MARINA WES Country Director Middle East and North Africa Region 06-Jun-2022 Date: __________ H. E. Ilyas Moussa Dawaleh Minister of Economy and Finance in charge of Industry Ministry of Economy and Finance in charge of Industry Djibouti City Republic of Djibouti Re: IDA Credit 7134-DJ and IDA Grant E054 DJ (Djibouti Health System Strengthening Project) Additional Instructions: Disbursement and Financial Information Letter Excellency: I refer to the Financing Agreement between REPUBLIC OF DJIBOUTI (“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 Credit1 and Grant amounts from the Credit and Grant Accounts2 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 and Grant Funds, and Reporting of Uses of Credit and 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 Disbursement Guidelines apply to the Credit and 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, information on registration of authorized signatories, processing of Withdrawal Applications (including minimum value of applications), and instructions on supporting documentation. 1 “Financing” means: (a) the Credit if the Financing Agreement provides for a Credit only; (b) the Grant if the Financing Agreement provides for a Grant only; or both the Credit and the Grant if the Financing Agreement provides for both a Credit and a Grant. 2 “Financing Account” means: (a) the Credit Account if the Financing Agreement provides for a Credit only; (b) the Grant Account if the Financing Agreement provides for a Grant only; or (c) the Credit Account in respect of the Credit and the Grant Account in respect of the Grant if the Financing Agreement provides for a Credit and a Grant. 2 (ii) Withdrawal Applications Electronic Delivery3 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 effected 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 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 4 (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 (“IFRs”) for the Project covering the 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 Association not later than six (6) months after the end of such period. Where a UN agency is contracted by the Recipient, the Recipient is responsible to ensure that the documentation requirements applicable to the UN agency, for project audit purposes, are stipulated in the agreement between the Recipient and the UN agency. 3 Section 11.01 (c) of the General Conditions. 4 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 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 above reference. Yours sincerely, ______________________________ MARINA WES Country Director Djibouti, Egypt, Yemen Middle East and North Africa Region Attachments 1. Form of Authorized Signatory Letter 2. Form of Statement of Expenditure (SOE) With copies: 4 Schedule 1 : Disbursement Provisions A. Basic Information Country REPUBLIC OF DJIBOUTI Closing Date Section III.B.2. of Schedule 2 to the Credit and Financing Agreement 7134-DJ Recipient Ministry of Economy and Finance Grant E054 DJ Name of the Project Djibouti Health System Strengthening Disbursement Four (4) months after the closing Numbers Project Deadline Date5 date B. Disbursement Methods and Supporting Documentation Disbursement Methods6 Methods Supporting Documentation7 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 No Pursuant to subsection 5.2 of the Disbursement Guidelines, the advancing of financing proceeds Account) into a Designated Account is not a Disbursement Method currently available under this Financing Special Commitments Yes Copy of Letter of Credit C. Designated Account(s)8 Type and Management Unit Not Applicable Ceiling Not Applicable Financial Institution - Not Applicable Not Applicable Currency Name Frequency of Reporting9 Not Applicable Amount Not Applicable D. Minimum Value of Applications10 The minimum value of applications for Direct Payment, Reimbursement, and Special Commitment Issuance- is USD 5,000 equivalent. E. Authorized Signatures11 Withdrawal and Documentation Applications12 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 Association’s system “Client Connection”. F. Additional Instructions For notes in Schedule 1: Sections and subsections relate to the “Disbursement Guidelines for Investment Project Financing”, d ated February 2017. 5 Subsection 3.7 6 Section 2 7 Subsections 4.3 and 4.4 8 Sections 5 and 6 9 Subsection 6.3 10 subsection 3.5 11 Subsection 3.1 and 3.2 12 Subsection 3.3 and 3.4 5 Payments to UN Agencies (if any) may be made through UN Advances (with or without a UN Commitment) disbursement mechanism. In case of a contract with a UN Agency requiring a UN Commitment, an application for issuance of UN Commitment is to be submitted by the Recipient. Subsequent payments and documentation of expenditures under the contract must be made in accordance with the Commitment letter to be issued by the Association and the contract between the Recipient and the UN agency. In case of a UN Advance (without UN Commitment), documentation of expenditure should be made once the final invoice is issued and based on the UN Financial Report] 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: [Country Director]1 Dear [Country Director]: Re IDA Credit 7134-DJ and IDA Grant E054 DJ (Djibouti Health System Strengthening Project) I refer to the [Credit] [Grant] Agreement (“Agreement”) between the International Development Association (“Association”)[, acting as implementing of the]2 and [name of recipient] (“Recipient”), providing the above [Credit] [Grant]. For the purposes of Section 2.03 of the General Conditions as defined in the Agreement, any 3[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, 4 [each] of the persons whose authenticated specimen signatures appears below is authorized on behalf of the Recipient, acting 5[individually] 6[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 1 Instruction to Bank staff: please forward this letter to Country Lawyer for further processing (Recipient: please do not delete this note). 2 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 3 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. 4 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. 5 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. 6 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 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 / ______________ 8 Attachment 2 – Statement of Expenditures Attachment 2 – Statement of Expenditure (SOE) Credit/Grant No.: Application No.: Category No.: SOE No.: 1 2 3 4 5 6 8 9 10 11 Supplier’s WB Type of Good or CCY and Currency XX% XX% Exchange Currency Date of Remarks Name Contract Service Total and Total Financed Financed Rate and Payment Number in (CW/GO/CS/OP/TR) Amount, Amount of by IDA by IDA Amount Client / Brief Description and Date Invoice Credit Grant Paid from Connection of Covered by Designated (for Prior Contract Applicatio Account (if Review n Applicable) Contracts) (location)