The World Bank 1818 H Street N.W. (202) 473-1000 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Washington, D.C. 20433 Cable Address: INTBAFRAD INTERNATIONAL DEVELOPMENT ASSOCIATION U.S.A. Cable Address: INDEVAS 02-Apr-2020 ________ Honorable Mr.Ibrahim Ameer Minister of Finance Ministry of Finance Republic of Maldives Amenee Magu 20379 Male’ Honorable Minister: Re: IDA Grant Number D595-MV and IDA Credit Number 6591-MV Maldives COVID-19 Emergency Response and Health Systems Preparedness Project Additional Instructions: Disbursement and Financial Information Letter I refer to the Financing Agreement between Republic of Maldives (“Recipient”) and the International Development Association (“Association”) for the above-referenced Project. 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 Grant Number D595-MV and IDA Credit Number 6591-MV (collectively “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 1 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 and processing of advances), instructions on supporting documentation, and frequency of reporting on the Designated Account.  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 -2- purpose of delivering such Applications by electronic means; and (b) all such officials 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 calendar quarter, Interim Unaudited Financial Reports (IUFR) for the project covering the calendar quarter. (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 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 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. Yours sincerely, Idah Z. Pswarayi-Riddihough Country Director for Nepal, Sri Lanka and Maldives South Asia Region Attachments 1. Form of Authorized Signatories Letter 2. Form of Interim Unaudited Financial Report Schedule 1: Disbursement Provisions Basic Information Country Republic of Maldives Closing Date Section III.B.2 of Schedule 2 to the Grant Recipient Republic of Maldives Financing Agreement. IDA D595- Number Name of the Project Maldives COVID-19 Emergency Disbursement Four months after the closing date. MV and IDA Credit Response and Health Systems Deadline Date 6591-MV Number Preparedness Project Subsection 3.7 ** Disbursement Methods and Supporting Documentation Methods Available Disbursement Methods Supporting Documentation Section 2* Subsections 4.3 and 4.4 Direct Payment Yes Copy of Records - Invoice Yes for contracts other than contracts referred in Reimbursement Clause I(i) of the DFIL Interim Unaudited Financial Report (IUFR) (Attachment 2) Yes for contracts other than contracts referred in Advance Clause I(i) of the DFIL Interim Unaudited Financial Report (Attachment 2) Copy of Letter of Credit. Special Commitment Yes Proforma Invoice if cited in the Letter of Credit Designated Account (Sections 5 and 6**) Segregated to be operated by Type Ministry of Health Ceiling Variable Financial Institution - Name Maldivian Monetary Authority Currency USD Frequency of Reporting Quarterly Forecast for three quarters as per Amount Subsection 6.3 (**) the IUFR Minimum Value of Applications (subsection 3.5) The minimum value of applications for Reimbursement, Direct Payment and Special Commitment is USD 50,000 equivalent. -4- 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 **) Authorized Signatories Letter: Withdrawal and Documentation Applications: The World Bank The World Bank Hotel Jen, 4th Floor, Room 404 No. 11, Taramani Main Road Ameer Ahmed Magu Taramani, Chennai – 600 113 Male’, Republic of Maldives India Attention : Country Director, Nepal, Sri Lanka and Attention: Team Lead, WFACS Maldives Additional Instructions (i) List of contracts selected through international open or limited competition or Direct Selection to be disbursed only using Direct Payment and/or Special Commitment disbursement methods are provided in the procurement plan. (ii) In case of category 1 of the table under Schedule 2 Section III.A (“Withdrawal Table”), payments to UN Agencies (if any) would be made through UN Commitment disbursement mechanism. In case of contract with UN Agency, an application for issuance of UN Commitment is to be submitted by the Recipient. Subsequent payment and documentation of expenditures would be as per the commitment letter to be issued by the Association and the agreement between the Recipient and the UN agency. (iii) Supporting documentation requirements for reporting on use of Financing proceeds under category 2 of the Withdrawal Table of the Financing Agreement – Emergency Expenditures under Part 4 of the Project would be provided in a revised Disbursement and Financial Information letter, if funds are allocated to category 2. (iv) In case of category 1 of the Withdrawal Table in the Financing Agreement – Goods, works, non-consulting services, and consulting services, Training and Workshops and Incremental Operating Costs for the Project, disbursement maybe made from IDA Grant Number D595-MV, before commencement of disbursement from IDA Credit Number 6591-MV for expenditures not covered under Schedule 2 Section III.B.1(a) of the Financing Agreement. -5- *Sections and subsections indicated relate to the Disbursement Guidelines for Investment Project dated Financing 2017. Attachment 1 Form of Authorized Signatories Letter [Letterhead] Ministry of Finance [Street address] [City] [Country] [Date] The World Bank Hotel Jen, 4th Floor, Room 404 Ameer Ahmed Magu Male’, Republic of Maldives Attention : Country Director, Nepal, Sri Lanka and Maldives Re: IDA Grant Number D595-MV and IDA Credit Number 6591-MV (Maldives 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 IDA Grant and IDA Credit (collectively “Financing”). For the purposes of Section 2.03 of the General Conditions as defined in the Agreement, any [one]1 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]3 [jointly]4, 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.]5 1 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 this footnote in final 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 this footnote in final letter that is sent to the Association. 4 Instruction to the Recipient: 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 Association. 5 Instruction to the Recipient: Add this paragraph if the Recipient 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 Association. -7- 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] Attachment 2 – Form of Interim Unaudited Financial Report