OFFICIAL THE WORLD BANK IWRD*IDA I WORLDBAK-P DOCUMENTS MS. ELLEN A. GOLDSTEIN Country Director Myanmar, Cambodia and Lao PDR Date: Oc10 3 a4" 12 H.E. Mr. Somdy Douangdy Deputy Prime Minister Minister Ministry of Finance 23 Singha Road Vientiane, Lao PDR Re: IDA Financing 6318-LA (Lao PDR Competitiveness and Trade Project) Additional Instructions: Disbursement and Financial Information Letter ("DFIL") Excellency: I refer to the Financing Agreement between the Lao People's Democratic Republic (the "Recipient") and the International Development Association (the "Association") for the above- referenced Project, dated 10k a2s The General Conditions, as defined in the Financing Agreement, provide that the Recipient may from time to time request withdrawals of Financing Amounts from the Financing Account in accordance with the Disbursement and Financial Information Letter, and such additional instructions as the Association may specify from time to time by notice to the Recipient. The General Conditions also provide that the Disbursement and Financial Information Letter may specify Project specific financial reporting requirements. I. Disbursement Arrangements, Withdrawal of Financing funds and Reporting of uses of Financing Funds 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.orz. The Disbursement Guidelines are an integral part of the DFIL, and the manner in which the provisions in the Disbursement Guidelines apply to the Financing is specified below. (i) Disbursement Arrangements * Provisions (Schedule 1). The table in Schedule 1 sets out the disbursement methods which may be used by the Recipient, and conditions, 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 11.01 (c) of the General Conditions. THE WORLD BANK I8RD * IDA I WORLD ANKOROUP 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 the officials designated in writing by the Recipient who are authorized to sign and deliver Applications 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". By signing the Authorized Signatory Letter, the Recipient confirms that it is authorizing such persons to accept Secure Identification Credentials (SIDC) and to deliver the Applications and supporting documents to the Association by electronic means. 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 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 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 must prepare and furnish to the Association not later than forty-five (45) days after the end of each calendar semester, interim unaudited financial reports ("IFR") for the Project covering the semester. (ii) Audits. Each audit of the Financial Statements must 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 must be furnished to the Association not later than six (6) months after the end of such period. III. Other Information For additional information on disbursement arrangements, please refer to the Financing 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, please contact the Association by email at clientconnection@worldbank.org. If you have any queries in relation to the above, please contact Thao Thi Do, Act. Finance Officer at tdo@_worldbank.ory, with copy to Daisy Zita, Finance Analyst at dzita@worldbank.org using the above reference. Yours sincerely, Elen A. Goldstein Country Director Myanmar, Cambodia and Lao PDR East Asia and Pacific Region THE WORLD BANK IBRD * IDA I WORLD BANKGROUP Attachments 1. Form of Authorized Signatory Letter 2. Statement of Expenditure (SOE) 3. Combined Designated account reconciliation statement With copies: Mr. Sithisone Thephasy, Director General, Department of External Finance and Debt Management, MOF Mr. Sirisamphanh Vorachit, Director General, Department of Planning and Cooperation, MOIC Mr. Phouvieng Phongsa, Deputy Director General and Director of NIU, Department of Planning and Cooperation, MOIC Mme. Sisomboun Ounavong, Director General, Department of International Cooperation, MPI Mr. Songkane Luangmuninthone, Director General, Department of Economic Affairs, MOFA Schedule I : Disbursement Provisions for both IDA 6318-LA and TF xxxx Country Lao People's Democratic Republic Closing Date Section III.B.2. of Schedule 2 to Recipient/Beneficiary Lao People's Democratic Republic the Financing Agreement (Credit). Financing IDA 6318-LA Annex Article 111.3.03 to the Number TF xxxx Letter Agreement (Grant) Name of the Project Laos Competitiveness and Trade Disbursement Four months after the closing Project Deadline Date date. Subsection 3.7 * Disbursement Methods Methods Supporting Documentation Section 2 (**) Subsections 4.3 and 4.4 (**) Direct Payment Yes Copy of records Reimbursement Yes Statement of Expenditure (SOE)] in the format provided in Attachment 2 of the DFIL Designated Account Yes a) Statement of Expenditure (SOE) in the format provided in Attachment 2 of the DFIL b) Combined Designated account reconciliation statement together with copy of Bank statement (Attachment 3) Special Commitments Yes Copy of Letter of Credit Type Pooled Ceiling Variable Financial Institution - Name Bank of Lao PDR Currency USD Frequency of Reporting Quarterly Based on 6-month forecast for both IDA Subsection 6.3 (**) and TF The combined minimum value of applications for Reimbursement, Direct Payment and Special Commitment is USD100,000 equivalent. Authorized Signatures Letter Withdrawal and Documentation Applications: The World Bank The World Bank No. 57, Pyay Road, 26th Floor, One Global Place 6 Y2 Mile, 5th Avenue corner 25th Street Hlaing Township, Bonifacio Global Taguig Yangon, Myanmar Philippines Attention: Loan Department ** Sections and subsections relate to the "Disbursement Guidelines for Investment Project Financing, dated February 2017" Attachment 1 - Form of Authorized Signatory Letter [Letterhead] Ministry of Finance [Street address] [City] [Country] [DATE] The World Bank No. 57, Pyay Road, 6 /2 Mile, Hlaing Township, Yangon, Myanmar Attention: Ms. Ellen A. Goldstein, Country Director Re: Financing No. __ _-J MDTF Grant No (Lao PDR Competitiveness and Trade Project) I refer to the Financing Agreement ("Agreement") between the International Development Association (the "Association") and the Lao People's Democratic Republic (the "Recipient"), dated , providing the above Financing. I also refer to Letter Agreement between the Recipient and the Association acting as administrator of the Lao Competitiveness and Trade Project Multi Donor Trust Fund dated - providing the above MDTF grant. For the purposes of Section 2.03 of the General Conditions as defined in the Financing Agreement and Section 3.04 b(b) of the Standard Conditions as defined in the Letter 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 this Financing. For the purpose of delivering Applications to the Association, including by electronic means, 2[each] of the persons whose authenticated specimen signatures appears below is authorized on behalf of the Recipient, acting J[individually] 4[jointly], to deliver Applications, and evidence in support thereof on the terms and conditions specified by the Association. This Authorization replaces and supersedes any Authorization currently in the Association records with respect to this Agreement. 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. 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. [Name], [position] Specimen Signature: [Name], [position] Specimen Signature: [Name], [position] Specimen Signature: Yours truly, / signed / [Position] Attachment 2 - Statement of Expenditures STATEMENT OF EXPENDITURES (No Records Required for Submission) Application 8 toan/OredIr/Grat 8 Category 9 Page 0 PAYMENTS MADE DUING THE REPORTING PERIOD FROM TO The following expenditures have bee. incured during the retroactive finandag period (ple tick) Yes No The following expendhures have been inmured during the closing date of the cedit/grat (please tick) Yes No The following expenditures are for activites caimpleted before the closing date of the credit/grant Yes No Ipleose tick only when the submission of appication ore during grace penod) ONLY for the Designated Arat 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Total aumout Date of contract Prior ntract (Client Contract currency of inWade Amomt Eligible for Amount Oharged to withdrawal item Naime of Contractor / Brief Description of Connection X for and amount Ivoice Date of c ed by rnancig Exdange Designated Accouat from the Reiwd Prior Review (Original, numberW paryment DRatd No. Suipplier /Consultants the eqndhnfs (Y/N) Pronrat ve arineale mbrnt)en application (an RateDsinae Ctracts amendment) of retention) IDA T IDA m TF xxx A xxx TF xxx account Total Sx xxx xxx xxx Supporting Documents for this SOE retained at (insert location) I certify that the anour claimed uncer each financing source above is consistent with the Annale Work Plan and Budget approved by the Bank Signed : Name Of Project Director Attachment 3 CONBINED DESIGNATED ACCOUNT RECONCLIATION STATEMENT IDAITF Nos. xx - Acount No. Banies name IDAXXX TFXXX 1 Cumulative advances to end of curiert reporting period $000 $0.00 2 Less: Cumutive documented Io end af Ia reporting $000 $00 3 Preset outstanding anount advanced to Designated Account $100 $0.00 4 a Balance of Designated Accoutr per attached Bank statemert Dae $0.00 Breakdown by Financier (asf) $000 $000 5 + Total amount claimed in this application (I DAXXX or XXX $0 0 $0.00 (apApno) 6 + Amourts not yet created to account at date of bank state0ert ftom past applications WO 00.00 $000 $0.00 (EnleraWcabon numbers beIow) 7 -Interest earned ($0.00) ($000) & + Total amount withdrawn and not yet claimed $00 $0.00 (Enter explanabons bdow Dedcti aid not yet replenished) 9 Totl Advance accourted for (#s 4 through 8) S000 $0-00 10 Dfference ID be eplained $000 $000 11 Explanation of any diference between the totals appearing on lines 3 and 9 (Amourts) Toal Advanced Accourted For $000 $000 12 Uriclaimed amount without eplanation 13. Pro)et SLbevsor (Date)