The World Bank 1818 H Strept N.W. (202) 473-1000 INTERNATIONAL BANK FOR RECONSTRUCTION AND DFVF OPMFNT Wahnt D.C. 20433 Cable Address: INTBAFRAD INTERNATIONAL DEVELOPMENT ASSOCIATION U.S.A. Cable Address: INDEVAS April 3, 2013 H. E. Ato Sufian Ahmed Minister of Finance and Economic Development Ministry of Finance and Economic Development Addis Ababa Federal Democratic Republic of Ethiopia Re: Federal Democratic Republic of Ethiopia: IDF Grant for Strengthening Capacity for Mobilizing and Engaging the Ethiopian Diaspora Project IDF Grant No. TF098159 Additional Instructions: Disbursement Letter Second Restatement I refer to the Letter Agreement ("Agreement") between the International Bank for Reconstruction and Development ("World Bank"), and the Federal Republic of Ethiopia ("Recipient") for the above- referenced project, dated March 23, 2011. The Agreement provides that the World Bank may issue additional instructions regarding the withdrawal of the proceeds of Grant No. TF098159 ("Grant"). This letter ("Disbursement Letter"), as revised from time to time, constitutes the additional instructions. This Disbursement Letter is a Second Restatement of the Disbursement Letter dated March 23, 2011 for the above referenced project restating Section 11(ii) to change the address where applications for withdrawal should be sent, and Section 1(vi) to increase the advances ceiling to USD 250,000. All other provisions of the Disbursement Letter dated March 23, 2011, except as amended, shall remain in force and effect. 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. 1. Disbursement Arrangements (i) Disbursement Methods (section 2). The following Disbursement Methods may be used under the Grant: * Reimbursement * Advance * Direct Payment * Special Commitment 1 (ii) Disbursement Deadline Date (subsection 3.7). The Disbursement Deadline Date is four months after the Closing Date specified in the Grant Agreement. Any changes to this date will be notified by the World Bank. (iii) Disbursement Conditions (subsection 3.8). Please refer to the Withdrawal Condition(s) in the Grant Agreement. 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 P. O. Box 5515 Addis Ababa, Ethiopia Attention: Mr.Guang Zhe Chen, Country Director (ii) Applications (subsections 3.2). 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 Kenya Re Towers, 10th Floor Upper Hill, off Ragati Road Nairobi, Kenya 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 devices ("Tokens") 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 Tokens 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 Tokens to Process Applications. By designating officials to accept Tokens 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 Devices in connection with Use of Electronic Means to Process Applications and Supporting Documentation ("Terms and Conditions of Use of Tokens") provided in Attachment 5; and (b) to deliver the Terms and Conditions of Use of Tokens to each such official and to cause such official to abide by those terms and conditions. 2 (v) Minimum Value of Applications (subsection 3.5). The Minimum Value of Applications is United States Dollars 10,000. (vi) Advances (sections 5 and 6). * Type of Designated Account (subsection 5.3): Segregated * Currency of Designated Account (subsection 5.4). United States Dollars * Financial Institution at which the Designated Account Will Be Opened (subsection 5.5). National Bank of Ethiopia * Ceiling (subsection 6.1) United States Dollars 250,000 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 List of payments against contracts that are subject to the World Bank's prior review, in the form attached (Attachment 4); o Records evidencing eligible expenditures (Attachment 3A - Statement of Expenditure - with supporting documentation, e.g. copies of receipts, supplier invoices, for payments made under contracts above SOE documentation thresholds - (i) Consulting Firms against contracts valued at USD 100,000 equivalent or more; (ii) Individual Consultants against contracts valued at USD 50,000 equivalent or more; (iii) Goods against contracts valued at USD 200,000 or more; o Statement of Expenditure in the form attached (Attachment 3B - Statement of Expenditure - with no supporting documentation, for payments made under all other contracts, that is below the SOE documentation thresholds and for Training and Workshops. o A Designated Account activity reconciliation statement and Bank Statement should be submitted with each withdrawal application reporting on the use of Credit proceeds from the Designated Account. * 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 Important Information 3 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 affected. For more information about the website and registration arrangements, please contact the World Bank by email at clientconnection@worldbank.org. If you have any queries in relation to the above, please contact LOA-TF by sending an email to loa-tfgworldbank.org and using the trust fund number as a reference. Yours sincerely, Vidya Narasimhan Finance Officer Attachments are as previously provided in the original disbursement letter of March 23, 2011. Cc with copies: H. E. Ato Tewodros Adhanom Deputy Prime Minister and Minister of Foreign Affairs Ministry of Foreign Affairs Addis Ababa Federal Democratic Republic of Ethiopia 4