OFFICIAL DOCUMENTS THE WORLD BANK IRD *IDA I WORLDBANKGROUP PATCHAMUTHU ILLANGOVAN Country Director, Pakistan South Asia Region. Mr. Arif Ahmed Khan Secretary Economic Affairs Division Ministry of Finance, Revenue and Economic Affairs Islamic Republic of Pakistan Islamabad, Pakistan Re: Loan No. 8809-PK (Strengthening Markets for Agriculture and Rural Transformation in Punjab Program) Additional Instructions: Disbursement and Financial Information Letter Dear Mr. Khan: I refer to the Loan Agreement between Islamic Republic of Pakistan (the "Borrower") and the International Bank for Reconstruction and Development (the "World Bank") for the above- referenced Project. The General Conditions, as defined in the Loan Agreement, provide that the Borrower may from time to time request withdrawals of Loan Amounts from the Loan Account in accordance with the Disbursement and Financial Information Letter, and such additional instructions as the World Bank may specify from time to time by notice to the Borrower. 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 Loan Funds, and Reporting of Uses of Loan Funds (i) Schedule 1. The table in Schedule 1 sets out the disbursement methods which may be used by the Borrower, information on registration of authorized signatures, processing of withdrawal applications, instructions on documentation, and reporting to the Bank. (ii) Withdrawal Applications. Applications for withdrawal from the Loan Account ("Withdrawal Applications") of amounts of the Loan allocated to individual Disbursement Linked Results ("DLR"), as stated in Section IV.A.2. of Schedule 2 to the Loan Agreement, may, pursuant to the provisions of Schedule 3 of the Loan Agreement, be sent to the World Bank at any time after the World Bank has notified the Borrower in writing that it has accepted evidence of achievement of the specific DLR. (iii) Withdrawal Amount. The Withdrawal Application may be for an amount not to exceed the amount of the Loan confirmed by the World Bank for the specific DLR in respect of which the withdrawal is requested, as specified in the World Bank's notice to the Borrower. (iv) Prior Results. The World Bank confirms that it has received evidence satisfactory to it that the DLRs referred to in categories 1 to 14 of the table in section IV.A.2 of Schedule 2 to the Loan Agreement have been achieved. Consequently, the Borrower may withdraw the amount of USD 10,000,000 for categories 1, 6, 12, and 13 after the Loan Agreement has been declared effective, and DLI's confirmed by the Bank. It following the procedure for all DLIs, including independent verification. (v) Electronic Delivery. Section 10.01 (c) of the General Conditions. The World Bank may permit the Borrower to electronically applications (with supporting documents) through the World Bank's web-based portal (https://clientconnection.worldbank.org) "Client Connection". This option may be effected if the officials designated in writing by the Borrower who are authorized to sign and deliver Applications have registered as users of "Client Connection". The designated officials may deliver Applications electronically by completing the Form 2380, which is accessible through "Client Connection". By signing the Authorized Signatory Letter, the Borrower confirms that it is authorizing such persons to accept Secure Identification Credentials (SIDC) and to deliver the Applications and supporting documents to the World Bank by electronic means. The Borrower may continue to exercise the option of preparing and delivering Applications in paper form. The World Bank reserves the right and may, in its sole discretion, temporarily or permanently disallow the electronic delivery of Applications by the Borrower. By designating officials to use SIDC and by choosing to deliver the Applications electronically, the Borrower 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://worldbank.org and "Client Connection"; and (b) to cause such official to abide by those terms and conditions. II. Financial Reports and Audits. Section 5.09 of the General Conditions. (i) Financial Reports. Interim unaudited Financial Reports (IFRs) will not be required. (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 Important 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 World 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, please contact the World Bank by email at clientconnection@worldbank.org. If you have any queries in relation to the above, please contact Victor Ordonez, Senior Finance Officer at vconde@worldbank.org, with copy to Daisy Lopez Zita, Finance Analyst at dzita@worldbank.org , using the above reference. Yours sincerely, Patchamuthu llla van Country Director, Pa istan South Asia Region Attachment Form of Authorized Signatory Letter Schedule I : Disbursement Provisions Country Islamic Republic of Pakistan Closing Date Section IV.B.3. of Schedule 2 to Loan 8809-PK Borrower Islamic Republic of Pakistan the Loan Agreement. Number Name of the Program Strengthening Markets for Agriculture Disbursement Four (4) months after the closing and Rural Transformation in Puniab Deadline Date date. Disbursement Methods Methods Supporting Documentation Reimbursement (financing of Yes Confirmation issued by the World Bank, and corresponding Withdrawal Application. achieved results)I Advance Yes Req uest The World Bank Office in Islamabad Attendion: Disbursement Management Unit 20 A, Shahrah-e-Jamhuriat Anwar Ali Bhatti Ramna 5, Sector G-5/1 Islamabad, Islamic Republic of Pakistan Attachment 1 Form of Authorized Signatory Letter [Letterhead] Ministry of Finance [Street address] [DATE] The World Bank 1818 H Street, N.W. Washington, D.C. 20433 United States of America Attention: Patchamuthu Illangovan Re: IBRD Loan _ - (Strengthening Markets for Agriculture and Rural Transformation in Punjab Program) I refer to the Loan Agreement between the International Bank for Reconstruction and Development (the "World Bank") and [name of borrower] (the "Borrower"), dated _, providing the above Loan. For the purposes of Section 2.02 of the General Conditions as defined in the Agreement, any ' [one] of the persons whose authenticated specimen signatures appear below is authorized on behalf of the Borrower to sign applications for withdrawal under this Loan. For the purpose of delivering Applications to the World Bank, 2[each] of the persons whose authenticated specimen signatures appears below is authorized on behalf of the Borrower, acting 3[individually] 4Ujointly], to deliver Applications, and evidence in support thereof on the terms and conditions specified by the World Bank. 5[This confirms that the Borrower is authorizing such persons to accept Secure Identification Credentials (SIDC) and to deliver the Applications and supporting documents to the World Bank by electronic means. In full recognition that the World Bank shall rely upon such representations I 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. 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. 5 Instruction to the Borrower: Add this paragraph if the Borrower wishes to authorize the listed persons to accept Secure Identification Credentials and to deliver Applications by electronic means; if this is not applicable, please delete the paragraph. Please delete this footnote in final letter that is sent to the Bank 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 Borrower represents and warrants to the World Bank that it will cause such persons to abide by those terms and conditions.] This Authorization replaces and supersedes any Authorization currently in the World Bank records with respect to this Agreement. [Name], [position] Specimen Signature: [Name], [position] Specimen Signature: [Name], [position] Specimen Signature: Yours truly, / signed / [Position] FOR INTERNAL DISTRIBUTION ONLY Victor Ordonez, WFALA Cleared with and cc: Johannes Georges Pius Jansen, GFAl2 Martin Serrano, LEGES Cc: Akram Abd El-Aziz Hussein El-Shorbagi, GG024