28-Feb-2019 Date: ______________________ Mr. Mohamed Ayoya The Representative UNICEF, the United Nations Children’s Fund UNICEF South Sudan Totto Chan Compound, Juba South Sudan Re: South Sudan: Grant No. D427-SS (Provision of Essential Health Services Project) Additional Instructions: Disbursement and Financial Information Letter Mr. Ayoya: I refer to the Financing Agreement between the United Nation Children’s Fund (the “Recipient” or UNICEF) and the International Development Association (the “Association”), for the above-referenced project, dated herewith in. 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. D427-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 Grant 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 UN Advance Account. (ii) Electronic Delivery. Refer to section 11.01(c) of the General Conditions: • The Bank may permit the Recipient 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 Recipient has designated in writing, its officials who are -2- 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 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 Bank 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 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 1. The Recipient shall maintain or cause to be maintained a financial management system, including a separate account in its records, adequate to reflect the transactions related to Parts 1.1, 2 and 3 of the Project, in accordance with the requirements of the document United Nations Children’s Fund Financial Regulations and Rules, E/ICEF/2011/AB/L.8 (hereinafter referred to as the Financial Regulations). 2. The Recipient shall prepare, on a semi-annual basis or other period agreed with the Association, interim unaudited financial reports related to Parts 1.1, 2 and 3 of the Project, in accordance with accounting standards established pursuant to the Financial Regulations and in its standard format for such reports. The first said interim unaudited financial reports (IFR) for the project will cover the period from the first expenditure to the end of the first six-month period following effectiveness. Thereafter, each interim unaudited financial report shall be furnished to the Association not later than forty-five days after each subsequent six (6) months period and shall cover such six (6) months period. 3. The Recipient shall ensure that the audit of its Parts 1.1, 2 and 3 of the Project is governed by: (i) Article XIV of the Financial Regulations and (ii) the Financial Management Framework Agreement. 4. The Recipient shall retain all records (contracts, orders, invoices, bills, receipts and other documents) evidencing all expenditures in respect of which withdrawals of the proceeds of the Financing Parts 1.1, 2 and 3 of the Project were made in accordance with its standard procedures with regard to retention of such documents. III. Other Important Information For additional information on disbursement arrangements, please refer to the Grant 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. -3- 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). -4- 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 UNICEF to the Financing Agreement. Grant D427-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 UN Advance 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 - UN Advance- A Ceiling Variable Financial Institution – [To be established at a financial institution acceptable to the USD Currency Name Association] Frequency of Reporting Semi-annual Not Applicable Amount Subsection 6.3 (**) Minimum Value of Applications (subsection 3.5) The minimum value of applications for Reimbursement of the outstanding advance to UN 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 -5- Attention: Country Manager (ii) Applications (subsections 3.2 - 3.3). Please provide completed and signed (a) applications for withdrawal, together with supporting documents 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 Disbursement of funds will be based on the approved budget agreed with the Bank and will follow the UN advance system. UNICEF will submit semi-annual financial reports to the Bank, which will be used to account for the advances in the Bank systems. The semi-annual financial report will be submitted no later than 45 days after the end of the first six months. The reports will be cumulative. Other ** Sections and subsections relate to the “Disbursement Guidelines for Investment Project Financing”, dated February 2017. -6- Attachment 1 Form of Authorized Signatory Letter [Letterhead] UNICEF [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: South Sudan: Grant No. D427-SS (Provision of Essential Health Services Project) I refer to the Financing Agreement (“Agreement”) between the International Development Association (the “Association”) and the United Nation Children’s Fund (the “Recipient” or “UNICEF”), 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 Recipient to sign applications for withdrawal 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 Recipient, 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 Recipient is authorizing such persons to accept Secure 5[This Identification Credentials (SIDC) and to deliver the Applications and supporting 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 Bank. 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 Bank. 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 Bank. 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 Bank. -7- 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 Recipient 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 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 Bank. -8- Attachment 2 Interim Unaudited Financial Statements -9-