15-Oct-2019 _______________ Mr. Noor Ahmed Secretary Economic Affairs Division Ministry of Finance, Revenue and Economic Affairs Islamic Republic of Pakistan Islamabad, Pakistan IDA Credit 6462-PK (KP Integrated Tourism Development Project) Additional Instructions: Disbursement and Financial Information Letter Dear Mr. Ahmed, I refer to the Financing Agreement between the Islamic Republic of Pakistan (the “Recipient”) and the International Development Association (the “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 Account 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 guidelines apply to the Credit is specified below. (i) Disbursement Arrangements The table in Schedule 1 sets out 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 processing of advances), instructions on supporting documentation, and frequency of reporting on the Designated Accounts. (ii) Electronic Delivery The Recipient will deliver Withdrawal Applications (with supporting documents) 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 Withdrawal 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 1818 H Street NW  Washington, DC 20433 USA Recipient may exercise the option of preparing and delivering Withdrawal Applications in paper form on exceptional cases (including those where the Borrower 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://worldbank.org and “Client Connection”; and (b) to cause such official to abide by those terms and conditions. II. Financial Reports and Audits. (i) Financial Reports. The Recipient must prepare and furnish to the Association not later than forty-five (45) days after the end of each calendar semester, interim unaudited financial reports (“IFR”) for the Project covering the semester. (ii) Audits. Each audit of the Financial Statements must cover the period of one 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 Association 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 Association’s website (http://www.worldbank.org/) 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 above reference. Sincerely, _________________________ Patchamuthu Illangovan Country Director Pakistan South Asia Region Attachments 1. Form of Authorized Signatory Letter 2. Form of Interim Unaudited Financial Reports (IFRs) Schedule 1: Disbursement Provisions Basic Information Country Islamic Republic of Pakistan Section III.B.2. of Schedule 2 to the Closing Date Recipient Islamic Republic of Pakistan Financing Agreement. Grant/Credit 6462-PK Name of the Project KP Integrated Tourism Development Disbursement Four months after the closing date. Number Project Deadline Date Subsection 3.7 ** Disbursement Methods and Supporting Documentation Disbursement Methods Methods Supporting Documentation Section 2 (**) Subsections 4.3 and 4.4 (**) Direct Payment Yes Copy of records Reimbursement Yes Interim unaudited Financial Report (IFR) in the format provided in Attachment 2 of the DFIL Advance Yes Interim unaudited Financial Report (IFR) in the format provided in Attachment 2 of the DFIL (Designated Account) Special Commitments Yes Copy of Letter of Credit Designated Account (Sections 5 and 6 **) Two Segregated Accounts: Forecast for one semester as Type Ceiling DA-A for PMU-DoT; and provided in the quarterly IFRs. DA-B for PMU-C&W Financial Institution National Bank of Pakistan (through Currency United States Dollar (USD) the State Bank of Pakistan) Frequency of Reporting Subsection 6.3 (**) Semi-annually (Same as IFRs) Minimum Value of Applications (subsection 3.5) The minimum value of applications for Reimbursement, Direct Payment, and Special Commitment is not applicable for this project. Authorized Signatures (Subsection 3.1 and 3.2 **) The form for Authorized Signatories Letter is provided in Attachment 1 of this letter Withdrawal and Documentation Applications (Subsection 3.3 and 3.4 **) Authorized Signatures – The ASL will be sent to the following address: The Bank/Association Attention: Loan Operations Unit, WFACS (Pakistan) 20-A Shahrah-e-Jamhuriat, G-5/1 Islamabad, Islamic Republic of Pakistan Withdrawal Applications (WAs)- All WAs and its supporting documentation will be electronically sent through the Bank’s system ClientConnection. Additional Instructions  The frequency of reporting eligible expenditures paid from the Designated Account (DA) is semi-annual through IFRs and copy of DA’s bank statements.  Further advances from the DA to other account(s) of the Project is allowed, as long as these further advances are accounted for within a reasonable period of time or not to exceed 90 days. Notes ** 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] [City] [Country] [DATE] The World Bank 1818 H Street, N.W. Washington, D.C. 20433 United States of America Attention: Country Director Credit No. 6462-PK (KP Integrated Tourism Development Project) I refer to the Financing Agreement (“Agreement”) between the Islamic Republic of Pakistan and the International Development Association (the “Association”) dated _______, 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 applications for withdrawal and applications for a special commitment under this Credit. 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 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. SIDC”), the 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. [Name], [position] Specimen Signature: ____________________ [Name], [position] Specimen Signature: ____________________ [Name], [position] Specimen Signature: ____________________ Yours truly, / signed / ______________ Form of Interim Unaudited Financial Reports (IFRs) P163562 – KHYB ER PAKHTUNKHWA INTEGRATED TOURISM DEVELOPM ENT PROJECT IDA No. Project Management Unit - Department of Tourism Inte rim Financial Re port for the s e me s te r e nde d mm/dd/yyyy STATEM ENT OF SOURCES AND USES OF FUNDS For the Se me s te r For the Se me s te r Se rial Particulars e nde d Ye ar to Date Ince ption to Date e nde d Ye ar to Date Ince ption to Date No mm/dd/yyyy mm/dd/yyyy Pak Rupe e s US Dollars A SOURCES OF FUNDS: Designated/Assignment Accout - Receipt Direct Payment Reimbursement Counterpart Funding Total Re ce ipts (Total of A) B USES OF FUNDS: Component 1 1.1 Consultants' Services 1.2 Non-Consulting Services 1.3 Civil Work s 1.4 Goods 1.5 Incremental Operating Costs 1.6 Training and Work shops Sub Total of Component 1 Component 2 1.1 Consultants' Services 1.2 Non-Consulting Services 1.3 Civil Work s 1.4 Goods 1.5 Incremental Operating Costs 1.6 Training and Work shops Sub Total of Component 2 Component 3 1.1 Consultants' Services 1.2 Non-Consulting Services 1.3 Civil Work s 1.4 Goods 1.5 Incremental Operating Costs 1.6 Training and Work shops Sub Total of Component 3 Component 4 1.1 Consultants' Services 1.2 Non-Consulting Services 1.3 Civil Work s 1.4 Goods 1.5 Incremental Operating Costs 1.6 Training and Work shops Sub Total of Component 4 Total Us e of Funds (Total of B ) - - - - - - D SURPLUS / (DEFICIT) Total of A minus B E OPENING B ALANCE (As per Break Up given Below) F CLOSING B ALANCE (As per Break up given below) Ope ning B alance Clos ing B alance Ope ning B alance Clos ing B alance B re akup of Ope ning and Clos ing Cas h B alance : mm/dd/yyyy mm/dd/yyyy mm/dd/yyyy mm/dd/yyyy Pak Rupe e s US Dollars Designated Account Balance Advances with Partnering Institutions ( if any ) Cash in Hand Total P163562 – KHYBER PAKHTUNKHWA INTEGRATED TOURISM DEVELOPMENT PROJECT IDA No. Project Management Unit - Department of Tourism Interim Financial Report for the semester ended mm/dd/yyyy VARIANCE ANALYSIS OF USE OF FUNDS Semester (mm/yyyy) Cumulative for the Year (Pak Rs) Cumulative - Inception to Date (Pak Rs) Component Details Variance Variance Variance Planned Rs Actual Rs Planned Rs Actual Rs Planned Rs Actual Rs Amount Rs % age Amount Rs % age Amount Rs % age Component 1 Consultants' Services Non-Consulting Services Civil Works Goods Incremental Operating Costs Training and Workshops A. Sub Total of Component 1 Component 2 Consultants' Services Non-Consulting Services Civil Works Goods Incremental Operating Costs Training and Workshops B. Sub Total of Component 2 Component 3 Consultants' Services Non-Consulting Services Civil Works Goods Incremental Operating Costs Training and Workshops C. Sub Total of Component 3 Component 4 Consultants' Services Non-Consulting Services Civil Works Goods Incremental Operating Costs Training and Workshops D. Sub Total of Component 4 T O T A L (A+B+C+D) Reasons for the Variance P163562 – KHYBER PAKHTUNKHWA INTE GRATE D TOURISM AND E NTE RPRISE DE VELOPMENT PROJECT IDA No. Project Management Unit - Department of Tourism Interim Financial Report for the s emes ter ended mm/dd/yyyy CASH FORE CAST FOR THE 6 MONTHS E NDING mm/dd/yyyy Particulars Cas h Requirements for Next Six Months Pak Rs . US Dollars * Component 1 Consultants' Services Non-Consulting Services Civil Work s Goods Incremental Operating Costs Training and Work shops A. Sub Total of Component 1 Component 2 Consultants' Services Non-Consulting Services Civil Work s Goods Incremental Operating Costs Training and Work shops B. Sub Total of Component 2 Component 3 Consultants' Services Non-Consulting Services Civil Work s Goods Incremental Operating Costs Training and Work shops C. Sub Total of Component 3 Component 4 Consultants' Services Non-Consulting Services Civil Work s Goods Incremental Operating Costs Training and Work shops D. Sub Total of Component 4 T O T A L (A+B+C+D) *The convers ion rate for US$ agains t Pak Rupees s hould be the prevailing exchange rate at the date of s ubmis s ion of IFRs 2A.4–- KHYBER P163562 Attachment PAKHTUNKHWA INTEGRATED TOURISM DEVELOPMENT PROJECT Interim unaudited Financial Statements (DoT) IDA No. Project Management Unit - Department of Tourism Interim Financial Report for the semester ended mm/dd/yyyy DESIGNATED ACCOUNT ACTIVITY STATEMENT I II III Note US$ US$ PART I 1. Advances to the end of current semester - 2. Expenditure to the end of last semester - 3. Outstanding Advances to be accounted for (Line 1 minus Line 2) - PART II 4. DA balance at beginning of semester - 5. Subtract: Cumulative Adjustments (if any) 1 - 6. Advances from IDA during the semester - 7. Sub total of Advances and Adjustments (5+6) - 8. Outstanding Advances to be accounted for (Line 4 plus Line 7) - 9. DA balance at end of semester - 10. Subtract: Cumulative Adjustments (if any) 2 - 11. Expenditure for current reporting period Disbursement Category 1 - 12. Sub total of Adjustments and Expenditure (10+11) - 13. Advances accounted for (Add Line 9 and Line 12) - 14. Difference if any (Line 8 minus Line 13) Should be Zero - PART III 15. Total Forecasted amount to be paid by IDA - 16. Less - Closing DA balance after adjustments - 17. Imprest Petty Cash - 18. Forecast Direct / Special Commitment payments - 19. Sub total (Line 16 plus Line 17 and Line 18) - 20. Cash Requirement from IDA for next 6 months(Line 15 minus Line 19) - Note: Bank reconciliation statement and copy of the NBP stamped bank statement for the period should be attached Note 1: Cumulative Adjustments (if any) - Line 5 21. Petty Cash as at dd/mm/yyyy 22. Advances with partnering institution as at dd/mm/yyyy 23. Total petty cash balance and Advance at the start of the semester Note 2: Cumulative Adjustments (if any) - Line 10 24. Petty Cash as at dd/mm/yyyy 25. Advances with partnering institution as at dd/mm/yyyy 26. Total petty cash balance and Advance at the end of the semester P163562 – KHYBER PAKHTUNKHWA INTEGRATED TOURISM DEVELOPMENT PROJECT IDA No. Project Management Unit - Department of Tourism Interim Financial Report for the semester ended mm/dd/yyyy Contract Roaster Scheduled Actual Contract Submission of Submision of Sr Procurement Contract Description Contract Completion Contractor/Supplier Contract Value Deliveables Deliverables Deliverable Deliverables Payment Balance No. Method Signed Name & Country Final Date (Date) (Date) Rs. Amount to be paid Date Date Date 1 2 P163562 – KHYBER PAKHTUNKHWA INTEGRATED TOURISM DEVELOPMENT PROJECT IDA No. Project Management Unit - Communication and Works Department Interim Financial Report for the semester ended mm/dd/yyyy STATEMENT OF SOURCES AND USES OF FUNDS For the Semester For the Semester Serial Particulars ended Year to Date Inception to Date ended Year to Date Inception to Date No mm/dd/yyyy mm/dd/yyyy Pak Rupees US Dollars A SOURCES OF FUNDS: Designated/Assignment Accout - Receipt Direct Payment Reimbursement Counterpart Funding Total Receipts (Total of A) B USES OF FUNDS: Component 2 1.1 Consultants' Services 1.2 Non-Consulting Services 1.3 Civil Works 1.4 Goods 1.5 Incremental Operating Costs 1.6 Training and Workshops Sub Total of Component 2 Component 3 1.1 Consultants' Services 1.2 Non-Consulting Services 1.3 Civil Works 1.4 Goods 1.5 Incremental Operating Costs 1.6 Training and Workshops Sub Total of Component 3 Component 4 1.1 Consultants' Services 1.2 Non-Consulting Services 1.3 Civil Works 1.4 Goods 1.5 Incremental Operating Costs 1.6 Training and Workshops Sub Total of Component 4 Total Use of Funds (Total of B) - - - - - - D SURPLUS / (DEFICIT) Total of A minus B E OPENING BALANCE (As per Break Up given Below) F CLOSING BALANCE (As per Break up given below) Opening Balance Closing Balance Opening Balance Closing Balance Breakup of Opening and Closing Cash Balance: mm/dd/yyyy mm/dd/yyyy mm/dd/yyyy mm/dd/yyyy Pak Rupees US Dollars Designated Account Balance Advances with Partnering Institutions ( if any ) Cash in Hand Total P163562 – KHYBER PAKHTUNKHWA INTEGRATED TOURISM DEVELOPMENT PROJECT IDA No. Project Management Unit - Communication and Works Department Interim Financial Report for the semester ended mm/dd/yyyy VARIANCE ANALYSIS OF USE OF FUNDS Semester (mm/yyyy) Cumulative for the Year (Pak Rs) Cumulative - Inception to Date (Pak Rs) Component Details Variance Variance Variance Planned Rs Actual Rs Planned Rs Actual Rs Planned Rs Actual Rs Amount Rs % age Amount Rs % age Amount Rs % age Component 2 Consultants' Services Non-Consulting Services Civil Works Goods Incremental Operating Costs Training and Workshops B. Sub Total of Component 2 Component 3 Consultants' Services Non-Consulting Services Civil Works Goods Incremental Operating Costs Training and Workshops C. Sub Total of Component 3 Component 4 Consultants' Services Non-Consulting Services Civil Works Goods Incremental Operating Costs Training and Workshops D. Sub Total of Component 4 T O T A L (A+B+C+D) Reasons for the Variance P163562 – KHYBER PAKHTUNKHWA INTEGRATED TOURISM DEVELOPMENT PROJECT IDA No. Project Management Unit - Communication and Works Department Interim Financial Report for the semester ended mm/dd/yyyy CASH FORECAST FOR THE 6 MONTHS ENDING mm/dd/yyyy Particulars Cash Requirements for Next Six Months Pak Rs. US Dollars* Component 2 Consultants' Services Non-Consulting Services Civil Works Goods Incremental Operating Costs Training and Workshops B. Sub Total of Component 2 Component 3 Consultants' Services Non-Consulting Services Civil Works Goods Incremental Operating Costs Training and Workshops C. Sub Total of Component 3 Component 4 Consultants' Services Non-Consulting Services Civil Works Goods Incremental Operating Costs Training and Workshops D. Sub Total of Component 4 T O T A L (A+B+C+D) *The conversion rate for US$ against Pak Rupees should be the prevailing exchange rate at the date of submission of IFRs P163562 – KHYBER PAKHTUNKHWA INTEGRATED TOURISM DEVELOPMENT PROJECT IDA No. Project Management Unit - Communication and Works Department Interim Financial Report for the semester ended mm/dd/yyyy DESIGNATED ACCOUNT ACTIVITY STATEMENT I II III Note US$ US$ PART I 1. Advances to the end of current semester - 2. Expenditure to the end of last semester - 3. Outstanding Advances to be accounted for (Line 1 minus Line 2) - PART II 4. DA balance at beginning of semester - 5. Subtract: Cumulative Adjustments (if any) 1 - 6. Advances from IDA during the semester - 7. Sub total of Advances and Adjustments (5+6) - 8. Outstanding Advances to be accounted for (Line 4 plus Line 7) - 9. DA balance at end of semester - 10. Subtract: Cumulative Adjustments (if any) 2 - 11. Expenditure for current reporting period Disbursement Category 1 - 12. Sub total of Adjustments and Expenditure (10+11) - 13. Advances accounted for (Add Line 9 and Line 12) - 14. Difference if any (Line 8 minus Line 13) Should be Zero - PART III 15. Total Forecasted amount to be paid by IDA - 16. Less - Closing DA balance after adjustments - 17. Imprest Petty Cash - 18. Forecast Direct / Special Commitment payments - 19. Sub total (Line 16 plus Line 17 and Line 18) - 20. Cash Requirement from IDA for next 6 months(Line 15 minus Line 19) - Note: Bank reconciliation statement and copy of the NBP stamped bank statement for the period should be attached Note 1: Cumulative Adjustments (if any) - Line 5 21. Petty Cash as at dd/mm/yyyy 22. Advances with partnering institution as at dd/mm/yyyy 23. Total petty cash balance and Advance at the start of the semester Note 2: Cumulative Adjustments (if any) - Line 10 24. Petty Cash as at dd/mm/yyyy 25. Advances with partnering institution as at dd/mm/yyyy 26. Total petty cash balance and Advance at the end of the semester P163562 – KHYBER PAKHTUNKHWA INTEGRATED TOURISM DEVELOPMENT PROJECT IDA No. Project Management Unit - Communication and Works Department Interim Financial Report for the semester ended mm/dd/yyyy Contract Roaster Scheduled Actual Contract Submission of Submision of Sr Procurement Contract Description Contract Completion Contractor/Supplier Contract Value Deliveables Deliverables Deliverable Deliverables Payment Balance No. Method Signed Name & Country Final Date (Date) (Date) Rs. Amount to be paid Date Date Date 1 2