UFICIAL DOCUMENTS 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 February 5, 2013 Honorable Cesar V. Purisima Secretary Department of Finance Manila Republic of the Philippines Re: Grant No: TF011939 (Philippines - Co-financing for Kapitbisig Laban sa Kahirapan- Comprehensive and Integrated Delivery of Social Services Project) Additional Instructions: Revised Disbursement Letter Dear Secretary Purisima: I refer to the Grant Agreement between the International Bank for Reconstruction and Development ("World Bank") acting as administrator of grant funds provided by the Government of Australia, represented by Australian Agency for International Development ("Donor") under the Australia-World Bank Philippines Development Trust Fund and the Philippines ("Recipient") for the above-referenced project, dated May 30, 2012. The Grant Agreement provides that the World Bank may issue additional instructions regarding the withdrawal of the proceeds of Grant TFOI 1939 ("Grant"). This letter ("Disbursement Letter"), as revised from time to time, constitutes the additional instructions and replaces the previous version dated May 30, 2012. 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 (ii) Disbursement Deadline Date (subsection 3.7). The Disbursement Deadline Date is four months after the Closing Date specified in the Grant Agreement. Any changes to this date will be notified by the World Bank. Page 1 of 29 II. Withdrawal of Grant Proceeds (i) Authorized Signatures (subsection 3.1). Applications for this Grant will be signed by the official(s) authorized to sign Applications as indicated in the letter dated June 19, 2012 signed by Rosalia V. de Leon, Undersecretary, Ministry of Finance-Department of Finance (Attachment 2). (ii) Applications (subsections 3.2 - 3.3). Please provide completed and signed Applications for withdrawal, together with supporting documents, to the address indicated below: The World Bank 26th Floor, One Global Place 5th Avenue Corner 25th Street Bonifacio Global City Taguig City, Philippines 1634 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 devices ("Tokens") from the World Bank for the purpose of delivering such applications by electronic means; and (b) all such officials designated by the World Bank will provide the Recipient with Tokens for the designated officials. Following which, the designated officials may deliver Applications electronically by completing Form 2380, which is accessible through Client Connection (http://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 Tokens to Process Applications. By designating officials to accept Tokens 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 Devices in connection with Use of Electronic Means to Process Applications and Supporting Documentation ("Terms and Conditions of Use of Tokens") provided in Attachment 3; and (b) to deliver the Terms and Conditions of Use of Tokens to each such official and to cause such official to abide by those terms and conditions. (v) Minimum Value ofApplications (subsection 3.5). The Minimum Value of Applications for Direct Payment and Reimbursement is United States Dollars 400,000.00 equivalent. (vi) Advances (sections 5 and 6). * Type of Designated Account (subsection 5.3): Segregated * Currency of Designated Account (subsection 5.4): United States Dollars * Financial Institution at which the Designated Account Will Be Opened (subsection 5.5): Land Bank of the Philippines. Page 2 of 29 * Ceiling (subsection 6.1): US Dollars 3,200,000 until June 30, 2013 US Dollars 2,000,000 after June 30, 2013 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 AND for reporting eligible expenditures paid from the Designated Account: o Summary Sheet in the form attached (Attachment 4) and Records evidencing eligible expenditures (e.g. copies of receipts, supplier invoices) for payments made under contracts subject to the World Bank's prior review; o Statement of Expenditure in the form attached (Attachment 5) for payments made under contracts not subject to the World Bank's prior review; and o Designated Account Bank Statement (s) and Reconciliation when reporting eligible expenditures paid from the Designated Account * For requests for Direct Payment: o 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 Important Information For additional information on disbursement arrangements, please refer to the Disbursement Handbook available on the Bank's public website at http://www.worldbank.org and its secure website "Client Connection" at http://clientconnection.worldbank.org. Print copies are available upon request. If you have not already done so, the Bank recommends that you register as a user of the Client Connection website (http://clientconnection.worldbank.org). From this website you will be able to download Applications, monitor the near real-time status of the Grant, and retrieve related policy, financial, and procurement information. For more information about the website and registration arrangements, please contact the Bank by email at clientconnection@worldbank.orz. If you have any queries in relation to the above, please contact the Loan Department Team in Manila, the Philippines at CTRLN Manila@worldbank.org using the above reference. Page 3 of 29 Yours sincerely, Miguel-San iago Oliveira Senior Finance Officer (CTRLN) Attachments 1. World Bank Disbursement Gdelines for Projects, dated May 1, 2006 2. Authorized Signatures Letter Received 3. Terms and Conditions of Use of Secure Identification Devices in connection with Use of Electronic Means to Process Applications and Supporting Documentation, dated January 20, 2010. 4. Form of Summary Sheet. 5. Form of Statement of Expenditures. Drafted by: Caroline S. Cheng, Miguel Santiago Oliveira, CTRLN Cleared with and bcc: Maria Loreto Padua (EASPS) Manush A. Hristov (LEGES Page 4 of 29 Attachment 2 Republec of th DEPARTMENT6 Reas Bnuined Comau P Mamd& 10W 1MJ(1il p ." 19 June 2012 SCANNED rLt COPY The World Bank E.' LOG NfIg:a - q1v 1818 H. Street, N.W. SECURrY cASSIFCATON Washington, D.C. 20433 United States of America Al f Attention: Country Director FOLDER Subject Austrafe-WB Phihppines Development Trust Fund Grant Agreement (Co- financing for Kapitbisig Laban sa Kahirapan-Comprehensive and Integrated Devery of Social Services Project- Grant No, TF01 1939) I refer to the Grant Agreement ("Agreement) between the Intemational Bank for Reconstruction and Development ("the World Bank') and the Republic of the Philippines ("Recipient") dated 30 May 2012 providing the above Grant. For the purposes of Section 3.04 of the Standard Conditions for Grants as defined in the Agreement, any one of the persons whose authenticated specimen signatures appears on the attached page is authorized on behalf of the Recipient to sign applications for withdrawal [and applications for a special commitment] under this Grant. For the purpose of delivering Applications to the World Bank, each of the persons whose authenticated specimen signatures appears on the attached page is authorized on behalf of the Recipient, acting individually, to deliver applications for withdrawal, and evidence in support thereof, including by electronic means, on the terms and conditions specified by the Bank (including the Terms and Conditions of Use of Secure Identification Devices in connection with Use of Electronic Means to Process, Applications for Wthdrawal and Supporting Documentation which have been provided by the Recipient to such persons). This Authorization replaces and supersedes any Authorization currently in the World Bank records with respect to this Agreement. Very truly yours, ROAIA V. DE LEON Undersecretary Page 23 of 29 Republic of the Philippines Department of Social Welfare and Development Kapit-Bisig Laban sa Kabirapan Comprehensive and Integrated Delivery of Social Services DEPMTEIW FiNCE June 06, 2012 * *h* HON. CESAR PURISIMA m Ig Secretory Department of Finance Mania Dear Secretary Puuisnma: Re. Grant lor Co-Financing Certain Activities under the Kopitbisig Labon so Kahiaopon-Comprehensive and Integrated Delivery of Social Services (KALAHI-CIOSS) - Grant No. TF01 1939. For purposes of paragraph [i) Seclion It of the "Additional Instructions: Disbursement Letter" of the Grant for Co-Financing Certain Activities under the Kopitbisig Loban so Karopon-Compehensive and Integrated Delivery of Social Services [KALAHil-CIDSSj - Grant No. fF01 1939, any one of the persons whose authenticated specimen signoltres appear below is authorized on behalf of the Grantee to sign applications for withdrawal under this Grant: MATEO 0. MONTANO 2 Undersecretary and n Signature Chief Finance Office CAMILO G. GUDMAUN Amsstnt Sectelory and Specimen sif"V Deputy National Project Director Thank you Very truly yours. PJA o GMONTAfJO Undersecretary Page 24 of 29 Attachment 3 Terms and Conditions of Use of Secure Identification Devices in connection with Use of Electronic Means to Process Applications and Supporting Documentation January 20, 2010 The World Bank (Bank)' will provide secure identification devices (Tokens) to permit the Borrower2 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. 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 Tokens 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 delivery of Tokens. 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. Distribution, Initialization and Return of Tokens. 1. The Bank will physically deliver a Token to each Signatory in a manner to be determined by and satisfactory to the Bank. 2. At the time of delivery of a Token to a Signatory, the Signatory will receive a copy of these Terms and Conditions of Use for purposes of initializing the Token. 3. The Bank will verify that the Token, Temporary Password and Terms and Conditions of Use have been duly delivered to and received by the CC User. 4. Promptly upon receipt of the Token and Terms and Conditions of Use, the Signatory will access CC using his/her account name and CC Password and register his/her Token and set a personal identification number (PIN) to be used in connection with the use of his/her '"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. Page 25 of 29 Token, after which the Token will be initialized for use by the Signatory exclusively for purposes of delivering Applications. Upon initialization of the Token, the Signatory will be a "Token User". The Bank will maintain in its database a user account (Account) for each Token User for purposes of managing the Token of the Token User. Neither the Borrower nor the Token User will have any access to the Account. 5. Prior to first use of the Token by the Token User for delivering Applications, the Borrower shall ensure that the Token User has received training materials provided by the Bank in use of the Token. 6. Tokens shall be promptly returned to the Bank upon request of the Bank. C. Management of Tokens. 1. Tokens will remain the property of the Bank. 2. Use of the Token is strictly limited to use in the delivery of Applications by the Token User in the manner prescribed by the Bank in the Agreement(s) and these Terms and Conditions. Any other use of the Token is prohibited. 3. The Bank assumes no responsibility or liability whatsoever for any misuse of the Token by the Token User, other representatives of the Borrower, or third parties. 4. The Borrower undertakes to ensure, and represents and warrants to the Bank (such representation and warranty being expressly relied upon by the Bank in delivery of a Token to each Token User) that each Token User is provided, understands and will abide by, these Terms and Conditions of Use, including without limitation the following: Security 4.1. The Token User shall not reveal his/her PIN to anyone or store or record the PIN in written or other form. 4.2. The Token User shall not allow anyone else to utilize a Token to deliver an Application to the Bank. 4.3. The Token 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 Token User believes a third party has learned his/her PIN or has lost his/her Token he/she shall immediately notify clientconnectiongworldbank.or. 4.5. The Borrower shall immediately notify the Bank at clientconnection@worldbank.org of any lost, stolen or compromised Tokens, and take other reasonable steps to ensure such Tokens are disabled immediately. Care of Tokens Page 26 of 29 4.6. 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, 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. 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 Token. 4.7 Without derogating from these Terms and Conditions of Use, other technical instructions on the proper use and care Tokens are available at http://www.rsa.com. 5. Replacement 5.1. Lost, damaged, compromised (in terms of 4.5, above) or destroyed Tokens will be replaced at the expense of the Borrower. 5.2. The Bank reserves the right, in its sole discretion, not to replace any Token in the case of misuse, or not to reactivate a Token User's Account 6. Reservation of Right to disable Token 6.1. The Borrower shall reserve the right to revoke the authorization of a Token User to use a Token for any reason. 6.2. The Bank reserves the right, in its sole discretion, to temporarily or permanently disable a Token, de-activate a Token User's Account or both. Page 27 of 29 4S Attachmeni 4 Date: Paymnts made dårig tk peid from_ Te Applicatioa N.: Grant No.: For: F¢edi mdcs C~un *eCeIs subect te Ban L r Rewie a y NO Des~g om " 2 ¯ 4a 4b 5 6 7 8 9 10 l1 12 13 ClientEbl% Egible amom of Bnef Du Pad from Amut debited em Namc of Supplir,Corctor or Comection Tota Aamut of Con= Dae of IBRI7s No Invoc No Tof fcing ftom Desciipion of Exchan Ru Dipated from Desued NO consultant Contract Objen" fimnt fIBRD Goods, Works Accout Accouf Reference (6x7) or Srvices Total Total N.te (*) ~It=m shOMld be ~ne by c~goyor hmny,a seM SS rfanaw be OWd fkr edmadl ~ A Spac SS om bhu be used for r~asoe fkaong ad be clely rkoduretr fe a g (.) 1f dts appia~oi no fr ~elatedmDi pated Aco^L.leoncuu k 2md 13 blin b(lu dndde Recorda(cdo^g i tapendom te gcorp<.utpplCr mvoices)form lias cinad ds shen Page 28 of 29 4W Attacmnt 5 Psymies made during the period from To Applicadom No: Grant No.: For: Expendurs N* r Con= ges NOT wbject to Ée &nks Prior Review C~tgry NO