04-Apr-2025 _________________ Mr. Khalil Z. Shariff Interim Chief Executive Officer Aga Khan Foundation North America (Programs and Partnerships) 1825 K Street NW, Suite 901 Washington DC 20006 United States of America RE: ARTF Grant No. TF0C1927 (Water Emergency Relief Project -AKF Component) Disbursement and Financial Information Letter (DFIL) Dear Mr. Sharif: I refer to the Grant Agreement between the Aga Khan Foundation-USA (“AKF” or the “Recipient”), and the International Development Association (the “Association”), acting as an administrator of the grants funds provided by various donors to the Afghanistan Reconstruction Trust Fund (ARTF), for the above-referenced project, dated July 9, 2023. The Standard Conditions, as defined in the Grant Agreement, provide that the Association may issue additional instructions regarding the withdrawal of the proceeds of Grant No.TF0C1927(“Grant”), and may set out Project specific financial reporting requirements. This letter (“Disbursement and Financial Information Letter”), as revised from time to time, constitutes such additional instructions. This letter replaces the Disbursement and Financial information letter issued as on July 05, 2023. Through this restatement, provisions related to UN HMRIAR Report is removed. I. Disbursement Arrangements and Withdrawal of Grant Funds The World Bank 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 are an integral part of the Disbursement and Financial Information Letter, and the manner in which the provisions in the guidelines apply to the Grant 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 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, and instructions on supporting documentation, and frequency of reporting on the Advance. (ii) Electronic Delivery. Reference to Section 7.01 of the Standard Conditions. The Recipient will deliver Withdrawal Applications (with supporting documents) electronically through the Bank’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 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 Bank 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 Recipient encounters legal limitations), and which were previously agreed with the Bank. 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 World Bank'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 (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 (“IFR”) for the Project covering such quarter. AKF-USA will submit the financial statement of account covering PIU, AKF-AFG and IPs within six months of the close of its financial year. (ii) Audits.  External Audit. Each audit of the AKF consolidated 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 Associations not later than six (6) months after the end of such period  Project Specific Internal Audit. The project internal audit project will be conducted semi-annually by the AKF-AFG Internal audit department which is functionally independent and reports directly to the audit coordinator in the Geneva office (HQ), and will submit to the World Bank within three months of the end of each semester III. Other Information. For additional information on disbursement arrangements, please refer to the Loan Handbook available on the Association’s 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 Financing, and retrieve related policy, financial, and procurement 2 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. Yours sincerely, By ____________________________ Faris H. Hadad-Zervos Country Director, Afghanistan Attachments 1. Form of authorized Signatories 2. Form of Statement of Expenditures (SOE) and Certificate from Monitoring Agent 3 Schedule 1 : Disbursement Provisions Basic Information Recipient Aga Khan Stated in section IV.B.6. of Schedule 2 to the ARTF Grant Number Foundation (AKF) Closing Date Agreement. ARTF Grant TF0C1927 Name of the Water Emergency Disbursement Four (4) months after the closing date. Project Relief Project Deadline Date Subsection 3.7 * Disbursement Methods and Supporting Documentation Disbursement Methods Methods Supporting Documentation Section 2 (*) Subsections 4.3 and 4.4 (*) Direct Payment No N/A Reimbursement No N/A Advance Yes Statement of Expenditure (SOE) and Certificate from Monitoring Agent (Attachment 1) Special Commitments No N/A Designated Account (Sections 5 and 6 *) Pooled – AKF-USA Corporate Account, segregated Type ledger account shall be maintained to record the receipt Ceiling Fixed and usage of funds. Financial Institution JPM Bank USA Currency USD Frequency of Reporting Quarterly Amount 15,000,000 Minimum Value of Applications (subsection 3.5) 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 **) The Form for Authorized Signatories Letter is provided in the Attachment 1 of this letter which 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 : The World Bank Afghanistan Country Office Attention: Country Director, Afghanistan All Withdrawal Applications and its supporting documentation will be electronically sent via the Association’s web portal Client Connection. 4 Other Disbursement Instructions 1. The grant funds will flow directly from the World Bank to the AKF-USA’s corporate accounts (Designated Account). AKF will transfer funds to its account in local commercial bank acceptable to the World Bank to pay the NGOs and other intended recipients throughout the country. AKF, on its own or through UN agencies/NGOs, will be responsible for arranging transfers to the eligible recipients. 2. Replenishment to the Designated account will be made by the Bank according to the SOE certified by the TPMA. 3. Further Advances would be provided to PIU, AKF-AFG and Implementing Partners (IPs) of the project. AKF will agree on the ceiling for the sub- accounts. The Bank will document expenditures based on actual spending by the PIU and IPs. Any undocumented balance of Further Advances should be refunded to the Designated accounts and then to the Bank by the end of project. * Sections and subsections relate to the “Disbursement Guidelines for Investment Project Financing”, dated February 2017. 5 Attachment 1 – Form of Authorized Signatory Letter [Letterhead] UNOPS [Street address] [City] [Country] [DATE] The World Bank Country Office Kabul, Afghanistan Attention: Country Director RE: ARTF Grant No. TF0C1927 (Water Emergency Relief Project) I refer to (1) the Grant Agreement between the Aga Khan Foundation-USA (“AKF” or the “Recipient”), and the International Development Association (the “Association”), acting as an administrator of the grants funds provided by various donors to the Afghanistan Reconstruction Trust Fund (ARTF), providing the above Financing. For the purposes of Section 3.04 (b) of the Standard Conditions as defined in the ARTF Grant 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 the above 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 [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. 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 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 / ______________ 7 Attachment 2- Form of Statement of Expenditures (SOE) (provided separately) 8