THE WORLD BANK IBRD * IDA I WORLD BANKGROUP Ousmane Dione Country Director for Vietnam East Asia and Pacific Region O FFICIAL H.E. L8 Minh Hung DOCUMENTS July 13, 2018 Governor State Bank of Vietnam 49 Lf Thai T6 HA N6i Socialist Republic of Vietnam Excellency: Re: GFDRR Grant No. TF A5606 (Vietnam: Emergency Flood Disaster Reconstruction Project) Additional Instructions: Disbursement I refer to the Letter Agreement ("Agreement") between the Socialist Republic of Vietnam ("Recipient") and the International Bank for Reconstruction and Development/International Development Association ("World Bank"), acting as administrator of grant funds provided by various donors under the Global Facility for Disaster Risk Reduction and Recovery trust fund, for the above-referenced project, dated November 13, 2017. The Agreement provides that the World Bank may issue additional instructions regarding the withdrawal of the proceeds of GFDRR Grant TF A5606-VN ("Grant"). This letter ("Disbursement Letter"), as revised from time to time, constitutes the additional instructions and supersedes the Disbursement Letter issued on November 13, 2017. The revision in this Disbursement Letter pertains to the reduction in Disbursement Deadline Date (DDD) from four (4) months to three (3) months to give sufficient time for accounting activities before the Donor End Disbursement Date. The attached Disbursement Guidelines for Investment Project Financing, dated February 2017, ("Disbursement Guidelines") (Attachment 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 subsections in parentheses below refer to the relevant sections and subsections in the Disbursement Guidelines and, unless otherwise defined in this letter, the capitalized terms used have the meanings ascribed to them in the Disbursement Guidelines. I. Disbursement Arrangements (i) Disbursement Methods (section 2). The following Disbursement Methods may be used under the Grant: * Reimbursement * Advance * Direct Payment * Special Commitment (ii) Disbursement Deadline Date (subsection 3.7). The Disbursement Deadline Date is three (3) months after the Closing Date specified in the Grant Agreement. Any changes to this date will be notified by the World Bank. II. Withdrawal of Grant Proceeds (i) Authorized Signatures (subsection 3.1). A letter in the Form attached (Attachment 2) should be furnished to the World Bank at the address indicated below providing the name(s) and specimen signature(s) of the official(s) authorized to sign Applications: The World Bank 8th Floor 63 L9 Thai T6 HA N6i, Vietnam Attention: Country Director (ii) Applications (subsections 3.2 - 3.3). Please provide completed and signed (a) applications for withdrawal, together with supporting documents, and (b) applications for special commitments, together with a copy of the commercial bank letter of credit, to the address indicated below: The World Bank 26th Floor, One Global Place 5th Avenue Corner 25th Street Bonifacio Global City Taguig City, Philippines 1634 Attention: Loan Department (iii) Electronic Delivery (subsection 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-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, pursuant to the terms of subparagraph (i) of this Section, its officials who are authorized to sign and deliver Applications and to receive secure identification credentials ("SIDC") from the World Bank 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. If the World Bank agrees, the World Bank will provide the Recipient with SIDC for the designated officials. Following which, the designated officials may deliver Applications electronically by completing Form 2380, which is accessible through Client Connection (https://clientconnection.worldbank.org). The Recipient may continue to exercise the option of preparing and delivering Applications 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 SIDC to Process Applications. 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 ("Terms and Conditions of Use of SIDC") provided in Attachment 3; and (b) to cause such official to abide by those terms and conditions. (v) Minimum Value of Applications (subsection 3.5). The Minimum Value of Applications for Reimbursement, Direct Payment and Special Commitment is United States Dollars (US$) 25,000 equivalent. (vi) Advances (sections 5 and 6). * Type of Designated Account (subsection 5.3): Segregated. One (1) segregated designated account will be established for the Project and managed by the Ministry of Agriculture and Rural Development. * Currency ofDesignated Account (subsection 5.4): USD (United States Dollars). * Financial Institution at which the Designated Account Will Be Opened (subsection 5.5): A commercial bank / financial institution acceptable to the World Bank. * Ceiling (subsection 6.1): Variable, based on forecast of one (1) quarter of approved annual financing plan in the form attached (attachment 5). III. Reporting on Use of Grant Proceeds (i) Supporting Documentation (section 4). Supporting documentation should be provided with each application for withdrawal as set out below: * For requests for Reimbursement: o Statement of Expenditures in the form attached (Attachment 4). * For reporting eligible expenditures paid from the Designated Account: o Statement of Expenditures in the form attached (Attachment 4); o Cash Forecast Statement in the form attached (Attachment 5); and o Designated Account Reconciliation Statement in the form attached (attachment 6) with bank statement * For requests for Direct Payment: Records evidencing eligible expenditures, e.g., copies of receipts, supplier invoices. (ii) Frequency of Reporting Eligible Expenditures Paid from the Designated Account (subsection 6.3): Quarterly or more frequent if necessary. IV. Other Important Information For additional information on disbursement arrangements, please refer to the Disbursement Handbook available on the World Bank's public website at https://www.worldbank.org and its secure website "Client Connection" at https://clientconnection.worldbank.org. Print copies are available upon request. If you have not already done so, the World Bank recommends that you register as a user of the Client Connection website (https://clientconnection.worldbank.org). From this website you will be able to download Applications, monitor the near real-time status of the Grant, and retrieve related policy, financial, and procurement information. All Recipient officials authorized to sign and deliver Applications by electronic means are required to register with Client Connection before electronic delivery can be effected. For more information about the website and registration arrangements, please contact the World Bank by email at . If you have any queries in relation to the above, please contact us at wfaln-manila@worldbank.org using the above Project name and GFDRR Grant No. TF A5606 as a reference in the subject line. Yours, Ousmane Dione Country Director, Vietnam East Asia and Pacific Region Attachments 1. Disbursement Guidelines for Investment Project Financing, dated February 2017 2. Form for Authorized Signatures 3. Terms and Conditions of Use ofSecure Identification Credentials in connection with Use of Electronic Means to Process Applications and Supporting Documentation, dated March 1, 2013 4. Form of Statement of Expenditure 5. Cash Forecast Statement 6. Form of Designated Account Reconciliation Statement Cc with copies: PMU of the Project for Emergency Reservoir Operation and Effective Flood Management Using Water related Disaster Management Information System Building A4, #2 Ngoc Ha, Hanoi, Vietnam Mr. Nguyen D(rc Quang, PMU Director Email address: ndquang64@yahoo.com Attachment 1 Disbursement Guidelines for Investment Project Financing February 2017 k pWORLDBANKGROUP CONTENTS 1. rps 1 2. Disbsem nt Metods 1 3. Wihdrawal of Fuds from Fman~ung Accout 2 4. Supp~rdag Documetadon Requiremts 3 5. Deignated Accounts 4 6. Terms and Coadideus Appicable to Advances 6 7. In~li'b Expeqdure 7 8. Re~nds 8 wa~ lit * ~ LE I. ~k* M, ji 1frIII~ h ~' ~IiM Iril ii,? I liii I, ;&. liii 'b II I.' h 1Iii Ii III [cli II! 1131 ii iIi~ i Iti I Pil Ii R 4.2 For speCal MIE d commuraul bank pwides its cmr tim dirctly to Ihe Wodd Bank dhat co mtinn for the rekase of pa~ynte ceom~ fr witd~nsal have been mE 4.3 rip@s of Suppning Doummma toL The Worl Buaegwres eihr copes of du neiginea I mnse e nidmÉing cigiul elendies (Rcors) ar n ry repts of ,eswndikve (Sen ry Reports) in such f and im i e u he Wodd B~ my secify. Recouf indcude m uch docnmE t s noices md receiptL A 8...ury Report may be eithr (a) Ihe i~i uamdited fl~nr rpot reqied mder th F rmming Agseement (Il~ Fiuninal Repet) ar (b) a stn of øpe~dit-e n-uing de~ epdties p duing a sta~ed period (Statemu of Empeain~) In an cese. d bomnr is resposible fmr vetaimg the nom~n dcumzds eviemm eigibk ezpi m"'es andmrig them avuile for mudit or ispectiet 4.4 The Wdd Bank deamæs the types of supporag meomeain hat the bmowr ~mst p~ovide, t~kgoito consideun the d&sbrmse mn ued. The spporting doientin maybe de folo~ag (a) For qhpNedins for Raimbursemfr (i) I.mim Fømia R~ports, (u) Staten~ts ofExpea~, ar (iii) Records (b) For reprdng ~ r use *f.-dtwnces: (i) i~mim FsanrieW Rep~ts, (ai) Se~s ofExpenditue, or (iii) Rcords (c) For Wpcadn for Di~ec Pspents: (i) Rec~ik sch as cnpes of sulr avoie; (ii) a book gæunee for advac ar na~nei pa~ymet (d) For ApPfiAtns for rcisl Cammd~ment Copy of the Ttr of Crrdit (jith vali ezpiry date) that the enunweial bnk knowm as the opesuig bk, has issed. For paym, a SWIFT (Society far Wor~dede lutetbak Teoamen mictin) message ms be sm by du e m=iul bk nd (e) Any o~hr suppoung docanm~tio that the W~dd Bank my eg~st by tice to the borower as specified ithe Disbrumengr Ieter. 4.5 Fauure tø Phoi 4de df Fnacidd Stamw ts If the boow faih to prde any afthe mudi nd nitak =us regend in acconhanc mith, ad wii h peuiod af ti speedd in. the Finming Agreem~t de Wodd B ay, at s duretiom , decide n=t to accept appicatios fx wihdrawal supported by Sommry Rports, if snch reports m moencmid by Records. 5. Desipated Accounts 4 у1�Ё9� :р1 Х:' � i�? 'Бр8Аg�г°в �1 з I b а в х 1i i В i Э �,�gt{� b6iг �� gj} ёt�� 7g;pE���k`� j:#� �; iI }I�б4� +�а �1�� '° а,�ВΡ �g;дl�tjp '�g� }1� � 9i}'�� l�i' Ь�� �� �у1 ��Э'"�"1д'� �g; I'у f.. g�рΡ���3и D�Ea ��в �у ��� �а�����+� ��Б ��j?�+� �i��1j Э1�д ��� �1 1��F ё(1�jii�il �+� �1°�� i H {� +@ ваg ��9ё�Е �ff�� аЕ� л €Ё@�����в� �j� -е� _ ]у ・貫―--------------(--------------(---- ���� г� ау � ����, � R�a „ ���� � ��� �� � � �.��� �! �� �� ��� �� ' �м �� � R� � tв���° ����R � �в� �рΡуΡ+���� ���� �уΡМ���'���� �� � � !l� д g@�уΡg м'�� $� Жя q�� �� т �5���� �� p �, �. �� � �. �� 1 й'�.�. � �. � � t � �'� R � Я � � g � S �� I � � .� � � � С� ��� � �� � � �� � � �� ����� � � ��R � яЕ �R �,Б �� �� � �� � � �.�agr,L� ���� ��.�� �� R� �� �� п� � � �� мр.�Г 8 � ��i�� .. 8 R, . � �'� � � �.�я��,� � �а.�� ��� �е �� �� � � � � � г�д � ��3• �.�r �� � г� � � � � �� � � ���� R �е �� � �� ' f � �ЕрΡ�� gуΡрΡ �рΡ �� �� �� ~� � �. � ��6t� � I�й�� ��0. �д' �� Я� а� r � � �S� � �й Е�.. �, ��э� ���R� fF� � �� ^s'?г � t� . g gЯ:Е �° � дf� �С��рΡ+� �� . �� В.�� �в�;t �� уу�°� � � �� ����� �8�� ������� ���� $� ���� ���� w " ����� �де�� ���� �,�� �� gа��� 9� � Е� R��� Г t ��.� °Э � � � �я� �, � д R� ���� 8° � � ����.� � � � � .а � �� у��.� ��. � � �� a�g,R �г ����� �Ё г ���� � � ���� �� � � ���� Aftachment 2 Form of Authorized Signatory Letter [Letterhead] Ministry of Finance [Street address] [City] [Country] [DATE] The World Bank 8th Floor 63 Ly Thai To Street Ha Noi, Vietnam Attention: Country Director Dear Country Director: Re: GFDRR Grant No. TF A 5606-VN (Emergency Flood Disaster Reconstruction Project) I refer to the Letter Agreement ("Agreement") between the Socialist Republic of Vietnam ("Recipient") and the International Bank for Reconstruction and Development/ International Development Association ("World Bank")], acting as administrator of grant funds provided by various donors under the Global Facility for Disaster Risk Reduction and Recovery trust fund, dated - , providing the above Grant. For the purposes of Section 3.04 (b) of the Standard 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. For the purpose of delivering Applications to the World Bank, 2[eachl of the persons whose authenticated specimen signatures appears below is authorized on behalf of the Recipient, acting 3[individually] 4bointly], to deliver Applications, and evidence in support thereof on the terms and conditions specified by the World Bank. 5[This confirms that the Recipient is authorizing such persons to accept Secure Identification Credentials (SIDC) and to deliver the Applications and supporting documents to I Instruction to the Recipient when sending this letter to the World Bank: Stipulate if more than one person needs to sign Applications, and how many or which positions, and if any thresholds apply. Please delete thisfootnote infinal letter that is sent to the World Bank 2 Instruction to the Recipient: Stipulate if more than one person needs tojointly sign Applications, if so, please indicate the actual number. Please delete thisfootnote infinal letter that is sent to the World Bank. 3 Instruction to the Recipient: Use this bracket if anyone of the authorized persons may sign; if this is not applicable, please delete. Please delete thisfootnote infinal letter that is sent to the World Bank. 4 Instruction to the Recipient: Use this bracket only ifseveral individuals mustjointly sign each Application; ifthis is not applicable, please delete. Please delete thisfootnote infinal letter that is sent 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] Instruction to the Recipient: Add this paragraph if the Recipient wishes to authorize the listed persons to accept Secure Identfication Credentials and to deliver Applications by electronic means; if this is not applicable, please delete the paragraph. Please delete this footnote in final letter that is sent to the World Bank. Attachment 3 Terms and Conditions of Use of Secure Identification Credentials in connection with Use of Electronic Means to Process Applications and Supporting Documentation March 1, 2013 The World Bank (Bank)' will provide secure identification credentials (SIDC) to permit the Borrower2 to deliver applications for withdrawal and applications for special commitments under the Agreement(s) and supporting documentation (such applications and supporting documentation together referred to in these Terms and Conditions of Use as Applications) to the Bank electronically, on the terms and conditions of use specified herein. SIDC can be either: (a) hardware-based (Physical Token), or (b) software-based (Soft Token). The Bank reserves the right to determine which type of SIDC is most appropriate. A. Identification of Users. 1. The Borrower will be required to identify in a completed Authorized Signatory Letter (ASL) duly delivered to and received by the Bank each person who will be authorized to deliver Applications. The Bank will provide 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 authorized by the Borrower to act as a Signatory. 2. Each Signatory must register as a user on the Bank's Client Connection (CC) website (https://clientconnection.worldbank.org) prior to receipt of his/her SIDC. Registration on CC will require that the Signatory 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 form. Upon registration as a CC user, the Signatory will be assigned a unique identifying account name. B. Initialization of SIDC. 1. Prior to initialization of SIDC by a Signatory, the Signatory will acknowledge having read, understood and agreed to be bound by these Terms and Conditions of Use. 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 "Bank" includes IBRD and IDA. 2 "Borrower" includes the borrower of an IBRD loan, IDA credit, or Project Preparation Facility advance and the recipient of a grant. 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. 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.org. 4.5. The Borrower shall immediately notify the Bank at clientconnectionp_worldbank.org of any lost, stolen or compromised SIDC, and take other reasonable steps to ensure such SIDC are disabled immediately. 5. Reservation of Right to Disable SIDC 5.1. The Borrower shall reserve the right to revoke the authorization of a SIDC User to use a SIDC for any reason. 5.2. The Bank reserves the right, in its sole discretion, to temporarily or permanently disable a SIDC, de-activate a SIDC User's Account or both. 6. Care of Physical Tokens 6.1. Physical Tokens will remain the property of the Bank. 6.2. The Bank will physically deliver a Physical Token to each Signatory designated to receive one in a manner to be determined by and satisfactory to the Bank. 6.3. Physical Tokens contain delicate and sophisticated instrumentation and therefore should be handled with due care, and should not be immersed in liquids, exposed to extreme temperatures, crushed or bent. Also, Physical Tokens should be kept more than five (5) cm from devices that generate electromagnetic radiation (EMR), such as mobile phones, phone-enabled PDAs, smart phones and other similar devices. Physical Tokens should be carried and stored separate from any EMR device. At close range (less than 5 cm), these devices can output high levels of EMR that can interfere with the proper operation of electronic equipment, including the Physical Token. 6.4. Without derogating from these Terms and Conditions of Use, other technical instructions on the proper use and care of Physical Tokens are available at http://www.rsa.com. 7. Replacement 7.1. Lost, damaged, compromised (in terms of 4.5, above) or destroyed Physical Tokens will be replaced at the expense of the Borrower. 7.2. The Bank reserves the right, in its sole discretion, not to replace any Physical Token in the case of misuse, or not to reactivate a SIDC User's Account. Attachment 4 IBRD- Intnational Bank for Reconaruedon and Developiment Staterent of Expendiumres unader Payment made during the period from to Le 4cad~ * ipntions The following expenditures have been incurred during the retroactive financing period (please tick) yes No Category _ The following expenditures have been incurred before the closing date of the loan/credit/grant (please tick) Yes No Page # ISKtilfDsait Accout 1 2 3 4 5 6 7 8 9 10 I' 13 14 15 Contract 9 Contract currency Tal amo Aount Suppers NMe Brief Decripuon of the prieiew (Clet ad aff"M (oiginai% Fine by UWMoEceacpeDew ofWV1111glialcatg ereenm soaemo Conat? ConnecWn 0 *a maeg NMIW paYMent Uly 8*p6at Bank AmIoWn raw ai ielat= t DSM f" Rriol, oa Weimtan) d o alpatel Accoviet (YESorNO) Review Aoceivert coracWs (Col 9 X 10) Clili2 0.00 0.00 TOTAL 0.00 Supporting documents for this SE are retained at (insert location) A separate form should be used for each category Attachment 5 For period from_ DISBURSEMENT FORECAST FOR PAYMENT TO BE PAID FROM to DESIGNATED ACCOUNT Project name: Original forecast: Y/N IDA Credit No.: Forecast number: Item Supplier WB Contract No Package Date of Amount Forecast Remarks No names/Expenditure control and date Association's amount (est. in types (training and No No objection USD equiv.) workshops, sub- (Y/N) grants, IOCs, etc) USD VND Others 1 ABC 123456 xxx xxx 2 xxx xxx 3 xxx xxx 4 xx xxx xxx 5 Total 3 months forecasted amount to be paid by the Association xxx 6 Less: Closing balance of previous quarter which should not be greater than USD 3 Millions xxx * 7 Less: Amount paid but not yet documented at the time of report 8 Amount to be advanced during the next 3 months (8=5-6-7) xxx 9 Amount requested in this application xxx 10 Amount is available to advance under this forecast (10=8-9) xxx** Notes: (*) Bank Statement must be submitted as supporting document (**) This forecast can be used for the next advance but within the same forecast period During forecast period, Project can change the forecast amount if the cash requirement is greater than the initial needs. The same forecast number and period is used. PIU director signature Attachment 6 STATEMENT OF DESIGNATED ACCOUNT RECONCILIATION Used for transaction based disbursement with variable DA ceiling IDA Credit Number Forecast number:_ period from to Account number: Bank name: 1. Cumulative advances to end of current reporting period 2. Less: Cumulative documented to end of last reporting 3. Equals: Present outstanding amount advanced to designated account 4. Balance of Special Account per attached bank statement as of 5. + Total amount claimed in this application ( Application no 6. + Amounts not yet credited to account at date of bank statement from past applications (Enter application numbers below) 7. - Interest earned 8. + Total amount withdrawn and not yet claimed (Enter explanations below) 9. Total Advance accounted for (#s 4 through 8) 10. Difference to be explained 11. Explanation of any difference between the totals appearing on lines 3 and 9 Example First advance for period from _to forecast number: Total Advanced Accounted For 12. Unclaimed amount without explanation 13. Project Supervisor's signature and date FOR INTERNAL DISTRIBUTION ONLY Prepared by: Thao Do (WFALN) Cleared with and bcc: Aristeidis I. Panou / Thu Ha Le (LEGES) Dzung Huy Nguyen (GSU08)