07-Dec-2023 ____________________ H.E. Dr. Aun Pornmoniroth Deputy Prime Minister Minister of Economy and Finance Ministry of Economy and Finance Street 92, Sangkat Wat Phnom Khan Daun Penh, Phnom Penh Kingdom of Cambodia Re : IDA Credit 7427-KH (Credit A) & IDA Credit 7428-KH (Credit B) Water Supply and Sanitation Acceleration Project Additional Instructions: Disbursement and Financial Information Letter Excellency: I refer to the Financing Agreement between the Kingdom of Cambodia (“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 Accounts in accordance with the Disbursement and Financial Information Letter, 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 (“DFIL”) 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 in 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 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) The Recipient will 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 effected after the officials designated in writing by the Recipient who are authorized to sign and deliver Applications have registered as users 2 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 Association by electronic 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 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 Association's public website at https://www.worldbank.org and “Client Connection”; and (b) to cause such officials to abide by those terms and conditions. II. Financial Reports and Audits (i) Financial Reports. The Recipient shall through the Ministry of Industry, Science, Technology & Innovation (MISTI) and Ministry of Public Works and Transport (MPWT) each 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. (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 MISTI shall coordinate annual project audit, which shall be carried out by an external auditor appointed for the project by MEF. The Consolidated audited Financial Statements for each such period must be furnished to the Association 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 and “Client Connection”. The Association 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 Credit, 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 loan name and number: Water Supply and Sanitation Acceleration Project, Credit No. IDA Credit 7427-KH (Credit A) & IDA Credit 7428-KH (Credit B), as applicable. Yours sincerely, _____________________________ Maryam Salim Country Manager, Cambodia East Asia and Pacific Region 3 Attachments 1. Form of Authorized Signatory Letter 2. Form of Statement of Expenditures (SOE) 3. Designated Account Reconciliation Statements 4. Two Quarters of Cash Forecast With copies: Ministry of Economy and Finance (MEF) Street 92, Sangkat Wat Phnom Khan Daun Penh, Phnom Penh Kingdom of Cambodia Ministry of Industry, Science, Technology & Innovation (MISTI) 45, Preah Norodom Blvd, Sangkat Phsar Thmey 3 Khan Daun Penh, Phnom Penh Kingdom of Cambodia Ministry of Public Works and Transport (MPWT) Street 598, Sangkat Chrang Chamres 2 Khan Russey Keo, Phnom Penh Kingdom of Cambodia 4 Schedule 1 : Disbursement Provisions A. Basic Information IDA 7427-KH Country Kingdom of Cambodia Closing Date Section III B.2. of Schedule 2 to the (Credit A) & Recipient’s Ministry of Economy and Finance Financing Agreement Credit IDA 7428-KH Representative Number (Credit B) Name of the Water Supply and Sanitation Disbursement Four (4) months after the Closing Project Acceleration Project Deadline Date Date B. Disbursement Methods and Supporting Documentation Disbursement Methods Methods Supporting Documentation Direct Payment Yes Records (Supplier Invoices/Copy of Receipts) Reimbursement Yes Statement of Expenditure, in the format provided in Attachment 2 of the DFIL Advance (into a Designated Yes Statement of Expenditure, in the format provided in Attachment 2 of the DFIL Account) Designated Account Reconciliation Statement, in the format provided in Attachment 3 and related bank statement Special Commitments Yes Copy of Letter of Credit C. Designated Account(s) Segregated to be managed by MISTI and MPWT respectively. Variable The advances will be disbursed into two (2) separate Type and Management Unit Ceiling Designated Accounts (DAs). DA-1 for component 1 – managed by MISTI; and DA-2 for component 2 – managed by MPWT. Financial Institution - Name National Bank of Cambodia Currency U.S. Dollars 1 Quarterly Forecast for two-quarters of eligible Frequency of Reporting Amount expenses D. Minimum Value of Applications The minimum value of applications for Direct Payment, Reimbursement, and Special Commitment is USD 100,000 equivalent. E. Authorized Signatures Withdrawal and Documentation Applications The form for Authorized Signatory Letter is provided in Attachment 1 of this letter. All Applications and its supporting documentation, and Authorized Signatory Letter will be electronically sent via the Bank’s system “Client Connection”. F. Additional Instructions a). Advances into the Designated Account (DA):  Funds advanced into the respective DAs will be made at the request of the MISTI and MPWT with the approval of MEF. 5  Investment Support Grant. The Investment support grant (to support PWOs) is set for disbursement Category 2 under Sub-components 1.2.1 and 1.2.2 with a fixed sum of US$15 million under the direct administration of the MISTI. Guidelines for the investment support grant will detail the basis of recognition of funds to PWO beneficiaries, i.e., the eligible expenditures and fund flow arrangements. No disbursement shall occur under this grant from IDA until the guideline is approved by the Bank. Other N/A 6 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: Mariam J. Sherman, Country Director, East Asia Pacific Region Dear Ms. Sherman: Re: IDA Credit No. 7427-KH (Credit A) & IDA Credit 7428-KH (Credit B) Water Supply and Sanitation Acceleration Project I refer to the Financing Agreement (“Agreement”) between the International Development Association (“Association”) and the Kingdom of Cambodia (“Recipient”), providing the above Credit. For the purposes of Section 2.03 of the General 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 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, 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 Association. 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 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 final letter that is sent to the 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 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 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 Association. 7 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 / ______________ 8 Attachment 2 – Statement of Expenditures 9 Attachment 3 – Designated Account Reconciliation Statement 10 Attachment 4 – Two Quarters of Cash Forecast