05-Dec-2023 ___________________ Dr. Krishna Hari Pushkar Secretary Ministry of Finance Singha Durbar, Kathmandu NEPAL Dear Dr. Pushkar: Re: GAFSP Grant No. TF0C1798 Food and Nutrition Security Enhancement Project II Additional Instructions: Disbursement and Financial Information Letter I refer to the Grant Agreement (“Grant Agreement”) between Nepal (“Recipient”) and International Development Association (“World Bank”) acting as Trustee and Supervising Entity of the Global Agriculture and Food Security Program (“GAFSP”) for the above-referenced Project. The Standard Conditions, as defined in the Grant Agreement provides that the World Bank may issue additional instructions regarding the withdrawal of the proceeds under Grant No. TF0C1798 (“Grant”). This letter (“Disbursement and Financial Information Letter”), as revised from time to time, constitutes the additional instructions. The Disbursement Guidelines for Investment Project Financing dated February 2017, (“Disbursement Guidelines”) are available in the World 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 this Disbursement and Financial Information Letter, and the manner in which the provisions in the guidelines apply to the Financing 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, Withdrawal of Financing Funds, and Reporting of Uses of Grant Funds (i) Disbursement Arrangements:  General Provisions (Schedule 1). 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 of reporting on the Designated Account. (ii) Electronic Delivery. Refer to section 7.01 (c) of the Standard Conditions:  The World Bank may permit the Recipient to electronically deliver applications (with supporting documents) through the World Bank’s web-based portal (https://clientconnection.worldbank.org) “Client Connection”. This option may be effected if: (a) the Recipient has designated in writing, its officials who are authorized to sign and deliver Applications and to receive Secure Identification Credentials (“SIDC”) from the World Bank for the purpose of delivering such Applications by electronic means; and (b) all such officials Nepal Country Office, Yak & Yeti Hotel Complex, Durbar Marg, Kathmandu, Nepal P.O. Box 798, Phone: +977 1 4236000/4226792/4439571 Fax: +977 1 4225112 -2- designated by the Recipient have registered as users of “Client Connection”. The designated officials may deliver Applications electronically by completing the Form 2380, which is accessible through “Client Connection”. The Recipient may continue to exercise the option of preparing and delivering Applications in paper form. The World Bank 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 signatories 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. (i) Financial Reports. The Recipient shall prepare and furnish to the World Bank not later than forty-five (45) days after the end of each fiscal quarter, Interim Unaudited Financial Report (“IUFR”) for the project covering the fiscal quarter. 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 shall 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 shall be furnished to the World Bank not later than nine (9) months after the end of such period. Where a UN agency is contracted by the Recipient, the Recipient is responsible to ensure that the audit documentation requirements applicable to the UN agency, are stipulated in the agreement between the Recipient and the UN agency for the project. 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. Sincerely, ______________________________________ Faris H. Hadad-Zervos Country Director for Maldives, Nepal, and Sri Lanka Attachments 1. Form of Authorized Signatories Letter 2. Statement of Expenditures (SOE) for Category 1 of the Withdrawal Table 3.Statement of Expenditures for Categories 2 and 3 of the Withdrawal Table -3- Schedule 1: Disbursement Provisions Basic Information Country Nepal Closing Date Section III.B.2 of Schedule 2 to the Recipient Nepal Grant Agreement. Grant GAFSP Name of the Project Food and Nutrition Security Disbursement Four months after the Closing Date. Number TF0C1798 Enhancement Project II Deadline Date Subsection 3.7 ** Disbursement Methods and Supporting Documentation Methods Available Disbursement Methods Supporting Documentation Section 2* Subsections 4.3 and 4.4 Yes for Category 1 of the table in Section III.A.1 of Schedule 2 of the Financing Agreement Direct Payment (“Withdrawal Table”) Copy of Records - Invoice Statement of Expenditures for Category 1 of the Withdrawal Table (Attachment 2) Statement of Expenditures for Categories 2 and 3 of the Withdrawal Table (Attachment Reimbursement Yes 3) Yes for Category 1 of the Copy of Letter of Credit. Special Commitments Withdrawal Table Proforma Invoice if cited in the Letter of Credit Minimum Value of Applications (subsection 3.5) -4- The minimum value of applications for Reimbursement, Direct Payment and Special Commitment is USD 10,000 equivalent. 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 **) Authorized Signatories Letter: Withdrawal and Documentation Applications: The World Bank The World Bank Nepal Country Office, No. 11, Taramani Main Road Yak & Yeti Complex, Taramani, Chennai – 600 113 Durbar Marg, India Kathmandu, Nepal Attention: Team Lead, WFACS Attention: Country Manager, Nepal Country Director for Maldives, Nepal and Sri Lanka. Additional Instructions (i) In case of Category 1 of the Withdrawal Table - Goods, works, non-consulting services, consulting services, Training and Incremental Operating Costs under Parts A, B.1, B.2(a), B.2(c), C.1, C.2(a), C.2(b) and D of the Project, payments to UN Agencies (if any) would be made through UN Advances with an UN Commitment disbursement mechanism. In case of contract with UN Agency requiring UN Commitment, an application for issuance of UN Commitment is to be submitted by the Recipient. Subsequent payment and documentation of expenditures would be as per the commitment letter to be issued by the World Bank and the agreement between the Recipient and the UN agency. (ii) In case of Category 2 of the Withdrawal Table – Matching Grants under Part B.2(b) of the Project and Category 3 of the Withdrawal table - Small Grants under Part C.2(c) of the Project, expenditures reported by the recipients of the grants would be claimed in the SOE. *Sections and subsections indicated relate to the Disbursement Guidelines for Investment Project Financing dated Financing 2017. -5- Attachment 1 Form of Authorized Signatories Letter [Letterhead] Ministry of Finance [Street address] [City] [Country] [Date] The World Bank Nepal Country Office, Yak & Yeti Complex, Durbar Marg, Kathmandu, Nepal Attention: Country Director for Maldives, Nepal and Sri Lanka Re: GAFSP Grant No. TF0C1798 Food and Nutrition Security Enhancement Project II I refer to the Grant Agreement (“Grant Agreement”) between Nepal (“Recipient”) and International Development Association (“World Bank”) acting as Trustee and Supervising Entity of the Global Agriculture and Food Security Program (“GAFSP”) for the above-referenced Grant. For the purposes of Section 3.04 (b) of the Standard Conditions, as defined in the Grant 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, 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. 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 by electronic means. In full recognition that the World 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 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. 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. 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. 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. 5 Instruction to the Recipient: Add this paragraph if the Recipient wishes to authorize the listed persons to accept Secure Identfication 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. 6 Instruction to the Recipient: In case signatory(ies) are authorized separately for part(s)/category(ies) included in the Financing Agreement, the authorized signatories letter may make reference to the relevant part(s)/category(ies) in the subject line. Please delete this footnote in final letter that is sent to the World Bank. -6- Recipient represents and warrants to the World Bank 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 records with respect to this Agreement. [Name], [position] Specimen Signature: ____________________ [Name], [position] Specimen Signature: ____________________ [Name], [position] Specimen Signature: ____________________ Yours truly, / signed / ______________ [Position] -7- Attachment 2 - Statement of Expenditures for Category 1 Grant# Payment made during the period Application from to # Category # The following expenditures have been incurred during the retroactive financing period (please tick) Yes No Page # The following expenditures have been incurred during before the closing date of the credit (please tick) Yes No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Contract # Total Service Prior Contract amount of Brief Invoice Date of % Expenditure provider / Review currency invoice Exchange Amount Item Description of number payment Financed Amount Eligible for Date of Supplier / Contract? (Client and amount covered by rate, if paid and No the expenditure by the Financing payment Payee's (YES or Connection # (original + Application applicable claimed Bank (Col. 9*10) Name NO) for Prior amendment) (net of Review retention) contracts) TOTAL Supporting documents for this SOE are retained at Prepared by : Authorized Representative: A separate form should be used for each category -8- Attachment 3- Statement of Expenditures for Categories 2 and 3 Grant# Payment made during the period Application from to # Category # The following expenditures have been incurred during the retroactive financing period (please tick) Yes No Page # The following expenditures have been incurred during before the closing date of the credit (please tick) Yes No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Whether expenditures spent and reported as per Whether Financing Payment Total Name and Purpose of Agreement Agreement, Total Grant reference % Expenditu amount In-kind Item address of Grant with signed with DFIL and amount number Financed re Amount Date of Amount paid to be contribution, Remarks No Group/ approval Project PIM (Y/N) (original + and by the Eligible for payment and claimed paid if any Recipient number Management amendment) period Bank financing Unit (Y/N) Supporting documents for this SOE are retained at Prepared by : Authorized Representative: A separate form should be used for each category