28-Feb-2019 Date: _____________________ Mr. Adib Nahas Head of Resource Mobilization, ICRC International Committee of the Red Cross 19 Avenue de la Paix 1202 Geneva Switzerland Re: Republic of South Sudan: Grant No. D428-SS (Provision of Essential Health Services Project) Additional Instructions: Disbursement and Financial Information Letter Excellency: I refer to the Financing Agreement between International Committee of the Red Cross (the “Recipient” or ICRC) and the International Development Association (the “Association”), for the above-referenced project, of even date herewith. The General Conditions, as defined in the Financing Agreement, provide that the Bank may issue additional instructions regarding the withdrawal of the proceeds of Grant No. D428-SS (“Grant”), and specify certain financial management reporting and audit requirements. This letter (“Disbursement and Financial Information Letter” or “DFIL”), as revised from time to time, constitutes such additional instructions. The Disbursement Guidelines for Investment Project Financing dated February 2017, (“Disbursement Guidelines”) are available in the Bank’s public website at https://www.worldbank.org and its secure website “Client Connection” at https://clientconnection.worldbank.org. The Disbursement Guidelines are an integral part of this Disbursement and Financial Reporting Letter, and the manner in which the provisions in the guidelines apply to the Loan is specified below. I. Disbursement Arrangements, Withdrawal and Reporting of Grant Proceeds (i) Disbursement Arrangements • Instructions (Schedule 1). The table provides the disbursement methods, information on registration of authorized signatures, processing of withdrawal applications (including minimum value of applications and processing of advances), instructions on supporting documentation, and frequency of reporting on the Designated Account. (ii) Electronic Delivery. Refer to section 10.01(c) of the General Conditions: • The Bank may permit the Borrower to electronically deliver applications (with supporting documents) through the Bank’s web-based portal (https://clientconnection.worldbank.org) “Client Connection”. This option may be effected if: (a) the Borrower has designated in writing, its officials who are authorized to sign and deliver Applications and to receive Secure Identification -2- Credentials (“SIDC”) from the Bank for the purpose of delivering such Applications by electronic means; and (b) all such officials designated by the Borrower have registered as users of “Client Connection”. The designated officials may deliver Applications electronically by completing the Form 2380, which is accessible through “Client Connection”. The Borrower may continue to exercise the option of preparing and delivering Applications in paper form. The Bank reserves the right and may, in its sole discretion, temporarily or permanently disallow the electronic delivery of Applications by the Borrower. By designating officials to use SIDC and by choosing to deliver the Applications electronically, the Borrower 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, available in the Bank's public website at https://worldbank.org and “Client Connection”; and (b) to cause such official to abide by those terms and conditions. II. Financial Reports and Audits (i) Financial Reports. The Borrower shall prepare and furnish to the Bank not later than sixty (60) days after the end of each calendar quarter, ad hoc interim unaudited financial reports (IFR)1 for the Project covering the quarter in accordance with the format agreed with the Bank. (ii) Audits. The eligible expenditure categories (line items) will be audited as part of regular audit of ICRC’s annual financial statements and the audit opinion and management letter will be shared with the Bank within 6 months after the financial year end. In addition, the financial auditors will apply Agreed Upon Procedures (AUP) in accordance with ISRS 4400 to review those specific eligible expenditure categories. Each audit of the Financial Statements shall cover the period of one fiscal year of the Borrower, commencing with the fiscal year in which the first withdrawal was made. The audited Financial Statements for each such period shall be furnished to the Bank not later than six (6) months after the end of such period. III. Other Important Information For additional information on disbursement arrangements, please refer to the Loan Handbook available on the Bank’s website (http://www.worldbank.org/) and “Client Connection”. The Bank recommends that you register as a user of “Client Connection”. 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. -2- For more information about the website and registration arrangements, or if you have any queries in relation to the above, please contact the Bank by email at Askloans@worldbank.org . Yours sincerely, By: ______________________________ Carolyn Turk Country Director for Ethiopia, Sudan and South Sudan Africa Region Attachments 1. Form of Authorized Signatory Letter. 2. Interim unaudited Financial Report (IFR). -3- Schedule 1 Disbursement Arrangements Schedule 1 : Disbursement Provisions Basic Information Country Republic of South Sudan Closing Date Section III.B.2. of Schedule 2 Recipient ICRC to the Financing Agreement. Grant D428-SS Name of the Project Provision of Essential Health Disbursement Four months after the closing Number Services Project Deadline Date date. Subsection 3.7 ** Disbursement Methods and Supporting Documentation Disbursement Methods Methods Supporting Documentation Section 2 (**) Subsections 4.3 and 4.4 (**) Direct Payment NO N/A Reimbursement Yes Interim unaudited Financial Report (IFR) in the format provided in Attachment 2 of the DFIL Designated Account Yes Interim unaudited Financial Report (IFR) in the format provided in Attachment 2 of the DFIL Special Commitments NO N/A Designated Account (Sections 5 and 6 **) Type Pooled - DA- A Ceiling Variable Financial Institution – To be established at a financial institution acceptable to the USD Currency Name Association Frequency of Reporting Quarterly Based on six months cash forecast Amount Subsection 6.3 (**) Minimum Value of Applications (subsection 3.5) The minimum value of applications for Reimbursement of the outstanding advance to the Advance Account . Authorized Signatures (Subsection 3.1 and 3.2 **) The form for Authorized Signatories Letter is provided in Attachment 1 of this letter Withdrawal and Documentation Applications (Subsection 3.3 and 3.4 **) (i) Authorized Signatures (subsection 3.1). An authorized signatory letter in the Form attached (Attachment 2) should be furnished to the Association at the address indicated below providing the name(s) and specimen signature(s) of the official(s) authorized to sign Applications: The World Bank Office Juba, South Sudan Attention: Country Manager -4- (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, Loan Operation and Trust Funds Department, Delta Center, 13th Floor, Menengai Road, Upper Hill, Nairobi, Kenya. Contact Telephone number: +254 20 2936 000. Additional Information The quarterly financial report will be submitted within 60 days after the end of the quarter. The interim unaudited financial reports (IFR) will only cover the agreed eligible expenditure line items under the program as shown under annex 2 of this letter Other The account details of the designated account are as follows; Swift code: UBSWCHZH80A Account (USD): 240-C0129986.4 IBAN (USD): CH52 0024 0240 C012 9986 4 ** Sections and subsections relate to the “Disbursement Guidelines for Investment Project Financing”, dated February 2017. -5- Attachment 1 Form of Authorized Signatory Letter [Letterhead] Ministry of Finance [Street address] [City] [Country] [DATE] The World Bank 1818 H Street, N.W. Washington, D.C. 20433 United States of America Attention: Country Director Re: Grant No. D428-SS (Provision of Essential Health Services Project) I refer to the Financing Agreement (“Agreement”) between the International Development Association (the “Association”) and the International Committee of the Red Cross (the “Recipient” or ICRC), dated _______, providing the above Grant. For the purposes of Section 2.02 of the General Conditions as defined in the Agreement, any 1[one] of the persons whose authenticated specimen signatures appear below is authorized on behalf of the Borrower to sign applications for withdrawal [and applications for a special commitment] under this Grant. For the purpose of delivering Applications to the Bank, 2[each] of the persons whose authenticated specimen signatures appears below is authorized on behalf of the Borrower, acting 3[individually] 4[jointly], to deliver Applications, and evidence in support thereof on the terms and conditions specified by the Bank. confirms that the Borrower is authorizing such persons to accept Secure 5[This Identification Credentials (SIDC) and to deliver the Applications and supporting 1 Instruction to the Borrower: 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 Bank. 2 Instruction to the Borrower: 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 Bank. 3 Instruction to the Borrower: 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 Bank. 4 Instruction to the Borrower: 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 Bank. -6- documents to the Bank by electronic means. In full recognition that the 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 Borrower represents and warrants to the Bank that it will cause such persons to abide by those terms and conditions.] This Authorization replaces and supersedes any Authorization currently in the Bank records with respect to this Agreement. [Name], [position] Specimen Signature: ____________________ [Name], [position] Specimen Signature: ____________________ [Name], [position] Specimen Signature: ____________________ Yours truly, / signed / ______________ [Position] 5 Instruction to the Borrower: Add this paragraph if the Borrower 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 Bank. -7- Attachment 2 Interim Unaudited Financial Statements 1 The interim unaudited financial reports (IFR) will only cover the agreed eligible expenditure line items under the program as shown in attachment 2 of this letter