OFFICIAL DOCUMENTS The World Bank 1818 H Street N.W. (202) 473-1000 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Washington, D.C. 20433 Cable Address: INTBAFRAD INTERNATIONAL DEVELOPMENT ASSOCIATION U.S.A. Cable Address: INDEVAS H.E. Domitien Ndihokubwayo Minister of Finance, Budget and Privatization Ministry of Finance, Budget and Privatization P.O. BOX 1830 Bujumbura Republic of Burundi Republic of Burundi: IDA Grant No. D154-BI Social Safety Nets Project (Merankabandi) Additional Instructions: Disbursement Letter Excellency: I refer to the Grant Agreement ("Agreement") between the International Development Association ("Association"), and the Republic of Burundi (the "Recipient"), of even date herewith for the above-referenced project ("the Agreement"). The Agreement provides that the World Bank may issue additional instructions regarding the withdrawal of the proceeds of IDA Grant No. DI54-BI ("Grant"). This letter ("Disbursement Letter"), as revised from time to time, constitutes the additional instructions. The attached World Bank Disbursement Guidelines for Projects, dated May 1, 2006, ("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 4 months after the Closing Date specified in the Grant Agreement. Any changes to this date will be notified by the Association. II. Withdrawal of Grant Proceeds (i) Authorized Signatures (subsection 3.1). -2- 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: Banque Mondiale Avenue de l'Aviation Boite Postale 2637 Bujumbura, Burundi Attention: Ms. Bella Bird, Country Director for Burundi (ii) Applications (subsections 3.2 - 3.3). Please provide completed and signed (a) applications for withdrawal (Attachment 3), together with supporting documents required, to the address indicated below: The World Bank Financial Operations Department 13th Floor Delta Centre Menengai Road, Upper Hill P.O. Box 305577-00100 Nairobi, Kenya Tel +254 20 2936000 (iii) Electronic Delivery (subsection 3.4) The Recipient may deliver Applications to the Association through the Association's Client Connection, web-based portal, by completing Form 2380, which is accessible through Client Connection (http://clientconnection.worldbank.or). Officials of the Recipient may deliver Applications electronically on behalf of the Recipient if they: (a) have been designated in writing by the Recipient, pursuant to the terms of subparagraph (i) of this Section, to sign and deliver Applications by electronic means and to receive secure identification devices ("Tokens") from the Association, (b) are registered as users of Client Connection, and (c) have received from the Association Tokens for such purpose. This constitutes an additional means of delivering Applications to the Association. The Recipient may continue to exercise the option of preparing and delivering Applications in paper format. The Association 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 Tokens to Process Applications. By designating authorized signatories to accept Tokens and by choosing to deliver the Applications electronically, the Recipient confirms its agreement to abide by and to cause the authorized signatories to abide by the Terms and Conditions of Use of Secure Identfication Device in connection with Use of Electronic Means to Process Applications for Withdrawal and Supporting Documentation ("Terms and Conditions of Use of Tokens") provided in Attachment 2. The Recipient also represents and warrants to the Association (and such representations and warranties, including without limitation, the representations and warranties contained in the Terms and Conditions of Use of Tokens, shall be relied upon by the Association) that the Recipient shall deliver the Terms and Conditions of Use of Tokens to each authorized signatory and shall cause each authorized signatory to be bound by those terms and conditions. (v) Minimum Value ofApplications (subsection 3.5). The Minimum Value of Applications is USD 200,000. (vi) Advances (sections 5 and 6): * Type of Designated Account (subsection 5.3): Two Segregated DA-A: Cash Transfers under category 1 (a) and 1(b) -3- DA-B: Eligible Expenditures under category 2. * Currency of Designated Account (subsection 5.4): US Dollars * Financial Institution at which the Designated Account Will Be Opened (subsection 5.5): Banque de la Rdpublique du Burundi * Ceiling (subsection 6.1): CD-A: USD 1, 600,000 CD-B : USD 1, 000,000 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 and for reporting eligible expenditures paid from the Designated Account o Statement of Expenditure in the form attached (Attachment 4) o List of payments against contracts that are subject to the Association's prior review, in the form attached (Attachment 5) o Customized Statement of expenditures (Attachment 6) * 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): Monthly IV. Other Disbursement Information Funds from the Designated Accounts may be transferred to Transaction Accounts (In a Commercial Bank Acceptable to the Association) in local currency to meet eligible expenditures, provided that transactions and balance in this account are included in all project financial reports and in the Designated Account reconciliation (Attachment 7). All other supporting documentation and records of expenses must be stored by the Project Implementation team or the Beneficiary and made available for review by World Bank Group missions and external and internal auditors. V. Other Important Information For additional information on disbursement arrangements, please refer to the Disbursement Handbook available on the Association's public website at http://www.worldbank.org and its secure website "Client Connection" at http://clientconnection.worldbank.org. Print copies are available upon request. From the Client Connection website, you will be able to prepare and deliver Applications, monitor the near real-time status of the Grant, and retrieve related policy, financial, and procurement information. -4- If you have not already done so, the Association recommends that you register as a user of the Client Connection website (http://clientconnection.worldbank.org). From this website you will be able to prepare and deliver 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, please contact the Association by email at . If you have any queries in relation to the above, please contact Issa Thiam, Finance Office at WFALD-AFR@worldbank.org using the above reference. Yours sincerely, Nestor Coffi Country Manager for Burundi Africa Region Attachments 1. World Bank Disbursement Guidelines for Projects, dated May 1, 2006 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 Expenditures 5. Form of Payments Against Contracts Subject to the World Bank's Prior Review 6. Customized Statement of Expenditures 7. Designated account reconciliation CC: Michel Nyabenda, Permanent Executive Secretary, CNPS nvabendamicAgmail.com -5- Attachment 2 Form of Authorized Signatory Letter [Letterhead] Ministry of Finance [Street address] [City] [Country] The World Bank [DATE] 1818 H Street, N.W. Washington, D.C. 20433 United States of America Attention: Mr. Nestor Coffi Republic of Burundi: IDA Grant No. D154-BI Social Safety Nets Project (Merankabandi) Additional Instructions: Disbursement Letter I refer to the Grant Agreement ("Agreement") between the International Development Association (the "Association") and the Republic of Burundi (the "Recipient") dated_, providing the above Grant. 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. 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 '[individually] "[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 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. 5 Instruction to the Recipient: Add this paragraph if the Recipient wishes to authorize the listed persons to accept Secure Identification 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 Association. -6- 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 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] 7 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. '"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. 8 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.org. 4.5. The Borrower shall immediately notify the Bank at clientconnection@iworldbank.org of any lost, stolen or compromised SIDC, and take other reasonable steps to ensure such SIDC are disabled immediately. 9 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. 10 Attachment 4 Payments made during the period from to Date: Application No.: For expenditures against the contracts not subject to the Bank Prior Review Loan: SOE No.: 1 2 3 4 5 6 7 8 9 Item Category Currency and Total Currency and Eligible % Amount Currency and Exchange Rate Remarks No. No. (**) Amount of Contract Total Amount of from Schedule Eligible for Amount Paid from (Col. 7 divided by Invoice Covered I of Financing (4 Special Account (if Col. 6) by Application Loan/Credit x 5) Applicable) (Net of Retention) Agreement TOTALS. Supporting documents for this SOE retained at (insert location) (*) A separate SOE form should be used for retroactive financing (**) Items should be grouped by category; or alternatively, a separate SOE form may be used for each category 11 Attachment 5 Payments Made during Reporting Period Against Contracts Subject to the Bank's Prior Review Dateof ',W I Nena 12 Attachment 6 The World Bank APPLICATION FOR WITHDRAWAL Data CUSTOMIZED STATEMENT OF EXPENDITURES3 (SOE) Category No. 1 2 3 4 5 6 7 8 90 Amount Amou Paid Name and Number nt E 2 Address of Eligible Amount Tt Eligibl E per Amount tb Designa 9 a Payment Beneficiary e fora Beneficiary Paid 1 ted - Agency Households Financ Account ing (if any) TOTALS Certification The Recipient hereby certifies that the Beneficiaries paid were selected in line with the Procedures and Eligibility Criteria specified in the in Section I.C.1 of Schedule 2 to the Agreement Name and Title of Authorized Representative 3 Supporting documents for this SOE retained at:(insert location) 13 Attachment 7 DESIGNATED ACCOUNT RECONCILIATION STATEMENT LOAN/CREDIT/PPF/COFINANCIER NUMBER ACCOUNT NUMBER WITH (BANK) 1. TOTAL ADVANCED BY WORLD BANK (OR COFINANCIER) $ 2 LESS: TOTAL AMOUNT RECOVERED BY WORLD BANK - $ 3. EQUALS PRESENT OUTSTANDING AMOUNT ADVANCED TO THE SPECIAL ACCOUNT (NUMBER 1 LESS NUMBER 2) = $ 4. BALANCE OF SPECIAL ACCOUNT PER ATTACHED BANK STATEMENT AS OF DATE $ 5. PLUS: TOTAL AMOUNT CLAIMED IN THIS APPLICATION NO. +$ * 6. PLUS: TOTAL AMOUNT WITHDRAWN AND NOT YET CLAIMED REASON: +$ * 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 + $ 8. MINUS: INTEREST EARNED - $ * 9. TOTAL ADVANCE ACCOUNTED FOR (NO. 4 THROUGH NO. 9) = $ 10. EXPLANATION OF ANY DIFFERENCE BETWEEN THE TOTALS APPEARING ON LINES 3 AND 9: 11. DATE: SIGNATURE: TITLE: