11-Apr-2025 __________________ Mr. Richard Trenchard FAO Representative in Afghanistan Food and Agriculture Organization of the United Nations Vialle delle Terme di Caracalla 00153 Rome Italy Dear Mr. Trenchard: Re: IDA Grant E423-AF and ARTF Grant Number TF0C7599 Second Additional Financing for Afghanistan Emergency Food Security Project Additional Instructions: Disbursement and Financial Information Letter. I refer to the Financing Agreement between The Food and Agriculture Organization of the United Nations (“Recipient”) and the International Development Association (“Association”) and Grant Agreement between The Food and Agriculture Organization of the United Nations (“Recipient” or “FAO”) and the International Development Association as administrator of the Afghanistan Resilience Trust Fund (“ARTF”) for the above-referenced Project, dated11-Apr-2025 _________. The General Conditions, as defined in the Financing Agreement, and Standard Conditions, as defined in the Grant Agreement, provide that the Association may issue additional instructions regarding the withdrawal of the proceeds of IDA Grant E423- AF (“Financing”) and ARTF Grant Number TF0C7599 (“ARTF Grant”), Financing and ARTF Grant collectively “Grant” and specify certain financial management reporting and audit requirements. This letter (“Disbursement and Financial Information Letter” or “DFIL”), as revised from time to time after consultation with the Recipient, constitutes such additional instructions. 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 this Disbursement and Financial Information Letter, and the manner in which the provisions in the guidelines apply to the Financing is specified below. I. Disbursement Arrangements, Withdrawal and Reporting of Grant Proceeds. (i) Disbursement Arrangements:  General Provisions (Schedule 1). The table in Schedule 1 sets out the disbursement methods which may be used by the Recipient, 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. Refer to section 11.01(c) of the General Conditions and 7.01(c) of the Standard Conditions:  The Association may permit the Recipient to electronically deliver applications (with supporting documents) through the Association’s web-based portal (https://clientconnection.worldbank.org) “Client Connection”. This option may be effected if: (a) the Recipient has designated in writing, its officials who are authorized to sign and deliver Applications and to receive Secure Identification Credentials (“SIDC”) 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”. The designated officials may deliver Applications electronically by completing the Form 2380, which is accessible through “Client Connection”. 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. 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. Section 2.07(a) and (b) of the Standard Conditions and Section 5.09(a) and (b) of the General Conditions (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 (“IUFR”) for the Project covering such quarter. Per FMFA, the Recipient will submit the grant’s annual financial statement of account within three months of the close of its financial year. (ii) Audits. External Audit. The Project shall be subject exclusively to the internal and external auditing procedures laid down in the Financial Regulations, Rules and directives of the Recipient, applied in conformity with the single audit principle observed by the United Nations system as a whole. The Report of the External Auditor on the annual financial statements of the Recipient is publicly disclosed on the Recipient’s website. The Recipient will inform the Association when such reports become available as well as their location on the website. Internal Audit. The Recipient’s Office of the Inspector General (OIG) may conduct an internal audit of the project, in accordance with its Charter, The Association may request to obtain a copy of the final audit report III. Other Important 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 Grants, 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, INTERNATIONAL DEVELOPMENT ASSOCIATION _________________________ Faris H. Hadad-Zervos Country Director for Afghanistan Attachments 1.Form of Authorized Signatory Letter 2.Format of Interim Unaudited Financial Report Schedule 1: Disbursement Provisions Basic Information Recipient The Food and Agriculture Closing Date Section IV.B.6 of Schedule 2 to the Organization of the United Nations Financing Agreement and IV.B.6 of IDA E423- Schedule 2 to the Grant Agreement Grant AF and Name of the Project Second Additional Financing for Disbursement Four months after the Closing Date. Numbers ARTF Grant Afghanistan Emergency Food Deadline Date TF0C7599 Security Project Subsection 3.7 ** Disbursement Methods and Supporting Documentation Methods Available Disbursement Methods Supporting Documentation Section 2 (*) Subsections 4.3 and 4.4 (*) Direct Payment No Reimbursement No Advance Yes Interim Unaudited Financial Report (Attachment 2 of the DFIL) Special Commitment No Designated Account (Sections 5 and 6**) Type Pooled – Recipient’s Headquarters Account. Ceiling Variable Segregated ledger account shall be maintained to record the receipt and usage of funds for the Financing and IDA Grant Financial Institution Financial Institution nominated by the Recipient Name and acceptable to the Association Currency USD- Frequency of Reporting Quarterly basis Amount Forecast for six months as per the Subsection 6.3 (**) IUFR Minimum Value of Applications (subsection 3.5) 4 Not applicable Authorized Signatures (Subsection 3.1 and 3.2 **) The form for Authorized Signatories Letter is provided in Attachment 1 of this letter Withdrawal and Documentation Applications (Subsection 3.3 and 3.4 **) Authorized Signatories Letter: Withdrawal and Documentation Applications: The World Bank Country Office. The World Bank Kabul No. 11, Taramani Main Road Afghanistan Taramani, Chennai – 600 113 Attention: Country Director for Afghanistan India Attention: Team Lead, WFACS Additional Instructions (i) Disbursements to the Recipient will be report-based. The Recipient will submit an IUFR within 45 days of the end of every calendar quarter to liquidate the previous advance and request an additional advance. During each period, the Association and the Recipient will jointly review the quarterly progress report and IUFRs to confirm the expenditures to be documented and determine the additional advance for forecasted expenditures. The Association, based on the IUFR, will document reported expenditures and disburse advance to Recipient’s Headquarters account. (ii) The Grant funds will flow directly from the Association to the Recipient’s Headquarter bank account. The Recipient will make payments to payees with bank accounts outside Afghanistan from its Headquarter bank account. In case of payments inside Afghanistan, the Recipient will transfer funds using the pooled bank account of the Recipient. (iii) In case of Category 2 of the table in Section IV.A.1 of Schedule 2 to the Grant Agreement (Matching Grants under Part 3(A)(i) of the Project), incurred and paid expenditures reported by Matching Grant Beneficiaries would be included as expenditures in the IUFR of the ARTF Grant. (iv) In case of Category 2 of the table in Section IV.A of Schedule 2 to the Financing Agreement (Vouchers under Part 1(A)(i)(c) of the Project), expenditures would be claimed in the IUFR after redemption of Vouchers by beneficiaries and payment by FAO to the supplier. (v) Separate withdrawal applications along with supporting documentation as per this DFIL are to be submitted under the Financing and ARTF Grant. *Sections and subsections indicated relate to the Disbursement Guidelines for Investment Project Financing, dated February 2017. Attachment 1 – Form of Authorized Signatory Letter [Letterhead] The Food and Agriculture Organization of the United Nations [Street address] [City] [Country] [DATE] The World Bank Country Office. Kabul Afghanistan Attention: Country Director for Afghanistan Re: IDA Grant E423-AF and ARTF Grant Number TF0C7599 (Second Additional Financing for Afghanistan Emergency Food Security Project) I refer to the Financing Agreement (“Agreement”) between the International Development Association (“Association”) and The Food and Agriculture Organization of the United Nations (“Recipient”), dated _______, providing the above Financing and Grant Agreement between United Nations Children’s Fund (“Recipient”) and the Grant Agreement (“Agreement”) between International Development Association (“Association”) as administrator of the Afghanistan Resilience Trust Fund (“ARTF”) providing the above Grants. For the purposes of Section 2.03 of the General Conditions as defined in the Financing Agreement and Section 3.04 (b) of the Standard Conditions as defined in the Grant Agreement, any [one]1 of the persons whose authenticated specimen signatures appear below is authorized on behalf of the Recipient to sign applications for withdrawal under this Financing and Grant. For the purpose of delivering Applications to the Association, [each]2 of the persons whose authenticated specimen signatures appears below is authorized on behalf of the Recipient, acting [individually]3 [jointly]4, to deliver Applications, and evidence in support thereof on the terms and conditions specified by the Association. [This confirms that the Recipient is authorizing such persons to accept Secure Identification Credentials (SIDC) and to deliver the Applications and supporting documents to 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 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. 6 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.]5 This Authorization replaces and supersedes any Authorization currently in the Association’s records with respect to this Agreement. [Name], [Position] Specimen Signature: ____________________ [Name], [Position] Specimen Signature: ____________________ [Name], [Position] Specimen Signature: ____________________ Yours truly, / signed / [Position] 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. 6 Instruction to the Recipient: In case signatory(ies) are authorized separately for part(s)/category(ies) included in the Financing Agreement, the authorized signatories letter may make reference to the relevant part(s)/category(ies) in the subject line. Please delete this footnote in final letter that is sent to the Association. Attachment 2- Format of IUFR Second Additional Financing for Afghanistan Emergency Food Security Project IDA Grant #/ TF# STATEMENT OF RECEIPTS AND PAYMENTS & FORECAST For the Quarter Ended xxx USD Description Actual Reporting Period Cumulative to Date Prior Period (Inception - xx Year -To Date (As of xx) Coprporate Account Opening Cash Balances for IDA Add: Sources of Funds Advances Received from the World Bank-IDA Total (A) - - - - Uses of Funds Category (1)Goods, works, non-consulting services, consulting services, Cash for Work Transfers, Unconditional Cash Transfers, In- Kind Grants, Training, and Operating Costs under the Project. - Category (2) Vouchers under Part 1(A)(i)(c) of the Project - Category (3) Matching Grants under Part 3(A)(i) of the Project Category (4) Indirect Costs/ Admin Fee (5% of the Actual Expenditures) - Total Disbursements (B) - - - - Closing Cash Balance (C) = (A-B) - - - - Less: Total commitments (D) - Updated Closing Cash Balance (E) =(C)-(D) Forecast for the six months ending xxx Less: Updated Closing Cash Balance (from (E) above) #REF! Amount requested as advance in this application 8 Note: Interest Earned 1. Interest generated during the period. - 2. Cumulative interest for the year - 3. Cumulative interest in the project - Should reconcile with Client Connection total receipts. Should agree with total amount disbursed per component in the next tab Prepared by: Name and Title: Emergency and Rehabilitation Officer/ Operations Date: ____________________________________________ Certified by: Name and Title: Head - Emergency and Resilience Programme Team Date: ____________________________________________ Approved by: Name and Title: Head - Trust Fund Liaison Group Date: ____________________________________________ Note: Separate IUFR to be submitted for IDA Financing and ARTF Grant Second Additional Financing for Afghanistan Emergency Food Security Project IDA Grant # xxx TF # USES OF FUNDS BY PROJECT ACTIVITIES For the Quarter Ended xxxx PLANNED ACTUAL COMMITTED VARIANCE ** Project Components and Activities Budget Cumulative to Cumulative to Cumulative to Cumulative to Balance Revised Life of Prior Period Current Period date Prior period Current Period date Prior period Current Period date Current Period date Life of project Project * Part 1. Building Resilience for Food Security (A) Food Crisis Response Support (B) Promote improved crop varieties and production practices Part 2. Providing Water and Resilience Services (A) Improving off-farm and on-farm irrigation systems (B) Supporting sustainable land and watershed management interventions (C) High efficiency irrigation schemes Part 3. Promoting Commercialization of Farmers (A) Matching Grants to Small Agribusinesses (“Matching Grant Beneficiaries”) (B)Agriculture Diversification and Value Addition Part 4. Implementation Support TOTAL PROJECT EXPENDITURES 10 ** Explnation of variances over 15%: Prepared by: Name and Title: Maram Abdo - Emergency and Rehabilitation Officer/ Operations Date: ____________________________________________ Certified by: Name and Title: Kaustubh Devale - Head. Emergency and Resilience Programme Team Date: ____________________________________________ Approved by: Name and Title: David McSherry- Head. Trust Fund Liaison Group Date: ____________________________________________ Second Additional Financing for Afghanistan Emergency Food Security Project IDA Grant # TF# FAO Corporate Account Activity Statement for IDA Grant/ TF xxxx for Quarter xxxx IDA PART I USD USD 1. Cumulative advances to end of last reporting period as per client connection - 2. Cumulative expenditures to end of last reporting period as per client connection - 3. Outstanding Advance to be accounted as per client connection - PART II Opening Corporate Account balance at beginning of reporting period ( xxxx ) - Add: Advances from World Bank during reporting period - Total funds available during the quarter (A) - Goods, works, Consulting Services, Non-Consulting Services, Training, and Incremental Operating Cost, Admin Fee (5% of the Actual Expinditures) - - Total Expenditure and project's advances (B) - Closing balance (A-B) - Closing balance as per UN General Ledger for Grant # IDA0xxxx - Difference (Should be nil, if not explanation to be provided)** - *Note: Outstanding Advances provided under the project to be documented only after it has been acquitted **Difference is equal to the value of the commitments reported in the IFR-Use of Funds report. 12 Prepared by: Name and Title: Maram Abdo - Emergency and Rehabilitation Officer/ Operations Date:___________________________________________________ Certified by: Name & Title: Kaustubh Devale - Head, Emergency and Resilience Programme Team Date:___________________________________________________ Approved by: Name & Title: David McSherry - Head, Trust Fund Liaison Group Date:___________________________________________________ Note: Separate IUFR to be submitted for IDA Financing and ARTF Grant