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DisbursementHandbook

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KEY DATA SHEET

Project Name: ___ Loan/Credit/Corinancier No.:

LoanlQCeditrant DetailsAmount _ _an AgLement usualy Anckle I)Signing Date: _(Loan Agreemet. cover)Effectve Date: (World Bank or Cormiancier notice)Closing Date: _man Ageemet usually Articble )

Cofinancier(s), if anyLoan/Grant No.: (Cofimancicr's Loan Agrement)World Bank Ref.: __(Disburseent Letter)Details:SpecialRequirements:

Authorized Signatures for Withdrawal ApplicationsSpecimen signatuzes provided in borrower's letter dated:Number of signatures required on each application:

Procurement Prior Review Thresholds (La Agrcenn Procuement Schedule)Civil works: Equipment:

Minimum Application SizeValue: _ __sb__sement Letter)

Retroactive Financing, if any (Loan Ageeme usualy Schedule 1)-Elgibility date:

Eligible categories:cening

Disbursement Conditions, if any (Losn Agrment, usuay Schedue 1)Category: Satisfied on:(W (world Bank or Cofinancer notice)Category: Satisfied on: (World Bank or Cofimancier notice)

Special Account (SA)Cunrency: (loan Agreement. usualy Antcle IU)Authorized allocaion _(Loan Agment. SA Schedule)Account number: eposiwy bhk holding SA)Bank name: --Bank address:

Comfort Ietter derails:Eligible Categores: (Loan AgreenL SA Schedule)Replenishment frequency: (snr Lenme)

Statements of Expenditure (SOEs) to be used for (Disu.rsenz= Lt=)Civil woers contracts valued below -equivalentEquipment conm valued below -equivalent

Supporting documents kept at

DisbursementHandbook

The World BankWashington, D.C., U.S.A.

Preface-i i

Preface

What does the Aside from covering disbursement opeatons for World Bank loans andD,lbw _ement credits, this handbook also applies to cofinancing trust funds a by

Handbock cnver? the World Bank, and cofinancing operations for which the donor has asked theBank to assume responsibility for review of withdrawal applications.

What has More detailed text has been added, including expanded coverage of:-hne since the986 editon of 0 Statements of Expenditure (SOEs)

the haudbook? 0 Special AcoDunts (SAs)

Who asm the The primary users of this handbook are the staff of project-implementingDivbursament agencies in member countries who handle day-to-day disbursemnt affairh. ToHandbook? carry out their daily responsibilites more efficiently, these staff should have

ready access to the appropriate loan documents and disbursement lete for theprject. They should also have the following:

o Disbursement Handbooko Guidelines: Procurement under JBRD Loans and DA Creditso Guidelines: Use of Consutants by World Bank Borrowers and y tde

Word Bank as &xecuting Agencyo Guidelines: k9nancial Repofing and Adiing of Projects Phanced by

the World Bank

The Disbursement Handbook also serves as a usefil guide for suppiers ofgoods and services, for banks holding Special Accounts, and for commercialbanks receiving World Bank Special Commitments.

How can on get DIe Bank distributes this handbook and other publications widely among*r pies of these officials in member countries dealing with disWrsements for World Bank-pubLcations? financed proects. If you need any of these publications, contact the World

Bank's Publications Office at the address shown on the inside cover, or yourlocal Resident Mission.

Disbwmanw' Handibok

iv-Pree

WVo manages The Loan Deparhnent handles all loan administation.the loas? Its Disbursement Divisions serve specific geographic regions:

O AfricaO East Asia and Pacific

South Asiao Europe and Central Asia

Middle East and North AfricaLatin Ameican and the Caribbean

Within these divisions, specialy assigned staff handle disbursements forspecfic countries, which includes:

o Reviewing and approving applications for withdrawal of loan proceedsO Responding to any problens or queries on disbursement issues referred

to them

The Loan Accounting and Borrower Services Division of tie LoanDepartment handles billing and loan repayment mates, and providesborrowers with services related to loan accounting.

Connns and The aim of this handbook is to aid the efficient and speedy disbursement ofsuggestions Bank loans for projects in many countries. Your suggestions for improving

the handbook are welcome. Please send them to:

The Director Telex: FTCC 82987Loan Departnent RCA 248423World Bank WUI 641451818 H Street, N.W. TRT 197688Washington, D.C. 20433 USA FAX: (202) 477-7312

Note: *The Bank" in ds handbok refers to tie Itenatonl Ban for and-Dewdopsuet (IBRD) and its affiliate, the lternational Development Association (IDA).

"LAn rfers to either an IBRD loan or an IDA credit. unless otherwise explained in dhe text.

Sehedule 1" as mentioned through this handbook refers to the "Schedtle for Wtthdmwal of LoanN!oeeds" which normally appears as the first annex to each loan agrement.

Dkanm Hanboo

Contnts-v

ContentsPage Number

Chapter 1 The World Bank 1

Background 1World Bank Lending IThe Project Cycle 2

Identification, Preparation, and Appraisal 2Negotiation and Approval 2Implementation and Supervision 3Evaluation 3

Types of Loans 3Investinent Projects 3Adjustment Opertions 3Project Prepaation Facility Advances 3

Cofinancing 4

Chapter 2 Legal Provisions 5

General Conditions 5Legal Agreements 6Amending Legal Agreements 7Schedule of Withdrawal of Proceeds 7Disbursement Letter 8Significant Dates 8Disbursement Conditions 9Closing Dates 9Reallocating Loan Proceeds 10Changing Disbursement Percentages 10

Chapter 3 Disbursement Operations 11

Introduction 11First Steps for Withdrawal 11Authorized Signatures 11Internal World Bank Procedures 12

Processing Applications within the Bank 12Codes Used by the Bank 13Refinaing Project Preparation Facility (PPF) Advances 13Capitalizing Loan Charges 13Refunds 14

Suspending Disbursements 14Cancellations 14Cofinancing 15

s ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~bwm . . g .

Taxes and Other Ineligible Expenditures 16Taxes 16Other Ineligible Items 17

Freight and Insurance 17Freight 17Conference Lines 17National Lines 18Local Freight Charges 18Insurance 18

Chapter 4 General WVithdrawal Arrangements 19

General Information 19Types of Expenditures 19Retroactive Financing 20Disbursement Procedures 20Obtaining Application Forms 20The Process of Withdrawing Funds 20

Requirements 20Minimum Application Size 21Numbering System for Applications 21

Application for Withdrawal (Form 1903) 22Summary Sheet 22Documentation 23

Application for a Special Comniitment (Form 1931) 24Loter of Credit 24Documentation 24Payment Claims 24

Managing Special Commitments 25Limitation Clauses 25Loan Closing Dates and Letter of Credit Expiry Dates 26

lTips to Avoid Delays in Disbursement 26

Chapter 5 Withdrawal Arrangements for Statements ofExpenditure (SOEs) 27

Purpose 27Criteria for Using the SOE Method 27Limits for Using SOEs 27SOE Forms 28Relationship of SOE Limits to Procurement Prior Review Limits 28Adjustnent Loans 28Audit Requirements 29

D H o;-w~ Hamd: i-

Contfl-vii

Chapter 6 W-ithdrawal Arrangements for Specdal Acmunts (Sas) 30

Purpose 30Legal Requirements 30Location of Special Accomnts 31Currency of Special Accounts 31Operating the Special Account 32Authorized Allocation 32Comfort Leters 32Access and Control 33Advances and Replenishments 33lnterest and Charges 34Reconciling Bank Statements 34Suspending Disbursements 35Recovedng Special Account Advances 35Closing Specil Accounts 36PPF Special Accounts 36Audit Requirements 36

Chapter 7 Disbursement Reports and Lon Repaymn t 37

Disbursement Reports 37Payment Advice 37Monthly Disbursement Summary 38

Applicable Exchange Rates (AERs) Used to Value Disbrsements 38Repaying Lon 39Curey Poo 40IBRD Interst Rate 41

Chapter 8 Procurement of Goods, Works, and Serices 42

General Information 42No Objection Notices 42Procurement 42Intenational Competitive Bidding (ICB) 43Oter Methods of Procurement 43Expenditures under Contacts 44

Pricing and Currency of Bids 44Currency of Payment 44Payment Tes 45Price Adjustment Clauses 45Advance Payments 45Perormance Security 45Retention Monies 46

Sectoral and Stuctual Adjustment Iu 46Consultants 47

:-ij ::: f: : -; :-- ~ ~ ~ ~ ~ ~ ~ ~ Hmwdv

Vii-Contents

Chapter 9 Accounts and Audits 48

Accounts 48Audits 48

Annexes 49

1 Example of Schedule I to an IBRD Loan Agreement 492 Example of a Disbursement Letter 503 Example of a Letter Designating Authorized Signatories 524 World Bank Members, Abbreviations, and Currency Codes 535 United States-Names of States and Abbrviations 576 Application for Withdrawal (Form 1903) 58

Sample Application and Instudons for Completion 58Sample Summary Sheet and Instructions for Completion 60Example 1: Request for Advance to Special Account 62Example 2: Request for Replenishment of Special Account 64Example 3: Request for Direct Payment 68Example 4: Request for Reimbursement of Expenditures Already Made 70

7 Application for Special Commitment (Form 1931) 74Sample Applicatior and Instructions for Completion 74Example 1: Request for Issuance of Special Commitment 76Sample Special Commitment (Form 2018) 78Example 2: Completed Special Commitment 80Sample Special Commitment Request for Payment (Form 2015)

and Instructions for Completion 828 Statement of Expenditure (SOE) Forms 84

Sample Statement of Expenditure (SOE) - Contract Detail 84Sample Statement of Expenditure (SOB) - Free Format 86Example 1: Completed SOE Form - Force Account Civil Works 88Example 2: Completed SOE Form - Loca Training Costs 90

9 Example of a Comfort Letter for a Special Account 9210 Special Account Recmciliation Statement 93

Sample Special Account Reconciliation Statementand Instructions for Completion 93

Completed Specal Account Reconciliation Statement 9511 Disbursement Reports 96

Ptyment Advice 96Monffily Disbursement Summary 98

12 Glossary of Disbursement Tenns 100

Index 102

Cebclwt C Key Data and Limits for a Specific Project Back Covr

Drbwmient Handbook

Chapter 1: The WVorld Bank

Chapter 1The World Bank

Bacwkgound 1.1 The central purpose of the Wodd Bank-which includes theIntenational Bank for Reconstruction and Development (IBRD) and theIntenational Development Association (IDA)-is to promote economicand social progress in developing member countries. To carry out itspurpose, the Bank:

O lends fundsO provides adviceo stimulates investments by others

1.2 EBRD is owned by the governments of its member countries, all ofwhich are also members of the Interrational Monetary Fund (M). Asmembers, the countries contribute to the capital of both the-Bank andthe IMF. Subscriptions tD IBRD's capital vary according to eachmember's quota in the IMF. Most of IBRD's funds come from

o borrowing on the capital markets of the worldo repayments on loanso earnings

1.3 IDA provides assistance to developing countries with very low percapita income through credits on much more favorable terms than IBRDloans. IDA funds come mainly in the form of contributions fromdeveloped member countries, though some developing member countiesalso contrbute. Although IDA is legally and financially distinct fromIBRD, it shares the same staff, and its projects must meet the same highstandards as for IBRD loans.

World Baok 1.4 The Bank has helped to develop agricutue, improve education andLending health, protect the environment, inces energy output, expand

industy, create better urban facilities, extend telewmmunicationsnetworks, modernize tasportation systems, improve water supply andsewerage facilities, and support structual adjustment. In short, the Bankhas provided assistance to developing countries in many different sectorswhere adequate capital from other sources was not available onreasonable terms.

1.5 The Barn's funds are intended primarily to help meet forrign exchangecosts since most developing countries have an acute shortage of foreigncurrencies. The developing country provides part of the financing for

;~ ~~~~~~~~~~~~~~~~~~~~Dswenn Haa:-

2 Chapter 1: The World Bank

each project from its own resources. In many cases, other leders anddonors also provide assisance.. Each project is designed in closecollaboration with the national government and local agencies, and oftenas well with other organiions pursuing objectives similar to theBank's.

The Project 1.6 Once a project has been identified and is considered feasible, it isCydle formuated by examinng the economic, financial, and technical

requirements and the likeihood of their being realized, and bydetermining what features and conditions will be necesry tD ensme the

Idenficaton, project's success. The borrower is primarily responsble for prparng

Pt an the project, although the Bank, United Nations agencies, and outsideApprai.a. consultants fiequently assist, particuarly when ffie necessay expertise

is unavailable locally. The Bank carries out an appraisal with theassisance of the borrower and, on occasion, other donors, to providea basis for the decision to support the project with a loan.

Negotiaion and 1.7 Formal negoftations with the borrower follow appaisal. These result inApproval. a legal ageement (or agrments) between the borrower and the Bank

that precisely defines the project and specifies the program to meet itsobjectives. The agreement contains:

o financial terms and conditionso schedule of items to be financed by the Bank (normally

Schedule 1)o procurement methods to be usedO covenants on audit, revenue levels, changes, projct

monitoring, and any other points requiring special attention

1.8 At this stage, the arrangements for disbursing the loan are worked outin detail between the borrower and the Bank. These arrangements areparticularly important to both parties, since they establish the basicprnciples and practices for disbursement that will be followedthroughliout the project's iplementation peod. At negotiations, theLoan Department's representative distributes to the borrower'snegotiating team copies of the Disbwnement Hwadbook and samples ofthe withdrawal fonns to be used. The Loan Departmnt represntativeis on hand throughout the negotiations to advise and assist theborrower's team on disbursement matts, and to discuss with them theprocedures for claiming withdrawals from the loan.

1.9 After negodations are completed, Bank management submits a report onthe proposed loan to the Bank's executive directors for their approval.After approval, the loan documents are signed. Before withdrawals can

DirbunatHawrbeat

Chapter 1: The World Bank 3

begin, the borrower must fulfill the conditions of effectiveness, and theBank must declare the loan effective.

-Implmenwaion 1.10 The borrower is responsible for implementing the project, and forand Supervsion satisfying the Bank that the project is being carried out properly and will

likely achieve the objectives of the loan. The borrower reports to theBank periodically on -the project's progress. The Bank, in turn,supervises the prcject and reviews its progress regularly to ensure tatthe funds are spent as agreed.

Evaluation 1.11 After the loan is closed and the project completed, the OperationsEvaluation Department-a separate and independent unit reporting to theBank's executive directors-evaluates the results of the project.Evaluation is an essential part of the Bank's process of learning how tomake development assistance more effective.

Types of 1.12 Most Bank lending goes for investment projects which require specificLoans goods and services to meet their objectives. Examples are loans to

finance agricultural development, transportation, education, health andProjectsteS nutrition projects, and industrial development.

Adjustment 1.13 Adjustment loans are linked to programs of reform, and are usuallyOperations disbursed in a series of tranches (portions of the total loan amount) as

structural reforns are implemented. Adjustment operations usuallyfinance imports procured trough splified rules (see para. 8.19). Insome cases, all imports within a specific period may be eligible eceptfor a limited list of items on a "negative list." In others, disbursementsmay be limited to imports for a specified sector - a upositive list.3

Since adjustnent lending usually finances a large volume of importsover a short period, the Bank prefers that the bonower prefinance allprocurement and caim reimbursement later from the Bank.

1.14 Some loans (called hybrid loans) involve a blend of investment andadjustment activities.

Project 1.15 Project Preparation Facility (PPF) advances are made by the Bank toPrepmation provide financial and technical assistance to bormwers for theFailtAdvances prparation of new projects. PPF fumding is provided only -when the

borrower cannot prefinance these costs or find other sources of funds.

o If the Bank agrees to fnance a project as a result of thepreparaion, thie advance is refinanced out of loan funds earmarkedfor this purpose as soon as the loan becomes effective.

DhW=jtar4--

-4 Cbapr 1: The World Bank

0 If a mew project does not materiale by the date specified in theagroement covering the advance, the bonower repays hie principaland accmed charges.

Corinandng 1.16 About 40 percent of all Bank-assisted projects receive financial supportfrom other 1knders and donors under various cofinancing a m .For certain projects the Bank acts as administrator for hes donors. Inthese operaions, the Bank has the same sibiliies fordocumentation review and payment approval as for its own loans. (Secpans. 3.15-3.19 for details.)

1.17 The Bank's three main types of cofinancing partners are:

o official sources, including governments, their agencies, and othermultilateral fuiancial- institutions

o export credit institutions which are directly associated withfinancing certain goods and services from a particular country

o commercial banks and other private financial institutions

Dbbanmea Hamdbook

Chapte 2: Legal Provisi z

Chapter 2Legal Provisions

Genea 2.1 Standard conditions goveming IBRD loans are contained in the Bank'sConditions Geerml Conditons Appicabl to Laan and G_awcte Agreemet,

and IDA credits in the General Conditions A to DeldopmmntCredt Agreements. The General Conditions, which are an integral partof the loan agreements, cover the following:

O repayment provisions, n.1 erest, and other chargeso currency provisions, including valuation of currencieso withdrawal of proceedsO standard conditions of effectivenessO arbitration clauseso cancellation and suspensiono terminationo various other lega provisions

One of the conditions stipulates that the Bank open a loan account in itsbooks in the name of the borrowe, to which the amount of the loan iscredited. Funds are then disbursed from this account as eibVendltursare incurred. Certain sections of the General Conditions areincorporated in most trust fund agreements (see paa. 3.17).

2.2 Article V of the General Conditions sets out the basic requirements forwithdrawing the proceeds of a loan. Its main provisions are:

o Withdrawal from the Lean Account. The bonower is endted towithdraw amounts spent on the project subject to compliance withthe provisions of the loan agreement and the General Condidons.Withdrawals can only be made for:

* expendiues in the territonies of member counties of the Bank* for goods produced in, or services supplied from, these territories.

Note: Suppliers and ontractors in Taiwan, China eligible to compet inproviding goods and services fianced under Bak loIss

O Applications for WVithdrawal or Special Commitment. When theborrower wants to withdraw any amount, or wishes the Bank toissue a Special Commitment, it must apply in writing to the Bankin such fonn and conaning such information as the Bank requires.

Dubasea Handb ok- -X - -;- . M M

:- 6 Chapte 2: Legal Provisions

0 Speial Commiment by the Bank. Upon the bower's request,and by mutual agreement, the Bank can enter into a SpecialCommitnent in writing to pay for expenditures tD be financed outof the loan, even though the Bank may subsequently suspend orcancel the loan. Special Commitments are usually issued to coverletters of credit.

o Evidence of Authority to Sign. The borrower must provide theBank with evidence of thie authority of the persons authorized tosign applications together with their authenticated specimensignatires.

o Supporting Evidence. The borTower must provide he Bank with.. any other documents and evidence in support of the aplicatio

-that the Bank may reasonably request, before or afterdisbursement.

O Sufficiency of Documtion. Each applicaton, wiLth itsaccompanying documentation, must be properly completed, so asto saisfy the Bank that the bower is entitled to withdraw theamount applied for, and that this amount is used for the purposesspecified in the loan agreement.

o Reallocation of Proceeds. If there are insufficient funds in aspecific catgory (see part 2.6), the Bank-by notice to theborrower-may reallocate funds from one category to another orreduce the percentage for withdrawal applicable to eapenditures inhat category (see paras. 2.16-17).

L,egal 2.3 The min legal document for a project is an agreement signed by theAgreements borrower and the Bank, which sets out the terms and conditions of the

loan.

Note: Diffrrent names are assigned to these agreements:o Loan Agreement fir IBRD loansO Development Credit Agreement for IDA creditso Letr Agreement for Project Preparation Facility Advanceso Grant Agrenuent for most tust funds administred by the BankIm this handbook, loan agreement or 'agreemen" refers to any of theabove, unless otherwise specified in the texL

When the Bank lends directly to a party other than a member country,the Bank also enters into a Guarantee Agreement with the membercountry. When the Bank lends to the member country, butimplementation will be the responsibility of another entty, the Bankmay also enter into a Project Agreement with thLt entity. In this case,key provisions related to pcurement, maintenance of project accounts,

D _bwneaf Haadbck

ChapWr 2: Lega Provi 7

and oation of a Special Account may be specified in the PrqjectAgreement rather than the Loan Agreement.

.Not= For some lo, such as dbos bat ildveone of Smds toScinw ixiaies, Ihe bonwaw my *lo cub, into a SubsdiwyLm Agmeomet with the fmc tndirs.

Amend&ng 2.4 The General Conditions specify that the Bank has the right to make-Lega certin dhanges by notice to the borrower. Such changes includeAgreemens exding the closing date to pemit continued loan withdrawals (see

paa. 2.13), reallocating fimds or reducing disbursement percentages(see paras. 2.16-17).

2.5 Other amendments o loan agreements are subject to agreement betweenthe borrower and the Bank. Changes that will significantly affect thedesign or scope of the project may also require approval of theexctive directors. To amend a loan agreement, the Bank normalysigns a letter with the proposed amendments and asks the borower tocountersign it to confirm acceptance of the changes.

Shedule of 2.6 The Schedule of Withdrawal of Proceeds-usually Schedule 1 to theWithdrawal of loan agreement (see example in Annex 1)-is drawn up by agreementProceeds between the borrower and the Bank. The schedule contains a list of the

caegories of items to be financed (such as civil works, goods,consilting sevces, and training). Sep3arte headings under eachcategory show the estinmted amounts to be disbursed and thepertages of expenditrs that will be financed from the loan. Aportion of the loan is usually set aside as 'unalloted' to ver physicaland price contingencies.

Note: In some cases the category desciption reis o a speific pat of theproject which is fully descnbed in the desciption of the project(Dosny Schele 2 to the loan arement).

2.7 If a Schedule of Withidrawal of Proceeds is not included (as is the casein some loans to finanial intermediaries), withdrawal insuctions maybe found in the body of the loan agreement (usually Article l).

Dlrbursauez Handbook

8 Chapter 2: Igl Provisions

Disbursement 2.8 After the loan agreement is signed, the disbursement officer in the LoanLefter Department sends a letter-the disbursement letter-oudining the

disbursement procedures to be followed for the loan. A draft version ofthis letter is usually discussed at negodations. This letter (see examplein Annex 2) provides the borrower and executing agencies with clearinstructions on withdrawals for the particular project It also furthedefines some of the provisions in Article V of the General Conditionsand in this handbook.

2.9 The disbursement letter provides sample withdrawal forms to be usedand includes special instructions, where applicable, on the following:

O retoactive financing (see para. 4.4)O items eligible for disbursement under the Statement of Expenditure

(SOE) procedure (see Chapter 5)o unique requirements for the operation of a Special Account (see

Chapter 6)o data requirements for the Bank to capture statistics on the origin

of goods and services (see pam. 3.8)o disbursement conditions, if any (see paa. 2.12)O minimum value of applications (see para. 4.9)O audit requirements (see Chapter 9)O disbursement arrangements for any cofinancing admnired by

the Bank (see paras. 3.15-3.18)

2.10 In many projects, several agencies as well as the borrower may beinvolved in project implementation and therefore would be entitled tosend withdrawal applications to the Bank. The borrower is responsiblefor providing the Bank (preferably during loan negotiations) withaddresses of all the project entities that should receive copies of thedisbursement letter, and disbursement reports (see Chapter 7). Thebower is also responsible for providing access to all necessaryinstuctions for all staff who handle disbursement issues.

Significt 2.11 The following are important for each project:Dates

o Board Approval Date: The date the executive directors approvefte loan for the project. This date determines the schedule ofrepayments from beginning to end.

O Loan Signing Date: The date the bonrower and the Bank sign theloan agreement. Comnitnent fees start to accrue 60 days later.All eligible payments made by the bonrower from this dateonwards may be reimbursed upon loan effectiveness.

DVibursewwo Handbook

Chapter 2: Legal Provisions 9

o Effective Date: The date the Bank notifies the borrower that itaccepts the evidence of compliance wit- the conditions ofeffectiveness, and the date from which disbursements from theloan account may be made.

o Closing Date: The date specified in the loan agreement afterwhich the Bank may, by notice to the borrower, tenrinate theright to make withdrawals from the loan account.

Disbursement 2.12 The Bank may make withdrawal of a portion of a loan conditional onConditions the fulfllment of certain actions which are unliky to be completed

before- effectiveness. Any such condition must not have the effect, incase it i.s not satisfied, of delaying the project as a whole or prejudicingits successful implementation. Conditions of disbursement, which appearin Schedule 1 to the loan agreement, restrict disbursement for aspecified category (or categories) of the loan untl particular actionshave been taken. (See Annex 1 for an example.)

Closing Dates 2.13 Loan closing dates are established on the basis of the anticipated projectcompletion date, with an additional margin of about six months to allowfor submission of final withdrawal claims. The Bank may notify theborrower that the closing date of a loan has been extended. This actionis usually taken after consultation with the borrwer. Borrowers mayalso provide the necessary justification and request an extension of theclosing date. When implementation has been delayed, timely action toextend the closing date will help to assure project entities that funids willcontinue to be available to meet future project expenditures. The Bankmay terniinate the right to make further withdrawals after the closingdate has lapsed.

2.14 In some cases, subject to specific notification from the Bank to theborrower, the Bank may permit withdrawals for a limited period (notexceeding four montis) after the closing date to cover payments madeor payments due for goods, works, and services that have been providedon or before the closing date.

2.15 Retention payments become due only on fullllment of certain conditions(for example, performance tests or expiry of warranty period). If theseconditions have been met before the closing date, these payments wouldfall within the list of payments which the Bank may agree to make afterthe closing date. Otherwise, closing date extensions may be justified.

DLsbwwanem Handbook

10 Chapter 2: Legal Provisions

Reallocating 2.16 While the project is being implemented, acual progress of the projectLoan Prceeds can differ from the onginal estimates for many reasons. On the

disbursement side, this frequently means reallocating some funds fromone category to another, in particular from the 'unallocated' category.No disbursements can be made directly from the 'unallocated' category;these funds must first be reallocated to another category listed inSchedule 1 to the loan agreemnent. The General Conditions specify thatunder certain circumstances the Bank may reallocate funds from onecategory to another by notice to the borrower. In most cases, however,funds are reallocated after progress of the project is reviewed with thebofrower during a supervision mission (see para. 1.10). In order toavoid any delay in disbursements for expenditures under a categorywhich has been or is about to be fully disbursed, bofrowers shouldinitate discussions leading toward reallocafion of ftnds at theappropriate time.

Changing 2.17 The General Conditions also specify that the Bank may reduce theDisbursement disbursement percentage applicable to a category in those cases whePercentages the amount allocatd will be insufficient to meet all expenditures in that

category if reallocation of funds between categories cannot meet thisshortfall. While disbursement percentages may be reduced in such casesby notice from the Bank, any other changes in disbursement percentagesare subject to the amendment procedure set out in pam. 2.5.

Disbarsemm Hwbook

Chapter 3: Disbursement Opeations 11

Chapter 3

Disbursement Operations

Introduction 3.1 Disbursement arrangements and procedures have evolved over the yearsto meet changing needs. General withdrawal procedures are descnriedin Chapter 4. Two widely used procedures with speciarequirments-Statements of Expenditure (SOEs), and Special Accounts(sometimes called Revolving Funds)-are descrbed in Chapters 5 and6. For withdrawals against SOEs, the supporting documentation remainswith the borrower m the field, for subsequent examination byindependent auditors and Bank supervision missions at any time. Whena Special Account is used, the Bank makes an initial advance to coveranticipated eligible expenditures. Thus, both procedures transfer to theborrower greater responsibility for verification and control ofdocumentation supporting withdrawal applications. Before the Bank canapprove these methods for each individual project, it must be satisfiedthat expenditure controls and auditing arrangements are adequate.

3.2 All payments for goods and services should be made in accordance withthe contract provisions, which specify the currencies and mode ofpayment. Prompt payment is of considerable importance since suppliersmay have to borrow to continue operations, and since these extra costsare usually reflected in current or futre contract prices.

First Steps for 3.3 Before withdrawals can begin, the following must occur:Withdrawal

oil The loan must be declared effective by the Bank, followingoompliance with all conditions specified in the loan agreement andthe General Conditions.

O The Bank must receive evidence of authority to sign withdrawalapplications (see para. 3.4).

O Disbursement conditions (if any) related to the specificdisbursement category must be meL

For all withdrawals, the Bank must receive a withdrawal application inan acceptable form confirming compliance with procurementprocedures, and accompanied by acceptable supporting documents.

Authorized 3.4 The General Conditions require that the authorized representative of theSignatures borrower designate which officials may sign withdrawal applications,

and provide copies of their authenticated specimen signates. Theauthorized representative (usually the Minister of Finance for loans tothe borrowing country or the chief executive officer of an entity which

Disbusnewm Handboo

12 Chapter 3: Disbursement Operations

borrows directly from the Bank) is specfied in the loan agreement Foran example of a letter to designate signatories, see Annex 3. Tleborower has the discretion to determine the number of signarsrequired on each application. The letter should state clearly where morethan one signature is required. The need for control should be balancedagainst the need for prompt signature to ensure efficient withdrawals.The borrower should nofify the Bank promptly whenever reassignmentsor other changes require new authorized signatures. To avoid any delaysin signing applications, the list of designated officials should preferablyinclude seveal signatories.

InternalWorld 3.5 Within the Bank, the Loan Department is responsible for reviewingBanklc applications, authofizing payments, and accounting for bothProcedures disbursements and repayments of loans. All withdrawal applications

Should be sent direcdy to the appropriate disbursement division at theaddress that appears at the head of each application form, unless special

Processingi mstructions have been provided in the disbursement letter (see paa.Applications 2.8).within the Bank

3.6 When applications are received by the disbursemet division, they aTestamped with the date and time of receipt and logged into the Bank'scomputerized system for montoring disbursements-the LoanDisbursement System (LDS). Staff check each application to verify

o that the application has been signed by an authorized officialo that the expenditures are eligible and properly documentedo that there are sufficient undisbursed funds at the loan and category

level.

At the same time, the origin of goods and sevices and the type ofapplication are recorded. After the Loan Department has approved theapplication for payment, the Cash Management Department makesarrangements to execute the payment. Banldng channels offer the fastestand most secure means of executing payments.

3.7 On average, the processing time from receipt of the application untilexecution of the payment is about two weeks. If the applications areincorectdy or incompletely prepared, the processing will take longer. Ifproblems are serious, applications may be returned, or payment may bemade in a reduced amount to cover those items found eligible forfinancing. In all such cases, the Bank informs the borrower of thereason for rejection or reduced payment.

Dsbwsaent Handbook

Chapter 3: Disbursement Operations 13

Codes Used by 3.8 The Bank is required to classify disbursements in order to report thethe Bank data to member govemments. The Bank classifies disbursements

primarily according to origin of goods and services, and the type ofitem being financed. See Annex 4 for current member countries of theBank, currency names, codes used by the nternational StandardsOrganization (ISO) for these currencies, and the numeric codes used bythe World Bank for each of these cunrencies. See Annex 5 for statecodes for the United States of America. The Bank also uses codes todescribe broad clases of goods and services. Borrowers are sometimesasked to include these codes in summary sheets attached to theirwithdrawal applications.

Note: Additional counbies may have become membe since this handbookwas issued. Contact the Bank if you need to verify curnet membership.

Refinancing 3.9 When a loan includes provision for refinancing principal amountsProject wiffidrawn from a PPF advance and any accrued charges, Schedule 1 toPreparation the loan agreement includes an allocation to cover the estimated amountFacilt needed for this purpose. Article II of the loan agreement, which covers(PPF) Advances Fmancial Provisions, also specifies tkat the Bank will arrange for

refinancing the amounts due promptly after effectiveness of the loan.The Bank handles this process automatically. Payment advices (see para.7.2) provide borrowers with details of the amounts witidrawn to coverrefinancing of the PPF After the PPF has been refinanced, any balanceof the PPF advance is cancelled. Any unused anount allocated in theloan to cover refinancing of the PPF remains available, and may bereaUlocated to other disbursement categones to cover activities eligiblefor financing under the loan. Normally activities eligible for financingunder the PPF will also be eligible under one or more of thedisbursement categories of the refinancing loan.

Capitalizing 3.10 If IBRD loans are made for projects that can generate the revenuesLoan needed to repay the loan only after project completion, the Bank mayCharges agree to capitalize interest and other charges on the loan for a specified

period. In these cases, the loan agreement includes an allocation of theesfimated amount needed to cover interest and other charges. Article U,which covers Financial Provisions, specifies that the Bank has the rightto withdraw from the loan account and pay to itself amounts due oneach semiannual repayment date.

Dfrbauwwan Handbcook

14 Chapter 3: Disbursement Opertions

Refunds 3.11 The borrower must ensure that the Bank receives a refund of anyamount withdrawn that exceeds the amount of eligible expenditures. Allrefunds should be paid to the Bank's account at its depository bank,citing appropriate references-the loan number and withdrawalauthorization number, in most cases-with advice to the CashManagement Department.

o If the refund is small, the Bank reserves the right (as specified ineach application) to apply the amount refunded to debt service.

o If the amount is signirficant, it is refunded to the loan account andbecomes available to meet future eligible expenditures.

Amounts refunded to the Bank are normally credited with effect fromthe date of receipt of the refund. In some cases, the currency amountrefunded may have to be converted to another currency acceptable to theBank (for example, a currency outstanding in the Currency Pool forIBRD loans [see paras. 7.16-7.19], or the currency of the trust fundfrom which payment was made). Any difference between the amountcharged to the loan when the original payment was made and theequivalent amount at the time of refund is absorbed by the account ofthe borrower. If a Bank error caused the excess withdrawal, the refundis credited back to the loan account in the full amount charged on thedate of withdrawal.

Suspending 3.12 When a borrower fails to comply with the conditions specified in a loanDisbursements agreement, the Bank may suspend disbursements. Suspension may apply

to an entire loan, to a component of that loan, or to severl loans. In thecase of debt-service related defaults, the Bank's policy is to suspenddisbursements on all loans to, or guaranteed by, the member country.The Bank notifies the borrower in writing whenever disbursements aresuspended, and gives details of any items which the Bank may (at itsdiscretion) exempt from the suspension. Payments against SpecialCommitments issued before the date of suspension are not subject tosuspension or cancellation.

Cancelaions 3.13 Under the General Conditions, borrowers may request cancellation ofany undisbursed loan balances unless they have been reserved alreadyfor Special Commitments issued by the Bank. The Bank may cancelloan balances, in fuU or in part, under the following circumstances:

o if the right to make withdawals has been suspended for acontinuous period of 30 days

o if, in consultaton with the borrower, the Bank determines that anamount is not required to finance the costs that were to have beenfinanced from the loan

Disbnemem Handbook

Chapter 3: Disbursement Operations 15

o in certain instances of noncompliance with procurement provisionsO if an undisbursed loan balance remains in the loan account after

the closing date has lapsed

Cancellation notices specify the effective date of the cancellation (thatis, thP date from which commitment charges [see paras. 7.11-7.15] willno longer accrue on the cancelled amount).

Cofimancing 3.14 Cofinancing anrangements may be made in different ways. For purposesof this handbook, "cofinancing' covers projects implemented by adeveloping member country with financial assistance from externaldonors. In most cases, this term is used to describe projects receivingassistance from the Bank and other donors. For convenience, the termis also used to describe 'free-standing' operations, or those receivingsupport from other donors, but whose disbursements are administeredby the Bank (see para. 3.17).

3.15 Cofinancing includes the following:

o Joint rmancing, an operation with a common list of goods andservices, for which the Bank and cofinancier share the financingand disbursement for certain items in agreed proportions. TheBank's procurement guidelines apply to all jointly financed goodsand services.

o Parallel rmancing, an operation in which the Bank and thecofinancier finance different goods and services or part(s) of aproject. In parallel financing, the procurement arrangements mayfollow each donor's requirements. The Bank ensures that parallel-financed items are procured economically, in a timely fashion, andare compatible with the rest of the project.

Ihe Bank sometimes works with other donors to coordinate andstrmline donor requirements in order to simplify the disbursement andprocurement process.

3.16 Some multilateral aid agencies or bilateral donors ask the Bank toadminister disbursements on their behalf. Nonmally the Bank requiresthat these donors agree that the Bank's procurement and disbursementprocedures will apply to their funds. Exceptions, however, aresometimes granted. In general, the Bank will agree to administer fundsonly if the procurenent rules meet the Bank's general requirenents ofeconomy and efficiency.

Disbbsemet Hadbook

16 Chapter 3: Disbursement Operations

3.17 Two major ypes of cofinancing are administered by the Bank:

0 Trust Flunds held by the Bank. The Bank may hold the donors'funds pending disbursement. Many bilateral donors use thisarnangement Payments are then executed by the Bank on receiptand approval of withdrawal applications. Many donors agree todeposit the full amount of their contribution upon approval of thetrust fund. Payment may sometimes be delayed, however, if adonor has stipulated that funds will be paid into the trust fund ona periodic basis.

O Finds held by the donor. In these cases, donors request theBank's assistance in reviewing applications and determiningeligibility for financing, but they execute their own payments. Inthese cases, the Bank sends telex payment instructions or SWIFTmessages (see par. 4.13) to the donor advising that payment maybe made. In cases where donors require copies of withdrawalapplications and summary sheets, the loan agreement will normallyspecify the requirement.

Note: If a donor has not agreed to use the Bank's stanudd wihidrwal forms,special requirements are oudined in the disbusment letter.

3.18 Individual donors may follow slightly different practices than the Bankwith respect to postponement of closing dates, suspension ofdisbursements, and cancellation of loan balances.

3.19 This handbook does not cover disbursement procedures for trust fimdswhere the Bank acts as executing agency on behalf of the beneficiaryand enters direty into contracts with the suppliers of goods andservices. Questions regarding these trust funds (for example, trust fundsfor United Nations Development Programme projects) should bedirected to the Bank's Trust Fund Administrator.

Taxes and 3.20 The Bank does not finance customs duties and other taxes imposed byOther the borrowing (or guaranteeing) member country. This policy is appliedIneligible by selecting items to be financed and setting eligible disbursementExpenditures percentages so that the overall level of Bank financing excludes taxes.

ExPenditures In the case of imported goods bought locally, the Bank usually disbursesa percentage of the purchase price (generally stipulated in Schedule 1 to

Taxes the loan agreement) in order to avoid disbursing against duties or taxes.Similarly, the local cost component of contacts for works is usuallyfinanced at less than 100 percent to exclude taxes. For locally

Disbunenent Habooki

Chapter 3: Disbursemnt Operations 17

manufactured goods purchased directly from dte factry, no adjustnentto the disbursement percentage is made in order to exclude financing ofcustoms duties or taxes on imported components entering into the costof a final product.

Other Inelgible 3.21 The Bank does ;;ot nonnally finance the following:Items

o goods and services from nonmember countrieso items not within the project and category description defined in fte

loan agreemento items not procured in accordance with Guideines.: -Pmcwrement

under IBRI Loans and IDA Creds and consultancy services notcontracted in accordance with Guidelines for the Use ofConsuliztv by World Ban Borrowens and by The Word Bankas Execudng Agency and with the specific provisions in individualloan agreements

o payments made or due for goods, works, and services providedafter the closing date

o land acquisitions (although, in very rare cases, an exception maybe approved by Bank management)

o late payment penalties imposed by suppliers, unless the penatieswere incurred in connection with a disputed payment which wasunder arbitration

o excessive advance payments (see para. .13)o self insurance (see para. 3.26)

Fight and 3.22 Freight charges paid in foreign exchange for imported goods are eligibleInsurance for financing when goods are carried in vessels of member countries

(subject to restrictions outlined in pama. 3.24 in the ca of theFreight borrower's national lines). The Bank also finances freight charges on

Freight goods procured in a member country and shipped on a vessel dcardto a firm in a member country, regardless of ownership or registry ofthe vessel, so long as the freight was paid to that fim. In case of doubtabout eligibility, consult the Bank before incurring signficant charges.

Conference Lines 3.23 Freight charges on vessels from non-member countries may be eligiblefor Bank financing when the owners are full or associate members of aconference line, partiipate in the conference's revenue-sharingarrangemeats, and member country shipArng lines hold fte major sharein the conference. For example, these freight charges are eligible whenthe goods are carried by vessels of the following thre Conferences:

DI,bwzeu,wn Handheok

18 Chatr 3: Disbursement Opeations

O India/Paidstan Conferenceo India/Burma/Bangldesh/Sri Lanka Conferceo East Africa Conference.

National Lines 3.24 A borrower who wants to arrange transportation and/or insuranceexclusively by a national line or finn should invitc bids on both CIF(cost, insurance, and freight) terms, permitting shpping and insuranceby any eligible source, and on FOB (free on boar) terms CIF pricesare used to evaluate bids. The borrower can choose to contract on FOBterms and arrange freight and insurance with a national conpany.Disbursements would then be limited to the CIF price quoted by thewining bidder. If the cost of transportation and/or insrance is geaterthan that of the winning bidder by more than 15 percent, the eniretransportation and/or insurance cost must be borne by the borrower.

Local Freight 3.25 Local freight charges for imported goods are not eligible for BankCharges financing, unless provided for in Schedule I to die loan agement.

Insurance 3.26 The bomower, not the Bank, must be the beneficiary of insurancepolicies. Premiums paid in foreign exchange are ligible for Bankfnancing. Self insurance and premiums in local curency are ineligible,unless explicitly provided for in the loan agreement.

Disbunremt Handbook

Chapter 4: Generl Withdrawal Anrangements 19

Chapter 4

General Withdrawal Arrangements

-General 4.1 The Bank's Alcls of Agreement require it to ensure that loanInformation proceeds are used only for the purposes set out in the loan documents

and that the financed goods and services are procured with due rgardto economy and efficiency and are suitable and satisfactory for theproject. The Articles further stipulate that funds may be withdrawn onlyto meet prcject expenses as they fall due. The disbursement proceduresdescribed below have been designed to ensure compliance with theArticles.

4.2 Borrowers normally send applications for withdrawal or for specialcommitments directly to the Loan Departnent in the Bank'sheadquarters. Applications should not be sent to other Bankdepartmnents. Sometimes the Bank arranges for borrowers to sendapplications to World Bank resident or regional missions for partialprocessing. This may be agreed to help borrowers comply withdisbursement requirements, follow up on problems, and answer routinequeries. Disbursement letters specify any such special anrangemeints.

Types of 4.3 The loan agreement (nonnally in Schedule 1) specifies the percentagesExpenditure of expenditures to be financed and provides the legal definitions of those

expenditures.

O Foreign expenditures are expenditures in the currency of anycountry other than that of the borrower (or guarantor) for goodsor services supplied from the territory of any country other anthat of the borrower.

O Local expenditures are expenditures in the currency of theborrower (or guarantor) OR expenditures for goods or servicessupplied from the territory of the borrower (or guarantor). Underthis definition, previously imported goods purchased from a localsupplier or the services of a local consultant are considered localexpenditures even if invoiced in a foreign currency.

O Ex-factory expenditures are expenditures for goods manufacturedin the borrower's country which represent the price at the factorygate excluding any transportation costs and excise ormanufacturing taxes.

The percentage of expenditures eligible for financing from the loan isapplied to each invoiced expenditure as payments become due.

Disbuwsensm Handbook

20 Chapter 4: General Withdrawal Arrangements

Retroactive 4.4 The date tie supplier was paid for goods or serc detmine theeligibility for payment from the loan account. Nonnally, payments madebefore the loan agreement was signed are not eligible for fincing. insome cases, however, Schedule I to the loan agreement contains aretroactive financing provision-a specific authorizaton to financeeligible expenditures for which payments have been made before theloan signg date. This authorization identifies the amount, category (ifthe provision does not apply to all categories), and date from whichexpenditures are considered eligible. A separae withdrawal applicationclaiming reimbursement for any such expenditures should be submittedto the Bank promptly after loan effectiveness.

Disbursement 4.5 Two disbursement procedures may be used for withdrawing fiuds fromProcedures a loan account:

o Withdrawal Procedure (Form 1903)O Special Comniitment Procedure (Fonn 1931)

Payment may be made to the borrower or direcdy to a third party(usually to a supplier or consultant) for goods, works, and services,using an Application for Withdrawal (Form 1903) (see paa. 4.11 andAnnex 6). Alternatively, payment may be made to a commercial bankfor expenditures against a World Bank Special Commitment coveng acommercial bank's letter of credit, using an Application for a SpecialCommitment (Form 1931) (see part 4.18 and Annex 7). Bothprocedures require supporting evidence that the funds are used propedyaccording to the loan agreement. Borrowers frequently use acombination of both procedures for disbursements from a loan account.

Obtaining 4.6 A supply of printed application forms and summary sheets is sent to theAppLication borrower with the disbursement letter. Forms are available in English,Forms French, Spanish and Portuguese. Contact the disbursement officer in the

Loan Departnent when additional supplies are needed.

Note In countries where the Bank has a Resident Mission, supplies -enormally available drough this office.

The Process of 4.7 To be eligible for payment, all applications for disbursement require theWithdrawing followng:Funds 0 compliance with the loan conditicns

0 submission of the specimen signate of the person(s) the borowerRlFequiD8U authorized to sign the application

DFIWOU Handbook

Chapter 4: General witxdrawal Arangements 21

O submission of an original application (photoop or fACiMile notaccepted) plus one copy signed by an authorized representative,which indicates the amount to be paid along with foil istuctofor payment I

O documentation (mcluding evidence of procumement) showing theeligibility of the goods, works, or services

o sufficient funds in the specific disbursement category of the loanaccount to cover the payment or commitment

Alterations on application fonns should be kept to a minimum, and anymatrial alteations should be iniialled by authorized officials.

4.8 After the Bank approves each witdrawal application, based on theborrower's request it will either:

o disburse to the borrower or a specified third party, oro issue a Special Commitment to a commercial bank.

Note If for any reaso an application or pan of it is not approved, the Bflkpromptly notfies the brwer and gives the rean fir recjtion l

Minimum 4.9 For each loan, the Bank stipulates a minimum application value in theApplication Size disbursement letter. This value varies among loans depending on the

sze of the loan and the nature of the project Borrowers shouldagregate eligible expenditures until they reach the minmum value forapplication. The absolute minimum for any loan is normally US$20,000equivalent. Where there is a Special Account (see Chapter 6), theminimum value is generally between 10 and 33 percent of the totaladvanced to the account Special Account replenishment applicationsshould be submitted at intrvals specified in the disbursenent letter evenif less than the minimum application value has been used.

Numbering 4.10 All applications should be numbered sequendally beginning with theSystem number one. If more than one agency is authorized to submitfor Applications applications, each should identify its applications with a short alphabetic

code (for example, MF-l Ministry of Finance No. 1).

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22 Chapter 4: General Withdrawal Arrangements

Application for 4 .11 The Applicafion for Withdrawal-Form 1903 is used for the following:Withdrawal(Form 1903) 0 reimbursement of payment(s) already made by the borrower from(Form M) its own resources

O advance to a Special AccountO replenishment to a Special AccountO direct payment to a third party for amounts due

If a withdrawal is required for payments already made, reimbursementgoes to the borrower or the project entity (or to the Special Account)depending on the source from which the payment was made. Supportngdocumentation provides evidence of payment For diect payment, thepayment goes to a third party, and supporting documentation showsevidence of amounts due. Annex 6 gives examples of such applications.

4.12 When only one or two items are covered by an application-typicallythe case for direct payments to suppliers-the Application forWithdrawal and supporting documents are submitted to the Bank withoutsummary sheets. Usually, however, requests for reimbursement involveseveral items from one or more categories. in these cases, summarysheets are used.

4.13 Applications for Withdrawal should be submitted to the Bank induplicate (that is, the original plus one copy). See Annex 6 forinstructions on completing the form. Payment instructions must showthe complete name and address of the payee's bank, the SWIFT code(for banks that belong to this system), the account number and name asthey appear on the account, as well as any references (such as invoice,purchase order, or contract numbers) to ensure proper identification ofthe payment. In addition, if the payee's bank is not located in thecountry of the currency of payment, the name and address of the bank'scorrespondent in ECat country should be provided. Separate applicationsare required for each currency requested. Nornmally disbursements aremade by electnic transfer to banks. Only under exceptionalcircumstances will the Bank approve payment by check.

SWIFT: A financial mesgng stem used by the Society for WorldwideInterbank Financial Telecommunications. Ihe Bank is a member of SWIFT, asare many major commenci banks and financial insitutions.

Summary Sheet 4.14 Summary sheets should be attached to the application if the spaceprovided on the Application for Withdrawal is insufficient toaccommodate contactor/supplier data. Separate summary sheets arenornally used if expenditures cover more than one category or

Disbwsnefl Handboot

Chapt 4: General withdrawal Armngements 23

subproject Altntively, one summary sheet may be used provideditems are grouped by category and subtotals provided for each category.See Annex 6 for a sample summary sheet along with instuctions forcompletng it. Special forms must be used when applications aresubmitted without documentation under the Statenent of Expendiure(SOE) procedure. (See Chapter 5 and examples in Annex 8.) TheseSOE forms are ilored to the project expendiures they are to cover,and instructions for their use are included in the disbursement letter.

Note: When contacts includoice adjustmntprovisis (see pam 8.12), tothe extet possble summary shaes should differniate betwenpats related to the base contiact pee and those Mated to priceadjustment (escladon) provisions.

Docmentdon 4.15 In general, the documentation required to support disbursements dependson the type of exenditures involved.

4.16 If the Bank needs full supporting documentation (as is the case forpayments again contracts above the SOE limit described in para. 5.5),two copies of contracts or purchase orders should be sent to the Bankfor review by the designated task manager before submitting the firstrlated application. One copy of each of the following supportingdocuments is normally given to the Bank with the withdrawalapplication:

o Supplier's or consultant's invoice, or a summary statement ofworks performed signed by the supervising engineer or otherautho&ied official

o Evidence of shipment (for equipment and materials purchased).This can be one of the following:

* copy of the bill of lading* forwarder's certificate

o Evidence of payment (for reimbursement). This can be one of thefolowing:

* receipted invoice or formal receipt* commercial bank's report of payment

o Performance secunty such as a bank guarantee in the case ofadvance payments if required under the terms of the contract, orwhere an unusually large advance payment is made

Documents should be assembled in the same order that the items appearon the summary sheets.

Disbmranenet Handbook

.24 Chapter 4: General Withdrawal Arrangements

Noe: If disbummnts a we made agains a Statmt of Expeditue, followd tb procodure described io Cbapt 5.

4.17 Claims for payment of commercial bank charges, or for feight,insurance, and other importation expenses, should be presented such thatthe Bank can relate each item to the specific goods financed.

Application for 4.18 To fince the purchase of goods under a project, the borrowera Special frequently needs to open a letter of crediL If a commial bank isCommitmet unwilling to open, advise, or confirm the letter of credit without some(Form 1931) guarantee or security, the Bank, at the request of the borrower, canprovide the commercial bank with the guarantee it requires in the form

of a Special Commitment This procedure normally covers majorLetter of Credit contracts for imported goods.

4.19 Under this procedure the bormwer asks the Bank to issue to thecommercial bank, normally in the supplier's country, its SpecialCommitment agreing to reimburse that bank for payments made or tobe made under the letter of credit Such commitments by the Bank areirevocable even though the Bank loan may later be suspended orcancelled. The Bank charges no fee for these commitments.

Documentation 4.20 A borrower wishing to use this procedure sends the Bank an Applicationfor a Special Commitment (Forn 1931) in duplicate-that is, originalplus one copy (ustructions for completing the form are at Annex7)-supported by the following documents:

O Two copies of the contract or purchase order (unless this documentwas previously submitted to the Bank)

o Two copies of the letter of credit (with valid expiry date) that thecommercial bank proposes to issue

When approved, the Bank sends the Special Commitnent on Fonn 2018(see sample in Annex 7) to the commercial bank that will negotiatepayments, together with a copy of the proposed letter of credit. A copyof the Special Commitment is also sent to the borrower. Thecommercial bank's first request for payment under the SpecialCommitment constitutes its acceptance of the terms and conditions ofthe Special Commitment.

Payment Claims 4.21 Promptly after each payment or negotiation of documents by thecommercial bank under the letter of credit, the commrcial bank claimspayment from the Bank-preferably by SWIFT, ele, or cable, to

Chapter 4: General Withdrawal Arrangements 25

ensure prompt payment. Altenatively, the commercial bank may senda request for payment by mail using a Speal Commitment Request forPayment (Form 2015). (See Amnex 7 for a sanple payment claim bytelex, an example of Form 2015 and instructions for completing it). Asnoted in the Special Commitment, the Bank will make payment within30 days of receipt of an acceptable payment claim.

nNote: ees, common, and e chags orexpoases in cononv withNot the leter of credit ae not covered by te Spocial Commitmet

Managing 4.22 Commercial banks that receive the Bank's Special Commitments mustSpeal advise the Bank directly of all amendments to the letters of credit. TheCoitments following amendments to letters of credit must be approved by the Bank

in advance:

o Amendments which change the value of the letter of credit, thedescription or quantity of goods, or the beneficary

o Amendments which extend the expiy date of the letter of creditmore than six months beyond the original expiry date or beyondthe loan closing date, whichever is earlier

o Amendments which permt an advance payment of more than 25percent before the goods are shipped.

These requirements are specified in the text of the application, as wellas in the Special Commitment itself. Commercial banks must also notifythe Bank of any change in the negodating bank.

Lmitation 4.23 Since the loan amount is limited, each Special Commitment has aClauses limitation clause specifying the aggregate limit, in the currency of the

loan, which the Bank is obligated to pay. (See Annex 7 for an exampleof the full text of this limitation clause.) In computing the limitation,the Bank uses the current exchange rate, with a margin to cover normalcurrency fluctuations.

4.24 The Bank's policy is to retain sufficient funds in the loan account tocover all outstanding Special Commitnents fully. The Bank reviews thelimitation clauses of its Special Commitments routinely and increases thelimits where conditions wanrant, if uncommitted loan funds areavailable. Borrowers who request Special Commitments agree in theapplication form dtat if, because of this limitation clause, the Bankcannot disburse the full amount needed to make payments aganst theletter of credit covered by the Special Commitnent, any uncommittedportion of the loan may be disbursed to cover the deficiency. If the

Dbbnncnt Handbook

26 Chapte 4: General Withdrawal Arrangements

uncommited pordon of the loan is insufficient to cover th,e deficiency,the borrower must arrange to maie payment to ffie bank holding theSpecial Commitment promptly afte receiving the Bank's notice.

Loan Closing 4.25 The Bank does not issue Special Commitments for letters of credit withDates and Letter vaidity beyond the loan closing date, or for letters of credit whoseof Credit Expiry vaidity has already lapsed. Similarly, the Bank will not approve anDates amendment to a letter of credit covered by a Special Comnitment if the

expiry date is later tman the loan closing date. (See para. 2.13 for detailson extending closing dales.)

Note: Even where leens of credit are expected to be covered by SpecialCommitments, it is prdent for suppliers to obtain owt creditinsurce coverage.

Tips to Avoid 4.26 Borrowers and the Bank both want applications to be processed asD)lays in quickly as possible. The Bank has been able to minimize its processingDisbursement time, but incomplete or inaccurate withdrawal applications cause many

delays. The detailed instructions given in ffiis handbook should befollowed carefully. To further expedite the disbursement of funds,borrowers should design internal procedures which provide promptaccess to loan funds.

4.27 To avoid the most common delays in disbursement:

o Forward copies of contracts to the Bank's task manager prompdyafter they are signed.

o Cite the date of the Bank's 'no objection" notice for contactsabove the procurement prior review limits specified in the loanagreement (see para. 8.2).

o Make sure that applications are signed by authorized officials. Besure to advise tfie Bank of changes in authorized signatories.

O Be sure to identify completely the currency of payment (Morethan 25 countries use the dollar sign.)

o include complete payment instrucdons.O Ensure consistency between information on the application and

supporting documents.O Include all necessary supporting documents (see paras. 4.16 and

4.20).0. Include adequately reconciled bank statements to support requests

for replenishment of Special Accounts (see para. 6.18).o initiate timely action to reallocate funds between categories, or to

extend loan closing dates where necessary (see panas. 2.13-2.16).

Disbwueat Handbook

Chapter 5: Withawal Arrangemets for SOEs 27

Chapter 5Withdrawal Arrangements

for Statements of Expenditure (SOEs)

Purpose 5.1 Under the Statement of Expenditure (SOE) method, the borrowerforwards to the Bank an aplication for reimbursment of paymentsalready made using an Application for Withdrawal (Form 1903) withSOE forms as the only supporting documentation. SOE forms must setout the appropriate details for each prqject The borwer or projectentity keeps the supporting documents, including contacts andprocurement documentation, and- evidence of payment in a centallocation for examination by independent auditors and Bank staff duringsupervision missions. The SOE method is used to reimburse theborrower when documentation would otherwise be cumbersome orvolminous (for example, expeditures on civil wor caried out byforce account, operating costs, small agricultural subloans, or paymentsagainst small contracts or purchase orders).

Criteria for 5.2 In order to consider disbursments against SOEs, the borrower mustUsing the SOE have the following:MethodMethod ___ o administrative and accounting capability to prepare and maintain

SOE records and make thiem readily available for examinatdono adequate internal controls and arrangements for regular and

independent audits of SOE records

Limits for 5.3 An explanation of the disbursement arrangements is included in theUsing SOEs disbursement letter for-all projects. These arangements are tailored to

the project items, and discussed with the borrower at negotiations. Thedisbursement letter indicates the types of expenditure for which SOE useis required, and, where appropriate, the contract value below whichSOEs are to be used for selected activities. The contract limits for useof SOEs will vary depending on the tpe of expenditure. For contractswith values above these limits, all related withdrawal applications mustbe accompanied by full supporting documentation.

Note: Eligibility for using SOEs depends on the tota value of ffieconact-not the amount of an individual payment in the case ofsubproiects under loans to financial intermediaries, SOE limits may notexceed the limit specified in the loan agreement for subprojectapproval by the Bank

Disbusrnet Handbo

28 chlpte 5: Withdrawal Arngements for SOEs

SOE Forms 5.4 Sptl SOE forms are designed for each project, depending on tenature of the expenditures to be financed. These fonns vary from oneproject to another. In some cases, extensive information is required onthe origin of goods, total contract value and individual amounts paid tosuppliers. In other cases, the Bank may agree to lump ex ditresunder broad headings, or to accept the top level of summarization ofseveral reporting layers. Samples of SOE forms are given in Annex 8.However, the specific forms for each project are attached to thedisbursement letter.

Note: Where extensive detail is required in SOE form, bonowess -encouraged to sbmit SOEs on a oomputer spreadsheet in anappropuitsformat. The Bank will accept this information in Excel, Lots, dBas,or any other commonly used spreadsheet software, on 31-inch or S%-inch floppy diskettes.

Relationship of 5.5 SOE limits are set at or below procurement prior review limits, since

SOE Limits to the Bank reserves the right to review proposed procurement decisionsProcurement for larger contracts before borrowers award contrCtS (see Chapter 8).ISior Review In some cases loan agreements also provide that the first few contactsPior R of a specified type are subject to the Bank's prior review regardless ofLimits their value. For those contracts where the Bank requires use of SOEs,

procurement documentation and contracts should be retained as outlinedin para 5.9.

Adiustment 5.6 Adjustment loans usually involve financing of general imports withLoaMn simplified procurement procedures as outined in Guideines:

Procurement under IBRD Loans and IDA Creds (see Chapter 8).SOE contract limits are generally set at higher levels than for investnentprojects in line with the simplified procurement procedures. Forcontracts valued above the SOB limit specified in the loan agreement ordisbursement letter, applications must be submitted with full supportingdocumentation as described in Chapter 4.

5.7 For contracts falling below the SOE limit, the Bank may agree thatcustoms declarations giving evidence of importation of goods may beused as the basis for preparation of SOE forms. Acceptance of customsdeclarations depends on the Bank's assessment that the procedures fortheir preparation are acceptable and consistendy applied. In some cases,pre-shipment inspection certificates may also be required. Wherecustoms declarations are used as the basis for SOE preparation, loanagreements normally specify that the date of importation determineseligibility. Summarized customs statements that include details of each

Dsirbaxemnt Handbook

Chaptr 5: Withdrawal Afrangements for SOEs 29

transaction (name and country of supplier, name of importer, briefdescription of goods, unique identifying number such as the customsdeclartion number, currency and amount paid) must be submitted withthe SOE.

5.8 Standard supporting documents (see para. 4.16) may be used as thebasis for SOE preparation in loans where the Bank has not agreed to theuse of customs declarations for this purpose. In some cases the Bankmay also require that borrowers include Bank codes for classifyingdisbursements (see Annex 5).

Audit 5.9 Ioan agreenents require that borrowers maintain separe records ofRequirements amounts withdrawn on the basis of SOEs. Borrowers must also retain

independent auditors (see Chapter 9) to give a separate opinion or carryout a separate audit on the adequacy of documents and controls on theuse of SOEs. Copies of audit reports must be subniitted to the Bank bythe date specified in the loan agreement. If the borrower does notcomply with audit requirements, the Bank may exercie its right todiscontinue use of the SOE procedure or to suspend disbursements. TheBank may also reject withdrawal applications for expenditures fallingwithin defined SOE limits, even if they are accompanied by fillsupportng documentation.

5.10 For investment loans, and for adjustnent loans where use of customsdeclarations has not been agreed, the borrower or proect entity mustretain all documentation (contracts, procurement documentation,invoices, evidence of receipt, and evidence of payment) related towithdrawals made using the SOE method in a cenhtal location for theperiod specified in the loan agreement Suitable cross-referencingsystems which allow easy retrieval of these documents are essential, asthese documents must be readily available for review by auditors andBank missions. Currently, loan agreements require the borrower toretain these documents for one year after the Bank has received theaudit report for the year in which the final disbursement was made.

5.11 For adjustment loans where customs declaratons have been accepted asthe basis for preparation of SOEs, the individual customs declaradonsmay be retained by customs authorities. Auditors and Bank missionsreviewing consistency between SOEs and these declarations must alsobe permitted to review the importer's records in order to examine otlerunderlying documents.

:Disbmnmwa Handbook

30 Chapter 6: Withdrwal Ainngements for SAs

Chapter 6Withdrawal Arrangements for Special Accounts (SAs)

Purpose 6.1 Special Accounts are revolving accounts finded with an advance froma Bank loan and used exclusively to cover the Bank's share of eligibleexpenses in both local and foreign cufrencies. Full and prompt accessto the Special Account to make eligible payments is essential. Theprimary objective of the Special Account is to help the borrowerovercome cash flow problems and speed disbursements in the followingways:

o makdng funds readily availableo reducing the time for processing paymentso reducing the number of withdrawal applicationso giving the borfower greater control of payment informationo reducing the number of documents to be sent to the Bankif ithe

Bank has also authorized the Statement of Expenditure (SOE)method of withdrawal (see Chapter 5)

6.2 This method of withdrawal provides for an advance disbursement fromthe loan to be deposited into a Special Account for use by the borrowerto finance eligible expenditures under the loan. Each loan using thisarrangement has a covenant govening the currency and location of theaccount, and a schedule governing its opation. The borrower opensthe account which is maintained in a fully convertible currency. Theproject entity can make payments from the account to contractors,suppliers, and others to cover the Bank's share of -eligible expenses. TheSpecial Account is replenished regularly to maintain adequate funds (seepara. 6.14) by submitting an Application for Withdrawal withappropriate supporting documents. Towards the end of loandisbursements, the Bank initiates a recovery procedure to obtain fulldocumentation for the amount of the outstanding advance (see paras. 6.9and 6.20).

Legal 6.3 The legal requirements for establishing a Special Account are agreed atRequirements negotiations, set out in the loan agreement, and further explained in the

disbursement letter. They include a definition of the Special Account(initially called a special deposit account in the loan agreement) inwhich funds are to be held, its location, currency, and maximumamount (the "aufforized allocation"), together witfi requirements foradvances, replenishment size and frequency, audit, and recovery of theadvance.

Disbmem Handbok

Chapter 6: Withdrawal Anrangements for SA 31

Location of 6.4 The Special Account is normaly held in a commercial bank, althoughSpecial cerain circumstances may require it to be held in a central bank orAccounts other financial institution. The institution holding the Special Account

-___________ must be able to

o execute foreign exchange and local currency transactionsO open letts of creditO handle a large number of transactions promptlyO issue prompt and detailed monthly bank statements

The borrower is responsible for selecting the institution to hold theaccount, for indicating clearly the special nature of the account byinforming the institution that the account is a special deposit accountbeing financed by the World Bank, and for agreeing on the specificcharges and interest payable on balances in the account. The institutionselected must also, however, be acceptable to the World Bank (see para.6.10).

Currency of 6.5 The currency in which the Special Account is to be maintained is agreedSspecial at loan negotiations between the borrower and the Bank, and is specifiedAccounts in the loan agreement. The account is normally maintained in a fully

convertible and stable currency widely used in intenational trade for thefollowing reasons:

o The SA can be used to cover eligible expenditures in both localand foreign currencies.

O Reductions in SA value occur if it is denominated in a curencythat devalues.

Boowers are encouraged to select different currencies for differentSpecial Accounts to ensure a mix of currencies across the borrower'soverall Special Account portfolio in a number of loans.

Note: Even Special Accounts in stable ccei'eertible currencies suljectborrowers to exchange risk. Whe funds ae advanced, the borrwerasset (the SA) is denominated in a single currecy, while the blorrwerliability (the coreponding obligation to repay he Bank) is in the mixof currencies making up the curcy pool, or in SDRs. To minimizethis risk, advances should be reicted to amouts cendy neoded forpiject ilemeion (see par 6.9).

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32 Cter 6: Withdrawal Arrangements for SAs

Operating the 6.6 The Special Acount must be used only for die Bank's share ofSpecial financing. In are cases, the Bank may allow a single account to beAccount funded by one or more joint cofinancing agencies (see pam. 3.15).

Bonrower counterpart funds must not be deposited in the SpecialAccount. Under no circumstances may funds in the Special Account beused in anticipation that counterpart funds to cover the borrower's shareof expenditures will shortly become available. Borrowers may, however,prefinance items from their own resources and then reimbursethemselves from the Special Account for the Bank's share of theseexpendites.

6.7 Funds advanced to a Special Account should only be withdrawn fromthe account as eligible expendirs are incurred. Balances should beconverted into other currencies only as payments are made in thosecurrencies. In exceptional circumstances, borrowers may draw anamount sufficient to meet selected eligible expditures for a limitedperiod (less than 30 days) if so authorized by the Loan DepartnentAdvances from die Special Account into other accounts established bythe borrower without Bank authorization are not permitted and constitutegrounds for refusal to replenish the account.

6.8 If several agencies are responsible for implementing the project, theborrower may designate a coordinating agency to gather the documents,reconcile the Speci Account, and subnit applications forreplenishment. If this is impractical, loan agreements may require theestablishment of separate Specal Accounts for differt project entities.

Authorized 6.9 The "authorzed allocadon" is the maximum amount that may beAflocation advanced into the account. It is normally calculated as the Bank's shae

of the four-month average of project expenditus to be financed throughthe Special AccounL This is not necessarily four months of all eligibleexpenditures, since certain disbursements (such as large civil workspayments or major equipment purchases) may be made under otherBank procedures. Partial advances may be made to the Special Accountas long as the aggregate amount advanced does not exceed theauthorized allocaticn. Borrowers are encouraged to consider partiladvances in the early stages ef implementation or during periods ofrelatively low expenditure when the fuol authorized allocation maynot be needed. Supplemental disburements can bring the SpecialAccount up to the prescribed ceiling as implementation accelerates.

Comfort 6. I) To protect the interests of borrowers and the Bank in Special AccountsLetters held in commercial banks, fte Bank requires a letter of comfort from

the commercial bank to assure that amounts deposited in a SpecialAccount will not be set off or otherwise seized or attached to satis

Disbu_ww Ho:dboot

Chapter 6: Wi'hdrawal Amangements for SAs 33

amounts due to the commercial bank by the bomwer. Such a leter isa precondition for the Bank to disburse the authorized allocation (seeAnnex 9 for an example). A single letter from the head office of acommercial bank covers Special Accounts opened by any bower atall branches of that bank. A borrower can consult staff of the LoanDeparUnent to find out whether a commeri bank being considered asthe depository bank for a Special Account has already provided such aletter. To ensure that the protection of the comfort letter applies to aspecific Special Account, the borrower must clearly state ta this is aspecial deposit acount at the time of establishment.

Access ad 6.11 The borrower is responsible for making appropriate arrangements forControl the project entity to have controlled, efficient access to fuinds in the

Special Account to finance eligible expenditures as defined in the loanagreement. Controls for compliance should not hinder projectimplementation or delay payment for these expenditures. Mostborrowers require two officials to auihorize each payment.

Advances and 6.12 The borrower submits an application to the Bank for the initial advanceto the account using an Application for Withdrawal (Form 1903). No

Replenish- supporting documentation is required, but the borrwer should cite them-ents clause in the loan agreement thfat specifies the 'authorized allocation'.

6.13 When maldng payments from a Special Account, the borrower isresponsible for following all procedures specfied in the loan agreenentrelated to prior and post review of bidding and contract documents. TheBank carries out its normal review of disbursement documentadon afterpayments have been made from the Sp&ial Account. If any ineligibleexpenditures are made through the Special Account-including thoseunaccompanied by justifiable evidence-the Bank may not make furffierdeposits into the Special Account untl the borrower has refunded thecorresponding amounts. However, if the Bank agrees, the borrower maysubmit evidence of other eligible expendirs paid from its ownresources which the Bank can use to offset the ineligible items.

6.14 Replenishment applications should be submitted regularly-preferablymonthly, after monthly bank statements are received and reconciled bythe project entity. While longer reporting intervals may be agreed, theintervals should not exceed three months. The disbursement letterspecifies the intervals at which replenishment applications should besubmitted for a specific loan (see Annex 2 for an example of such aletter). The borrower may be instructed to refund to the Bankamounts advanced to Special Accounts if they have been inactive formore than six months.

Disbwwne la

34 Cape 6: WiWitmIA Arrangeents for SAs

6.15 An Application for Wlthdrawal (Fornl 1903) is used to replenish theaccount. Summary sheets are designed to include any further relevantdata, such as exchange rates. All replenishment applications must beaccompanied by reconciled bank statements (see para 6.18). Normalsupporting documentation should be submitted with the aplicaiion (seepama. 4.16) if the SOE method has not been agreed uPOn.

6.16 Special Accounts should be used as much as possible to meet anyeligible prqject expenditures. The disbursement letter (see para 2.8 andAnnex 2) designates a minimum value below which al payments shouldbe made from the Special Account or letters of credit funded from theaccount. Payments above this minimum value may also be made fromthe Special Account, depending only on availability of funds in theaccount.

Note: The exchange rate prevailing at the time of vithlwal from the SpecialAccount should normally be used. In special cuan, the Bankmay agree to the use of exchange sates prevailing at the time localcurency payments were made to a supplier if withdrawls for theseexpenditures are made from the SpeIal Accout within 90 days.Disbursement letters stipulatewhen these specia asangements may beapplied.

Interest and 6.17 Since any amount advanced into the Special Account is considered aCharges disbursement from the loan, EBRD interest or IDA service charges will

accrue from the date of disbursement. To offset them, borrowerS mayarrange to earn interest on the unwithdrawn balance of the SpecialAccount. Since the Bank requires funds to be readily available, interest-earning commercial bank accounts may be the most appropriate fonn ofinvestment. Interest earned on account balances need not be reported tothe Bank, but should be used in accordance with the borrower's internalregulations. The interest paid by a depository bank should preferably becredited to a separate account. If interest eaniings are paid into theSpecial Account, the reconciliation statement must provide appropriatedeils (see para 6.18). Reasonable charges incurred from operating theaccount are eligible for financing from the loan.

Reconciling 6.18 Documentation submitted with applications requesting replenishment toBank a Specia Account must include related bank statements from the bank&atements holding the account. Bank statements must give detils of all

transactions and must be provided even when no transactions occurredduring the month. These statements must be reconciled against items

Disbwe'st Handbok

Chapter 6: Withdrawal Anrangements for SAs 35

included in replenishment applications. Any discrepancies must beexplained to the satisfacion of the Loan Department For promptprocessing, the project entity should provide appropriate cross-references to items included in replenishment applications. (See Annex10 for an example of a reconciliation statement.)

Suspending 6.19 No replenishments may be made to a Special Account during ajfadDisbursements suspension of disbursements (see para. 3.12). However, borrowers may

continue to use any balance in the Special Account to meet eligibleexpenditues. Applications documenting these expenditures should besubnitted reguarly to the Bank. These applications will be applied torecovery of outstanding advances. After suspension is lifted, the Bankmay agree to make further disbursements to restore a Special Accountto its original level. If disbursements are onlypaliaffy suspended, onlythose expenditures related to components or project entities not affectedby the suspension are eligible for replemshment.

Recovering 6.20 Before loan closing, the Bank must receive satisfactory documentationSpecial to show that the entire amount advanced was used to meet eligibleAccount expenditures. Recovery of the outstanding advance in a Special AccountAdvance usually begins

o when the undisbursed balance of the loan (excluding SpecialCommitments) is equal to twice the amount of the advance

o when the final date to submnit withdrawal applications is less thsix months away

When the recovery process begins, the Bank applies part of the amountdocumented in each replenishment application to reduction of theoutstanding advance. Recovery is usually made to maintain the 2-to-lratio. That is, for each $3 of documented eligible expenditure, the Bankreimburses the borrower $2 and applies documentation for $1 torecovery of the outstanding advance, thus ultimately ensuring fulldocumentation to cover the entire advance. The process can beaccelerated by advancing the cut-off point for recovery or by reducingthe payment-to-documentation ratio. If some withdrawals are madeoutside the Speial Account (such as payments against SpecialCommitments or direct payments to suppliers), the recovery ratio isappropriately modified to ensure that recovery is completed before theloan is fully disbursed. During the recovery process, the Bank notifiesthe borrower of amounts disbursed and amounts used for recovery foreach application processed, as weUl as the outstanding balance yet to bedocumented.

s eDibwenet Handbook

36 Cter 6: Withdrawal Arrangements for SAs

6.21 Where borrowers cannot prefinance imports, the Bank may agree to theuse of Special Accounts for adjustnent loans. For loans with lranchingarangements, Special Accounts are recovered if conditions for reeaseof subsequent tranches have not been met at the time replenishmentapplications are submitted. I necessary, new advances may be madeafter tanche release.

Cloig Special 6.22 Beu of the special characteristics of Special Accounts, and their linkAcowunts to World Bank funding, these accounts should be closed after the Bank

has received sadsfactory documentation showing how the amountsadvanced have been used. A bank statenent shownmg that the accountbalance has been reduced to zero and the account closed should beprovided along with the final application giving evidence of eligbleexpenditues

PMI Specia 6.23 Some Pioject Prepation Facility (PPF) advances provide for a SpecialAccounts Account. The same Special Account opened for the PPF may continue

to be used for the succeeding loan under which the PPF is refinanced.Any amount outstanding in the PPF Specal Account at the time the PPFis refin ced is treated as a partial advance of the authorized allocationunder the loan. This amount will be replenished from the loan afterdocuments with evidence of eligible nditures are received.

Audit 6.24 Loan covenants specify the auditing requirements for all projectRequirements accounts (see Chapter 9). Each annual audit should include a review of

Special Accowut records to ensure that flmds have been correctyaccounted for and used in accordance with the loan agreement.

Dirb anarem Hadok

Chapter 7: Disbursement Reports and Lan Repaynint 37

Chapter 7Disburement Reports and Loan Repayment

Disbursement 7.1 The aim of the Bank's reporting is to keep borrowers informed of tfieirReports loan status. Two documents help borrowers to update their reowrds:

o Payment Adviceo Monthly Disbursement Summary

Borrowers sholdd advise tfie Loan Deparument immediately if anydiscrpancies such as charges to the wrong category ar identfe.

Payment Advice 7.2 When the Bank ececutes a payment, the borrower is notified prompdyof all the details of the payment. The Bank mails to aU borowens andother authozed interested parties a computerefonm called aPayment Advice (see Annex 11) tat provides the following information:

o Loan numbero Application number (assigned by the borrower)O Value date of paymentO Withdrawal Authorization number (assigned by the Bank)o Category cagedo Currency and amount of paymento Exchange rate and the equivalent charged to the loan account in

the currency of commitment (U.S. dollars for IBRD lmns; SDRsfor IDA credits; U.S. doLlars and SDRs or other currencies fortrust funds)

o Undisbursed balance of the loan account

For payments over uS$1.0 million equivalent, the Bank notifiesborrowers by telex that the payment has been made, and that a PaymentAdvice has been mailed with all the relevant information.

Note: Cofinacing paruers who do not ask the Bank to hold diir funds inbt issue their own disbursement reports.

7.3 Bozrowers are asked during loan negotiations to provide names andaddresses of agencies that should receive copies of Payment Advices.The borrower must notify the Loan Departnent promptly wheneveraddresses change, or whenever new agencies should be added to the list.

Dfbw Hdbo

38 Chapte 7: Disbursement Reports and Loan Repayment

Monthly 7.4 Promptly after the monthly closing of its accounts, the Bank mails to allDisbursement borrowers and authorized parties a Monthly Disbursement Summary. ItSummary details aU hansactions that have occurred under a given loan in the

preceding month. (See Annex 11 for a sample Monthly DisbursementSummary.) The Bank automatically sends copies of MonthlyDisbursement Summaries to all agencies receiving mailed PaymentAdvices. Agencies that require less frequent information can receiveonly the Monthly Disbursement Summaries, if they so desire.

7.5 The two parts of a Monthly Disbursement Summary provide thefollowing information:

o Part One: Opening balance and list of all transactions under theloan during the previous month1 including all applications paid orrefunds processed, along with value dates, currencies and amountspaid, and amounts charged to the loan account

o Part Two: End-of-month balances for each category and for theloan as a whole, as well as amounts set aside to cover SpecialCommitments

Applicable 7.6 In making payments, currency exchanges are frequently required. TheseExchange currency exchanges are valued so as to assure all borrowers of equalRates (AERs) treatment in their transactions.Used to Value 7.7 The proceeds of loans and credits are disbursed in any cunrencyDisbursements available to IBRD or IDA. If the Bank does not have the requested

currency, it uses another currency. In such cases, the Bank buys therequested currency with another available currency (the cost currency)using the exchange rate (spot rate) quoted by the seling bank. Theamount disbursed is charged to the rective account in its U.S. dollaror SDR equivalent based on the currency in which the loan or credit isdenominated. For example, in order to make a payment of Japanese yenas requested in a borrower's application under an IBRD loan, the Bankmight use Swiss francs; the Swiss franc amount is charged to thecurrency pool, and the loan account is charged in the U.S. dollarequivalent of that amount.

7.8 The Bank uses the same exchange rate for all transactions in a particularcurrency on a given date: the Applicable Exchange Rate (AER). Thisis consistent with the provisions for valuation of currencies in theGenemrl Conditions Appliable to Ln wad Guarntee Agreements andthe General Conditions Appcable to Development Credi Agreements.The Bank establishes the AER based on the rate quoted by theInterational Monetary Fund for that day or on the rate quoted by thecentral bank of that country. For U.S. dollar payments, the Bank may

Disbbmsem Handbook

Chapter 7: Disbursement Reports and Tm Reayment 39

charge the loan account more or less than the amount the borrowerrequested if a difference occurs between

o the spot rate at which the Bank bought the requested currencyusing another available currency-tie cost currency

ando the AER between the cost currency and the U.S. dollar.

7.9 The following examples (and the Payment Advice at Annex 11)illustrate how a difference between the anount requested and the amountcharged occurs.

Example 1o The borrower requests payment of US$1,000,000.00, and the Bank pays

this amount to the beneficiary named in the applicaion.o The Bank uses Netherlands guilders to buy US$1,000,000.00 at a spot

exchange rate of 1.8721 Netherlands guilders to I U.S. dollar.O The Bank uses the AER of 1.8733 Netherlands guilders to 1 U.S. dollar on

the date of disbursement to determine the equivalent value of 1,872,100.00Netherlands guilders in U.S. dollars (or SDRs), as follows:

- 1,872,100 divided by 1.8733 = 999,359.42o The Bank charges the borrower's loan account with USS 999,359.42.

Exampl 2o The borrower request payment of US$1,000,000.00, and the Bank pays

this amount to the beneficiary named in the application.o The Bank uses Japanese yen to buy US$1,000,000.00 at a spot exchange

rate of 128.35 to 1 U.S. dollar.O The Bank uses the AER of 128.03 Japanese yen to 1 U.S. dollar on the date

of disbursement to determine the equivalent value of 128,350,000 Japaneseyen in U.S. dollars or SDRs, as follows:

* 128,350,000 divided by 128.03 = 1,002,499.41'o The Bank charges the borrower's loan account with US$ 1,002,499.41.

Repayg 7.10 This chapter gives very brief coverage on factors affecting repaymentLoans of loans, including summarized information on IBRD's Currency

Pooling System and variable interest rate. Borrowers may contact theLoan Accounting and Borrower Services Division of the LoanDepartment for a booklet titled "Debt Serving Handbook forBormwers' giving more detailed information about loan repayment.

7.11 IBRD loans are generally repayable over 15 to 20 years, with a graceperiod of 3 to 5 years. Their interest rates are related to the cost ofIBRD borrowing, and an annual commitment charge of up to 0.75percent is levied on their undisbursed balance. IBRD loans are made

Di-ubDsamm Handbook

40 Chapter 7: Disbursement Report and Loan Reayment

either directly to a member government or to an entity ganteed bythat government.

7.12 IDA credits are made to member governments only and are repayableover 35 or 40 years, with a grace period of 10 yean. (IDA credisapproved before June30, 1987 are repayable over 50 years.) They caryno interest, but there is an annual commtment cbarge of up to 0.5percent on the undisbursed balance, and a 0.75 pect servien chon the amount disbursed and outstnding.

7.13 Commitmnmt charges, service charges, and interest are charged atspecified annual rates. The Bank accrues these charges based on thedaily status of the loan.

7.14 Loan repayments are due semiannually. Borrowers' repaymentobligations are the folowing:

o For IBRD loans in the cufrency pool (see pata 7.16): their shar ofthe cost currencies disbursed and ouanding in the pool

o For IBRD loans not in the pool: the cost currencies disbursed andoutstanding on the loan

o For IDA credits: the value disbursed and outtanding in the currencyin which the credit was committed

7.15 Borrowers must repay the following currencies for amtizaonpayments:

o For IBRD currency pool loans: any cost currency disbursed andoutstanding in the pool

o For nonpool IBRD loans: any cost currency disbursed and outstadingon the particular loan

O For IDA credits: the currency specified in the credit agreement (anyone of three currencies offered by IDA at the borrower's choice-U.S.dollars, French francs, British pounds sterling).

Currency Pol 7.16 All Bank loans negotiated on or after July 1, 1980, are included in theCurrency Pooling System. Some earlier loans have also been includedin this system by amendment, at the request of borrowers.

7.17 This system equalizes the risks of curren fluctato among allborrowers at a given time in the following ways:

o By pooling all currencies disbursed and outstanding on participatingloans

° By expressing the outstanding principal amount of each loan as ashare of the pool

DbbwTeea Handbook

Chaptr 7: Disbursement Reports and Loan Repayment 41

The share of each loan in the pool is equivalent to the value of itsoutstanding principal amount divided by the aggregate value of theoutstanding pxincipal amounts of all loans in the pool. The CurrencyPooling System is not set up to eliminate the exchange rist It onlyassures that exchange rate changes affect all loans and borrowersequally.

7.18 Here is an example of how currency pooling works. Suppose that theCurrency Pooling System begins at zero and that there are only twoborrowers, Alpha and Beta, and two currencies, the deutsche.mark(DEM) and Japanese yen (QPY). Suppose the cross rate between the twocurrencies is JPY 70 = DEM 1.00. Suppose Alpha receives adisbursement of JPY 70 million and Beta receives a disbursement ofDEM 1 million. The Currency Pooling System in effect redistributeseach of the disbursunents to each of the borrowers according to itsshare of the pool. Thus, in this example each bonrower would owe theequivalent of JPY 35 million and DEM 0.5 million. Each loan in thepool continuously has exactly the same currency composition as everyother loan, and exchange rate changes affect each loan equally.

7.19 The Bank targets the currency composition of loans in the currencypooling system in order to improve the balance among tuhee mjorcurrency blocks. The target ratios for currencies in the pool are 1 U.S.dollar for every 125 Japanese yen and 2 deutsche marks (or theequivalent of 2 deutsche marks in a composite of deutsche marks, Swissfrancs, and Netherlands guilders). These five major currencies compriseabout 95 percent of the pool's value, with the remainder in othercurrencies. This practice removes most of the uncertainty about thecurrency composition of the pool, enabling borrowers to plan theirbudgets more effectively and facilita&ing hedging if borrowers wish totransform the nature of the exchange risk exposure inherent in theirloans.

IBRD Interest 7.20 The Bank lends most funds from its own borrowings. The interest rateRate paid by borrowers is related to the cost of the Bank's borrowings.

Borrowers benefit directly from the Bank's strong credit rating in theinternational capital markets, which allows it to borrow more cheaply.To arrive at the interest rate charged on loans, the Bank adds a marginof 0.5 percent to the cost of its borrowings. Intrest rates are currentlyadjusted semiannually. However, loan agreements allow the Bank tochange from semiannual to quarterly adjustments of the interest rateafter giving reasonable notice to borrowers.

Disburwn Handboo

42 Chapter 8: Proment of Goods, Works, and Services

Chapter 8Procurement of Goods, Works, and Services

General 8.1 Theprurent of goods, works, and ceatain types of services (suchInformation as drilling, aerophotographic suvreys, and mapping) are govemed by

Guidelines:Procurement wuder IRK) Lowanwd IDA Credits. The useof consultants' services is govemed by Gaideines for the Use ofCo ,aavatby Wodd Bank BoRnwens and by the World Rank a&recu*ig Agency. These guidelines document the Bank's r eqesfor procure=t and the use of consultants. The guiddines arecomplemented by detiled prvisions for their application to eachopeation which axe set out in the loan agreement. Those who preparedisbursement applications must understand fully these requirements sothat disbursements for procured goods, works, and sevces can be madeefficiently and promtly. Noncompliance with the procuremetprccedues and failure to send copies of contrcts promptly cause mostdelays in disbursement

No Objection 8.2 Within the Bank, the task manager for each project is responsible forNotices reewig procurement decisions. The borrower should send all

procurement documents, includihg final contacts, to the task managers.Each loan agreement specfies procurement decisions that are subject tothe Bank's review before contrat award, based on the value of thecontract Unless mentioned in the Procurement Schedule to the loanagreement, all consultant contracts are subject to the Bank's review. Thedate of the Bank's "no objection' notice for contacts above thereview limit for goods, works and services must be indicated in anyrelated application.

Procurement 8.3 In most cases, international competitive bidding is the most effectivemethod of procuremcnt. The Bank may allow preferences for domesticor regional manufacturers and, where appropriate, for domesticcontractors under certain conditions. However, sometimes inteatonalcompetitive bidding is not the most economic and efficient method. Insuch cases (see para 8.5) the borrower and the Bank agree to otherarangements.

Nutr-- The paricuar procedus for procuremnt an alwys provided inthe Procuremet S chdo th dlon agreme n

Dihmrd Handbook

Chapte 8: Procuremnent of Goods, Works, a wl evic~es 43

Intoentonal 8.4 The Bank's guddelines set out in detail the rangnts required forCompetitive inteenational competifive bidding (ICB). Among ot, dy cover dteBidding (ICB) folwing:

o type and size of contractsO notification and advertsingO pre- and post-qualification of biddersO bidding documentso bid evaluation criteria

The bidding documents for ICB should include, inter li, insconsto bidders, proforna conditions of contract, and ffie forms of thesecurities required (usually bid, advance payment and perbormanesecurities). Apart from the financial consdeations (see paros 8.8-8.18), bidding documents should cover the foilowing

o bid validityo standardso the use of brand nameso insuranceo price adjustmento liquidated damageso bonuseso force majeure

languageo settlement of disputes

OtherMethods 8.5 If international competitive bidding is not the most economic andOf efficient method of prouement or of implementing the prect, otherProcurement methods may be more appropriate. Examples of such procurement

arrangements are the following:

o limited international bidding (by direct invitation only)o competitive bidding adverised localy and following local

procedureso local or international shopping0 direc purchasingO commercial practices (where the loan proceeds are onlent to the

private sector)0 construction by force account

The apprpriate procedures for the categories of goods, works, andsevices are agreed between the borrower and the Bank, and are alnysreflected in the loan agreement.

.~~~~~~~~~~~~~~~~~~~buw Handb...;

44 Chapter 8: Procurement of Goods, Works, and Services

8.6 Procurement usually follows established commercial practices-if theyare acceptable to the Bank-in the foUowing circumstances:

0 when the loan provides funds to an institudon (such as anagricultual credit bank or a financial intermediary) to be onlent tobeneficiaries (such as farmers or small business finns) for thepartal financing of subprojects

o when the loan proceeds finance imports of the private sector (nadjustment operations)

Loan agreements usuaUy specify, however, that large value purchasesare subject to intemational competitive bidding.

Expenditures 8.7 Bidding documents always state that the proceeds of Bank loans areunder limited to payment for goods produced in, and services supplied fromContracts the territories of eligible countries. Hence, bidding documents require

the contractor or supplier to furnish the necessary data regarding thecountry of origin of the goods, works, or services for stafisticalpurposes, and to comply with this requirement.

Pricing and 8.8 Since bids may come from several countries, bidding documents alwaysCurrency of Bids state the currencies in which to express bid prices. These currencies

may be the following:

O bidders own currencyo currencies in which the bidder expects to incur expenditureso another currency widely used in international trade and specified

by the borrower in the documents.

The following are special cases:

o In contracts for the supply and installation of equipment, theborrower may require bidders to state the portion of the bid pricerepresenting local costs in the borrower's currency.

o In civil works, the bidding documents may require bidders to statebid prices entirely in the borrower's currency, with any foreigncurrency requirements expressed as a percentage of the bid pricefor each currency.

Currency of 8.9 Payments under each contract are normally made in the currency orPayment currencies in which the price has been statd in the successful bid.

However, if the bidder has shown the percentage of payments to bemade in other currencies (as in the civil works case above), theexchange rates for a reference date specified in the bidding document oras stated in the successful bid (if the bidding document is silent in this

Disbwwefl Han dboo

Chpter 8: Procurement of Goods, Works, and Services 45

respect), are used to maintain the value of the foreign currency portionsof the bid-without loss or gain.

Payment Tenns 8.10 Payment terms generally follow the normal commercial practice for thegoods, works, and market in question. They are staed in the contract.

8.11 Since the Bank is not a party to the contract, the contract should notrefer to it. Payments for goods, works, and services financed by theBank can be made by using the withdrawal procedures described inChapters 4, 5 and 6 of this handbooL

Price Adjustment 8.12 Bidding documents contain a statement and appropriate contract clausesClaus whenever prices are subject to adjustnent (upward or downward)

because of certain events. The contract price may be adjusted if thereare changes in the cost of major inputs of the contract (such as labor,equipment, and important materials), whether resulting from marketforces or changes in legislation. Usually no price adjustment clauses areincluded in contracts for goods to bK supplied, or works to be completedwithin one year, unless the market situation calls for it at the time.

Note: Tese provisions an sometimes caled price escalain clauses.

Advance 8.13 Advance payments to be made on signing the contract (for mobilizationPaynts and similar expenses) must be related to the cost of the goods, works,

or serces covered by the contract They should not be excessive:usually an advance payment of 10-15 percent is considered adequate.The bidding documents should specify the terms of any security (usuallya banker's guarantee) required for advance payments. Clauses should beincluded in the contact to deal -with otier advances, such as formaterials delivered to the site for incorporation in the works.

Performance 8.14 Bidding documents for civil works and for supplying and installingSecurity major plants normally require some form of performance security to

protect the borrower in case of breach of contract by the contractor orsupplier. This security can be the following:

O performance bond or bank guarantee (at the bidder's option), orO enough 'retention money" withheld for the contract, as specified

in the bidding documents, orO a combination of both

,~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~~~~~~DswmWHrbo

46 CaaW 8: Procurement of Goods, Works, ad Services

The performace security must last long enough beyond the esimatedcompleton date of die contact to cover the wanranty or maintnaneperiod specified in the contract, unless a separat securty is providedfbr this period.

8.15 In contracts for the supply of gcods, the suppler or manufctur mayhave to provide a bank guarantee, to guarantee perfornince andwaanty obligations. Otherwise, a reasonable amount of retentionmoney may be withheld, depending on the market conditions andcommercial practice for this type of goods. Bank guarantees are notrequired for consultant contacts.

RetentionMones 8.16 Retention monies (see pam. 8.14) become payable to the contractor orsupplier upon successful completion of the contrat, at the end of thewarranty period, or on another specified date (such as one year from thedate of the original invoice). Withdrawas from a loan account forretendon momes can be made only after the borrower releases the findsto the contactor or supplier.

8.17 Certain countries require govemment agencies to deposit retenionmonies in an escrow account to cover future payments. However, untilreleased, such deposits are not eligible for withdrawal from the loanaccount. If retention monies are deposited into an account that dtecontractr or supplier can draw upon after a speified period without dteborrower's approval, withdrawal may be authorized -but the Bankusualy requires additional security in such cases.

8.18 In following this policy, the Bank upholds the principle of avoidingdouble financing. In the event of default or noelrmance under acontact, the borrower uses funds from the escrow account or retentionmoney account to complete the works or to repair defects during themaintenance (or defects Liability) period. Such expenditures are theneligible for withdrawal.

Sectoral ad 8.19 The standard procurement procedures used for setoral and suctualStructural - adjustment loans are slightly different from those for investmentAjutment (project) loans. Intemnational competitive bidding applies to arge-volume

procurement, above a threshold specified in the loan agreement, but ICBUiS rulndes are modified by induding simplifications of the bid invitation

procedures, and the elimination of domestic and regional preferences.Bidders may also have to state the bid price in a single currency widelyused in intemational trade. Payments will then be made only in thatcurrency. Below the ICB threshold, procurement is normally carried outin accordance with procedures followed by the pnvate or public entityhandling the imports, if acceptable to the Bank.

Chapter 8: Procrment of Goods, Wors, anm Services 47

8.20 The Bank -may require tiade verification in any procurement under anadjustment operation. Under this procedure, acacedited agences certinvoices for the quality and quantity of each shipment. If interatalcompettive bidding was not used, the cerdifying agency may also veriaythat the pnce paid for the import was reasonabl.

Consultants 8.21 As for p ment of goods and works, the borrowe is responsible forthe process of selecting consultants. The procedures are diffeent,however, since the selection of consultants must take intD account theexperience of the candidates and the quality of the services they offer,rather than the price of their services.

8.22 The Dank's objectives in the selection of consultants are to ensure thattheir qualifications and the tenns of reference for their services areapproprie for the assignment, and that they are treated fairly.Accordingly, th,e Bank can approve or make comments at seveal stagesin the selection process. The Guidelines for consultants include detailson the following topics: -

O - types of assignments and consulting firmsO evaluation of performanceo role of domestic finnsO selection processo terms of referenceo cost estimateso contractso supervision

8.23 The most commonly used types of constltancy contract are those whichare time based (e.g. staff-month charges, plus other reimbursableexpenses, plus fee), or lump-sum. Contracts specify payment provisionsand many include clauses on price adjustment or contingencyallowances.

- - ~~~~~~~~~DbbwzeralfHiMo-:,

48 Chwter 9: Accounts and Audits

Chapter 9Accounts and Audits

Accounts 9.1 Bank lending operations, which may also involve cofinanciers, varywidely in nature, scope, and objeceves. Henoe, accounting systems andarrangements for accountability for resources vary widely. Thesearrangements are carefully considered during project preparation andappraisal, and the specific requirements to ensure accountability andadequate financial management of each project are always set out in theloan agreement.

9.2 The Bank's Atficls of Agreement require the Bank to ensure that loanproceeds are used economically and efficiently, and only for the statedpurpose. As a minimum, adequate financial and procurement recordsmust be consistently maintined from the start of the project, inaccordance with sound accounting practices, and subject to adequatecontrol and verification.

Audits 9.3 Project accounts must be audited each financial year by a competentindependent auditor acceptable to the Bank. The auditor is required tofurnish a written opinion and report indicating the extent to which thefnancial sttements and supporting information provide a true and fairview of the financial condition and performance of the project. Theauditor should also provide a separate management letter following thecompletion of the audit on any improvements required in the financialsystems and controls and improved use of resources. The audit reportsand annual accounts are sent to the borrower who in tum sends them tothe Bank's task manager by the agreed deadline after the close of eachfnancial year.

9.4 Auditors must also examine the records associated with Statement ofExpenditure and Special Account procedures (see paras. 5.9-5.11 andpara. 6.24).

9.5 Borrowers must submit audit reports promptly. If the auditing covenantsspecified in the loan agreement are not complied with, the Bank maysuspend disbursements.

Note: For more complete details on accounting and uiting requiemets forprojects and project entities, see Guiddens: fiuand Repoing awdAudiging ofPojects Fmwed by the WorldBant, a booklet publisbhdby the Bank.

Disbwwa, Handbook

Annex 1: Example of Schedule 1 to an IBRD Loan Agreement 49

Schedule 1

Withdrawal of the Proceeds of the Loan

1. Ie table below sets forth the categories of items to be financed out of the proceeds of the Loan, theallocation of the amounts of the Lon to each category, and the percentage of expenditues for items to be financed inach category.

Amount of the PercentageCategory Loan Allocated or

exressed.in U.S. Expenditwresdolr equivalent) to be Fnanced

1. Civil Works 50,000,000.00 50%

2. Goods Z7,000,000.00 100% of foreifnexpeditures. TOO%of-local expendiuure(ex-factory cost),and 90% of localexpenditur foritems procuredlocally

3. Subloans 6,000,000.00 75%

4. Consultants' Services 5,000,000.00 100%

5. Training 1,000,000.00 60% of localexpenditures

6. Refunding of Project 1,000,000.00 Amount due underPrpaation Advance Section 2.02(c) of

this Agreement

7. Unallocated 10.000.000.00

Total 100 000000

2. For the purposes of this Schedule:

(a) the term fireign expendibue" means expendiurw in the cunrncy of any country other ftan that ofthe Borower for goods or services supplied from the territy of any country other than that of theBorower, and

(b) the term local expenditre" means expenditures in the currency of the Borrower or for goods orservices sWpplied from the teritory of the Borrower.

3. Notwithstanding the provisions of paragraph 1 above, no withdrawals shall be made in respect of

(a) payments made for expenditures prior to the date of this Agreement, except that withdrawals, in anaggegate amount not exceeding the equivalent of US$500,000 may be made in respect of Category 4on accut of paymetrs made fior expenditures before than date but after June 30, 1990; and

(b) expenditures under Category 3 until the conditions specified in Section 3.05 of this Agreement have been

Dmbetment Handboo

.50 Ane 2: Example of a Disbuseent Leter

January 12, 1991

Minister of FinanceMaiistry of FinanceInldependence StreetCapital City, Ruta

Dear Sir.

Re: Loan 3000 RUR (Arcultmral Dement P>jot

This letter gives inscons on withdrawal of proceeds from the World Bank Loan for theAgricultura Devdopment Project once this Loan is declared effective. Copies of dte Loan and ProjectAgreeme dated Jamnary 5, 1991, and the Disburneuewt Handbook are enlosed. These keydocuemts, and this letter, should be copied to all staff involved in the proces of preparing witdrawalapplications. Sample application forms are attached, and additional supplies of these fms have beenseat tD you separately.

The DiHbuneet Handbook provides backgroud information, as well as examples ofwithdrawal forms and detaied instructions for their completion. I would like to draw your attention tothe sections of this handbook which are of particular relevance to this Loan, and to outline the specificlmits which apply:

(a) Authorized Signatures (Chapter 3, para. 3.4) are needed before disbursements maybegin and should be updated promptly whenever changes are necessary.

(b) Minimum Application Size (Chapter 4, part 4.9). The minimum application size forpayments directly from the Loan Account or for irssc of Special Commitments isUS$100,000 equivalent

(c) Special Account (Chapter 6). Replenishment applications should be submitted atmonddy inervals, and must include reconcged bank stements as well as otherappropte supporting documents.

(d) Statements of Expenditure (SOEs) (Chapter 5). Withdrawals are to be made on thebasis of SOEs for the fllowig items:

Force accoun civil worksCivil works contraus valued at less than US250,000 equivalentEquipment conacs valued at less than US$100,000 equivalentLocal htaiing programs

Sample forms are provided as attacments to this letter. If the right to use SOEs iswithdrawn, because of continued noncompliance with audit covenants, the Bankreserves the right to reject withdrawal applications foe reimbursement of expendiuresfailing within defined SOE limits, even if supported by ful documentation.

Dkhmcnew Hadbook

Annex 2: Example of a uement L 51

(e) Audit Requirements are spelled out in Section IV of the Loan Agreement. Please payparticular note to the requiemen for audit of the Special Account and of amountswithdrawYn on the basis of SOEs.

(t) Payment advices and monuly disbursement summaries (Chapter 7, pars. 7.2-7.5).These docmeas will be distrud to the addresses shown in this letter unless we areadvised of changes in your reqiment.

Schedule 1 to the Loan Agreement spells out the withdrawal caegore, and the percentageof eqpenditures eligible for financing against each category. This Schedule also stipulates the followingrequirments for disbursement purposes:

(a) Retroave Financing of Expnditures: Paraph 3(a) notes that reimbu maybe claimed for expendites made aftr June 30, 1990 filing within the limit ofUS$500,000 in connecdon with Cateoy 4. An application fr reimbursement of anysuch eenditres should be submitted prompdy aft effectiveness.

(b) Disbursement Conditio: Paragraph 3(b) provides that no withdrawals may be madeagainst Categy 3 (Subloans) uil a Subsidiary LoA Agreemen satsfacty to theBank has been ratified.

Pleas contact us if you have any questions about our withdrawal procedures, quoting Loan30-RUR as your reference.

Yours sincerely,

Isgdt

Disbursemet OfficerLoan Department

Attachments

cc: Project CoorditorMinistry of AgriculreMain RoadCapital City, Ruritania

Managing DirectorAgriculral Credit BankMain RoadCapital City, uritania

Dbiarwrsa Handbook-

52 Anex 3: Example of a Letter Designating Autoized Siatoies

ILetterhead]Mimistry of FinanceIndependence Street

Capit cityRurimtnia

February 9, 1991Intenationa Bank fbr Reconstruction

and Devedopment1818 H Straet, N.W.Washington, D.C. 20433

Gentemen:

Re: Loar. No. 3000-RUR (Agricultutal Develogment Project

For the purposes of Section 5.05 of the 'General Conditions Applicable to Loan andGuartee Agreements,' any one of the persons whose authenticated specmen signatr appear below isautoized on bebalf of the Borrower to sign applications for wvithdrawal under this loan:

Mr. John H. SmithMinister of Agriulte Specimen Simare

Mrs. Elizabeth T. JonesDeputy Minister of Agricultre Snecimen Signature

Mr. Harold R. BrownProject CoordinatorMinistry of Agriculture Specimen Signature

Al previous notices providing signatures of officials authorized to sign applications forwithwal under this loan are hereby revoked.

Yours truly,

Isgdi

N. P. WilsonMinister of Finance

Not:In the even haot abac applicafton is to be signed by mor than on official, the authoriaion letter muststat this clearly. If authrzed signatories are divided into two groups, and the signaur. of an officialfrom each group is required, this must also be clealy staed.

Dtvb-wmmnsf Handbook

Annex 4: World Bank Members, Abbreviation, and C cy Codes53

i .~~~~~~~~~~ci

059 ~AP AFAALB ALL

--JU 099R AL DZD157 ANG AOK

u d Barbuda 151 AD XCD

A u 062 AR ARSA=22L"a 045 AU AUDA t - 047 AUA ATSBahmm, lbe 128 BM BSDBahrin 124 BH BHD

123 BD BDTBar,adou 130 BAR BBDBlari. 167 BY BY

cw 002 BE BEPBec 148 BEL BZD

Beain Republic of 094 BEN XOFBhutan 146 BHU BTNBolivia 003 BO BOBBofwna 112 BY BWPBrazil 004 BR BRN

Bu a159 BUL BGLBuF P 089 BUR XOFBunmdi 104 BU BIPCameroon 090 CM XAPCanada 005 CAN CAD

Cape V"&lc 139 CV CVECentml Afria Repubbi 091 CA XAFChad 092 CD XAPChile 06 CH CLPChma 140 CHA CNY

ColombiaL 040 CO COPComoroa 133 COM KMPCongo oopie's Rep. of the 093 COB XAFCoda &ia 008 CR CRCCMte d'lvoirc 087 IVC XOF

Cypnru 078 CY CYPCzehoslovskia 010 CS CSKDeamut 011 DE DKKDjEouti 145 DJ1 DIPDommnic 142 DOM XCD

Dominin Repubic 012 DO DOPEcuador 013 EC ECSEstonia 163 Ee EEcEpt, Arab Republic of 014 BGT EGPElSalvador OIS ES SVC

Euatorial Guine 118 EG XAFEthIoPia 016 ET ETD

Fjji 120 PU FJDFhnd 046 Fl FIMFrnuce 017 FR FRF

Dbbwria*Haudlae*

54 Annex 4: Wodd Bank Member, Abbrevtions, and Curency Codes

___ gCo& C fAbbm

r Gabon 0. GA X"PG;ambia, fle 011 GM GMDGeranuy 054 GEt DEMGhan T067 GH GHCGrec= 018 GR GRD

Grenada 131 GRD XCDGuaaLa 019 GU GTOGuinea 103 GUI GNGuic-Bisanu 134 GUB GWPGuyan 110 GUA GYD

Haiti 056 HA HTGHondums 020 HO HNLHunuzy 149 HU HUFIceland 021 IC S1KIndia 022 IN INR

Indonesia 057 IN1lD [D)RIn, Islamic RepubEc of 023 IRN MRK.raq 024 IRQ IQD.elund 064 ItE IEPaIsael 058 IS uS

Italy 042 IT 1iL'I Jaia 086 114 JMDapan 053 JA JPY

Jordan 055 JO JODKampuchea, Democtic 119 KH KIHR

ICKashtan 170 KZ SUIR106 KE KES

%156 ia AUDKoa,-Rpublic of 061 KO KRWKuwait 085 KU IWDLao Peopk's Des. Rep. 075 LA LAK

Lebanon 044 LE LBPLcsotho 113 SO LSLLilberi 079 LBR LRDLibya 071 LBY LYDL. ithuania 164 LT SUR

Luxembourg 025 LU LUFMadagascar 098 MAG MGFMalauwi 107 MAI MWKMs1aksul 068 MA MYRMak=lOs 136 MAL MVR

Mali 101 MU XOFMalta 152 MAT MTLMarhall Islands 178 MH AUDMaurimaia 096 MAU MROMaurilius 114 MAS MUR

Mexico 026 ME MXPMongolia 161 MNG MNTMorocco 070 MOR MADMozambique 154 MOZ MZMMyanmar 052 BA BUK

Dkbmemeaf Handbook

A&-= 4: Wold Bank Mmbes, Abbrevios, and Curency Codes 55

OKtcy ME Abbainvwio

Nam" 160 NA ZAR077 NWP NPR

N ~~~~~~027 NE NNow Zoand 9076 NZ NZDNicas:ua 028 NI NIC

N 088 NIR XOFNlgriak 074 UNI NGNNony 029 NO NOKOman 121 OM OMRPakiatan 049 PAK PICR

Pwvmm B030 PAN PARPapxa New Guimea 132 PNG PGK

031 PA PYGPeru 032 PE PE[PEilppims 033 PH FNP

Pobod 034 POL PLZ073 Po FM

1i -127 RO OLRussia 171 RU StJR

Rwanda 105 RW RWFSio TomE and Puincipe 135 STP SIDSaudi Azui 065 SAU SARSalemi 031 SE XOFSCYCEciks 143 SEY SCR

SiM= Lema 084 SL SlUSi ao 109 Si SGDSotm=Wnds133 SOL SBDSomarm 082 SO SOSSouth Afiica 03S SA ZAR

Span 072 SP ESBSi Lankl 0S0 CE LKRSL Kim and Nv 153 SC XCDSL Lucia 141 SLU XCDSL Vimcat and the Grenadia IS0 SV XCD

Suditn 066 SU SDPSu 137 SUR SRGSwazilad 115 SW SZLSweden 051 SWEF SEKSw _iand 06D CH CHP

s JArab Republic 043 SYR SYP083 TA TM~048 THI 7HB

Tobp 060 TO XOF155 TON TOP

Trinidad and Tobyp 097 TR 1TD069 TUN 7ND041 TU TRL

uh CI00 UG UGXUbited Armb Fxainfts 125 UAE AED

DisbuFs--w - Handbook

56 Anex 4: World Bank Members, Abbreviations, and Currncy Codes

caunuy cuff Cnd cr__

United Kingdom 036 UK GBPUnited Stars 001 USA USDUrugy 037 UR UYPVanuZu 147 VA VUVVenezuela 039 VE VEB

VIetnam 063 VN VNDWesten Samoa 129 Wso WsTYemen, Republic of 158 YEM YERYugpolava 038 YU YUDZairc 102 ZR ZRZ

Zambia 108 ZA ZMKZimbabwe 144 ZIM ZWD

Notes:

Bank membership and currency abbreviations may change from time. This index showsmembership at July 1992. Always check a current list of Bank members, and verifycurrency abbreviations when in doubt.

Suppliers and contractors in Taiwan, China are eligible to compete in providing goodsand services financed under Bank loans.

Disbursemnrt Handbook

Anne 5: United States-Names of Stats and Abbreviaios 57

Abbrviation and State Name Abbreviation and State Name

AL Alabamat NE NebraskaAK Alaska NV NevadaAZ Arizona NH Now HampstireAR Arkansas NJ New JerseyCA Cadifora NM New Mexicoco Coordo NY New YorkCT Connecticut NC North CuaolinaDE DelafwareD NJ) North DakotatDC District of Columbia OH OhioFL Florida OK OklahomaGA Georgia OR OregonHI Hawaii PA PennsylvaniaED Idaho PR Puerto RicoEL Ellinois RI Rhode sl-andIN Indiana SC South CairorinaIA Iowa SD South DakotaKS Kansas TN TenneseeKY Kentucky TX Texa]LA Louisiana UJT UtahME Maine VT VermontMD Maryland VA VirginiaMA Massachusetts VI Virgin IslandsMlI Michigan WA WashingtonMN Minneota WV West VirginiaMs BEssissipp WI WisconsinMO Missouri WY Wyoming

MTf Montana

Note: Thi list includles state, terzitories, and othe legal subdivisions such as thre District of Columbia,

Puuet Rico, and the Virgin Islands.

58 Annex 6: Application for Withdrawal (Forn 1903)

*PLI&O 11 ,W. We*f DC 20432APLICATI09 Fr ROR *ITHe

1. Loss:mBeA Cos t_______t CDfimle EeL Nmq b :-

Stmiler Damwmwac Division FlUCA AILNO.: 05- or 14-

s P_ ~~~ _ X b 7^~3 ftd Ut ._____ __

W. Pusr Pe __________ _d r L_____er_0________ dA 11___r 1wNbe e Cm_ ___Thd Am

we Mir fw ths h tasf VW mmt ae uters Lo or Osweltumai eat LwAsAtd wtak mwChr uj

& NO. uS1dn -Im11 aol PWeIAS, inflOwsf fatm U's MAuf toWat Seem emw-ihrm The tsmudrolp.ed arnot aiddaet toWa mbtalla eIs for thb perpose m oft racpasOf of aw o~ lost niet or wait

a WA g1o1 umo elo,.adhp Oe npodm has leesor ws Whog prlmed hi r I it s Urm Of dhA AW|ewC .Wm sxpmtorOme i'e emi miss or -u inshy flo omm for gixS or nd.s from folb msCa For Saeehmms w rubrawowt Is bage oses an. fuoe St e b_pdep s Mt e domurmim

m aNowes soxw-in vn bs wad smidis For isiuow kV sm1hnr uS iftb fat at aw emvp linese_oomns. ha bon 1 e td so booSe on as i tl DE elW t

L d b W Et_fett" tteXer,l st. o U.sm ' S u fV Sems ftltwtfom V.LoomS pratttie heppimia s's rtnd Icwt U rs f tIsAn m*sunks lorei ambioures tio s boromult wm mpl U' adre k vIr Of GioS f - eat toS P-Poorui ar If1

DETAUS Or EBWITUE PAVLIBY INSTSUCTIls umeemy -s-t _If S d hw reAed or ff on-- 3 NOR AN D OAMI OF PAfYis BNK AND ACCOIUT MM_ine wds ID em Om am simle. o-gory. or mlAoepjsL NAM AND ADODlSS OF WNTIRACH OR SUPM

olf ifferea fromm pepe

SwF coam9. PAVEE NM AND OMIS

L PROCTar osEass cCNJlucr O PUKSASE GP OPdE AMD WE

(Or oe fe "to o dacne wmd

bI DA1E OF P _OCWJT NO-OtECTIW NOTICE_I_ola tfor prt. re _weds Ibdd

w NW E 1IfCP hooF GOODS. hl ea osM SEmrCES*hh is h 5 eman I. cone wd ad&m of b tur hutsheupii goE amasy viaes crrwy i ID be paid

di cUc miTiA sour OF CONtRACr

d1 TOTAL AAMIFITOP uMOMCS WI BY TOOS APPUCrATS -

bet of naSad ad flu debuadosulITCaI 1. SPECL PA1LdT ISIRUCTIIS AND MM IWFER S

7. WmARAWAL DETALS* CAIhOEG OR SIm-PROJCE'OFN

h PUIWITAGE CF EXPNUIWB TO IE FPANCIft T WOED SAM

NW CRRX Of aiyl

IZlbi_____________________ it_____________________________1_Nomet ofrtramer S%firW oel A d _p

aPR _mu d flaW at of Lammd Nepreessinhe81ST LPSICTICDO U LICAM TO AMOMS USUN ANOW

Forw nW.Id law st OaE

Aproved W/A m__

S~~~~~~~ps ;e_ IS405

Annex 6: Applicaion for Withdiawal (Form 1903) 59

Ilstructions for Completing Application for Withdrawal (Form 1903)

* Iimm.pnue ipcaiu for co rmd o pout ru bedh MM&aNe_ * C ete alleaterS I a= I iugh 1S.

* Whm cmpleed.check to aomma that do refenrm. smnwn. us etherdab am coma hebs painlg totem AnthnehS

ff sSummy heaig ud. 1514 7blnL ubuitd&emumn& the -. w.dmteypcoea amsntyWama.

jtmtueUeua Numabe. eaweud to mush., go AuuUestfmu few WRbdr

I. DUD LaaIlD Crmdk Numb. mm Iowa rgeunee (wmuter md idn.j a it appears ante ImaeCrudiAgrecarna.2. Cornioers Md. N.a Imea corlmicesa -om d rfcace, number (If o ayn dIrfont rl. In do emoi Ike. show Go 1mocd Wou Id

*nfrs atr (S-fofowedby S dig forTus Fumaa a 14- MinuS by 5 dik. ora odo_dr holeachig eSJ).3. AppHello.?U NumbWSer appications comsecubvcly, heghal with wuher -m (Irepeclive of .ppicmtio. type). Whom there a -usr m -m

hqulmakgtageey. - a p-rei lo MaStiIj .pplctiomu- hum w seb . (forez-h. NP I - bnMy fS.qE~ No. 1).

4. Elmes Pa. Give the curweaycsem awl anoeatto be -ai (in figure) (for auiple USD SO.OO.01).S. Mamma mi Aidsr . CestruterorSup$hier To ainnmpnyid Alemtllten.glveofthel ndla dds. Tbis cambeamima Nrktbtmeamm far

1a 9 (Peys Niami ASraC.

4.M bana Deint

(a) Co.Srat or Parehbe Order No. and IeSo Give full rercmac to csumi that the ceflflor peckeeoM cadrn be rem*l iffend.fc(W) USa .1P=resses No.OhJcl.Noets GivcdaaeofthcBRkt.se.objo4wwzdoeif awmdof tcohe e nact gotwhich preayexeth e

moemm sS Sbjeato _ the Banks pilt review.(e) Se" Dauiptil of Good.s. Workm, wrSeavie Give a brIef dacrmiptiern, foar examph. papaw. eledricu] equipmmct sbmuctim of sba chlt(d) Curncn and Total Amu of C_ ullab Give asrmy san, ml valfaot eeimn(usehdgay pike eaclationALe(a) Toald Ascota of lwauder Comer by 1Mme AppOclletom The value- of invoic documenting the apprmicale abeM tEa 100% irm doductet

ratio fmolb ma yet pSid md ewTer inlisib 5amwaf_i7. WjbdWmawmj DikE(a) CAtaptyor SmbproJaS Numbs Obtaindestegyg efemce hfm ScheshI lofdthelsmIC.udiAgre.m.L Sia .ap -mw-d-eforfimacil

4mahiuy lo. the n_ beraGviedfby dk.e piak when it wifyr the =Uproje.o(b) Pba.etqap of hpediubni toNeo Flouncedk

(5d By the Bamok Obtain fea,the appxewshl wzegoty of Schadule t or AideS .tofk LealCedkiAgrm(a) By Colnador OIf sy)i lba there ia jeiat finaaeig. give gme BanklCa.fiavaicirdisburscancatsato (forecxaiqic. WB 601. CF 40%5).

owwi ct 'NIL

L Pmm mm Adderm of Pees Zaek and Amo Numbe Give fadi wine us addse or th paemces bnk. which ma inclic a Bankeriflhde.igaefim ACoSSamSbEIth Nmecliii GivcthedSIFTcede Bif tlcebfmki a _eSWf .

IL P*he Pasma an Addies Give full ni md e t ne pau to hr ppoper iqdentifiction.It ) Cormpoude UakAddams Giv fl us silic u&erepaymsmts to he onae to a bank am located intheosamtyorihe curremey to be pad

For ample. paymmuto a CauinSla k bat I15 would beodie. toa eorrequdcmdtbauk inthe Unite tts far acceutof thebath Canad Give11 code C f t he hank Du& e f M o da her o ISWW.

IL Speca InsatrSuctinsmad hwInsle Rfareme Give sMoy peclbal itndouu invoio nsabe. oetr efeu*me dot would expedies paypee.52 N of Beevesn Fill inkmn - it *appar on the IealaCrcdkAgrcucmt13. Datas Give the dat - which the AndhoizoledRpvcnsraatve(s) aigna the applicatle.14. Atm Iutm Obtai dt siguatmru(i) oftS Authid Rqpmcntaivc(i).iS. Nmasa at 11k of RqurmuutativNs(l ftovld bath the ane smd aletSf di te aignatoeq(i).

SWIFT A finmch! eniglgm sydatm tead by the Socxiey for Woddwhde L*tahek F-uIclee2nnirio.Te Ranist h nember of

SVJW. mm au zm comcmdbmi ma iamal Supeon'.eaDss

Ehouptin - wher UW irERMantkh= agre todhburaagaimStanaS a o--f Euplkaio.wo copiesOtfhel caneu r permeosteasW. h oul eat ooS. Dak hamdnagO SIIIE sefntisrelated.ppllcatie..

ouecwpofS.eqyenimdocaasemtisn mo isivemwsde Bak withthewitdmdwal pplaieio.. Theedocmains meo cemor m to folwUing:a Supptler' creeo.slbn'a invoice. arm essay Matemcas of vork peuftitm sigmed by S theaqnavhiug agimeor otheraumsormd odaclh

* Evideo C rf*psNunmute (for aqaipmaatsd macsla b 1urcaa). I era be amoft Mollowing:- copy_ oth hbMofad s d R- fotvaideettnifte

* Bvidweem ofpqpmaae (rhr meinburemese). lii canbe cae of do felewriap_. ccpme.d Awc_ eor fo tl rdrjabpt- ceumwrei bakseprq ofSodpaymut

a Fbaeuinec.zqrmd - aburntgoumdiante i t -of advuepeyms wham rquired uSder dieCOMSSorbwheeoaeuwtrufa Gsau4 Mp pereiO al o cf gmlow cot Oaftoods

* __ Rat asones aw s.ocih t Wetmcmt if io. ha iraam for almhbof a SpocdaiAouinte

Disb.wDer_l Hoidbook

60 Annex 6: Application for Withdrawal - Summary Sheet

I 1I

2 A

X I BJ1'

0.

Vaaemn H

Dsber0 Hadboo

Annex 6: Applicafion for Withdraw - Summary Sheet 61

hslrctio for Completing Appvrl on for VitIdmwai - Summary Steet

* Us Summy Shem. when ddio pce ip required. 'h in, for - ta oae coctoduaple, for mom t-n cosaract, or for eVaendinue against -mO tan oe atgoy.

* Submi Summary Shed in Ih-&aIe.* Pspu sepuat Sunmay Shea for each category.* When try Sht are ued, leave ienm S dhough 7 blank on the Aplicutio for Wihdmal (orm 1903).* ac xnmtion on the Summay Shee to tours tat theference, ane, md other deil. am comet and th

I b~~~tey agre with the " aron the acconpanying Application foc VWitdawal.

l1t ;d Folowr Sem"uece of Ite o S _m ed

1. ApEiiam No.. Same a on the accompaning AppEication for Wdauwal.2. 9maq Sbms Ne.: Numnber the rf . bcgiigwith muaber one.3. IThleAnrlliDACroorCofancir Referene Numb Iea 1mm irence (maer and ulet) a ithappeanoothec y

Appliction for Withd.4 Caqtory or Sucbpnjat No.: Obtain caterry rfnce fiom Schedule I of the LoadCrdit Ageemn. I1 bprjoct m for

fmnlal intemdiary ban is the nuniberadvied by the Bank when it appwved the uebproecLS. I_ Nea Idaenifles kem cquetialy within each summary sheet, and faciae. idestification of the Mrcvat iem in my reaed

correponene.6. Nus mad Addre of Couistr or Supplie Give ihe -n., city, sat (for appliea in the USA.), and country.7. Camist orlPbhse Order Ne. and Date abre fidl referece to esure that the conact orpurch. ordrcan be readily ientfied.a, 3ldd De pdu of Genis, Weds, or Sinks: Give bref description for example, pumpn, electrical equipment, cosanacio of

awd etc.9. C y Sd Toal Aot ofCentr Give currency m and vlu (ncludig any price ecalasio).10. Total A uofwIn Coveuedl by Aplmtioc Give cucyand al vwlue of invo ntof rete d ierdeducifor

ineligible item.11. ENe PNmlmtW Eligibl percege sn fion the appropae categoy of Schedule I of the Loan Agreemet12. -Inoke mac giE le for FgI:sm Total amont of invoices covred by dhe applicio muhiplied by the eligil peenage.

Amou ae net of rention or other deduction.13. Amt M kum Speia Aaco Of sty): Total amo charged o the Special Account in order to pay the amount aow in the

prcedn cokw_L Ue this cohmn ony when claming rpleniaunent of . Special Account14. _Masb (inhilg ne-objecto tdoi date: lude invoice references. -If applicbk, aao indicae th dae of the Bak 'no

ebjectot telx rlated to contract ave tbe pnmuwemetprimreview rNaiLiS. Dale offee Dae of payment to the aplier.16. TedS: Give oals for colums ifall a1munts lited am in the me currocy.

Except is csc where th World Bak hu ageed to disburae against Slaement. of Expendiue, two copies of final contract or purcha ordeshod be ant to the Ban baefore inbmitqg the first rlated applwion

Q copy orf the appoin documens in normaly given to the Bank wih die withdrawal apiion. Thes documents iclde orn orof he follwing:

* Supplie or comulaW's invoice, or a mmnury stuent of work. perrwmed iged by die supervising ngieer or atheraaahoized official

* Evien of ipnment made (for equipmet -ad umrials purmbua. lhic . m be o- of the folwing:- copy of ihe bil of lading- fowardera ceoificae

* Evidee of payment made (for reim_urweut). This can be one of the following:- r td invice or forma ecipt- commueril bk's report of payment

* Puformance aecurity cb as a bank guantee in tie cas of advane paymet wher required under dt cotrac, or wher theamoun repres Ran unusally high pertage of Uetotl coat of goods

* Bank iatennt and reconciliaton stteme if Wm is a rques for rplernisment of . Speciel Account

.uw swportng documet in the same order in wllch they appeaorM oa my sda

BORROW ARE ENCOURAGED TO SUBMIT COMPUTERD SUMMARYSHEETS WHCH INCLUDE THS MINIMUM LEVEL OF DETAIL

Disbusement Ltes may specify additiona detis rquired for specific prqjcs

Disburwau Handbook

62 mAex 6: Application for Witidrawal - Example 1

Example I

Application for Withdrawal: Form 1903Request for Advance to Special Account

1. Completod Form 1903 opposite.

2. Te Goverment of Rnritania requests an advance of DEM 2,000,000.00 representing 50% of the AuthorizedAllcaion specified in the Loan Agreemnt. This partial advance is based on current requirement. for thetypes of expendib to be financed througb the Special Account.

3. This expenditue is eligible for financig in accordance with Artidcle 2.02(b) ad the Special Account Scheduloof the Loan AgreenenLt Prior to submitting this request, the Bormwer has obtained confirnton tht theWord Bank already holds a comfirt letter from the depositor bank

4. The implementing agency is the Minisuy of Agricultr

Supporting Documents: None

Dibuwfneawe Handbook

Annex 6: Applicaio fis Wihdrawal - Example 1 63

TH WORLD A133IBIS CruetNIW. WabM,.O DC 2043APPLICATION FOR WITHDRAWALReed nv for Jnauncns

1-toe 1a 3000-RURarDA Crat NILt Cefcerse Rt. No-14,

Annie. Clafmumum OMaha. MCA RmLUd@ OS-____ or 14 ____

1 A_IeUM rma 1

a. rb_ w DEN 2.000.000.00

Wo M* for 5th wJMi*e.d foma to. samit uud uso Lemm or De,ehpmmim Omit Auremetad NO w ami adWaw_ -me ft-

A. lbm mdIpnd ms nol pr_wb wiOrn fromt AconS to met me ue1,dtrua Th 1u not mddm no# to bin i et -p- Rf _m for We pupaO.t OA Of -o1me01 of dMe e @0 i at rat

t Te Goods aid mSem tmd by SW OppadfMi Edt ben orm beq pmraleMmm k acofladm Et gi MM Of VA AuuuuwcC. WaI umpeflarme bum" o m dar re Mg now On for gs or m tfrIn ti*m MUMMD. Fo Hr0mm hUv ute _ rm r L bramns is buu otAd an Sa beth oa Smma of Expenirm CS01 of dfdaurutdm

mflaabug uxpunutmu wI- M n. e dew by uors mi Weld * Ma r Ianrmut 1mmMoeme kN buern rpuce a Wi Mcian dlow.an -t t u C W mut

E. km goe ewuetg El or put of itw funsd wmdA. wn fromI. Anemia pnomed ma *ht aupeldan -r retruAu 11Um Wtd VAN IIgo udsmd buruby dhrk.. VsWld Emi apy V' W mrrate %dt of mmd. Emtvds - a eit t On Afasuit or. If mAmas nut p* mdu fwud iD M bewwes imed pvnh for ks 11_m c_ma, ela u at or

DETAILS OF EPEICITUM PAYM EiDASTRUCTIONGm awnmwr ofmen If udandon spem I rmd or If . w11- tp 8. AND MaFES OF PAVES BAN AN ACCRF NOLdxam r eiam to mmie aer wipph. y, in - or oJvA-i lBank of Ruritana (Head Office)6 NAEM AND AOWESS OF CON7RACTCl OR 5t1iP Cspital City

r dutwur Irn pwyl Rt

Account No. SA 5001

SWT Camt

IL PAE MAINE AND A5RESS1. POCUM DErALS NIutry oE Agriclture - Speaial Acconutd COTNcr OR tR t AND DATE Capiual City

( or_ *-hr agm wn to _ - -- - Ruritania

'' PAW CF PRCUMMEIrfl NO-JECTO NOT-,,,f for n. m. ncu -ro r-dhw tufE

.JW TIE OF GOO00 WOW OR SEFM Ia it P s b Mm and h Me Cony Swuo mutelis dAhie seft to mno mad Sterm. of Ewt ba*%aenupomIDui ba _ay whosm qumay ha to be piDeuteche Suk AGJunpoaftrgass

* CUIENICv AND TwrA An Nr OF cINuTRACT' Prakfurtnhl

Caa

slow. UaMt OFr MINCES COWE Br THS APPLICATNns of Jismion ad aim dudailsm swiFT COrO DEUTFR

1 1. SPECAL PAWIT FGSIRUCDJS AND NVOMCE WICESAdvance of 501 of Authorized Allocation toSpecial Account - see Article 2.02Cc) of

7. WmamAWAL DETALS Loan Agreentd CATEGORY OR SB-PRWJECI NM

S) FEMENTAGE OF EXPDO1EES TO BE FVWIHCBr THE WR.D BANa

BY CNCR ER"f mgr

GR COVER1NT OF RURKTANIA (ogd) Jobn U. SmithItrst ofemrrvur Siuarela of AWMrmd flepyrudmMtiMh

a April 1. 1991 oL. Johin H. Smith. i Kater of AgricultureD" Pi* EW ad w m uelt of aafld ARpveehmiv

S TIIr APPLICATON DU PLJCATO A DD0RESFr World SNO Lbe Only

Appo-d _ W1A N _

Disbwmmwt il.wM&t

64 Anex 6: Applicafion for Writhdrawal - Example 2

Example 2

Application for Withdrawal: Form 1903 and Summary SheetsRequest for Replenishment of Special Account

1. CompIded Application for Withdmwal and Summay Sheoet -n following pags.

2. Th Goverment of Ruriiania requests repenishmet of DEM 855,238.25 coverng expaditures made hmtbk Special Account which is denominated in Deutsch mars. The example sbows die application form, adthe first two of sveral summy sbeets attached to the replenishment application.

3. The expenditures shown in the Summary Sheet ae eligible for fiancing under Catgoy 1- Civil Wodk,of Loan 3000-RUR at 50% of expenditues, and Category 2 - Goods at 100% of foreign apeditnesmand 90%of local expenditue

4. The implemting agency is the Ministry of Agriculture

Supportilg Documents

Submitt in advance of withdrwal application:

Cohacts ad procurement docmnts

Sadmitfed together with withdrwal applica:

S Suppliers' Invoices, or Progress Claims from contros certfied by Superving Eugineus

* Evidence of Shipment (e.g. bills of lading) for goods

* Evidence of Payment

'Bank stamt fiom the bank holdig the Spocia Account

* Reoncilaon stment of the Special Account (see Annex 11)

Additinal documents required in certaincim.tuc.

* For advance payments, copies of the performanoe secuity such as a bank guarantee would abo be

For ajusbuent opeions with speia met, evidence of pie-shipment inspecto

J Noat Supporting documents to be atached in this example are marked with an asterisLk

Dksbwvasmu Handbook

Ane 6: Application for Withdrawal - Example 2 -65

THE anL iNKKjMLE 121i H ISwam PLW. Wauam DC 20433

APPLICATION FOR WITlSRAL_v ArwwN fwr JmtnxAPu

1. Lam r,_ 3000-RUnrSA Ca Na-

2. tafb alss Pin 1cu _ _ _

Mhudmc OhsaC.wnaet UleSs. IDA PL - or 14-

3. fplicallmw No-- ______

* . Pme Pu DEII 855.238.25Kw wr -eM MaIfi 05 a. " . Irn.uS

Win qply faithb wfl*mi Irn goam ew maa spundwastio eAraama oreelopamus 0odit Agneoue mid hanky evily ard

A. Th11.II trip md flat p mulas attkn kma "a Accoastm u se ezmww aiuuhrm.g lbe undwealpmdb hmn nOt dne Mat he-ato melS f.d. for f pupase. oat oft,h paocseS of may aStir t mi or want

L no goads and usa. assured by lbIeI qpM I arn been orve hmsag pwdsed Ina esrdas toe urns of tam Agnouisac. urn epmaOr, km bem mae ornw heftq male oay Ior goods wr oeiwde km eWPMe tamalft. For lace ea.s whene raf-aenama Is hedag oldaad -n t. beds ala Dtame at EMpwunibrue CUOfA docuasflm,u

wancaa tm eiapefra WEi he namb WA"a for teak by son" ad WaS Sara Hamer Wm rqeset TunedSean no boon -ea se aegolooba teatn eatan hoaidid SCE ShuIt

K I hal smailfs al or pin ofva lute utKIfatm kmau We Assure paean ID tal qplelr en aeraed IDsg Wmal letta sblu na sAmara. m Weal metw t"o ewly dn suwt vita of ada lutes - a aruit to em Aooceaeat I toHe

-seat Is .m epy suabl tanst loamd b oanceWr Fuaig tfor thea. eaunhaeat claws euIc sIn or pI.-1

DETrAUS OF EXPSNDCfUl PA fAENr VISTWJCfOIStuea umammyau IftUS m leo r.*udo Hf vupen IL NAME AND ACCIESS OF PAYEeS RAW AND ACCtUl HOChnag relib to awe tin arm inuppgwc a.y a, or% ni~ =e* ank of Rairitania (Dead Offi-e)L NAMS AND ADDtESS OF CONTRACTOR IOR SUPPUDS Capital City

Of arena burn payml Ruiritanim

SEE SM1301 SHET Accotmt No. SA 5001

IL PAWMNAM AND*8 ADDRSSL M0CUR1MN DUALS Iliulstgy of Agriculture - Speclal Account* CONTR.cr OR PURCASE 11sAMBa AND DAli Capitl city

fo eNter mriinrna ki mist- doolM1atau Ruritania

*) DM1 OFPRfOCUWSff NO-fOLstI tOTEIeaglt- for a asb om pIer rel Baid

* NFDECT OF2GOOD. ViRS~ CRSR 10.2It Preyoe Bw* Is mm boad ha g Caswy whose suavitIs slna .AmIt,i roue. lads*. at Sa b.fl e d

Deutuebe Dank AGJungbafctraase

i CincvW AND TOTAL. MLOST OF CONIUCr Frankfurt/main

*l TOTAL. SNKWdrO MvOaCSCwVEDnBYtIS APPUCATIGNkre of rlliamd oils du*r,aas SWWT COOe DE0T7R

11. SPEOAA. PAVWETf PISTRIICTIOP AM WOES ES53C

7W WTRAWAL DErALS

el CAlEGOWV OR SUE-PROSECr NO.

hi POEIABE OF EKPNDtRJRES TO U FKMICEDBY ie WanRD BANK

i2. y nsERrI OF RURAN14 (gd) John N. Smithdffirn of Esnowr S_eo of Awarfnd Re mera aaelvu

c June 1* 1991 1s. John m i nt m ster of Agriculture

am PWN MMOW and~~~~~~~~~@1MOoiedU RuproenaaflmlatUIT APPLICATIO U bdU_nCAWb TO ADDRESS SHOWN Oe

Fo1 WNWS _eoatm t W rY

AppEoa ______n______wW WJA L_ _

r am s ti-eu~~~Dkmmwm Hugw

_ h h t o b a p _ O Jt o r > _ _~~Dirbrw a HshS

THE WORLD lANKAPPLICATION FOR WITHDRAWAL k X June 1. 1991 AegQW*n Na 3 65aiMWY ntN6 _SUMMARV SEET I0 mC rf rClwi 4.NRadd revile for Instruflions Cat*oy w bA-Pro;eet NM _ F L@a A Cndt Cefbnkc Ref Na 3000-RUR

Cntort er TOW Amnot of _ nvie o aAmt Amn o Irawom aNM CcergeJS^"bpa Nar & Dot. Wors or Snkoe Amud of ConrIct by flgfnito S M1teh for peoW Aout oba Bib ofPwRw

(or CohN Rat Wet of Rwotionkd Fb%eckqo 0i.w e

DEH

1. Quality Conetruction CW 128 Irrigation Works R6 8,245,000.00 R$1,10U,000.00 50 RS 550,000.00 441,238.25 nv. 13587 ay 18, 1991Capital city Feb.12, 199 Sector 5 a objectionRuritania Feb. 1. 1991

2. Beat Buildera CW 117 Construction of R6 753,000.00 R$ 29,600.00 50 R$ 14,800.00 11,852.17 Env. 117-2 4ay 19, 1991Capital City Apr.1, 1991 Training ao objectionRuritanis Facility forJ26, 1991 B

TrATALS q$129.600.00 R6 564,800.00 DE453,090.42

_rem11 m1 i

THE WOLO BANKAPPLICATION FOR WITHDRAWAL ~~i 91ApOUn ~ 3Swyhe o SLUARY SHEETReid reveruefo , nnvio ceso"" of ",-pvolmet M 2Lows CA Credt et Caft-Wolerat~. No. -3000-R0R

Itm Nmi mi Address of purdgg ord. Slo D*eor4Mkn of Good. Currero wu ToW Tvoms colwed for~ Aoogpjkft Reiiwtl no eoC1w*"wr$1Swww1 No. & Omt We.,1 at serl Amw M oauef Conr*ect byAppnoasaGom x opo

DEH

1. French Equipment Co. HE 246 Front-and FF 823,025.00 FRF 82,302.50 100 F 82,302.50 24,226.37 Inv. 211278 fa 12, 1991HarseLlIes March 1, 1991 Loaders final 10Z

France ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~no objectionFri,ce Feb. 4, 1991

2. Business Equipment EQ 1278 Computers and )SD 107,250.00 93,846.00 100 JSD 93,846.00 177,498.75 Inv. 127S-12 fy 29, 1991 London may 3, 1991 Software Apri obje1991

.~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~pl 1.19

TOTALS DIEF 201,725.12

7~~~~~~Dr SUY. SUEET

od HoteerXntrdlrW ,Cxgo 4fs4-aofn va X fDL4\ A hKhv ot xt XfIk _300-Lt

68 Anex 6: Application for Witdrawal - Example 3

Exmple 3

Application for Withdrawal: Form 1903Request for Direct Payment

I. COmpled Foam 1903 apposite.

2. lIb Govmnt of Rritia reque payment of USD 185,238.27 coving the comnltant suvics of SnubCoutlng Fimn of Celmsford, Essex, United Kingdon TU company's buk is do Midlad Buik

3. This expenditue is ligible for financing under Categoy 4- Consmultants' Servic, of Loan 3000-RUR at1(30%.

Supporting Documents

S_dm in adva_ of withdrawal applaian:

Catract ad prxuremet informafion

S_uiltd togeter with wihdiawal applicaiion:

S pplie' lIvoices, or Pogrs Claims from coamckrs cerfified by Supervising Enginer

Evidmnc of Shipmet (eg., Bills of Lading) for goods

Addiia d _mt requed in cerind n

For ad_ane paymeuYs, copies of the perfonrance sewcity suh as a bank guante o alS borqind.

|Nde: Supotigdcuet to be atbled ii this ex_bamlee makid with an asersk

5 H kHa&o

Annx 6: Applicatio for withdrawal - Example 3 69

101S LD UJE l., H Sweet SW. Wu _nimn CC 30433APPLICATION FOR WITHORAWAL-ob Iwwafor I,unfllas

WC Lam -orOA raf Na-__

I. Cafin.slm ftf. Vm______Asses Ohgbwsufl MOm MIWDIC A rKm%_ CU.r or 14-__

1. A se mm _ _ __ ___

4. Pines P___ USD 185,238.27@5V1@5 ta 5 -adi. H m

We ply for 6dt *lUu fron Meoends spuerd win lam Loin or Demml Craf mt flemn& @5 husft gently adqme a featw

A. 'Dla wmmdunlmd he not pr*laud aliafren brem *& Avooe n es natSem eupedbrave Mm ummaSdiad fannadt rst toi ban, ewe for ab pspasm out of to proossdn of eVy mis lam oraft or Wm*

p. urn pea ad -slam Ause by Vd qptamlmn ham been orum being prdamed In scta it Vrn --na cOma DqeintmC. 'PAm eMpuflhlme fume besw muds or um bsb mnd cAty fork goods or ma -e fsnt walemasft For Seces mmernn wkami r*bWrhmmed Is being oIne en faw buds of a Susaffd of EsSbduu.m BGM dSoari

odsomsisin lam I vAmfne abe nub auNte for reos by auilor mud WVld Bet midinselme reins hmusInnnMm hemk Stnu sa Medlai dawn on we hflflS 55 *ant

In to aan dot Sno p at d flu ndu-b wied fronm Sn Moose puim to heWn qHoafSo -n rfsnrnd U Urw Vel Betdeam Iadnlaud bub inhsrbod timeWl Bektno WpMi tgo aua S of si. I indo - a creSt toe goAoose or. N goanwa:in I mmnU mppl stuch lasSo lamf berone men pupa,nn du for kne amndramta I Saes nente olaug -or*S

DETAILS OF EXPENDITUS PAYMAENT 31SfRU1CTION1am summy Sime If Seemd Msomuin Isrsm*srd or It aspen- & MeS AM AWUSS OF PAMSS lMAMS AC WU NM.

dtwm rddheatowo Oma acwutp. adgm or min-puJeod Kid154 Bank PLCL NAEJ DADDRESS OP C0UTPACWR OR SUPISM Chelmsford

W dLfkmn _ from papd Easex, United Kingdo

Accoput t b 33-t000-33-400

swsFr OWEIL PAvif MAIW ARC ADDRSS

, macmb DETALS Smitr Calting Firmi CONTACT OR RFLOIA fl same AD DATE L5 Green Street

fo Dw atm rafleto aeamin doassned Chelnaford12345 of AprIl 21, 2991 dKee United Kingdom

hi DATI! OF PHOCIUSTf uo-omrnaO NOaMenls f_ - hw c Jor n dom por r -lew IniS

Traan of April 15, 1991- h tl _t IF ltql C i t hues ls oedt b hd b b WWCoy alies ewra

d aw PTcimON OF UXlO5Al WORKS OR SERICES -- I aWdmud aitw tanorne mdaddes of Seo M*inCaninultanta' Services - Agricultural -w-1 I- WM.m In .. a~ icueywo oereamp Is fe be pidExtension Tachniquesa BankE of Net Yoruk

Bead Offi eac CIt -ND TH rAL ARCE5 OF CCWRA Cr NACO York. N.Y.

lED 350,000.00 U.S.A.

In of i hm aid fu d_.aonsd rWe COd t POLCUS

WD 185,238.27 11. SPeML PAW? w1nwAInCTs AM WWce O s

Invoire 12345-7A of Nay 23, 19917. WRTDCSfWAL. N.ErAUS

ud CAISGOR CR US-PrOJE? NO. 4

Hr WUaM S - my ~sws mnb) PBNVUAM Or- E943DMJAESPAKEtl"E AN) ANnES

BY cROa_T aIL St CONti8L

G OVEKINr OF RUNITANIA. 1#R (sgd) Harold R. BrotwnNon of bmm.O Sipsi1 af AdmOrnd Rs Ire NaeNf

- June o. 1991 IL Harold R. Brown, Project Coord., DUn. of Agnteuture

Pe ede oft Avie 1S,199Caw.tt Perint - 1ero o " I_O _W Ab atoW pR

Alpraned ___ WMA POE._

- S 55 11-50.0.03S^

70 Annex 6: Application for WMithdrawal - Example 4

Example 4

Application for Writhdrawal: Form 1903 and Summary SheetRequest for Reimbursement of Expenditures Already Made

1. Completod Form 1903 and Sunmary Sheets on foilowing pages.

2. Th Goverment of Ruritni request rimburmnt of 287,500 Rnitanian dollars cvinng civil wi.wxpendiues for thre constuction contrat, and semces of local conswltnts.

3. These expenditures are eligibe for financing under Category 1- Civil Works, of Loan 3000-RUR at 50%of expenditures, and Category 4 - Consutants' Services at 100%.

4. The implementing agency is the Ministry of Agriculture.

Supporting Documents for Reimbursement Applications

Submitted in advance of wthdrawal applicatioiu

Conntcts and procument documents

Submitted together with withdrawal application:

* Supplies' Invoices or Progress Claims from contractors, certified by Supeising Engies

Evidence of Shipment (eg., Bills of Lading) for goods

* Evidenc of Payment

Additional documents required in erta w usncs:

For advance payments, copies of the performance security such as a bank guarntee would alO berquird.

For adjustment operations with special requirements, evidence of pro-shipment inspection.

Notes: * Supporting documents to be attached in this exumple are marked with an asteisk.0 Items eligible for retroactive fiamcing (expenditures incured before loan signing) sbould be

claimed separately using the reimbu t predure

Disburwnem Handbook

Ann 6: Application for Withdnwal - Example 4 71

THEt 11OLO MM

.~~~~~~~~115 batPW fgm.D 63

E APPLICATION FOR WIThORAMAM fisa rmww for ln_rch

- ,u n Is hhis000-ROr VA it Noa._62 Coft-alw Pt u__

Affhslmtn: lohwumn mt Ds,0A prait _ 05-_ or 14-3. 1plan N6 2

4L ,, P, RURrLNjN DOLL 287,500.60

V w * _ b _ _amer D e_ G 4 - f_elSwr

A. MO g b ino pra f imtu rom ao *oomwal nma I .. p.aiwes. Do ladra hm not wdam ra to Mbbh buda or die pupae us af VW pocmS * r aif aw olot watIr or

& Me gm ad a aarad bh IWe poSm beer earswe teing p ad hi aco k brdc winEs en D t u ersostrC XIs in,paiiflbMm beun unko wa, ubeingnf mad- kar gaa or 1,d- t,.. ago" ni. gareD. Far bem ha wm raIbImmIs ha&u ch end go b_o ata Sa *u_ of Eea IStEI S _o

_b-flw lhm expmnitr .3 he nsl edeb tar aon by _o ad Wid Vma q i rauasian bMm b_m read a f a kofl a -n aw kdld h SiE maft

EI hm a utS A Prp otUs flab wOa gw Acaouia peat to di ppadio we ratrnud IE Wod l.Bnde inrePd termS, eSchew S Es IdB Eat

1Prl a auraSies v of audh fim - a suiktok dom Aaoat or. It to

Is sorall. eppr uS. fus tl toerowwts ma pen I r adamhSw e s-do or ridF_

CUTMLS OFEPENWSflhlE PAYMENT INSTRUCi=IOS1ams muauh y cr It SUrS ePON h aqm* w if ams IL MAIE AND AOWESS OF PAlES MAS AD ACCatD NOL

. km t S -o aIw. g5 or i -pmjtiO 11u of Roritanla (B-ad Off iCe)

L RAW AND AONS OF WITRACTOR OR SUPftS capitea cityOf ditt #fturn pgd RturitranCt

--SU SURYM SHlEETS Account No. 2357

SwFr CODC

9. PAVEE MANE AN ADODESS. nrooe DUALs MLnustry of Agriculture

d WNACr OR P USE CRU N8 ArC IDAE Capital cityl_ ~em' ratrsm ID e- dose Rurali

N DATE CF PROUPNE NO-OXTO NOUCIlm-tfw acerarf bo-asprior vawNced

dAq or DE!W IWN OF GO= WCRt O S.CES I If P) 1 1^ h rat _ h t t aIt Pas? ft so not macm 1i on Cmfy lowha anno pad In th Eaountry Mioam e_w rmy In km e pit

* OCV AND TOTAL ALCUGT OF CONRACT

* w s r*0* u0INlCOmIR v Fwnes APPIJCATIlOOa Di .,_fln ad al defd_ SWF

11. S9CZL PAYwE mTnwCnou AND voicE FfincnS

7. VATIIWAL OErALSd CATEGIOY (Ml StS-PRO NO.

W TECKrG OF EXE_rS TO BE RNNEmN DE wOMD ANK

aw Ccowescs iv -w

11mp GOVDWRNM OF RURITANiA 14 (end) John H. SmithPlms of Borwero 73F 1o Auminfd Pmpreageiva

April 6. 1991 . IohnS. Smith, Miniscer of Agricultureado flab ad TEaM Of Aabad r add

lUHl APUCAlS U IWUCA1E TO MiS l S4O1 A1KN

- - .A WIA NEL

DibzumeatM Hanfdbook

.-4

THU WOALO BANKo_M1I-lai pkU t mysmN APPLICATIO*N FOR WITHDRAWAL -Ar-*1 6. I 01 A _ S _IAfRY 8EETRIud revew fer IraSitnJl, C,gory or &*-ProlM No __ LIw% VA Craut o Cofhbr -et. N.f 300 RUR

two NMOM d Ad&L" of PWxbm. dw Brief DeorOIb of Goods Cwrer4y _d TOW A s u w b Ml1Ii PdA tPfNo, CoftmatnoS4w&PP SAA a ts Warts. or SJrse ea Asu o Cwuretrt by Api4d" 1 EIjbb for 3scAd ftmj _o E ofIlSO

RU RI R$ 0%

I. QZuslity Conatruction CW 128 Irrigatlon Works 8,246.000.00 250,000.00 50 125,000.00 Inv. 12807 r. 12.1991Ca.pital City Feb.12. 1991 Sector 5 no ObjaectionRuritania Feb. 1, 1991

2. Beat BuLlder. CW 117 Construction oE 753,000.00 75,300.00 50 37,650.00 Inv. 1171 pr. 2. 199 1Capital CLty Apr. 1. 1991 Trsining Facility no objectionRuritanua Kar.26 tggl

3, RegionaL Buildera CW 105 Constructlon oE 405,000.00 213,700.00 50 106,850.00 Inv. 105-3 r. 11.1991H1d.sta Jan.30, 1991 Stores - Sector 5 no objection

DITOTA1S 0039.000.00 R$269,500.00

Pa $.6 I1

tHE WL BANKD rl .: 2 :: NA APPLICATION FOR WI RAWAL SUMMARY SHEET

RIU iwv fey Ina~~~~~nJcfIMu Wo Sub-Prjict WO *Loft VkA Ciit of Ce$fC od l Nti 300L.ug

C.awet or Me e~ria a~C*A~ drw~lasC.wAlTd Ancawat of A~MOL Pj fran NUU _ft a oi. Works, or 5e 44e AAm.urt af C*utwl b Ap a IBooms S9CW ADOLF *bemlo: Pbe~~~ out.' n.u .~~~~~~~.o 01 f ofa G __

Asribusine.s Consult CH24 Consultancy Services 89,500.00 9,000.00 100 9,000.00 nv. Ct24-1 .1.5,199LCapital city Jan.31, 1991 Stores HanagementRuxLtmmla PzaIra~~~~~~~~~~~~~~ 9,000.00 100 9.00Q.00 Inv. CN24-2 wr.22,1991

No objection0

telexJan. A, 1991

TOTALs I$ IS.M.00 Ls 18,0w.OI

-~~~~~~~~~~~~~~~~~TTlB R 480RI.00 R6N 182,000.00

we 9 SRY KE

74 Anne 7: Application for a Special Commimnt (Form 1931)

TUl WELD BAS18im Sweet KW. Waigta. DC 20433APPLICATION FOlR A SPECIAL COSE7TUENTRead reiwo for iout nD:

1. 00 Loum Few __________

-r IA Craft N _b:3. CoUnslor., Ao. N,..

ORbADA ROtJb: 05- - 14-1. Apptaib N w: ,__ _ _ _ _ _

ABAndon Olhbuuwme OMim

We sply far.a SpoolS Cut-mInn and p*bown witebrad frm oniU AsisiLo) upenmd i Mrn Lmu% Ossor iopmrt Cradleor Ccluimohmg Agrunwit wid obif agd *m - foamA Is moIld roqimodt Vs a Spool Cowr_lbnmn: be _mad so do nugods' bet In mwc wr h s lt srw of Uw

Aumwnuto In arder to ae. pr nls to S. n_abrhot train Urn. AOOOwtoL Ib. sriold bkrvoeolby eataw mdohWithdawa on ds bob of w ilee nt by to ngodailti b ht Ui Psmurt hF bon nude or Is du ad w beprfrnopUp undoar mid hI auoordi,osli Un brwl of Uo ofI te& - saif mop be ued

aA n _ ban - In at br tZ of omit swpry deIt do U caX de of Us Arornosts ruesam is . bpnd In rlbhS mup, dis of In tr of th- Ild is to iort a _hwr_ hIn Sv. m ol tIn itwof ri Id n ew Sn or rft of pSo or UOw bonofldwy. or u po of urr am 215% of Uet twS of goboorof oit prior to tMprso oif gocit so Jrejt to paw rior mm uindtrilp"d wit rudp 11to uwuzfl.mt Usn howr of soir dut mo hI ohoorie withe Ib of Us *snu mod isUh p zey d li ptuuoutuniun wEa v s top-d to ea byI nogotldrg but far pos kirchrntm or peped - epprop"'-

C.v., Yurn raq tots abltln to pAr ur Uw spoolW Conss by hIametbg o IrnAicltuse dooor_adIF lie elr tncy of I Arnai t roflelre tor udwrnw r s ft euiton its mndorug moe" th if, Moun of InHIh clue peR t ey s tbe iirullI iromsd to po Us ntgollt bit, m_ rnantr part o In Accostmoph dbass _o rear Us dfe l41~i rn i V Uh iesutii poi so oftI Aoast b. lrnruteo to ror fIndeiblean. pu wE eioly U's wedsrod Si wcv aOri to mos rsi pmpyoS prouepty ns no_cudhug bt.

QV ow eolgo Wos In Spold Co_oubon OS trulnsI - U World Usrk di oInrAsos oWeg 30 dl s In th ply des of In loo of erst or at In gdo of In Los or 0sesopiut E mit o t hkw- to swbws

D upon poYit by It World But ti go nogotloltrg but of O full di ofhn of tlw r of and In ocerduic wUIn twu-wd c - of *n Spool CA'NDlpuA

Id warn rospt by U_ s World SoA of writen node from Uw nogoldien brA spq In tSpoo5 Conur_bnsnt mop be ar_esbod*:-s widerulpsi It not phrwlaus wbhhown from tI Accost to nes Ino uxpenitrso Ibs mudrsolrsd h- nu_t u

do. So tntone to obtl find fcr thh pWps ou of In proos o at maw Wnmt cradm or getF. lbs goods or snlc Asen byU e picmonh s eboe purch in soordurns i storn.of nAW twtfts

es s Niew hob mir y foIr oos or _orukos fr.n *Igtl sacosi n In await Usd e or put of I fikmdo slUwn from to Acomoi pirsount tO ISo plb - rflnod to tU Woel B.0

Os wldrs1iimod horoby uwsrs imn tould S.d. to op In cirrue vis of rsh fuds - o a to In Accosit or. If tI.t In un. pplyu auI krnd tDo tbw orrow nor tou:ot eu fnr itorowt ontncn, t ehre... serSes Swan or prb4

EILS OF LErE OF OMIT DETraFs or IcEcNw14. fAM AIJ AIXS OF PNCGWAlT1I BAIM NAM AM ADOIESS OF CNTRACIDA OR StPPL

Poaetr of crit bnficlru

D S r"Afit no acAs tlF manOwer BARS DUTAN OFI L'St AM DATE

cr oUrr ratosc to ct eocnil)

hi DAIS CF PROEMWd N4-O0ECTN PIlOUMcpt for co_met shos prior revIr MniD

e. rLE OF LUC OrPER UBRROW_ OR E GECtJO AGEa OcESUN OF GS. YCAMS OR SEw.cES

10. WfNhAAWAL DErAIS

7. LETS OF CRET WTALS S CATEGOW OR ce -PROl Cr Nad CB .W BASIS LIE In

tS FEr4TAGE CF EIIPB1OIIFES TO BE RNAW>s) aC ec n Nf LI IS wa.nD BAMI

el CURFdBCY AMP T OWBY JCT NC Of MOy)

I t SPEEIAL4 rISTRUCTINS .AM REMAPES9 aC EWDATEdl LIE SPlAYf OATE

Nun of Barrows S1je7so Of Au1rnabd Rlprussntialelo)

13. Ihl orDMO Nwnofa urn 115M) of Auflnorbd 1RopraasOulvod

SHT APPLWACU Of OtWUCITE TO ADDRASS SIOWN ABOVE

For Worl at* Iu" OoSy

SC Fr Appr-d _ WIA N

i_ 1021 -1s.6

Dbb,nafl~~~~~~~~~~~~ Handboo

Annex 7: Application for a Speial Commitment (Form 1931) 75

lnstructions for Completing Appiation for a Special Commn(Form 1931)

1Ntes: * Submit appliceuous to the Bank in dupicte.* Complee a the numbeed liG of paras. I through IS.* When compkted, coeck dte appication to amat that the n:rc, amounts, and odier dehils are correct befbro

paing to the Audtozed Repmentaive(a) for .gaie.hfitalk and aibsie led to d*ps 13 pameat

Infotor Nwbn eW_ to mnnbeg on A;agti4 for Smi Com

t. NBRD I_lMD Crt N:nl lacnt tie fug refrec (nmber and lcuea) a it appear the LoaCredit Agreemnm.2. C_@oews Ret. N.: mt Coairnes name and loancrodWgraatrefcarnce if any) oathb firt lie In the scowl line, dinwthe

mociatd Word Bank reLrence nunbe (05- fowed by S digi for Tnra Funds, ad 14- fiBowed by 5 digits for oder cofitancigc5mvions).

3. Appdicati. Na.: Number applications consecutively. beginning wih nmber one (irrep6vet of application type). Wheee um ismth a com p Inpmnenting agncmy. us a prefix to ideniify applications fins each agenCy (for cxanmyI, M1F I - nisy of Fin-nce No. 1).

Deat, of Leter of Credit

4. Name and Addsm of Negotating Dak: To be obined from ULC. Give full mailing address. Indicate SWIFth code if the Dank is ameber of SWFT.

S. Name ad Addrs of Openg Dal Usaly the bowe's bnk in th borowing country.6. Name of IJC Opener: Name of borrower or execudn agency.7 liC Detail: To he obtaind fron uC.

Dets of Ezeou

S Name ad Addri of Contractor opper- 'h beneficiary of the IJC. Giv name, ciy, mat (for US. aupplien) and cmay.9. Pflcurme.t Detal:

(a) Cedtnct or Parcbase OGde Nmbr and Dter To he obtaid fiom ela docmnt.(b) Dat of Proeurenmt No-Objecti Nai: Give date of the Daks nc-ojection ntce if award of the contrac agin which

paymea is being nde ws bject to the Bank's prior reiew.(c) Bfft Desciption of Goods, Works, or Swwices: For eanpyic agricultral machinery, or edhlizw.

10. W *idrawal Debils:(a) Categoy or Sbprect Namber Obin caegory rferewne taen frm Schedule I of the Loan/Crdit Agreeen. Is subproject

munder for financial intemdiay loans is the numer advied by the Dank when it approved die aubprnjecL(b) Percntag of Expendibr to Be Financed;

Oia By the BasLi Obtain froin the appropriate catgoy of Scheuale I or Article 11 of the Loan/Cdit AgeemecnL(a) Dy Cofcier (if any): When e uiscofiag, give die Bak/Cofnancierdisburwentrao (for example, WB 605,

CF 40%); otherwise insuet 'NIL'

11. Specil lnsbtudm and Remadks: Provide any spciul insctions, invoice numbers, or other refeecl tht would fata issunceof the Special ConndnenL

12. Nane of BDrowem Fil in amn as it appears on ffic LoaniCrdit AgremenL13. Date: Give the dae on which the AutNorized Represenftaive(s, signs the appication.14. Authaizaien: Obti the signature(s) of tde Authorized Represetative(s).15. Name and Tite of Repraeuetati'es): Proide bolh the -e ad titl of the aignatoryCxes).

Smoto Domf

11w fiki'owrg documens sho accompany the appLcati

* Q copy of the conrct or purcbs order (unls this docnt has aleady benibmd to Bank)

* T copies of the letter of czedit (with valid expiry dae) that de commerial bak proposes to isaa

Note: If the kuter of cedit s to der dome su n pf okes, two cpi of then doirb sneal d oacyrn thc pplicaion.

. . : 0 t-- - - Ut~~~~~~~~~~DsbwTopwar Harxtboo

76 Amne 7: Application for a Special Commitment - Example I

Example 1

Application for Special Commitment(Fonn 1931)

1. Compleed Form 1931 opposite.

2. The Govrmet of Rutania quest issuamce of a Special Commitment to cover Leter of Credit No. 6666opened by Anybank, Ruritmia Office. in fivor of Motos Inc., Paris, for the purchase of 5 vehicles costingSW 675,000.00.

3. Tbs Latter of Credit expires on Detember 15,1991- The negotiating bank is Credit Lyonnas, Main Bancb,Padis, PFle.

4. This expenditue is eligible for financing under Category 2 - Goods, of Loan 3000-RUR at 100% of fortignexpendiitur

5. The implementing agency is the Ministry of Agriculture.

Supporting Documents

Submitted in advance of withdrawal application:

Contnact and procurement information

Submined together with withdrwal applicalion:

Two copies of proposed Letter of Credit

Additional docments required in certain circumstances:

Pro forma invoices, if these are cited in the Letter of Credit

Disbwnca Handbook

Amex 7: Application for a Special Commitment - Example 1 77

TQE WORLD SAM1sW Dn KW. Watbgtm DC 20433APPLICATION FOR A SPECIAL CWIITMENT

esN Aww for /nstnSalonx

1. lUMU Loam NoD 3000-RURor VA CN_____2. Cof nbew Ret NHim

AUICA Refjud o5- or 14-1 Apptiet ND: 5

We *pp l for a Spold Cameeniud uwusquam t fram fe AcoustWel0 p de lomt m Creior Cabsunolu Auemuuhet mitd erwly amd qar - latlw& lw udwsed reet dut m Seid Camuuleuaa be Isumed to du o b h r e ie tans of U.

Suemesten hI orde to mmkd peynum to go negotlbu ban from tur AcooutfeL me uderslpgud lrrvoctly sam buohwiter-eal mu tm bales of mr wriuttn setwre by du -eg' Ib- butt pe,uumut hb beeu no b Ldum mid alI beprofy mns umier mnd h cordica ah fu te of ltr 01 crelt - hme nuW be atmded

tA rndmie hwolrug - e*x_tm of t lewr or *ork euiy d_= b o ebfg de of tt Aue eelo d or ownShmu elm rutS beyond lhe orilglnd eui dte of twUe letter ot credit (wtimwr is emLm a SNug in du edre of fl IlIof 1i t demlptlm or qufty or goode or oe brefcIcy. or e pegmemt or Uo u W a! flue 2Su of tue_bea of credit prior to _du ont goads, -e abe to Vour prior upproveL TM _uderigud wE only w to mudemeto go letter of crelt tr we a hooordmuo wtu terms of thue AgeenedLt Tud fueluwr raps tu ml propoed_nm wE be copid to you by tu negodathg berlr for yor Infantulon or appoel opraS

C s*u til you obioam to u* peyrut unud tu Specld ComMueuuu by bhetnu e udts ae *smm fu oucenny of fu Accousut ma fl,t to cwe exmhwge rete fh_bdou The usuwtre d aees du If. be_a of tdImiteuom cdmm, _e megt debas fu fm mut n d to pe du netlng bh u, bwamy wonerftd potn ar dw Acowq be debused e oeer lu athloiancy~ If thenS US tIm ucomnlttd part. of gS Accoaut Ie hm?flo to omw desdelIau. - au wil mwu ti wdurl who t- are to muke mmch peyrnuent prawiptly to flu ngodeug bet-

1 Vaw ora mutr flu Specl C_amu eI Is'nhSC exoept - fu World Bet sl ouerwle swre, 30 ye ft Iu explry Oft of go etr of credit or ate datu

dS of fu lam or Developmrnt Crt Awaten (umlsnwr le owwrk. qu nent by Flue Weld et to " euegollei-g bet of e full vSu of me laser 01 wait n aocardee wh

go te mud ou of fl SpecS CouranuLS uon Ipt by fU Werld flat o wtl Mksnotice tri rngot bat spr elyng to SpecS Couutlgu ma be cewaled.

E The rdrgmued le met previusy t r from tu Accoeunt to m Ifimete expendie The .Mudeuged turn rut addoes nODt to obtaIn fumeb far ae pfpoe at of ue proeedst of mny ofwer Om rait or cnr

F. The goode or ul ogerd by fil apploa. n- bebu pv_lere hi cordeue waM goue tru of fu AenuueSWA lie expwnire wr begt muob ady tro goode or tuelcs frao efiptiewsin

It hil emma Use S or pert oft tluI wihfrawn fro Accousnt present to Wn applicatiom returnd to to -Wed U.k.do uwueud tmeby autcre flue Wold *et to apply fl awai vue of h Etude - ared to -fue Aoasut er, If te-ast Is auiappl Mi tmdo timt borrower's rn p_me d_ for b coauimuben ug eenme at or prhurlphL

DETAILS OF LETrERt OF CREDrIT DErAILS OF EXPENJOTUREt 111 AND ADDRESS OF NEGOTIATING A ALtE AN AneS OF ONTRAC t OR Sam m En

Credlt Lyonnais PeO of credit btaelll

Main Branch, Chuamps Elysee Hotors Inc.

Paris. France Paris . France

SWFr Cate CELIERPRCRUIN DTLI. NAM AND ADrESS OF OPENIbG a0 F BN ) CmOTaEr O CaASER AND CAE

Anybank Aor oer referen e W ontrat doaumen

Main Street 3579 oE June 30. 1991

Caitall City a) DAlE OF PsaaUjegr NO-O6.ECIC NOTESRurit4 (camplewte for oraers boe pitor review tmit

UA mEa OF tLC CPENtR S HOWW OR EXECUOrO AGtC) June U. 1991

Ministry of Agriculture 5 Min-bses

ia wmcmwas oams7. L OFR ff A e CATEGORf OR StfPRCE NO 2

d OPEWNI BAWS LJC NO. 6666N PERCENTAGE OF EXPEOETFES TO BE WKWIF

i C ECY NALE F By 1UE WO4 D BANK 1001

0BY JOiT FIt Of mWy NMLdi QCY AMOWI 615,000.0D

I 1. SECAL INSIUCONS Ar RE Sd LJC EWW DAEI Dec. 15, 1991

IZ GOVEIWIHEN OF RUR1SANIA 14 Or (agd) Harold R. Brovnfhu of BroWe SgnaelW of Aedoruzd FPAreenAtive

la July 15, 1991 la. By Harold R. Brown, Project Coord., Hjn. of Agriculture

D_e t_uieto mud rhtlelel ol A.ulred RepreeserteiWvelsI

uS rT AFLPrPATION nOIRLICLE TO A CM SS SHOW AMOE

F" World But SW Only

SC ma mApoved W/A NoL

raw lo" n-2

:- ~~ :. i: X, - a:- .t ti-e

Cs ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ Dt u.aii.,e,

78 Annex 7: Special Commitment (Form 2018)

E u ITHE WORLD BANK1818 H Swet. NVW WOhIWon DC 20433 U.S.A.Telephone 1202) 477-1234 Cale Addresses: I AFRAD N & INDEVAS. Telex No. RCA 248423.

Lowa/Credft/Cofinnclwrs No. Spocial CommItment No.

NOTE Al corrspondencet must nclxb the LoanVCreltlCofirnclera Nibm ad the Spool Commitment nibe.

You Corspondent

Yoar Corrmspondenrs LIC No.

L ApplUcaton No.

We tnsit heewith a copy of a lttr of crei which we undurtai you n prepwad to a. advise or confirm infawor ofhI the anount of expiring on

In coderatdon of yow accetano herof n provided below, we hereby iravocaly aee to(a reimburse you for the negot butt) for my payment made to or on the order of the benefliay mder mid in

accordance with tterm w -i0the lte of credit.(a pay to YOu (or th negotlig bwt- anoasts tt hawe bacome dwue the beneticiy uider mid in accordanc with ft temr

of the lntt of rmcedt in which case you agree to mike pywment to or on the order of the benaficiry upon receipt ofour remttanc

Payment *tl be made by us promptly but ot latr the 30 diys aftr receipt by us of a written request thfor a hereinfter

This Speci Coninit Is subject to h following tm.s wad cndionst1. You wiv isiue, advise or confirm the kter of credit ad promtly advise us of my change In the ngotiating bL2. You uadrike to prompty fanish us with copies of Al amnennet to ft lter of crAit Such an_enuet n subject

to the folowing additionl conditons(D y sa nmet Invdlving a chnge In th valu of the letter of credit the description or quant of goods, or the benfidwy.

or advance payment of more thn 25 pernt of thMe vus of letter of credit will not be operave until you reoeleour written wovtl

U any a_dment extening th expiry dat of the btter of credit mora ta six month beyond the origina expiry daeor beyond (whkher Is earlier) will not be oprative until you reciWe oxr aprovaL

3l If th letter of credit is not denominted in the curranc of your country, you will notify us of the nrm and adbas ofyour correspondent b_nt hi the country of such curarecy who wil receive funds for your eccaunt

4. We shell not be obligaed to pay you uless a SWIFT/telexleabla or written request for pamnt shal have ben receivedby us t our abov stted addreis within 30 di 7 of your negotiaon of docuaents. Our obigation wider this SpecialComuitnent may be terminted 30 dsp afr the dae in pqagrph 2k) xov or six months after the letr of cret expirydte (whichevr is eaiir)l We shil not be obigatd urwr this SpecWl Commitnnt to any person Gncluoing St benefiolywider the letter of crodi) other hn you.

S We shel not be obliged to you in respect of inteest conmnision, othr chege or expnse in connection with thebtter of credit

8 You agree tht upon cancellatiorn expirsaion or final payment of the btter of crecit you wOI advise us promptly threofIncluding the mount of any canelatorL

7. This Special Co_nmiteit rmy be Ilsued under a World Bank Loan or Credit Agreement by the World Bak actn, jointlywith a co-financier, or by the World Bet acting as agent for co-fina ncir. Since such financing i limitsd, we shI notb obliated to make paynt to t extnt that thy would hI tho aggr exceed tho equant as determined by uswhen pwmamnts e d, of._hi additi, ouw co-fniciees obligtion Of any) is limited to

It is or policy to regi sufficent fids in the Loan/Credit account to fully cover outstadin Spscial CoImir_ie Ourborrower ha agreed tht if, because of this linitation clau we canot disburse the fail amount needed to pay you, myumconimd porion of th account may be isbursed to cove th deficiency, ad in the even the uncommtemd porion ofthe count is insufficient to cover the deficincy. oir borrower wil rrane to nmce such paWymnt promptly to you atrrecipt of our notification

8 Th Special Comniuent Is governd by th laws of Englad and th cours of Engnd shl hav non-exclusive jurisdictionto resolv any dkpute ring out of It

Your ftrt request for paymnt shell oonsbt yu- acceptac of hs Specie Conitnent hciuding all the tmns and conditionsherahin st forth r evdeced by the copy of this agreemnnt on our fibsl

Very truly yasI7TERNATIONAL BANK FOR RECONSTMIC'ION AND 0EVELOPhIET

INTENATIO3AL DEVELOPMENT ASSOCIATION

9w:fOr 2015 11-t2 AUthriSed Sienatur

D ;sbweJt Handbook

Annex 7: Special Commitment Form 2018) 79

Special Commitment (Form 2018)Issued by World Bank

The Bank issues a Special Commitment in this form in favor of the negotating bunk as a resut of the Borrower'.Applicadion for a Special Commitment on Form 1931.

Wit the excetion of the following, most of the details in the Special Commitment repeat tie infoamation in theBorrower's application. The exceptions are:

1. LoanICreditiCornumder Reference Neiber: The number assigned to the loan(s) which provide fumding forthis Special Commitment. In most cases, the number will match the number appearing on the Bonrwersapplication, but differences may anse primarily where cofinancins are ivolved. This number mad the SpeceilCommitment number must be cited in a payment request and other cesponden related to theC itment.

2. Special Commitment Number A sequential number allocated by the Bank, which must be cited in allpayment reusts and other correspondence reated to the Commitment, togeher with theLoan/CrdlCoffinmnier referen:o number.

3. Date The date of issue of the Special Commitment.

4. Terms and Conditions:

0) The Special Commitment stipuS a series of conditions with which the negotiating bank must comply.All amendments to the Letter of Credit must be copied to the Bank by the negotiating bank, and theamendments listed in paragraph 2 are subject to the Bank's prior aproval.

(ii) The date inserted in paragraph 2(b) is the Loan Cosing Date. No Special Commitments will be issuedwith validity beyond this date or any extension to the Closing Date as may be detmined by the Banic

(iii) Pmgraph 7 cites a limitation clause which is included in all Special Commitments covering Ites ofCredit. The amount shown here reesents the aggregate limit, in the currency of the loan, which theBak is obligated to pay. More detailed information on this clause, and on the nner in which theBank monitors Special Commitments and adjusts limitation amounts, is provided in pans. 4.234.24.Wher the Special Commitment is issued by the Bank on behalf of a cofinancier(s), separate limitationamounts are provided for each cofinancier in the curency of the cofinancing loan.

5. Bank's Authorzed Signature: A Certificate of the Secretary specifying officers authorized to sign SpecialCommitmets is issued periodically by the Bank. Commneia baks who wish to have their names added tothe mailing list should contact the Bank Liaison Office of to Cash Management Departmet, at the addressshown in the Introduction.

Noles: * he negotiating bank must promptly advise us of- any change in the negotiating bank- all amendments to the Letter of Credit- cancellation of any unutilizd balances

* The Bank is not obligated to pay the negotiating bank in respect of interest, commission,other charges or expenses in connection with the Letter of CrediL These amounts must notbe included in payment requests.

. . X : .. ; . . ~~~~~~~~~~Disbuesemw Randba*l

M " ~~~~~~S

.X 0 ~~~I

o l l'~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~aa

oo ^ S

Annex 7: Special Commitnent - Exanple 2 81

EL THE WORLD BANK1818 H Shf M.W.. Winhdngton. DC 20433 U.S.ATel*pon (202) 477-1234. Cal. Adleeea: INTUAFRAD & INDEVAL Telax No. RCA 248423.

Lor'Credit/Cinnl Ism rNo. 3000-RUR Special Commitment No. 1NOTE Al oorreonpdnc mu Include th Loal>reditiCofnancler Numnbe ad hew Specal Corwnnntnwvt Nnmter.

[redit Lyonnais oDae July 29, 1991Main BranchChamps Elysee Your Cormspondant Anybank, RuritaniaParis, France

Yow Correspondenfas UC No. 6666tention: Documentary Credits Department j

ff~~~~~~~~ AppikgJtun No. 5Gan-

We trnmit hewith a copy of a hlnt of credit whch we snderstnd you we preperd to Iss_e, advise or confirm infuro Of Motors Inc.in go mnount of FRF 675,000.00 expiring on December 15, 1991

In consideration of wuw acceptnce hereof as provided below. we hereby irrvocably agree tmWal redinhe you (or the negotiating bnk) for _y pamnt made to or on the order of the beneficiuy under and! In

accordance with the terms of t ltter of credithi pay to you (or the negotiating bat) anounts that have become due the b fic7_y under ad in accrdance with t term

of te ltter of credit in which can you agree to nuke pymemt to or on the ordr ofthe beneficiwy upon receipt of-w remittance,

Pamnt shlid be mad by us promptly but not laer t 30 dap after receipt by us of a written request therer o hin

ibis Speil Conuitmnet is subject to th following trrms end conditins:1. You will Issue advise or confirm the letr of credit ad prompty avis us of any change in the negotating bat2. You undwtWke to pronmptlv Iunish us with copies of all ame11ndm to the letter of credit Such anendmnts we subject

to the folowing additional codtioni an aendment twolving * chig in the valu of the letr of credi, the dswription or quty of goods or ths benftls

or advace payment of more thn 25 percent of the valuo th let.-~ of credit wUil not be operatie until you receiveOLw written -prv

(bi an amendment extendiing h esxpiry dae of the ltter of credit wore thn six nonths beyond the original expiry dator beyond Jue 30, 1995 lwichover is mler) will not be operative ursbl you receive our approval

I th lettr of cdit is not denominated in tho crrency of your country. you wiE notify us of the ne and addr*e ofyour correspondent hak in the county of such crrncy who wil receim finds for your account

4. We sidl not be obligated to pay you unless a SWIFrTtelexcable or written request for payment shel have bean receivedby us at owr above stefd addes4s wilhin 30 dys of your negotato of documents. Our obligation unider this SpecilConmineant "wy be terminated 30 days after the damt in pngah 2h saov or six months after the letter of credit expiydae (whirchever is ealierL We shall not be obligated undir tWs Speial Comunitent to y person Gncludnt the befWiiwyunidr the letter of cred othw thn you

5 We sheil not be oblgd to you in respect of intrest conunssi other chages or expenses in connection with theletter of credit

5. You agree that upon cancelion expiraion or fina payent of the lttter of credit you wil advise us prompty thofinckduing the anount of any calirbon

7. This Special Comnitmdint may be issued under a World Bnant Loan or Credit Agremenwt by tgo World Bank act. Jointwith a co-fkirncier, or by the World Be* acting agent for a co-financier. Since such finmcing Is limited we sil notbe oblgated to mne paymnts to the exteit tht thy would in the aggrega exceed the equivaent as determined by uswhen payments m mad n t tUSD 93,000.00hi addition, our co-finncies obligation Oif any) is limited to:_It Is our policy to rin suffkIent funds hi th Loanltedt account to lly cover outsanding Spei Courimnts. Oirborrower has agreed tit if. became of this limitation clause, we canot disburse the fdl anout needed to pay you, mymncomitted portion of ths acoont may be disbursed to covr the deficlency. ad in the event the unconiitted portion ofthe acoount is isufficient to cover th deficiercy. or borrower wHI range to make such payment promptly to you afterreeipt of ouW notificain

S. Thid Special Connm dt is govwerd by the laws of Sigled ad ie costs of Engrard shal hav non-exclusive iadictnto rasole any dispute riing out of It

Your tirst request for pamnt shal corntitte ya acceptauca of tlis Special Comnitmnt including all th terms asd conditnsherein set forth -s evidenced by the copy of this agreement on our files vt trulr

INTENATIONAL. IMAM FOR nEcoNswjcylorN ANDO DEVELOPMEIff

(signed)FOAM 23W0 (I-ISAnl Slgnnnra

-- MDbarsmen Hiandbook

82 Annex 7: Special Commintent Request for Payment

THE WORLD BANKSPECIAL COIUI1NENT REQUEST FOR PAYMENT

P NOrE: SW/F, telex, or cable requests e the preferrd mecaism to request pamnt.

Instnvotlons for Complmthg SWIFT/TlexICble P amRntequ

1. Masqe todd biote tIBRD Lon VA Credit or Cofhiwr nubaber. Ikcigu t Wo- or Uae-oha'crtbreviation for to borrowing ootry. cor Specl Conffultmnt Number, to curray amowt p-id to to banfloiry,md do Lttar of Cot reference.

Z Speool Paymnt Intructms or Information on dh sts of th Luar of Crodt such a extenaon to th expiy du ordispohorn of to balnce of the Lar of Credit. should ha inokdo a VW and of th stand tblax formL

An exmple of the appropria text Is - follows

TOk NiTaAFRAD Cor JIDEVASL WASHNGTONFr= LOAN NIJIBER tPlnbar)SPECIAL COLATMTNT MANiE NwntbarJLErTR OF. CREDIT NmA8 [Nunur]WE HAVE 0aT1 0 DOCNENTs FOR IcWO] Amosn)tPLEASE PAY [Ban Nw).[Address CTNG OM FWRECE (Rafrac Number]LItrLZD BALANCE OF ECCvJ [Amotntj HAS BEEN CANCELLEDDOcuWqTARY CREDITS DEPARTMS'r.TBu Nuna. [Ae*es]

Maled cornfirmtion of th SWlFrftuIaxcle rsquest on Form 2015 Is NOT ruqirod

I knuctuons for Compnleti Mailed Payment asts_

Whil toe Bat proes to recoiw paymt reaqusts by SWFT. telex. or cabl. It will alm ccpt request for paymnt bymail i to following form This form should NOT be sent If paynt ius tady boon roquested by SWIFT. tlex or cabis

DateIBtD LomIDA dCrdt Mom

TO The World BDan Cofinaciws Ref. No.1818 H Stot NLW. IBED/iA Spacia Conunitrmnt No:Wsluigton DC 20433 Ow Rot

OLr CorpapndntATIENTOFt Disbarssmfl Division OD Corraspondets LJC Neu

SPECIAL COINbTMENT REUJEST FOR PAYlENT

We hae poid or wil pay to or cn Vi ordnr ot(currency rid aounxd

nmad aW sof boniufiary)

ndr Vie Lenar of Credit Specia Cominent id Lo/ClOitCoftin_eiar awemnt manlonod above. Such paantbu bown mna. or is duo ad will be promptly made to t banficiary undnr and In acoordac with to terms mdconditions of th said luar of credit and anwnno.nts if any. appropriately approvad. We roqut pamot of thamount prsuat to said Special Conmitmnt

Baance of to tr of credit [aOhs boeen cncedbd will be utitad(currency and aowun

Validty of to lutwr of crdit baa bon extundud to

S mstwsmrb ut i auct

Vary tr yowur

Auhflud Signar)

Nai and Addrss of Coornurcial Ba*)

FOIW 2015 (1-32

DLrbmemeat Handboik

Annex 7: Special Commitment Request for Payment 83

bnwb for CaRldi SWlfee/aW .Sm C

Notes: * SWIFT, telex, or cable requests no the prefered mechaim to reque payment. Instuopply to commecal banks that have received a Special Commitbegj. by the Bak on Form

2018 (Annex 7, p. 74).* Separt requests for payment must be prepaed for each Spciad Comimtnent.* Special commitment do not cover interest, commission, other charges or expenres in

connection with the letter of cedit

1. Messages should indicate the ]BRD] Lan, IDA Credit, or Cofinancier number, irnduding the two- or thr-chaact abeviaon for the borrowing cautry, our Special Commitment Number, the currency andamount paid to tie beneficiary, and the Lettr of Credit refiernc

2. Special payment instructions or infomation on the status of the Letter of Credit, such as ectension to tho expitydate or disposition of the balsace of the Letter of Credit, should be included a: :he end of the sandard fomsL

An example of the appropriate tea is as follows:

To: INTBAFRAD (or INDEVAS)RE: LOAN NUMBER [4 or 5 digit number, folowed by 2 or 3 letes sipifying borrwing country]SPECIAL COMMITMENT NUMBER [1 to 5 digit number]LElTER OF CREDIT NUMBER [opening bank's letter of credit number]WE HAVE NEGOTIATED DOCUMENTS FOR [currency name[amount in figures].PLEASE PAY [bank name], [branch name and addrs], CITING OUR REFERENCE [referncnumber needed for corrct identification of payment by negoating bank].UNUrILZED BALANCE OF [currcy namel[amount] HAS BEEN CANCELLED.DOCUMENTARY CREDITS DEPARTMENT, [bank name], address]

trcions foi- ComDletnr Mailed Reswust for Ptayment Form

Notes: * ConiraiFon of a SWIFT/telex/cable request an Form !015 is not required.* These insuuctions follow the saeqe of the fields on the printed Request for Payment.

1. Date nsert date of rquest.2. IBRD LoanJDA Credit/Cofinancier No.: Insert the full referene (number and letters) as it appears on the

World Banks Special Commitment (Form 2018).3. IRD/IDA Special Conimib ent No.: hisert the reference appearing on Form 2018.4. Our Ref.: Insert negotiating bank's own reference.5. Our Correspondent Insert name of openig bank cited on the ank's Special Commitment.6. Correspondent's LIC No.: Insert opemag bank's Let of Crdit Number cited on the World Bank's Special

Commitm.L7. Name and Address of Beedary Must be te -m as the beneficiay of the Letter of Credit.S. Balance of LIC and Disposition: Must be included, since it is important as a check on our records.9. Validity of L/C: Advice of extension enes hat dIe Bank keeps the Special Commitment open in its book.10. Special Reim t Instuions: Should include payment muting or identification, or the name of the

corresondent bank in the country of curreny payable, or other inrmation if appropiate.14. Authorized Signatur To be signed by authorized person in the commercial bank15. Nanet Insert name of signatorry.16. Nnme and Address of ComImei Bank: Name and address of bank making the request

Disbwrweme Haadbdik

00

* tHE WORt LD BAIC

APPLICATION FOR WITHDRAWAL ._ AppuIItcon No ____ Sav NMSTATEMENT OF EXPENDITUIRE (SOE)[ [ l CONTRACT DETAIL catwn eor SA-Pro,Jt No. _IBM_ BA Lou% IVA Credit or Colrwuwlr Rat. N._r ~~~~Read reverse for rrell

Contrac or Totat Aiomt of | Wlce A|moit AmoLmt Paid fro|mN06 corIS4pUsN0 IL t WOld3 #Or lwIl Arioim of Comrbotl by Aplc Eligbi. for Special Accorml Aamwhs mwfor Oter Rat. 04d@t or Nentectitor PnmIngk of N

TOTALS

SUPPOMP4t DOCUI^ENTS fOfl THS SOE RETAWED AT ( insert lotwoNimz 1to3-3 41.§3

Annex 8: Statement of Expenditure - Contract Detail 85

Instmetions for Completing Application for WithdrawalStatement of Expenditure (SOE) - Contract Detail

7be Disbrenet Leter for each individual project Sate those expc nditures for whih reisument should bo claimed using dio Swaenef E inditom SO) procedure.

Notes * Ue tis fom for payments against conrcs whea the Dank reqpirs ful details of cach payent.* Submit Statemet of Expenditure (SOEs) in dupica,* Prepsze msp t. SOEs for each category.* Wl Sumas Shoets or SOEs a used, leave items S through 7 blank on te Application for Wdrawal (Form 1903).* Cek information on Summy Sheets and SOEs to esure that Iei rfeences, mona, an d ir deils am and 'tI

they sae with the data on dte accomying Application ror Withdrawal.

ljtrains Fellow Seesae. of Ites on SOE Farm

1 Appication No.: Same as on the acconpanying Application for WdhdgwuL2. S_masy Set No.: Number the references begmining with number occ.3. IBRD LonlDA Credit or Conmaner Referne Numben Imac fiull refetec (number and lear) - it appears on the

accompanying Application for Withdrwal.4. Cagoy or Subprojet No.: Obtain catcgory reference from Schedule I or LanlCredit Ageement. The ubpzcjet nmb for

ambia intermediary loans is the numbser advised by Ihe Dank when it approved t subprojecL5. XIte No: IdenCfies item sequentially within each summary sheet, and facilitates identificatio of the rdlevant item in any related

correoadenee.6. Name sad Address of Conrabtor or Supplier Give the name, ciLy, state (for supples in the U.S.A.), and country.7. Contac or Fushse Order No. aid Daw Give full reference to ense that the contact or purchas otter can be readiy idtified.8. DI;escuiptin of CGoods, Works, or Serviea Give brief description, for example, elekical equipmentconaructon of scool etc.9. Currency and ToaI Amoat of Confract Give currency namc and value Cmaerding any pric escalations).10. ToW Asset of IEOices Covered by Applialien: Give currency and tal value of invoices, net of rtntion and other deductin

for ineligible items.11. Ellle PFermat Eligble pementage taken from the appropriate category of Schedule I of the Loan AgreemnI2 Iavice Amout Elgible for Finanig: Tol amount of invoices covered by the application, multiplied by the eligibk p _er .

Amounts are net of retenion or other deducti-ns.13. Amount Paid from Special Aout (if any): Total amount charged to the Special Account in oder to pay the snwus shown in to

preceding coumn. Use- ihis column only whcn claiming replenishmcat of a Spcia Account-14. Remasts Include invoice refcrences or other useful da to identify location of documents.15. Date of Payent Date of payment to the supplier.16. Tot: Give totals for coluams if all amounts Eled are in the same currency.17. Supporfing Docnmts for this SOE Rained At Show die central location where the documents have been retained.

Suonertint Documntos

Wheat the Wodd Bank has agreed to disburse against Statements of Expenditure, final contrcts or purcase orders am! other procure_hibrntion should be retined is a cental location with other suppoding docunments related to individual payments These documents inchudoat or mosm of the folowior

* Supplier's or consultt's inroice, or a suamary satement of works perfonred signed by the supervising engineer or oherauthorizd official

* Evidence of shipment made (for equipment and materials purchased)- This can be one of the fllowing:- copy of the bill of lading- forwarder's cetnificate

* Evidence of paymenL This can be one of the following:- receipted invoice or formal reccipt- commercial bank's report of payment

* Performance ecurity such as a bank guarantee in the ease of advance payments where requird underthe conact, or herthe anmoun represnts an unusually high percentage of the total cost of goods

Carics of the Rauk atenwt and reconcilation statement mus accompany the Application for Withdrawal if this is a request for replenidamaof a Special Account

IhNe documents mus rt be adily retievable for review by auditors and visiting World Bank misioncs.

BORROWES AE ENCOURAGED TO SUBMIT COMPUFERZE STATEMENTS OF ENlTIDiburSement Letrs may specify additiond s required for specific projects

D;zh w lien Jbe&

00

E THE WORLD BANKC_ _ _ _ _ ___ _ _ _ _ _ __ _ _ _ _ _APPLICATION FOR WITHDRAWAL Dg. __ N__Su___ 4Abemwy w Na.STATEMENT OF EXPENDITURES CSOEDFREE FORMAT Catow or Pa NubPro.ect N._OM .L V DA CrH Or COha.ndw No N_Follow fornw stipulated in DIsJursnemM beatr

Read rvrse for InrsudlIon Perod Cadw0d to

Item

00

a~__ ___ ___WF \= II

TOTAS

SPPOVrT DOCU&UMS MA THIS UX RTA* AT _ _ __ ert i

Annex 8: Statement of Expenditure - Free Format 87

Instructions for Completion of Application for WVithdrawalStatement of Expenditure (SOE) - Free Format

11 Diburnameni Letter ieh binllvidu projec saems dSm ueodiuv for which reinbursement houd be dulimed us theStatanetafEExmndat (SOE) prroc lii form is deied iwus in hec we the Dimburenet eresr a speciallydesgnd SOB form to mee project reprti requirement.

Nate a U- ti form hor exediture. whee th Duk doeB not rpire full detda of each pmyment.* Submit Statemeb of Expenditue (SOE) in dsslicat* Prepar separat SOE. fr each categoy* When Swuiay Shbet or SOEs we usd, leae items S trough 7 blnk an the Applicalion for Wisdr.wml (Form

19m) * check information on Sunmay Sbht ad SOB. to aensr that the refere. nount, and othr detl. are

crrect and th tey agree with the daa en the accompntying Application for Withdrawa.

.uup4& ~ Fellow Seauece of Now o SOE Form

1. Apuicii No Saue - on the acompanying Application for Withdrawa.2. Snnmmy fSeet No.: Number the referces beginning with number ow-3. DERD Lan A Credit or Coiandier Refec Nunmber Insert fidl refrence (number and lettar) it apear on Ihe

accompanying Application fhr Withdrawal.4. Calgwy or S;bpoeS lo.: Obtain categoy rcrence fiom Schedule I of the Loan/Credit Agreema Le .abproject numbcr

fu fianeial intermediary lons a ihe nmber edvied by the Bank when it approved the mubpojecLS. Fadid Comerbh Reporting period duing which expenditures sumnzedin the SOE wre incurred. SOEs should normlly be

prepad a a monthly or quaterly bamis, and should generally correpond to the rorting fiequency hr replenismhent of theSpecid Account, if the eypnditures hve been financed fiom ucisa Account.

6. ItN No.: Identifies item _quentialy within each SOE, ad facilite identification of the rdeevt itcm in ay related

7. Sapwotmg Doan_et far this SOE Retaied At Sbow the central locatio where t documents hve been retained.

The data to be filled in each of the reaining colur.m will dqed on the pecial instuction provided in the Disbursment Letter.

&ggMDoaSums

Whee the World. Bank ha agreed to diburse aganst Staemnts of Expendibur, finl contracts or purcbhe order. and olher procurementinformation ahould be reained ins central location with othwer mpporting documets relaed to individul pyments. Tbem document mayinclude one or aerc of the following:

* Supplier's or conwlktznt. invoice or voucher, or a smmay eattement of works pernmed signed by the supervisingenginee or oiter authoized official

* Payroll vouchers (for forc. accout civil work, or for incrementa operating coa including salari)* Evidence of siinment made (for equipment and mtecrid purchased). Tis can be on of the following:

- copy of the bil of lading- forwarder'. cetificate

* Evidence of pqment. This can be on of the fbUowinpreceipd invoice or fornal receipt

- commercial bnk's report of paymnt* Performce secuuity scb - a bank guantee in the case of sdvance payments where required uader tei contract, or

whe the amount rprements an u_ummaly high percetage of the total cot of goods

Copies of the Bank atement and reconciliation sLatment must accompany the Application for Writhdrawa if this is a request forrcplenisseu of a Special AccoutL

Retn qsoarf docunb" for tie period oddd in dbr LadCredit A _remN edocumet must be readily retrievable for review by aditors and visiting World Dank minioaL

BORROWE ARE ENCOURAGED TO SUBLT COMPERZFD STATEMENTS OF EXWP tEprided they incude a1 detal sciied in the DkwLdber T

,-.'.-,,,- 0 # . . # . :- b_sitmewudandok

.88 Annex 8: Statement of Expenditure - Example 1

Example 1

Sta;ment of Expenditure (SOE)Request for Reimbursement of Force Account Civil Works Casts

1. Completed Staement of Expenditure (SOE) opposike.

2. The Disbursement Letter for this Loan states that expenditures for selected civil work undertk by thoborrower's own labor force may be reimbursed on the basis of Statements of Expendtibr.

3. The Government of Ruzitania requests zeinibummet of DEM 467,413.39 covering expenditures made fomthe Speciad Account (denominated m Deutsche marks) to cover the cost of force account civil wodssundertaken by the labor fome of the Minishy of Works.

4. The expenditures shown in the Statement of Expenditure are eligible for financing under Catgory 1 - CivilWorks at 50%.

S. The implementing agency is the Ministry of Works.

Supporting Docunents

Retained in a cent location at the Ministry of Works, for review by auditors and visiting Bank mision:

Contwacts and pocurement documents, if any, for materials associated with these snall-scals works

Vouchers, invoices and receipts providing evidence of payments made

Payrol documents giving evidence of wages paid

Full details of all constmction undertaken

Submitted with application:

Bank statement from the bank holding the Special Account

Reconciliation stment of the Special Account (see Annex 10)

Dsibaunsem Handbook

TM$ WORLD lANKAPPLICATION FOR WITHDRAWAL Ca Itflu IS, 1Q01 AppIah Na. a" ftSTATEMENT OF EXPEDIT1ME9 19093FREE FORMAT CWo,gwy at "Project Na6 MDW L@uc IDA Cock or CoWl -as Nof, Mm 30002RUt1Follw. fweut atpu/al in Datuneent* Met.And Wrede for InhtrnwtloW Pitied Coweed W[ayC 1 101 toJune 30, 1991

PREVIOUSLY EPNIUEtonTYPE OF WORKS SUTO BDOET FOR 1991 REPORTED FO IN THIS PEIRIOD ELIGIBLE AT 5OZ AMOUNT CHARGEDNe6 asio9a1a TO SPECIAL ACCOUNT

_ _ _ _ _ _ _ _ _ _ _ _R_ R$ DCK

1. Foeder Read Maintenance 1. 2,600,000.00 1.790,100.00 -- ---

2. Culvert Impair 1 300,000.00 420,805.00 79,620.00 39,310.00 21,235.15 U

3. Feeder Road Kalntmnanoe 5 1,200,000.00 203,690.00 230,908,00 115,404.00 56,355.21

4. Culvert Repair 5 500,000.00 117,500.00 - I 5. Feeder Road Conatruction S 1O,000,000.0o 2,486,700.00 1,523s066,00 761,533.00 389,790.010

TOTALS t ~R614.800.000.00 *S,018,795.00 RS1,832.494.00 R4916,247.00 DEN 467,4l3.37

~. lflLO 4142 aPPORTPd OOCIAwTS fOR TM$ 6M FTARS Al MINISTRY OF WORKS( HEADQUARTERS -nNt l4oedW

00

90 Annex 8: Stment of Expedituxe - Example 2

Example 2

Statement of Expenditure (SOE)Request for Reimbursement of Local Training Costs

1. Completed Statment of Ependiture (SOE) oppoite.

2. lh.Disbu dCmt Letter forthis Loan states thstexpenditures for local tbaingprogmms may be reimbulan the basis of Statemets of Expenditure.

3. The Govement of Ruritaa requests t of 41,395.80 Ruritmia Dollast to cover tho cost oflocal trainig proga

4. The expenditurs shown in the Staement of Expenditr are edigible for financing under Categoy S -Trining at 60% of local expenditues.

4. The implementng agency is the Ministry of Agricultr

Suppotng DNant

Re-maud in a cetral laion at the Minishty of Agriculture, for revekw by auditors and vsiting Bank:idm

Contracts and proment documents, if any

Vouches, invoices and receipts providing evidence of payments made

Full details of all bt s pticipaing in traing comes

Submitted with appficaton:

Batn sbtement from the bank holding the Special Account

Reconciliation stement of the Special Account (soe Annex 10)

Dsbbmwg Hauboak

7HU WORLD OAK E.APPLICATION FOR WIT.RAWAL Om April 6. 191i. No.

STATEMENT OF EXPENDITURMES IGOE) __a r"poo o O o D rMo *bmWRf u 00RIFREE FORMAT aeoyr a-rJ. o La IACeiorCfuelRe.N 3GkU

Follow lormat atIpulated in DIsbujrurnent Lef'tef Cwad Mrh ,191t

Purpose Location No. o f Total Costs Eligible at 602 RftarkeNiL ~~~~~(Province) Dates Trainees

'~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~b th an:uxo

1. redExteneLon 3190.0BohprgamRppoeToehniques - South March 11-15. 1991 15 53,265.00 39080by the Branka ele apoveIntroduction

February 1, 19911

2. Poat Control

Techniques North P'atchi 18-19, 1991 2a 15,725.009,..0

0

TOTALS_______ R$ 65,993.00 *$ 01,395.80____________

sg?oATM oocu.NTS MOR TiIs GM FTAINO AT Ministry of Agriculture Headquartrer hal

, .e.. 1643.4 Il*6I

92 Annx 9: Example of a Comfort Leer for a Special Account

[Lethead of Connewial Bak Ising Comfort Lettr

Da_

Dimetr, Loan PDq aTem World Buk1818 H Stet, N.W.W ahingt, D.C. 20433

Dea Sir

We rfer to the procedue of the World Bak (IBRD and IDA) for disbursement of loas ad cedits forWorld Bank ivstment psqects and adjustment progms tirugh advances to special deposit acounts opened byWord Bnk Bonowers or other beneficiaries of such loans and credits.

it is our dndt t, illn f_hrance of the prvision in the World Bank's Articles of Agreemtdesigned to ensr that the proceeds of any kan or credit ar used only for the purposes for which the loan or craeditwa granted, the World Bank prvides in its loan and craedit agreements and supplemetary disburement documenthat the Word Bank must approve of the placement of fiuds in such accouts and of the terms and conditionstbereof.

From time to time, [name of depositoy bnk] opens accounts, of the nature deibed above, for or at therquest of World Bank member Borwers or their cental banks -or other Bonrower or beneficiary entitiRecognizing that the Wodd BDk has an interest in safiguarding the use of such fiuds for the special puxpoes ofits projects and progmms, we are pleased to confirm that [name of depository bank) will not assert any claim toset off, se4i or attach amounts on deposit in such accounts to satisfy amounts due to [name of depository bnk]except anly to the extent nectary to prt its position in such instnces where a third party tkes stp to attachsch funds. In the event th a third party has attahed funds i any such account, [name of depository hank] willinrm the World Bank immediately of such attachme and will coopee, as appropriate, with the World Bankin its dforts to seek the removal of sudcb atthment(s).

We undestand dat tis presenaton will be relied upon by the World Bank in approving future accountarrangements and the placement of funds advanced teeto.

Yours sincerely,

Authorized Officer, Head Office[name of depository bank]

Ibte A singl lier fom die head office of a comecal bank covers Special Accounts opened by anyborrower at all branches of tht bank.

Disbarww Handbook

Annex 10: Special Acowunt cncliation Sttement 93

SPECLAL ACCOUNT RECONCILIATION STATEMENT

LOANICREDITIPPFCOFINANCEER NUMBER:

ACCOUNT NUMBER: wmIT (Dank)

1. Amount advanced by World Bank (or Cofinancier)

2. Less total amowt recovered by World Bak(wcovey proces norly begins twardstheo end of the project):

3. EQUALS PRESENT OUTSrANDING AMOUNTADVANCED TO THE SPECIAL ACCOUNT _

4. Amount in Special Account at (date)p br ank staeent (copy attached)

S. Plus amount of eligible expendibtr doc_uentedi ached application (No. )

6. Plus amounts claimed in prvious aplicationsnot yet credited at date of Bank stment:

Subtotal of previousapplicaions not yet credited: +

7. EQUALS TOTAL ADVANCE ACCOUNTD FOR _

S. Explanatio of any dicrepacy between totals appeanng on Lines 3 and 7 above (e.g. items pai fom accontbut not yet claimed, eaned interest credited to the accmut, etc.):

9. DATE: SIGNATUR

- ~~~~~~~~~~~TEL:

Ditanegem Handook

94 Annex 10: Special Account Recocliation Staement - Example

Instructions for Compltion of Special AccountReconcilition Statement

(a) LeanCredltppF/Cormanncer Number. Give comploot refemace number as it appears on te rlated-Application for Withdrwal.

(b) Account Number and Bank: Give complete account number, and name of the depository bank with which th1Special Account is held.

Iostctions: Nwubers corrsnond to mnbers on the Reooncliain Statement

1. Amout Advanced: Show total amount advance to the Special Account against the Authorized AllocationDo not incud, amounts received as replishment of the Acoumt for eligible expenditu previously nrporte

2. Less Total Amount Leverd by World Bank: Show total amount, if any, tht has bees deducted from pataplications and applied to recovery of the outstanding advance Details of any such amounts are provided bytelex when the Bank begins the recovery process. Do not inlude hem any amounts that the Bank has previously

ind ingble.3. Equals Preset Outstanding Amount Advanced Item 1, minus Item 2. This is the balance that Bank records

show as the amount for which elipible documents must ultimately be submitted.4. Amount in Specal Account at [Date]: Closing balance as it appes in the atthed bank statement.i. Plus Amount of Eligible Expenditures Documented in Atached Applcation: Give application number and

amount of eligible expenditures reported in this application.6. Plus Amounts Claimed in Pteviom Applicafions Not Yet Credited. Review bank state t o mDens tha

amounts claimed in previous applications have boen credited to the Account. Provide details of any apications-id (or applied to recovery of the Special Account) after the closing date of the bank statement

7. Equmk Total Advac Accounted For. Sum of Items 4, 5 and 6.S. Explainaton of Any Disrpancy: Explain the orgin of any diflence between amounts in Item 3 and Item

7, and give detai of crrective action being take. A sAortfall in the Account balance (Item 7) may lead todelayed replenishmet, or ealy recovery of the advance.

9. Date, Signatue and tle: Date of reconcliation, signature and title of person responsible for reonciling theSpecial AccounL

Nots : Replenshment appicatos should normally include all expendits appeang on the baksbaement If this pwactice is followed, and the Special Account is used solely for eligibleexpendiues, thee should normally be no discepancy between Items 3 and 7.

* Reanable Bank charges are eligible for replenimet* Interest pud by the depository bank shoud normally be deposited into a sepate accountL Where

it is credited to the Special Accomt, deltils of he aggregate amounts credited must be providedin Item 8.

Diwhumeat -aiw ko

Annex 10: Special Account Reconciliation Staltement 95

SPECIAL ACCOUNT RECONCIIAT[ON STATEMENT

LOANICREDIT/PPF COFINANCING NO.: LOANACCOUNT NUMUBEL 22334455 WITH (Bank) ABC Bank, ABC

1. Amo advmnced by World Bank (or Cofinacier) DEN 2,000,000.00

2. Lss tot mout recovered by World Bank(recovery poes nomy begins towardshe ead of the proect):

3. EQUALS PRESENT OUTSTANDING AMOUNTADVANCED TO TEE SPEC[AL ACCOUNT DEM 2,000,000.00

4. Amountm in Special Account at (date) 12/31191 DEM 752,000.00per bank sttent (copy atabhed)

S. Plus moat of eligible expenditures documentedin atah applicaon (No. 10) 855,000.00

6. Plus amoumts climed in previous applicationsnot yet credited at date of Bank statement:

d-atiom NoAmNl

8 DEM 393,000.00

Subota of previousaplications not yet credited: + 393,000.00

7. EQUALS TOTAL ADVANCE ACCOUNTD FOR = DEN 2,000,000.00

&. Explanto of any discrepancy between totals appearing on Lines 3 and 7 above (e.g. items paid from accountbut not yet claimed, eaned intseest cedited to the account, etc.):

(NONE)

9. DATE: 9115191 SIGNATUREh /sl Signature

TITLE- Proiect Coodiator

Dfrbnil Hadbook

96 Annex 11: PaymentAdvice

INTERNATIONAL BANK FOR RECONSTRUCIION AND DEVELOPMENT1818 H Street, N.W.

WASHINGTON D.C. 20433, U.S.A.

PAYMENT ADVICE

LOAN ACCOUNT 3000-0 RURAGIUCULTURAL DEVELOPMENT PROJECr NOVEMBER 25S 1991

TO:MNISTER OF FINANCEMINISTRY OF FINANCEINDEPENDENCE STEEflCAPITAL CITY, RURfTANIA

THE DISBURSEMENT(S) LISTED BELOW HAVE SEEN MADE ON YOUR BEHALF ON THE DATES SHOWN:

-tREFERENCED BY YOUR REQUEST - - DISBURSED AND CHARGED TO YOUR LOAN ACCOUNT -CATDSOtY CURRENCY AMOUNr CURRENCY AMOUNT EXCH RATE USCEQIUVAINr

APPICATION: 25 PAID: NOV. 22, 1991 REF: WA0026A1 DEM! 60,000.000 CHF 64,512.050 1.600030 40,319.282 DEM! 238,501.000 CHF 256,436.470 1.600030 160,269.79

TOTAL DEM 298,501.000 TOTAL USD 200,589.07

APPLICATION: 26 PAID: NOV. 23, 1991 REF: WA0027A4 USD 450,000.000 JPY 57,735,000.000 28.30500 449,982.46

TOTAL USD 450,000.000 TOTAL USD 449,98246

UNDISBURSED LOAN BALANCE AS OF NOV 25, 1991: 79,605,519.90

ABBREVIATIONS USED: USD = UNE STATES DOLLARSDEM = DEUTSCHE MARKSCHIP SWISS FRANCSJPY = JAPANESE YEN

Dkbwimea Handbook

b ]w~~~I gi Wa||2 j g1

*1 ii t i iaSlii~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~: I 1S~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~f ii $

8 1 II tiii i\jj 1I III Uhf I I~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~; ea lLl

98 Amnes 11: Moodily Disbursement Summary

INTERNATIONAL BANK FOR RECONSTRUCON AND DEVELOPMENT1818 H Steet N.W.

WASHINGTON D.C. 20433, U.S.A.

MONTHLY DISBURSEMENT SUMMAY-Y

LOAN ACCOUNT 3000-0 RURAGRICULTURAL DEVELOPMENT PROJECr

NOVEMBER 30, 1991COPY TO: BORROWER

PROJECT COORDINATOR MINlS7ER OF FINANCEMINISIY OF AGRICULTURE MIZNlSRY OF FINANCEMAIN ROAD . INDEPENDENCE SIREETCAPML Cn, RUITANIA CAPITAL Cm, RURITANL

olucuAL LOAN AMOUNT I0O.000,000.00TOTAL AMOUNT CANCELLED 0.00 USD EQUWVALENT

NEr LOAN AMOUNT 100,000,00O00 UNDISRSD BALANCE AS OF NOV 1.1991: 80,343476.4

THE FOULowING DLSBURSEMENT(S) WERE MADE ON YOUR BEHALF ON THE DATES SHOWN:APPLICATION CATEGORY WIA SIC VALUE DATE CURRENCY AMOUNT PMD

24 2 25 G00002 NOV 3, I991 FRF 438,000.000 87,385.03

25 1 26 NOV 22,1991 DEM 60,000.000 40,319.222 26 NOV22 1991 DUE 2384S1.000 160,269.79

26 4 27 NOV 23,1991 USD 449,9M2.460 449.982.46

TOTAL DISBURSE DURING NO BER 1991: 737,95.56

UNDISBURED BALANCE AS OF NOV 30, 19: 79,605,51930

n= n-_m_mmm__ m_- s-- s- =PRESfNT CATElGRYBAJSCESIN USD sN-osI = ======= a-CATEGORY DESCIPTlON- DISBURSED UNDISBUSD SI CCOMaMrED UNCOMMIrrED

FUND SPECIAL ACCOUNT 2,501,012.25 2,501,01225- 0.00 2,501,012.25-UNALL UNALLOCATED 0.00 10,00,0.OD 0.00 10,000,00O.00I CIVL WORKS 4,160,991.69 4S,839,008.31 0.00 45S,839,008312 GOODS 12,235,002.20 14,764,997.80 8,32,00O(10 6,439,997.803 SUBLDANS 49,235.00 5,9S0.76S.00 0.00 5,950,765.004 CONSULTANTS' SERVICES 449,982.46 4,SSO,017.54 0.00 4,550,017.545 TRAllNG 25,125.25 974,874.75 0.00 974,874.756 PPF ADVANCE REFUNDING 973,131.25 26,868.75 0.00 26,868.75

TTAL 20,3%4$P.10 79A05,19.6 s,3n,mOs 71,280,519.90

ABDRE IOM W USIE: WlAWfMlIWAL AUV7IOAUFION SEBER Slc-SPECz4L coMmnYmEWD-UJVDED SZ4E8 DOLEARS FRF-FRENCK FRANCSDENJ-DFEUYCE MAR

Disbauwwu Handbook

Annex 11: Monthly Disbursement Summary 99

Explanation of Contents of Monthly Disbursnement Summary

1. LAnlCrediltht Fluid Account Loan reference number sigped by the Bank - a five digit number,followed by a two or three character abbraviation for the borrwing country.

2. Project Name: The name of the project as it appea on the loan agreement (sometimes abbreviated becaueof space coaints).

3. Origfinal LoanmCredi/Grant Amount Theo amout of ohe loan, in the currency of commitment, prior to anycanceions.

4. TotW Amount Caneed: Th aggregt vWalue of any amounts caceld.S. Net Loan Amount The original amount, less any cancelos.6. Undisbursed Balane as of [date]: The undisbursed balanc at the begining of the month.7. Appliatio: The sequential number assigned by the borrower to identify the application.S. Categor: Tbe citegory reference taken from Schedue I to tIe Loan Agreement, or for financial intermediary

loas, the subproject number assigned by Ibo Bank when the subpoject wa approved. Note tbat the formatused her may differ slightly from the format followed in the Loan Agrement: for example, Category l(a) maybe expressed as I-A.

9. W/A: The sequentia reference number (Withdrawal Authorization number) assigned by the Bank for eachpayment from the loan account

10. SIC: The Special Commitment number, if this payment is reted to a Special Commitment.11. Value Date: The value date on0 which this paymet was executed.12. Cu:rrezc The three-digit Iltemationl Standardizai Organization (IS0) currency code for the currency paid

to the beneficay, as requested in the borrower's application.13. Amount, The amount paid in the requested curency and charged to the specified category. Note that this

amount may differ from the amount requested if(i) the Bank has nrled some items ineligible for payment;(ii) a part of the amount requested has be applied to recovery of the Special Account advance

(wse Chapter 6); or(iii) the loan or category balance is insufficient to permit payment in the full amount requested.

14. Total Disbursd Duing [month]: Sum of amounats charged for al withdravals during the month.IS. Undisbursed Balance as of [date]: The undisbuased balance at the end of the month.16. Ptsent Category Balanes in [currency of commnitent]:

(a) Category: Same as item B above.(b) Description: Category description as it appears in Schedule I to the Loan Agreemt, or subproject

name. Note that this text may be abbreviated due to space constaints. Categories FUND, FUND-Aetc. refer to Special Accounts.

(c) Disbursd: The total amount disbursed in the currency of commitment through the end of the month.(d) Undisbursed: The undisbursed balance (net loan amount, less total disbursements).(e) SC Committed: The aggregate amount committed for future disburwsemts aganst Special

CDOnitment.(t Uncommitted: The portion of the undisbursed balance that is not committed to cover future

disbursements against Special Commitmenht.(g) Total: The total of amounts appearing in each of the four columns above.

Not: The sum of the SC Committed and Uncommitted columns is equal to the Undisbursed amount forthe catego or loan.

Disbunanem Handbook

100 Annex 12: Glossary of Disbursement Terms

Applicable Exdc e Rate An exchge rate established by te Bank for eadb currency for the valuation of allbtansacions of a particular value dae.

Application: Requet by fhe borer for withdrawal or commitment of loan proceeds accordance with theprovisions of . loan.

Appraisal Repot: Detailed evaluation and conmendations on a project by Banic staff prior to Bank approval ofa loan.

Dorrowew. The govemment or organization to which the Bank makes ' loan. If not government, the governmetis required to guantee the loan.

Category: A grouping of items to be financed in a projecL The categories are set out in Schedule 1 to the LoiAgreemen

Central Disbursement Account The acownt that opeates the Bank's Currency iooling System (defined below)

Closing date.- Date established in the Lon Agreement after which the Bank can terminate the ngbt of bornwerto mike withdrwals from the Loan Account and cancel the unwithdrawn balance of the loan.

Cufinandug: Project financed by the Bank and at least one other external source of funds.

Contrack An agreement between the borrower and a supplier to provide goods or services for an agreed fee.

Cost Currency (Cufrency of Disbursement): The cuncy used by the Bank to disburse from its resours againstthe Lon Acount.

Currency of Expenditur Tbe currency expended by a borrower for which payment or reimbursement is requestedunder a withdrawal procedure.

Curnmcy Noliong System: The accounting system that equalizes among alU bores at all time the risks ofexchage rat fluctuaons of the cunencies borrowed and repayable on IBRD loans. IDA Crediits are ntincluded in the system.

Development Credit IDA fiuds to be used to finance a project

Disbmnenunt Letter: Instructions sent to the borrower when a loan is signed, containng agreed procedures tDbe used to withdraw funds widtin each category and a request for authorized signature samples.

Effective Date: The date on which a Loan Agreement becomes binding on aU parties that have signed it, and onwhich wihdrawals from the Loan Account can begin.

Finacia initermediary: Institutions whose prncipal fnction is to prvide medium- and long-term finace forinvestment in productive enteprises.

Force Account Civil wors executed by a local government agency of the bofrower using its own labor force.

Genal Condiions: Terms and conditions generally applicable to Bank loans and incorpoted in LoanAgreements, and to any guarantee agreement of a Bank loan.

Joint Fnancing: Shared project financing in which funds ire independently disbursed from multiple surc inproportion to an agreed ratio. Disbursement can be in succession or pan passu.

Lete of Credit An underaking by a commercial bank that bills dawn on it in compliance with the terms of theLetter of Credit will be duly hoored.

JLAm Account: The account in the Bank's books to which the amount of the loan is credited.

Dibwseme Handbok

Annex 12: Glossary of Disbursement Terms 101

NeotaltBingDan Tihe commecial bunk, usualy i. the spliers couty, da imes advise, or cofirm. aetttr of Credit ad caims payit aainst the Bank's Special ComiutmIDL

Opening lak: The bank, umaly in the borrowes county, tbat opens a Letter of Crdit and acts for theborrower in dealing with ote bunks.

Iarai lIumcndg: Shared project financing in which selected goods or sevices ae financed separatey by theBnlk and each of the other financial source.

Project Prepar Facility: Advance commitment to a borrower by the Bank to provide financial and techicalasuistace to prepare a new project, prior to approval of tho final loan.

Re _entio Monies: Funds withheld from a supplier pending successfil compltion of a contrat. They ar noteligible for reimbursement by the Bank until released to the supplier.

Retzcdve Finang: Financing of eligible expenditures made prior to the date of the Loan Agreement

Revolving Fund: See Special AccounL

Scedule of Withdrawal of Proceeds: A Schedule in the Loan Agreement showing the allocation of the proceedsof the loan for financing the vanious components of the projeeL

Source Of Supply: A record of disbursements by loan identifying the type of goodk financed, purpose of the loa,and te supplying country.

Special Acount: Ihe bank account into which an advance disbursement is deposited, from which the project maymake payments to contractos, suppliers, and others to cover the Bank's sham of eligible expenses

Special Cocmuibtmet Irrevocable commitment by the Bank and/or cofiuancier, at the request of the borwer,undertaling to reimburse a commercial bank for payments it makes to a supplier agaist a Letr of Credit.

Specil Drawing Right: Basic equivalence currency used by the Intrational Monetary Fund as an accountingcurrency, and by IDA as the currency of commitment since 1980.

Statemnt of Expenditures: A specialized summary sheet sent by the borrower to the Bank, used when thesubmission of normal disbursement documentation is impractical.

Subprojects: Projects approved for withdrwal under financial intermediary and technical assistance loans.

Supporting Documents: Documents related to applications for withdrawal or for issance of Special Commitmentswhich provide evidence that expenditures are eligible for financing.

Tranhe: A portion of a loan (usually an adjustment loan) for which disbursements are conditioned on completionof specific actions. This term is also used to describe the final digit of loan numbers for loans which haewbeen subdivided based on different repayment obligations, and supplemental Prioect Preparation FacilityAdvances.

Value Date The calendar date on which a transaction takes place.

Disb:smen Handbook

- DUb

102 INDEX

aconued charges 4, 13 cofinancing 4, 8, 15, 16, 32, 37, 48addresses iv, 8, 37,51 'omfort letter 32,33adjustmnt loan 3, 28, 29, 36, 44, 46 commercial bait 4, 20-25, 31-34advance commitment

disbursement 30 charge 8, IS, 39, 40payment 17, 23, 43, 45 (also see special commitment)Project Prepation Facility 3-4, 6, 13, 36, 49 conltant iii. 2, 17, 19, 20, 23, 42, 46, 47Special Account 11, 21, 30-36 contract 11, 18, 22-24, 26-29, 33, 42-47

AER 38, 39 conrspondent bank 22amendment counterat (imds 32

letter of credit 25, 26 Credit Agreement 6, 40Loan agreement 7. 10, 40 c

applicable exchange rate 38 code and names 13, 53-56application of payment 22, 26, 44

for a special commitment 20, 24-26, 74-83 pool 14, 31, 38, 40for withdrawal 5, 19, 20-27. 30, 33-39, 58-73 customsforms 20, 21, 50 duties 16, 17frequency 30 statements 28, 29minimum value 8, 21, 50number 37 date of payment 37reduction and return 17, 21 definition

appraisal 2, 48 of expenditues 19audit 2, 8, 29, 30, 36, 48, 50, 51 of special account 30auditors 11, 23, 27, 29, 48 Development Credit Agreement 6, 40authorized direct payment 21, 22, 6869

allocation 30, 32, 33, 36 disbursementrepresentative 11, 21 condition 8, 9, 11, 51signatures 11, 12, 50 Division iv, 12

letter iii, 8, 12, 16, 20-22, 27, 28, 30, 33, 34,bank 50-51

cental 31, 38 officer 8, 20, 51charges 23, 24, 39 percentage 6, 7, 10, 16, 17guarantee 23, 45, 46 supporting documents 21-24statements 26, 31, 33,34 discontinue SOE use 29

board approval 8 documentation (see supporting documets)

cancellation 5, 14-16 effectiveness 3, 5, 8, 9, 13, 20, 51categoy 6, 7, 9-12, 17, 20-22, 37, 38, 49, 51 eligibility 16, 17, 20, 21, 27, 28central bank 31, 38 escalation (see price adjustment)c-arges evidence of payment 22, 23, 27, 29

commitment 8. 15, 39, 40 evidence of shipment 23special account 31, 34 ex-fctory 19, 49letter of credit 25 exchange rate 25, 34, 37-39, 41, 44

civil works v, 7, 27, 32, 44, 45, 49, 50 expiry date of letter of credit 24-26closing

date 7, 9, 15, !7, 25, 26 financial intermediary 7, 27, 44special accounts 36 force account 27. 43, 50

codes 13, 53-56 fireignexchange 1, 17, 18, 31

Disbwzwnet Handbook

ME 103

foreign expenditurs 19, 49Form 1903 20, 21, 27, 33, 34, S8 member countries 1, 5, 6, 13-17, 22, 44, 53-56Form 1931 20, 24, 74 ninimum application iz 8, 21, 34, 50form (se appliaion) monhyfreight 17. 18. 23 bank steamts 31, 33fiequency of replenLihment 30 disbursement summary 37-38, 51, 98-99

GeneA Conditions 5, 7. 8, 10, 11, 14, 38, 52 negDotations 2, 8, 27, 30, 31, 37guaantee agreement 5, 6, 38, 52 no objection notice 26, 42guator 19 numbering of applications 21Guidelines

for consultants iii, 17. 47 para financing 15for procuemnt iii, 15, 17. 28, 42, 43, 47, paymet

48 advice 13, 37, 38, 51instructions 16, 22, 26

hybrid los 3 ten in contas 45pfo mance security 23, 45, 46

IBRD iii, l PPF 3, 13, 36]DA iii, I pm-shipment inspection 28inactive special acoDunt 33 price adjustment 23, 43, 45, 47ineligible items 16-18, 33 prior review 26, 28, 42insrce 17, 18, 23, 26, 43 prcurement 42-48interest project accounts 6, 36, 48

capitalization of 13 project implemtation 8, 31, 33on letter of cedit 25 Pject ire n Facility 3, 6, 13, 36, 49on lon 5, 39, 41 purchase order 22, 23, 24, 27on special acoount 31, 34

International Bank for Reonand Development iv, 1 reallocation 6, 7, 10, 26

Intrational Development Association iv, 1 recnciliatio of speci account 32, 34, 35, 93-95investmet loans 29 reducedinvoices 23, 24, 29,47 dimnent prcentae 6, 10

payment 12, 21, 36joint financing 15 reinaning (see PPF)

refimd 14, 33, 38letter of credit 6, 20, 24-26, 31, 34 reimbursement 24, 27, 32, 70-73limit repayment iv, 5, 13, 37, 39, 40

authorized allocation 30, 32, 33, 36 repleisment 21, 26, 30, 32-36,50minimum application size 8, 21, 34, 50 request for payment (SC) 24, 824-3prior review 26, 28, 42 resident mission iii, 20SOE 27-28, 51 retention 9, 45, 46

limitation (SC) 25 retoactive financing 8, 20, 51kba

Agreemet iv, 5-10Departme 2, 8, 12, 19, 20, 32, 33, 35, Schedule 1 iv, 2, 7, 9, 10, 13, 16, 18-20, 49, 51

37, 39, 51 SDR 31, 37, 38, 39repayment iv, 37, 39 sevice charges 34,40signing 8, 12, 20 SOE

local expenditues 19, 49 audit 29, 48location fims 22, 27, 28, 84-91

of special account 31 limits 23, 27-29, 50of SOE documents 27-29 requirements 8, 22, 23, 27-30, 34, 50

DibausemeHn dok

104 NMDEX

~~~~~~~~~e~~~~~~~~ -t

spoci accountaccess and control 33audit 36, 48 %autdized allocation 30, 32, 33. 36closing of 36comfort letler 32, 33, 92curracy 31inactive 33location 31reconciliation 32, 34, 35, 93-95recovery 35replenishment 21,26,30, 32,36,50requirements 8, 30-36

special commitment 5, 6, 20, 21, 24-26amendmetapplication 20, 24, 74-83leter of credit coveted by 24-26limitation 2S-26, 78-79

special deposit account 30, 31, 33specimen ignatu 20, 52staemenf of expenditure (see SOE)subloan 27. 49, 51subproject 22, 27, 44sumary sheet 13, 16, 20, 22, 23, 34spervision 3, 10, 11, 27, 47supporting docments 11, 22, 23, 26-29, 30, 33-34suspension 5, 6, 14, 16, 24, 29, 35, 48SWIFT 16, 22, 24

task manager 23, 26, 42, 48txes 16, 17, 19must fund 5, 6, 14, 16, 37

unallocated 7, 10, 49undisbursed balance 35, 37, 39, 40

valuation of currencies 5, 38value date 37, 96-99

withdawal application (see application)withdrawal authoriation 14, 37, 96-99

Dibmwene Ha8ook

The World Bank

HeadquarUs'818 H Street, N.W.Washington, DC. 20433, U.S.A.

Telephone: (202) 477-1234Facsimile: (202) 477-6391Telex: RCA 248423 WORLDBK

WUI 64145 WORLDBANK

Cable address: INTBAFRADWASHNGTON DC

European Offrce66, avenue d'Ilna75116 Paris, France

Telephone: (1) 40.69.3D.00Facsimile: (1) 40.69.30.66Telex: 640651

Tokyo OfficeKokusai Building1-1, Marunouchi 3-chomeChiyoda-ku, Tokyo 100, Japan

Telephone: (3) 3214-5001Facsimile: (3) 3214-3657Telex: 26838

ISBN 048213-2239-7