TATIANA PROSKURYAKOVA Country Director ECARVP April 23, 2022 Mr. Timur Ishmetov Minister of Finance Ministry of Finance Istiqlol Street 29 Tashkent 10001 7 Republic of Uzbekistan Re: IBRD Loan 93530-UZ (Second Rural Enterprise Development Project) Additional Instructions: Disbursement and Financial Information Letter Mr. Ishmetov: I refer to the Loan Agreement between Republic of Uzbekistan (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.org. 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 Account. (ii) Electronic Delivery. Section 10.01 (c) of the General Conditions. The Borrower shall deliver Withdrawal Applications (with supporting documents) electronically through the Bank's web-based portal "Client Connection" at https://clientconnection.worldbank.org. This option will be effected after the officials designated in writing by the Borrower who are authorized to sign and deliver Withdrawal Applications have registered as users of "Client Connection". The designated officials shall 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 Bank by electronic means. The Borrower may exercise the option of preparing and delivering Withdrawal Applications in paper form on exceptional cases (including those where the Borrower encounters legal limitations), and which were previously agreed with the Bank. By designating officials to use SIDC and 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 (i) Financial Reports. The Borrower shall cause the Project Implementing Entity, 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. 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 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, or if you have any queries in relation to the above, please contact the World Bank by email at AskLoan@WorldBank.org using the above reference. Yours sincere!y, Tati~s:ryakova Regional Director for Central Asia Attachments 1. Form of Authorized Signatory Letter (ASL) 2. Form of Statement of Expenditure (SOE) 3. Form of Statement of Expenditure (SOE) for Sub-Loans 4. Form of Request for Tranche Payment for Capitalization of the SFSED 5. Form of Designated Account Reconciliation Statement (DARS) With copies: Ministry of Finance 29 Istiklol street Tashkent, Uzbekistan info@mf.uz Agency for Working Mahallabay and the Development of Entrepreneurship 45 A Islom Katimov street Tashkent, Uzbekistan ade@mineconomy.uz Schedule 1 : Disbursement Provisions Section III.B.2 of Schedule 2 to the Loan Agreement. IBRD 93530-UZ Second Rural Enterprise Development Project Disbursement Four (4) months after the Number Project Deadline Date closing date. Subsection 3. 7 ** Supporting Documentation Section 2 (+ Subsections 4.3 and 4.4 (++ Direct Payment Yes Copy of records (See Additional Instructions section: Request for Tranche Payment in the format rovided in Attachment 4 for Capitalization of the SFSED under Category 4 Reimbursement Yes SOE in the format provided in Attachment 2 of the DFIL for Category 5 SOE for Sub-Loans in the format provided in Attachment 3 of the DFIL for Category 3 Advance (into a Designated Yes SOE in the format provided in Attachment 2 of the DFIL for Category 5 Account) SOE for the Sub-Loans in the format provided in Attachment 3 of the DFIL for Category 3 DARS in the format provided in Attachment 5 of the DFIL Segre Ceilin Fixed Financial Institution - Name To be established at a financial institution acceptable to the Bank USD Frequency ofReporting Monthly 12,000,000 Subsection 6.3 ( An authorized signatory letter in the Form attached (Attachment 1) should be furnished to the 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 Group International Business Center, 15th Floor 107 B, Amir Timur Street, Tashkent 100084, Uzbekistan Attention: Country Manager submitted via the Bank's web-based Portal "Client Connection". a) Funds from the Designated Accounts may be transferred to Project/Transit/Sub Accounts (in local currency) in a financial institute acceptable to the Bank to meet eligible project expenditures, provided that transactions and balance in these accounts are included in all project financial reports. b) Disbursement arrangements for Category 4 - Capitalization of the State· Fund for Support of Entrepreneurship Development (SFSED) under Part 2(b) of the Project: Loan proceeds allocated to the Category 4 of the Project will be disbursed as follows: (i) Loan proceeds would be transferred directly from the Loan account to a Dedicated Account of the SFSED. (ii) The above-mentioned transfer would happen in two tranches and only once the withdrawal condition set in the Loan Agreement for each of the two tranches has been met, which will be officially communicated to the Borrower through an official letter signed by the Bank's Country Director. (iii) Once the above-mentioned official letter has been provided by the Bank to the Borrower, the tranche would be disbursed by the Bank based on the following documents: (A) Withdrawal application for direct payment to SFSED, signed by the authorized signatory/s for the Loan; and (B) Request for the Tranche Payment, signed by the official representative of SFSED, in the format provided in the Attachment 4 of the DFIL. c) Payments to UN Agencies (if any) may be made through UN Advances (with or without a UN Commitment) disbursement mechanism. In case of a contract with a UN Agency requiring a UN Commitment, an application for issuance of UN Commitment is to be submitted by the Borrower. Subsequent payments and documentation of expenditures under the contract must be made in accordance with the Commitment letter to be issued by the Bank and the contract between the Borrower and the UN agency. In case of a UN Advance (without UN Commitment), documentation of expenditure should be made once the final invoice is issued and based on the UN Financial Report. ,Sections and subsections relate to the "Disbursement Guidelines for Investment Project Financing", dated February 2017. Attachment 1- Form of Authorized Signatory Letter (ASL) [Letterhead] Ministry of Finance [Street address] [DATE] The World Bank 1818 H Street, N.W. Washington, D.C. 20433 United States of America Attention: [Country Director] Re: IBRD Loan 93530-UZ Second Rural Enterprise Development Project 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 2.03 of the General Conditions as defined in the Agreement, any 1 [one] ofthe 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 ofdelivering Applications to the World Bank, 2[ each] ofthe persons whose authenticated specimen signatures appears below is authorized on behalf of the Borrower, acting [individually] '[jointly], to deliver Applications, and evidence in support thereof on the terms and conditions specified by the World 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 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 Borrower represents and warrants to the World Bank that it will cause such persons to abide by those terms and conditions. ' 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 thisfootnote in final letter that is sent to the Bank. 2 Instruction to the Borrower: Stipulate ifmore than one person needs to jointly sign Applications, if so, please indicate the actual number. Please delete thisf ootnote infinal letter that is sent to the Bank. 3 Instruction to the Borrower: Use this bracket ifany one of the authorized persons may sign; if this is not applicable, please delete. Please delete thisfootnote 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 thisfootnote in final letter that is sent to the Bank. 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] Attachment 2- Form of Statement of Expenditure (SOE) Statement of Expenditure (SOE) for Goods, Services, Training, and Incremental 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 Contract Type of Good or Currency and Currency and Total % Amount Currency and Exchange Date of Remarks Name Number in Client Service Total Amount, Amount of Invoice Financed Eligible Amount Paid Rate Payment Connection (GO/WK/CS/TR/IOC) and Date of Covered by Application by IBRD for from (for Prior Review / Brief Description Contract (Exclusive of Taxes, Financing Designated Contracts) other than Withheld (5 X 6) Account (if Taxes) Applicable) TOTALS Supporting documents for this SOE retained at (location) Attachment 3 - Form of Statement of Expenditure (SOE) for Sub-Loans Statement of Expenditure (SOE) for Sub-Loans Payments made during the period from o Loan No.: Application No.: Category No.: SOE No.: 1 2 3 4 5 6 7 8 9 10 11 Name and Name of Currency of Amount of Date of Amount Paid % Amount Exchange Date of Remarks Number of the Beneficiary of Sub-Loan Sub-Loan Sub-Loan in this Financed Eligible for Rate Payment Sub-Loan Sub-Loan Application by IBRD Financing (6 X 7) TOTALS Supporting documents for this SOE retained at (location) Attachment 4 - Form of a Request for Tranche Payment for Capitalization of the SFSED [SFSED Letterhead] [Date] • The World Bank 1818 H Street, N.W. Washington, D.C. 20433 United States of America Attention: [Country Director] Subject: Re: IBRD Loan 93530-UZ Second Rural Enterprise Development Project Request for Tranche Payment for Capitalization of the SFSED Dear Sir/ Madam, We refer to the Loan Agreement ("Agreement") between the International Bank for Reconstruction and Development (the "Bank") and the Republic of Uzbekistan (the "Borrower"), dated , providing the above Loan. In accordance with the provisions of the Disbursement and Financial Information Letter for the said Loan, to support the implementation of the above Project and to facilitate the achievement of its objectives, we request the [first/second] tranche payment in the amount of [insert amount]. We request that the tranche be disbursed in [currency] to the following account: Beneficiary name: Beneficiary bank: Account name (if different from Beneficiary name): Account number: Swift BIC code: Intermediary bank: Intermediary bank account number: Sincerely, [insert Name, and Position] 5 To be signed by the official representative of the SFSED. Attachment 5- Form of Designated Account Reconciliation Statement (OARS) LOAN NUMBER ----------- ACCOUNT NUMBER WITH(BANK) 1. TOTAL ADVANCED BY WORLD BANK (OR COFINANCIER) 2 LESS: TOTAL AMOUNT RECOVERED BY WORLD BANK 3. EQUALS PRESENT OUTSTANDING AMOUNT ADVANCED TO THE DESIGNATED ACCOUNT (NUMBER 1 LESS NUMBER 2) 4. BALANCE OF SPECIAL ACCOUNT PER ATTACHED BANK STATEMENT AS OF DATE -------- 5. PLUS: TOTAL AMOUNT CLAIMED IN THIS APPLICATION NO. _ + * 6. PLUS: TOTAL AMOUNT WITHDRAWN AND NOT YET CLAIMED REASON; + * 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 + 8. MINUS: INTEREST EARNED * 9. TOTAL ADVANCE ACCOUNTED FOR (NO. 4 THROUGH NO. 9) 10. EXPLANATION OF ANY DIFFERENCE BETWEEN THE TOTALS APPEARING ON LINES 3 AND 9: 11. DATE: _ SIGNATURE: TITLE: _