OFFICIAL 0 p- (ff DOCUMENTS The World Bank 1818 H Street N.W. (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 March 12, 2015 Honourable Seth E. Terkper Minister of Finance Ministry of Finance P.O. Box MB 40 Accra, Ghana Dear Honourable Minister, Re: Republic of Ghana: Preparation of the Proposed Sankofa Gas Field Project Preparation Advance No. Q970 Additional Instructions: Disbursement I refer to the Advance Agreement ("Agreement") between the Republic of Ghana ("Recipient") and the International Development Association ("World Bank") for the preparation of the above-referenced Project, dated March 12, 2015. The Agreement provides that the World Bank may issue additional instructions regarding the withdrawal of the proceeds of Project Preparation Advance Q970 ("PPA"). This letter ("Disbursement Letter"), as revised from time to time, constitutes the additional instructions. The attached World Bank Disbursement Guidelines for Projects, dated May 1, 2006, ("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 PPA 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 * Advance * Direct Payment * Special Commitment (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. 1 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, Plot 3, Independence Avenue & 10 Street North Ridge Residential Area Accra, Ghana Attention: Mr. Yusupha B. Crookes, Country Director for Ghana (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://clientconnection.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; and (b) to cause such official to abide by those terms and conditions. 2 (v) Minimum Value ofApplications (subsection 3.5). The Minimum Value of Applications is twenty percent of the Designated Account Ceiling. (vi) Advances (sections 5 and 6). * Type ofDesignated Account (subsection 5.3): Segregated * Currency of Designated Account (subsection 5.4): USD * Financial Institution at which the Designated Account[s] Will Be Opened (subsection 5.5): Bank of Ghana (BoG) * Ceiling (subsection 6.1): USD 200.000 III. Reporting on Use of Financing Proceeds (i) Supporting Documentation (section 4). Supporting documentation should be provided with each application for withdrawal as set out below: * For requests for Reimbursement: o Statement of Expenditure in the form attached (Attachment 4) o List of payments against contracts that are subject to the World Bank's prior review, in the form attached (Attachment 5) * For reporting eligible expenditures paid from the Designated Account: o Statement of Expenditure in the form attached (Attachment 4) 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 Important Information For additional information on disbursement arrangements, please refer to the Disbursement Handbook available on the World Bank's public website at http://www.worldbank.orz and its secure website "Client Connection" at http://clientconnection.worldbank.org. Print copies are available upon request. 3 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 (http://clientconnection.worldbank.org). From this 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. 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 Aissatou Diallo, Senior Finance Officer at LOAAFR@worldbank.org using the above reference. Very truly yours, INTERNATIONAL DEVELOPMENT ASSOCIATION By Sergiy V. Kulyk Acting Country Director for Ghana Attachments ' 1. World Bank Disbursement Guidelines for Projects, dated May 1, 2006 2. Form for Authorized Signatures 3. Terms and Conditions of Use ofSecure Identification Credentials in connection with Use of Electronic Means to Process Applications and Supporting Documentation, dated March 1, 2013 4. Form of Statement of Expenditure 5. Form of Payments Against Contracts Subject to the World Bank's Prior Review Prepared by: Juvenia Cohen (WFALA) Cleared by: Sunil W. Mathrani 4 cc: Ministry of Petroleum Honourable Emmanuel Armah-Kofi Buah Prof. T.M. Akabzaa, Chief Director Ministry of Power Honourable Kwabena Donkor Mr. Solomon Asoalla, Ag. Chief Director Ministry of Finance Major (RTD). M. S. Tara, Chief Director Mr. Michael Ayesu, Director, External Resource Mobilisation-Multilateral Mr. Emmanuel Adjetey, Head, WB Unit Ghana National Petroleum Corporation Mr. Alex Mould, Ag. Chief Executive 5