OFFICIAL
The World Bank DOCiU MEJNTS (202) 473-1000
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Washington, D.C. 20433 Cable Address: INTBAFRAD
INTERNATIONAL DEVELOPMENT ASSOCIATION U.S.A. Cable Address: INDEVAS
April 4, 2018
H.E Momodu L. Kargbo
Minister of Finance, Planning and Economic Development
Ministry of Finance, Planning and Economic Development
Treasury Building
George Street
Freetown, Sierra Leone
Re: IDA Financing 5122-SL (Sierra Leone Pay and Performance Project)
Second Restatement to the Disbursement Letter dated June 26, 2012
Additional Instructions: Disbursement
I refer to the Financing Agreement between the International Development Association
(the "Association") and Republic of Sierra Leone (the "Recipient") for the above-referenced
project, dated June 26, 2012. The Agreement provides that the Association may issue additional
instructions regarding the withdrawal of the proceeds of financing IDA 51220 ("Financing").
This letter ("Disbursement Letter"), as revised from time to time, constitutes the additional
instructions.
This Disbursement Letter is a Second Restatement the Disbursement Letter dated June
26, 2012 for the above references project to include direct payment as a disbursement method
under I (i) Sections 2 and supersedes any earlier version in its entirety.
The attached World Bank Disbursement Guidelines for Investment Project Financing,
dated February, 2017 ("Disbursement Guidelines") (Attachment 1), are an integral part of the
Disbursement Letter. The manner in which the provisions in the Disbursement Guidelines apply
to the Financing is specified below. Sections and subsections in parentheses below refer to the
relevant sections and subsections in the Disbursement Guidelines and, unless otherwise defined
in this letter, the capitalized terms used have the meanings ascribed to them in the Disbursement
Guidelines.
I. Disbursement Arrangements
(i) Disbursement Methods (section 2). The following Disbursement Methods may be used
under the Financing
* Direct Payment
* Reimbursement
* Advance Category 1
* Advance Category 2
(ii) Disbursement Requests.
Applications for Withdrawal from the Financing Account (Withdrawal Applications or Disbursement
Requests) may be sent to the Association for amounts under one or more result categories set out in
Schedule 2, Section IV of the Financing Agreement relating to disbursement-linked indicators (DLI), at
any time after the Association has officially notified the Recipient in that it has accepted evidence of
achievement of specific result(s) under a DLI.
(iii) Amount of the disbursement The amount of the Withdrawal Application may be up to the full
amount allocated to the specific result(s) under the DLI and not in excess of the forecast of EEP
expenditures attributable thereto. As DLIs are not scalable for purposes of triggering disbursements, no
disbursements will be made against partially achieved DLIs at verification
(iv) Advance for DLIs Not yet Achieved The Association has agreed to provide advances for specific
result(s) under certain DLI(s) that have not yet been achieved. The Association recovers each advance
when the respective DLI(s) is (are) achieved
(v) Project expenditure Reconciliation. The Project expenditure reconciliation is set out in Section
IV.B of Schedule 2 to the Financing Agreement.
Notwithstanding the foregoing provisions of this Section IV, if the refund is not received within six
months after the Closing Date the Association may provide notice under Section 6.06 of the General
Conditions that the amount of the Financing withdrawn for the excess disbursement is immediately due
and payable together with any other Financing Payments
(vi) Prior Results. The Association has agreed with the Recipient that the results for 3 DLIs under result
category 1 will have been achieved prior to the signing of the Financing Agreement and therefore the
Recipient may request a disbursement of an amount of $3,000,000 after the Financing Agreement is
declared effective, and as long as total government expenditures under the EEPs exceed this capped
amount.
(vii) Disbursement Deadline Date. The Disbursement Deadline Date is six months after the Closing
Date specified in the Financing Agreement. Any changes to this date will be notified by the Association.
(viii) Deposits of Credit Amounts. All withdrawals from the Financing account shall be deposited by
the Association into an account specified by the Recipient and agreed to by the Association. The
Recipient shall ensure that upon each deposit of an amount of the Credit into this account, an equivalent
amount is accounted for in the Recipient's budget management system, in a manner acceptable to the
Association.
(ix) Disbursement Conditions. Please refer to the Disbursement Condition(s) in the Financing
Agreement.
II. Withdrawal of Financing Proceeds
(i) Authorized Signatures (subsection 3.1). A letter in the Form attached (Attachment 2) should
be furnished to the World Bank at the address indicated below providing the name(s) and
specimen signature(s) of the official(s) authorized to sign Applications:
The World Bank
Africanus House
13A Howe Street
Freetown, Sierra Leone
Attention: Country Director for Sierra Leone
(ii) Applications (subsections 3.2 - 3.3). Please provide completed and signed.(a) applications
for withdrawal, together with supporting documents, and (b) applications for special
commitments, together with a copy of the commercial bank letter of credit,] to the address
indicated below:
The World Bank,
Loan Department,
Delta Center, 13th Floor,
Menengai Road, Upper Hill,
Nairobi, Kenya.
Contact Telephone number: +254 20 2936 000.
(iii) Electronic Delivery (subsection 3.4) The World Bank may permit the Recipient to
electronically deliver to the World Bank Applications (with supporting documents) through the
World Bank's Client Connection, web-based portal. The option to deliver Applications to the
World Bank by electronic means may be effected if: (a) the Recipient has designated in writing,
pursuant to the terms of subparagraph (i) of this Section, its officials who are authorized to sign
and deliver Applications and to receive secure identification credentials ("SIDC") from the
World Bank for the purpose of delivering such Applications by electronic means; and (b) all
such officials designated by the Recipient have registered as users of Client Connection. If the
World Bank agrees, the World Bank will provide the Recipient with SIDC for the designated
officials. Following which, the designated officials may deliver Applications electronically by
completing Form 2380, which is accessible through Client Connection
(https://clientconnection.worldbank.org). The Recipient 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 Recipient.
(iv) Terms and Conditions of Use of SIDC to Process Applications. 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 ofSecure Identification Credentials in connection with Use ofElectronic Means to Process
Applications and Supporting Documentation ("Terms and Conditions of Use of Secure
Identification Credentials") provided in Attachment; and (b) to cause such official to abide by
those terms and conditions.
(v) Minimum Value ofApplications (subsection 3.5). USD 100,000
vi) Advances (sections 5 and 6).
Type ofDesignated Account[s] (subsection 5.3):
Designated Account A: Segregated for Advances under Category (1) EEP under Part 1
of the Project
Designated Account B: Segregated for Advances under Category (2) Goods, non-
consulting services, consultants' services (including audits), Operating Costs, Training,
Workshops, and Study Tours under Part 2 of the Project
* Currency ofDesignated Account[s] (subsection 5.4): US Dollars
* Financial Institution at which the Designated Account[s] Will Be Opened (subsection
5.5): Bank of Sierra Leone
* Ceiling (subsection 6.1).
For Designated Account A the amount of advances accordingly to Section IV.B.2 of
Schedule 2 to the Financing Agreement; and
For Designated Account B flexible ceiling will be determined based on the quarterly
IFRs.
III. Reporting on Use of Financing Proceeds
(i) Supporting Documentation (section 4). Supporting documentation should be provided with
each application for withdrawal as set out below:
* For requests for Reimbursement:
o Interim Financial Report (IFR) in the form attached (Attachment 4); and
o List of payments against contracts that are subject to the World Bank's prior
review, in the form attached (Attachment 5)
(ii) Frequency of Reporting Eligible Expenditures Paid from the Designated Account
(subsection 6.3):
a. Half yearly for DA-A
b. Quarterly for DA-B
IV. Other Important Information
For additional information on disbursement arrangements, please refer to the
Disbursement Handbook available on the World Bank's public website at
http://www.worldbank.org and its secure website "Client Connection" at
http://clientconnection.worldbank.org. Print copies are available upon request.
From the Client Connection website, you will be able to download Applications, monitor
the near real-time status of the Financing, and retrieve related policy, financial, and procurement
information.
If you have not already done so, the World Bank recommends that you register as a user
of the Client Connection website (http://clientconnection.worldbank.org). From this website you
will be able to download Applications, monitor the near real-time status of the Financing, 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 the Finance Officer at
WFALDAFR@worldbank.org using the above reference.
Very truly yours,
INTERNATIONAL DEVELOPMENT ASSOCIATION
Maiada assem
Finance Officer
Loan Operations
Attachments
1. World Bank Disbursement Guidelines for Investment Project Financing, dated February,
2017
2. Form for Authorized Signatures
3. Terms and Conditions of Use ofSecure Identification Credentials in connection with Use of
Electronic Means to Process Applications and Supporting Documentation, dated March 1,
2013
4. Form of Interim Financial Report
5. Form of Payments Against Contracts Subject to the World Bank's Prior Review
Prepared by Mugambi Mwendia
Cleared with and cc: Smile Kwawukume
Cc with copies: [Project Implementing Entity 1]
[street address]
[city], [country]
[email address]
Attachment 3
[Letterhead]
Ministry of Finance
[Street address]
[City] [Country]
[DATE]
The World Bank
1818 H Street, N.W.
Washington, D.C. 20433
United States of America
Attention: [Country Director]
Dear [Country Director]:
Re: Financing Advance No. Project
I refer to the Financing Agreement ("Agreement") between the International
Development Association (the "Association") and [name of Recipient] (the "Recipient"), dated
providing the above Financing. For the purposes of Section 2.03 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 Recipient to sign applications
for withdrawal [and applications for a special commitment] under this Financing.
For the purpose of delivering Applications to the Association, 2[eachl of the persons whose
authenticated specimen signatures appears below is authorized on behalf of the Recipient,
acting 3[individually] 4[jointly], to deliver Applications, and evidence in support thereof on the
terms and conditions specified by the Association.
5[This confirms that the Recipient is authorizing such persons to accept Secure
Identification Credentials (SIDC) and to deliver the Applications and supporting documents to
I 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 infinal letter that is sent to the Association.
2 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 infinal letter that is sent to the Association.
I 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 infinal letter that is sent to the Association.
4 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 infinal letter that is sent to the Association.
the World Bank by electronic means. In full recognition that the World Bank 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 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 World
Bank records with respect to this Agreement
[Name], [position] Specimen Signature:
[Name], [position] Specimen Signature:
[Name], [position] Specimen Signature:
Yours truly,
/ signed /
[Position]6
* Instruction to the Recipient: Add this paragraph if the Recipient 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 World Bank.
6 The letter should be signed by the official designated as the Recipient's Representative in the Advance Agreement.
Attachment [31
Terms and Conditions of Use of Secure Identification Credentials
in connection with Use of Electronic Means
to Process Applications
and Supporting Documentation
March 1, 2013
The World Bank (Bank)7 will provide secure identification credentials (SIDC) to-permit the
Borrower8 to deliver applications for withdrawal and applications for special commitments under
the Agreement(s) and supporting documentation (such applications and supporting
documentation together referred to in these Terms and Conditions of Use as Applications) to the
Bank electronically, on the terms and conditions of use specified herein.
SIDC can be either: (a) hardware-based (Physical Token), or (b) software-based (Soft Token).
The Bank reserves the right to determine which type of SIDC is most appropriate.
A. Identification of Users.
1. The Borrower will be required to identify in a completed Authorized Signatory Letter (ASL)
duly delivered to and received by the Bank each person who will be authorized to deliver
Applications. The Bank will provide SIDC to each person identified in the ASL
(Signatory), as provided below. The Borrower shall also immediately notify the Bank if
a Signatory is no longer authorized by the Borrower to act as a Signatory.
2. Each Signatory must register as a user on the Bank's Client Connection (CC) website
(https://clientconnection.worldbank.org ) prior to receipt of his/her SIDC. Registration
on CC will require that the Signatory establish a CC password (CC Password). The
Signatory shall not reveal his/her CC Password to anyone or store or record the CC
Password in written or other form. Upon registration as a CC user, the Signatory will be
assigned a unique identifying account name.
B. Initialization of SIDC.
1. Prior to initialization of SIDC by a Signatory, the Signatory will acknowledge
having read, understood and agreed to be bound by these Terms and Conditions of Use.
"Bank" includes IBRD and IDA.
8 "Borrower" includes the borrower of an IBRD loan, IDA credit, or Project Preparation Facility advance and the
recipient of a grant.
2. Where a Physical Token is to be used, promptly upon receipt of the Physical
Token, the Signatory will access CC using his/her account name and CC Password and
register his/her Physical Token and set a personal identification number (PIN) to be used
in connection with the use of his/her Physical Token, after which the Physical Token will
be initialized for use by the Signatory exclusively for purposes of delivering
Applications. Where a Soft Token is to be used, the Signatory will access CC using
his/her account name and CC Password and set a personal identification number (PIN) to
be used in connection with the use of his/her Soft Token, after which the Soft Token will
be initialized for use by the Signatory exclusively for purposes of delivering
Applications. Upon initialization of the SIDC , the Signatory will be a "SIDC User". The
Bank will maintain in its database a user account (Account) for each SIDC User for
purposes of managing the SIDC of the SIDC User. Neither the Borrower nor the SIDC
User will have any access to the Account.
3. Prior to first use of the SIDC by the SIDC User, the Borrower shall ensure
that the SIDC User has received training materials provided by the Bank in use of the
SIDC.
C. Use of SIDC.
Use of the SIDC is strictly limited to use in the delivery of Applications by the
SIDC User in the manner prescribed by the Bank in the Agreement(s) and these Terms
and Conditions. Any other use of the SIDC is prohibited.
2. The Bank assumes no responsibility or liability whatsoever for any misuse of
the SIDC by the SIDC User, other representatives of the Borrower, or third parties.
3. The Borrower undertakes to ensure, and represents and warrants to the Bank
(such representation and warranty being expressly relied upon by the Bank in granting
SIDC ) that each SIDC User understands and will abide by, these Terms and Conditions
of Use, including without limitation the following:
4. Security
4.1. The SIDC User shall not reveal his/her PIN to anyone or store or record the PIN in
written or other form.
4.2. The SIDC User shall not allow anyone else to utilize his/her SIDC to deliver an
Application to the Bank.
4.3. The SIDC User shall always logout from CC when not using the system. Failure to
logout properly can create a route into the system that is unprotected.
4.4. If the SIDC User believes a third party has learned his/her PIN or has lost his/her
Physical Token he/she shall immediately notify clientconnection(worldbank.org.
4.5. The Borrower shall immediately notify the Bank at
clientconnection(@worldbank.org of any lost, stolen or compromised SIDC, and take
other reasonable steps to ensure such SIDC are disabled immediately.
5. Reservation of Right to Disable SIDC
5.1. The Borrower shall reserve the right to revoke the authorization of a SIDC User to
use a SIDC for any reason.
5.2. The Bank reserves the right, in its sole discretion, to temporarily or permanently
disable a SIDC, de-activate a SIDC User's Account or both.
6. Care of Physical Tokens
6.1. Physical Tokens will remain the property of the Bank.
6.2. The Bank will physically deliver a Physical Token to each Signatory designated to
receive one in a manner to be determined by and satisfactory to the Bank.
6.3. Physical Tokens contain delicate and sophisticated instrumentation and therefore
should be handled with due care, and should not be immersed in liquids, exposed to
extreme temperatures, crushed or bent. Also, Physical Tokens should be kept more than
five (5) cm from devices that generate electromagnetic radiation (EMR), such as mobile
phones, phone-enabled PDAs, smart phones and other similar devices. Physical Tokens
should be carried and stored separate from any EMR device. At close range (less than 5
cm), these devices can output high levels of EMR that can interfere with the proper
operation of electronic equipment, including the Physical Token.
6.4. Without derogating from these Terms and Conditions of Use, other technical
instructions on the proper use and care of Physical Tokens are available at
http://www.rsa.com.
7. Replacement
7.1. Lost, damaged, compromised (in terms of 4.5, above) or destroyed Physical
Tokens will be replaced at the expense of the Borrower.
7.2. The Bank reserves the right, in its sole discretion, not to replace any Physical
Token in the case of misuse, or not to reactivate a SIDC User's Account.
Attachment 4
INTERIM FINANCIAL JEPORT
Government of Sierra Leone - Pay and Performance Project
Statement of Sources and Uses of Funds (in Leones)
Curen Quarlier (Acual) it Um R
Opening Balance
Releases/withdrawals
Total Funds Available
Component I - EEPs
2111 Compensiation of Employees
2112 Compenslation of Employees
2311 Recruitment costs
2312 Training (Local)
Total
Component 2 - TA
2315 Professional Fees/Consultancy
2351 Research Expenses
2399 Annual Statistical /Opinion Surveys
2621 Studies, project Prep., /Design
2248 intelligence Gathering/Records Mgnt
2613 Furniture, Office Equip., Safes
2614 Computers /Ancillary Equipment
2615 Vehicles
Total
Part tFund P osition Dec. 21-ecember, Z1
Total
Leones USD Equiv.
Opening Balance
IDA, including direct paymnents
Total Bank Balance
Actual Expenditures Incured during the period
Component 1
Component 2
Total Expenditure
Balance Available (Closing Balance)
Par 1-Expendkure Forecas ad CashrnRequirme(ixmnts: ]
Funds Available as per Part I
Less Project forecast Use of Funds
Component 1
Component 2
Total Forecast Expenditure _____
Net Cash Postion (Excess I Shortfall) 0 0
Part IlII - Allocation for withdrawal applications
Component 1:
Component 2:
Total
Status of Procurement Contracts
Payments Outstanding Source of
Contract Contractor's Date of State of To Date Commitment Retention Funding
Item No. Contract Description Amount Name Expiration Completion Amount Amount Amount
Attachment 5
Payments Made during Reporting Period
Against Contracts Subject to the Bank's Prior Review