OFFICIAL DOCUMENTS THE WORLD BANK IBRD. IDA I WORLD BANKGROUP ,01 2018 H.E. Adylbek Kasymaliyev Minister of Finance Ministry of Finance 58, Erkindik Boulevard Bishkek 720040 Kyrgyz Republic Re: IDA Financing (IDA Grant No. D279- KG and IDA Credit No. 6200-KG) Digital CASA - Kyrgyz Republic Project Additional Instructions: Disbursement and Financial Information Letter (DFIL) Excellency: I refer to the Financing Agreement between Kyrgyz Republic (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 and Credit amounts from the Grant and Credit Accounts 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 and Credit Funds, and Reporting on Uses of Grant and Credit 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 and Credit is specified below. (i) Disbursement Arrangements * General Provisions (Schedule 1). The table in Schedule I 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. 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.org) "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 cause the Project Implementing Entity to 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, in form and substance satisfactory to the Association. (ii) ProjectAudits. The Recipient shall cause the Project Implementing Entity to have the Project financial statements periodically audited by independent auditors acceptable to the Association, in accordance with consistently applied auditing standards acceptable to the Association. Each audit of the Project Financial Statements shall cover the period of one fiscal year of the Recipient. The audited Project Financial Statements for each such period shall be (a) furnished to the Association not later than six (6) months after the end of such period and (b) made publicly available in a timely fashion and in a manner acceptable to the Association. III. Other Information For additional information on disbursement arrangements, please refer to the Loan Handbook available on the Association's public 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 Applications, monitor the near real-time status of the Grant and Credit, 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. 2 If you have any queries in relation to the above, please contact Jasna Mestnik, Finance Officer at jmestnik@worldbank.org, with copy to Dessirie Kalinski, Finance Analyst at dkalinski@worldbank.org using the above reference. Yours sincerely, Bolormaa Amgaabazar Country Manager for Kyrgyz Republic Attachments 1. Form of Authorized Signatory Letter 2. Form of Statement of Expenditure (SOE) 3. Form of Designated Account Reconciliation Statement Cc with copies: Digital CASA KG Project Implementation Unit within State Committee for Information Technology and Communication (SCITC) 3 Schedule 1: Disbursement Provisions Country Kyrgyz Republic Closing Date Section Ill.B.2. of Schedule 2 to Recipient Ministry of Finance the Financing Agreement Grant/Credit Name of the Project Digital CASA - Kyrgyz Republic Disbursement Four months after the Closing Number Project Deadline Date Date (Subsection 3.7 **) Disbauna w* hol06 and Supporting pkCyheotaies Disbursement Methods Methods Supporting Documentation (Section 2 **} (Subsections 4.3 and 4.4 **) Direct Payment Yes Copy of records (e.g. suppliers' invoices, guarantees for advance and retention payments, etc.) Reimbursement Yes Statement of Expenditure (SOE) in the format provided in Attachment 2 of the DFIL Designated Account Yes Statement of Expenditure (SOE) in the format provided in Attachment 2 of the DFIL; Designated Account Reconciliation Statement in the format provided in Attachment 3 of the DFIL, supported with related bank statement Special Commitments Yes Copy of Letter of Credit Designated -Account (Sections $ and 6 * Segregated - Separate Designated Accounts will be opened for Type each of the financing sources, namely one Designated Account Ceiling Fixed (DA) for IDA Grant and one DA for IDA Credit. Financial Institution - To be established at a financial institution acceptable to the Pre nci D Name Association Frequency of Reporting Quarterly, or more frequently if needed. Amount 1,000,000 for each of the two DAs (Subsection 6.3 **) Th li:iminium value of applications for Reimbursement, Direct Payment and Sp3ecial Commitment is; U SD 200,000) eciuivalent. The World Bank Radnicka cesta 80, 9t" floor Zagreb, HR-10000 Croatia Attention: Loan De2art mt (WFACS) *Sections and subsections relate to the "Disbursement Guidelines for Investment Project Financing" dated February 2017. Attachment 1 - Form of Authorized Signatory Letter [Letterhead] [Recipient] [Street address] [City] [Country] [DATE] The World Bank 1818 H Street, N.W. Washington, D.C. 20433 United States of America Attention: Country Director Re: IDA Financing (IDA Grant No. D279- KG and IDA Credit No. 6200-KG) Digital CASA - Kyrgyz Republic Project I refer to the Financing Agreement ("Agreement") between the International Development Association (the "Association") and Kyrgyz Republic (the "Recipient"), dated , providing the above Grant and Credit. 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 [and applications for a special commitment] under this Grant and Credit. 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. This confirms that the Recipient is authorizing such persons to accept Secure Identification Credentials (SIDC) and to deliver the Applications and supporting documents to 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 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. 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. 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] Attachment 2 - Form of Statement of Expenditure Statement of Expenditure (SOE) Payments made during the period from to Credit No.: Application No.: Category No.: SOE No.: 1 2 3 4 5 6 7 8 9 10 11 Supplier's WB Type of Good or Currency and Total Currency and % Financed Amount Currency and Exchange Date of Remarks Name Contract Service Amount, and Date of Total Amount by Eligible Amount Paid Rate Payment Number in (CW/GO/CS/OP/TR) Contract of Invoice IBRD/IDA/TF for from Client / Brief Description Covered by Financing Designated Connection Application (5 x 6) Account (if (for Prior Applicable) Review Contracts) TOTALS Supporting documents for this SOE retained at (location) Attachment 3 - Form of Designated Account Reconciliation Statement DESIGNATED ACCOUNT RECONCILIATION STATEMENT LOAN/CREDIT/PPF/COFINANCIER NUMBER ACCOUNT NUMBER WITH (BANK) I. TOTAL ADVANCED BY WORLD BANK (OR COFINANCIER) US$/EUR 2 LESS: TOTAL AMOUNT RECOVERED BY WORLD BANK - US$/EUR 3. EQUALS PRESENT OUTSTANDING AMOUNT ADVANCED TO THE DESIGNATED ACCOUNT (NUMBER I LESS NUMBER 2) = US$/EUR 4. BALANCE OF DESIGNATED ACCOUNT PER ATTACHED BANK STATEMENT AS OF DATE US$/EUR 5. PLUS: TOTAL AMOUNT CLAIMED IN THIS APPLICATION NO. + US$/EUR 6. PLUS: TOTAL AMOUNT WITHDRAWN AND NOT YET CLAIMED REASON: + US$/EUR 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 + US$/EUR 8. MINUS: INTEREST EARNED - US$/EUR 9. TOTAL ADVANCE ACCOUNTED FOR (NO. 4 THROUGH NO. 9) US$/EUR 10. EXPLANATION OF ANY DIFFERENCE BETWEEN THE TOTALS APPEARING ON LINES 3 AND 9: 11. DATE: SIGNATURE: TITLE: