13-Dec-2021 _____________________ The Honourable Harry Kuma Minister of Finance and Treasury Ministry of Finance and Treasury P.O. Box 26 Honiara, Solomon Islands Dear Minister: IDA GrantNumber D912-SB (Solomon Islands Sustainable Mining Development Technical Assistane Project) Additional Instructions: Disbursement and Financial Information Letter I refer to the Financing Agreement between Solomon Islands (the “Recipient”) and International Development Association (the “Association”) for the above-referenced Project. The General Conditions, as defined in the Financing Agreement, provide that the Recipient may from time to time request withdrawals of IDA GrantNo. D912-SB (“Financing”), in accordance with the Disbursement and Financial Information Letter, and such additional instructions as the Association may specify from time to time by notice to the Recipient. 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 Financing Funds, and Reporting of Uses of Financing Funds. The Disbursement Guidelines for Investment Project Financing, dated February 2017, (“Disbursement Guidelines”) are available in the Association’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 guidelines apply to the Financing 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 Recipient, and conditions, 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 11.01 (c) of the General Conditions. The Recipient will deliver Withdrawal Applications (with supporting documents) electronically through the Association’s web-based portal “Client Connection” at https://clientconnection.worldbank.org. This option will be effected after the officials designated in writing by the Recipient who are authorized to sign and deliver Withdrawal Applications have registered as users of “Client Connection”. The designated 1818 H Street NW  Washington, DC 20433 USA officials will deliver Applications electronically by completing the Form 2380, which is accessible through “Client Connection”. By signing the Authorized Signatory Letter, the Recipient confirms that it is authorizing such persons to accept Secure Identification Credentials (SIDC) and to deliver the Applications and supporting documents to the Association by electronic means. The Recipient may exercise the option of preparing and delivering Withdrawal Applications in paper form on exceptional cases (including those where the Association encounters legal limitations), and which were previously agreed with the Association. 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, available in the Association'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 Recipient must prepare and furnish to the Association not later than forty-five (45) days after the end of each calendar semester, interim unaudited financial reports (“IFR”) for the Project covering the semester. (ii) Audits. Each audit of the Financial Statements must cover the period of one fiscal year of the Recipient, 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 Association 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 Association’s website (http://www.worldbank.org/) and “Client Connection”. The Association 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 Financing, 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 Association by email at AskLoans@WorldBank.org using the above reference. Sincerely, Stephen Ndegwa Country Director Papua New Guinea & Pacific Islands East Asia and Pacific Region Attachments 1. Statement of Expenditure (SOE) 2. Form of Authorized Signatory Letter Page 2 of 8 With copies: McKinnie Dentana Permanent Secretary Ministry of Finance P.O. Box 26 Honiara, Solomon Islands mdentana@mof.gov.sb Selwyn Takana Deputy Secretary (Ag) Ministry of Finance P.O. Box 26 Honiara, Solomon Islands stakana@mof.gov.sb Chris Vehe Permanent Secretary Ministry of Mines, Energy and Rural Electrification P.O. Box G37 Honiara, Solomon Islands cvehe@mmere.gov.sb Krista Jacob a/Director of Mines Ministry of Mines, Energy and Rural Electrification P.O. Box G37 Honiara, Solomon Islands KJacob@mmere.gov.sb Page 3 of 8 Schedule 1: Disbursement Provisions Basic Information Country Solomon Islands Section III.B.2 of Schedule 2 to Closing Date Recipient Ministry of Finance and Treasury the Financing Agreement. IDA D912- Name of the Project Solomon Islands Sustainable Disbursement Four (4) months after the closing GrantNumber SB Mining Development Technical Deadline Date date. Assistane Project Subsection 3.7 ** Disbursement Methods and Supporting Documentation Disbursement Methods Methods Supporting Documentation Section 2 (**) Subsections 4.3 and 4.4 (**) Direct Payment Yes Copy of records Reimbursement Yes Statement of Expenditures (Attachment 1) Advance Yes (refer to Other Statement of Expenditures (Attachment 1) Disburseent Instructions below) Special Commitments Yes Copy of Letter of Credit Designated Account (Sections 5 and 6 **) Segregated; one (1) segregated designated account will be Fixed Type established for the Project. Ceiling Central Bank of Solomon Islands, or a commercial bank or SBD Financial Institution - financial institution acceptable to the Association. Currency Name Frequency of Reporting Quarterly or more often if needed SBD 4,000,000 Amount Subsection 6.3 (**) Minimum Value of Applications (subsection 3.5) The minimum value of applications for Reimbursement, Direct Payment and Special Commitment is SBD 800,000. Authorized Signatures (Subsection 3.1 and 3.2 **) The form for Authorized Signatories Letter is provided in Attachment 2 of this letter. Please send the Authorized Signatory Letter to the address indicated below: The World Bank Level 19, 14 Martin Place Page 4 of 8 CML Building Sydney NSW 2000, Australia Attention: Country Director Withdrawal and Documentation Applications (Subsection 3.3 and 3.4 **) Withdrawal Applications (WA) and supporting documentation are to be sent electronically via the Association’s secured website Client Connection. For WAs in paper form, together with supporting documents, please submit to the address indicated below: The World Bank 26th Floor, One Global Place 5th Avenue cor 25th Street, Bonifacio Global City Taguig City, Philippines 1634 Attention: Loan Department Other Disbursement Instructions 1. Advance disbursement method and the use of designated account will not be available to the Project until the issue of lapsed loan (i.e. TF 16614 – Community Resilience to Climate and Disaster Risk in Solomon Islands Project) is fully resolved. ** Sections and subsections relate to the “Disbursement Guidelines for Investment Project Financing”, dated February 2017. Page 5 of 8 Attachment 1 - Statement of Expenditures Grant# Payment made during the period Applicatio from to n# Category # The following expenditures have been incurred during the retroactive financing period (please tick) Yes No Page # The following expenditures have been incurred during before the closing date of the Grant(please tick) Yes No In case of DA payments 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Contract Total Amount paid Contract # currency amount of Service Brief Prior Date of % from and Invoice invoice Expenditure provider / Description Review payme Financed Designated Item (Client amount number covered Amount Eligible Amount Supplier / Contract? nt by the Account Remarks No of the Connection (original by for Financing claimed Payee's (YES or Associat (which expenditure # for Prior + Applicatio Name NO) ion should be Review amendm n (net of equal to #11) contracts) ent) retention) TOTAL Supporting documents for this SOE retained at:(insert location) Prepared by: ____________ Authorized Representative: _____________________ *A separate form should be used for each category Page 6 of 8 Attachment 2 – Form of Authorized Signatory Letter [Letterhead] Department of Finance and Treasury [Street address] [City] [Country] [DATE] The World Bank Level 19, 14 Martin Place CML Building Sydney NSW 2000 Australia Attention: Country Director Re: IDA GrantNo. D912-SB (Solomon Islands Sustainable Mining Development Technical Assistane Project) I refer to the Financing Agreement (“Agreement”) between Solomon Islands (the “Recipient”) and International Development Association (the “Association”), dated _______, providing the above Financing. 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 Recipient to sign applications for withdrawal and applications for a special commitment under this Financing. For the purpose of delivering Applications to the Association, 2[each] of the persons whose authenticated specimen signatures appears below is authorized on behalf of the Recipient, acting 3[individually] 4[jointly], to deliver Applications, and evidence in support thereof on the terms and conditions specified by the Association. 5[Thisconfirms that the Recipient is authorizing such persons to accept Secure Identification Credentials (SIDC) and to deliver the Applications and supporting documents to 1 Instruction to the Recipient: 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 Association. 2 Instruction to the Recipient: 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 Association. 3 Instruction to the Recipient: 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 Association. 4 Instruction to the Recipient: 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 Association. 5 Instruction to the Recipient: Add this paragraph if the Recipient wishes to authorize the listed persons to accept Secure Identification Credentials and to deliver Applications by electronic means; if this is not applicable, please delete the paragraph. Please delete this footnote in final letter that is sent to the Association. Page 7 of 8 the Association by electronic means. In full recognition that the Association 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 Recipient represents and warrants to the Association that it will cause such persons to abide by those terms and conditions.] This Authorization replaces and supersedes any Authorization currently in the Association records with respect to this Agreement. [Name], [position] Specimen Signature: ____________________ [Name], [position] Specimen Signature: ____________________ [Name], [position] Specimen Signature: ____________________ Yours truly, / signed / ______________ Page 8 of 8