OPPCtAL _ _= IF 1 Q The World Ba nk 1818 H Street N. (202) 473-1000 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPME1 IT 'i's QoQ_ .d.33 Cable Address: INTBAFRAD INTERNATIONAL DEVELOPMENT ASSOCIATIO q U.S.A. Cable Address: INDEVAS March 14, 2013 H.E. Mr. Nikola Spiric Minister of Finance and Treasur,7 Trg Bil 1 71000 Sarajevo Bosnia and Hersegovina Excellency: Re: EC. PA Grant No. TF011456) (Second Solid Waste Mauagement Project: Mostar and Banja Luka) Additional Ins ructiosi s: First "Restated" Disbursement Letter I refer to the Letter Agre(ment ('Agreement") between Bosnia and Herzegovina ("Recipient"); and International Bark f )r R, :construction and Development ("World Bank"), acting as administrator of the European Cominision "or the European Union Instrument for Pre-Accession Trust Fund (C IPA TF) funds provided 1y the European Commission for the above-referenced project, dated July 24, 2012. The Agreerr eni pro vides that the World Bank may issue additional instructions regarding ,the withdrwal of the proceeds of Grant No. TF01 1456 ("Grant"). This letter (" Disbursement Let Ler"), a. re vise I from time to time, constitutes the additional instructions. The Disbursement Letter lat-d Jily 24, 2012 is hereby "Restated" to amend the single Designated Account and make aA ail ible two Designated Accounts with two separate ceilings under bullets 1 and 4 of Section [I.(vi) a s follows: Designated Account "E" for the Federation of Bosnia and Herzegovira Mini: try of I Environment and Tourism (FMET with a ceiling of Euro 450,000. and Designated Accoun t "F" fc r the Republica Srpska Ministry of Physical Planning, Construction and Ecology (RS MPPCE) with a ceiling of Euro 550,000. The attached World Bank Di..bur vement Guidelines for Projects, dated May 1, 2006, ("Disbursement Guidelines") (Ati:acinme it 1), are an integral part of the Disbursement Letter. The manner in which the provisions in tl .e Disbursement Guidelines apply to the Grant is specified below. Sections and subsectioi is in parentheses below refer to the relevant sections and subsections in the Disbursement 'Juideli ies and, unless otherwise defined in this letter, the capitalized terms used have the meaning; ascribed to them in the Disbursement Guidelines. I. Disbursement Arrangements (i) Disbursement Methods (secthan 2). The following Disbursement Methods may be used under the Grant: * Reimbursement * Advance * Direct Payment * Special Commitment (ii) Disbursement Deadline Date (s ibsi ction 3.7). The Disbursement Deadline Date is four months after the Closing Date sp -ci 'ed In the Grant Agreement. Any changes to this date will be notified by the World Bank. (iii) Disbursement Conditions (subectim 3.8). Please refer to the Disbursement Condition(s) in the Grant Agreement. II. Withdrawal of Grani Proce,!ds (i) Authorized Signatures (subse ction 3 1). A letter in the Form attached (At aclhmei it 2) should be furnished to the World Bank at the address indicated below providing the mme(s) and specimen signature(s) of the official(s) authorized to sign Applications: The Work BLnk 1818 H Street, N.N. Washingtcn, D.C., 20433 Un ted Sta tes of A merica Attention: Counti y Director (ii) Applications (subsectons 3.; - -.3). Please provide completed and signed (a) applications for withdrawal, together with surporting documents, and (b) applications for special commitments, together with a colpy of th, commercial bank letter of credit, to the address indicated below: The World Bnk Radnicka (esta, 9" floor. Zagreb, HR - 10 (00 Crcatia Attention: Lc an I lepartment (iii) Electronic Delivery (vubsecton 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-b ised 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 !,ecure identification devices ("Tokens") from the World Bank for the purpose of deliverir g stach Applications by electronic means; and (b) all such officials designated by the Recipi en hai e registered as users of Client Connection. If the World Bank agrees, the World Bank wi'l p ovii le the Recipient with Tokens for the designated officials. Following which, the designated off icials may deliver Applications electronically by completing Form 2380, which is accessible t aroaugh Client Connection (https://clientconnecti n.vorldbank.prg). The Recipient may continue to exercise the option of preparing and deliveriig Applications in paper form. The World Bank reserves the right and may, in its sole discretion, tempo rar ly o r permanently disallow the electronic delivery of Applical ions by the Recipient. (iv) Terms and Conditions of Use o' To kens to Process Applications. By designating officials to accept Tokens and by choosing tc del ver the Applications electronically, the Recipient confirms through the authorized igniatoi y letter its agreement to: (a) abide by the Terms and Conditions of Use of Sec4re Identifikatic n Devices in connection with Use ofElectronic Means to Process Applications aid Suppor,ing Documentation ("Terms and Conditions of Use of Tokens") provided in Attachmen: 5; and (b) to deliver the Terms and Conditions of Use of Tokens to each such official and :o caus such official to abide by those terms and conditions. (v) Minimum Value ofApplicationq (subsection 3.5). The Minimum Value of Applications is Euro 100,000. (vi) Advances (sections 5 and 6). * Type of DesignatedAcdount[s' (subsection 5.3): Segregated - exclusively for this project and for EC IPA grant p -oceeds as follows: Designated Account "E" for the Federation of Bosnia and H1- erzi egovina Ministry of Environment and Tourism (FMET, and Designated Account "F" fc r the Republica Srpska Ministry of Physical Planning, Construction and Ecology RS N4PPCE). * Currency ofDesignated A ccovnt[s] (subsection 5.4): Euro * Financial Institution a' wdrich the Designated Account[s] Will Be Opened (subsection 5.5): A commercial bank acce >table to the World Bank. * Ceiling (subsection 6.1): Eurc 450,000 for Designated Account "E", and Euro 550,000 for Designated Account "F". III. Reporting on Use of Grant Proce4 ds (i) Supporting Documentation ( eciion f). Supporting documentation should be provided with each application for withdrawal zs s,t ot t below: * For requests for Reimb urs emi nt and for reporting eligible expenditures paid from the Designated Accoun r: o List of payments agains. contracts that are subject to the World Bank's prior review, in the fo m attai hed (Attachment 4) o Records evidencing eliE ible expenditures (e.g., copies of receipts, supplier invoices) for pa3 mc nts 'or works against contracts valued at EUR 750,000 equivalent or mc re; for goods against contracts valued at EUR 75,000 equivalent or more; for -onsultant services against contracts valued at EUR 50,000 equivalent or more for firms and at EUR 35,000 equivalent or more for individual consu Itaiits,, nd o Statement of Ex-)enditu -e in the form attached (Attachment 3) for all other expenditures / conti acts * For requests for Direct Pavme it: records evidencing eligible expenditures, e.g., copies of receipts, supplier invoices (ii) Frequency of Reporting Eligible E penditures Paid from the Designated Accounts (subsection 6.3): Replenishment ap 3lic, tions should be submitted quarterly. The replenishment applications (to the Designated A ccount,) must include reconciled bank statements as well as other appropriate supporting documeints. IV. Other Disbursement Instrui,tions Please note that no withdrawal shall be m iade for payments made prior to the date of this Agreement. Please also note that the financing percentages, as per Section IV A. of the Grant Agreement are to be applied to each payment mz de for cligible expenditures. V. Other Important Informati on ,f or additional information on dis bursement arrangements, please refer to the Disbursement Handbook available on thi World Bank's public website at https://ww.worldbank.oig and ils secur e website "Client Connection" at https://clientconnectiot.worldbar k.crg. Print copies are available upon request. :rom the Client Connecti.n web: ite, you will be able to download Applications, monitor the near real-time status of the Gi ani, an I retrieve related policy, financial, and procurement information. If you have not already d xc so, the World Bank recommends that you register as a user of the Client Connection website (ht ps! 'clientconnection.worldbank.org). From this website you will be able to download Applicatio: is, monitor the near real-time status of the Grant, and retrieve related policy, financial, amc pro curement information. All Recipient officials authorized to sign and deliver Ap pliiatic ns by electronic means are required to register with Client Connection before electroi nic deli-ery can be effected. For more information about the website and registration arrangei nei its, please contact the World Bank by email at . If you have any queries i 1 r lation to the above, please contact Jose Janeiro, Senior Finance Officer at jjaneiro@worldbank.crg using the above reference. (\urs s cerely, Jo;C IJaneiro Se iior Finance Officer Lc an Deprtment Attachrm-ents: Please note that all attacl iments as per the original disbursement letter dated July 24, 2012 remain valid. Prepared by Marie Khouiy - CTRLA Cleared with and cc: Adam Shýiyne, L]EGLE Vesna Francic, ECSSD Cc with copies: H.E. Zivko Budinir President Federalion of I Bosnia Lnd Herzegovina H.E. Zoran Te geLija Minister of Fii an,e Republika Srp ;ka Bosnia and Herzegovi na