STEFAN EMBLAD Country Director West Bank & Gaza, MENA 10-Oct-2024 Date: _____________________ H.E. Wael Zakout Minister of Planning and International Cooperation Ministry of Planning and International Cooperation The Palestinian Authority Ramallah West Bank Re: TFGWB Grant No. TF0C6225 (Second Additional Financing to the Palestinian Emergency Financing Facility Project) Additional Instructions: Disbursement and Financial Information Letter Your Excellency, I refer to the Grant Agreement between the PALESTINE LIBERATION ORGANIZATION (for the benefit of the Palestinian Authority) (“Recipient”) and the INTERNATIONAL DEVELOPMENT ASSOCIATION (“World Bank”), acting as administrator of the Trust Fund for Gaza and the West Bank (“TFGWB”), 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 TF0C6225 (the “Grant Account”) in accordance with the Disbursement and Financial Information Letter (“DFIL”), and such additional instructions as the World Bank may specify from time to time by notice to the Recipient. The Standard Conditions also provide that the DFIL 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 Funds, and Reporting of Uses of Grant Funds The World Bank Disbursement Guidelines for Projects dated February 2017, (“Disbursement Guidelines”) are available in the World Bank'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 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 signatures, processing of withdrawal applications (including minimum value of applications and advances), instructions on supporting documentation, and frequency of reporting on the Designated Account. (ii) Withdrawal of Grant Funds (Electronic Delivery)1 The Recipient shall, through DGIRP, deliver Withdrawal Applications (with supporting documents) electronically through the World 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 shall deliver Withdrawal Applications electronically by completing 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 Withdrawal Applications and supporting documents to the World 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 World Bank. By designating officials to use SIDC and to deliver Withdrawal 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” at https://clientconnection.worldbank.org; and (b) to cause such official to abide by those terms and conditions. II. Financial Reports and Audits2 (i) Financial Reports. The Recipient shall, through DGIRP, prepare and furnish to the World Bank not later than forty- five (45) days after the final disbursement, interim unaudited financial reports (“IFR”) for the Project covering the entire Grant period. (ii) Audits. The audit of the Project Financial Statements shall cover the entire Grant period during which withdrawals from the Grant Account was made. The audited Project Financial Statements for such period shall be furnished to the World Bank by the Recipient, through DGIRP, not later than three (3) months after the Grant closing date. 1 Section 7.01 (c) of the Standard Conditions 2 Section 2.07 of the Standard Conditions. III. Other Important Information For additional information on disbursement arrangements, please refer to the Loan Handbook available on the World Bank’s public website at http://www.worldbank.org and “Client Connection” at https://clientconnection.worldbank.org. The World Bank recommends that you register as a user of “Client Connection”. From this website you will be able to prepare and deliver Withdrawal 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 World Bank by email at askloans@worldbank.org using the above reference. Yours sincerely, Stefan Emblad Country Director West Bank & Gaza Middle East and North Africa Region Attachments 1. Form of Authorized Signatory Letter (ASL) 2. Form of Summary of Expenditures (SOE) Cc with copies: Directorate General of International Relations and Projects (DGIRP) within the Ministry of Finance (MOF) Schedule 1 - Disbursement Provisions Basic Information Country West Bank and Gaza Closing Date Section III.B.3 of Schedule 2 to the Recipient Palestine Liberation Organization Grant Agreement. Grant TFGWB TF0C6225 Name of the Second Additional Financing to the Disbursement Four (4) months after the Closing Date. Number Project Palestinian Emergency Financing Deadline Date Facility Project Disbursement Methods and Supporting Documentation Disbursement Methods Methods Supporting Documentation Direct Payment Yes (Category 2 only) Copy of records (e.g., suppliers’ invoices, guarantees for advance and retention payments, etc.) Reimbursement Yes (Categories 1a, 1b Summary of Expenditures in the format provided in Attachment 2 of the DFIL and 3 only) Designated Account No Not Applicable Special Commitments No Not Applicable Designated Account Type Not Applicable Ceiling Not Applicable Financial Institution – Name Not Applicable Currency Not Applicable Frequency of Reporting Not Applicable Amount Not Applicable Minimum Value of Applications The minimum value of applications for Reimbursement and Direct Payment is USD 5,000 equivalent. Authorized Signatures Withdrawal and Documentation Applications The form for Authorized Signatory Letter (ASL) is provided in Attachment 1 of this letter. The ASL and all Withdrawal Applications with their supporting documentation shall be submitted electronically via the World Bank’s “Client Connection” system. Additional Information  Only Reimbursement method shall be used for eligible Salaries under categories 1a, 1b and 3.  Only Direct Payment method is available for the audit under category 2. Other Not Applicable Attachment 1: Form of Authorized Signatory Letter (ASL) Date___________ The World Bank 1818 H Street, N.W. Washington, D.C. 20433 United States of America Attention: Country Director Dear Country Director: Re: TFGWB Grant No. TF0C6225 (Second Additional Financing to the Palestinian Emergency Financing Facility Project) I refer to the Grant Agreement between PALESTINE LIBERATION ORGANIZATION (for the benefit of the Palestinian Authority) (“Recipient”) and the INTERNATIONAL DEVELOPMENT ASSOCIATION (“World Bank”), acting as administrator of the Trust Fund for Gaza and the West Bank (“TFGWB), for the above-referenced project, providing the above Grant. For the purposes of Section 3.04 (b) of the Standard Conditions, as defined in the Grant Agreement, any [3one] 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 this Grant. For the purpose of delivering Applications to the World Bank, 4[each] of the persons whose authenticated specimen signatures appears below is authorized on behalf of the Recipient, acting 5[individually] 6[jointly], to deliver Applications, and evidence in support thereof on the terms and conditions specified by the World Bank. 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 [World Bank] [by electronic means. In full recognition that the World Bank 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 3 Instruction to the Recipient when sending this letter to the World Bank: 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/Association. 4 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/Association. 5 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/Association. 6 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/Association. 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. Specimen Signature: ____________________ Specimen Signature: ____________________ Specimen Signature: ____________________ Yours truly, ______________ Attachment 2: Form of Summary of Expenditures (SOE)