The World Bnk 1818 H Street NW. (202) 473-1000 INTERNATIONAL BAIK FOR RECONSTRUCTION AND DE VEL )PME qT Washington, D.C. 20433 Cable Address: INTBAFRAD INTERNATIONAL DE VELOPMENT ASSOCIATION U.S.A. CableAddress: INDEVAS H.E. Ridvan Bode Mr"2 Minister of Finance Ministry of Finance Bulevzndi Deshmoret e Kombit Tirana Albania Excellency: Re: Grant No. TF014255-A.LB - (Albania Water Resources and Irrigation Project) Adit ona Instructions: Disbursement refer to the Letter Agre.ment ('Agreement") between the International Bank for Reconmiiuction and Developmert ( Wo ld Bank"), acting as administrator of grant funds provided by Sweden, represented by Sw edish International Development Cooperation Agency (SIDA) ("Donor"), and the Gove mr-nent of Albania (the "Recipient") for the above-referenced project, dated . The Agreement provides that the World Bank may issue additional instructions regarding the withdrawal of the proceeds of Grant TF014255-ALB ("Grant"). This letter ( Disbursement Letter"), a; revise I from time to time, constitutes the additional instructions. The attached Word Bank DiYbut sement Guidelines for Projects, dated May 1, 2006, ("Disbursement Guidelines") (AltacEmeit 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 subsectio s in parentheses below refer to the relevant sections and subsect-ons in the Disbursement Ju:deli es and, unless otherwise defined in this letter, the capitaliz!ed terms used have the meaning; ascribed to them in the Disbursement Guidelines. I. Disbiirsement Arrangement!i (i) Disbe'rsement Methodv (sectis.pn 2). 'he following Disbursement Methods may be used under the Grant: * Reimbursement * Advance * Direct Payment * Special Commitment (ii) Disbursement Deadlive Date (si4bsection 3.7). The Disbursement Deadline Date is 4 months after the Closing Date specif ed i i the Grant Agreement. Any changes to this date will be notified by the World Ban<. II. HNithdrawal of Grant Pro.eels (i) Au.1horized Signatures (sub.eciion 3.1). A lette:- in the Form attached (A.ttachm.nt 2) should be furnished to the World Bank at the address indicated below providing the iame(s) and specimen signature(s) of the official(s) authorized to sign Applications: The World Bank 1 18 H Street, N.W. Washinglon, D.(. 20433 United State. of Nmerica Altention: Ellen oldstein Country E irec or for Western Balkans Europe an I C ntral Asia Region (ii) Ap,,lications (subsections 3.2 - 3.3) Please provide completed and signed (a) applications for wit [drawal, together with suppc,rtin , documents, and (b) applications for special commitrents, together with a copy of t ie commercial bank letter of credit, to the address indicat:d below: The Worl1 Bank Radnicka cesta 81), 9 floor Zagreb, HR -- 10 )00 Croatia At:ention: Disbu-sement Group (iii) Electronic Delivery (subsecilion 3.4) The World Bank may permit the Recipient to electronically deliver to the World Bank Applications (with supporting documents) through the World -:,ank's Client Connectior, web-t ased portal. The option to deliver Applications to the World 3-ank by electronic means may bc effected if: (a) the Recipient has designated in writing, pursuar to the terms of sabparagraph (i of this Section, its officials who are authorized to sign and del /er Applications and to receive: ecure identification credentials ("SIDC") from the World Iank for the purpcse of d1lixerinD such Applications by electronic means; and (b) all such of cials designated by the Rec [pieiit have registered as users of Client Connection. If the World Eank agrees, the World Bank wil provide the Recipient with SIDC for the designated officials Following which, the dcsignat d officials may deliver Applications electronically by compleling Form 2380, which is accessi fle through Client Connection (https://Iientconnection.worldbank. rg) The Recipient may continue to exercise the option of preparin.a and delivering Applicarions in paper form. The World Bank reserves the right and may, in its sole discretion, tempoirarily o permanently disallow the electronic delivery of Applications by the Recipient. (iv) Terms and Conditiony of Us :! ofSIPC to Process Applications. By designating officials to use SDIC and by choosing to deliver the Applications electronically, the Recipient confirms through the authorized signatory etter it. agreement to: (a) abide by the Terms and Conditions of Use of Secure Identification Creadentials ;n connection with Use of Electronic Means to Process Applic ations and Supporting Docunen ation ("Terms and Conditions of Use of SIDC") provided in Atta:hment [3]; and () to cause sue i official to abide by those terms and conditions. (v) Mivimum Value oflpplica ions (s vbsection 3.5). The Minimum Value of Applications is Euro 50,000. vi) Advances (sections 5 and 6), * Type of Designated Accoant (subsection 5.3): Segregated * Currency ofDesignatedAccount (subsection 5.4): Euro * Financial Institution tit whic the Designated Account Will Be Opened (subsection 5.5): Bank of Albania (Centrz1 Bank) * Ceiling (subsecrion 6.1). Euro 200,000. Ill. Reporting on Use of Granir Proceeds (i) Supporting Documenation (ieciion 4). Supporting documentation should be provided with each application for withdrawal is set out below: * For requests for Reimbursem'nt andfor reporting eligible expenditures paidfrom the Designated Accourit: o Records (Form .3A und,r Attachment 4) evidencing eligible expenditures (e.g. copies of receip s, supp ier invoices) for payments for works against contracts valued at Euro 150.000 equivalent or more; for goods against contracts valued at Euro 150,000 eqiuiva ent or more; for consultants' services against contracts valued at Euro 75,000 equivalent or more for firms and at Euro 35,000 equivalent or more for i idividual consultants. o Statement of Expenditu e (Form 3B under Attachment 4) for all other expenditures / contractsi, including training and operating costs; o List of payment :igainst contracts that are subject to the World Bank's prior review, in the fo. n itta( hed (Attachment 5); and o A designated account re:onciliation statement (Attachment 6) and related bank statement. * For requests for Direct Paymen!t: records evidencing eligible expenditures, e.g., copies of receipts, supplier invc ice s (ii) Fiequency of Repoiting Eligiole Lxpenditures Paid from the Designated Account (subse.tion 6.3): Replenishment a)pli( ations should be submitted monthly and must include a recon( liation of the Designated AccoL nt. V. Other Important I formai:ioii For additional iniormati)n on d sbursement arrangements, please refer to the Disbur;ement Handbook availa:>1e on t ie World Bank's public website at httpsmvww.worldbank.trn and its seci re website "Client Connection" at https:/ clientconnection.worldbznk.org. Print copies are available upon request. From the Client 'onnec tion wc bsite, you will be able to download Applications, monitor the near real-time status of the Grant, and retrieve related policy, financial, and procurement informtion. If you have not already done so the World Bank recommends that you register as a user of the (lient Connection website (https: //clientconnection.worldbank.org). From this website you will be able to down .oad Appli:ati ns, monitor the near real-time status of the Grant, and retrieve related policy, financial, anl procurement information. All Recipient officials authorized to sign and deliver A',pl cati ns by electronic means are required to register with Client Connection before electrcn1c delivery can be effected. For more information about the website and registration arrangemetits, lease contact the World Bank by email at . If you have any queries in relati n to the above, please contact Jose Janeiro, Senior Finance Officer at ijaneir;@worldb mk. )rg using the above reference. Yours 'er y, Anthony A. Gaeta Acting Country Director for Southeast Europe E urcpe and Central Asia Region Attachni.nts: 1. World Bank Disbursement GidE line for Projects, dated May 1, 2006 2. Forr- for Authorized Signatui es 3. Terms and Conditions of Use ojfSecu,e Identification Credentials in connection with Use of Electronic Means to Process Applica lions and Supporting Documentation, dated March 1, 2013 4. Form of Statement of Expenditure (3 \ & 3B) 5. Form of Payments Against Contracts Subject to the World Bank's Prior Review 6. Form of Designated Account e(c onc liation Statement. Attachment 121 Fo:rm of Puthorized Signatory Letter [Letterhead] linistry of Finance [Street address] [City] [Country] [DATE] The W,:rld Bank 1818 H ;treet, N.W. Washington, D.C. 20433 United States of America Attent,on: [Country Director] Dear P*.'ountry Director] Re: Grant No TF014255-AL 3 (Albania Water Resources and Irrigation Project) I refer to the Grant AgrE emrent "Agreement") between the [International Bank for Reconstruction and pevelopmE nt "'W)rld Bank")], acting as administrator of grant funds provided by Sweden, represented by Swedish International Development Cooperation Agency (SIDA) ("Donor"), and name o tecipie it] (the "Recipient"), dated , providing the above Grant. For the purposes of Seclior. 3.04 (b) of the Standard Conditions, as defined in the Agreement, any [orle] cf the persons w vhose authenticated specimen signatures appear below is autho:.ized on behalf of the Rec ipismt t sign applications for withdrawal [and applications for a special commitment] urder thi; Grant For the purpose of delivering Applications to the World Bank, 2[each] of the persons whose authenticated sp ximen sig nattres appears below is authorized on behalf of the Recip ent, acting 3[individually ] 4[ oini ly], to deliver Applications, and evidence in support thereo -on the terms and condi ion s sy ecified by the World Bank. i[This confirms ihat the Recipiont is authorizing such persons to accept Secure IdentIication Credentials (SID:-) and :0 deliver the Applications and supporting documents to lnstru :ion to the Recipient when sendiig this leti -r to the World Bank: Stipulate if more than one person needs to sign Applications, and how many or which positions, at d if any thresholds apply. Please delete this footnote in final letter that is sent to the Irld Bank 2 Instnction to the Recipient: Stipulate i *more thE n one person needs to jointly sign Applications, if so, please indicate the actual number. Please delete this footnote infinl letter ti at is sent to the World Bank Instriction to the Recipient: Use this b ack,t if a iy one of the authorized persons may sign; if this is not applicable, please delete. Please delete this footn 9te in finc (let er th t is sent to the World Bank 4 Instruction to the Recipient: Use this b ack:t onl i if several individuals must jointly sign each Application; if this is not applicable, please delete. flea.e delete t£isjotnc e in final letter that is sent to the World Bank. Instnition to the Recipient: Add this :)ara Yraph if the Recipient wishes to authorize the listed persons to accept Secure Identfication Credentials and to deliver ii.ppl catio is by electronic means; if this is not applicable, please delete the paragraph. Please delete this footnote infiial letter hat is ser t to the World Bank the World Bank by electronic means. In full recognition that the World Bank shall rely upon such representations and warranties, including without limitation, the representations and warranties contained in the 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 World Bank that it will cause such persons to abide by those terms and conditions.] This Authorization replaces and supersedes any Authorization currently in the World Bank records with respect to this Agreement. [Name], [position] Specimen Signature: [Name], [position] Specimen Signature: [Name), [position] Specimen Signature: Yours truly, / signed / [Position] Attachment (3) Terms and Condi tio is o Use of Secure Identification Credentials in con iection with Use of Electronic Means to I Process Applications ane Su-)porting Documentation March 1, 2013 The World Bank (Bank)' will pro, ide secure identification credentials (SIDC) to permit the BorroNver2 to deliver applicatior s for w thdrawal and applications for special commitments under the Agreement(s) and supportin; docur ientation (such applications and supporting docunm entation together referrec to in th tese Terms and Conditions of Use as Applications) to the Bank c.ectronically, on the terrr s a -d c )nditions of use specified herein. SIDC :an be either: (a) hardwai etasec (Physical Token), or (b) software-based (Soft Token). The Bank reserves the right to c etermini.e which type of SIDC is most appropriate. A. IdentificatioO of Users. 1. The Borrower will be required to i entify in a completed Authorized Signatory Letter (ASL) duly delivered to and re:eived by the Bank each person who will be authorized to deliver Applications. The Bank wi .1 pr,)vide SIDC 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 au hor zed by the Borrower to act as a Signatory. 2. Each Signatory mus, register as a tser on the Bank's Client Connection (CC) website (https://clientcorLnectiori.worldhank.org) prior to receipt of his/her SIDC. Registration on CC will require that the Signat iry 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 fo rm. Upon registration as a CC user, the Signatory will be assigned a unique ident.fying account name. B. Initialization of SIDC. 1. Prior to initialization of SI3C *y a Signatory, the Signatory will acknowledge having read, understood and alrec d to be bound by these Terms and Conditions of Use. 1"Bank" includes IBRI) and IDA. 2 "Borower" includes the borrower of an IBF D loan, IDA credit, or Project Preparation Facility advance and the recipient of a grant. 2. Where a Physical Token is to be used, promptly upon receipt of the Physical Token, the Signatory will access CC using his/her account name and CC Password and register his/her Physical Token and set a personal identification number (PIN) to be used in connection with the use of his/her Physical Token, after which the Physical Token will be initialized for use by the Signatory exclusively for purposes of delivering Applications. Where a Soft Token is to be used, the Signatory will access CC using his/her account name and CC Password and set a personal identification number (PIN) to be used in connection with the use of his/her Soft Token, after which the Soft Token will be initialized for use by the Signatory exclusively for purposes of delivering Applications. Upon initialization of the SIDC, the Signatory will be a "SIDC User". The Bank will maintain in its database a user account (Account) for each SIDC User for purposes of managing the SIDC of the SIDC User. Neither the Borrower nor the SIDC User will have any access to the Account. 3. Prior to first use of the SIDC by the SIDC User, the Borrower shall ensure that the SIDC User has received training materials provided by the Bank in use of the SIDC. C. Use of SIDC. 1. Use of the SIDC is strictly limited to use in the delivery of Applications by the SIDC User in the manner prescribed by the Bank in the Agreement(s) and these Terms and Conditions. Any other use of the SIDC is prohibited. 2. The Bank assumes no responsibility or liability whatsoever for any misuse of the SIDC by the SIDC User, other representatives of the Borrower, or third parties. 3. The Borrower undertakes to ensure, and represents and warrants to the Bank (such representation and warranty being expressly relied upon by the Bank in granting SIDC) that each SIDC User understands and will abide by, these Terms and Conditions of Use, including without limitation the following: 4. Security 4.1. The SIDC User shall not reveal his/her PIN to anyone or store or record the PIN in written or other form. 4.2. The SIDC User shall not allow anyone else to utilize his/her SIDC to deliver an Application to the Bank. 4.3. The SIDC 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 SIDC User believes a third party has learned his/her PIN or has lost his/her Physical Token he/she shall immediately notify clientconnection@worldbank.ore. 2. Where a Physical Token s to be used, promptly upon receipt of the Physical Token, the ignatory will access CC using [ is/her account name and CC Password and register is/her Physical Token arid set a personal identification number (PIN) to be used in connection with tEe use of hi s/he r Physical Token, after which the Physical Token will be initialized for use by the Signato -y exclusively for purposes of delivering Applications. Where a Soft Token is to be usec, the Signatory will access CC using his/her account :iame and CC Password a ad set - personal identification number (PIN) to be used in onnection with tEe use of h' s/he r Soft Token, after which the Soft Token will be iitialized for use by the Signato -y exclusively for purposes of delivering Applications. Jpon initialization of the SIDC, :he Signatory will be a "SIDC User". The Bank will iaintain in its database a user ac -ount (Account) for each SIDC User for purposes of ,anaging the $IDC of th. S DC User. Neither the Borrower nor the SIDC User will -^ave any access to the Account. 3. [rior to first use of the SI DC by he SIDC User, the Borrower shall ensure that the SIDC User has received training mater als provided by the Bank in use of the SIDC. C. Use of SIDC. 1. Use of the SIDC i 3 strictly' li mite d to use in the delivery of Applications by the SIDC User in the manner presc: ilx d b the Bank in the Agreement(s) and these Terms and Conditions. Any other u;e cf thc SIDC is prohibited. 2. The Bank assumes no res poiLsibi lity or liability whatsoever for any misuse of the SIDC by the SIDC User, other represelttatives of the Borrower, or third parties. 3. The Borrower unc.ertakes to ensi ire, and represents and warrants to the Bank (such representation and. warranty being expressly relied upon by the Bank in granting SIDC) that each SIDC User unJertandis and will abide by, these Terms and Conditions of Use, including without limitat on the 'ollowing: 4. 5,curity A.1. The SIDC User shall iot r veal his/her PIN to anyone or store or record the PIN in %w. ritten or other form. 4.2. The SIDC User shall not llow anyone else to utilize his/her SIDC to deliver an Application to the Bank. z.3. The SIDC User shall always logout from CC when not using the system. Failure to logout properly cEn creati, a rout,. into the system that is unprotected. 4.4. If the SIDC User believes a third party has learned his/her PIN or has lost his/her Physical Token he/she s[ all imn ediately notify clientconnection@worldbank.org. 8 4.5. The Borrower shall irmeliately notify the Bank at Iientconnection(bworldlark.or,- of any lost, stolen or compromised SIDC, and take other reasonable steps to en:;ure such SIDC are disabled immediately. 5. Reservation of R,ght to .Dis able SIDC 5.1. The Borrower sha 1 rsen e the right to revoke the authorization of a SIDC User to use a SIDC for any reason. 5.2. The Bank reserve!s th- rig ht, in its sole discretion, to temporarily or permanently cisable a SIDC, de-activ:ite a SI DC User's Account or both. 6. Care of Physical Token, 6.1. Physical Tzkens will remain the property of the Bank. 6.2. The Bank will ph,,sic ally deliver a Physical Token to each Signatory designated to ieceive one in a manner to be di termined by and satisfactory to the Bank. 6.3. Physical Tokens conlain Jelicate and sophisticated instrumentation and therefore should be handled with due car, and should not be immersed in liquids, exposed to extreme tempera:.ures, c:vshied ,r bent. Also, Physical Tokens should be kept more than yive (5) cm from device:: that generate electromagnetic radiation (EMR), such as mobile phones, phone-enabled PDAs, , mart phones and other similar devices. Physical Tokens should be carriec. and stored separate from any EMR device. At close range (less than 5 cm), these devices can c utr ut h gh levels of EMR that can interfere with the proper operation of electronic cqu- pm nt, including the Physical Token. 6.4. Without derogating from these Terms and Conditions of Use, other technical nstructions on the prop .r tse a ad care of Physical Tokens are available at ittp://www.rsa.com. 7. Replacement 7.1. Lost, damaged, com,ronmised (in terms of 4.5, above) or destroyed Physical Tokens will be replaced at the oxpense of the Borrower. 7.2. The Bank reserves the ri )ht, in its sole discretion, not to replace any Physical Token in the case of mi;use, or not to reactivate a SIDC User's Account. Attachment 5 Payments Made during Reporting Period Against Contracts Subject to the Bank's Prior Review Date of WB's Share of WB's Non Amount Paid to Amt Paid to Contract Contract Contract Objection Supplier during Supplier during Number Supplier Date Amount to Contract Period Period Attachment 5 Paymenis Made during Reporting Period Against Coiitricts Subject to the Bank's Prior Review I IS IPei I1 qr 73 Vo4,. e OI &&/기 , Attachment 6 DESIGNATED ACCOI. NT RECONCILIATION STATEMENT LOAN/CREDIT/PPFXOFINAN:AE NU OBER i CCOUNT NUM13ER N lITH (BANK) 1. TOYAL ADVANCED BYWORLP BA NK (:)R COFINANCIER) 2 1,13S: TOTAL AMOUNT RECOVER -,D B (WORLD BANK $ 3. EQLJALS PRESENT OUTSTANDI NG AMC UNT ADVANCED TO TI IE SPECIAL ACCOU , T (NUM ER I LE SS NUMBER 2) $ 4. B,'%L.ANCE OF SPECIAL ACCOU'4T PER iXTACHED BANK S- TEMENT AS OF DA TE 5. PI, S: TOTAL AMOUN r CLAIMED IN TI IIS APPLICATIONNO. + S 6. PI, i S: TOTAL AMOUN T WITHI 1RA WN ,ND NOT YET CLAIMED RI A,SON: + $ 7. PI, - S: AMOUNTS CLA MED IN PRI VIO JS APPLICATIONS Ni: TYET CREDITED AT DATE OFI !AN STATEMENTS APPLICATION NO. AMOUNT* SUBTOTAL DF PRENv IOL S APPLICATIONS NOT YE T C: EDI rED + S 8. MI\US: INTERESTEARNED - $ 9. To] AL ADVANCE ACCOUNTED FOR (N D. 4 THROUGH NO. 9) = $ 10. E.XPLANATION OF ANY DIFFEFEN E B ITWEEN THE TOTALS APPEARING ON LINES 3 AND 9: 11. D,ATE: SIGNATURE: TITLE: y j j Attachment 4 STATEMENT OF EXPENDITURE (SOE) FORM 3A Payments made during the period from To Date: For: Expenditures other than those under contracts below SOE documentation thresholds - please refer to the Disbursement for the SOE Thresholds (supporting documentation required - Invoices, receipts for all paymenst made under contracts above SOE thresholds) Application No.: IDA Credit No.: SOE Sheet No.: 1 2 3 4 5 6 7 8 9 10 11 12 13 oName of a urnyadUS$ Eqiuivalen o Naamoun covered 4!5 Curnc n 0 Supplier,Contractor or Total Amount of Contract Brief Description of Goods, Works or i Total thi 2 rencb an paid fromRemarks Z pai bythselgblomon a. eak Consultant, Contract (Include all currencies) Services appictis n elid (7)8 Desginated R aplctin(e paid (7)x(8) Degnae reference and date. J U net Account 2 TOlTALS1 S Note: () items snouid De grouped by ninsuiy, , a sepat SOF f y he ,,sed for each catetorv. (**) If this application is not for replenishment of the Designated Account, leave columns 10 and 12 blank. �_, `�*f Э � � г' г ! � i� и � � � �, i `t \ �. Г �` � Attachment 4 STATEMENT OF EXPENDITURE (SOE) FORM 3B Payments made during the period from To Date: For: Expenditures under contracts below SOE documentation thresholds - please refer to the Disbursement Letter for SOE thresholds (no supporting documentation required) Application No.: IDA Credit No.: SOE Sheet No.: 1 2 3 4 5 6 7 8 9 10 11 12 13 Total invoice Name of 0 '0 US$ Equivalent 6 z amount covered s Currency and Supplier,Contractor or Total Amount ofContract Brief Description of Goods, Works or ';a paid from by this eligible amount Remarks E Consultant, Contract (Include all currencies) Services Desginated application (net '7p paid (7)x(8) reference and date Account- U of retention) UJ TnTATS, Supporting documents for this SOE retained at: iNote: a-'. : c g7':;UpCj - " =Cgccry; cr -p-ntp SOF fnrrn mav be used for each category. If this application is not for replenishment of the Designated Account, leave columns 10 and 12 blank. k