partnership Multi-Donor Trust Fund ("PNG SP"), 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 the proceeds of PNG SP Grant No . TF0B8358 and PNG SP Grant No . TF0B8359 (collectively, the "Grants") in accordance with the Disbursement and Financial Information Letter, 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, as may be revised from time to time, constitutes such Disbursement and Financial Information Letter ("DFIL"). I. Disbursement Arrangements, Withdrawal and Reporting of Grants Proceeds The Disbursement Guidelin es fo r In vestment Project Finan cing, dated February 2017, ("Disbursement Guidelines") are available in the Bank' 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 Grants is specified below . (i) Disbursement Arrangements 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 ofreporting on the Designated Account. (ii) Electronic Delivery. The Recipient will deliver Withdrawal Applications (with supporting documents) electronically through the Bank's web-based portal "Client Connection" at https://clientconnection.worldban k.org. This option will be effected after the officials designated in writing by the Recipient who are authorized to sign 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 Bank's public website at http s://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 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 quarter. (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 for each such period must be furnished to the Bank 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 Bank ' s website (http ://www.worldbank .org) and "Client Connection". 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 Gran ts, and retrieve related po !icy, 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 Bank by email at AskLoans@WorldBank.org using the above reference. David M. Gould Acting Country Director Papua New Guinea & Pacific Islands East Asia and Pacific Region Page 2 of9 Attachments 1. Statement of Expenditure (SOE) 2. Form of Authorized Signatory Letter With copies: Department of Works and Highways Mile 4, Waigani Drive PO Box 1108 Port Moresby, Papua New Guinea laim .moses@gmail.com dwereh@works .gov. pg Page 3 of9 Schedule 1 : Disbursement Provisions A. Basic Information Country Independent State of Papua New Clo sing Date Schedule 2, lll.B.2 of the Guinea Grant Agreement. I. TF0B8358 Recipient Independent State of Papua New 2. TF0B8359 Guinea (with Department of PNGSP Treasury as recipient of PNG SP Gra nt o. Grants proceeds) Na me of the Papua New Guinea Resilient Disbursement Four (4) months after the Project Transport Project Dea dline Date closing date. Subsection 3.7 ** B. Disbursement Methods and Sunnortim! Documentation Disbursement Methods Methods Supporting Documentation Section 2 (**) Subsections 4.3 and 4.4 (**) Direct Payment Yes Not Applicable Reimbursement Yes Statement of Expenditures (SOE) (Attachment l) Advance Yes (re.fer to Statement of Expenditures (SOE) (Attachment 1) Other Disbursement Instructions below) Special Commitments Yes Copy of Letterof Credit C. Desienated Account (Section S and 6 **) Pooled; one ( 1) pooled designated account will be Fixed established under the Project for receipts offunds only from IBRD Loan No . 9379-PG, IDA Credit No . 7091-PG and Type Ceiling PNG SP Grant No . TF0B8358 and PNG SP Grant No. TF0B8359. Financial Institution - A commercial bank or financial institution acceptable to the PGK Currency Na me Association. Quarterly or more often ifneeded PGKl 0 million for IBRD Loan No . Frequency ofReporling, Amount 9379-PG, IDA Credit No. 7091-PG Subsection 6.3 (**) and PNG SPGrantNo. TF0B8358 and PNG SP Grant No. TF0B8359 combined D. Minimum Value of Aoolications (subsection 3.5) The minimum value of applications for Reimbursement, Direct Payment and Spec ial Commitment is PGK l million equivalent. E. Authorized Sienatures (Subsection 3.1 and 3.2 *) Applications for the Grants will be signed by the officials authorized to sign Applications as indicated in the Authorized Signatory Letter (ASL) dated January 8, 2019 . Please notify the Bank should there be any change in the authorized officials in this regard, and submit the revised ASL through the automated ASL clearance process available via Client Conn ection , or send the ASL in paper form (Attachment 2) to the address indicated below: The World Bank Level 19, 14 Martin Place CML Building Sydney NSW 2000, Australia Attention: Country Director F. Withdrawal and Documentation Annlications (Subsection 3.3 and 3.4 * ) With drawal App lications (WA) and supporting documentation are to be sent electronically via the Bank ' s secured website Client Connection . For WAs in paper form , together with supporting documents, please submit to the address indicated below: The World Bank 26 th Floor, One Global Place th Yh Avenue cor 25 Street, Bonifacio Global City Taguig City, Philippines I 634 Attention : Loan Department G. Other Disbursement Instructions 1. The Project will be jointly financed by IBRDLoanNo. 9379-PG, IDA Credit No. 7091-PG and PNG SP Grant Nos . TF0B8358 and PNG SP Grant No . TF0B8359. Given earlier closing date of the PNG SP Grants, to the extent practical, proceeds from the PNG SP Grants will be exhausted first before proceeds from the IBRD Loan or IDA Credit are accessed . 2. Advance disbursement method and the use of designated accounts will not be availab le to the Project until the issue oflapsed loans listed below is fu lly resolved: Page 5 of9 a) IDA Credit No. 4928 - Small and Medium Enterprise Access to Finance Project b) IDA Credit No. 6051 - PNG Tourism Sector Development Project **Sections and subsections relate to the "Disbursement Guidelines for Investment Project Financing", dated Februa,y 2017. Page 6 of9 Attachment 1 - Statement of Expenditures Credit or j Grant# I I Pay m ent m a de durin g the period from D Applicatio n# i ·········································-························..••••••••••..!--································· ~ - - ~ - - - - 1·····················.................... _... category .# ..j................................... The fo llowing expend itures have been incurred d uring th e retroactive financ ing period (p lease tick) ____. ......................................... -................ Pa ge .# .. ,................................... - ~-:-:-+-_o The fo llowing expenditures have been incurred du ring before the closing da te of the Gra nt (p lease tick) In case of DA pay ments 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Contract Total Contract # Amount paid currency amount of Service Brief Prior Date of % from and Invoice invoice provider / Descriptio n Review pay m e Financed Ex penditu re Des ignated Item (Clien t amount nu m ber covered Amount Supplier / Contract? nt by the Amount Eligible Account Remarks No of the Co nnection (original by claimed Payee's (YES or Associat for Grants (which exp enditure NO) #for Prior + Applicatio Name ion should be Review amendm n (net of ent) retention) equal to # 11) contracts) TOTAL Supp orting d ocuments fort h is SOE reta ined a t:(inse rt loca tion) Prepa red by:______ Auth orized Representative: _ _ _ _ _ _ _ _ __ * A separa te fo rm sho uld be used for each ca tegory Page 7 of 9 Attachment 2 -Form of Authorized Signatory Letter [Letterhead] Department of Treasury [Street address] [City] [Country] [DATE] The World Bank Level 19, 14 Martin Place CML Building Sydney NSW 2000 Australia Attention: Country Director Re: PNG SP Grant Nos. TF0B8358 and PNG SP Grant No. TF0B8359 (Papua New Guinea Resilient Transport Project) I refer to the Grant Agreement(" Agreement") between Independent State of Papua New Guinea (the "Recipient") and International Bank for Reconstruction and Development/International Development Association (collectively, the "Bank"), acting as administrator of the Papua New Guinea Strategic Partnership Multi-Donor Trust Fund ("PNC SP"), dated _ ___, providing the above Grants. For the purposes of Section 3.04(b) of the Standard 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 the Grants. For the purpose of delivering Applications to the Bank, 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 Bank. 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 fi nal letter that is sent to th e Bank. 2 Instruction to the Recipient: Stipulate if more than one person need s to j ointly sign Applica tions, if so, plea se indicate the actua I number. Please delete this f ootn ote in fi nal letter that is sent to th e Bank. 3 Instruction to the Recipient: Use this bracket if any one of the authorized persons ma y sign ; if this is not applicable, please delete. Please delete this footnot e in.fi.nal letter that is sent to th e Bank. 4 Instruction to the Recipient: Use this bracket only if several individuals must jointly sign ea ch Application ; if this is not applicable , please delete . Please delete this footnot e in final letter that is sent to th e Bank. Page 8 of9 confirms that the Recipient is authorizing such persons to accept Secure 5 [This Identification Credentials (SIDC) and to deliver the Applications and supporting documents to the Bank by electronic 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 ofUse ofSecure Identifica tion 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] Specimen Signature: _ __ _ _ _ __ _ [Name], [position] Specimen Signature: _________ [Name], [position] Specimen Signature: _________ Yours truly, /signed/ 5 In stru ction to the Rec ipient: Add th is paragra ph if the Rec ip ient wishes to a utho rize the listed persons to accept Secure Id entifica tion Credentials a nd to deliver Applications by electro nic mea ns; if th is is not a pplica ble, please delete the pa ragra ph . Please delete this footnote in.fina l letter that is sent to the Bank. Page 9 of9