OFFICIAL ' The World Bank 1818 H tren4 (202) 473-1000 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVEL, Washington, D.C20433 Cable Address: INTBAFRAD INTERNATIONAL DEVELOPMENT ASSOCIATION - - ' Cable Address: INDEVAS February 21, 2011 Mr. Bolat Zhamishev Ministry of Finance 11 Pobedy Street Astana 010000 Republic of Kazakhstan Excellency: Re: Republic of Kazakhstan GEF PPG Grant No. TF098891-KZ (Grant for Preparation of Elimination of Persistent Organic Pollutants Waste Project) Additional Instructions: Disbursement I refer to the Letter Agreement ("Agreement") between the International Bank for Reconstruction and Development ("World Bank"), acting as Implementing Agency of the Global Environment Facility ("GEF"), and the Republic of Kazakhstan (the "Recipient") for the above- referenced project, dated February 21, 2011. The Agreement provides that the World Bank may issue additional instructions regarding the withdrawal of the proceeds of Grant No. TF098891- KZ ("Grant"). This letter ("Disbursement Letter"), as revised from time to time, constitutes the additional instructions. The attached World Bank Dshursement 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: * Advance * Direct Payment (ii) Disbursement Deadline Date (s,7bsection 3.7). The Disbursement Deadline Date is 4 months after the Closing Date speci ied 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 Disbursement Condition(s) n the Grant Agreement. -2- H. 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 1818 H Street, N.W. Washington, DC 20433 United States of America Attention: Motoo Konishi, Regional Director Central Asia (ii) Applications (subsections 3.2 - 3.3). Please provide completed and signed applications for withdrawal, together with supporting documents to the address indicated below: The World Bank Radnicka cesi a 80, 9th floor. Zagreb, HR - 10 000, Croatia. Attention: Di;bursement Management Group (iii) Electronic Delivey (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 of icials 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 penanently 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 Terns and Conditions of Use of Secure Identification Devices in connection with Use of Electronic Means io Process Applications and Suppo"ting Documentation ("Terms and Conditions of Use of Tokens") provided in Attachment 3; 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. -3- (v) Minimum Value of Applications (subsection 3.5). The Minimum Value of Applications is USD 20,000. (vi) Advances (sections 5 and 6). * Type of Designated Account (subsection 5.3): Segregated * Currency of Designated Account (subsection 5.4): USD * Financial Institution at Khich the Designated Account Will Be Opened (subsection 5.5): A commercial bank / financial institution acceptable to the World Bank. * Ceiling (subsection 6.1): JSD 50, 000. III. Reporting on Use of Grant Proceeds (i) Supporting Documentation (section 4). Supporting documentation should be provided with each application for withdrawal as Eet out below: * For reporting eligible expenditures paid from the Designated Account: o Statement of Expe-diture in the form attached (Attachment 3) for all expenditures / contracts not subject to the World Bank's prior review; and o List of payments a,ainst contracts that are subject to the World Bank's prior review, in the fort. attached (Attachment 4). * 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 For additional information cn disbursement arrangements, please refer to the Disbursement Handbook available on the World Bank's public website at ittps: www.worldbank.orz and its secure website "Client Connection" at ittps: clientconnection.worldbank.arg. 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 Applizations, 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 -4- 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 the Finance Officer at 'OA service account loa-t '@'viorldink.org using the above reference. Yours sincerely, INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Acting as Implementi-g Agency of the Global Environment Facility By _________ /Motoo Konishi Regional Director Central Asia Attachments 1. World Bank Disbursement Guidelines for Projects, dated May I, 2006 2. Form for Authorized Signatures 3. Terms and Conditions of Use of Secure Identification Devices in connection vith Use of Electronic Means to Process Applications and Supporting Documentation, dated January 20, 2010 4. Sample form of "Statement of Expenditure" 5. Sample form of "Payments Aga nst Contracts Subject to the World Bank's Prior Review" Cc with copies: Ministry of Environmental Protection 8 Orynbor Street, House of the Ministries Astana 010000, Republic of Kazakhstan Email: inoos(@eco.gov.kz 5 Attachment 121 [Letterhead] Ministry of Finance 11 Pobedy Street Astana 010000 Republic of Kazakhstan [DATE] The World Bank 1818 H Street, N.W. Washington, D.C. 20433 United States of America Attention: Motoo Konishi, Regionz.l Director,Central Asia Dear Sir: Re: Republic of Kazakhstan GEF G:ant No. TF098891-KZ (Grant for Preparation of Elimination of Persistent Organic Pollutants Waste Project) I refer to the Grant Agreement ("Agreement") between the International Bank for Reconstruction and Development ("World Bank")], acting as Implementing Agency of the Global Enviromnent Facility ("GEF"), and the Republic of Kazakhstan (the "Recipient"), dated providing the above Grant. For the purposes of Section 3.04 (b) of the Standard Conditions, as defined in the Agreement, any [lone] of the persons whose authenticated specimen signatures appear below is authorized on behalf of the Recipient to sign applications for withdrawal under this Grant. For the purpose of delivering Applications to the World Bank, 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 World Bank. [This confirms that the Recipient is authorizing such persons to accept Tokens and to deliver the Applications and supporting documents to the World Bank by electronic means. In Ismtruction to the Recipient wiien sending thii 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 this footnote in final letter that ts sent !o the World Bank. Instruction to the Recipient: Stipulate if mor: than one person needs TO ijointlY sign Applications, if so. please indicate the actual number. Please delete this lotnote in linal let.wr that is sent to the World Bank. 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 jootnote in final lettc r that is sent to the World Bank Instruction to the Recipient: Use this bracke Qily if several individuals must jointly sign each Application; it this is not ipplicable, please delete- Please delete thisffolrnote in final letter that is sent to the World Bank. Instruction to the Recipient: Add this paragraph if the Recipient wishes to authorize the listed persons to accept Tokens and to deliver Applications by electronic means. if this is not applicable, please delete the paragraph. Please delete thisftootnote infinal !lnier that is sent to the World Bank. 6 full recognition that the World Bank shall rely upon such representations and warranties, ncluding without limitation, the representations and warranties contained in the Terms and ionditions 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"), the Recipient represents and warrants to the World Bank that it will deliver to each such person a copy of the Terms and Conditions of Use of Tokens and 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] Sp ecimen Signature: Yours truly, / signed / Mr. Bolat Zhamishev Minister of Finance 7 Attachment [31 Terms and Conditions of Use of Secure Identification Devices in connection with Use of Electronic Means to Process Applications and Supporting Documentation January 20, 2010 The World Bank (Bank)6 will provide secure identification devices (Tokens) to pennit the Borrower7 to deliver applications for withdrawal and applications for special commitments under the Agreement(s) and supporting dccumentation (such applications and supporting documentation together referred to :n these Terms and Conditions of Use as Applications) to the Bank electronically, on the terms ard conditions of use specified herein. 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 Tokens 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.wo:ldbank.org ) prior to delivery of Tokens. Registration on CC will require that the Signato y 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. Upor. registration as a CC user, the Signatory will be assigned a unique identifying account name. B. Distribution, Initialization and Return of Tokens. I. The Bank will physically deliver a Token to each Signatory in a manner to be determined by and satisfactory to the Ba:nk. 2. At the time of delivery of a Token to a Signatory, the Signatory will receive a copy of these Tenns and Conditions of Use for purposes of initializing the Token. 3. The Bank will verify that th Token, Temporary Password and Terms and Conditions of Use have been duly delivercd to and received by the CC User. "Bank" includes IBRD and IDA. "Borrower" includes the borrower of an ]BRD loan, IDA credit, or Project Preparation Facility advance and the recipient of a grant. 8 4. Promptly upon receipt of the Token and Terms and Conditions of Use, the Signatory will access CC using his/her acccunt name and CC Password and register his/her Token and set a personal identification number (PIN) to be used in connection with the use of his/her Token, after which the Token will be initialized for use by the Signatory exclusively for purposes of delivering Applications. Upon initialization of the Token, the Signatory will be a "Token User". The Batik will maintain in its database a user account (Account) for each Token User for purposes of managing the Token of the Token User. Neither the Borrower nor the Token User will have any access to the Account. 5. Prior to first use of the Token by the Token User for delivering Applications, the Borrower shall ensure that the Token User has received training materials provided by the Bank in use of the Token. 6. Tokens shall be promptly re-urned to the Bank upon request of the Bank. C. Management of Tokens. 1 . Tokens will remain the property of the Bank. 2. Use of the Token is strictly imited to use in the delivery of Applications by the Token User in the manner prescribed by the Bank in the Agreement(s) and these Terms and Conditions. Any other use of the Token is prohibited. 3. The Bank assumes no responsibility or liability whatsoever for any misuse of the Token by the Token User, other representatives of the Borrower, or third parties. 4. The Borrower undertakes tc ensure, and represents and warrants to the Bank (such representation and warranty being expressly relied upon by the Bank in delivery of a Token to each Token User) that each Token User is provided, understands and will abide by, these Terms and Conditions of Use, including without limitation the following: Security 4.1. The Token User shall not reveal his/her PIN to anyone or store or record the PIN in written or other form. 4.2. The Token User shall not allow anyone else to utilize a Token to deliver an Application to the Bank. 4.3. The Token User shll 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 Token User believes a third party has learned his/her PIN or has lost his/her Token he/she shall immediAtely notify clientconnection(chworldbank. org. 9 4.5. The Borrower shall immediately notify the Bank at clientconnection(iworldbank.org of any lost, stolen or compromised Tokens, and take other reasonable steps to ensure such Tokens are disabled immediately. Care of Tokens 4.6. 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, 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. 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 t iat can interfere with the proper operation of electronic equipment, including the Token. 4.7 Without derogating from these Terms and Conditions of Use, other technical instructions on the proper use and care Tokens are available at http://www.rsa.com. 5. Replacement 5.1. Lost, damaged, compromised (in terms of 4.5, above) or destroyed Tokens will be replaced at the expense of the Borrower. 5.2. The Bank reserves the right, in its sole discretion, not to replace any Token in the case of misuse, or not to reactivate a Token User's Account 6. Reservation of Right to disable Token 6.1. The Borrower shall reserve the right to revoke the authorization of a Token User to use a Token for any reason. 6.2. The Bank reserves tle right, in its sole discretion, to temporarily or permanently disable a Token, de-activate a Token User's Account or both. 10 Attachment 141 Statement of Expenditures (SOE) Payments made during the period fron to Date: Application No.: For expenditures against the contracts not subject to the Bank's Prior Review Grant: SOE No.: 1 2 3 - 4 5 6 7 8 livm Category Currency and Currency and Eligible % Amount Currency and Exchange Rate Remarks No. No. (**) Total Amount of Total Amount of from Grant Eligible for Amount Paid from (Col 7 divided by Application (4 x 5) Account (if (Net of Applicable) Retention) TOTALS Supporting documcnts folr this SOE retained at (insert location) (*) A separate SOU 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 ；…난 」 ---―… ，「 - _ ______，些 & 12 -'repared by: Hilarion Bruneau, LCA-CTRI C -leared with and cc: Ramiro fgnacio.lauregui-Zabalaga, LEGEM, Country Lawyer Frank Van Woerden, ECSS3, Task Team Leader