THE WORLD BANK IBRO • IDA J WORLDBANKOROUP KEVIN A TOMLINSON Acting 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: IBRD Loan - 9765-UA (Additional Financing for the Investing in Social Protection for Inclusion, Resilience and Efficiency (INSPIRE) Project) Additional Instructions: Disbursement and Financial Information Letter Excellency: I refer to the Loan Agreement between UKRAINE (the "Borrower") and the International Bank for Reconstruction and Development (the "Bank") for financing the above-referenced Project. The General Conditions, as defined in the Loan Agreement, provide that the Borrower may from time-to-time request withdrawals of Loan Amounts from the Loan Account in accordance with the Disbursement and Financial Information Letter ("DFIL"), and such additional instructions as the Bank may specify from time to time by notice to the Borrower. The General Conditions also provide that the Disbursement and Financial Information Letter may set out Project specific financial management and reporting requirements. This letter constitutes such Disbursement and Financial Information Letter and may be revised from time to time. I. Disbursement Arrangements, Withdrawal of Loan Funds, and Reporting of Uses of Loan Funds (i) Disbursement Arrangements The Disbursement Guidelines for Investment Project Financing, dated February 2017 ("Disbursement Guidelines"), are available on · the Bank's secure website "Client Connection" at http ://clientconnection.,, orldbank.org and its public website at https://www.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 Loan is specified below. The table in Schedule 1 sets out the disbursement methods which may be used by the Borrower, information on registration of authorized signatories, processing of Withdrawal Applications and instructions on supporting documentation. (ii) Withdrawal Applications (Electronic Delivery) ' The Borrower shall submit applications for withdrawal or for special commitment ("Applications")" with supporting documents electronically through the Bank's web-based portal "Client Connection" at http ://clientconnection.worldbank.org. This option will be effected after the officials designated in writing by the Borrower, who are authorized to sign and deliver Applications, have registered as users of "Client 1 Section 10.01 (c) of the General Conditions 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 Borrower 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 these means. The Borrower may exercise the option of preparing and delivering Applications in paper form on exceptional cases (including those where the Borrower encounters legal limitations) and which were previously agreed with the Bank. By designating officials to use SIDC and deliver the Applications electronically, the Borrower 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 Bank's public website at https://www.worldbank.org and "Client Connection" at http ://clientconnection.worldbank.org; and (b) to cause such officials to abide by those terms and conditions. II. Financial Reports and Audits 2 • Financial Reports. The Borrower shall, through Ministry of Social Policy, 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. • Audits. Each audit of the Financial Statements shall cover the period of one ( 1) fiscal year of the Borrower, commencing with the second quarter of calendar year 2024. The audited Financial Statements for each such period shall be furnished to the Bank by the Borrower, through Ministry of Social Policy, not later than six (6) months after the end of such period. III. Other Information For additional information on disbursement arrangements, please refer to the Loan Handbook available on the Bank's public website at h.!:ms://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 Loan 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, Acting Country Director Eastern Europe Europe and Central Asia Region 2 Section 5.09 of the General Conditions 2 Attachments 1. Form of Authorized Signatory Letter 2. PBC Payment Reconciliation Statement With copies: Olga Zykova, Deputy Minister Ministry of Finance of Ukraine 11 Mezhigirska St. Kyiv, Ukraine infomf@minfin.gov.ua 3 Schedule l : Disbursement Provisions Basic Information Cou.nt:rv UKRAINE Closing Date Section Ill.B.9 of Schedule 2 to Borrower Ministrv of Finance the Loan Agreement. IBRD Loan IBRD- Name of the Project Additional Financing for the Investing Disbursement Four (4) months after the closing No. 9765-UA in Social Protection for Inclusion, Deadline Date date Resilience and Efficiency (INSPIRE) Subsection 3. 7 ** Project -· Disbursement Methods and Suooortine.: l)gcmentation Disbursement Methods Methods Supporting Documentation Section 2 (**) Subsections 4.3 and 4.4 (* *) Direct Payment No Not Aoolicable Reimbursement Yes • PBC Payment Reconciliation Statement, in the format provided in Attachment 2 of the DFIL • Bank notification confirming that (i) one or more PBCs (as referred to in Annex to Schedule 2 of the Loan Agreement) have been achieved and, (ii) indicating the amounts payable for such PBCs Advance (into a Designated Yes • PBC Payment Reconciliation Statement, in the format provided in Attachment 2 of the DFIL Account) • Bank notification confirming that (i) one or more PBCs (as referred to in Annex to Schedule 2 of the Loan Agreement) have been achieved and, (ii) indicating the amounts payable for such PBCs Special Commitments No . Not Aoolicable . -- . Desi2nated Account (Sections 5 and 6 ** Type Segregated Ceiling Variable Financial Institution - National Bank of Ukraine USD Currency Name Frequency of Reporting Quarterly Six-month PBC achievement forecast Amount Subsection 6.3 (**) Minimum Value of Aoolications (subsection 3.5) Not Aoolicable Authorized Signatures (Subsection 3.1 and 3.2 **) The form for Authorized Signatories letter is provided in Attachment I ofthis letter Withdrawal and Documentation Annlications (Subsection 3.3 and 3.4 **) 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 Bank's "Client Connection" system. .. Additional Instructions • • For each withdrawal request against Category 1, the amount payable shall be the lesser between the amount allocated for the achievement of one or more PBCs and the amount of EEPs by the achievement date of such PBCs. ** Sections and subsections relate to the "Disbursement Guidelines for Investment Project Financing", dated February 2017. Attachment 1 Form of Authorized Signatory Letter [Letterhead] Ministry of Finance [Street address] [DATE] The World Bank 1818 H Street, N. W. Washington, D.C. 20433 United States of America Attention: [Country Director] 3 Dear [Country Director]: Re: IBRD Loan [Loan No.] - [Country Code] - [Project Name] I refer to the Loan Agreement (Agreement") between the International Bank for Reconstruction and Development ("Bank") and [Borrower Name] ("Borrower"), providing the above Loan. For the purposes of Section 2.02 of the General Conditions as defined in the Agreement, any 4 [one/two/three) of the persons whose authenticated specimen signatures appear below is/are authorized on behalf of the Borrower to sign and submit an application to request a withdrawal from the Loan Account ("Applications"). For the purpose of delivering the Applications to the Bank, 5 [one/two/three] of the persons whose authenticated specimen signatures appear below is/are authorized on behalf of the Borrower, acting [individually / jointly6 ) to deliver the Applications, and evidence in support thereof on the tenns and conditions specified by the Bank. This Authorization also confirms that the Borrower is authorizing such persons to accept Secure Identification Credentials (SIDC) and to deliver the Applications and supporting documents to the Bank, including by electronic means. The Bank shall rely upon such representations and warranties, including 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 Borrower represents and warrants to the Bank that it will cause such persons to abide by those terms and conditions. This Authorization replaces and supersedes any Authorization currently in the Bank records with respect to the Agreement(s) referred to in the subject line of this Authorization. 3 Instruction to Bank staff: please forward this letter to the Country Lawyer for further processing (Borrower: please do not delete this note). 4 Instruction to the Borrower: 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 the final letter that is sent to the Bank. 5 Instruction to the Borrower: Stipulate if more than one person needs to jointly sign Applications, ifso, please indicate the actual number. Please delete this footnote in the final letter that is sent to the Bank. 6 Instruction to the Borrower: Use this bracket only if several individuals must jointly sign each Application; if this is not applicable, please delete it. Please delete this footnote in the final letter that is sent to the Bank. Signatory Details Name Position Email ID rsi2natory Namel rTitlel rEmaill Specimen Signatures Signatory Name Signature 1 Signature 2 Signature 3 [User Name] [User Name] Yours truly, /signed/ [Position]7 7 Instruction to Bank staff: please forward this letter to Country Lawyer for further processing (Borrower: please do not delete this note). Attachment 2 - PBC Payment Reconciliation Statement under Category 1 TABLE 1: SUMMARY STATEMENT OF ELIGIBLE EXPENDITURES AS OF MM-DD-VY NAME AMOUNT CUMULATIVE ELIGIBLE EXPENDITURES PAID AT THE END OF CURRENT 1 REPORTING PERIOD OF THE PROJECT (Category 1) CUMULATIVE PBC PAYMENT MADE AT THE END OF THE PREVIOUS 2 REPORTING PERIOD * 3 CUMULATIVE OUSTANDING ELIGIBLE EXPENDITURES (line 1-line 2) 4 PBC PAYMENT REQUEST UNDER CATEGORY 1** 5 AMOUNT PAYABLE UNDER CATEGORY t • 0 6 OUTSTANDING ADVANCE PAID PRIOR TO THE PRESENT APPLICATION OUSTANDING ADVANCE AFTER THE PRESENT APPLICATION (line 6 - 1 llrie 3 - line 5) * Total of column 2 of Table 2 ** Total of column 3 of Table 2 *** Should be the lesser between line 3 and line 4 TABLE 2: SUMMARY STATEMENT OF PBC STATUS AS OF MM-DD-VY Cumulative Cumulative PBC amount amount paid PBC amount amount paid payable in PBC Allocation in the verified in the at the end of the current previous current report the current report report period 1 2 3 4 5 PBC#X PBC#XX PBC#XXX PBC#XXXX PBC#XXXX TOTAL