OFFICIAL The World Bank DO,QIMENTS (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 Prof. Alexandre Lyambabaje Executive Secretary Inter-University Council of East Africa Plot M833, Kigobe Road P.O. Box 7110 Kyambogo, Kampala Africa: Proposed East Africa Skills for Transformation and Regional Integration Project Project Preparation Advance No. V195 Additional Instructions: Disbursement Dear Sir: I refer to the Advance Agreement between the Inter-University Council for East Africa ("Recipient" or "IUCEA") and the International Development Association ("World Bank") of same date herewith for the above-referenced project (the "Agreement"). The Agreement provides that the World Bank may issue additional instructions regarding the withdrawal of the proceeds of the Project Preparation Advance V195 ("PPA"). This letter ("Disbursement Letter"), as revised from time to time, constitutes the additional instructions. The attached Disbursement Guidelines for Investment Project Financing, dated February 1, 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 Advance 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 PPA: * Reimbursement * Direct Payment * Advance (ii) Disbursement Deadline Date (subsection 3.7). The Disbursement Deadline Date is the Refinancing Date specified in the Agreement. Any changes to this date will be notified by the World Bank. II. Withdrawal of PPA 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, Resident Mission Pretoria, South Africa Attention: Mr. Paul Noumba Um, Coordinating Director for Regional Integration in East and Southern Africa (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:'/clienteonnection.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 of Secure Identification Credentials in connection with Use of Electronic Means to Process Applications and Supporting Documentation ("Terms and Conditions of Use of Secure Identification Credentials") provided in Attachment 3; and (b) to cause such official to abide by those terms and conditions. (v) Minimum Value of Applications (subsection 3.5). The Minimum Value of Applications will be 20% of the advance ceiling amount. (vi) Advances (sections 5 and 6). * Type of Designated Account (subsection 5.3): Segregated * Currency of Designated Account (subsection 5.4): USD * Financial Institution at which the Designated Account Will Be opened (subsection 5.5(a) Citibank Uganda * Ceiling (subsection 6.1): USD 500,000 III. Reporting on Use of PPA Proceeds (i) Supporting Documentation (section 4). Supporting documentation should be provided with each application for withdrawal as set out below: * For requests for Reimbursement and for reporting eligible expenditures paid from the Designated Account: o Form for Statement of Expendituresin 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) * For requests for Direct Payment: records evidencing eligible expenditures, e.g., copies of receipts, supplier invoices (ii) Frequency of Reporting Eligible Expenditures Paid from the Designated Account (subsection 6.3): Monthly. IV Other Disbursement Instructions Funds from the Designated Account may be transferred to Transaction Accounts in local currency to meet eligible expenditures, provided that transactions and balance in this account are included in all project Financial reports and in the reconciliation. V. Other Important Information For additional information on disbursement arrangements, please refer to the Disbursement Handbook available on the World Bank's public website at https://www.worldbank.org and its secure website "Client Connection" at https://clientconnection.worldbank.or . 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 PPA, 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 (https://clientconnection.worldbank.orm). From this website you will be able to prepare and deliver Applications, monitor the near real-time status of the PPA, and retrieve related policy, financial, and procurement information. All Recipient officials authorized to sign and deliver Applications by electronic means are required to register with Client Connection before electronic delivery can be effected. For more information about the website and registration arrangements, please contact the World Bank by email at . If you have any queries in relation to the above, please contact Issa Thiam, Finance Officer at LOA-AFR@worldbank.org using the above reference. Very truly yours, INTERNATIONAL DEV LOP T ASSOCIATION Attention: Mr. Paul a m Coordinating Director for Regional Integration in East and Southern Africa Africa Region Attachments 1. World Bank Disbursement Guidelines for Projects, dated February 1, 2017 2. Form for Authorized Signatures 3. Terms and Conditions of Use of Secure Identification Devices in connection with Use of Electronic Means to Process Applications and Supporting Documentation, dated March 1, 2013, 4. Form for Statement of Expenditures (SOE) 5. Form of Payments Against Contracts Subject to the World Bank's Prior Review