BOUTHEINA GUERMAZI (All Caps) Director of Regional Integration African and Middle East and North Africa 24-Jun-2022 Date: _____________, 2022 Dr Cliff Sibusiso Dlamini Executive Director Centre for Coordination of Agricultural Research and Development for Southern Africa Ground Floor, Red Brick building Plot 4701 Station Exit Road Private Bag 00357 Gaborone, Botswana Re: IDA Grant E081 (Food Systems Resilience Program for Eastern and Southern Africa) Additional Instructions: Disbursement and Financial Information Letter. Dear Sir, I refer to the Financing Agreement between CENTRE FOR COORDINATION OF AGRICULTURAL RESEARCH AND DEVELOPMENT FOR SOUTHERN AFRICA (CCARDESA) (the “Recipient”) and the International Development Association (the “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 amounts from the Grant Account 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 Grant Funds and Reporting of Uses of Grant 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 guidelines apply to the Grant 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 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. -2- (ii) Electronic Delivery. Section 11.01 (c) of the General Conditions. The Recipient will deliver Withdrawal Applications (with supporting documents) electronically through the Association’s web-based portal “Client Connection” at https://clientconnection.worldbank.org. This option will be affected 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 Association 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 Borrower 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://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 must prepare and furnish to the Association 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 Association not later than six (6) months after the end of such period. III. Other Information. For additional information on disbursement arrangements, please refer to the Loan Handbook available on the Association’s website (http://www.worldbank.org/) 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 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 Association by email at AskLoans@WorldBank.org using the above reference. Yours sincerely, ______________________________ Boutheina Guermazi Director of Regional Integration African and Middle East and North Africa -3- Attachments 1. Form of Authorized Signatory Letter 2. Interim unaudited Financial Report (IFR) With copies: CCARDESA SECRETARIAT Red Brick Building, Ground Floor, Plot 4701, Mmaraka Road, P/Bag 00357 Gaborone, Botswana Email: cdlamini@ccardesa.org Dr. Simon Mwale CCARDESA SECRETARIAT] Red Brick Building, Ground Floor, Plot 4701, Mmaraka Road, P/Bag 00357 Gaborone, Botswana Email: smwale@ccardesa.org -4- Schedule 1 : Disbursement Provisions Basic Information Country CCARDESA Closing Date Section III.B.2. of Schedule 2 to the Recipient CCARDESA Financing Agreement. Grant GR. E081 Name of the Project Food Systems Resilience Program for Disbursement Four months after the closing date. Number Eastern and Southern Africa Deadline Date Subsection 3.7 ** Disbursement Methods and Supporting Documentation Disbursement Methods Methods Supporting Documentation Section 2 (**) Subsections 4.3 and 4.4 (**) Direct Payment Yes Copy of records Reimbursement Yes Interim unaudited Financial Report (IFR) in the format provided in Attachment 2 of the DFIL Advance (into a Designated Yes Interim unaudited Financial Report (IFR) in the format provided in Attachment 2 of the DFIL Account) Special Commitments Yes Copy of Letter of Designated Account (Sections 5 and 6 **) Segregated Variable Type Ceiling DA Financial Institution – Standard Chartered Bank USD Currency Name Quarterly Based on up to 6 months cash forecast as Frequency of Reporting Amount per detail provided in the IFR Subsection 6.3 (**) Minimum Value of Applications (subsection 3.5) The minimum value of applications for, Direct Payment and Special Commitment is 20% of the Designated Account Ceiling. 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 **) 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”. Additional Information Other ** Sections and subsections relate to the “Disbursement Guidelines for Investment Project Financing”, dated February 2017 . -5- 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 Re: Grant No. E081 (Food Systems Resilience Program for Eastern and Southern Africa) Attention: _______________________, Country Director I refer to the Grant Agreement (“Agreement”) between the International Development Association (the “Association”) , acting as implementing of the ]1 and [name of recipient] (the “Recipient”), dated _______, providing the above Grant. For the purposes of Section 2.03 of the General Conditions as defined in the Agreement, any 2[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 this Grant. For the purpose of delivering Applications to the Association, including by electronic means, 3[each] of the persons whose authenticated specimen signatures appears below is authorized on behalf of the Recipient, acting 4[individually] 5[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 1 Instruction to the Recipient: add text in line with the Grant Agreement if applicable; if not applicable delete it. Please delete this footnote in final letter that is sent to the Associations 2 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. 3 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. 4 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. 5 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. -6- 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 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 / ______________ -7- Attachment 2 - Interim unaudited Financial Statements IDA-International Development Association Statement of Expenditures Financier World Bank Payment Made During the Period from to Loan/Credit/Grant # Application # The Following Expenditures Have Been Incurred During the Retroactive Financing Period (Please Tick) Yes No Category # The Following Expenditures Have Been Incurred Before the Closing Date of the Loan/Credit/Loan (Please Tick) Yes No Page # ONLY for the Designated Account 1 2 3 4 5 6 7 8 9 10 11 13 14 15 Date of Contract # Contract Currency Total Amount of Withdrawal Prior Review (Client Connection # and Amount Invoice Covered by from the Amount Withdrawn from Item Contracts? for Prior Review (Original + Date of Application % Financed by Eligible Amount Designated the Designated Account No. Supplier's Name Brief Description of the Expenditure (Yes/No) Contracts) Amendment) Invoice Number Payment (Net of Retention) the Bank (Col 9*10) Exchange Rate Account (Col 11/12) - - TOTAL - Supporting Documents for this SOE are Retained at CCARDESA Secretariat Private Bag 00357, Gaborone, Botswana Plot 4701, Station Exit Road Gaborone, Botswana Authorised Signatory: (Name and Signature) ____________________ A Separate Form Should be Used for Each Category -8- Designated Account (DA) Activity Statement For the Reporting Quarter: 30 September 2021 Project Name: IDA Grant No. Deposit Bank: A/C No: Currency of DA: Part I 1. Cumulative advances to end of current reporting period 2. Cumulative expenditures to end of last reporting period 3. Outstanding Advances to be accounted (line 1minus line 2) Part II 4.Opening DA balance at beginning of reporting period (01 July 2021) 5. Add/subtract: Cumulative adjustments (if any) 6. Advances from World Bank during reporting period 7. Add lines 5 and 6 8.Outstanding advances to be accounted for (add line 4 and line 7) 9. Closing DA balance at end of current reporting period (30 September 2021) 10. Add/subtract: Cumulative adjustments (if any) 11.Expenditures for current reporting period 12. Add line 10 and line 11 13. Add line 9 and line 12 14. Difference (if any) (line 8 minus line 13) Reconciling Items Imprests Total Reconciling Items Part III 15. Total forecasted amount to be paid by World Bank 16. Less: Closing DA balance after adjustments 17. Direct payments/SC payments (OUTSTANDING OBLIGATIONS) 18. Add lines 16 and 17 19. Cash requirement from World Bank for next two reporting periods (line 15 minus line 18) Authorised Signatory: (Name and Signature) ________________________ -9- CCARDESA WORLD BANK GRANT (APPSA) SUMMARY Dated:_______________ USD USD Q1. Expenditure (Jul-Sep--- ) Q2. Expenditure (Oct-Dec ---) Q3. Expenditure (Jan-Mar ---) Q4. Expenditure (Apr-Jun ---) Q5. Expenditure (Jul- Sept ---) Q6. Expenditure (Oct- Dec ---) Q7. Expenditure (Jan-Mar ---) Q8. Expenditure (Apr-June ---) Q9. Expenditure (Jul- Sept ---) - Total Expenditure to _________________ - Funds Transfer-World Bank Interest Received for the Quarter 1 Interest Received for the Quarter 2 Funds Transfer-World Bank Interest Received for the Quarter 3 Interest Received for the Quarter 4 Funds Transfer-World Bank Interest Received for the Quarter 5 Interest Received for the Quarter 6 Funds Transfer-World Bank Interest Received for the Quarter 7 Funds Transfer-World Bank Interest Received for the Quarter 8 Interest Received for the Quarter 9 Total Disbursements as at ______________ - Expected Cash Balance as at ________________ - Actual Cash Balance at _______________ Reconciling Items Total Transfers - Total Transfers & Actual Cash Balance at _____________ - - Authorised Signatory: (Name and Signature) ________________________ -10- Source and Uses of Funds Report Quarter Ended 30 September 2021 The World Bank Tust Fund: IDA D4501 Quarter Cumulative Remarks Opening Cash Balance - - Add: Source of Funds IDA Funds - - Interest - - Counter part funding - Funds Available - - Less: Uses of Funds by disbursement categories Goods, consultants services, training , workshops and operating costs - - Total expenditures - - Cash available less total expenditure - - Closing Cash Balance (Designated Account) - - RECONCILING ITEMS Imprests Total Cash Balance - - The following rates were used for conversion: 1US$ = 1 (opening and closing balances) Authorized by:__________________ Signature and Date:…………………………………. 15/10/2021 -11- Uses of funds by Component/Activities Quarter Ended ______________ Component QUARTER Cumulative Project Life Planned Actual Variance Planned Actual Variance Component 1 Total Project Expenditures Authorized by:__________________ Signature and Date:…………………………………. 15/10/2021 -12- Payments Made during Reporting Period- 30 September 2021 Against Contracts Subject to the Bank’s Prior Review Disbursement WB's share of Category as per the Amt Paid to Grant Agreement Supplier during Date of WB’s Non Amount Paid to Period from Contract No Contract Date Contract Amount Objection to Supplier during the Designated Number Supplier Date Amount Contract Period Account in US$ Authorized by: _____________________ Signature and Date: _____________________ -13- Payments Made during Reporting Period-________________ to______________, other than payments under Contracts Subject to the Bank's Prior Review WB's share of Amt Paid to Disbursement Category as per Supplier during Period the Grant Agreement Contract Amount Paid to from the Designated Contract NO Supplier Contract Date Amount Supplier during Period Account in US$ Authorized by: ___________________ Signature and Date: _____________________