OFFICIAL
The World Bank DOCUM M t (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
2017
Mr. Henry Rotich
Cabinet Secretary
The National Treasury
P.O. Box 30007 - 00100
Treasury Building
Harambee Avenue
Nairobi, Kenya
Dear Mr. Rotich:
Re: IDA Financing 6138-KE
Secondary Education Quality Improvement Project
Additional Instructions: Disbursement
I refer to the Financing Agreement ("Agreement") between the Republic of Kenya
("Recipient") and the International Development Association ("Association") for the above-
referenced Operation, of even date herewith. The Agreement provides that the Association may
additional instructions regarding the withdrawal of the proceeds of Financing 6138-KE
("Financing"). This letter (the "Disbursement Letter"), as revised from time to time, constitutes the
additional instructions.
L Withdrawal of Financing Proceeds
(i) Authorized Signatures. Applications for this Financing will be signed by the official(s)
authorized to sign Applications as indicated in your letter of May 4th, 2017 signed by the Cabinet
Secretary of the National Treasury, Mr. Henry K Rotich.
(i) Applications for withdrawal. Please provide completed and signed (a) Applications for
withdrawal, together with supporting documents, to the address indicated below:
The World Bank
Delta Center, 13th Floor
Menengai Road, Upper Hill
Nairobi, Kenya
Tel: +254 20 293 6000
Attention: Loan Department
(if) Electronic Delivery. The Association may permit the Recipient to electronically deliver to the
Association Applications for withdrawal (with supporting documents, as applicable) through the
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Association's Client Connection, web-based portal. The option to deliver Applications for
withdrawal 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 for withdrawal and to receive secure
identification credentials ("SIDC") from the Association for the purpose of delivering such
Applications for withdrawal 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 SIDC for the designated officials. Following
which, the designated officials may deliver Applications for withdrawal electronically by
completing Form 2380, which is accessible through Client Connection
(https://clientconnection.worldbank.orz). The Recipient may continue to exercise the option
of preparing and delivering Applications for withdrawal in paper form. The Association
reserves the right and may, in its sole discretion, temporarily or permanently disallow the
electronic delivery of Applications for withdrawal 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 for withdrawal 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 2; and (b) to
cause such official to abide by those terms and conditions.
(v) Withdrawal Conditions. Please refer to the Disbursement Condition(s) in the Financing
Agreement.
IL. Disbursement Arrangements applicable to Component 1 and 2.2-Improvine quality
of teaching in targeted areas
( Applications for withdrawal. Applications for withdrawal from the Financing Account, of
amounts of the Financing allocated to individual DLI Target ("DLI Target") may, pursuant to
the provisions of Section IV of Schedule 2 to the Financing Agreement, be sent to the
Association at any time after the Association has notified the Recipient in writing that it has
accepted evidence of achievement of the specific DLI Target.
(ip Withdrawal Amount. Applications for withdrawal may be for an amount not to exceed
the amount of the Financing confirmed by the Association for the specific DLI Target in
respect of which the withdrawal is requested, as specified in the Association's notice to the
Recipient.
(4 Advances and Recovery ofAdvances. The Recipient may, in accordance with provisions
of the Financing Agreement, request advances of amounts of the Financing allocated to DLI
Targets that have not yet been achieved using the Form attached (Attachment 3). The
aggregate amount of all such advances made in respect of amounts allocated to DLI Targets
may not exceed the equivalent of 20% of the allocated amount.
The Association records an amount of the advance as disbursed for an achieved DLI Target
("recovered") after it has notified the Recipient of its acceptance of the evidence of
achievement
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of the DLI Target for which the advance was provided. The amount so reclassified becomes
available for further advances in accordance with the preceding paragraph.
(iv) Disbursement Deadline Date. The period of disbursement of the Financing ends six months
after the Closing Date ("Disbursement Deadline Date"). This is the final date established by the
Association for receipt by the Association of Applications for withdrawal. Normally, to support
orderly closure of the Financing Account, the Association does not accept Applications for
withdrawal received after the Disbursement Deadline Date. The Recipient should promptly inform
the Association of any expected implementation delays or exceptional administrative issues before
these dates. The Association will notify the Recipient of any exception that the Association may
make to the Disbursement Deadline Date.
(v) Deposits of Financing Amounts. All withdrawals from the Financing Account shall be
deposited by the Association into a 2 Euro Reimbursement accounts at the Recipient's Central
Bank, one for TSC and another for MoE, as specified by the Recipient and acceptable to the
Association.
(vi) Additional information on disbursement arrangements and electronic delivery of
Applications for withdrawal. Please visit our secure website "Client Connection" at
https://clientconnection.worldbank.org.
III. Disbursement Arrangements for Components 2.1, 3 and 4
(i) Disbursement Guidelines. The attached Disbursement Guidelines for Investment Project
Financing, dated February 2017, ("Disbursement Guidelines") (Attachment 4), are an integral part
of the Disbursement Letter. The manner in which the provisions in the Disbursement Guidelines
apply to the Credit 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 Section III of the Disbursement Letter, the capitalized terms used have the meanings ascribed
to them in the Disbursement Guidelines.
(ii) Disbursement Methods (section 2). The following Disbursement Methods may be used under
the Financing:
* Reimbursement
* Advance
* Direct Payment
Special Commitments
(iii) Disbursement Deadline Date (subsection 3.7). The Disbursement Deadline Date is 6 months
after the Closing Date specified in the Financing Agreement. Any changes to this date will be
notified by the Association.
(iv) Minimum Value ofApplications (subsection 3.5). The minimum value for Reimbursement
and Direct Payment applications is twenty percent of the DA ceiling.
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(v) Advances (sections 5 and 6).
* Type ofDesignated Account (subsection 5.3): Segregated
Currency ofDesignated Account (subsection 5.4): EUR
* Financial Institution at which the Designated Account Will Be Opened (subsection
5.5): Central Bank of Kenya
* Ceiling (subsection 6.1): Variable
(vi) Supporting Documentation (section 4). Supporting documentation should be provided with
each Application for withdrawal as set out below:
* For requests for reimbursement and for reporting eligible expenditures paid from the
Designated Account:
o Interim Financial Report in the form attached (Attachment 5)
* For requests for Direct Payment: Records evidencing eligible expenditures, e.g.
invoices.
(vii) Frequency of Reporting Eligible Expenditures Paid from the Designated Account
(subsection 6.3): Quarterly.
(viii) Additional information on disbursement arrangements. Please refer to the Disbursement
Handbook available on the World Bank's public website at https://www.worldbank.org and its
secure website "Client Connection" at https://clientconnection.worldbank.org. Print copies are
available upon request.
(ix) Other Supporting Documentation Instructions: Copies of Bank statements for applications
related to Designated Account.
IV. Other Important Information
If you have not already done so, the World Bank recommends that you register as a user of the
Client Connection website (https://clientconnection.worldbank.org). 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. All officials of the Recipient
authorized to sign and deliver Applications for withdrawal by electronic means are required to
register with Client Connection before electronic delivery can be effected. For more information
about the website and registration arrangements, please contact the World Bank by email at
<clientconnection@worldbank.org>. For additional information on disbursement arrangements,
please refer to the Loan Handbook for World Bank Borrowers available on the Association's
public website at https://www.worldbank.org and its secure website "Client Connection" at
https://clientconnection.worldbank.ore.
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If you have any queries in relation to the above, please contact us at LOA-
AFR(&@worldbank.org using the above reference.
Yours sincerely,
Diarietou Gaye
Country Director
Eritrea, Kenya, Rwanda and Uganda
Africa Region
Attachments
1. Form for Authorized Signatures
2. Terms and Conditions of Use of Secure Identification Credentials in connection with Use of
Electronic Means to Process Applications and Supporting Documentation, dated March 1,
2013
3. Form of Request for Advance
4. Disbursement Guidelines for Investment Project Financing dated February 2017
5. Form of Interim Financial Report
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Attachment 1 to DL
Form of Authorized Signatory Letter
[Letterhead]
[Street address]
[City] [Country]
The World Bank
1818 H Street, N.W.
Washington, D.C. 20433
United States of America
Attention: Country Director
Re: IDA Financing 6138-KE (Financing)
Secondary Education Quality Improvement Project (SEQIP)
I refer to the Financing Agreement between the Republic of Kenya ("Recipient"), and the
International Development Association ("Association"), for the above-referenced Operation, dated
, providing for the above Financing. For the purposes of Section 2.02 of the General
Conditions for the Program and of Section 2.03 of the General Conditions for the Project as defined
in the Agreement, any '[one] of the persons whose authenticated specimen signatures appear below
is authorized on behalf of the Recipient to sign Applications for withdrawal under this Financing.
For the purpose of delivering Applications for withdrawal to the World Bank, 2[each] of
the persons whose authenticated specimen signatures appears below is authorized on behalf of the
Recipient, acting 3[individually] 4[Uointly], to deliver Applications for withdrawal, and evidence in
support thereof on the terms and conditions specified by the World Bank.
5[This confirms that the Recipient is authorizing such persons to accept Secure
Identification Credentials (SIDC) and to deliver the Applications for withdrawal and supporting
documents to the World Bank by electronic means. In full recognition that the World Bank shall
rely upon such representations and warranties, including without limitation, the representations
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 World Bank.
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 World Bank.
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 World Bank.
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 World Bank.
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 World Bank.
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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 World Bank that it will cause such persons to abide by those terms and conditions.]
This Authorization replaces and supersedes any Authorization currently in the World Bank
records with respect to this Agreement.
[Name], [position] Specimen Signature:
[Name], [position] Specimen Signature:
[Name], [position] Specimen Signature:
Yours truly,
/ signed /
[Position]
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Attachment 2 to DL
Terms and Conditions of Use of Secure Identification Credentials
in connection with Use of Electronic Means
to Process Applications
and Supporting Documentation
March 1, 2013
The World Bank (Bank)' will provide secure identification credentials (SIDC) to permit the
Recipient2 to deliver applications for withdrawal and applications for special commitments under
the Agreement(s) and supporting documentation (such applications and supporting documentation
together referred to in these Terms and Conditions of Use as Applications) to the Bank
electronically, on the terms and conditions of use specified herein.
SIDC can be either: (a) hardware-based (Physical Token), or (b) software-based (Soft Token). The
Bank reserves the right to determine which type of SIDC is most appropriate.
A. Identification of Users
1. The Recipient will be required to identify in a completed Authorized Signatory Letter
(ASL) duly delivered to and received by the Bank each person who will be authorized to
deliver Applications. The Bank will provide SIDC to each person identified in the ASL
(Signatory), as provided below. The Recipient shall also immediately notify the Bank if a
Signatory is no longer authorized by the Recipient to act as a Signatory.
2. Each Signatory must register as a user on the Bank's Client Connection (CC) website
(https://clientconnection.worldbank.org) prior to receipt of his/her SIDC. Registration on
CC will require that the Signatory establish a CC password (CC Password). The Signatory
shall not reveal his/her CC Password to anyone or store or record the CC Password in
written or other form. Upon registration as a CC user, the Signatory will be assigned a
unique identifying account name.
B. Initialization of SIDC
1. Prior to initialization of SIDC by a Signatory, the Signatory will acknowledge having read,
understood and agreed to be bound by these Terms and Conditions of Use.
'"Bank" includes IBRD and IDA.
2 "Recipient" includes the Recipient of an IBRD loan, IDA credit, or Project Preparation Facility advance and the
recipient of a grant.
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2. Where a Physical Token is to be used, promptly upon receipt of the Physical Token, the
Signatory will access CC using his/her account name and CC Password and register his/her
Physical Token and set a personal identification number (PIN) to be used in connection
with the use of his/her Physical Token, after which the Physical Token will be initialized
for use by the Signatory exclusively for purposes of delivering Applications. Where a Soft
Token is to be used, the Signatory will access CC using his/her account name and CC
Password and set a personal identification number (PIN) to be used in connection with the
use of his/her Soft Token, after which the Soft Token will be initialized for use by the
Signatory exclusively for purposes of delivering Applications. Upon initialization of the
SIDC, the Signatory will be a "SIDC User". The Bank will maintain in its database a user
account (Account) for each SIDC User for purposes of managing the SIDC of the SIDC
User. Neither the Recipient nor the SIDC User will have any access to the Account.
3. Prior to first use of the SIDC by the SIDC User, the Recipient shall ensure that the SIDC
User has received training materials provided by the Bank in use of the SIDC.
C. Use of SIDC
1 . Use of the SIDC is strictly limited to use in the delivery of Applications by the SIDC User
in the manner prescribed by the Bank in the Agreement(s) and these Terms and Conditions.
Any other use of the SIDC is prohibited.
2. The Bank assumes no responsibility or liability whatsoever for any misuse of the SIDC by
the SIDC User, other representatives of the Recipient, or third parties.
3. The Recipient undertakes to ensure, and represents and warrants to the Bank (such
representation and warranty being expressly relied upon by the Bank in granting SIDC)
that each SIDC User understands and will abide by, these Terms and Conditions of Use,
including without limitation the following:
4. Security
4.1. The SIDC User shall not reveal his/her PIN to anyone or store or record the PIN in
written or other form.
4.2. The SIDC User shall not allow anyone else to utilize his/her SIDC to deliver an
Application to the Bank.
4.3. The SIDC User shall always logout from CC when not using the system. Failure to
logout properly can create a route into the system that is unprotected.
4.4. If the SIDC User believes a third party has learned his/her PIN or has lost his/her
Physical Token he/she shall immediately notify clientconnection@worldbank.org.
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4.5. The Recipient shall immediately notify the Bank at
clientconnectiong@worldbank.org of any lost, stolen or compromised SIDC, and take other
reasonable steps to ensure such SIDC are disabled immediately.
5. Reservation of Right to Disable SIDC
5.1. The Recipient shall reserve the right to revoke the authorization of a SIDC User to
use a SIDC for any reason.
5.2. The Bank reserves the right, in its sole discretion, to temporarily or permanently
disable a SIDC, de-activate a SIDC User's Account or both.
6. Care of Physical Tokens
6.1. Physical Tokens will remain the property of the Bank.
6.2. The Bank will physically deliver a Physical Token to each Signatory designated to
receive one in a manner to be determined by and satisfactory to the Bank.
6.3. Physical Tokens contain delicate and sophisticated instrumentation and therefore
should be handled with due care, and should not be immersed in liquids, exposed to
extreme temperatures, crushed or bent. Also, Physical Tokens should be kept more than
five (5) cm from devices that generate electromagnetic radiation (EMR), such as mobile
phones, phone-enabled PDAs, smart phones and other similar devices. Physical Tokens
should be carried and stored separate from any EMR device. At close range (less than 5
cm), these devices can output high levels of EMR that can interfere with the proper
operation of electronic equipment, including the Physical Token.
6.4. Without derogating from these Terms and Conditions of Use, other technical
instructions on the proper use and care of Physical Tokens are available at
http://www.rsa.com.
7. Replacement
7.1. Lost, damaged, compromised (in terms of 4.5, above) or destroyed Physical Tokens
will be replaced at the expense of the Recipient.
7.2. The Bank reserves the right, in its sole discretion, not to replace any Physical Token
in the case of misuse, or not to reactivate a SIDC User's Account.
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Attachment 3 to DL
Sample Form for Advances
[Ministry/Implementing Agency Letterhead]
[Date]
The World Bank
Delta Center, 13th Floor,
Menengai Road, Upper Hill,
Nairobi, Kenya
Attention: Team Lead, WFALA
Subject: IDA Financing 6138-KE (Financing)
Secondary Education Quality Improvement Project
Request for Advance
Dear Sir/Madam,
We refer to the Financing Agreement between the Republic of Kenya ("Recipient"), and
the International Development Association (the "Association"), dated _ providing for the
above Financing.
In accordance with the provisions of the Disbursement Letter and Schedule 2, Section IV
of the Financing Agreement, to support the implementation of the above Program and to facilitate
the achievement of the planned results, we request an Advance in the amount of [insert amount] 3
under IDA Financing _ -KE.
[We request that the Advance be disbursed in [currency requested for disbursement]
equivalent to the Total Advance Requested above.]4 We acknowledge that the amount disbursed
will be charged to the Financing Account in the currency of the Financing at the rate of exchange
in effect at the time of disbursement.
Sincerely,
[Name, Position]5
The Proposed Advance should be in the currency of the DLI/DLR as set out in the disbursement table in the legal
agreement, and in accordance with provisions in the Disbursement Letter. Normally, this is the currency of
commitment of the loan and financing.
4 Use this text to designate the currency of the Advance if it should be different from the currency set out in the
disbursement table in the legal agreement.
5 To be signed by a representative of the implementing/coordinating agency of the Recipient, OR by the person(s)
authorized on behalf of the Recipient to sign applications for withdrawal under the loan and financing as set out in the
applicable Authorized Signatory Letter.
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Attachment 4 to DL
Disbursement Guidelines to be provided with the Signing Package