NDIAME DIOP Country Director Brunei, Malaysia, Philippines, and Thailand 25-Dec-2021 ______________ Honorable Carlos G. Dominguez Secretary Department of Finance Department of Finance Building Roxas Boulevard corner P. Ocampo Sr. Street Manila 1004 Philippines Re: IBRD Loan No. 9328-PH Philippines COVID-19 Emergency Response Project – Additional Financing 2 Additional Instructions: Disbursement and Financial Information Letter Excellency: I refer to the Loan Agreement between Republic of the Philippines (the “Borrower”) and the International Bank for Reconstruction and Development (“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 signatories, 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(s). (ii) Withdrawal Applications Electronic Delivery The Borrower will deliver Withdrawal Applications (with supporting documents, “Applications”) 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 Applications have registered as users of “Client Connection”. The designated officials will deliver Applications electronically by 2 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 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 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://www.worldbank.org and “Client Connection” at https://clientconnection.worldbank.org; and (b) to cause such officials to abide by those terms and conditions. II. Financial Reports and Audits (i) Financial Reports The Borrower must prepare and furnish to the Bank not later than sixty days (60) days after the end of each calendar semester, interim unaudited financial reports (“IFRs”) for the Project covering the semester. The Borrower shall cause the UN agency to provide IFRs as stipulated in the agreement between the Borrower and the UN agency in a timely manner. (ii) Audits Each audit of the Financial Statements must cover the period of one (1) 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. The Borrower shall cause the UN agency to provide the project audit report as stipulated in the agreement between the Borrower and the UN agency in a timely manner. III. Other Important Information For additional information on disbursement arrangements, please refer to the Loan Handbook available on the Bank’s public website at https://www.worldbank.org and “Client Connection” at https://clientconnection.worldbank.org. 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 Bank by email at askloans@worldbank.org using the above reference. Yours sincerely, ______________________________ Ndiame Diop Country Director Brunei, Malaysia, Philippines, and Thailand East Asia and Pacific Region 3 Attachments 1. Form of Authorized Signatory Letter 2. Form of Interim unaudited Financial Report (IFR) With copies: Hon. Carlos G. Dominguez Secretary Department of Finance Department of Finance Building Roxas Boulevard corner P. Ocampo Sr. Street Manila, Philippines 1004 Email: secfin@dof.gov.ph Telephone: 8523-9220 Hon. Francisco T. Duque III Secretary Department of Health San Lazaro Compound, Tayuman, Sta. Cruz, Manila, Philippines 1003 Email: ftduque@doh.gov.ph Telephone: 8651-7800 local 1114, 1108 4 Schedule 1 : Disbursement Provisions A. Basic Information Country The Republic of the Philippines Closing Date Section III.B.2 of Schedule 2 to IBRD Loan the Loan Agreement. Loan Borrower Department of Finance No. 9328- Number Name of the Project Philippines COVID-19 Emergency Disbursement Four (4) months after the closing PH Response Deadline Date1 date B. Disbursement Methods and Supporting Documentation Disbursement Methods2 Methods Supporting Documentation3 Direct Payment Yes Records (Supplier Invoices/Copy of Receipts) Reimbursement Yes Statement of Expenditure, in the format provided in Attachment 2 of the DFIL Advance (into a Designated Yes DA-5: Statement of Expenditure, in the format provided in Attachment 2 of the DFIL Account) Special Commitments Yes Supplier Invoice Copy of Letter of Credit C. Designated Account(s)4 Type and Management Unit DA-5: Segregated – to be managed by Department of Health Ceiling DA-5: Variable Financial Institution - DA-5: The Bureau of Treasury Single Account at the Bangko DA-5: USD Sentral ng Pilipinas Currency Name DA-5: Quarterly DA-5: Forecast for two quarters as per Frequency of Reporting5 Amount IFRs and approved by the Bank D. Minimum Value of Applications6 The minimum value of applications for Direct Payment, Reimbursement, Commitment Issuance-SC and Commitment Issuance-UN Blanket is USD 50,000 equivalent. E. Authorized Signatories7 Withdrawal and Documentation Applications8 The form for Authorized Signatory Letter is provided in Attachment 1 of this letter. For notes in Schedule 1: Sections and subsections relate to the “Disbursement Guidelines for Investment Project Financing”, dated February 2017. 1 Subsection 3.7 2 Section 2 3 Subsections 4.3 and 4.4 4 Sections 5 and 6 5 Subsection 6.3 6 subsection 3.5 7 Subsection 3.1 and 3.2 8 Subsection 3.3 and 3.4 5 All Applications and its supporting documentation, and Authorized Signatory Letter will be electronically sent via the Bank’s system “Client Connection”. F. Additional Instructions  Modified Disbursement System (MDS) Project Peso sub-account: A Peso MDS’s sub-account for the Project shall be opened and maintained by PMO at the Land Bank of the Philippines for the downloading of funds from the Bureau of Treasury to pay for project’s eligible exp enditures  Payment of the vaccine contracts: Advance payment to the COVID-19 vaccine contracts must be strictly complied with the terms and conditions provided in the contracts and should follow the Bank procurement regulations. For the first payment, a copy of the contract’s payment terms and request for payment should be attached to the withdraw application form. All payments for procurement of vaccine will be submitted to the bank using direct payment method.  Retroactive Financing: Please refer to the Section III.B.1(a) of Schedule 2 to the Loan agreement  Disbursement under category 2– Emergency Expenditures: This Disbursement and Financial Information Letter (DFIL) may not be fully adapted to the disbursement of funds allocated from time to time to category 2 of the disbursement table included in Section III. A of Schedule 2 to the Agreement. The DFIL will be revised, or a supplemental letter will be issued, if needed, when funds are allocated to category 2.  Disbursement of contracts with United Nations (UN) Agencies (if applied): If UN agencies are contracted to provide goods, works and services, the UN agencies funds flow arrangement will be applied. Funds transferred to UN Agencies are considered as advance. The copy of signed Agreement between the Recipient and UN Agencies should be sent to the Loan Department for UN advance account set up once it is signed. The Borrower will submit application for UN advance using Client Connection website. o Supporting documents for the first UN advance: Request for payment from UN Agencies o Supporting documents for advance and documentation of prior advance: Interim Financial Reporting on the use of funds and the Payment Request for the next installment signed by an authorized UN staff in charge of execution of this Agreement 6 Attachment 1 – Form of Authorized Signatory Letter [Letterhead] Department of Finance [Street address] [DATE] The World Bank One Global Place Building 26 Floor, 5th Avenue corner 25th Street Bonifacio Global City, Taguig 1634 Manila, Philippines Attention: Country Director Dear Country Director: Re: IBRD Loan 9328-PH (Philippines COVID-19 Emergency Response Project – Additional Financing 2) I refer to the Loan Agreement between the International Bank for Reconstruction and Development (“Bank”) and the Republic of the Philippines (“Borrower”), 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 Withdraw Applications ("Applications") under this Loan. 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. 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 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. 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. 7 [Name], [position] Specimen Signature: ____________________ [Name], [position] Specimen Signature: ____________________ [Name], [position] Specimen Signature: ____________________ Yours truly, / signed / ______________ [Position] 8 Attachment 2 – Statement of Expenditures