I.DOCUMNTS 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 June 21, 2016 Hon. Sili Epa Tuioti Minister of Finance Ministry of Finance Government of Samoa Private Bag Apia Independent State of Samoa Dear Minister, APIP Grant No. TFOA2332 Samoa Connectivity Project Additional Instructions: Disbursement Letter I refer to the Letter Agreement ("Agreement") between the Independent State of Samoa (the "Recipient") and the International Development Association ("World Bank"), acting as administrator of grant funds provided by the Government of Australia, represented by the Department of Foreign Affairs and Trade (the "Donor"), under the Australia - Pacific Islands Partnership Trust Fund ("APIP"), for the above- referenced project, dated May 11, 2016. The Agreement provides that the World Bank may issue additional instructions regarding the withdrawal of the proceeds of APIP Grant No. TF0A2332 (the "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 * Special Commitment (ii) Disbursement Deadline Date (subsection 3.7). The Disbursement Deadline Date is four (4) months after the Closing Date specified in the Letter Agreement. Any changes to this date will be notified by the World Bank. (iii) Disbursement Condition (subsection 3.8). Please refer to the disbursement condition in the Letter Agreement. II. Withdrawal of Grant Proceeds (i) Authorized Signatures (subsection 3.1). An authorized signatory 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 Level 19, 14 Martin Place CML Building Sydney NSW 2000, Australia Attention: Mona Sur, Acting Country Director (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 26' Floor, One Global Place 5' Avenue corner 25' Street, Bonifacio Global City Taguig City, Philippines 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 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 ("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 of Applications (subsection 3.5). The Minimum Value of Applications for Reimbursement, Direct Payment and Special Commitment is USD 40,000. Page 2 of 29 (vi) Advances (sections 5 and 6). * Type of Designated Account (subsection 5.3): Pooled. The designated account already established under IDA D063-WS will be used for receipt of APIP funds under this Project. * Currency ofDesignated Account (subsection 5.4): United States Dollar (USD) * Financial Institution at which the Designated Account Will Be Opened (subsection 5.5): Central Bank of Samoa. * Ceiling (subsection 6.1): USD 200,000. 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 List of payments against contracts that are subject to the World Bank's prior review, in the form attached (Attachment 4), with records evidencing eligible expenditures (e.g., copies of receipts, supplier invoices); and o Statement of Expenditure in the form attached (Attachment 5) for all other expenditures/ contracts. * For reporting eligible expenditures paid from the Designated Account: o List of payments against contracts that are subject to the World Bank's prior review, in the form attached (Attachment 4), with records evidencing eligible expenditures (e.g., copies of receipts, supplier invoices); o Statement of Expenditure in the form attached (Attachment 5) for all other expenditures/ contracts; and o Designated Account Reconciliation Statement in the form attached (Attachment 6) and related bank statement. * 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 or more frequent if needed. Page 3 of 29 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.org 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 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 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 World Bank Loan Department at WFALN MANILA@worldbank.org using the above reference. Sincerely, Mona Sur Acting Country Director Timor-Leste, Papua New Guinea & Pacific Islands East Asia and Pacific Region Attachments 1. World Bank Disbursement Guidelines for Projects, dated May 1, 2006 2. Sample 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. Sample Form of Statement of Expenditures 5. Sample Form of Payments Against Contracts Subject to the Bank's Prior Review 6. Sample Form of Designated Account Reconciliation Statement cc with copies: Mr. lulai Lavea, CEO Ministry of Finance Private Bag Apia, Samoa Ms. Lita Lui - A/CEO Ministry of Finance Private Bag Apia, Samoa Page 4 of 29