TANIA MEYER Country Manager Cambodia 27-Sep-2024 _________________ H.E. Dr. Aun Pornmoniroth Deputy Prime Minister Minister of Economy and Finance Ministry of Economy and Finance Street 92, Sangkat Wat Phnom Khan Daun Penh, Phnom Penh Kingdom of Cambodia Re: IDA Credit No. 76340-KH (Second Higher Education Improvement Project) Additional Instructions: Disbursement and Financial Information Letter Excellency: I refer to the Financing Agreement between the Kingdom of Cambodia (“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 Credit amounts from the Credit Accounts in accordance with the Disbursement and Financial Information Letter, 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 (“DFIL”) and may be revised from time to time. I. Disbursement Arrangements, Withdrawal of Credit Funds, and Reporting of Uses of Credit Funds 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 the DFIL, and the manner in which the provisions in the Disbursement Guidelines apply to the Credit 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 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) The Recipient will 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 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 Association 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 Association. 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://www.worldbank.org and “Client Connection”; and (b) to cause such officials to abide by those terms and conditions. II. Financial Reports and Audits (i) Financial Reports The Recipient shall through the Ministry of Education, Youth and Sport (MoEYS), each prepare and furnish to the Association not later than forty-five (45) days after the end of each semester, separate Interim Unaudited Financial Reports (“IFRs”) for the Project covering the semester. (ii) Audits. Each audit of the Project Financial Statements shall cover the period of one (1) fiscal year of the Borrower, 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 the MoEYS, 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 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 Credit, 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 loan name and number: Second Higher Education Improvement Project, IDA Credit No 76340-KH, as applicable. 3 Yours sincerely, _______________________ Tania Meyer Country Manager Cambodia Cambodia Attachments 1. Form of Authorized Signatory Letter 2. Interim unaudited Financial Report (IFR) With copies: H. E. Pen Thirong Under Secretary of State Ministry of Economy and Finance (MEF) Street 92, Sangkat Wat Phnom Khan Daun Penh, Phnom Penh Kingdom of Cambodia Telephone: 855-23-724-664 Email: thirong_pen@mef.gov.kh H.E. Dr. Sann Vathana Secretary of State Ministry of Education, Youth and Sport #80, Norodom Blvd. Khan Daun Penh, Phnom Penh, Kingdom of Cambodia Telephone: 855-77-586-886 Email: sann.vathana@moeys.gov.kh 4 Schedule 1: Disbursement Provisions A. Basic Information Country Kingdom of Cambodia Closing Date Section III B.2 of Schedule 2 to the IDA 76340- Recipient’s Ministry of Economy and Finance Financing Agreement Credit Number KH Representative Name of the Project Second Higher Education Disbursement Four (4) months after the Closing Improvement Project Deadline Date Date B. Disbursement Methods and Supporting Documentation Disbursement Methods Methods Supporting Documentation Direct Payment Yes Records (Supplier Invoices/Copy of Receipts) Reimbursement Yes Interim unaudited Financial Report (IFR) in the format provided in Attachment 2 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 C. Designated Account(s) Type and Management Unit Segregated; to be managed by MoEYS Ceiling Variable Financial Institution - Name National Bank of Cambodia Currency U.S. Dollars 1 Quarterly Based on the two quarters of cash flow Frequency of Reporting Amount forecast D. Minimum Value of Applications The minimum value of applications for Direct Payment, Reimbursement, and Special Commitment is USD 100,000 equivalent. E. Authorized Signatures Withdrawal and Documentation Applications The form for Authorized Signatory Letter is provided in Attachment 1 of this letter. All Applications and its supporting documentation, and Authorized Signatory Letter will be electronically sent via the Bank’s system “Client Connection”. F. Additional Instructions N/A Other Disbursement of Emergency Expenditures: This Disbursement and Financial Information Letter (DFIL) may not be fully adapted to the disbursement of funds from time to time to Category 4 of the disbursement table included in Section III.A of Schedule 2 to the Financing Agreement. The DFIL will be revised, or a supplemental letter will be issued, if needed, when funds are allocated to Category 4. 5 Attachment 1 – Form of Authorized Signatory Letter [Letterhead] Ministry of Finance [Street address] [City] [Country] [DATE] International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Attention: Mariam J. Sherman, Country Director for East Asia Pacific Region Dear Ms. Sherman: Re: IDA Credit No. 76340-KH Second Higher Education Improvement Project I refer to the Financing Agreement (“Agreement”) between the International Development Association (“Association”) and the Kingdom of Cambodia (“Recipient”), providing the above Credit. For the purposes of Section 2.03 of the General Conditions as defined in the Agreement, any 1[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 [Credit] [Grant]. For the purpose of delivering Applications to the Association, including by electronic means, 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. 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. 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 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 – Interim Unaudited Financial Report 8 9