The World Bank 1818 H Street N.W. (202) 473-1000INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT Washington, D.C. 20433 Cable Address: INTBAFRADINTERNATIONAL DEVELOPMENT ASSOCIATION U.S.A. Cable Address: INDEVAS

OFFICIAL March 1, 2017Honorable Snyder RiniMinister of Finance and Treasury DOCU MENTSMinistry of Finance and TreasuryP.O. Box 26Honiara, Solomon Islands.

Excellency,

Re: Solomon Islands Electricity Access Expansion Project - GPOBA Grant

(Grant No. TF0A2923)

Additional Instructions: DisbursementFirst Restatement of the Disbursement Letter

I refer to the Letter Agreement ("Agreement") between Solomon Islands ("Recipient"), and the

International Development Association (IDA) ("World Bank"), acting as administrator of grant funds

provided by the Global Partnership on Output-based Aid Trust Fund, dated 15 August 2016. The Agreement

provides that the World Bank may issue additional instructions regarding the withdrawal of the proceeds

of Grant TF0A2923 ("Grant"). This letter ("Disbursement Letter"), as revised from time to time, constitutes

the additional instructions.

This Disbursement letter is the first restatement of Disbursement letter dated August 15, 2016 for

the above referenced project to restate attachment 5 of the Disbursement letter. All other provisions of the

original Disbursement Letter, as restated, shall remain in force and effect.

The attached World Bank Disbursement Guidelines for Projects, dated May 1, 2006,

("Disbursement Guidelines") (Attachment 1), are an integral part of the Disbursement Letter. The manner

in which the provisions in the Disbursement Guidelines apply to the Grant is specified below. Sections and

subsections in parentheses below refer to the relevant sections and subsections in the Disbursement

Guidelines and, unless otherwise defined in this letter, the capitalized terms used have the meanings

ascribed to them in the Disbursement Guidelines.

I. Disbursement Arrangements

(i) Disbursement Methods (section 2). The following Disbursement Methods may be used under theGrant:

* Reimbursement

* Direct Payment

(ii) Disbursement Deadline Date (subsection 3.7). The Disbursement Deadline Date is 4 months afterthe Closing Date specified in the Grant Agreement. Any changes to this date will be notified by the WorldBank.

(iii) Disbursement Conditions (subsection 3.8). Please refer to the Withdrawal Condition(s) in Section

3.02 of the Grant Agreement.

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II. Withdrawal of Grant Proceeds

(i) Authorized Signatures (subsection 3.1).

A letter in the Form attached (Attachment 2) should be furnished to the World Bank at the address indicatedbelow providing the name(s) and specimen signature(s) of the official(s) authorized to submit Applications:

The World BankLevel 19, 14 Martin PlaceCML BuildingSydney NSW 2000, Australia

Attention: [Country Director's Name] or [Authorized Signatory of Grant Agreement]

(ii) Applications (subsections 3.2- 3.3). Please provide completed applications for withdrawal, together

with supporting documents, through the World Bank's Client Connection, web-based portal, following the

instructions for electronic delivery. In the case the recipient does not have internet access, the World Bank

may permit the delivery of applications for withdrawal, together with supporting documents, in accordance

with subsection 3.3, to the following address:

The World Bank,2 6th Floor, One Global Place

5th Avenue Corner, 2 5th Street, Bonifacio Global CityTaguig City, Philippines

Attention: Loan Department,

(iii) Electronic Delivery (subsection 3.4) The World Bank may permit the Recipient to electronically

deliver to the Association Applications (with supporting documents) through the Association's Client

Connection, web-based portal. The option to deliver Applications to the World Bank by electronic means

may be effected if: (a) the Recipient has designated in writing, pursuant to the terms of subparagraph (i) of

this Section, its officials who are authorized to sign and deliver Applications and to receive secure

identification credentials ("SIDC") from the World Bank for the purpose of delivering such Applications

by electronic means; and (b) all such officials designated by the Recipient have registered as users of Client

Connection. If the World Bank agrees, the World Bank will provide the Recipient with SIDC for the

designated officials. Following which, the designated officials may deliver Applications electronically by

completing Form 2380, which is accessible through Client Connection

(https://clientconnection.worldbank.org). The Recipient may continue to exercise the option of preparing

and delivering Applications in paper form. The World Bank reserves the right and may, in its sole

discretion, temporarily or permanently disallow the electronic delivery of Applications by the Recipient.

(iv) Terms and Conditions of Use of SIDC to Process Applications. By designating officials to accept

SIDC and by choosing to deliver the Applications electronically, the Recipient confirms through the

authorized signatory letter its agreement to: (a) abide by the Terms and Conditions of Use of Secure

Identification Credentials in connection with Use of Electronic Means to Process Applications and

Supporting Documentation ("Terms and Conditions of Use of SIDC") provided in Attachment [3]; and (b)

to deliver the Terms and Conditions of Use of SIDC to each such official and to cause such official to abide

by those terms and conditions.

(v) Minimum Value of Applications (subsection 3.5). The Minimum Value of Applications for

Reimbursements and Direct Payments is USD 50,000

III. Reporting on Use of Grant Proceeds

(i) Supporting Documentation (section 4). Supporting documentation should be provided with eachapplication for withdrawal as set out below:

* For requests for Reimbursement - under Category 1

o Statement of Expenditure in the form attached for claims under Category 1(Attachment 5).

o Output based verification report provided by Independent verification agent.

* For requests for Reimbursement - under Category 2

o Statement of Expenditure in the form attached for claims under Category 2(Attachment 4)

* For requests for Direct Payment: records evidencing eligible expenditures, e.g., copies ofreceipts, supplier invoices

IV. Other Disbursement Instructions:

(i) Disbursements under category I would be based on Reimbursement method of Disbursement

only.

(ii) OBA: Disbursements for Output based Aid (OBA) subsidy would be based on the rates as per

the below tableDetails OBA Subsidy Unit of Payment

For Connections in Honiara USD 794 Per electricity connection,Grid area including house hold wiring.

For Connections in USD 994 Per electricity connection,Outstations including house hold wiring.

V. Other Important Information

For additional information on disbursement arrangements, please refer to the Disbursement

Handbook available on the World Bank's public website at https://www.worldbank.org and its secure

website "Client Connection" at https://clientconnection.worldbank.org. Print copies are available upon

request.

From the Client Connection website, you will be able to download Applications, monitor the near

real-time status of the Grant, and retrieve related policy, financial, and procurement information.

If you have not already done so, the World Bank recommends that you register as a user of the

Client Connection website (https://clientconnection.worldbank.org). From this website you will be able to

download Applications, monitor the near real-time status of the Grant, and retrieve related policy, financial,

and procurement information. All Recipient officials authorized to sign and deliver Applications byelectronic means are required to register with Client Connection before electronic delivery can be affected.

For more information about the website and registration arrangements, please contact the World Bank byemail at <clientconnection@worldbank.org>.

If you have any queries in relation to the above, please contact WFALD-TF by sending an emailto WFALD-tfAworldbank.or and using the trust fund number as a reference.

Very truly yours,INTERNATIONAL DEVELOPMENT ASSOCIATION

ByVidya N asimhan

Finance Officer

Attachments

1. World Bank Disbursement Guidelines for Projects, dated May 1, 20062. Form for Authorized Signatures3. Terms and Conditions of Use of Secure Identification Credentials in connection with Use of

Electronic Means to Process Applications and Supporting Documentation, dated March 1, 20134. Form of Statement of Expenditures5. Form of Statement of Expenditures for Subsidy claims under Category 1

Attachment 1

THE WORLD BANK

DISBUR.SEMENTGUIDELIN ESFOR PROJECTS

MAY 2006

WORLD BANK

DISBURSEMENT GUIDELINESFOR PROJECTS

LOAN DEPARTMENTMay 1, 2006

7

CONTENTS

Plage

1. P u rpose ............. - ................................. . 5

2. Disbursement Methods .......--................ .. ...... 6

3. WVithdrawal of Loan Proceeds....................................... 6

-1. Supporting Documnutation Requirements..................... 9

5. Designated Accounts... ....-..................... 10

6. Terns and Conditions Applicable to Advances .............. 12

7. Ineligible Expenditures .... ..... -.. ........................... 14

8. R efiunds ................- .... ..... ....................................... 15

3 l

4

World BankDisbursement Guidelines

for ProjectsMay 1, 2006

1. Purpose

1.1 The purlose of these Guidelines is to set out the Bank's

procdures for disbursement of loan proceeds for projects.Specifically, the Guidelines explain (a) the different methods

used by the Bank to disburse loan proceeds. (b) the require-

ments for withbdrawal from the Loan Account. (c) the types

of supporting documentation lthat the borrower may be re-

quired to provide to demonstrate the use of loan proceeds

for (igible expendit ures. d) the criteria for establishing des-

ignated accolunts. (e) the termns and conditions applicable to

advances. (f) thl types of actions that the Bank may take

if it determines tlhat loaun proceeds are not needed or have

been used for ineligible purposes. and (g) the consequience of

reuds.

Han k' tncludes IR ) and IDA. koan- inicludt credil aid grant: "brower- includes the borrower of an IfliD loan, IDA credit. or Project Prepa-ratioi acility advance and the recipient of a grant: and "Loan Agr<xet"

incelides the agreerent with the Pank providirig for a credit, grant. or ad-

vance. 1 hese 1 )isbursemnent Guidelines apply to all loan creiits. aivarcet

under the Project Preparati on iaciht, and grants finranced under the In-

stiitiutonal levelopment lund and Glb al VnIronmeVt f acilty unless oth-

erwise provided in Operationa.l Poliny 10,20. Ciod 1Cn6rAaIt 1anlu

<pt runon forthcorming i hese Guidelines alo apply to other recipienit-

exevited graIts fmaned frOm1 trust funds n s. exceptionally. the termns

of the agreement with the donor make provision for different rciuirenents.

l hty d rnot apply to Devel Policy honais.

5 |

2. Disbursement Methods

2.1 The Bank establishes disbursement arrangements for an op-

eration in consultation with the borrower and taking into

consideration. mle r ala. an assessient of the borrower's

fiancial minaagenent and procurement arrangements, the

procireTnent plan and cash flow needs of the operation, and

its disburserment experience with the borrower.

2.2 The Bank disburses proceeds from the Loan Account est ab-

lished for each loan. to or on the order of the borrower, using

one or rnore of t he disbursenent met hods set forth below. as

deteriined by the Bank.

(a) Reirnbursement: The Bank may reimburse the bor-

rower for expenditures eligible for financing pursuant to

the Loan Agreemnnt ("eligible expenditures") that the

borrower has prefmanced from its own resouirces.

(b) A dvance: The Bank may advance loan provceds into

a designated accouit of the borrower to finance eligible

expenditures as they are incurred and for which sup-

porting documents will be provided at a later date (see

section 7), "sintdAceounts").

(c) Direct Payment: The Bank may make payments, at

the xrrower*s request. direetly to a third party (e.g.supplier. contraetor. consultant) for eligible expendi-

I ures.

(d) Special Conitmeint: The Bank may pay amiounts

to a third party for eligible expenditures inder special

commitnents entered into. in writing. at the horrower's

request and on term-s and cnditions agreed hetween the

Bank and the borrower.

3. Withdrawal of Loan Proceeds

3.1 Authorized Signatures. Before loan proceeds may be

withidrawi or corimitted fron the Lan Accoitit. the au-

1 6

thorized representative of the borrower (as designated in theLoan Agreement) rmust furnish to the Bank (a) the name(s)of the official(s) authorized to sign applications for with-drawal and applications for a special cominitieitt (colc-Sively. -'Applications"),and (b) the athenticated specimen

signature(s) of the official{s). The borrower mus t indicateclearly if more thai one signature is required on Applica-tions and miLst notify the Bank promptly of any changes in

signature authority.

3.2 Applications. Applications imist be provided to the Bank

in such form and incilde such infonnation as the Bank may

reasonabli request. Application forins are available online

from the Client Connection Web site at http. c1 lit n<connC-

twn. uorldbank. org or from the Bank upon request.

3.3 For withdrawal from the Loan Account for advances. the

borrower should provide an original signed application for

withdrawal. For withdrawal from the Loan Account for re-

imburseients and direct paymients and for reporting on the

use of advances. the borrower should provide an original

signed application for withdrawal togetlier with one copy

of supporting documents (see section 4. "Supporting Docu-

mnentation Feuirements"). For a special commitment froi

the Loan Account t lie borrower should provide an original

signed application for a special commitment together with

one copy of the letter of credit. The Bank reserves the right

not to accept or review duplicate copies of Applications and

supporting docurnents and may at its discretion return or

destrov the duplicates.

3.4 Electronic Delivery. The Bank may authorize the bor-

rower to use electronic mineans. in a manner and on terms

and condit ions specified by the Bank. to deliver Applications

and supporting docunentation to the Bank. Applications

and supporting docunentation delivered in accordance with

this slbsectiol will bc dei-eed to have been provided to the

Bank for the pirposes of satisfying the requirements of sub-

sections 3.2 and 3.3 of these Guidelines

7

3.5 Mfinimum Value of .4 pplications. The Bank est ablishesa minimum valie for Applications for reinibursemient, direct

payIent, and special commitient. The Bank reserves the

right not to accept Applications that are below sueh inini-

mum value.

3.6 Loan Disbursing Period. The Bank processes Appli-

cations onI after thbe Loan Agreement has been declared

effective in accordance with the terms of the Loan Agree-

ment. The expenditures for which the Applications are

iade must be:

(a) paid for (i) on or after the date of the Loan Agreernent.

or (ii) in the case of operations t hat permit retroactive

financing. on or after the carlier date specified in the

Loan Agreenmient for that purpose; and

(b) incurred on or before the closing datt sperifed or re-

ferred to in the Loan Agrenement (-Closing Date"), ex-

cept as otherwise specifically agreed with the Bank.

3.7 The loan disbursing period ends on the flnal date established

by thie Bank for reeipt by t he Bank of applications for with-

drawal and supporting doeumentiation (the Disbursemet

Deadline Date~). The Disbursement Deadline Date may beihe same as the Closing Date. or up to four months after the

Closing Date. Normally, to support orderly project, comple-

tion and closure of the Loan Accoint . the Bank does not ae-

cept applications for withdrawal or supporting documentation

received after the Disbursement Deadline Date. The borrower

should proniptly inform i ie Bank of any expected inplemen-

t ation delays or except ional aiminist rat ive issues before t hese

(lates. The Bank notifies the borrower of anv exception that

the Bank may make to the Disbursement Deadline Date.

3.8 Disbursement Conditions. If the Loan Agreenent con-

tains a disburserment condition for a specifne expenditure cat-

egorv. the Bank will disburse loan proceeds for that category

onilv after the disburseenivt condition h1 as been fulfilled and

Ihe Bank has notifiwd the borrower to this effect.

1 8

4. Supporting Documentation Requirements

4.1 The borrower provides supporting documnentiation to the

Bank to show that loan proceeds have been or are being

used to fimance eligible expenditures.

4.2 For special oinnitmniits, the conuercial bank provides its

confirnation directly to the Bank that conditions for release

of pavments committed for withdrawal have been met.

4.3 Types of Supporting Docurnentation. The Bank re-

quires either copies of thie original (locurents evidencing

eligible expeiiditiires (-,Rsecords") or summary reports of ex-

pienditure ("Siimmary Reports~) in such form and substaice

as the Bank may speci fy. Pecords include such documentsas invoiccs and receipts. A Summary Report may be either

(a) the interim un-audited fmiancial report required under

the Loan Agree ient ("Interirn Financial Report") or (b)

a staterment of expenditure simarizing eligible expendi-

tures paid during a statedl period ("Statement of Expendi-

ture'1. In all cases, the borrower is responsible for retaining

the original documents evidencing eligible expenditiures and

making them available for audit or insxction.

4.4 Tlie Bank deterinies thie types of supporting documentation

that the borrower should provide. taking itto consideration

the disburseient method used The supporting documenta-

tion may be the following:

(a) For applications for reimbursement: (i) Interint

Financial Reports. (ii) Stattients of Expenditure, (iii)

Records., or (iv) Records required by the Bank for spe-

cific expenditures and Statemenits of Expenditure for all

other expenditures:

(b) For reporting on the use of advances: (i) Interim

Financial Reports. (ii) Stateiments of Expenditure, (iii)

Records. or (iv) Records required by the Bank for spe-

cific expenditures and Statenents of Expenditure for all

other expenditures;

9!

(c) For applications for direct paynents: Records;

and

(d) Any oher suppor1ing docuinentation that the Bank

may request by notice to the borrower.

4.5 Failure to Provide Audited Financial Statements. Ifthe borrower fails to provide aiv of the audited Financial

Statements required in accordance with, and within the pe-

riod of time specified in. the Loan Agreement. the Bank may

at its discrelton decide not to accept applications for with-

drawal supported by Smnmary Beport s. even if such report s

are accompanied by Records.

5. Designated Accounts

5.1 The borrower may open one or nore designated accounts

into wieh tlie Bank may. at the borrower's request, de-

posit anounts witlidrawi from tlie Loan Account for the

purpose of paying for eligible expenditures as they are in-

curred ")esignated Account"). Before the Bank authorizes

establishmnent of a Designated Account. the borrower must

have adequate administrative capability, internal controls.

and accounting and aditding proecdures to ensure effective

use of the Designated Account.

5.2 The Bank may decide not to perinit the use of Designated

Accounts in new projeets if the borrower has failed to Te-

find uidocuented advances in the Designated Account of

any other loan io. or guaranteed by. the borrower within

liwo monthbs afier the lisbursement Deadline Date for such

loan.

5.3 Type of Designated Account. A Designated Account may

be est ablished in one of thbe two ways set out helow, as ap-

propriate for the operation concerned. as determined and

notified by the Bank.

110

(a) Segregated Account: this is an accoint of the borrowerinto which only proceeds of the loan may be deposited;

or

(b) Pooled Account: tIiis is an account of the borrower

into which the loan proceeds and proceeds of other fi-nancing for the operation (eg.. borrower resources and/

or fmancing by other development partners) may be de-

posited.

5.4 Currency of the Desiginted Account. Designated Ac-counts rmst be in a currency acceptable to the Bank. Incountries that have a freeIy convertible currency. Designated

Accounts may be held in the currency of the borrower or

any freely convertible curreny. Tlie Bank may also agrec

to local curreny Designated Accounits when. int, r aba. the

country s currency (even if not freely convertible) is stable

ard tei expenditures to be financed are primiarilv in lo-cal currency. Te borrower bears all risks associated witi

foreign exehange fluctuations between (a) tlie urrency of

denonination of the loan and that of the borrower's Desig-

nated Account, and (b) the currency of denomiination of the

borrower's Designated Account and tlie currency or curren-

cies of project expendit ures.

5.5 Financial Institution. Designated Accounts inust be

opented and iiiaintained in a financial institution accept-able to the Bank on terns and conditions acceptable to the

Bank. 'To be accept able to fie Bank. the financial institution

proposed by the borrower siould generally neet all the fol-

lowing requirements:

(a) be financially sound:

(b) be autlhorized to maintaini the )esigntated Account in

the currency agreed between the Bank and lie bor-

rower;

(c) be audited regularlv. and receive satisfactory audit re-

ports:

11 |

1%~m l~' gen ~*

(d) be able to excute a large number of tranisactions

I)romptly:

(e) be able to perform a wide range of banking services sat-

isfactorilv:

(f) be able to provide a detailed statement of the Desig-

(g) be part of a satisfactory correspondent hanking niet work;

anld

(h) eharge reasonable fees for its services.

5.6 The Bank reserves the right not to accept a financial insti-

tution for the opening and/or maintenance of a Designated

Account if such instituton has asserted or asserts a claim

to set off. seize, or att ach the proceeds of any Bank loan on

deposit iii a Designated Account mintained by it.

6. Terms and Conditions Applicable to Advances

6.1 Ceiling. The Bank notifies the borrower of the maxirnum

aniolt of loan proceeds that may be on deposit in a Desig-

nated Account (the -Ceiling"). The Bank, at its discretion.

may establish the Ceiling as cither (a) a fixed amount. or (b)

an anount that is adjusted from time to time (iring project

implementation based on periodic forecasts of project cash

flow needxs.

6.2 Applications for Advances. The borrower may apply for

anl ldvaice in an amount up to the Ceiling less the aggre-

gate aiount of those advances previously received by the

borrower for which the borrower has not yet provided sup-

porting document ation. Normally, to support orderly closure

of the Loan Account. the Bank does not advance loani pro-

ceeds into the Designated Account after the Closing Date.

6.3 ftequency of Reporting Eligible Expenditures Paid

from the Designated Account. The borrower reports on

the lse of loan proceds advanced to the Designated Account

12

at intervals specified by the Bank by notice to the borrower

(-Reporting Period"). The borrower should ensire that all

amounts deposited in the Designated Account are accountedfor anid their ise reported prior to the I)isbursement Dead-line Date. After this date. the borrower must refund to theBank any advances still unaccounted for or remaining in the

D3esignated Account.

6.4 Withholding Advances. The Bank is not required to makeany deposit into the Designated Account if:

(a) The Bank determines that. payinent of the deposit wouldresult in exceeding the Ceiling (see subsection 6.2. 'Ap-plications for Advances"):

(b) The Bank is not satisfied that the borrower's planned

project expenditures justify the deposit. The Bank may.

by notice to the borrower. adjust the amolint it depositsor witlhhold furtlher deposits into the Designated Ac-

count utntil it is satisfied that the financial needs of the

project warrant furtlher deposits:

(c) The borrower fails to take the action required pursuaiitto the deterininations made by the Bank under subsec-

tions 7.1 and 7.2 of these Guidelines:

(d) The borrower fails to provide anv of the audited Finan-

cial Statements required in accordance with. and withinthe period of time specifed in, the Loan Agreement:

(e) The Bank deterinies that all further withdrawals of

loan proceeds should be iade by the borrower diretflyfroin the Loan Aecount: or

(f) The Bank has notified the borrower of its intention to

suspend in whole or in part the borrower's right to makewithdrawals from iie Loan Account.

6.5 Excess Advances. If at any time the Bank deteriines thatany amiolint deposited in the Designated Account will not be

required to cover furtlher payments for eligible expeiiditures("Excess Aimount-), it may. at its discretion. require theborrower to take, one of the t,wo actions listed below. Upon

13 l

notification by the Bank. the borrowcr must proinptly take

the action requested:

(a) Provide evidence satisfactory to the Bank within a pc-riod specified by thie Bank that the Excess Amount will

be used to pav for eligible expenditures. If the evidenceis not furnished withiii the time period specifixd. the

borrower nust promptly refind the Excess Anionit to

the Bank: or

(b) Refund the Excess Anount promiptly.

7. Ineligible Expenditures

7.1 Ineligible Expenditures Generally. If the Bank deter-

mines that any amount of the loan was used to pav for an

expenditure that is not eligible )lrsiant to the Loai Agrec-

ment (-ineligible expenditulre"). the Bank may. at its dis-eretion. require tie borrower to take one of the two actionslisted below. Upon notification by the Bank. the borrower

must promptly take the action requested:

(a) Refund an equivalent amount to the Bank: or

(b) Exceptionally. provide substitute documentation evi-

deneing other eligible expenditures.

7.2 Ineligible Expenditures Paid fron the DesignatedAccount. If the Bank deterinies that any payment out of

the Designated Account was not justified by the evidence

furnished to the Bank or was made for an ineligible expn-diture. the Bank nia. at its diseretion, require the borrower

to take one of the actions listed below. Upon notification

by the Bank. the borrower miust promptly take the action

req uest ed:

(a) Provide the additional evidence requested by the Bank:

(b) Dexsit an equivalent amount into the De,signated Ac-colt:

114

(c) Refund an equivalent arimunt to the Bank: or

(d) Exceptionally. provide substitute <locurentation evi-dencing otlher eligible expenditures.

8. Refunds

8.1 Borrower Decision to Refund. The borrower may. upon

notice to the Bank. refund all or auy amount of the loan on

depsit in the Designated Account to the Bank for eredit tothe Loan Account.

8.2 Consequence of Refunds. The Bank shall deterninewhether refiiiids made to the Bank in accordance witli sec-

tions 6 and 7 and subsection 8.1 of these D)isbirseient

Cuidelines will 1e credited to the Loan Account for subse-quent withdrawal or for cancellation. Borrowers should be

aware that refunds of loan proceeds may resuli in swap ter-inination fees andl/or unwinding costs for aniounts for whieh

the interest rate basis or currency has been converted or

hedgexl

8.3 Other Obligations Unaffeeted by Refunds. Refunds of

anounts of the loan do not affevt any remedies of tihe Bank

under the Loan Agreement.

15 |

THE WORLD BANK

The Loan DepartmentWorld Rank1818 H Street, NWWashington, DC 20433Email: wbdisbursement worldbank.org

Attachment [2]

[Letterhead][Street address]

[City] [Country][DATE]

The World BankLevel 19, 14 Martin PlaceCML BuildingSydney NSW 2000, Australia

Attention: [Country Director]

Dear [Country Director]:

Re: Solomon Islands Electricity Access Expansion Project - GPOBA Grant(Grant No. TF0A2923)

I refer to the Letter Agreement ("Agreement") between Solomon Islands ("Recipient"), and theInternational Development Association (IDA) ("World Bank"), acting as administrator of grant fundsprovided by the Global Partnership on Output-based Aid Trust Fund, dated XXXXX. For the purposes of

Section 3.04 (b) of the Standard Conditions, as defined in the Agreement, any ['one] of the persons whoseauthenticated specimen signatures appear below is authorized on behalf of the Recipient to sign applications

for withdrawal under this Grant.

For the purpose of delivering Applications to the World Bank, '[each] of the persons whose

authenticated specimen signatures appears below is authorized on behalf of the Recipient, acting

'[individually] [jointly], to deliver Applications, and evidence in support thereof on the terms and

conditions specified by the World Bank.

'[This confirms that the Recipient is authorizing such persons to accept Secure Identification

Credentials (SIDC) and to deliver the Applications and supporting documents to the World Bank by

electronic means. In full recognition that the World Bank shall rely upon such representations and

warranties, including without limitation, the representations and warranties contained in the Terms and

Conditions of Use of Secure Identification Credentials in connection with Use of Electronic Means to

Process Applications and Supporting Documentation ("Terms and Conditions of Use of SIDC"), the

' Instruction to the Recipient when sending this letter to the World Bank: Stipulate if more than one person needs to signApplications, and how many or which positions, and if any thresholds apply. Please delete this footnote in final letter that is sentto the World Bank.

2 Instruction to the Recipient: Stipulate if more than one person needs to jointly sign Applications, if so, please indicate theactual number. Please delete this footnote in final letter that is sent to the World Bank.

3 Instruction to the Recipient: Use this bracket if any one of the authorized persons may sign; if this is not applicable, pleasedelete. Please delete this footnote in final letter that is sent to the World Bank.

4 Instruction to the Recipient: Use this bracket only if several individuals must jointly sign each Application; if this is notapplicable, please delete. Please delete this footnote in final letter that is sent to the World Bank.

s Instruction to the Recipient: Add this paragraph if the Recipient wishes to authorize the listed persons to accept Tokens andto deliver Applications by electronic means; if this is not applicable, please delete the paragraph. Please delete this footnote infinal letter that is sent to the World Bank.

Recipient represents and warrants to the World Bank that it will cause such persons to abide by those termsand conditions.]

This Authorization replaces and supersedes any Authorization currently in the World Bank recordswith respect to this Agreement.

[Name], [position] Specimen Signature:

[Name], [position] Specimen Signature:

[Name], [position] Specimen Signature:

Yours truly,

/ signed/

[Position]

Attachment [3]

Terms and Conditions of Use of Secure Identification Credentials

in connection with Use of Electronic Means

to Process Applications

and Supporting Documentation

March 1, 2013

The World Bank (Bank)6 will provide secure identification credentials (SIDC) to permit the Borrower' to deliver

applications for withdrawal and applications for special commitments under the Agreement(s) and supporting

documentation (such applications and supporting documentation together referred to in these Terms and Conditions of Use

as Applications) to the Bank electronically, on the terms and conditions of use specified herein.

SIDC can be either: (a) hardware-based (Physical Token), or (b) software-based (Soft Token). The Bank reserves the right

to determine which type of SIDC is most appropriate.

A. Identification of Users.

I. The Borrower will be required to identify in a completed Authorized Signatory Letter (ASL) duly delivered to andreceived by the Bank each person who will be authorized to deliver Applications. The Bank will provide SIDC toeach person identified in the ASL (Signatory), as provided below. The Borrower shall also immediately notify theBank if a Signatory is no longer authorized by the Borrower to act as a Signatory.

2. Each Signatory must register as a user on the Bank's Client Connection (CC) website(https://clientconnection.worldbank.org) prior to receipt of his/her SIDC. Registration on CC will require that theSignatory establish a CC password (CC Password). The Signatory shall not reveal his/her CC Password to anyoneor store or record the CC Password in written or other form. Upon registration as a CC user, the Signatory will beassigned a unique identifying account name.

B. Initialization of SIDC.

1. Prior to initialization of SIDC by a Signatory, the Signatory will acknowledge having read, understood and agreedto be bound by these Terms and Conditions of Use.

2. Where a Physical Token is to be used, promptly upon receipt of the Physical Token, the Signatory will access CCusing his/her account name and CC Password and register his/her Physical Token and set a personal identificationnumber (PIN) to be used in connection with the use of his/her Physical Token, after which the Physical Token willbe initialized for use by the Signatory exclusively for purposes of delivering Applications. Where a Soft Token isto be used, the Signatory will access CC using his/her account name and CC Password and set a personalidentification number (PIN) to be used in connection with the use of his/her Soft Token, after which the Soft Tokenwill be initialized for use by the Signatory exclusively for purposes of delivering Applications. Upon initialization

6 "Bank" includes IBRD and IDA.7 "Borrower" includes the borrower of an IBRD loan, IDA credit, or Project Preparation Facility advance and the recipient of a grant.

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of the SIDC, the Signatory will be a "SIDC User". The Bank will maintain in its database a user account (Account)for each SIDC User for purposes of managing the SIDC of the SIDC User. Neither the Borrower nor the SIDCUser will have any access to the Account.

3. Prior to first use of the SIDC by the SIDC User, the Borrower shall ensure that the SIDC User has received trainingmaterials provided by the Bank in use of the SIDC.

3. Use of SIDC.

Use of the SIDC is strictly limited to use in the delivery of Applications by the SIDC User in the manner prescribedby the Bank in the Agreement(s) and these Terms and Conditions. Any other use of the SIDC is prohibited.

The Bank assumes no responsibility or liability whatsoever for any misuse of the SIDC by the SIDC User, otherrepresentatives of the Borrower, or third parties.

The Borrower undertakes to ensure, and represents and warrants to the Bank (such representation and warrantybeing expressly relied upon by the Bank in granting SIDC) that each SIDC User understands and will abide by,these Terms and Conditions of Use, including without limitation the following:

4. Security

4.1. The SIDC User shall not reveal his/her PIN to anyone or store or record the PIN in written or other form.

4.2. The SIDC User shall not allow anyone else to utilize his/her SIDC to deliver an Application to the Bank.

4.3. The SIDC User shall always logout from CC when not using the system. Failure to logout properly cancreate a route into the system that is unprotected.

4.4. If the SIDC User believes a third party has learned his/her PIN or has lost his/her Physical Token he/sheshall immediately notify clientconnectiongworldbank.orR.

4.5. The Borrower shall immediately notify the Bank at clientconnectiongworldbank.org of any lost, stolen orcompromised SIDC, and take other reasonable steps to ensure such SIDC are disabled immediately.

5. Reservation of Right to Disable SIDC

5.1. The Borrower shall reserve the right to revoke the authorization of a SIDC User to use a SIDC for any reason.

5.2. The Bank reserves the right, in its sole discretion, to temporarily or permanently disable a SIDC, de-activatea SIDC User's Account or both.

6. Care of Physical Tokens

6.1. Physical Tokens will remain the property of the Bank.

6.2. The Bank will physically deliver a Physical Token to each Signatory designated to receive one in a mannerto be determined by and satisfactory to the Bank.

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6.3. Physical Tokens contain delicate and sophisticated instrumentation and therefore should be handled with duecare, and should not be immersed in liquids, exposed to extreme temperatures, crushed or bent. Also, PhysicalTokens should be kept more than five (5) cm from devices that generate electromagnetic radiation (EMR), such asmobile phones, phone-enabled PDAs, smart phones and other similar devices. Physical Tokens should be carriedand stored separate from any EMR device. At close range (less than 5 cm), these devices can output high levels ofEMR that can interfere with the proper operation of electronic equipment, including the Physical Token.

6.4. Without derogating from these Terms and Conditions of Use, other technical instructions on the proper useand care of Physical Tokens are available at http://www.rsa.com.

7. Replacement

7.1. Lost, damaged, compromised (in terms of 4.5, above) or destroyed Physical Tokens will be replaced at theexpense of the Borrower.

7.2. The Bank reserves the right, in its sole discretion, not to replace any Physical Token in the case of misuse,or not to reactivate a SIDC User's Account.

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[Attachment 4]

Statement of Expenditures (SOE)

IBRD- International Bank for Reconstruction and Development

Statement of Expenditures

Financier

Payment made during the period from to Loan/Credit/Grant #Application #

The folowing expenditures have been incurred during the retroactive financing period (please tick I Yes No Category #

Thefolow,ngexpenditures have been incurred before the closng date of the loan/credit/grant (please tick) Yes No Page #1

ONLY for the Designated Account1 2 3 4 5 6 7 8 9 10 11 13 14 15

Contract # Contract currency Total amount of

itemn Supplier's Name Brief Descripton Prior Review (C aent and amount (original invoice Date of invoice covered eby Eligible Exchange te of AmountItm uplers ae rif ecrpto o te Contract? Connection # + amendment) number payment by Application % Financed tyEibl ExhneWithdrawal from Withdrawn fromNo expenditure frPir(e frtni. the Bank Amount rate the Designated eDsgae

for Poior (net of retention) the Designated Account(YES or NO) Review Account

contracts) (Col 9 X 10) (Col 11112)

0.00 0.00 TOTAL 0.00Supporting documents for this SOE are retained at

(insert location)

A separate form should be used for each category

28

Attachment 5Statement of Expenditures (SOE) for Subsidy claims under Category 1

Connections made during the period from to Date:

Application No.:TF No.:

SOE No.:

2 3 4 5 6 7 8Rate per Unit in

US$Number of Grid Reference Amount Eligible -1

.(US$794 for Total Cost of CCommunity connected Connectons (Honiara/ .onia79 .irTtalCotof for Financing E

installed Outstation) US$994 for (Col 3 * Col 5)

outstations)

Total

Amount claimedin this WA

(total in Col 7 ortotal in Col 6 if

below)

Supporting documents for this SOE retained at: (insert location)

29