OFFICIAL DOCUMENTS THE WORLD BANK 18RD * IDA I WORLD 8ANK GROUP H.E. Arben Ahmetaj C ) Minister Ministry of Finance and Economy "Deshmoret e Kombit" Boulevard No. 3 Republic of Albania Re: IDA No. 4480 - AL, IBRD No. 8111 - AL, IBRD Loan No. 8862 - AL-AF2 (ECSEE APL5 - Dam Safety Project) Additional Instructions: Disbursement and Financial Information Letter (DFIL) Excellency: I refer to the Loan Agreement between Republic of Albania (the "Borrower") and the International Bank for Reconstruction and Development (the "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 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 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.or . 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 is specified below. (i) Disbursement Arrangements 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 (including minimum value of applications and processing of advances), instructions on supporting documentation, and frequency of reporting on the Designated Accounts. (ii) Electronic Delivery. Section 10.01 (c) of the General Conditions. The Bank may permit the Borrower to electronically deliver applications (with supporting documents) through the Bank's web-based portal (https://clientconnection.worldbank.or ) "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 THE WORLD BANK IBRD * IDA I WORLD BANKGROUP 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 may continue to exercise the option of preparing and delivering Applications in paper form. The 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 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 (i) Financial Reports. The Borrower through the Ministry of Infrastructure and Energy shall cause the PIE to 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. The Borrower through the Ministry of Infrastructure and Energy shall cause the PIE to have the Project's Financial Statements audited in accordance with the provisions of Section 5.09(b) of the General Conditions. Each audit shall cover the period of one fiscal year of the Borrower. For each such period, the audited Financial Statements for the Project shall be (a) furnished to the Bank not later than six (6) months after the end of such period; and (b) made publicly available in a timely fashion and in a manner acceptable to the Bank. 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, please contact the Bank by email at clientconnectionr&@worldbank.org. If you have any queries in relation to the above, please contact Luis Schwarz, Senior Finance Officer at Ischwarz@worldbank.org, with copy to Darjan Dragicevic, Finance Analyst at ddragicevic@worldbank.org using the above reference. Yours sincerely, Maryam Salim Country Manager for Albania Europe and Central Asia Region THE WORLD BANK BRD IDA I WORLD BANKOROUP Attachments 1. Form of Authorized Signatory Letter 2. Form with Statement of Expenditures Cc with copies: H.E. Damian Gjiknuri Minister of the Ministry of Infrastructure and Energy "DEshmorEt e Kombit", Blv.1001 Tirana, Albania Email: sekretaria@infrastruktura.gov.al Or sekretaria@energjia.gov.al Mr. Agron Hetoja CEO - Albanian Power Corporation Blloku Vasil Shanto Tirana, Albania Email: agron.hetoja@kesh.al Schedule I : Disbursement Provisions Basic I nformaton IBRD No. 8862 - AL -AF2 Country Albania Closing Date Section IV.B.2. of Schedule 2 Loan IBRD No. 8111 AFl- AL Borrower Republic of Albania to the Loan Agreement. Number IDA No. 4480 - AL Name of the ECSEE APL5 - Dam Safety Disbursement Deadline Date Four months after the closing Project Project Subsection 3.7 date. Disbursement Methods Methods Supporting Documentation Section 2 Subsections 4.3 and 4.4 Direct Payment Yes Copy of records Reimbursement Yes Statement of Expenditures Designated Account Yes Statement of Expenditures Special Commitments Yes Copy of the Commercial Bank Letter of Credit Type DA X - Segregated for IBRD No.8862-AF2 Ceiling Fixed Financial Institution - Name Bank of Albania (Central Bank) Currency EUR Frequency of Reporting Subsection 6.3 Monthly Amount DA X - Euro 1,700,000 The Minimum Value of Applications: EURO 200,000 The World Bank Radnicka cesta 80/IX 10000 Zagreb, Croatia Attention: Loan Operation Notice that all information will be sent to the same address, and to the regional TL. Categories 1 under IBRD No. XXXX-AF2 will be disbursed onil when all funds from IBRD No. 8111 AFI and IDA No. 4480 would be full) disbursed. " Guidle fOther None "Disbursement Guidelines for Investment Project Financing ", dated February 2017 (Attachment 1 - Form of Authorized Signatory Letter] [Letterhead] Ministry of Finance and Economy [Street address] [City] [Country] [DATE] The World Bank 1818 H Street, N.W. Washington, D.C. 20433 United States of America Attention: [Country Director] Re: IDA No. 4480 - AL, IBRD No. 8111 - AL, IBRD Loan No. 8862 - AL-AF2 (ECSEE APL5 - Dam Safety Project) Additional Instructions: Disbursement and Financial Information Letter (DFIL) I refer to the Loan Agreements ("Agreements") between the International Bank for Reconstruction and Development (the "Bank"), and the Republic of Albania (the "Borrower") for the above-referenced project, IBRD Loan No. 8862 - AL-AF2, dated . This DFIL supersedes the existing Disbursement Letters for IBRD No. 8111 - AL and IDA No. 4480 - AL. For the purposes of Section 2.03 of the General Conditions as defined in the Agreements, any '[one] of the persons whose authenticated specimen signatures appear below is authorized on behalf of the Borrower to sign applications for withdrawal under the Loans. 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, acting 3[individually] 4[jointly], to deliver Applications, and evidence in support thereof on the terms and conditions specified by the 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 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. 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 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 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 this Agreement. [Name], [position] Specimen Signature: [Name], [position] Specimen Signature: [Name], [position] Specimen Signature: Yours truly, / signed / [Position] 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 [Attachment 2 - Statement of Expendituresi Statement of Expenditures (SOE) Payments made during the period from to Date: Application No.: For expenditures against the contracts not subject to the Bank Prior Review Loan: SOE No.: 1 2 3 4 5 6 7 8 9 Item Category Currency and Total Currency and Eligible % Amount Currency and Exchange Rate Remarks No. No. (**) Amount of Contract Total Amount of from Schedule Eligible for Amount Paid from (Col. 7 divided by Invoice Covered I of Financing (4 Special Account (if Col. 6) by Application Loan/Credit x 5) Applicable) (Net of Retention) Agreement TOTALS Supporting documents for this SOE retained at (insert location) (*) A separate SOE form should be used for retroactive financing (**) Items should be grouped by category; or alternatively, a separate SOE form may be used for each category