one hpnl 8,2527 H. E. Rindra Hasimbelo Rabarinirinarison Minister of Economy and Finance Ministry of Economy and Finance Antananarivo Republic of Madagascar Re: IDA Credit No. 7060-MG and Grant No. D982-MG (Connecting Madagascar for Inclusive Growth Project) Additional Instructions: Disbursement and Financial Information Letter Excellency: I refer to the Financing Agreement between the Republic of Madagascar ("Recipient") and the International Development Association ("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 Financing 1 amounts from the Financing Account 2 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 f or 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 Disbursement 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 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). 1 "Financing" means: both the Credit and the Grant. 2 "Financing Account" means: the Credit Account in respect of the Credit and the Grant Account in respect of the Grant. -2- (ii) Withdrawal Applications (Electronic Delivery) 3 The Recipient will deliver Withdrawal Applications (with supporting documents, "Applications") 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 Applications have registered as users of "Client Connection". The designated 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 Applications in paper form on exceptional cases (including those where the Recipient 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://www.worldbank.org and "Client Connection"; and (b) to cause such officials 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 quarter, interim unaudited financial reports ("IFRs") for the Project covering the quarter. (ii) Audits Each audit of the Financial Statements must cover the period of one (I) 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. II f4ls» l» i n t o ± lees¢Gr auto tut tut/on anus tutu ttta sto nu For additional information on disbursement arrangements, please refer to the Loan Handbook available on the Association's public website 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 Credit, and retrieve related policy, financial, 3 Section 11.01 (c) of the General Conditions. 4 Section 5.09 of the General Conditions. -3- 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. Idah . Pswarayi-Riddihough Po Director for Madagascar ste 1 Ea and Southern Africa Region Attachments / I. Statement of Expenditure (S01 form \ gs!gs Schedule 1 : Disbursement Provisions A. Basic Information I Section 111.B.2. of Schedule 2 to Country h Madagascar Closing Date IDA Credit/ I the Loan Agreement. 7060-MG Recipient Republic of Madagascar Grant D982-MG Name of the Project Connecting Madagascar for Inclusive Disbursement Four (4) months after the closing Numbers Growth Deadline Date date. B. Disbursement Methods and Supporting Documentation 6 Supporting Documentation' Disbursement Methods Methods Direct Payment Yes Copy of records (e.g., invoices and receipts) Reimbursement Yes • Cash Compensation: Statement of Expenditure for expenditure in the format provided in Attachment 2 of the DFIL. • Other expenses: Statement of Expenditure (SOE) in the format provided in Attachment I of the DFIL. I Advance (into a Designated Yes Statement of Expenditure (SOE) in the format provided in Attachment I of the DFIL Account) Special Commitments Yes I Copy of Letter of Credit (including pro forma invoice(s), if cited in the Letter of Credit) I C. Designated Account(s) Type and Management Segregated - managed by the Road Agency (Agence Routiere) Fixed Ceiling Unit Financial Institution - Central Bank of Madagascar USO Currency Name Frequency of Reporting" Monthly I Amount USO 16,000,000 D. Minimum Value of Applications " The minimum value of applications for Reimbursement, Direct Payment and Special Commitment is 20% of the DA Ceiling. E. Authorized Signatories ' Withdrawal and Documentation Applications '? (i) Authorized Signatures (subsection 3.1) I For notes in Schedule 1: Sections and subsections relate to the "Disbursement Guidelines for Investment Project Financing", dated February 2017. 5 Subsection 3.7 6 Section 2 7 Subsections 4.3 and 4.4 8 Sections 5 and 6 9 Subsection 6.3 10 subsection 3 .5 '' Subsection 3.1 and 3.2 '? Subsection 3.3 and 3.4 -5- The existing Blanket Letter N° 914-2021-MEF/SG/DGT/DDP/SADE/Rd signed by Rindra Hasimbelo Rabarinirinarison Minister of Economy and Finance dated on September 17, 2021 and its amendments. (ii) Applications (subsections 3.2 - 3.3) All Withdrawal Applications and its supporting documentation will be electronically sent via the Association Bank's system Client Connection. F. Additional Instructions (i) All other supporting documentation for SOEs should be retained by the project management or Recipient and must be made available for review by periodic World Bank missions and internal and external auditors. (ii) Funds from the Designated Account may be transferred to Transactions Accounts in USD or local currency in a commercial bank acceptable to the Association to meet eligible expenditures, if transactions and balance in these accounts are included in all project financial reports. (iii) Disbursements under Category 3 of Section III.A of Schedule 2 of the Financing Agreement (Part 3 of the Project Contingency Emergency Response CERC will be subject to the conditions precedent to accessing the CERC funds, namely that the Recipient has provided, and the Bank has accepted, evidence of the occurrence of an eligible crisis or emergency and the Recipient has prepared and adopted/adhered to the CERC Operations Manual. Disbursements under this component will follow procedures described in the CERC Operations Manual including supporting documentation; provided that this disbursement letter will first need to be amended and reinstated at a later date to reflect those specific arrangements. In order to provide necessary liquidity for fast response, the ceiling of the Advance under the CERC could be up to 100% of the amount allocated to the CERC category. -6- Attachment 1 - Statement of Expenditures SOE Model Template (incl. listing of prior review payments) IDA - International Development Association Statement of Expenditures Financier Payment made during the period from L J- ] Loan/Credit/Grant # Application # The following expenditures have been incurred during the retroactive financing period (please tick) Yes No Category# The following expenditures have been incurred before: the closing date of the loan/credit/grant (please Yes No Page# tick) ONLY for the Designated Account 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Item Supplier's Brief Prior Contract # Contract Invoice Date of Total % Eligible Exchange Date of Amount No Name Description Review Currency Number Payment Amount of Financed Amount Rate Withdrawal Withdrawn of the (Contract?) (Client and Invoice from the from the from the Expenditure Connection Amount Covered by Bank (Col 9 x Designated Designated (YES or #for Prior Application JO) Account Account NO) Review (Original + Contracts) Amendment) (Net of (Col 11/12) Retention) 'I I I I I I I 0.00 0.00 TOTAL 0.00 Supporting documents for this SOE are retained at (insert location) A separate form should be used for each category. -7- Attachment 2- Customized Statement of Expenditures for cash compensation payments APPLICATION FOR WITHDRAWAL STATEMENT OF EXPENDITURES - CUSTOMIZED (SOE) CASH COMPENSAT ION Category PAYMENTS No. 1 1 2 3 4 5 6 7 8 9 10 1 Cash ~ Total amount Name Compens Brief -> • Amount E= i and ation Description ° ?G= 5· Cash Payment Paid from 0 E ! z 5 : t Compensation .° o request ~ :~ Address Agreeme of Cash ; O i Designate a, a I~ payment request ci Eligible 0 of ntNo. & Compensatio >E 2 5 ·- i d 4 o i ±- 5 E covered by for 0: Benefici Date (or n ? Account d2 application (net Financing ~ ary other Activities 5z" o of retention) (if any) a ref.) - 8 - I I TOTALS I I I II l -9-