OFFICIAL DOCUMENTS The World Bank 1818 H Street N.W. (202) 473-1000 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Washington, D.C. 20433 Cable Address: INTBAFRAD INTERNATIONAL DEVELOPMENT ASSOCIATION U.S.A. Cable Address: INDEVAS Date: October 17, 2013 Dr. Len Ishmael Director General Organisation of Eastern Caribbean States Secretariat Morne Fortune P. O. Box 179, Castries St. Lucia, W. I. Re: SIDS Grant No. TFO 14856-Saint Lucia (Eastern Caribbean Energy Regulatory Authority Project) Additional Instructions: Disbursement Dear Dr. Ishmael: I refer to the Letter Agreement ("Agreement") between the International Development Association ("World Bank"), acting as administrator of grant funds provided under the Support for Small Island Developing States (SIDS) DOCK Support Program Multi-Donor Trust Fund, and Organization of Eastern Caribbean States Secretariat ("OECS" or "Recipient") for the above- referenced project, dated A1 5 y . The Agreement provides that the World Bank may issue additional instructions regarding the withdrawal of the proceeds of Grant TF014856 ("Grant"). This letter ("Disbursement Letter"), as revised from time to time, constitutes the additional instructions. The attached World Bank Disbursement Guidelines for Projects, dated May 1, 2006, ("Disbursement Guidelines") (Attachment 1), are an integral part of the Disbursement Letter. The manner in which the provisions in the Disbursement Guidelines apply to the Grant is specified below. Sections and subsections in parentheses below refer to the relevant sections and subsections in the Disbursement Guidelines and, unless otherwise defined in this letter, the capitalized terms used have the meanings ascribed to them in the Disbursement Guidelines. I. Disbursement Arrangements (i) Disbursement Methods (section 2). The following Disbursement Methods may be used under the Grant: * Reimbursement * Advance * Direct Payment (ii) Disbursement Deadline Date (subsection 3.7). The Disbursement Deadline Date is 4 months after the Closing Date specified in the Grant Agreement. Any changes to this date will be notified by the World Bank. II. Withdrawal of Grant Proceeds (i) Authorized Signatures (subsection 3.1). A letter in the Form attached (Attachment 2) should be furnished to the World Bank at the address indicated below providing the name(s) and specimen signature(s) of the official(s) authorized to sign Applications: The World Bank 1818 H Street, N.W Washington, DC United States of America Attention: Ms. Sophie Sirtaine, Director, Caribbean Country Director Management Unit (ii) Applications (subsections 3.2 - 3.3). Please provide completed and signed (a) applications for withdrawal, together with supporting documents, to the address indicated below: The World Bank/Banco Mundial Setor Comercial Norte, Quadra 02, Lote A Edificio Corporate Finance Center 70 Andar 70712-900 Brasilia, D.F. Brazil Attention: Loan Department (iii) Electronic Delivery (subsection 3.4) The World Bank may permit the Recipient to electronically deliver to the World Bank Applications (with supporting documents) through the World Bank's Client Connection, web-based portal. The option to deliver Applications to the World Bank by electronic means may be effected if: (a) the Recipient has designated in writing, pursuant to the terms of subparagraph (i) of this Section, its officials who are authorized to sign and deliver Applications and to receive secure identification credentials ("SIDC") from the World Bank for the purpose of delivering such Applications by electronic means; and (b) all such officials designated by the Recipient have registered as users of Client Connection. If the World Bank agrees, the World Bank will provide the Recipient with SIDC for the designated officials. Following which, the designated officials may deliver Applications electronically by completing Form 2380, which is accessible through Client Connection (https://clientconnection.worldbank.org). The Recipient may continue to exercise the option of preparing and delivering Applications in paper form. The World Bank reserves the right and may, in its sole discretion, temporarily or permanently disallow the electronic delivery of Applications by the Recipient. (iv) Terms and Conditions of Use of SIDC to Process Applications. By designating officials to use SDIC 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 ("Terms and Conditions of Use of SIDC") provided in Attachment 3; and (b) to cause such official to abide by those terms and conditions. (v) Minimum Value ofApplications (subsection 3.5). The Minimum Value of Applications for Direct Payment and Reimbursement is USD 20,000. vi) Advances (sections 5 and 6). * Type of Designated Account[s] (subsection 5.3): Segregated. * Currency of DesignatedAccount[s] (subsection 5.4): United States Dollars. * Financial Institution at which the Designated Account[s] Will Be Opened (subsection 5.5): A commercial bank acceptable to the Association. * Ceiling (subsection 6.1): US$ 100,000 III. Reporting on Use of Grant Proceeds (i) Supporting Documentation (section 4). Supporting documentation should be provided with each application for withdrawal as set out below: * For requests for Reimbursement: o Summary of Expenditures (Summary Sheet) in the form attached (Attachment 4) with Records evidencing eligible expenditures (e.g., copies of receipts, supplier invoices) for payments made: > under contracts with Consulting Firms costing US$ 100,000 equivalent pei contract or more; and > under contracts with Individual Consultants costing US$ 50,000 equivalent per contract or more. o Statement of Expenditure in the form attached (Attachment 5) for payments that do not exceed the thresholds established above. * For reporting eligible expenditures paid from the Designated Account: o Summary of Expenditures (Summary Sheet) in the form attached (Attachment 4) with Records evidencing eligible expenditures (e.g., copies of receipts, supplier invoices) for payments made: > under contracts with Consulting Firms costing US$ 100,000 equivalent per contract or more; and > under contracts with Individual Consultants costing US$ 50,000 equivalent per contract or more. o Statement of Expenditure in the form attached (Attachment 5) for payments that do not exceed the thresholds established above. o Designated Account Bank Statement(s). o Designated Account Reconciliation Statement (Attachment 6) For requests for Direct Payment: records evidencing eligible expenditures, e.g., copies of receipts, supplier invoices (ii) Frequency of Reporting Eligible Expenditures Paid from the Designated Account (subsection 6.3): Quarterly. IV. Other Important Information For additional information on disbursement arrangements, please refer to the Disbursement Handbook available on the World Bank's public website at https://www.worldbank.orz and its secure website "Client Connection" at https://clientconnection.worldbank.org. Print copies are available upon request. If you have not already done so, the World Bank recommends that you register as a user of the Client Connection website (https://clientconnection.worldbank.org). From this website you will be able to download Applications, monitor the near real-time status of the Grant, and retrieve related policy, financial, and procurement information. All Recipient officials authorized to sign and deliver Applications by electronic means are required to register with Client Connection before electronic delivery can be effected. For more information about the website and registration arrangements, please contact the World Bank by email at . If you have any queries in relation to the above, please contact us at vconde@worldbank.org using the above reference. Yours sincerel, Sophie Sirtaine Director Caribbean Country Management Unit Latin America and the Caribbean Region Attachments 1. World Bank Disbursement Guidelines for Projects, dated May 1, 2006 12. Form for Authorized Signatures 3. Terms and Conditions of Use ofSecure Identification Credentials in connection with Use of Electronic Means to Process Applications and Supporting Documentation, dated March 1, 2013 4. Form of Summary Sheet 5. Form of Statement of Expenditures 6. Designated Account Reconciliation Statement Prepared by: Tatiana de Abreu, CTRLN Cleared with and cc: Vivian Nwachukwu-Irondi, LEGLE Chandra Shekhar, LCSEG Cc with copies: Maxine Alexander Nestor, Project Manager Eastern Caribbean Energy Regulatory Authority (ECERA) Project OECS Secretariat Morne Fortune Saint Lucia Tel: (758) 455 6368 E-mail: manestor@oecs.org Attachment [31 Terms and Conditions of Use of Secure Identification Credentials in connection with Use of Electronic Means to Process Applications and Supporting Documentation March 1, 2013 The World Bank (Bank)' will provide secure identification credentials (SIDC) to permit the Borrower2 to deliver applications for withdrawal and applications for special commitments under the Agreement(s) and supporting documentation (such applications and supporting documentation together referred to in these Terms and Conditions of Use as Applications) to the Bank electronically, on the terms and conditions of use specified herein. SIDC can be either: (a) hardware-based (Physical Token), or (b) software-based (Soft Token). The Bank reserves the right to determine which type of SIDC is most appropriate. A. Identification of Users. 1. The Borrower will be required to identify in a completed Authorized Signatory Letter (ASL) duly delivered to and received by the Bank each person who will be authorized to deliver Applications. The Bank will provide SIDC to each person identified in the ASL (Signatory), as provided below. The Borrower shall also immediately notify the Bank if a Signatory is no longer authorized by the Borrower to act as a Signatory. 2. Each Signatory must register as a user on the Bank's Client Connection (CC) website (https://clientconnection.worldbank.org) prior to receipt of his/her SIDC. Registration on CC will require that the Signatory establish a CC password (CC Password). The Signatory shall not reveal his/her CC Password to anyone or store or record the CC Password in written or other form. Upon registration as a CC user, the Signatory will be assigned a unique identifying account name. B. Initialization of SIDC. 1. Prior to initialization of SIDC by a Signatory, the Signatory will acknowledge having read, understood and agreed to be bound by these Terms and Conditions of Use. '"Bank" includes IBRD and IDA. 2 "Borrower" includes the borrower of an IBRD loan, IDA credit, or Project Preparation Facility advance and the recipient of a grant. 2. Where a Physical Token is to be used, promptly upon receipt of the Physical Token, the Signatory will access CC using his/her account name and CC Password and register his/her Physical Token and set a personal identification number (PIN) to be used in connection with the use of his/her Physical Token, after which the Physical Token will be initialized for use by the Signatory exclusively for purposes of delivering Applications. Where a Soft Token is to be used, the Signatory will access CC using his/her account name and CC Password and set a personal identification number (PIN) to be used in connection with the use of his/her Soft Token, after which the Soft Token will be initialized for use by the Signatory exclusively for purposes of delivering Applications. Upon initialization of the SIDC, the Signatory will be a "SIDC User". The Bank will maintain in its database a user account (Account) for each SIDC User for purposes of managing the SIDC of the SIDC User. Neither the Borrower nor the SIDC User will have any access to the Account. 3. Prior to first use of the SIDC by the SIDC User, the Borrower shall ensure that the SIDC User has received training materials provided by the Bank in use of the SIDC. C. Use of SIDC. 1. Use of the SIDC is strictly limited to use in the delivery of Applications by the SIDC User in the manner prescribed by the Bank in the Agreement(s) and these Terms and Conditions. Any other use of the SIDC is prohibited. 2. The Bank assumes no responsibility or liability whatsoever for any misuse of the SIDC by the SIDC User, other representatives of the Borrower, or third parties. 3. The Borrower undertakes to ensure, and represents and warrants to the Bank (such representation and warranty being expressly relied upon by the Bank in granting SIDC) that each SIDC User understands and will abide by, these Terms and Conditions of Use, including without limitation the following: 4. Security 4.1. The SIDC User shall not reveal his/her PIN to anyone or store or record the PIN in written or other form. 4.2. The SIDC User shall not allow anyone else to utilize his/her SIDC to deliver an Application to the Bank. 4.3. The SIDC User shall always logout from CC when not using the system. Failure to logout properly can create a route into the system that is unprotected. 4.4. If the SIDC User believes a third party has learned his/her PIN or has lost his/her Physical Token he/she shall immediately notify clientconnection@worldbank.org. 4.5. The Borrower shall immediately notify the Bank at clientconnection@worldbank.org of any lost, stolen or compromised SIDC, and take other reasonable steps to ensure such SIDC are disabled immediately. 5. Reservation of Right to Disable SIDC 5.1. The Borrower shall reserve the right to revoke the authorization of a SIDC User to use a SIDC for any reason. 5.2. The Bank reserves the right, in its sole discretion, to temporarily or permanently disable a SIDC, de-activate a SIDC User's Account or both. 6. Care of Physical Tokens 6.1. Physical Tokens will remain the property of the Bank. 6.2. The Bank will physically deliver a Physical Token to each Signatory designated to receive one in a manner to be determined by and satisfactory to the Bank. 6.3. Physical Tokens contain delicate and sophisticated instrumentation and therefore should be handled with due care, and should not be immersed in liquids, exposed to extreme temperatures, crushed or bent. Also, Physical Tokens should be kept more than five (5) cm from devices that generate electromagnetic radiation (EMR), such as mobile phones, phone-enabled PDAs, smart phones and other similar devices. Physical Tokens should be carried and stored separate from any EMR device. At close range (less than 5 cm), these devices can output high levels of EMR that can interfere with the proper operation of electronic equipment, including the Physical Token. 6.4. Without derogating from these Terms and Conditions of Use, other technical instructions on the proper use and care of Physical Tokens are available at http://www.rsa.com. 7. Replacement 7.1. Lost, damaged, compromised (in terms of 4.5, above) or destroyed Physical Tokens will be replaced at the expense of the Borrower. 7.2. The Bank reserves the right, in its sole discretion, not to replace any Physical Token in the case of misuse, or not to reactivate a SIDC User's Account. -SS Attachment 4 Date: Payments made during the period from To Application No.: TF No.: For Expenditures: more than USS: * Under contracts for consulting firms costing less than: equivalent Under contracts for individual consultants costing less than: equivalent * Training, Workshops For: Expenditures under Contracts NOT subject to the Bank's Prior Review Category No. * Designated \ccount (* 1 2 3 4 5 6 7 8 9 10 11 12 13 Eligible % Eligible amount of BriefDate Paid from Amount debited Item Name of Supplier,Contractor or Contract Total Amount of Invoice No Total invoice of financing from TF Date of Payment Description of Exchange Rate Designated from Designated No. Consultant Reference Contract amount financing (6x7) Goods, Works Account Account or Services Total Total For: Expenditures under Contracts subject to the Bank's Prior Review Designated ccount(** 1 2 3 4a 4b 5 6 7 8 9 10 11 12 13 Client Eligible % Eligible amount of Brief Date Paid from Amount debited Item Name of Supplier,Contractor or Connection Total Amount of Date of Bank's Invoice No Total invoice of fmancingfromTF DateofPayment Description of Exchange Rate Designated from Designated No. Consultant Contract Contract "No Objection" amount financing (6x) Goods, Works Account Account Reference or Services Total Total Note: () Items should be grouped by category, or altematively, a separate SS form may be used for each category (*) If this application is not for related to the Designated Account, leave columns 12 and 13 blank Include Records evidencing eligible expenditures (eg copies of recerpts,supplier invoices) for all items claimed on this sheet -SOE Attachment 5 Date: _________ Payments made during the period from To Application No.: TF No.: A For Expenditures: less than USS: * Under contracts for consulting firms costing less than: equivalent * Under contracts for individual consultants costing less than: equivalent * Training, Workshops For: Expenditures under Contracts NOT subiect to the Bank's Prior Review Category No. * Designated \ccount (* 1 2 3 4 5 6 7 8 9 10 11 12 13 Total invoice Eligible% Eligible amount of Brief Date Paid from Amount debited Item Name of Supplier,Contractor or Contract Total Amount of Invoice No amount of financing from TF Date of Payment Description of Exchange Rate Designated from Designated No. Consultant Reference Contract covered by financing (6x7) Goods, Works Account Account this SOE or Services Total Total For: Expenditures under Contracts subject to the Bank's Prior Review Category No. Desi_wated lcount 1 2 3 4a 4b 5 6 7 8 9 10 11 12 13 Client Total invoice Eligible % Eligible amount of Brief Date Paid from Amount debited Item Name of Supplier,Contractor or Connection Total Amount of Date of Bank's Invoice No amount Of financing from TF Date of Payment Description of Exchange Rate Designated from Designated No. Consultant Contract Contract "No Objection" covered by fnancing (6x7) Goods, Works Account Account Reference this SOE or Services Total Total Supporting documents for this SOE are retained at Note: () items should be grouped by category, or alternatively, a separate SOE form may be used for each category (**) If this application is not for related to the Designated Account, leave columns 12 and 13 blank. Attachment 6 DESIGNATED ACCOUNT RECONCILIATION STATEMENT GRANT/LOAN/CREDIT/PPF/COFINANCIER NUMBER ACCOUNT NUMBER WITH (BANK) 1. TOTAL ADVANCED BY WORLD BANK (OR COFINANCIER) $ 2 LESS: TOTAL AMOUNT RECOVERED BY WORLD BANK - $ 3. EQUALS PRESENT OUTSTANDING AMOUNT ADVANCED TO THE SPECIAL ACCOUNT (NUMBER 1 LESS NUMBER 2) = $ 4. BALANCE OF SPECIAL ACCOUNT PER ATTACHED BANK STATEMENT AS OF DATE $ 5. PLUS: TOTAL AMOUNT CLAIMED IN THIS APPLICATION NO. + $ * 6. PLUS: TOTAL AMOUNT WITHDRAWN AND NOT YET CLAIMED REASON: + $ * 7. PLUS: AMOUNTS CLAIMED IN PREVIOUS APPLICATIONS NOT YET CREDITED AT DATE OF BANK STATEMENTS APPLICATION NO. AMOUNT * SUBTOTAL OF PREVIOUS APPLICATIONS NOT YET CREDITED + $ 8. MINUS: INTEREST EARNED - $ * 9. TOTAL ADVANCE ACCOUNTED FOR (NO. 4 THROUGH NO. 9) = $ 10. EXPLANATION OF ANY DIFFERENCE BETWEEN THE TOTALS APPEARING ON LINES 3 AND 9: 11. DATE: SIGNATURE: TITLE: * ALL ITEMS SHOULD BE INDICATED ON THE BANK STATEMENT