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 January 7, 2011 CONFORMED COPY His Excellency Ronald Baudin Minister of Economy and Finance Ministry of Economy and Finance Palais des Ministeres Port-au-Prince, Haïti Re: Haiti: IDA Grant No H630-HT (Post-Disaster Partial Credit Guarantee Program Support Project) Additional Instructions: Disbursement Letter Excellency: I refer to the Financing Agreement between the International Development Association (the “Association�) and the Republic of Haiti (the “Recipient�) for the above-referenced project, dated January 7, 2011. The Financing Agreement provides that the Association may issue additional instructions regarding the withdrawal of the proceeds of Financing H630-0-HT (the “Financing�). 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 Financing 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 Financing:  Advances  Reimbursement  Direct Payment (ii) Disbursement Deadline Date (subsection 3.7). The Disbursement Deadline Date is four months after the Closing Date specified in the Financing Agreement. Any changes to this date will be notified by the Association. -2- (iii) Disbursement Conditions (subsection 3.8). Please refer to the Disbursement Condition in the Financing Agreement. II. Withdrawal of Financing Proceeds (i) Authorized Signatures (subsection 3.1). A letter in the Form attached (Attachment 2) should be furnished to the Association at the address indicated below providing the name(s) and specimen signature(s) of the official(s) authorized to sign Applications for withdrawal: The World Bank 1818 H Street, N. W. Washington, DC 20433 United States of America Attention: Alexandre V. Abrantes, Special Envoy, Haiti Caribbean Country Management Unit (ii) Applications (subsections 3.2 - 3.3). Please provide completed and signed applications for withdrawal together with supporting documents, to the address indicated below: The World Bank 1818 H Street, N. W. Washington, DC 20433 United States of America Attention: Loan Department (iii) Electronic Delivery (subsection 3.4). The Association may permit the Recipient to electronically deliver to the Association Applications (with supporting documents) through the Association’s Client Connection, web-based portal. The option to deliver Applications to the Association 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 devices (“Tokens�) from the Association 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 Association agrees, the Association will provide the Recipient with Tokens 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 Association 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 Tokens to Process Applications. By designating officials to accept Tokens 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 Devices in connection with Use of Electronic Means to Process Applications and Supporting Documentation (“Terms and Conditions of Use of -3- Tokens�) provided in Attachment 3; and (b) to deliver the Terms and Conditions of Use of Tokens to each such official and to cause such official to abide by those terms and conditions. (v) Minimum Value of Applications (subsection 3.5). The Minimum Value of Applications is United States Dollars (USD) 10,000 equivalent. (vi) Advances (sections 5 and 6).  Type of Designated Accounts (subsection 5.3): Pooled at FDI for PCG (categories 1a and 1b). Segregated for TA component (Category 2).  Currency of Designated Accounts (subsection 5.4): USD.  Financial Institution at which the Designated Accounts Are Opened (subsection 5.5): Advance for PCG (Cat. 1 a, b) will be made to FDI’s account at BRH. DA for Technical Assistance (Cat. 2) will be opened at Banque de la République d’Haïti.  Ceiling (subsection 6.1): $2.5 million to FDI for the PCG component (Category 1a). USD 50,000 for the Technical Assistance Component (Category 2). 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 reporting eligible expenditures paid from the Designated Account and for requests for Reimbursement: o For category 1 (PCG): Annual external audit and refund of any unused funds under categories 1 (a) and 1 (b) by the project closing date. o For category 2 (Technical Assistance): Records evidencing eligible expenditures (e.g., copies of receipts, supplier invoices) for payments consulting firms for contracts valued at USD 100,000 equivalent or more and individual consultant services against contracts valued at USD 50,000 equivalent or more. o Statement of Expenditures in the form attached (Attachment 4) for all other contracts. o List of payments against contracts that are subject to the Association's prior review, in the form attached (Attachment 5).  For requests for Direct Payment: o Records evidencing eligible expenditures (e.g., copies of receipts, supplier invoices). -4- (ii) Frequency of Reporting Eligible Expenditures Paid from the Designated Account (subsection 6.3): Monthly for Designated Account opened at BRH (Category 2). (iii) Other Supporting Documentation Instructions: Please submit bank statements with Applications for Reimbursement, as appropriate. IV. Other Important Information For additional information on disbursement arrangements, please refer to Attachment 6 and the Disbursement Handbook available on the Association’s public website at http://www.worldbank.org and its secure website “Client Connection� at http://clientconnection.worldbank.org. Print copies are available upon request. If you have not already done so, the Association 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 Financing, and retrieve related policy, financial, and procurement information. For more information about the website and registration arrangements, please contact the Association by email at . If you have any queries in relation to the above, please contact us by email at loalcr@worldbank.org using the above Project name and Loan number as a reference in the subject line. Yours sincerely, By /s/ Alexandre V. Abrantes Special Envoy, Haiti Caribbean Country Management Unit Latin America and the Caribbean Region -5- Attachments 1. World Bank Disbursement Guidelines for Projects, dated May 1, 2006. 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 January 20, 2010. 4. Form for “Statement of Expenditure�. 5. Form of Payments Against Contracts Subject to the Association’s Prior Review. 6. Financing mechanism for Categories 1 (a), 1 (b) and 2. Cleared with and cc: Helene Bertaud, LEGLA Juan Buchenau, LCSPF Caroline Cerruti, LCSPF Cc with copies: Bureau de Monetisation des Programmes d'Aide au Developpement / Bureau de Monetisation (formerly the PL-480 Management Office) Boulevard Harry Truman, Ancien Immeuble Casino International P.O. Box 2488 Port-au-Prince Haiti