12-Dec-2023 Date: ______________ H.E. Mr. Abdesselam Ould Mohamed Saleh Minister of Economy and Sustainable Development Ministry of Economy and Sustainable Development Nouakchott Mauritania Re: Islamic Republic of Mauritania: IDA Grant D5750-MR and IDA Credit 7448-MR (Parent Project & Additional Financing for the Decentralization and Productive Intermediate Cities Support Project) Additional Instructions: Disbursement and Financial Information Letter Second Restatement Excellency: I refer to the Financing Agreements between ISLAMIC REPUBLIC OF MAURITANIA (“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 Grant and Credit amounts from the Grant and Credit Accounts in accordance with the Disbursement and Financial Information Letter (“DFIL”), 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 and may be revised from time to time. This DFIL is the second amendment to the DFIL, last modified February 9th, 2022, and supersedes the previous versions. I. Disbursement Arrangements, Withdrawal of Grant and Credit Funds, and Reporting of Uses of Grant and Credit Funds for the Project The Disbursement Guidelines for Investment Project Financing, dated February 2017 (“Disbursement Guidelines”), are available on 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 Grant and Credit is specified below. 2 (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 signatories, processing of Withdrawal Applications (including the 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)1 The Recipient shall 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 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 completing 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 Association 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 Association. 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 Association'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 Audits2 (i) Financial Reports The Recipient shall prepare and furnish to the Association not later than [forty-five (45)] days after the end of each calendar quarter, interim unaudited financial reports (“IFRs”) for the Project covering the quarter. (ii) Audits Each audit of the Financial Statements shall cover the period of one (1) fiscal year of the Recipient. The audited Financial Statements for each such period shall be furnished to the Association by the Recipient not later than six (6) months after the end of such period. 1 Section 10.01 (c) of the General Conditions 2 Section 5.09 of the General Conditions 3 III. Other Important Information For additional information on disbursement arrangements, please refer to the Loan Handbook available on the Association’s public website at https://www.worldbank.org and “Client Connection” at https://clientconnection.worldbank.org, the Association recommends that you register as a user of “Client Connection”. From this website, you will be able to prepare and deliver Authorized Signatory Letters and Withdrawal 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 above reference. Yours sincerely, ______________________________ Keiko Miwa Country Director for Mauritania Africa Region Attachments 1.Disbursement Guidelines for Investment Project Financing, dated February 2017 2. Interim Unaudited Financial Report 3. Customized SOE for municipal grants 4 Schedule 1: Disbursement Provisions Basic Information IDA Grant D5750-MR Country Islamic Republic of Mauritania Section III..B.2 of Schedule 2 to the Closing Date Recipient Islamic Republic of Mauritania Financing Agreements IDA 7448-MR Parent Project and Additional Disbursement Credit Financing for the Decentralization and Deadline Date Four (4) months after the closing Name of the Project Productive Intermediate Cities date Support Project Disbursement Methods and Supporting Documentation Disbursement Methods Methods Supporting Documentation Direct Payment Yes Records (Supplier Invoices/Copy of Receipts) Reimbursement Yes Interim unaudited Financial report (IFR)in the format provided in Attachment 2 of the DFIL for all eligible expenditures including a Customized Statement of Expenditures (SOE) in the format provided in Attachment 3 of the DFIL for Eligible of Category 3 of the section III.A of Schedule 2 of the Financing Agreement of the Parent Project Advance (into a Designated Yes Interim unaudited Financial report (IFR)in the format provided in Attachment 2 of the DFIL for all Account) eligible expenditures including a Customized Statement of Expenditures (SOE) in the format provided in Attachment 3 of the DFIL for Eligible of Category 3 of the section III.A of Schedule 2 of the Financing Agreement of the Parent Project Special Commitments Yes Copy of Letter of Credit Designated Account Type Segregated consolidating funds of the parent project and Variable additional financing Ceiling Financial Institution - Central Bank of Mauritania USD Currency Name Frequency of Reporting Quarterly 6 months forecast as per the IFR Amount approved by the TTL______ Minimum Value of Applications (subsection 3.5) The minimum value of applications for Direct Payment, Reimbursement, Special Commitment Issuance is equivalent to 200,000 USD Authorized Signatures Withdrawal and Documentation Applications The form for Authorized Signatories Letter is provided in Attachment 1 of this letter Applications for this Financing will be signed by the official(s) authorized to sign Applications as indicated in your letter of May 12, 2021. 5 The ASL and all Withdrawal Applications with their supporting documentation will be submitted electronically via the Association’s “Client Connection” system. Additional Information 1. Funds from the Designated Account may be transferred to Transactions Accounts in a commercial bank acceptable to the Bank to meet eligible expenditures, provided that transactions and balance in these accounts are included in all project financial reports. 2. Disbursements under Categories 4 and 2 of Sections III.A of Schedule 2 of the Financing Agreements of the parent project and additional financing (Part 4 of the Project - Contingent Emergency Response Component (CERC)) will be subject to the conditions precedent to accessing the CERC funds, namely that the Recipient has provided, and the Bank has accepted, evidence of the occurrence of an eligible crisis or emergency and the Recipient has prepared and adopted/adhered to the CERC Operations Manual. Disbursements under this component will follow procedures described in the CERC Manual including supporting documentation; provided that this disbursement letter will first need to be amended and reinstated at a later date to reflect those specific arrangements. In order to provide necessary liquidity for fast response, the ceiling of the Advance under the CERC could be up to 100% of the amount allocated to the CERC category. 6 Attachment 2 – Interim Unaudited Financial Report 1) TABLEAU RESSOURCES-EMPLOIS Prévision 6 Description Trimestre Cumulatif mois á venir Antérieur Période Funds reçus Fonds du Gouvernement Fonds de l'IDA Autres Fonds Financement Total (1) Utilisation des Fonds Composante 1 Composante 2 Composante 3 Utilisation Total des Fonds (2) Liquidité Brute (3 = 1- 2) Comptes à régulariser (4) Liquidité Nette (5 = 3 + 4) Soldes à l'Ouverture 7 Compte Bancaire des Fonds du Gouvernement Compte Désigné Autres Comptes Bancaires Total Comptes à l'ouverture (1) Variation liquidité (2) Solde liquidité disponible (1 + 2) Solde à la Clôture Compte Bancaire des Fonds du Gouvernement Compte Désigné Autres Comptes Bancaires Total Comptes à la Clôture : 2) UTILISATION DES FONDS PAR COMPOSANTES ET SOUS COMPOSANTES Montant Composante et Sous Composantes Prévu Réalisé Ecart dans % de Trimestre Cumul Trimestre Cumul Trimestre Cumul le PAD réalisation 8 Composante 1: Sous Composante 1 Sous Composante 2 Sous Composante 3 Total Composante 1 Composante 2: Sous Composante 1 Sous Composante 2 Sous Composante 3 Total Composante 2 3) UTILISATION DES FONDS PAR CATEGORIES 4) SUIVI BUDGETAIRE 9 III- Rapport sur la passation des marchés : 3) SITUATION DES MARCHES LANCES 10 ANNEXE N° 1 : Résumé des procédures de passation des marchés ANNEXES : - Reconstitution du compte désigné - Etats de rapprochement bancaire du compte désigné et du sous compte - Relevés bancaires du compte désigné et du sous compte 11 Attachment 3 IDA Grant No. ________ Customized Statement of Expenditures for Municipal Grant under Part B.1.a(ii) (b) (of the Project Category ____ Period: DD/MM/YY to DD/MM/YY The World Bank APPLICATION FOR WITHDRAWAL STATEMENT OF EXPENDITURES – CUSTOMIZED (S0E)3 1 2 3 4 5 6 7 8 9 10 11 Currency and Total Amount Total amount of Municipal Grant Date of Payment Municipal Payment Brief Amount Grant request Item No. Remarks Municipal Grant Description of Paid from Elig. % Name and Address of payment Eligible Agreement No. & Municipal Designated Beneficiary request for Date (or other ref.) Grant Account (if covered by Financin Activities any) application g (net of retention) 3 Supporting documents for this Customized SOE retained at:(insert location)