South Caucasus Regional Office 09-Jun-2021 ______________________ H.E. Lasha Khutsishvili Minister of Finance Ministry of Finance 16 Gorgasali Street, Tbilisi, Georgia Re: IBRD Loan No. 9113-GE Georgia Emergency COVID-19 Response Project and IBRD Loan No. 9273-GE AF for Georgia Emergency COVID-19 Response Project Additional Instructions: Disbursement and Financial Information Letter (DFIL) Excellency: I refer to the Loan Agreements (“Agreement”) between International Bank for Reconstruction and Development (“Bank”), and Georgia (“Borrower”) for the above-referenced projects, IBRD Loan No. 9113-GE and IBRD Loan No. AF 9273-GE. The General Conditions, as defined in the Loan Agreements, 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 specify Project specific financial reporting requirements. I. Disbursement Arrangements, Withdrawal and Reporting of Loan Proceeds 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 this DFIL, and the manner in which the provisions in the Disbursement Guidelines apply to the Loan is specified below. (i) Disbursement Arrangements  General Provisions (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 (including minimum value of applications and processing of advances), instructions on supporting documentation, and frequency of reporting on the Designated Account. (ii) Electronic Delivery. Refer to 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.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 5A, Ramishvili Street 1818 H Street, N.W. Tbilisi 0179, Georgia Washington, DC 20433, USA Tel: +995 (32) 291 30 96 Tel: +1 (202) 473 7252 Fax: +995 (32) 291 34 78 Fax: +1 (202) 522 3607 South Caucasus Regional Office 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 Bank by electronic means. 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 shall 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, in form and substance satisfactory to the Bank. Where a UN agency is contracted by the Borrower, the Borrower is responsible to ensure that the financial reporting requirements applicable to the UN Agency are stipulated in the agreement between the Borrower and the UN agency and met in a timely manner. (ii) Audits. The Borrower shall have the Project's Financial Statements audited by the independent auditor acceptable to the World Bank 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. Where a UN agency is contracted by the Borrower, the Borrower is responsible to ensure that the documentation requirements applicable to the UN agency, for project audit purposes, are stipulated in the agreement between the Borrower and the UN agency. III. Other Information For additional information on disbursement arrangements, please refer to the Loan Handbook available on the Bank’s public website 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 askloans@worldbank.org. Yours sincerely, ______________________________ Sebastian Molineus Regional Director for the South Caucasus South Caucasus Regional Office Attachments 1. Form of Authorized Signatory Letter 2. Form of Statement of Expenditure (SOE) 3. Form of Statement of Expenditure (SOE) for Cash Transfers 4. Form of Designated Account Reconciliation Statement Cc with copies: Schedule 1: Disbursement Arrangements Basic Information Country Georgia Closing Date Section III.B.2. of Schedule 2 to the Loan IBRD 9113-GE Borrower Georgia Agreement Loan Numbers IBRD AF 9273-GE Name of the Georgia Emergency COVID-19 Response Disbursement Project Project and AF for Georgia Emergency Deadline Date Four months after the Closing Date COVID-19 Response Project (Subsection 3.7 **) Disbursement Methods and Supporting Documentation Disbursement Methods Supporting Documentation Methods (Section 2 **) (Subsections 4.3 and 4.4 **) Direct Payment Yes Copy of records (e.g. suppliers’ invoices, guarantees for advance and retention payments, etc.) Statement of Expenditure (SOE) in the formats provided in Attachment 2 of the DFIL including the Reimbursement Yes corresponding Cash Transfers Statement of Expenditure in the format as in Attachment 3 to DFIL Statement of Expenditure (SOE) in the formats provided in Attachment 2 of the DFIL including the Designated Accounts Yes corresponding Cash Transfers Statement of Expenditure in the format as in Attachment 3 to DFIL Special Commitments Yes Copy of Letter of Credit or UN Agency request for transfer of funds Designated Account (Sections 5 and 6 **) Pooled account to be managed by the MoILHSA for funds from the WB at 45% and AIIB 55% for IBRD Loan No. 9113 Type Ceiling Variable Pooled account to be managed by the MoILHSA 100% for IBRD Loan No._____ Treasury Account of the Ministry of Finance with National Financial Institution - Name Currency EUR Bank of Georgia. Advances to be based on forecast of funds required Frequency of Reporting (Subsection 6.3 **) Quarterly Amount for the semester and approved by the TTL Minimum Value of Applications (Subsection 3.5) The minimum value of applications for Reimbursement and Direct Payment is EUR 200,000 equivalent. 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 **) The World Bank Radnicka cesta 80, 9th floor Zagreb, HR-10000 Croatia Attention: Loan Department (WFACS) Additional Instructions  The distribution of funds under the joint co-financing in each WA would be at WB 45% and AIIB 55% for all disbursement methods only applies to the original IBRD Loan 9113, and 100% financing by the WB for the Additional Financing using the existing DA as a pooled account.  All disbursements to UN Agencies against contracts with UN Agencies will be based on UN-Type Blanket Commitment and will be done against payment request from the UN Agency  Withdrawal Category 2 - the recognition of eligible expenditures against Withdrawal Category 2 depends on the Task Team verification of the Cash Transfers Statement of Expenditure (CT SOE) evidencing eligible expenditures.  With respect to Cash Transfers under Categories 2 the Borrower may request withdrawals of Credit proceeds when the relevant expenditures have been incurred. Such withdrawals are to be done to the Designated Account and will be considered as an advance until the final verification of the CTs were completed. Other Disbursement Instructions None ** Sections and subsections relate to the “Disbursement Guidelines for Investment Project Financing”, dated February 2017. [Attachment 1 – Form of Authorized Signatory Letter] [Letterhead] Council of Ministers [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: IBRD Loan No. 9113-GE Georgia Emergency COVID-19 Response Project and IBRD Loan No. 9273-GE AF for Georgia Emergency COVID-19 Response Project Additional Instructions: Disbursement and Financial Information Letter (DFIL) Excellency: I refer to the Loan Agreement (“Agreement”) between International Bank for Reconstruction and Development (“Bank”), and Georgia (“Borrower”) for the above-referenced projects, IBRD Loan No. 9113, and IBRD Loan No. 9273 dated ________________ providing the above Loan. For the purposes of Section 2.03 of the General Conditions as defined in the Agreement, any 1[one] of the persons whose authenticated specimen signatures appear below is authorized on behalf of the Borrower to sign applications for withdrawal and applications for a special commitment under this Loan. For the purpose of delivering Applications to the Bank, including by electronic means, 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. This confirms that the Borrower is authorizing such persons to accept Secure Identification Credentials (SIDC) and to deliver the Applications and supporting documents to 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. 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] Attachment 2 – Form of Statement of Expenditure Statement of Expenditure (SOE) For Goods, Works, Services, Training, Operating Costs Payments made during the period from ________________ to ______________ Loan No.: Application No.: Category No.: SOE No.: 1 2 3 4 5 6 7 8 9 10 11 Supplier’s WB Type of Good or Currency and Total Currency and % Financed Amount Currency and Exchange Date of Remarks Name Contract Service Amount, and Date of Total Amount by Eligible Amount Paid Rate Payment Number in (CW/GO/CS/OP/TR) Contract of Invoice IBRD/IDA/TF for from Client / Brief Description Covered by Financing Designated Connection Application (5 x 6) Account (if (for Prior Applicable) Review Contracts) TOTALS Supporting documents for this SOE retained at ___________________________________________ (location) Attachment 3 – Form of Cash Transfers Statement of Expenditure (To be confirmed by FMS) Cash Transfers Statement of Expenditure (SOE) Payments made during the period from ________________ to ______________ Loan No.: Application No.: Category No.: SOE No.: _______ The following expenditures have been incurred during the retroactive financing period (please tick) Yes No The following expenditures have been incurred during before the closing date of the loan (please tick) Yes No 1 3 4 5 6 7 8 9 10 Beneficiary’s name Corresponding Currency and Total % Financed Amount Exchange Currency and Date of Remarks PBC No. Amount of Cash by IDA Eligible for Rate Amount Paid Payment Transfer Financing from Designated (4 x 5) Account (if Applicable) TOTALS Supporting documents for this SOE retained at __________________________________________ (location) Attachment 4 – Form of Designated Account Reconciliation Statement DESIGNATED ACCOUNT RECONCILIATION STATEMENT LOAN/CREDIT/PPF/COFINANCIER NUMBER ______________ ACCOUNT NUMBER ______________ WITH (BANK) __________________________ 1. TOTAL ADVANCED BY WORLD BANK (OR COFINANCIER) US$/EUR _______________________ 2 LESS: TOTAL AMOUNT RECOVERED BY WORLD BANK - US$/EUR _______________________ 3. EQUALS PRESENT OUTSTANDING AMOUNT ADVANCED TO THE DESIGNATED ACCOUNT (NUMBER 1 LESS NUMBER 2) = US$/EUR _______________________ =========================================================== 4. BALANCE OF DESIGNATED ACCOUNT PER ATTACHED BANK STATEMENT AS OF DATE ______________________ US$/EUR _______________________ 5. PLUS: TOTAL AMOUNT CLAIMED IN THIS APPLICATION NO. _______________ + US$/EUR _______________________ 6. PLUS: TOTAL AMOUNT WITHDRAWN AND NOT YET CLAIMED REASON: ___________________________________ + US$/EUR _______________________ 7. PLUS: AMOUNTS CLAIMED IN PREVIOUS APPLICATIONS NOT YET CREDITED AT DATE OF BANK STATEMENTS APPLICATION NO. AMOUNT _________________ _________________ _________________ _________________ SUBTOTAL OF PREVIOUS APPLICATIONS NOT YET CREDITED + US$/EUR _______________________ 8. MINUS: INTEREST EARNED - US$/EUR _______________________ 9. TOTAL ADVANCE ACCOUNTED FOR (NO. 4 THROUGH NO. 9) = US$/EUR _______________________ 10. EXPLANATION OF ANY DIFFERENCE BETWEEN THE TOTALS APPEARING ON LINES 3 AND 9: ____________________________________________________________________________________________________ ________________________________________________________________________________________________ 11. DATE: __________________________ SIGNATURE: _________________________ TITLE: ______________________________