OFFICIAL DOCUMENTS THE WORLD BANK IBRD * IDA I WORLD BANKGROUP 0C+0be( ,2 2017 Honorable Dr Philip I. Mpango Minister of Finance and Planning Ministry of Finance and Planning I Madaraka Street P. 0. Box 9111 Dar es Salaam, The United Republic of Tanzania Honorable Minister: Re: IDA Financing 6117 -TZ and Grant A5002-TZ (Dar es Salaam Maritime Gateway Project) Additional Instructions: Disbursement I refer to the Financing Agreement between the International Development Association (the "Association") and the United Republic of Tanzania (the "Recipient") for the above-referenced project, dated OctQol- The Agreement provides that the Association may issue additional instructions regarding the withdrawal of the proceeds of financing IDA 6117-TZ ("Financing") and TFOA5002(Grant). This letter ("Disbursement Letter"), as revised from time to time, constitutes the additional instructions. The attached Disbursement Guidelines for Investment Project Financing, dated February, 2017, ("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 Financing 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 Financing: * Reimbursement * Advance * Direct Payment * Special Commitment (ii) Disbursement Deadline Date (subsection 3.7). The Disbursement Deadline Date is 4 months after the Closing Date specified in the Financing Agreement. Any changes to this date will be notified by the Association. (iii) Disbursement Conditions (subsection 3.8). Please refer to the Disbursement Condition(s) in the Financing Agreement. 2 II. Withdrawal of Financing Proceeds (i) Authorized Signatures (subsection 3.1). Applications for this Financing will be signed by the official(s) authorized to sign Applications as indicated in your letter of June 27, 2011 signed by Mr Ramadhani M Khijjah, Permanent Secretary- Ministry of Finance. (ii) Applications (subsections 3.2 - 3.3). Please provide completed and signed (a) applications for withdrawal, together with supporting documents, and (b) applications for special commitments, together with a copy of the commercial bank letter of credit,] to the address indicated below: The World Bank 13th Floor, Delta Center Menengai Road, Upper Hill P.O. Box No. 30577-00100 Nairobi, Kenya Attention: Loan Department (iii) Electronic Delivery (subsection 3.4) The Association may permit the Recipient to electronically deliver to the Association Applications (with supporting documents) through the Association's Client Connection, web-based portal. The option to deliver Applications to the Association 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 Association 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 Association agrees, the Association 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 Association 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 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 ofElectronic Means to Process Applications and Supporting Documentation ("Terms and Conditions of Use of Secure Identification Credentials") 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 is USD 200,000 (vi) Advances (sections 5 and 6). * Type of Designated Account/s] (subsection 5.3). Segregated * Currency of Designated Account[s] (subsection 5.4): USD 3 * Financial Institution at which the Designated Account/s] Will Be Opened (subsection 5.5): Bank of Tanzania (BOT) * Ceiling (subsection 6.1): forecast for 2 quarters as provided in the quarterly Interim Financial Report III. Reporting on Use of Financing Proceeds (i) Supporting Documentation (section 4). Supporting documentation should be provided with each application for withdrawal as set out below: * For requests for Reimbursement and For reporting eligible expenditures paid from the Designated Account: 0 Interim Financial Report in the form attached (Attachment 4); and " List of payments against contracts that are subject to the Association's prior review, in the form attached (Attachment 5) * 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 Disbursement Instructions The Designated Account (DA) will be managed by the TPA. Funds may be transferred into a project (operational) account opened in the Bank of Tanzania and denominated in Tanzania Shillings (TZS) for payment of project eligible expenditures in local currency. The project account will be reported on and its balances will be consolidated into the DA balance with each replenishment Withdrawal Application for the DA. V. Other Important Information For additional information on disbursement arrangements, please refer to the Disbursement Handbook available on the Association's public website at https://www.worldbank.org and its secure website "Client Connection" at https://clientconnection.worldbank.org. Print copies are available upon request. From the Client Connection website, you will be able to prepare and deliver Applications, monitor the near real-time status of the Financing, and retrieve related policy, financial, and procurement information. If you have not already done so, the Association recommends that you register as a user of the Client Connection website (https://clientconnection.worldbank.org). From this website you will be able to prepare and deliver Applications, monitor the near real-time status of the Financing, 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 4 delivery can be effected. For more information about the website and registration arrangements, please contact the Association by email at . If you have any queries in relation to the above, please contact disbursement unit at WFALD- AFR@worldbank.org using the above reference. urs sincerely, Bell ird Country Director Tanzania, Malawi, Somalia and Burundi Africa Region Attachments 1. Disbursement Guidelines for Investment Project Financing, dated February, 2017 2. Terms and Conditions of Use of Secure Identification Credentials in connection with Use of Electronic Means to Process Applications and Supporting Documentation, dated March 1, 2013 3. Form of Interim Financial Report 4. Form of Payments Against Contracts Subject to the Bank's Prior Review 5 Attachment 2 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 Borrower 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. 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 '"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. 6 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 clientconnectiongworldbank.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. 7 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. 8 Attachment 4 I I I- s c ! i i i I i ii, jI ~ii~rn~i i I I I III Iii' ~I! i I i ~~Ii 10 IFR BUGET COASon Qur~rEndng Year Tr* Dae(emmale)c 0 d b i l Or~gned Aao Yw Edkt 2012 Mpb sugt 2912 VarWn~ 9uge A~ta Va~ne da var~na Uses of fundr, by Projec Con~onen cornp- onnt 1~ : ____ ____ T~ti- - -or conu~ 2: Tagconens2 -c~ 2 cor9 oar 3: TåN - compon~t i cOnlm~t 4: Toaw - Co-- 4 comon.n S. T -Tcomp- -- eol <1U¶d Ttal- -- .Bil - - DJe-- 11 Project Disbursement Status As at ........ .. ..... Exp Cum_Actual Projed Available Exp Cum Category Descriptiai Allocation Exp for Exp Cum. Year Project Un-disbursed Commitments Commitments Balance SOR USID S $ S 5 5 5 1 Category 2 Category 3 Category 4 Category 5 Category 6 Category Category Category Total 12 Protect Report period and date Currency USS SUMMARY OF WITHDRAWAL APPLICATIONS Date of Description/A Amount Amount Amount Submission pplication Requested Requested Requested Direct into DA Value Date Amount Comments/Differen Number Advance Reimbursement Payment Recovered ces 1 2 3 4 7 6 8 10 13 bur cipe~firut" åg~na the cotm tå *ubject nö the Eink% Pric* Ra rkL./CeitN 1 3 4 9 i NAMEÖP [ikwEF c»_~ &tnO of ik bNNIkFN(- 1TT AMOINT CIMMUATIVF. fjhf.j'x^fk&Cx> ffm. C.X'w~T 1I1knni UlkLb.> WIM3ID~AW~ PAXMENTtmN CTMXJS NAME WI. CXTJt~IXJXsilsl. t»cifM, Tk OR k; N C. pANK[ _E[TALJCE 10Til- I THDRAN P AYMEI PN CTTMJ.9AlXTCA/Ac V[ IATEI -M M sva R OF FÅ AIXMJNT TILS APPIJCATIO>N 2 4 T efTAL tö å.00 äpLm c.. Euk Råie U351= N/A 14 Project Name: Designated Account Activity Statement in US Dollars for the Reporting Period..... IDA Loan No.: Bank and Account No.: Part I 1. Cummulative advances to end of current reporting period 2. Cummulative expenditures to end of last reporting period 3. Outstanding advacnes to be accounted (1-2) Part II 4. Opening DA balance at beginning of reporting period 5. Add/Substract:Cummulative adjustments, including interest earned, (if any) 6. Advances from the World Bank during reporting period 7.add 5 and 6 8. Outstanding advances to be accounted for (4+7) 9. Closing DA balance at end of current reporting 10. Add/substract; cummulative adjusment (if any) 11. Expenditures for current reporting period, total from Financial Report 12. Add 10+11 13. Add 9+11 14. Difference (if any) 8-13 Part III 15. Total Forecasted amount to be paid by World Bank 16. Less: Closing SA balance after adjustment 17. Direct payments/ SC payments (if any) 18. Add 16+17 19. Cash requirement from WB for next 6 months (15-18) Approved by: