OFFICIAL 73 DOCUMENTS The World Bank 1818 H Street N.W. (202) 473-1000 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMEN 433 Cable Address: INTBAFRAD INTERNATIONAL DEVELOPMENT ASSOCIATION U.S.A. Cable Address: INDEVAS H. E. Emmanuel Nganou Djoumessi Minister of Economy, Planning and Regional Development Ministry of Economy, Planning and Regional Development Yaounde Republic of Cameroon Excellency: Re: Second Grant Agreement for the Republic of Cameroon Readiness Preparation Proposal Readiness Fund of the FCPF Grant No. TF015355 Additional Instructions: Disbursement I refer to the Letter Agreement ("Second Grant Agreement") between the International Bank for Reconstruction and Development ("World Bank"), acting as Trustee of the Readiness Fund of the Forest Carbon Partnership Facility ("FCPF"), and Republic of Cameroon ("Recipient") for the above-referenced Readiness Preparation Activities, of even date, herewith. The Second Grant Agreement provides that the World Bank may issue additional instructions regarding the withdrawal of the proceeds of Grant No. TF015355 ("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 * Direct Payment * Special Commitment * Advance (ii) Disbursement Deadline Date (subsection 3.7). The Disbursement Deadline Date is four (4) months after the Closing Date specified in the Second 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 Second Grant Agreement. II. Withdrawal of Grant Proceeds (i) Authorized Signatures (subsection 3.1). Applications for this Readiness Preparation Activities will be signed by the official(s) authorized to sign Applications as indicated in your letter of 25 February 2010 or any amendments thereto. (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 P.O. Box 30577 - 00100 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 credentials ("SIDC") 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 SIDC 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 SIDC to Process Applications. By designating officials to use SIDC 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 Credentials in connection with Use of Electronic Means to Process Applications and Supporting Documentation ("Terms and Conditions of Use of SIDC") provided in Attachment 2; and (b) to cause such official to abide by those terms and conditions. (v) Minimum Value of Applications (subsection 3.5). The Minimum Value of Applications is USD 50,000 equivalent. (vi) Advances (sections 5 and 6). * Type of Designated Account (subsection 5.3).' Segregated * Currency of Designated Account (subsection 5.4): CFAF * Financial Institution at which the Designated Account Will Be Opened (subsection 5.5).' Citibank Cameroon Plc. * Ceiling (subsection 6.1).: CFAF 180,000,000 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.: o Statement of Expenditure in the form attached (Attachment 3); and " Records evidencing eligible expenditures (e.g., copies of receipts, supplier invoices) for payments against contracts that are subject to the World Bank's prior review, in the form attached (Attachment 4). * For reporting eligible expenditures paid from the Designated Account: " Statement of Expenditure in the form attached (Attachment 3); o Records evidencing eligible expenditures (e.g., copies of receipts, supplier invoices) for payments against contracts that are subject to the World Bank's prior review, in the form attached (Attachment 4); and o A reconciliation of the Designated Account, in the form attached (Attachment 5), with a copy of the bank statement. * 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): Quarterly, or more often if required. IV. Other Important Information 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 effected. 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 a Finance Officer at CTRLD-TF@worldbank.org using the above reference. Yours sincerely, Gregor Hans Binke Country Director for Cam oon Africa Region Attachments 1. World Bank Disbursement Guidelinesfor rojects, dated May 1, 2006 2. Terms and Conditions of Use of Sec Identification Credentials in connection with Use of Electronic Means to Process Ap cations and Supporting Documentation, dated March 1, 2013 3. Form of Statement of enditure 4. Form of Payments gainst Contracts Subject to the World Bank's Prior Review 5. Designated A unt Reconciliation Statement