The World 13ank 1 (202) 473-1000 INTERNATIONAL 1ANK FOR RECONSTRUc rlON AND 1)EVELOPK E T) ashin on," O 3 Cable Address: INTBAFRAD INTERNAT1AL DEVELOPMENTASSOCIATIO U.S.A. Cable Address: INDEVAS November 28, 2012 Ms. Olga Lavrova MinLster of Finance MinLstry of Finance 58 Erkindik Boulevard Bishkek 720040 KYR GYZ REPUBLIC Dear Ms. Lavrova, Re: Grant Nc. T7012 105-KG - DFID Co-financing Trust Fund for (Secord Fural Water Supply and Sanitation Project) Adlitio, tal Instructions: Disbursement I relfer to the Gran Agrecmnt "Agreement") between the International Development Assoziation ("World Bank"), .ctig ai administrator of grant funds provided by the Government of the-, United Kingdom of Grcat Britain and Northern Island acting through the Department for International Development ("Donor") and the Kyrgyz Republic (the "Recipient") for the above- referenced project, dated November 21, 2012. The Agreement provides that the World Bank may issue additional instructions regarding the withdrawal of the proceeds of Grant TF013105 ("Grant"). This letter ("Disbars-mei1t Letter"), as revised from time to time, constitutes the additional instructions. The attached World Bank Di bur,-ement Guidelines for Projects, dated May 1, 2006, ("Disbursement Guidelines") i,Attachinent 1), are an integral part of the Disbursement Letter. The manner in which the provi3ioni in the Disbursement Guidelines apply to the Grant is specified below. Sections and subsecl ions in parentheses below refer to the relevant sections and subsections in the Disbursement Gudelines and, unless otherwise defined in this letter, the capitalized terms used have the m-ani igs ascribed to them in the Disbursement Guidelines. 1. Disbursement 4rrangement (i) Dlisbursement Methods (sect on ?). The following Disbursement Methods may be used under the Grant: * Reimbursement * Advance * Direct Payment * Special Comnitment; * UN Type advances tc UJNICIF (ii) Disbursement Deadline .9are (subsection 3.7). The Disbursement Deadline Date is 4 months after the Closing Date specified in the Grant Agreement. Any changes to this date will be notilied by the World Bank. II. Withdrawal of Grant Proceeds (i) Authorized Signatures (suipse.tior 3.1). A le-ter in the Form attached (Attachment 2) should be furnished to the World Bank at the address indicated below providing 1he name(s) and specimen signature(s) of the official(s) autho:rized to sign Application: The World Bank 1818 H Str,et, N.W. Washington, DC 20433 United States o 'America Attention: Couiltry Director (ii)) Applications (subsectionY 3.2 - 3.3). Please provide completed and signed (a) applications for withdrawal, together with suiporting documents, and (b) applications for special commitments, together with a copy of the commercial bank letter of credit, to the address indicated below: The Wold Ban c Radnicka c esta 80, 9 floor Zagreb, HR - 1) 000 Croatia Attentioa: Disb irsement Management (iii) Electronic Delivery (suisection 3.4) The World Bank may permit the Recipient to elect ronically deliver to the W orlI B nk Applications (with supporting documents) through the World Bank's Client Connection we!)-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, purs.iant to the terms of subparagraph (i) of this Section, its officials who are authorized to sign and deliver Applications and to rccei,e secure identification devices ("Tokens") from the World Bani for the purpose of deliver ng ;uch Applications by electronic means; and (b) all such officials designated by the Recipi-nt I ave registered as users of Client Connection. If the World Bank agrees, the Work Bank will pro ide the Recipient with Tokens for the designated officials. Following which, the designat,d officLals may deliver Applications electronically by completing Form 2380, which is accessible through Client Connection (http;://clientconnetio:. world ,ank.org). The Recipient may continue to exercise the option of preparing and delivering Applicationm 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 choos ng :o 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 S?cure Idenofica!tion Devices in connection with Use of Electronic Means to Process Applications and Supporting Documentation ("Terms and Conditions of Use of Tokc:2s") provided in Attachment 3; and (b) to deliver the Terms and Conditions of Use of Tokens to each such of icial and to caise such official to abide by those terms and conditions. (v) Minimum Value of Appliations (subsection 3.5). The Minimum Value of Applications is USD 50,000. (vi) A dvances (sections 5 and 6). * Type ofDesignated Iccoun (subsection 5.3): Segregated * Currency ofiDesigneitea Account (subsection 5.4): United States Dollar * (USD)Fintaneial Institutior at which the Designated Account Will Be Opened (subsection 5.5). Th, National Bank of the Kyrgyz Republic (NABKYR) * Ceiling (subsection (i.1): USD 150,000. IHI. Reporting on Usc of Grf nt Pro, eeds (i) Supporting Documentation (section 4). Supporting documentation should be provided with each application for withdrawEl at set out below: * For requests for Reimb wrseme it and for reporting eligible expenditures paid from the Designated Acco wnt: o Recons eviden(ing eligible expenditures (e.g. copies of receipts, supplier invoices) for p iym,,nts for Goods against contracts that are valued at US$200,000 (qu valt nt or more; for Technical services against contracts valued at US$ 100,0C0 cqui- alent or more; for Consultants' services against contracts valued at US , 10),00) equivalent or more for firms, and US$50,000 equivalent or more for individual consultants; o Statement of Expenc itures in the form attached (Attachment 4) for all other expenditures/ contracts o List of paymont, agLinst contracts that are subject to the World Bank's prior review, in the form attached (Attachment 5); and o A designated accoun reconciliation statement (Attachment 6) and related bank statement. * For requests for Direct Ptyment: Records evidencing eligible expenditures, e.g., copies of receipts, supplier it voices. * For UN Type Advani ce to INICEF: Copies of their invoices for supply, along with proof of delivery, under -ovc r of a withdrawal application approved by the Recipient. (ii) Frequency of Reportin g Elig ble Expenditures Paid from the Designated Account (subiection 6.3): Monthly IV. Other Disbursement Inst uchions: At the Recipient's request, disbursements for UN Type advances should be in accordaice with the Memorandum of Understanding between the Recipient and UNICEF. V. Other Important Informa 1ioni: For additional informaticn on di;bursement arrangements, please refer to the Disbursement Handbook available on the Warld Be nk's public website at https://www.worldbank.org and its secure website "Clieni Connection" ;t https://clientconnection.worldbank.org. Print copies are available upon request If you have not already ([on. so. the World Bank recommends that you register as a user of the C"lient Connection websit: (lptt //clientconnection.worldbank.org). From this website you will be able to download Applications, monitor the near real-time status of the Grant, and retrii ve related policy, financ: al, and procurement information. For more information about the website and registration airangerr.ents, please contact the World Bank by email at . If you have any queries in relation to the above, please contact Joseph Formoso, Senior Finance Office at LOA-ECAworldtank.org using the above reference. Yours sincerely, Saroj Kumar Jha Regional Director Central Asia Attachments: L//A1.World Bank Disbursement Cuidelin,s for Projects, dated May 1, 2006 2. Form for Authorized Signatiire,; 3. Terms and Conditions of Us o F Secure Identification Devices in connection with Use of Electronic Means to Process Applicaitions and Supporting Documentation, dated January 20, 2010 4 .Form of Statement of Expenditures 5. Form of Payments Against Contracis Subject to the Bank's Prior Review 6. Fo rm of Designated Account Rconciliation Statement Prep -red by Marie Khcury - C FR LA Cleared with and cc: - Ac am 'hayne - LEGLE - Ar na Cestari - ECSUW Attachment 2 [Letterhead] Ministry of Finance [DATE] The WNorld Bank 1818 H Street, N.W. Washington, D.C. 20433 United States of America Attention: [Country Director Dear [Country Director]: Re: Grani No. TY 01 105 - (Second Rural Water Supply Sanitation Project) I refer to the Grant Agi eeineni ("Agreement") between the International Development Asso:iation ("World Eank"), acting a; administrator of grant funds provided by the Govi rnment of the United Kinigd )m of Great Britain and Northern Island acting through the Depirtment for International Dexeloyment ("Donor"), and the Kyrgyz Republic (the "Recipient"), dated __ , pro,iding the above Grant. For the purposes of Section 3.04 (b) of the Standard Conditions, as defined iii the Agreement, any [lone] of the persons whose authenticated specimen signatures appear below is authorized on behalf of the Recipient to sign applications for withdrawal [and app ications for a special commitment] under this Grant. For the purpose of delivering. Applications to the World Bank, 2[each] of the persons who:ze authenticated specimer. signat ires appears below is authorized on behalf of the Recip-ient, acting 3[iindividuall-] 4jjoin :1y], to deliver Applications, and evidence in support thereof on the terms ard conditiotis specified by the World Bank. 5[This confirms that the Recipi mt is authorizing such persons to accept Tokens and to deliver the Applications and siipportii-ng documents to the World Bank by electronic means. In full iecognition that the World Bank shall rely upon such representations and warranties, including without limi tation, t Le -epr sentations and warranties contained in the Terms and Conc'tions of Use of Secure Ideniific7tior, Devices in connection with Use of Electronic Means to Process Instruction to the Recipient w,hen sendiig tf is letir to the World Bank: Stipulate if more than one person needs to sign Applicitions, and how many o:- which pc siticns, ar d if any thresholds apply. Please delete this footnote in final letter that is sent to the Vorld Bank. 2 Inst uction to the Recipient: Stipulate iFmcre thai one person needs tojointly sign Applications, if so, please indicate the actual nunb.-. Please delete this fooerote infin lleter tl at is sent to the World Bank. Instruction to the Recipient: Jse this b- ackot if a y one of the authorized persons may sign; if this is not applicable, please delete. Please delete this footnote infincl let er thct is sent to the World Bank. 4 Instruction to the Recipient: Jse this b:ackot onl if several individuals must jointly sign each Application; if this is not applicable, please delete. Pleae delete t nisjootno e in final letter that is sent to the World Bank. 5 Inst uction to the Recipient: Add this Iparajraph if the Recipient wishes to authorize the listed persons to accept Tokens and to delive- Applications by electro-ic means if tiis is iot applicable, please delete the paragraph. Please delete this footnote in final letter att is sent to the World 3ank App! cations and Supporting Do:unenth tion ("Terms and Conditions of Use of Tokens"), the Recipient represents and wan nis to he World Bank that it will deliver to each such person a copy of the Terms and Condit on3 of Jse of Tokens and will cause such persons to abide by those terms and condilions.] This Authorization replaces ai d supersedes any Authorization currently in the World Bank- records with respect to t iis Agroement. [Name], [position] 3pecimen Signature: [Name], [position] 3pec imen Signature: [Name], [position] 3pec imen Signature: Yours truly, / signed / Minister of Finance Attachment 3 Terms and Cl meitioi is of Use of Secure Identification Devices in cu nn ectio n with Use of Electronic Means to Process Applications and Supporting Documentation January 20, 2010 The World Bank (Banl )6 will provide secure identification devices (Tokens) to permit the Borrower7 to deliver appli,atic ns for withdrawal and applications for special commitments under the A reemer t(s) and supporting documentation (such applications and supporting doc amenta ior tog ,ther referred to in these Terms and Conditions of Use 'a3 Applications) to the Bar k electionically, on the terms and conditions of use specified h.-rein. A. Identification of Users. 1. The Borrow er will e requ red to identify in a completed Authorized Signatory Letter (ASL) duly c eli vere I to and received by the Bank each person who will be authorized to deliv(r Appli-ations. The Bank will provide Tokens to each person identified in the ASL (Signatory), as provided below. The Borrower shall also immediately notify the Bar k if a Signatory is no longer authorized by the Borrower to act as i Signal ory. 2. Each Signatory mu:;t register as a user on the Bank's Client Connection (CC) website (httis://clientcDnncction.worldbank.org ) prior to delivery of Tokens. Registration on CC wi 1 require that the Signatory establish a CC password (CC Password). The Signa:ory shall not reveal his/her CC Password to anyone or store or record the CC Pass word in written or other form. Upon registration as a CC user, the Signatory will be assigned a unique identifying account name. B. DistribUtion, Initi liz atioii and Return of Tokens. I The Bank will physica.ly deliver a Token to each Signatory in a manner to be determined by and ;ati3faciory to the Bank. 2 At the time f delivery of a Token to a Signatory, the Signatory will receive a copy of these Term; aid C-)nditions of Use for purposes of initializing the Token. 3 The Bank NNill verily that the Token, Temporary Password and Terms and Conditions of Use havo becn duly delivered to and received by the CC User. 6 "Bank" includes IBRD and ID,. "Borrower" includes the borrower f an IBRD loan, IDA credit, or Project Preparation Facility advance and the recipient of a grant. 4. Promptly upon reccipt oft ie Token and Terms and Conditions of Use, the Signatory will access CC ising his/her account name and CC Password and register hisiher Token and set a personal identification number (PIN) to be used in connection with thc use of his/her Token, after which the Token will be initialized for use by the Sign itoly e> clusively for purposes of delivering Applications. Upon iriitialization of he Token, the Signatory will be a "Token User". The Bank will mainta.n in its dalabase a user account (Account) for each Token User for purposeI ofmanag ng the Token of the Token User. Neither the Borrower nor the Token User will have my access to the Account. 5. Prior to first use of the Tol en by the Token User for delivering Applications, the Borrow'r shall ens ire that the Token User has received training materials provided by the Baik n use of the Token. Tokens shall be prcm tly i turned to the Bank upon request of the Bank. C.Managment of Tokens. Tokens will remain the prcperty of the Bank. 2. Use of the Token is stiictl) limited to use in the delivery of Applications by the Token User in the imiarner >rescribed by the Bank in the Agreement(s) and these Terms arid Conditions. Any other use of the Token is prohibited. The Bank assumes rio -esponsibility or liability whatsoever for any misuse of the Token by the Token User, )ther representatives of the Borrower, or third parties. 4. The Borrower undertakes ti ensure, and represents and warrants to the Bank (such representatioi and w arranty being expressly relied upon by the Bank in delivery of a Toker to eact Token User) that each Token User is provided, understands and wiJI a)ide by, these Terms and Conditions of Use, including without limitation te iollo wing: Security 4.1. The Token User shill not reveal his/her PIN to anyone or store or record the PIN in written cor other form. 4.2. The Token User shill not allow anyone else to utilize a Token to deliver an Application to ti e Bank, 4.3. The Token User sh ill always logout from CC when not using the system. Failure to logout prop(rly can create a route into the system that is unprotected. 4.4. f the Toker User believes a third party has learned his/her PIN or has lost his/her Token he/sf e slall immediately notify clientconnection@worldbank.org. 4.5. The Borrower ;hall immediately notify the Bank at clientcoineztion(& voildb nk.org of any lost, stolen or compromised Tokens, and take other reasonal le steps to ensure such Tokens are disabled immediately. Care of Tokens 4.6. Tokens coni:air del cate and sophisticated instrumentation and therefore should lbe handled with duo care, and should not be immersed in liquids, exposed to extreme temperaturos, c:ushed or bent. Also, Tokens should be kept more than five (5) Fm from devices ti at generate electromagnetic radiation (EMR), such as mobile Phones, ph(ine- enabled PDAs, smart phones and other similar devices. Tokens hould be carred and stored separate from any EMR device. At close range (1 ss than 5 c m). the!se devices can output high levels of EMR that can interfere wi:h the p -op -r op ieration of electronic equipment, including the Token. 4.7 Without dei ogating from these Terms and Conditions of Use, other technical instructio is (in the proper use and care Tokens are available at http://www.rsa.con.. Replacement 5.1. f,ost, damag ed. con promised (in terms of 4.5, above) or destroyed Tokens will be ieplaced at ihe expense of the Borrower. 5.2. The Bank re seives he right, in its sole discretion, not to replace any Token ii the, case of misus , or not to reactivate a Token User's Account 6. Reserva ion ofRigt t9 d, able Token 6.1. The BorroA er shall reserve the right to revoke the authorization of a Token User to use ,. Token for any reason. 6.2. The Bank rcserves he right, in its sole discretion, to temporarily or permanently disabl,. a rokin, de-activate a Token User's Account or both. Attacilleit 4 Statement of Expenditures (SOE) Payments made during the period from to Date: ApplicatirrNu.: For exoenditures against the contracts not subiect to the Bank Prior Review TV Nn- SOE No.: 1 7i 9 TI S V A 7 9 0 No. No. (**) Amount of Contract Total Amount of from Schedule Eligible for Amount Paid from (Cot 7 divided by Invoice Covered 2 of Financing (4 Special Account (if Col. 6) by Application Loan/Credit x 5) Applicable) (Net of Retention) Agreement TOTALS Supporting documents for this SOE retained at (insert location) (*) A separate SOE form should be used for retroactive financing (**) Items should be grouped by category; or alternatively, a separate SOE form may be used for each category Attachment 5 Payments Made during Reporting Period Again t C i)ntra cts Subject to the Bank's Prior Review Attachment 6 DESIGNATED ACCOUNT RECONCILLILTION STATEMENT LOAN/CRE IT/GRANT? PF/COT INANCIER NUMBER ACCOUNT MBER WITH (BANK) 1. TOTAL AD x CED BY WC RLE BANK (OR CO FINANCIER) $ 2 LESS: TOTAL AMOUNT RECOVERED BY WORLD BANK - $ 3. EQUALS PRESENT OUT!TANDl4G AMOUNT ADVANCED TO THE SPECIAL ACCOUN-' (NUMI ER 1 LESS NUMBER 2)= $ 4. BALANCE OF SPECIAL ACCOUN 1T PER ATTACHED BANK STATEMENT AS OF DATE $ 5. PLUS: TOT4L AMOUNT CL AIM ED IN THIS APPLICATION NO. + $ * 6. PLUS: TOTAL AMOUNT WITHD RAWN AND NOT YET CLAIMED REASON: + $ * 7. PLUS: AMOUNTS CLAIMED) IN -IREVIOUS APPLICATIONS NOT YET CRDITED AT DATE C F BANK STATEMENTS APPLICATION NO. AMOUNT *7 SUBTOTAL OF F REVIOU S APPLICATIONS IOT YE r C RED TED + $ 8. MINUS: INTIEREST EAR4EI) - $ * 9. TOTAL ADVANCE ACCOUNTEE FOR (NO. 4 THROUGH NO. 9) = $ 10. EXPLANATION OF ANY DIFFER ENCE BETWEEN THE TOTALS APPEARING ON LINES 3 AND 9: 11. DATE: SIGNATURE: TITLE: * ALL ITEMS SHOILD BE IND CA TED ON THE BANK STATEMENT