ROBERT J. SAUM Country Director Europe and Central Asia Region H.E. Sergii Marchenko Minister of Finance Ministry of Finance of Ukraine 12/2 Hrushevskoho Kyiv 01008 Ukraine Re: IDA Credit 7656-UA (Seventh Additional Financing for the Public Expenditures for Administrative Capacity Endurance Project) Additional Instructions: Disbursement and Financial Information Letter Excellency: I refer to the Financing Agreement between Ukraine ("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 1 amounts from the Credit Account2 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, information on registration of authorized signatories, processing of Withdrawal Applications (including minimum value of applications) and, instructions on supporting documentation. 1 "Financing" means: (a) the Credit if the Financing Agreement provides for a Credit only; (b) the Grant if the Financing Agreement provides for a Grant only; or both the Credit and the Grant if the Financing Agreement provides for both a Credit and a Grant. 2 "Financing Account" means: (a) the Credit Account if the Financing Agreement provides for a Credit only; (b) the Grant Account if the Financing Agreement provides for a Grant only; or (c) the Credit Account in respect of the Credit and the Grant Account in respect of the Grant if the Financing Agreement provides for a Credit and a Grant. 2 (ii) Withdrawal Applications Electronic Deliver/ 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 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 shall 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 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 4 (i) Financial Reports. The interim unaudited financial reports ("IFR") for the Project are not required. (ii) Audits. The annual audit of the Financial Statements shall cover one year implementation period of the Project ending each June 30, the first period ending June 30, 2023. The audited Financial Statements for such period shall be furnished to the Association 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. 3 Section 11.01 (c) of the General Conditions. 4 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 ask loans@worl.dbank.org using the above reference. Yours sincerely, l~tz;;~ ' Kevin A Tomlinson Acting Country Director Eastern Europe Europe and Central Asia Region Attachments 1. Form of Authorized Signatory Letter 2. Form of Summary of Expenditure 4 Schedule 1 : Disbursement Provisions .C Basic lnforinatioa Country Ukraine Closing Date Section III.B.4 of Schedule 2 to the Recipient Ministry of Finance Financing Agreement Credit Name of the Project Seventh Additional Financing for the Disbursement Four (4) months after the closing 7656-UA Number Public Expenditures for Deadline Date5 date Administrative Capacity Endurance Project - B. Disbursement Methods and Sponortine Documentation Disbursement Methods 6 Methods Sunnortinl! Documentation7 Direct Payment Yes Copy of records Reimbursement Yes • Summary of Expenditure, in the format provided in Attachment 2 of the DFIL • Association notification confirming verification of Eligible Expenditure and amount payable as referred to in Schedule 2 of the Financing Agreement Advance (into a Designated No Not Applicable Account) Special Commitments No Not A oolicable - C. Desisaafed Atteuntts}' - - . Type and Management Unit Not Applicable Ceiling Not Applicable Financial Institution - Not Applicable Not Applicable Currency Name Frequency of Reporting9 Not Aoolicable Amount Not Aonlicable -- D. Miainnun Valae of Aoolications19 The minimum value of applications for and Direct Payment and Reimbursement Aoolication is USD I 0,000. - -·. t;. Aadlorized Sigaa1aresn Witlldrtn,,al IIIUI l)OCinnelltati()n Annlications12 The form for Authorized SiP:natory Letter is provided in Attachment I of this letter. For notes in Schedule 1: Sections and subsections relate to the "Disbursement Guidelines for Investment Project Financing", dated February 2017. 5 Subsection 3.7 6 Section 2 7 Subsections 4.3 and 4.4 8 Sections 5 and 6 9 Subsection 6.3 10 subsection 3.5 11 Subsection 3.1 and 3.2 12 Subsection 3.3 and 3.4 5 All Aoolications and its su documentation, and Authorized Signatory Letter will be electronically sent via the Bank's system "Client Connection". 6 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: [Country Director] Dear [Country Director]: Re: IDA [Credit] [Grant] No. _ _ _- _ (name of Project) I refer to the [Credit] [Grant] Agreement ("Agreement") between the International Development Association ("Association")[, acting as implementing of the]' and [name of recipient] ("Recipient"), providing the above [Credit] [Grant]. For the purposes of Section 2.03 of the General Conditions as defined in the Agreement, any 2 [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, 3 [each] of the persons whose authenticated specimen signatures appears below is authorized on behalf of the Recipient, acting 4 [individually] 5 Liointly], 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 1 Instruction to the Recipient: add text in line with the Grant Agreement if applicable; if not applicable delete it. Please delete this footnote in.final letter that is sent to the Associations 2 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. 3 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. 4 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. 5 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. 7 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. Signatory Details Name Position Email ID fSie:natory Namel [Title] [Email] Specimen Signatures Signatory Name Signature 1 Signature 2 Signature 3 [User Name] [User Name] Yours truly, /signed/ 8 Attachment 2 - Summary of Expenditures Payments made during the period from _ _ __ _ _ _ Loan to _ _ _ _ __ No.: Application No.: SOE No.: ACTUAL (in USD) PLANNED (in USD) VARIANCE PROJECT DESCRIPTION Year-To- Clllilulative- Year-To- Clllilulative- Year-To- Clllilulative- CUITent Period Current Period CUITent Period LIFE Date To-Date Date To-Date Date To-Date TOTAL Supporting documents for this Summary retained at (location)