THE WORLD BANK IBRD * IDA I WORLD BANKGROUP O FFICIAL April27,2018 DOCUMENTS Ms. Bana Kaloti Regional Director, Middle East United Nations Office for Project Services Middle East Region, Operational Hub in Amman Deir Ghbar Al-Shakereen Street P.O. Box 941655 Amman 11194 Jordan Re: IDA Grant D301-RY (Yemen Emergency Electricity Access Project) Additional Instructions: Disbursement and Financial Information Letter (DFIL) Dear Ms. Kaloti: I refer to the Financing Agreement between the United Nations Office for Project Services (for the benefit of the Republic of Yemen) (the "Recipient") and the International Development Association (the "Association") for the above-referenced project, of even date herewith. The General Conditions, as defined in the Financing Agreement, provide that the Association may issue additional instructions regarding the withdrawal of the proceeds of IDA Grant No. D301-RY ("Financing"), and specify certain financial management reporting and audit requirements. This letter ("Disbursement and Financial Information Letter" or "DFIL"), as revised from time to time, constitutes such additional instructions. The Disbursement Guidelines for Investment Project Financing dated February 2017, ("Disbursement Guidelines") are available in the Association's public website at https://www.worldbank.orn and its secure website "Client Connection" at https://clientconnection.worldbank.org. The Disbursement Guidelines are an integral part of this Disbursement and Financial Information Letter, subject to the provisions of the Financial Management Framework Agreement ("FMFA"), and the manner in which the provisions in the guidelines apply to the Financing is specified below. I. Disbursement Arrangements, Withdrawal and Reporting of Financing Proceeds (i) Disbursement Arrangements: The table in Schedule 1 provides the disbursement method, information on registration of authorized signatures, processing of withdrawal applications, instructions on supporting documentation, and frequency of reporting on the Designated Account. (ii) Electronic Delivery. Refer to section 11.01(c) of the General Conditions: The Association may permit the Recipient to electronically deliver applications (with supporting documents) through the Association's web-based portal (https://clientconnection.worldbank.org) "Client Connection". This option may be effected if: -2- (a) the Recipient has designated in writing, its officials who are authorized to sign and deliver Applications and to receive Secure Identification Credentials ("SIDC") from the Association 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". The designated officials may deliver Applications electronically by completing the Form 2380, which is accessible through "Client Connection". The Recipient may continue to exercise the option of preparing and delivering Applications in paper form. The Association reserves the right and may, in its sole discretion, temporarily or permanently disallow the electronic delivery of Applications by the Recipient. 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://worldbank.org and "Client Connection"; and (b) to cause such official to abide by those terms and conditions. II. Financial Reports (i) Financial Reports. The Recipient shall prepare and furnish to the Association not later than forty-five (45) days after the end of each 3 calendar months, interim unaudited financial reports (IFR) for the Project covering the three calendar months. (ii) Audits. The Recipient shall ensure that the audit of the Project is governed by: (i) Article VI of the Financial Regulations and (ii) the Financial Management Framework Agreement. 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 Financing, and retrieve related policy, financial, and procurement information. For more information about the website and registration arrangements, please contact the Association by email at clientconnection@worldbank.org. If you have any queries in relation to the above, please contact Eric Ranjeva, Finance Officer at eranievaAworldbank.org, with copy to Khaled Mohamed Ben Brahim, Finance Analyst at kbenbrahimAworldbank.or , using the above reference. Yours sincerely, By: :_ _ _ Asad Alam Country Director for the Republic of Yemen Middle East and North Africa Region Attachments 1. Form of Authorized Signatory Letter 2. Form of Interim unaudited Financial Report (IFR) -3- Schedule 1 : Disbursement Arrangements Country Republic of Yemen Closing Date Section IV.B.5. of Schedule 2 Recipient UNITED NATIONS OFFICE FOR to the Financing Agreement. Grant D301-RY PROJECT SERVICES Number Name of the Project Yemen Emergency Electricity Disbursement Four months after the closing Access Project Deadline Date date. Subsection 3.7 ** Disbursement Methods Methods Supporting Documentation Section 2 (**) Subsections 4.3 and 4.4 (**) Direct Payment No Not Applicable Reimbursement No Not Applicable Designated Account No Interim unaudited Financial Report (IFR) in the format provided in Attachment 2 of the DFIL S ecial Commitments No Not Applicable All advances made by the Association will be deposited into an official UNOPS bank account in accordance with the Forecast for 6 months of Type applicable provisions of the Financial Regulations and Rules Ceiling implementation as provided in the of UNITED NATIONS OFFICE FOR PROJECT Interim Financial Report SERVICES Financial Institution - Not Applicable Currency USD Name Frequency of Reporting Same as IFR: Quarterly Amount Not Applicable Subsection 6.3 (**)SRy A letter in the Form attached (Attachment 2) should be furnished to the Association at the address indicated below providing the name(s) and specimen signature(s) of the official(s) authorized to sign Applications: The World Bank 1818 H Street, N.W. Washington, D.C. 20433 United States of America Attention: Asad Alam, Country Director -4- Please provide completed and signed (a) applications for withdrawal, together with supporting documents, to the address indicated below: The World Bank Radnicka Cesta 80, 9th floor Zagreb 10000, Croatia Attention: World Bank Group Finance & Accounting (ex-Loan Department) Transfers made to Micro Finance Institutions and not spent yet for purchases of goods or delivery of services cannot be reflected as expenditures and should be reflected as outstanding advances in the Designated Account Reconciliation -5- Attachment 1 - Form of Authorized Signatory Letter [Letterhead] UNOPS [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 Grant No. D301-RY (Yemen Emergency Electricity Access Project) I refer to the Financing Agreement ("Agreement") between the International Development Association (the "Association") and United Nations Office for Project Services (the "Recipient"), dated , providing the above Financing. 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 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. 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 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 in final 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. 3 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. 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. -6- 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 Association records with respect to this Agreement. [Name], [position] Specimen Signature: [Name], [position] Specimen Signature: [Name], [position] Specimen Signature: Yours truly, / signed / [Position] -7- Attachment 2 - Form of Interim unaudited Financial Report Interim Financial Reports IA Sources and Uses of Funds Statement by components/ activities For the period endin2 Actual Planned Variance Current Year to Cumulative Current Year to Cumulative Period Date (as (as at Period Date (as (as at Current Year to Cumulative (as at at (as at (as at at (as at Period Date xx/xxxx) xx/xxxx) xx/xxxx) xx/xxxx) xx/xxxx) xx/xxxx) Sources of Funds IDA Funds Received Funds from MFIs Interest Earned Forex gain/loss Total Funds Received Expenditures Component 1: Financing for off- grid solar Sub-component 1.1 Providing Basic Electricity Supply for Households Grants for Microfinance institution (MFI) 1 Grants for Microfinance institution (MFI) 2 Grants for Microfinance institution (MFI) n Sub-total 1.1 -8- Sub-component 1.2 Restoring Electricity for Critical Services Facilities Grant solar systems to critical service facilities (health) Grant solar systems to critical service facilities (school) Grant solar systems to critical service facilities (water) Grant solar systems to critical service facilities (other) Sub-total 1.2 Component 2: Implementation Support and Market Development Subcomponent 2.1: Project Implementation and Management Support (a) Recipient's Indirect Costs (b) Recipient's Direct Costs for management and supervision c) Independent audits of Project activities d) Establishment of a Grievance Redress Mechanism (GRM) system sub-total 2.1 Subcomponent 2.2: Third Party Monitoring Verification and field monitoring of Project activities, including provision of consultancy services required for Third Party Monitoring sub-total 2.2 Sub-component 2.3 Market Development -9- (a) Awareness campaign and consultations (b) Technical training and capacity building (c) Technical standard definition and dissemination, and establishment of testing centers (d) Support for recycling of batteries sub-total 2.3 Component 3: Contingent Emergency Response Total Expenditures Cash Receipts less Expenditures Opening Cash Balance Ending Cash Balance - 10 - Interim Financial Reports IB Uses of Funds Statement by cate2ory of expenditures For the period ending Actual Amount Ata Category Disbursement Category Current Year to Date Cumulative Committed Period Expenditures Expenditures Expenditure Grants for solar solutions, and 1 restorations of electricity supply under Components 1.1 and 1.2 of the Project Recipient Indirect Cost payable under 2 Component 2.1(a) of the Project (3% of the total Financing) 3a (i) Recipient's Direct Cost under Component 2.1(b) of the Project 3b (ii) Recipient's Third Party Monitoring under Component 2.2 of the Project (iii) Consultants services under 3c Component 2.1 (c), 2.1 (d), and 2.3 of the Project 4 Emergency Expenditures under Component 3 of the Project Total Expenditures - 11 - Interim Financial Reports IC Uses of Funds Statement by Governorate Governorate Name For the period endin2 Actual Current Year to Date Cumulative (as Period (as at (as at xx/xxxx) at xx/xxxx) xx/xxxx) Expenditures by Governorate Component 1: Financing for off-grid solar Sub-component 1.1 Providing Basic Electricity Supply for Households Grants for Microfinance institution (MFI) Name Sub-total 1.1 Sub-component 1.2 Restoring Electricity for Critical Services Facilities Grant solar systems to critical service facilities (health) Grant solar systems to critical service facilities (school) Grant solar systems to critical service facilities (water) Grant solar systems to critical service facilities (other) Sub-total 1.2 Total Expenditures, Component 1, Governorate Name -12- Interim Financial Reports JD Cash Forecast & Advance Requested For the period ending Cash Cash Cash Cash Total Cash Requirements Requirements Requirements Requirements requirements for the 1st for the 2nd for the 3rd for 4th for 4 Quarters Disbursement Category quarter Quarter ending Quarter ending Quarter ending XX/XX/XXXX XX/XX/XXXX ending XX/XX/XXXX XX/XX/XXXX Grants for solar solutions, and restorations of electricity supply under Components 1.1 and 1.2 of the Project Recipient Indirect Cost payable under Component 2.1(a) of the Project (3% of the total Financing) Recipient's Direct Cost under Component 2.1(b) of the Project Recipient's Third Party Monitoring under Component 2.2 of the Project Consultants services under Component 2.1(c), 2.1(d), and 2.3 of the Project Emergency Expenditures under Component 3 of the Project Total Total Cash Expenditures forecasted for the next 4 Quarters Closing Cash Balance as per the end of reporting period Additional Advance Requested - 13 - Interim Financial Reports JE Reconciliation for period ending xxxx Project Account Amount advanced by World Bank WA#1 WA#2 WA#3 WA#4 WA#5 WA#6 WA#7 Expenditures paid Outstanding advances Inventory Closing balance Date Names and Titles of Representatives Signatures - 14 - Interim Financial Reports IF Solar Systems Inventory Tracking Sub-component 1.1 Providing Basic Electricity Supply for Households Quantity Unit Cost Cost Solar Systems Procured and Received (UNOPS) - Inventory Solar Systems delivered by UNOPS to MFIs - Expense Solar Systems delivered by MFIs to beneficiaries Sub-component 1.2 Restoring Electricity for Critical Services Facilities Quantity Unit Cost Cost Solar Systems Procured and Received (UNOPS) - Expense Solar Systems delivered and installed at facilities -15- Interim Financial Reports I G MFI's Reconciliation Beneficiaries contribution MFI received MFI's Cost Variance Microfinance institution (MFI) 1 Microfinance institution (MFI) 2 Microfinance institution (MFI) n Amounts Advance MFI Grant Amount Advance amount Liquidated Balance Grants to Microfinance institution (MFI) 1 Grants to Microfinance institution (MFI) 2 1 Grants to Microfinance institution (MFI) n I