THE WORLD BANK OFFICIAL IBRD * IDA I WORLD BAK GROUP DOCUMENTS May 17, 2018 Mr. Djamshid Kuchkarov Deputy Prime Minister and Minister of Finance REPUBLIC OF UZBEKISTAN Re: IBRD Loan 8826-UZ (2nd Additional Financing for Energy Efficiency Facility for Industrial Enterprises Project) Additional Instructions: Disbursement and Financial Information Letter (DFIL) Dear Mr. Kuchkarov: I refer to the Loan Agreement between the Republic of Uzbekistan (the "Borrower") and the International Bank for Reconstruction and Development (the "Bank") for 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, 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 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 Loan Funds, and Reporting on Uses of Loan Funds The Disbursement Guidelines for Investment Project Financing, dated February 2017, ("Disbursement Guidelines") are available in the Bank'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 Loan is specified below. (i) Disbursement Arrangements The table in Schedule 1 sets out the disbursement methods which may be used by the Borrower, 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 Account. (ii) Electronic Delivery. Section 10.01 (c) of the General Conditions: The Bank may permit the Borrower to electronically deliver applications (with supporting documents) through the Bank's web-based portal (https://clientconnection.worldbank.org) "Client Connection". This option may be effected if: (a) the Borrower has designated in writing, its officials who are authorized to sign and deliver Applications and to receive Secure Identification Credentials ("SIDC") from the Bank for the purpose of delivering such Applications by electronic means; and (b) all such officials designated by the Borrower have registered as users of "Client Connection". The designated officials may deliver Applications electronically by completing the Form 2380, which is accessible through "Client Connection". The Borrower may continue to exercise the option of preparing and delivering Applications in paper form. The Bank reserves the right and may, in its sole discretion, temporarily or permanently disallow the electronic delivery of Applications by the Borrower. By designating officials to use SIDC and by choosing to 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 Use of Electronic Means to Process Applications and Supporting Documentation, available in the Bank'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 Borrower shall cause the Project Implementing Entity to prepare and furnish to the Bank 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, in form and substance satisfactory to the Bank. (ii) Project and Entity Audits. The Borrower shall cause the Project Implementing Entity to have the Project and the Entity Financial Statements periodically audited by independent auditors acceptable to the Bank, in accordance with consistently applied auditing standards acceptable to the Bank. Each audit of the Project and Entity Financial Statements shall cover the period of one fiscal year of the Borrower. The audited Project and Entity Financial Statements for each such period shall be (a) furnished to the Bank not later than six (6) months after the end of such period, and (b) made publicly available in a timely fashion and in a manner acceptable to the Bank. III. Other Information For additional information on disbursement arrangements, please refer to the Loan Handbook available on the Bank's public website (http://www.worldbank.org/) and "Client Connection". The Bank 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 Loan, and retrieve related policy, financial, and procurement information. For more information about the website and registration arrangements, please contact the Bank by email at clientconnectionAworldbank.org. If you have any queries in relation to the above, please contact Jasna Mestnik, Finance Officer at jmestnik@worldbank.org, with copy to Dessirie Kalinski, Finance Analyst at dkalinski@worldbank.org using the above reference. Yours sincerely, Cyril E. Muller Regional Vice President Europe and Central Asia 2 Attachments 1. Form of Authorized Signatory Letter 2. Forms of Statement of Expenditure (SOE) 3. Form of Designated Account Reconciliation Statement cc with copies: (a) Ministry of Economy (b) National Bank of Uzbekistan (c) Uzpromstroybank (d) Asaka Bank (e) Hamkorbank (f) Asia Alliance Bank (g) Invest Finance Bank 3 Schedule 1: Disbursement Provisions Country Republic of Uzbekistan Closing Date Section III.B.2. of Schedule 2 to Loan Borrower Ministry of Finance the Loan Agreement Number Name of the 2nd Additional Financing for Energy Disbursement Four (4) months after the Closing Project Efficiency Facility for Industrial Deadline Date Date Enterprises Project (Subsection 3.7 ** Disbursement Methods Methods Supporting Documentation (Section 2 *) (Subsections 4.3 and 4.4 **) Direct Payment Yes Copy of records (e.g. suppliers' invoices, guarantees for advance and retention payments, etc.) Reimbursement Yes Statement of Expenditure (SOE) in the formats provided in Attachment 2 of the DFIL Designated Account Yes Statement of Expenditure (SOE) in the formats provided in Attachment 2 of the DFIL; Designated Account Reconciliation Statement in the format provided in Attachment 3 of the DFIL, supported with related bank statement S ecial Commitments Yes Copy of Letter of Credit Type Segregated - Seven (7) separate Designated Accounts as Ceiling Fixed listed further below Financial Institution - Name To be established at a financial institution acceptable to the Currency USD Financial_Institution_-_Name Bank Frequency of Reporting Quarterly, or more frequently if needed Amount Please see below (Subsection 6.3 **) I_________________ Designated Account holder Initial advance* Permanent ceiling** MoE DA 100,000 100,000 National Bank of Uzbekistan DA 2,500,000 5,000,000 Uzpromstroybank DA 2,500,000 5,000,000 Asaka Bank DA 2,500,000 5,000,000 Hamkorbank DA 1,250,000 2,500,000 Asia Alliance Bank DA 600,000 1,200,000 Invest Finance Bank DA 600,000 1,200,000 * Except for MoE DA, initial advance is the maximum amount that can be disbursed to a participating bank, including any replenishment of the DA. **Except for MoE DA, permanent ceiling would be triggered when the following criteria is satisfied: Audited end-of-2017 financial statements of the participating bank have been reviewed and found acceptable to the Bank. The minimum value of applications for Reimbursement, Direct Payment and Special Commitment is USD 200,000 equivalent. The World Bank Radnicka cesta 80, 9th floor Zagreb, HR-10000 Croatia Attention: Loan Department (WFALN) ** Sections and subsections relate to the "Disbursement Guidelines for Investment Project Financing", dated February 2017. Attachment 1 - Form of Authorized Signatory Letter [Letterhead] [Borrower] [Street address] [City] [Country] [DATE] The World Bank 1818 H Street, N.W. Washington, D.C. 20433 United States of America Attention: [Country Director] Re: IBRD Loan 8826-UZ (2nd Additional Financing for Energy Efficiency Facility for Industrial Enterprises Project) I refer to the Loan Agreement ("Agreement") between the International Bank for Reconstruction and Development (the "Bank") and the Republic of Uzbekistan (the "Borrower"), dated - , providing the above Loan. For the purposes of Section 2.03 of the General Conditions as defined in the Agreement, any '[one] of the persons whose authenticated specimen signatures appear below is authorized on behalf of the Borrower to sign applications for withdrawal [and applications for a special commitment] under this Loan. For the purpose of delivering Applications to the Bank, 2[each] of the persons whose authenticated specimen signatures appears below is authorized on behalf of the Borrower, acting 3[individually] 4[jointly], to deliver Applications, and evidence in support thereof on the terms and conditions specified by the Bank. This 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 by electronic means. In full recognition that the Bank 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 I 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 final letter that is sent to the Bank 2 Instruction to the Borrower: 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 Bank. I Instruction to the Borrower: 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 Bank. 4 Instruction to the Borrower: 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 Bank 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 this Agreement. [Name], [position] Specimen Signature: [Name], [position] Specimen Signature: [Name], [position] Specimen Signature: Yours truly, / signed / [Position] Attachment 2 - Forms of Statement of Expenditure Statement of Expenditure (SOE) For Goods, Works, Services, Training and Incremental Operating Costs Payments made during the period from to Loan No.: Application No.: Category No.: SOE No.: 1 2 3 4 5 6 7 8 9 10 11 Supplier's WB Type of Good or Currency and Total Currency and % Financed Amount Currency and Exchange Date of Remarks Name Contract Service Amount, and Date of Total Amount by Eligible Amount Paid Rate Payment Number in (CW/GO/CS/OP/TR) Contract of Invoice IBRD/IDA/TF for from Client / Brief Description Covered by Financing Designated Connection Application (5 x 6) Account (if (for Prior Applicable) Review Contracts) TOTALS Supporting documents for this SOE retained at (location) LOAN NO.: DATE: APPLICATION NO.: STATEMENT OF EXPENDITURE (SOE) PAGE NO.: for SUB-LOANS CATEGORY NUMBER: 1 2 3 4 5 6 7 8 9 10 11 12 100% of Amount Name or Name Code of Amount of No. Amounts paid % requested in Date of Rate Date of US$ Amouni Number of of Currency Sub-loan of in this Financ this Application Payment of Withdrawal withdrawn Sub-loan Benefic. of Invoice Application by IBRD (Col 6 X 7) Exchange from DA from DA Sub-loan 13-Total Attachment 3 - Form of Designated Account Reconciliation Statement DESIGNATED ACCOUNT RECONCILIATION STATEMENT LOAN/CREDIT/PPF/COFINANCIER NUMBER ACCOUNT NUMBER WITH (BANK) I. TOTAL ADVANCED BY WORLD BANK (OR COFINANCIER) US$/EUR 2 LESS: TOTAL AMOUNT RECOVERED BY WORLD BANK - US$/EUR 3. EQUALS PRESENT OUTSTANDING AMOUNT ADVANCED TO THE DESIGNATED ACCOUNT (NUMBER I LESS NUMBER 2) = US$/EUR 4. BALANCE OF DESIGNATED ACCOUNT PER ATIACHED BANK STATEMENT AS OF DATE US$/EUR 5. PLUS: TOTAL AMOUNT CLAIMED IN THIS APPLICATION NO. + US$/EUR 6. PLUS: TOTAL AMOUNT WITHDRAWN AND NOT YET CLAIMED REASON: + US$/EUR 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 + US$/EUR 8. MINUS: INTEREST EARNED - US$/EUR 9. TOTAL ADVANCE ACCOUNTED FOR (NO. 4 THROUGH NO. 9) = US$/EUR 10. EXPLANATION OF ANY DIFFERENCE BETWEEN THE TOTALS APPEARING ON LINES 3 AND 9: 11. DATE: SIGNATURE: TITLE: