OFFICIAL DOCUMENTS THE WORLD BANK IBRD * IDA I WORLD BANK GROUP JUNAID KAMAL AHMAD Country Director, India South Asia Region May 7, 2018 Mr. Sukhbir Singh Controller of Aid Accounts and Audit Department of Economic Affairs, Ministry of Finance Government of India B-Wing, 5th Floor Janpath Bhawan New Delhi, India 110001 Re: IBRD Loan 8839-IN (National Nutrition Mission (also known as Additional Financing for the ICDS Systems Strengthening and Nutrition Improvement Project) Additional Instructions: Disbursement and Financial Information Letter Dear Mr. Singh, I refer to the Loan Agreement between India (the "Borrower") and the International Bank for Reconstruction and Development (the "World Bank") for the above-referenced Project, dated May 7, 2018. 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), including Project specific financial reporting requirements. I. Disbursement Arrangements, Withdrawal of Loan Funds, and Reporting of 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.orz and its secure website "Client Connection" at https://clientconnection.worldbank.or. 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/Provisions. The table in Attachment I 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 (if applicable). (ii) Electronic Delivery (Section 10.01 (c) of the General Conditions) The World Bank may permit the Borrower to electronically deliver applications (with supporting documents) through the World Bank's web-based portal "Client Connection". This option may be effected if the officials designated in writing by the Borrower who are authorized to sign and deliver Applications 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". By signing the Authorized Signatory Letter, 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 World -2- Bank by electronic means. The Borrower 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 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 World 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 must prepare and furnish to the World 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. (ii) Audits. Each audit of the Financial Statements must cover the period of one fiscal year of the Borrower, 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 Bank not later than 12 months after the end of such period, per approval for this AF from the Practice Manger of the Governance Department (GP, Governance SAR) on August 20, 2015. III. Other Information For additional information on disbursement arrangements, please refer to the Loan Handbook available on the World Bank's public website (http://www.worldbank.org/) and in "Client Connection". The World 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 World Bank by email at clientconnectiongworldbank.org. If you have any queries in relation to the above, please contact Victor Ordonez, Senior Finance Officer at vconde@worldbank.org, with copy to Radha Raju, Finance Analyst at rraiugworldbank.org using the above reference. Yours sincerely, Junaid Kamal Ahmad Country Director India Attachment Attachment I - Disbursement Provisions Attachment 2 - Form of Authorized Signatory Letter Attachment 3 - Format of the Interim Unaudited Financial Reports (IFRs) -3- Attachment 1 - Disbursement Provisions Country India Closing Date Section III.B.4. of Schedule 2 to Borrower/Beneficiary India (DEA/CAAA) the Loan Agreement. Loan 8839-IN Name of the Project National Nutrition Mission (Also Disbursement Four months after the closing date. Number known as Additional Financing for the Deadline Date ICDS Systems Strengthening and Subsection 3.7 ** Nutrition Improvement Project) Disbursement Methods Methods Supporting Documentation Section 2 (**) Subsections 4.3 and 4.4 (**) Direct Payment No N/A Reimbursement Yes Interim unaudited Financial Report (IFR) Designated Account No N/A Special Commitments No N/A Type N/A Ceiling N/A Financial Institution N/A Currency N/A Frequency of Reporting N/A Amount N/A Subsection 6.3 (**) The minimum value of applications is not applicable for this additional financing The World Bank Attention: Loan Operations (WFACS) No. 11, Taramani Main Road Taramani, Chennai - 600 113 India The Eligible Expenditure Program (EEP) is salaries and allowances of staff of the Directorates of ICDS in the priority states, which will submit semi-annually expenditure reports for their corresponding expenditures (agreed budget lines). Consolidated information will be prepared by the central project management unit (CPMU), and sent to the World Bank for disbursement purposes. The project's DLIs, allocated amount to each DLI (for a total USD 200 million, equivalent to the additional funding), estimated date for completion, as well as the verification protocol, are stated in Schedule 4 to the Loan Agreement. ** Sections and subsections relate to the "Disbursement Guidelines for Investment Project Financing", dated February 2017. -4- Attachment 2 - 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: Mr. Junaid Kamal Ahmad, Country Director, India Re: Loan No. 8839-IN (National Nutrition Mission (also known as Additional Financing for the ICDS Systems Strengthening and Nutrition Improvement Project)) I refer to the Loan Agreement ("Agreement") between the International Bank for Reconstruction and Development (the "Bank") and India (the "Borrower"), dated providing the above Loan. For the purposes of Section 2.02 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, including by electronic means, 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 Authorization replaces and supersedes any Authorization currently in the Bank records with respect to this Agreement. [Name], [position] Specimen Signature: 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. 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. -5- [Name], [position] Specimen Signature: [Name], [position] Specimen Signature: Yours truly, / signed / [Position] -6- - Attachment 3 - Interim Unaudited Financial Report (IFR) National Nutrition Mission (also known as Additional Financing for the ICDS Systems Strengthening and Nutrition Improvement Prooect). Identified Budget Lines for Eligible Expenditure Program (EEP) IUFR for the semester ended. Loan number: Budget Head Cumulative Grant/ (MH-SMH-Minor Head-Scheme- BE/RE for upto last Current Year to Cumulative to S.No. State Demand No. Object head-Detailed head) current FY period period Date Date 1 Andhra Pradesh 0 2 Bihar 0 3 Chhattisgarh 0 4 Jharkhand 0 5 Madhya Pradesh 0 6 Maharashtra 0 7 Rajasthan 0 8 Uttar Pradesh 0 9 Gujarat 0 10 Odisha 0 11 Karnataka 0 TOTAL 0 0 0 0 (Project Manager)