NDIAME DIOP Country Director Brunei, Malaysia, Philippines, Thailand 27-Jan-2022 _____________ Hon. Carlos G. Dominguez Secretary Department of Finance (DOF) DOF Building, BSP Complex Roxas Boulevard Manila Re: IBRD Loan No. 9271-PH and EU Grant No. TF05756 Second Additional Financing for Philippine Rural Development Project Additional Instructions: Disbursement and Financial Information Letter – First Amendment Dear Secretary Dominguez: I refer to: (i) the Loan Agreement between the Republic of the Philippines (the “Borrower”) and the International Bank for Reconstruction and Development (the “Bank”) and Grant Agreement between the Republic of the Philippines (“Recipient”) and the Bank, acting as an administrator of the European Union (EU) Philippine Rural Development Project Single-Donor Trust Fund, both dated July 16, 2021 for the above-referenced Project; (ii) the Disbursement and Financial Information Letter (DFIL) dated July 16, 2021 for IBRD Loan No. 9271-PH and EU Grant No. TF05756 (“Original DFIL”); and (iii) the letter from Undersecretary Mark Dennis Y.C. Joven received by the Bank on January 18, 2022 requesting certain revisions to the Original DFIL. The General Conditions and Standard Conditions, as defined in the Loan Agreement and Grant Agreement, provide that the Borrower and the Recipient may, from time to time, request withdrawals of Loan and Grant Amounts from the Loan and Grant Account in accordance with the Disbursement and Financial Information Letter, and such additional instructions as the Bank may specify from time to time by notice to the Borrower and the Recipient. The General Conditions and the Standard 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 replaces the Original DFIL to revise the financial institution of the designated accounts from the Bureau of Treasury Single Account at the Bangko Sentral ng Pilipinas to the Land Bank of the Philippines. I. Disbursement Arrangements, Withdrawal of Loan and Grant Funds, and Reporting of Uses of Loan and Grant Funds The Disbursement Guidelines for Investment Project Financing, dated February 2017, (“Disbursement Guidelines”) are available in the 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 the DFIL, and the manner in which the provisions in the Disbursement Guidelines apply to the Loan and Grant is specified below. (i) Disbursement Arrangements The table in Schedule 1 sets out the disbursement methods which may be used by the Borrower and 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. The Borrower and Recipient will deliver Withdrawal Applications (with supporting documents) electronically through the Bank’s web-based portal “Client Connection” at https://clientconnection.worldbank.org. This option will be affected after the officials designated in writing by the Borrower 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 Borrower and 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 Bank by electronic means. The Borrower and the Recipient may exercise the option of preparing and delivering Withdrawal Applications in paper form on exceptional cases (including those where the Borrower/Recipient encounters legal limitations), and which were previously agreed with the Bank. By designating officials to use SIDC and by choosing to deliver the Applications electronically, the Borrower/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 World Bank's public website at https://www.worldbank.org and “Client Connection” at https://clientconnection.worldbank.org; and (b) to cause such official to abide by those terms and conditions. II. Financial Reports and Audits (i) Financial Reports. The Borrower and the Recipient must prepare and furnish to the Bank 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 Borrower, 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 Bank 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 Bank’s website (http://www.worldbank.org/) and “Client Connection”. The 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 Loan, 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 AskLoan@WorldBank.org using the above reference. Yours sincerely, ______________________________ Ndiame Diop Country Director Brunei, Malaysia, Philippines and Thailand East Asia and Pacific Region Attachments 1. Form of Authorized Signatory Letter 2. Interim unaudited Financial Report (IFR) With copies: Department of Finance Department of Finance Building Roxas Boulevard corner Pablo Ocampo Sr. Streets Manila 1004 Philippines secfin@dof.gov.ph Schedule 1 : Disbursement Provisions Basic Information Country Republic of the Philippines Closing Date Section III.B.2_of Schedule 2 to Borrower’s Department of Finance the Loan Agreement and Section Representative III.B.2 of Schedule 2 to the Grant Loan/Grant IBRD 9271-PH Agreement Number TF05756 Name of the Second Additional Financing for Disbursement Four months after the Closing Project Philippine Rural Development Deadline Date date Project 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 and Account) copy of bank statement Special Commitments Yes Copy of Letter of Credit Designated Account (Sections 5 and 6 **) Segregated Variable DA-AF Type Ceiling DA-EU Two designed accounts will be maintained by the NPCO Financial Institution - Name Land Bank of the Philippines. Currency USD Frequency of Reporting Quarterly Forecast for two (2) quarters as provided Amount Subsection 6.3 (**) in the quarterly Interim Financial Report Minimum Value of Applications (subsection 3.5) The minimum value of applications for [Reimbursement,] [Direct Payment] [and Special Commitment] is USD 1,000,000 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 **) For Authorized Signatories Letter: All Withdrawal Applications and its supporting documentation will be The World Bank, 26/F One Global Place, 5th Avenue corner 25th Street, electronically sent via the Bank’s system Client Connection. Bonifacio Global City Taguig, Philippines Attn. Mara K. Warwick - Country Director For paper Withdrawal Applications: The World Bank, 26/F One Global Place, 5th Avenue corner 25th Street, Bonifacio Global City Taguig, Philippines Attn. Loan Department Additional Instructions  This Additional Financing will have separate interim financial reporting with IBRD 8816 (the first Additional Financing)  Joint co-financing: The Project will be co-financed by the IBRD and EU donor. The financing percentage is specified in the attachment 3 Others  Disbursement for the first two years from the Board approval date : Borrower agrees that the accumulative disbursement for the first two years from the Board approval date will not be more than 60% of the total loan amount ** Sections and subsections relate to the “Disbursement Guidelines for Investment Project Financing ”, dated February 2017. [Attachment 1 – Form of Authorized Signatory Letter] 8/ [Letterhead] Department of Finance [Street address] [DATE] The World Bank 26th Floor, One Global Place 5th Avenue Corner 25th Street Bonifacio Global City Taguig City Attention: Country Director Re: IBRD Loan Number 9271-PH EU Grant Number TF05756 Authorized Signatory Letter Second Additional Financing for Philippine Rural Development Project) I refer to the Loan Agreement between the International Bank for Reconstruction and Development (the “Bank”) and the Republic of the Philippines (the “Borrower”), and Grant Agreement between the Republic of the Philippines (the “Recipient”) and the Bank, acting as administrator of the European Union (EU) Philippines Rural Development Project Single-Donor Trust Fund dated _______, providing the above Loan and Grant. For the purposes of Section 2.03 of the General Conditions and Section 3.04(b) of the Standard Conditions as defined in the Loan Agreement and Grant Agreement respectively, any 1[one] of the persons whose authenticated specimen signatures appear below is authorized on behalf of the Borrower and Recipient to sign applications for withdrawal under these Loan and Grant. For the purpose of delivering Applications to the Bank, 2[each] of the persons whose authenticated specimen signatures appears below is authorized on behalf of the Borrower/Recipient , acting 3[individually] 4 [jointly], to deliver Applications, and evidence in support thereof on the terms and conditions specified by the Bank. This confirms that the Borrower/Recipient is authorizing such persons to accept Secure Identification Credentials (SIDC) and to deliver the Applications and supporting documents to the Bank by electronic means. In full recognition that the Bank shall rely upon such representations and warranties, including without limitation, the representations and warranties contained in the Terms and Conditions of Use of 1 Instruction to the Borrower: 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 Bank. 2 Instruction to the Borrower: 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 Bank. 3 Instruction to the Borrower: 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 Bank. 4 Instruction to the Borrower: 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 Bank. Secure Identification Credentials in connection with Use of Electronic Means to Process Applications and Supporting Documentation (“Terms and Conditions of Use of SIDC”), the Borrower/Recipient represents and warrants to the Bank that it will cause such persons to abide by those terms and conditions. This Authorization replaces and supersedes any Authorization currently in the Bank records with respect to these Agreements. [Name], [position] Specimen Signature: ____________________ [Name], [position] Specimen Signature: ____________________ [Name], [position] Specimen Signature: ____________________ Yours truly, / signed / ______________ [Position] Attachment 2 - Interim unaudited Financial Statements Attachment 3 Disbursement percentage table FOR OFFICIAL USE ONLY Prepared by : Thao Thi Do Cleared with and cc: Thu Ha Le, LEGAS Eli Weiss/Maria Theresa G. Quinones, SEAAG Cc: Tomas Sta. Maria, EEAG1