22-Jul-2024 Date: _____________ Tahir Hamid Nguilin Minister of State, Minister of Finance, Budget, Economy and Planning Ministry of Finance, Budget, Economy and Planning N’Djamena, Republic of Chad Re: SASPP Grant No. TFC5011 (Chad Adaptive and Productive Safety Nets Project) Additional Instructions: Disbursement and Financial Information Letter Excellency: I refer to the Grant Agreement (“Agreement”) between Republic of Chad (“Recipient”), and the International Bank for Reconstruction and Development/International Development Association (“Bank” 1 ), acting as Administrator of the Multi-Donor Trust Fund for the Sahel Adaptive Social Protection Program, for the above-referenced project. The Standard Conditions, as defined in the Grant Agreement, provide that the Recipient may from time-to-time request withdrawals of Grant amounts from the Grant in accordance with the Disbursement and Financial Information Letter, and such additional instructions as the Bank may specify from time to time by notice to the Recipient. The Standard Conditions also provide 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 (“DFIL”) and may be revised from time to time. I. Disbursement Arrangements, Withdrawal of Grant Funds, and Reporting of Uses of Grant Funds The Disbursement Guidelines for Investment Project Financing dated February 2017, (“Disbursement Guidelines”) are available in the Bank's public website at https://www.worldbank.org, and are an integral part of the Disbursement and Financial Information Letter. The manner in which the provisions in the Disbursement Guidelines apply to the Grant is specified below. (i) Disbursement Arrangements The table in Schedule 1 provides the disbursement methods which may be used by the Recipient, information on registration of authorized signatories, processing of Withdrawal Applications (including minimum value of applications and advances), instructions on supporting documentation, and frequency of reporting on the Designated Account(s). 1 “Bank” means: (a) IBRD if the Grant is made or administered by IBRD; (b) IDA if the Grant is made or ministered by IDA; and (c) collectively, IBRD and IDA if the Grant is made or administered by both IBRD and IDA. (ii) Withdrawal Applications (Electronic Delivery) 2 The Recipient will deliver Withdrawal Applications (with supporting documents, “Applications”) 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 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 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 Bank's public website at https://www.worldbank.org and “Client Connection”; and (b) to cause such officials to abide by those terms and conditions. II. Financial Reports and Audits 3 (i) Financial Reports The Recipient must prepare and furnish to the Bank 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. The Recipient shall cause the UN agency to provide financial reports as stipulated in the agreement between the Recipient and the UN agency in a timely manner. 4 (ii) Audits Each audit of the Financial Statements must 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 must be furnished to the Bank not later than six (6) months after the end of such period. The Recipient shall cause the UN agency to provide the project audit report as stipulated in the agreement between the Recipient and the UN agency in a timely manner. 5 2 Section 7.01(c) of the Standard Conditions 3 Section 2.07(a) and (b) of the Standard Conditions. 4 Where a UN agency is contracted by the Recipient, the Recipient is responsible to ensure that the financial reporting requirements applicable to the UN Agency are stipulated in the agreement between the Recipient and the UN agency and met in a timely manner. 5 Where a UN agency is contracted by the Recipient, the Recipient is responsible to ensure that the documentation requirements applicable to the UN agency, for project audit purposes, are stipulated in the agreement between the Recipient and the UN agency. III. Other Important Information For additional information on disbursement arrangements, please refer to the Loan Handbook available on the Bank’s public website and “Client Connection”. The Bank 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 Grant, 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 Bank by email at AskLoans@WorldBank.org using the above reference. Yours sincerely, ______________________________ Clara de Sousa Country Director for Chad Western and Central Africa Region Attachments 1. Form of Statement of Expenditure (SOE) – Default 2. Statement of Expenditure (SOE) – Cash transfers 3. Statement of Expenditure (SOE) – IGA Cash transfers Schedule 1 - Disbursement Provisions A. Basic Information Country Republic of Chad Closing Date Section III.B.2. of Schedule 2 to Grant Recipient Republic of Chad the Financing Agreement. TFC5011 Number Name of the Project Chad Adaptive and Productive Safety Disbursement Four (4) months after the closing Nets Project Deadline Date 6 date. B. Disbursement Methods and Supporting Documentation Disbursement Methods 7 Methods Supporting Documentation 8 Direct Payment Yes Copy of records (e.g. invoices and receipts) Reimbursement Yes  Statement of Expenditure (SOE) in the format provided in Attachment 2 of the DFIL for Disbursement Category 4 (cash transfers)  Statement of Expenditure (SOE) in the format provided in Attachment 3 of the DFIL for Disbursement Category 3 (IGA subsidies) Statement of Expenditure (SOE) in the format provided in Attachment 1 of the DFIL for other Disbursement Categories Advance (into a Designated Yes  Statement of Expenditure (SOE) in the format provided in Attachment 2 of the DFIL for Account) Disbursement Category 4 (cash transfers)  Statement of Expenditure (SOE) in the format provided in Attachment 3 of the DFIL for Disbursement Category 3 (IGA subsidies) Statement of Expenditure (SOE) in the format provided in Attachment 1 of the DFIL for other Disbursement Categories Special Commitments Yes Copy of Letter of Credit (including pro forma invoice(s), if cited in the Letter of Credit) C. Designated Account(s) 9 Type and Management Unit Segregated - managed by PIU Ceiling Fixed Financial Institution- Name CORIS Bank International - Chad Currency Francs CFA Same as IFR: Quarterly 3 months of cash flow requirements as Frequency of Reporting 10 Amount documented in the IFR and approved by the TTL D. Minimum Value of Applications 11 The minimum value of applications for Reimbursement, Direct Payment and Special Commitment is 15% of the DA ceiling. For notes in Schedule 1: Sections and subsections relate to the “Disbursement Guidelines for Investment Project Financing”, dated February 2017. 6 Subsection 3.7 7 Section 2 8 Subsections 4.3 and 4.4 9 Sections 5 and 6 10 Subsection 6.3 11 subsection 3.5 E. Authorized Signatories 12 Withdrawal and Documentation Applications 13 Applications for this Financing will be signed by the official(s) authorized to sign Applications as indicated in your letter of Mai 10, 2023 and signed by H.E. ASSOUYOUTI Mahamat ABAKAR, Minister of Economic Prospects and International Partnerships, and any updates. All Applications and its supporting documentation will be electronically sent via the Bank’s system “Client Connection”. F. Additional Instructions 12 Subsection 3.1 and 3.2 13 Subsection 3.3 and 3.4 ` Attachment 1 – Statement of Expenditures IBRD – International Bank for Reconstruction and Development/IDA – International Development Association Statement of Expenditures Financier Payment made during the period from to Loan/Credit/Grant # Application # The following expenditures have been incurred during the retroactive financing period (please tick) Yes No Category # The following expenditures have been incurred before the closing date of the loan/credit/grant (please tick) Yes No Page # ONLY for the Designated Account 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Item Supplier’s Brief Prior Contract # Contract Invoice Date of Total % Eligible Exchange Date of Amount No Name Description Review Currency Number Payment Amount of Financed Amount Rate Withdrawal Withdrawn of the (Contract?) (Client and Invoice from the from the from the Expenditure Connection Amount Covered by Bank (Col 9 x Designated Designated (YES or # for Prior Application 10) Account Account NO) Review (Original + Contracts) Amendment) (Net of (Col 11/12) Retention) 0.00 0.00 TOTAL 0.00 Supporting documents for this SOE are retained at (insert location) A separate form should be used for each category. Attachment 2 – Form of Summary of Expenditure for CASH TRANSFERS SOE APPLICATION FOR WITHDRAWAL STATEMENT OF EXPENDITURES - CUSTOMIZED Category No. 1 2 3 4 5 6 7 8 9 10 11 Cash Total amount Cash Amount Paid Amount of Payment and Total Currency Item No. Remarks Payment Transfer Name and Transfer Brief Description Transfer from Elig. % Date of Cash request Address of Agreement of Cash Transfer payment request Designated Eligible for Beneficiary No. & Date Activities covered by application Account (if Financing (or other ref.) (net of retention) any) TOTALS Attachment 3– Customized SOE for IGA Cash Transfers Report for IGA Cash Transfers (1) 1 2 3 4 5 6 7 8 9 10 11 Amount of Cash Transfer Name and Cash Transfer Address of Agreement No. Total amount Currency and Total Brief Description of Income Generating Date of Payment Beneficiary & Date (or of Cash Amount Paid Remarks Transfer Payment Activities other ref.) Item No. Elig. % from Paid payment request Designated covered by Eligible for Account (if application Financing any) (net of retention) TOTALS [1] Supporting documents for this report retained at:(insert location)