THE WORLD BANK OFFICIAL IBRD* IDA I WORLDBANKGROUP DOCUMENTS April 7, 2020 Mr. Sishir Kumar Dhungana Secretary Ministry of Finance Government of Nepal Singha Durbar, Kathmandu. Dear Mr. Dhungana: Re: IDA Credit Number 6604-NP Nepal COVID-19 Emergency Response and Health Systems Preparedness Project Additional Instructions: Disbursement and Financial Information Letter I refer to the Financing Agreement between Nepal ("Recipient") and the International Development Association ("Association") for the above-referenced Project, dated April 7, 2020. The General Conditions, as defined in the Financing Agreement, provide that the Association may issue additional instructions regarding the withdrawal of the proceeds of IDA Credit Number 6604-NP ("Financing"), 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 Association'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 Information Letter, and the manner in which the provisions in the guidelines apply to the Financing is specified below. I. Disbursement Arrangements, Withdrawal and Reporting of Financing Proceeds (i) Disbursement Arrangements: * General Provisions (Schedule 1). The table in Schedule I sets out the disbursement methods which may be used by the Recipient, information on registration of authorized signatures, processing of withdrawal applications (including minimum value of applications), instructions on supporting documentation. * Special Provision. Projects in situations of urgent need of assistance or capacity constraints: Disbursements under contracts for goods, works, non-consulting services and consulting services procured or selected through international open or limited competition or Direct Selection, as set out in the procurement plan, must be made only through Direct Payment and/or Special Commitment disbursement methods. (ii) Electronic Delivery. Refer to section 11.01 (c) of the General Conditions: * The Association may permit the Recipient to electronically deliver applications (with supporting documents) through the Association's web-based portal (https://clientconnection.worldbank.org) "Client Connection". This option may be effected if: (a) the Recipient has designated in writing, its officials who are authorized to sign and deliver Applications and to receive Secure Identification Credentials ("SIDC") from the Bank for the purpose of delivering such Applications by electronic means; and (b) all such officials Nepal Conr7 ffc.YkElYt oe,Cmlx Durar ary Kahanu 1N -2- designated by the Recipient 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 Recipient may continue to exercise the option of preparing and delivering Applications in paper form. The Association reserves the right and may, in its sole discretion, temporarily or permanently disallow the electronic delivery of Applications by the Recipient. By designating officials to use SIDC and by choosing to deliver the Applications electronically, the Recipient confirms through the authorized signatories 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 Association'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 Recipient shall prepare and furnish to the Association not later than forty-five (45) days after the end of each Fiscal Quadrimester, Interim Unaudited Financial Reports (IUFR) for the project covering the Fiscal Quadrimester. (ii) Audits. Each audit of the Financial Statements shall cover the period of one fiscal year of the Recipient, 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 Association not later than nine (9) 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 Association's website (http://www.worldbank.org/) and "Client Connection". The Association 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 Financing, and retrieve related policy, financial, and procurement information. For more information about the website and registration arrangements, or if you have any queries in relation to the above, please contact the Association by email at askloans@worldbank.org using the above reference. Sincerely, Faris H. H d d-Zervos Country Manager Attachments 1. Form of Authorized Signatories Letter 2. Form of Statement of Expenditures /‘中 ／中 -5 - Attachment I Form of Authorized Signatories Letter [Letterhead] Ministry of Finance [Street address] [City] [Country] [Date] The World Bank Nepal Country Office, Yak & Yeti Complex, Durbar Marg, Kathmandu, Nepal Attention: Country Manager, Nepal Re: IDA Credit Number 6604-NP (Nepal COVID-19 Emergency Response and Health Systems Preparedness Project) I refer to the Financing Agreement ("Agreement") between the International Development Association ("Association") and [name of Recipient] ("Recipient"), dated - , providing the above Financing. 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 these Financing. For the purpose of delivering Applications to the Association, [each]2 of the persons whose authenticated specimen signatures appears below is authorized on behalf of the Recipient, acting [individually]' Uointly]", 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 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.]' 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 thisfootnote infinal 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 thisfootnote infinal letter that is sent to the Association. 4 Instruction to the Recipient: Use this bracket only if several individuals must jointly si gn each Application; if this is not applicable, please delete. Please delete thisfootnole infinal letter that is sent to the Association. 5 Instruction to the Recipient: Add this para 'graph if the Recipient wishes to authorize the listed persons to accept Secure Identification Credentials and to deliver Applications by electronic means; ifthis is not applicable, please delete the paragraph. Please delete thisfootnote infinal letter that is sent to the Association. -6- This Authorization replaces and supersedes any Authorization currently in the Association's records with respect to this Agreement. [Name], [Position] Specimen Signature: [Name], [Position] Specimen Signature: [Name], [Position] Specimen Signature: Yours truly, / signed / [Position] -7- Attachment 2 - Statement of Expenditures for categories Credit # Payment made during the period Application from to Category # The following expenditures have been incurred during the retroactive financing period (please tick) Yes No Page # The following expenditures have been incurred during before the closing date of the financing (please tick) Yes No 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Contract # Total Amount other than Amount Service Prior Contract amount of ExpeditF Amn international open paid and provider / Brief Review currency Invoice Date of invoice % Eligibleor Financing and or limited claimed ItmFinanced other thnclaim relating comptiooraeof(hc No Supplier / Description of Contract? Client and amount number payment covered by e to international open or petition or Date of (which to intenatona ope ore direct selection payment shudb Payee's the expenditure (YES or Connection # (original + Application bBan di rcmt etiton rferred to in should be Name NO) for Prior amendment) (net of in clause 1(i) of DefL clause I(i) of DFIL equal to Review retention) paid by Recipient Rvereeto)(not to be claimed) #11) contracts) TOTAL Supporting documents for this SOE are retained at Prepared by: Authorized Representative: A separate form should be used for each category