21-May-2019 Date: _________________ Mr. Auke Lootsma Resident Representative UNDP Yemen Sana’a Republic of Yemen (Attention: The Representative) Re: IDA Grant Number D462-RY (Fourth Additional Financing for Yemen Emergency Crisis Response Project) Additional Instructions: Disbursement and Financial Information Letter Dear Mr. Lootsma, I refer to the Financing Agreement between the UNITED NATIONS DEVELOPMENT PROGRAMME (for the benefit of the Republic of Yemen) (the “Recipient”) and the International Development Association (the “Association”) for the above-referenced Project. The General Conditions, as defined in the Financing Agreement, provide that the Recipient may, from time to time, request withdrawals of Grant amounts from the Grant Account in accordance with the Disbursement and Financial Information Letter, and such additional instructions as the Association may specify from time to time by notice to the Recipient. The General Conditions also provide that the Disbursement and Financial Information Letter may set out Project specific financial reporting requirements. This letter constitutes such Disbursement and Financial Information Letter (“DFIL”) and may be revised from time to time. I. Disbursement Arrangements, Withdrawal of Grant Funds, and Reporting of Uses of Grant Funds 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 the DFIL, and the manner in which the provisions in the guidelines apply to the Grant is specified below. (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 Advance. -2- (ii) Electronic Delivery. Section 11.01(c) of the General Conditions. The Recipient shall deliver Withdrawal Applications (with supporting documents) electronically through the Association’s web-based portal (https://clientconnection.worldbank.org) “Client Connection”. This option will be effected once the officials designated in writing by the Recipient who are authorized to sign and deliver Withdrawal Applications have registered as users of “Client Connection”. The designated officials shall deliver Withdrawal Applications electronically by completing the Form 2380, which is accessible through “Client Connection”. By signing the Authorized Signatory Letter, the Recipient confirms that it is authorizing such persons to accept Secure Identification Credentials (SIDC) and to deliver the Withdrawal Applications and supporting documents to the Association by electronic means. The Recipient may exercise the option of preparing and delivering Withdrawal Applications in paper form on exceptional cases (including those where the Recipient encounters legal limitations), and which were previously agreed with the Association. By designating officials to use SIDC, 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 Withdrawal 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 must prepare and furnish to the Association not later than forty-five (45) days after the end of each calendar quarter, interim unaudited financial reports (“IFR”) for the Project covering the quarter. (ii) Audits. The Recipient shall ensure that the audit of the Project is governed by: Article 4 of the Recipient’s Financial Regulations. III. Other Information For additional information on disbursement arrangements, please refer to the Loan Handbook available on the Association’s website (http://www.worldbank.org/) 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 Withdrawal 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, or if you have any queries in relation to the above, please contact the World Bank by email at askloans@worldbank.org. Yours sincerely, By: ____________________________ Marina Wes Country Director Egypt, Yemen and Djibouti Middle East and North Africa -3- Attachments 1. Form of Authorized Signatory Letter. 2. Interim unaudited Financial Report (IFR). -4- Schedule 1 : Disbursement Provisions Basic Information Country Republic of Yemen Closing Date Section IV.B.5. of Schedule 2 to Recipient UNDP the Financing Agreement. Grant Name of the Project Fourth Additional Financing for Disbursement Four months after the closing D462-RY Number Yemen Emergency Crisis Deadline Date date. Response Project Subsection 3.7 ** Disbursement Methods and Supporting Documentation Disbursement Methods Methods Supporting Documentation Section 2 (**) Subsections 4.3 and 4.4 (**) Direct Payment No Not Applicable Reimbursement No Not Applicable Advance Yes Interim unaudited Financial Report (IFR in the format provided in Attachment 2 of the DFIL) Special Commitments No Not Applicable Advance (Sections 5 and 6 **) All advances made by the Association will be deposited Variable, forecast for six (6) months into an official UNDP bank account in accordance with the of implementation as provided in the Type provisions of applicable provisions of the Financial Ceiling Interim Financial Report Regulations and Rules of UNITED NATIONS DEVELOPMENT PROGRAMME Financial Institution – Not Applicable USD Currency Name Frequency of Reporting Same as Interim Unaudited Financial Report Not Applicable Amount Subsection 6.3 (**) Minimum Value of Applications (subsection 3.5) Not Applicable. 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 **) A letter in the Form attached (Attachment 2) should be furnished to the Association at the address indicated below providing the name(s) and specimen signature(s) of the official(s) authorized to sign Withdrawal Applications: The World Bank 1818 H Street, N.W. Washington, D.C. 20433 -5- United States of America Attention: Marina Wes, Country Director All Withdrawal Applications and its supporting documentation will be electronically sent via the Association’s web-portal “Client Connection” ** Sections and subsections relate to the “Disbursement Guidelines for Investment Project Financing”, dated February 2017. -6- Attachment 1 Form of Authorized Signatory Letter [Letterhead] UNDP [Street address] [City] [Country] [DATE] International Development Association 1818 H Street, N.W. Washington, D.C. 20433 United States of America Re: IDA Grant Number D462-RY (Fourth Additional Financing for Yemen Emergency Crisis Response Project) Attention: _______________________, Country Director I refer to the Financing Agreement (“Agreement”) between the International Development Association (the “Association”) and the United Nations Development Programme (for the benefit of the Republic of Yemen) (“Recipient”), dated _______, providing the above Grant. For the purposes of Section 2.03 of the General Conditions as defined in the Agreement, any 1[one] of the persons whose authenticated specimen signatures appear below 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 Association, including by electronic means, 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. 1 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 to jointly sign Applications, if so, please indicate the actual number. Please delete this footnote in final letter that is sent to the Association. 3 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. -7- 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 / ______________ -8- Attachment 2 Interim Unaudited Financial Statements Interim Financial Report (IFR) Report 1-A Period (Quarterly) YEMEN EMERGENCY CRISIS RESPONSE PROJECT Grant No. D462-RY Sources and Uses of Funds Statement For the Period Ending XX/XX/XXXX All amounts are in USD Actual Planned Variance Description Current Year- Cumulative- Year- Cumulative- Current Year- Cumulative- Current Period Period To date To date To date To date Period To date To date Opening Cash Balance Project Account Sources of Funds Grant Funds Total Uses of Funds Labor Intensive Works and Improving Community Services Cash for Works Transfers Conditional Cash Transfers Subgrants Selected MFIs’ Operating Deficits Costs -9- Consultants’ services, goods, works, non-consultant services, Training and operating costs of SFD Project Management & Monitoring Indirect Cost Direct Cost Third Party Monitoring and Project Evaluation Closing Cash Balance Project Account Total - 10 - Interim Financial Report (IFR) Report 1-B Period (Quarterly) YEMEN EMERGENCY CRISIS RESPONSE PROJECT Grant No. D462-RY Uses of Funds Statement By Project Components/Activities For the Period Ending XX/XX/XXXX All amounts are in USD Actual Planned Variance Description Year- Year- Year- Current Cumulative- Cumulative- Current Cumulative- To Current Period To To Period To date To date Period To date date date date Uses of Funds Component # 1: Labor Intensive Works and Improving Community Services Cash-for-work and youth-targeted community services Conditional Cash Transfers to Eligible Beneficiaries for education, nutrition and health needs SME revitalization and employment generation Component # 2: Project Management and Monitoring - 11 - UNDP's indirect costs of 3% UNDP's Direct Costs Third Party Monitoring and Evaluation Cost Total Project Expenditures - 12 - Interim Financial Report (IFR) Report 1-C YEMEN EMERGENCY CRISIS RESPONSE PROJECT Grant No. D462-RY Cash Forecast For the Period Ending All amounts are in USD Cash Spent up to Cash Requirements Cash Requirements xx/xx/xxxx (UNDP for the next 1st for the next 2nd Cash requirements Disbursement Category Expenditures + amounts quarter ending Quarter ending for next 2 Quarters already disbursed by SFD XX/XX/XXXX XX/XX/XXXX Component 1: Labor Intensive Works and Improving Community Services Cash-for-work and youth- targeted community services Conditional Cash Transfers Subgrants Selected MFIs’ Operating Deficits Costs Consultants’ services, goods, works, non-consultant services, Training and operating costs of SFD Component 2: Project Management and Monitoring UNDP's indirect costs of 3% UNDP's Direct Costs Third Party Monitoring and Evaluation Cost Total - 13 - Total Cash Expenditures for the next 2 Quarters Closing Cash Balance as per the end of reporting period Additional Advance Requested - 14 - YEMEN EMERGENCY CRISIS RESPONSE PROJECT Grant No. D462-RY Bank Reconciliation For the Period Ending XX/XX/XXXX All amounts are in USD Opening Balance 0 Funds received (WA 1) 0 Funds received (WA 2) 0 Total 0 Expenditures by IP 0 Expenditures by UNDP 0 Outstanding advance with IP 0 Closing balance including outstanding advances 0