OFFICIAL DOCUMENTS The World Bank E-32, Agargaon, Sher-e-Bangla Nagar, Dhaka 1207, Bangladesh Phone: (880-2) 5566-7777, Facsimile: (880-2) 5566-7778 Qimiao Fan Country Director for Bangladesh, Bhutan and Nepal June 28, 2018 Secretary Kazi Shofiqul Azam Economic Relations Division Ministry of Finance Government of the People's Republic of Bangladesh Sher-e-Bangla Nagar Dhaka, Bangladesh Dear Secretary Azam: Re: IDA Financing 6193-BD National Strategy for Development of Statistics Implementation Support Project Additional Instructions: Disbursement and Financial Information Letter. I refer to the Financing Agreement between People's Republic of Bangladesh ("Recipient") and the International Development Association (the "Association") for the above-referenced Project, dated June 28, 2018. The General Conditions, as defined in the Financing Agreement, provide that the Association may issue additional instructions regarding the withdrawal of the proceeds of IDA Financing 6193-BD ("Financing"), and specify certain financial management reporting and audit requirements. This letter ("Disbursement and Financial Information Letter" or "DFIL"), as revised from time to time, constitutes such additional instructions. The Disbursement Guidelines for Investment Project Financing dated February 2017, ("Disbursement Guidelines") are available in the Association'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 this Disbursement and Financial Reporting Letter, and the manner in which the provisions in the guidelines apply to the Financing is specified below. I. Disbursement Arrangements, Withdrawal and Reporting of Financing Proceeds. (i) Disbursement Arrangements: * General Provisions (Schedule 1). The table in Schedule 1 sets out the disbursement methods which may be used by the Recipient, 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. Refer to section 11.01 (c) of the General Conditions: The Association may permit the Recipient to electronically deliver applications (with supporting documents) through the Association's web-based portal (https://clientconnection.worldbank.or ) "Client Connection". This option may be effected if: (a) the Recipient has designated in writing, 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". The designated officials may deliver Applications electronically by completing the Form 2380, which is accessible through "Client Connection". 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. 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, available in the Association'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 Recipient shall prepare and furnish to the Association not later than forty-five (45) days after the end of each calendar quarter, Interim Unaudited Financial Reports (IUFR) covering the quarter. (ii) Audits. Each audit of the Financial Statements shall cover the period of one fiscal year of the Recipient, commencing with the fiscal year in which the first withdrawal was made. The audited Financial Statements for each such period shall be furnished to the Association not later than six (6) months after the end of such period. III. Other Important Information For additional information on disbursement arrangements, please refer to the Loan Handbook available on the Association's public website and "Client Connection". The Association 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 Association by email at clientconnection@worldbank.org. If you have any queries in relation to the above, please contact Mr.Satish Kumar Shivakumar, Finance Officer at satishkumarl @worldbank.org using the above reference. Yours sincerely, Qimiao Fan Country Director for Bangladesh, Bhutan & Nepal 2 Attachments 1. Form of Authorized Signatory Letter 2. Form of Statement of Expenditures 3. Designated Account Reconciliation Statement 3 Schedule 1: Disbursement Provisions Basic Information Country People's Republic of Bangladesh Closing Date Section III.B.3 of Schedule 2 to the Recipient People's Republic of Bangladesh Financing Agreement. Financing IDA 6193- Name of the Project National Strategy for Development Disbursement Four months after the closing date. Number BD of Statistics Implementation Deadline Date Support Project Subsection 3. 7 ** Disbursement Methods and Supporting Documentation Methods Available Disbursement Methods Supporting Documentation Section 2* Subsections 4.3 and 4.4 Direct Payment Yes Copy of Records Reimbursement Yes Statement of Expenditures (SOE) in the form attached (Attachment 2) Statement of Expenditures (SOE) in the form attached (Attachment 2) Designated Account Yes Bank Statement and Designated Account Reconciliation Statement (Attachment 3) Copy of Letter of Credit. Special Commitments Yes Proforma Invoice if cited in the Letter of Credit Designated Account (Sections 5 and 6**) Segregated to be operated Ceiling Fixed by Bangladesh Bureau of Type Statistics Financial Institution - Commercial Bank Name acceptable to the Bank Currency BDT Frequency of Reporting Subsection 6.3 (**) Quarterly Amount BDT 200,000,000 Minimum Value of Applications (subsection 3.5) The minimum value of applications for Reimbursement, Direct Payment and Special Commitment is USD 500,000 equivalent. 4 Authorized Signatures (Subsection 3.1 and 3.2 **) The form for Authorized Signatories Letter is provided in Attachment 1 of this letter Withdrawal and Documentation Applications (Subsection 3.3 and 3.4 **) Authorized Signatories Letter: Withdrawal and Documentation Applications: The World Bank The World Bank E-32 Agargaon No. 11, Taramani Main Road Sher-e-Bangla Nagar Taramani, Chennai - 600 113 Dhaka 1207, Bangladesh India Attention: Country Director Attention: Team Lead, WFACS Additional Instructions (i) All payments for expenditures claimed under this Financing must be made using the banking system, except expenditures paid using the petty cash system following the Recipient's existing policy. The petty cash limit as per the Recipient's existing policy is BDT 100,000. *Sections and subsections indicated relate to the Disbursement Guidelines for Investment Project dated Financing 2017. 5 Attachment 1 - Form of Authorized Signatory Letter [Letterhead] Ministry of Finance [Street address] [City] [Country] [DATE] The World Bank Plot E32, Agargaon Sher-e Bangla Nagar G.P.O. Box 97 Dhaka 1207, Bangladesh Attention: Country Director Re: IDA Financing 6193-BD (National Strategy for Development of Statistics Implementation Support Project) I refer to the Financing Agreement ("Agreement") between the International Development Association (the "Association") and [name of Recipient] (the "Recipient"), dated , providing the above Financing. 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 Recipient to sign applications for withdrawal under this Financing. For the purpose of delivering Applications to the Association, 2[each] of the persons whose authenticated specimen signatures appears below is authorized on behalf of the Recipient, acting 3[individually] 4[jointly], to deliver Applications, and evidence in support thereof on the terms and conditions specified by the Association. 5[This confirms that the Recipient is authorizing such persons to accept Secure Identification Credentials (SIDC) and to deliver the Applications and supporting documents to I Instruction to the Recipient: 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 Association. 2 Instruction to the Recipient: Stipulate if more than one person needs tojointly sign Applications, if so, please indicate the actual number. Please delete this footnote in final letter that is sent to the Association. Instruction to the Recipient: 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 Association. 4 Instruction to the Recipient: 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 Association. 6 the Association by electronic means. In full recognition that the Association 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 of Electronic Means to Process Applications and Supporting Documentation ("Terms and Conditions of Use of SIDC"), the Recipient represents and warrants to the Association that it will cause such persons to abide by those terms and conditions.] This Authorization replaces and supersedes any Authorization currently in the Association records with respect to this Agreement. [Name], [position] Specimen Signature: [Name], [position] Specimen Signature: [Name], [position] Specimen Signature: Yours truly, / signed / [Position] 5 Instruction to the Recipient: Add this paragraph if the Recipient wishes to authorize the listed persons to accept Secure Identification Credentials and to deliver Applications by electronic means; if this is not applicable, please delete the paragraph. Please delete this footnote in final letter that is sent to the Association. 7 Attachment 2 - Statement of Expenditures Credit # Payment made during the period Application from to Category # The following expenditures have been incurred during the retroactive financing period (please tick) Yes No Page # The following expenditures have been incurred during before the closing date of the credit (please tick) Yes No in case of D/ payments 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Contract # Total Expenditure Amount other Amount Service Prior Contract amount of Amount Eligible for than petty Date of paid from provider / Brief Review currency Invoice Date of invoice % Financing and paid cash system Withdrawal Designated Item Supplier / Description of Contract? and amount number payment covered by Financed through banking and not paid from the Account No Payee's the expenditure (YES or Cnet (original + Application by the system (except using banking Designated shibe Name NO) for Prior amendment) (net of payments) system (not to Account equal to Review retention) be claimed) #11) contracts) TOTAL Supporting documents for this SOE retained at:(insert location) Prepared by : Authorized Representative: 8 Attachment 3 DESIGNATED ACCOUNT RECONCILIATION STATEMENT CREDIT NUMBER ACCOUNT NUMBER WITH (BANK) 1. TOTAL ADVANCED BY WORLD BANK BDT 2 LESS: TOTAL AMOUNT RECOVERED BY WORLD BANK - BDT 3. EQUALS PRESENT OUTSTANDING AMOUNT ADVANCED TO THE SPECIAL ACCOUNT (NUMBER I LESS NUMBER 2) = BDT 4. BALANCE OF SPECIAL ACCOUNT PER ATTACHED BANK STATEMENT AS OF DATE BDT 5. PLUS: TOTAL AMOUNT CLAIMED IN THIS APPLICATION NO. + BDT * 6. PLUS: TOTAL AMOUNT WITHDRAWN AND NOT YET CLAIMED REASON: + BDT* 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 + BDT 8. MINUS: INTEREST EARNED - BDT* 9. TOTAL ADVANCE ACCOUNTED FOR (NO. 4 THROUGH NO. 9) =BDT 10. EXPLANATION OF ANY DIFFERENCE BETWEEN THE TOTALS APPEARING ON LINES 3 AND 9: I. DATE: SIGNATURE: TITLE: 9