Boutheina Guermazi Director of Regional Integration AFWRI 10-Jul-2024 Date: _____________ H.E. Chileshe Mpundu Kapwepwe. Secretary General Common Market for Eastern and Southern Africa (COMESA) COMESA Center P.O.Box 30051 Lusaka Republic of Zambia Re: IDA Grant E349-3E (Inclusive Digitalization in Eastern and Southern Africa under the Multi-Phase Programmatic Approach) Additional Instructions: Disbursement and Financial Information Letter Excellency: I refer to the Financing Agreement between Common Market for Eastern and Southern Africa (“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 Grant Financing amounts from the Grant Financing Account in accordance with the Disbursement and Financial Information Letter (“DFIL”), 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 and may be revised from time to time. I. Disbursement Arrangements, Withdrawal of Grant Financing Funds, and Reporting of Uses of Grant Financing Funds The Disbursement Guidelines for Investment Project Financing, dated February 2017 (“Disbursement Guidelines”), are available on 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 Grant 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 the minimum value of applications and processing of advances), instructions on supporting documentation, and frequency of reporting on the Designated Account(s) . 2 (ii) Withdrawal Applications (Electronic Delivery) 1 The Recipient shall 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 effective 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 shall deliver Applications electronically by completing Form 2380, which is accessible through “Client Connection.” By signing the Authorized Signatory Letter, which can be delivered manually or electronically, 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 these 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 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 the 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” at https://clientconnection.worldbank.org; and (b) to cause such officials to abide by those terms and conditions. II. Financial Reports and Audits 2 (i) Financial Reports The Recipient shall through COMESA 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.  Audits Each audit of the project Financial Statements shall cover the period of one (1) 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 shall be furnished to the Association by the Recipient through COMESA not later than six (6) months after the end of such period. III. Other Important Information For additional information on disbursement arrangements, please refer to the Loan Handbook available on the Association’s public website at https://www.worldbank.org and “Client Connection” at https://clientconnection.worldbank.org, the Bank recommends that you register as a user of “Client Connection.” From this website, you will be able to prepare and deliver Authorized Signatory Letters and Withdrawal Applications, monitor the near real-time status of the financing and retrieve related policy, financial, and procurement information. 1 Section 10.01 (c) of the General Conditions 2 Section 5.09 of the General Conditions 3 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. Yours sincerely, ______________________________ Boutheina Guermazi Director of Regional Integration Africa and Middle East and North Africa Attachments 1. Form of Authorized Signatory Letter 2. Interim unaudited Financial Report (IFR) 3. Statement of Expenditure (SOE) Schedule 1: Disbursement Provisions Basic Information Country Southern Africa (Zambia) Section III.B.2 of Schedule 2 to the Common Market for Eastern Closing Date Recipient Financing Agreement. and Southern Africa-COMESA IDA Grant Disbursement E349-3E Inclusive Digitalization in No. Deadline Date Eastern and Southern Africa Four (4) months after the closing Name of the Project under the Multi-Phase date Programmatic Approach Disbursement Methods and Supporting Documentation Disbursement Methods Methods Supporting Documentation Direct Payment Yes Copy of records (e.g., invoices and receipts) Reimbursement Interim unaudited Financial Report (IFR) in the format provided in Attachment 2 of the DFIL Yes Statement of Expenditure (SOE) in the format provided in Attachment 3 of the DFIL Advance (into a Designated Yes Interim unaudited Financial Report (IFR) in the format provided in Attachment 2 of the DFIL Account) Special Commitments Yes Copy of Letter of Credit (including pro forma invoice(s), if cited in the Letter of Credit) Designated Account Type Segregated Account Managed by COMESA Ceiling Variable Financial Institution - City Bank Zambia Currency USD Name 6 months forecast as included in the Frequency of Reporting At least Quarterly Amount Interim Financial Report Minimum Value of Applications (subsection 3.5) The minimum value of applications for Reimbursement, Direct Payment and Special Commitment is [USD] 100,000.00[equivalent]. Authorized Signatures Withdrawal and Documentation Applications The form for Authorized Signatories Letter is provided in Attachment 1 of this letter The form for Authorized Signatory Letter is provided in Attachment 1 of this letter. The ASL and all Withdrawal Applications with their supporting documentation will be submitted electronically via the Association’s “Client Connection” system. Additional Information For Reimbursement of counterpart funds utilized during the period between signing and effectiveness, COMESA will submit SOEs as supporting documents. All other Reimbursements will be on Interim Financial Reports (IFR) basis. Date_______________ International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Attention: Country Director Dear Country Director: Re: E349-3E (Inclusive Digitalization in Eastern and Southern Africa under the Multi- Phase Programmatic Approach) I refer to the Grant Agreement (“Agreement”) between the International Development Association (“Association”) Common Market for Eastern and Southern Africa (“Recipient”), providing the above Grant. For the purposes of Section 2.03 of the General Conditions 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 Withdrawal Applications (“Application”) and applications for a special commitment under this Grant. For the purpose of delivering Applications to the Association, including by electronic means, each of the persons whose authenticated specimen signatures appears below is authorized on behalf of the Recipient, acting individually or jointly, 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 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 / ______________ [Position]3 3 Instruction to Association staff: please forward this letter to the Country Lawyer for further processing (Borrower: please do not delete this note). Attachment 2 Interim unaudited Financial Statements Attachment 3 Statements of Expenditure – SOE