THE WORLD BANKIBRD * IDA I WORLD BANKGROUP

OFFICIAL April 20, 2017

DOCUMENTSDr. The Right Honourable Keith MitchellPrime Minister and Minister of Finance and EnergyMinistry of FinanceFinancial ComplexThe CarenageSt. GeorgesGRENADA

Re: Grenada: IBRD Loan 8734-GD(OECS Regional Tourism Competitiveness Project)

Additional Instructions: Disbursement Letter

Dear Minister

I refer to the Loan Agreement between the International Bank for Reconstruction andDevelopment (the "Bank") and Grenada (the "Borrower") for the above-referenced project,dated April 20, 2017. The Agreement provides that the Bank may issue additional instructionsregarding the withdrawal of the proceeds of Loan 8734-GD ("Loan"). This letter ("DisbursementLetter"), as revised from time to time, constitutes the additional instructions.

The attached World Bank Disbursement Guidelines for Projects, dated May 1, 2006,("Disbursement Guidelines") (Attachment 1), are an integral part of the Disbursement Letter. Themanner in which the provisions in the Disbursement Guidelines apply to the Loan is specifiedbelow. Sections and subsections in parentheses below refer to the relevant sections andsubsections in the Disbursement Guidelines and, unless otherwise defined in this letter, thecapitalized 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 usedunder the Loan:

* Reimbursement* Advance* Direct Payment* Special Commitment

(ii) Disbursement Deadline Date (subsection 3.7). The Disbursement Deadline Date is four (4)months after the Closing Date specified in Section IV.B.2 of Schedule 2 to the Loan Agreement.Any changes to this date will be notified by the Bank.

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iii) Disbursement Conditions (subsection 3.8). Please refer to the Disbursement Conditions inSection IV.B.1 of Schedule 2 to the Loan Agreement.

II. Withdrawal of Loan Proceeds

(i) Authorized Signatures (subsection 3.1).An authorized signatory letter in the Form attached (Attachment 2) should be furnished to the Bankat the address indicated below providing the name(s) and specimen signature(s) of the official(s)authorized to sign Applications:

The World Bank1818 H Street, N.W.Washington, DC 20433United States of AmericaAttention: Ms. Tahseen Sayed Khan, Country Director

(ii) Applications (subsections 3.2 - 3.3). Please provide completed and signed (a) applications forwithdrawal, together with supporting documents, to the address indicated below:

The World BankSCN, Quadra 02, Lote AEdificio Corporate Financial Center70 andar70712-900 Brasilia, D.F.BrazilAttention: Loan Operations

(iii) Electronic Delivery (subsection 3.4) The Bank may permit the Borrower to electronicallydeliver to the Bank, Applications (with supporting documents) through the Bank's ClientConnection, web-based portal. The option to deliver Applications to the Bank by electronic meansmay be effected if: (a) the Borrower has designated in writing, pursuant to the terms ofsubparagraph (i) of this Section, its officials who are authorized to sign and deliver Applicationsand to receive secure identification credentials ("SIDC") from the Bank for the purpose ofdelivering such Applications by electronic means; and (b) all such officials designated by theBorrower have registered as users of Client Connection. If the Bank agrees, the Bank will providethe Borrower with SIDC for the designated officials. Following which, the designated officialsmay deliver Applications electronically by completing Form 2380, which is accessible throughClient Connection (https://clientconnection.worldbank.org). The Borrower may continue toexercise the option of preparing and delivering Applications in paper form. The Bank reserves theright and may, in its sole discretion, temporarily or permanently disallow the electronic deliveryof Applications by the Borrower.

(iv) Terms and Conditions of Use of SIDC to Process Applications. By designating officials touse SIDC and by choosing to deliver the Applications electronically, the Borrower confirmsthrough the authorized signatory letter its agreement to: (a) abide by the Terms and Conditions ofUse of Secure Identification Credentials in connection with Use of Electronic Means to Process

Applications and Supporting Documentation ("Terms and Conditions of Use of SecureIdentification Credentials") provided in Attachment 3; and (b) to cause such official to abide bythose terms and conditions.

(v) Minimum Value of Applications (subsection 3.5). The Minimum Value of Applications forReimbursement and Direct Payment is United States Dollar (USD) 100,000 equivalent.

(vi) Advances (sections 5 and 6) for Category (1) - DA-A

o Type ofDesignated Account (subsection 5.3): Segregated

" Currency ofDesignated Account (subsection 5.4): USD

o Financial Institution at which the Designated Account Will Be Opened(subsection 5.5): Grenada Co-operative Bank Limited

" Ceiling (subsection 6.1): forecast for the subsequent six months as provided inthe quarterly Interim Financial Report.

(vii) Advances (sections 5 and 6) for Category (2) - DA-B (To be managed by Saint LuciaPCU in accordance with the Subsidiary Agreement as referred in Section LD of Schedule 2 tothe Financing Agreement.

o Type of Designated Account (subsection 5.3): Pooled

o Currency ofDesignated Account (subsection 5.4): USD

o Financial Institution at which the Designated Account Will Be Opened(subsection 5.5): Bank ofSaint Lucia

0 Ceiling (subsection 6.1): forecast for the subsequent six months as provided inthe quarterly Interim Financial Report. The total amount advanced to DA (B)cannot exceed USD 200,000.

III. Reporting on Use of Loan Proceeds

(i) Supporting Documentation (section 4). Supporting documentation should beprovided with each application for withdrawal as set out below:

For requests for Reimbursement and for reporting eligible expenditures paidfrom the Designated Account:

o Interim Financial Report in the form attached (Attachment 4); ando List of payments against contracts that are subject to the Bank's Prior

Review, in the form attached (Attachment 5)

* For requests for Direct Payment: Records evidencing eligible expenditures,e.g., copies of receipts, supplier invoices

(ii) Frequency of Reporting Eligible Expenditures Paid from the Designated Account(subsection 6.3): Quarterly

IV. Other Important Information

For additional information on disbursement arrangements, please refer to theDisbursement Handbook available on the Bank's public website at https://www.worldbank.organd its secure website "Client Connection" at https://clientconnection.worldbank.org. Printcopies are available upon request.

If you have not already done so, the Bank recommends that you register as a user of theClient Connection website (https://clientconnection.worldbank.org). From this website you willbe able to prepare and deliver Applications, monitor the near real-time status of the Loan, andretrieve related policy, financial, and procurement information. All Borrower officials authorizedto sign and deliver Applications by electronic means are required to register with ClientConnection before electronic delivery can be effected. For more information about the website andregistration arrangements, please contact the Bank by email at<clientconnection@worldbank.org>.

If you have any queries in relation to the above, please contact Tatiana de Abreu, FinanceOfficer, at tdeabreu(@worldbank.org using the above Project Name and Loan number as reference.

Very truly yours,INTERNATIONAL BANK FOR RECONSTRUCTION

AND DEVELOPMENT

Tahseen Sayed KhanCountry Director

Caribbean Country Management UnitLatin America and the Caribbean Region

WORLD BANK

DISBURSEMENT GUIDELINESFOR PROJECTS

LOAN DEPARTMENTMay 1. 2006

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CONTENTS

1 Ppose..

2 Di-;bursenicit Xlet hods .

3 Witidrawal of Loan Proceeds ..6

4 Supporting Docueiitation Requirements 9

5 Desigiated Accounts. ..

6 lerns and Conditions Applicable to Advarics ........ 12

7. Ineligible Expenditlures .. .. ....... ............... 4

Refunds..... ....... ...... 15

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一－－一一－－一一－－一一－－一．― 遞

2. Disbursement Methods

2.1 1 lit, Barik eýtablisht- disbursement arrantl-Cinents for an op-t,ratiou in eonsultation Nvitli tht- lx)rrovver mid taking- into

mt#r i!if,. an ý-Lýs4-,sniew -,f the ý«>rrower',alid proeurement arrangements. the

proelirt-nieut plaii. atid cash flow of th,, oýx,ration. andir,, exlXTiCItC(- With the børrower,

2.2 Ilit, Bank dibur~ý4-, fTorn tlik, ban Aceoillil e-stab-

li,ýhed for caell loan. to or on t lik, ordt--r of i i-,ør-rower. usiljø

one or more of tlie disburscment iw-rhods forthde,wriiiiiw(I i),,- the Bank.

(a) Retnibursenient: 'I he Bank may ri,inibur..e the hOT-

rower for exp,udititres digriblk, for financing purswmt torh,ý- Loan i --eligibb, exIx,riditim-s" 'i tliat th(,hørr->wer hý prk-fiwineed fr(-,iii its own

(b) Advanee: flie Baijk may advance. loaii prøet-,,,Ls iritoa deýl,,ziiated aecourit of tlie borr^er to finanee eligibleexpeuditim-s ýLs tlie.v are ineurred aud for whielj SuWporting doeninerits AýIl be provided tt a later datkýseetion ->. -Bh-,ignated A4-eoulits '. :.

(c) Direct Payment: The Bank rnay make paynterit,,. atlx)rrowý,r's reijile-st. diru-etly lo a third pýarty :e.g..

SI.Ipplier. eontraetor. C011s111tant: for elipble (,xp<,nfli-

(d) Special Commitment: l hv B;mk may pay aniolmt-ý1to a third partY for t,ligible expt.-niliturCý under sp--cial4-oin111i11114'lits elit"ný<l iwo. ir, 'A-Titirýty. at til(- borrow<,r

and o11 afid Coliklili.,ns ýIgT("i Ix,twf-en til"

W-ink anl th<, lx)rr, )WCT

3. Withdrawal of Loan Proceeds

3.1 Autho"'Zed Sipiatures. B,,for(ý procet.-d-ý may bt-wýtliiýr:m-n or conimilted fr()11,i Ille b,ail Ace""nt. tlit, ;Iii-

1 6

World BankDisbursement Guidelines

for ProjectsMay 1, 2006

1. Purpose

1.1 1ie purpose of these Guidelines is to t olt theti Bank'sproceduares for disbursement of loan proceeds for projectSpecfica]ll. the Gltidelines explain ai the different rnethods

iIsed by the Bank to disburse loan proceed,s. ih: the require-Tilerits for withdrawal from the Loarä Acount. : the ty.'

of upport ing dotnentation that the borroTwer May be Te-qu'ired to provide to demostrate the use of loan proceedsfor eligiblt, expenditnres. ( the criteria for ttablishing des-

iglated acconlllts.) the terrms and conditions applicable t-advances. :f lie types of actions that the Bank nay 1akeif it determines that loai proceds are not needed or havebeen iused for ineligible purpoes. and i g; the consequence ofreff111 1-

i.kik :neh:d IBBrD aund ID\. Sknin~ in:e =r~d and care. -Serr.w1" iues de borr!Tw.r of an 1Rt U U>1 an. ID .\ cridi or Pro ee' Prop

ra1r 1 iins -nlare and i fi re-n,;"sot lr n li X \ .Jm.TIIh rh :~nrr .- nh de 1nIk provid:nr 6Kri ~ -:a . r si

ui L.r ib' Prr,c T T löjmnven y. :Mr d ~ bmal' e Mil: ner iw Ini--ia!vo Devsi in! huv and am WebLi hyvarerisT INchp bm:iss 00 b-

''Tw jc- eh mitV i in ) rT.tini 111>*_'\ ii . ¯Ø / ' :" !,:' " r ";

»N m t:Itam fr.tred Yrim rust fioiis 1:rihes. exce.pI ' nally. 1 i '.rru-I I N. InhmIt i o 1 , r d r Tiake prv!s:. ii for diffi rii; s,rt:rr

l hal 1d m' -nient Powlicy Muj linsa

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3.5 AMinimum Valuc of Applications. Aihe Bank -t ablishsa mininium valie for Applications for reimbursement. direct

paymernit. and special coiiitnii t. The Bank res-rves theright not to accept Applicationis fhat art beh>w such riiii-

mm value.

3.6 Loan Disbursing Period. The Bank processes Appli-cations onilv after the Loan AgTreeTent has been ldeclared

effeetive in accordance with the tenus of the Loan Agree-nnt. The expenditures for which the Appliations aremade IwLst be:

(a) paid for i on or after the date of the Loan Agreement.or :ii, in the case of operatiois that permit retroactive

fimaicing. on or after the carlier date speciae in theLoan Agreernent for that piurpose: and

(b) incurred on or before the closinåg date specifed or re-

frrel to in the Loan Agreemeiit i'lh>ing Date" ! ex-cept a.s otherwise specifcally agreed with the Bank.

3.7 The loan dlisbirsiig period endis on the firial dae establishedby the Bank for receipt by lie Bank of applicatioiLs for with-

drawal and slipporting documnrtation ithe 'DisbursementDeadine D .ate The Disburserenrt Deadline Date may bethe sane as the Closing Date, or up to four nointh after the

Choing Date. Normallv. to suppnrt orlerly projec7 com#)llple-

tin and eksure -f the Loa Accoiint. the Bank dos not ac-rept applicat ions for withdrawal or siippor ing docueniitation)r

receivel after the Disbrsement D,adline Date. he borrower,htould promptly. inform Ie Baki of any expecred implemen-ati delays or exeptinai adminrat ive issues before thtse

diat es. 1he Bank notifies the brr,wer of aiy eeption thathe Bank may make to he Dishursemeiint Deadliie Date.

3.8 Disbursement Conditions. If the Loan Agreenierit con-tas a disb:rsemnt conlition for a speciT expeniditur cai-egorv. the Bank will dilsbulrse Joan procetis for that calegory

onlJY afier Thi- dislirstmiiei-it coridition hia. bweii fillfilled andihe Bank has n rrie il the borrower io rhis effect.

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t horizeil r presenitat ivet of the b)rrower oas designated in th,Loan Agreen(rt i nust furnish to the Bank ia) the narni,f thi officiah s) authorized to sigi applications for with-

drawal and applicationis for a -;pecial cominmitmieut icoll(-t ively. "AppJlications' and b) the aut henticated sp<eimn-#nature > of the offiialIs! The borrower mnuot irdicateclearly if nare than iie signatire i- required on Applica-

tin and iust tify tit, Bank prom-ptly of anv change~ ir,-xignature authoritv.

3.2 Applications. ApplicationS tiLst le provided ,, thc Bankin such form and inclide such infonnation as the Bank mayreasna4>bly request. Application forms are available olinefrom the C(litnt Connection Web site at http: Y; tenmt4-

. riUldha ,o or from the Bank ipon request.

3.3 lor withdrawal from the Loan Accoint for advances. theb. 'rrower -hould provide an original sigied application forwithd:rawal. For withdrawal from the Loan Account for re-~ibursements anditr't pavmenuts and for reporting on th,e

iife o*f advances. the borrower should provide an originalmind Iapplica.tion for withdrawal together with one copy

(f -upporting dlocullients iseesection 1. cSupporting Docui-m atioM R(equ1irem1ents"!. For a special commitmenit fromth11 Loan Accomunt. the borrower should provide anri i ginalsigd fl application for a special commitment together withnLe copy of the let ter of credit h Te Bank reserves the rightII 14 aeeept or revi,w duplicate copies of Applications andu1Ipptorting: dociium:ents and nav at its diseretio,n return or

de'stroyø the dlupliatt-'

3.4 Electronic Dellieery. lie Bank may authorize thb- b)r-ro.wer to ise eletronie neans. in a nanner and on termsand ondtion.s spxcifwcd by tle Bank. to delhver Applil-at ionand4 slipprting deimlentatio mn to tle Bank. .pplicationsand suippo,rt ing dlocuimentationu delivered in accorianke wit hthis subwectin will be deeIned to have ben proviAdd to theKtnk for i lie purposes of satisfyinffg !he reqireinents of <ib-4Ertjonj. 3 2 dL .3 of 1 h11SC Guideline11;s

7 1

(c) For applications for direct payments: Records:and

(d) Any other supporting documentation that the Bankrnav request by itotice to the horrower.

4.5 Failure to Provide .Audited Financial Statements. Ifthe borrower fails to provide any of the aitjted FiancialStaternerits reqilred in accordancc with. and within the pe-riod of time specifled in. the Loan Agreement. the Bank mayat its diseretion decide not to accept applications for with-drawal supported by Summary Reporl. ev-en if sueh reportsare accompaniedb Records.

5. Designated Accounts

5.1 1he b>,orroiwer may open one or nore designated accounts

into wIlich the Bank rnay. at the borrower', requesr. de-posit amounts witiI-drawn fromn the Loar Accoint for the

plrPse of paving for eligible expenditures as they are in-curredl 1Designared Acctint Before the Bank authorizesestablishment of a Dwignated Accounrt. the borrower nusthave adequate administrativt capability. internal controls.arnd accolint ig and auditing procedilTres to ensure effeetiveIs of rhe Designated Accouni.

5.2 t he Bank may decide not to perinit the use of DesignatedAccounts in new projeers if tbe borrower has failed to re-fund undocumented advances in the D,esignaed Account ofany other loan to. or guaranteed by. the borrower withintwo rmont hs after the Disbursnent Deadline Date for sucihl>at-

5.3 Type of Designated Account. A Designated crolnt maybe est ablished iii one of tb tivo ways set out beltow. as ap-

pr,,priate fir the operatitonrcnerned. as determiinedl andnjotffitl 1. the Bank.

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4. Supporting Documentation Requirements

4.1 1 he borrower provides supporting dociimentation to theBank to show that loan proieeds have been or are beingulsed<1 to filian eligible expendilitures.

4.2 1or spcial -ommniitients. the cornercial bank provides itsIonfirimation directly to the Bank that conditions for release

of paymentis coummitted for withdrawal have been iet.

4.3 Types of Supporting Docurmentation. 1Ie Bank re-pilires cither copics of the origial docurnents evidencing

vligible expenditures 1 jRecords or summarV reports of ex-pediture -Siiiiriiary Reports'-- in such form and substaneas iie Bank may specify. eods include such dociieiitsas iImoices and receipts. A Samiirnary Report may be vithera i the interim un-audited financial reporl require1 underlhe Loan Agreement '"Interim Financial Report" or bi itaternt of expenditure suirmmarizing eligible expendi-tires paid during a stated period ; -Statement of Expendi-tir--: fn al] cases. the borrower is responsible for retaininghe >riginal doiuments evidencing eligib]e expenditures and

making tcm available for audit or ispectioln.

4.4 1 hI Bank deterines the tYpes of «upporting documentationthat ie brrower should provide. takirng iito considerationfle disbursement mthod uscd Tlie supporting docuniita-ti"n may be lhe fofllowing

(a) For applications for reimbursement: 'i; Initerimr,inancial epOrtS. i Statementis of Expnditur-. iii

Recorls. or ;iv- Reods required by the Bank for sPe-cifio. expernditilres and Statment of Expend,litur, K allMI her expendituris:

(b) For reporting on the use of advances: i linerimIinanial Beports |ii Statements of Expendirtur. iiii;

Records. or :ivi Pecords required bv tlie Bank for spe-cifie xpendius and St atement of Expendtur' for allother exp, wditimres:

9 1

(d) be abl to execute a large nubrnhr of transactionsprolptiy:

(e) be able to perforrn a wide range of hanking services sat-isfactorily:

(f) be able to provide a detailed staternent of the Desig-nated Accout:

(g) be part of a satisfactory correspndent banking network:alld

(h) charge reasonale fees for its services.

5.6 1 he Bank reserves the right not to accept a financial insti-

nution for the opening andior mlaintenare of a DesignatedAccount if siuch instituton has assvrted or asserts a claiinto set off. seirz. or attach the proceeds of any Bank loan ondeposit in a Designaled Account maiitained by it.

6. Terms and Conditions Applicable to Advances

6.1 Ceilang. Flhe Bank notifies the borrower of the niaximumamount of loan proceed that rnay be on deposit in a Desig-liated Accouit the "Ceiilg -The Bank. at its discretion.

may est ablish the Ceiling as vithr ; al a fixei arnount. or fb:an arnouit that is adjusted fron time to tirne during projeviiinplen,ntation based on periodic- forecasts of projeet cash

flw neIIdS.

6.2 Applications for Advances. lhe borrower may apply for

an alvanve in an almonllt up to tio Ceiling less the aggre-

gate amonmr of those advaine previous received by thehorrower for which the borrower has not yet provided sup-porting dot'umnt ation. Normially. ro support >rderly losureof the Loau Aciout. the Bank dlos not advance loan pro>-Ieds int te Designated A10unt atr t le Closing Date.

6.3 &equenicy of Reporting Eligible Expeniditures Paidfrom the Designated .4ccount. 1he horrowtr rt,ports on

i h, iisc of loan procdtiS advane io t i Designat d Atoint

12

geni I-*x. -i

(a) Segregated Account: this is an accont of the borroweriito with only proeds of the loan maY bv deposired:or

(b) Pooled Account: this is an account f the borroweriito hicih th loan proceds and procevd- of oth-r f-naneinIg for the operati,ni :v_g.. borrower res imIres dor fanciig bv other development partners i may be dv-positol

5.4 Currency of the Designated Account. Designated Ac-rount mnut bI in a eurrenv acCeptabe to the Bank. Inountrie- that have a freelv convertible elirreny. Designated

Accoutnts may be held in the currenc of the borrower oranV freel convertible currenL. The Bank may also agreet,, loal urrenc Designated Account_s when. mt r ilm. therolunt T- currencwy event if not freely convertible is staleand the expenditures to be fManeeLd are primaril in lo-fal 11Curc he bIIrrower bear all risks associated withfor<xin exchanyg filctuations betwecin la: the currency ofd1nornination of the loan and that of the borrower'- Desie-natd Accort. and ): the currencv of denomination of theborrower's Dcsgmaed Accoit and the eurrency or eurren-cits of projet e,xpend(itiures,.

5.5 Financial Institution. Dsignated Accournts must betpe41 and4. maintained in a financial intitution atrcept-ab]. to the Bank on terims an1 condmitions aceptabl t thBank. 1(- b accept able to tbe Baik. the fmanrcia institu ionproposed bY teit borrower should generally meet all the fol-1l'wing req;uirxeents:

(a) be fmancrialIv sound:(b) ia aflbiied t>[1 aiin t Designated A<ro4nt in

th cuirreny agrd b1etweer thie Bank and th. bor-rower

(c) be d'2itd'41 rguiilarly. and reccive sa tisfactory a1lit re-port 's

11ii

ioticationi by the Bank. te borrower rmuzt promptly takethe actijon requested1:

(a) Provid' evidence satisfactory to the Bank withiii a pe-riod1 specifted l the Baik that the Excess Amouiit willbe used to pay for eligible exprditure. If the evidenceis not firni-hed withiii tbe lime period spcified. tbe

borrower nmst4 promptly refmnd the ExceAmount tothe Bank: or

(b) RefiInd thi ExcessAmount promptl

7. Ineligible Expenditures

7.1 Ineligible Expenditures Generally. If the Bank deter-nines tihat any arount of ihe loar was used to pay for anexpenditure that is not eligible pursuant to the Loan Agree-ment ineligible exnditure:. the Bank may. at its dis-retin. require the borrowe r to take n of the two actions

listed below. Iipon notifeationi b the Bank. the borrower

musr proinptly take the actioni rjuested

(a) Refmun an equivalent amount to tt, Bank: or

(b) Exceptionally. provide substitute docurnentaion evi-d.neing other eligible expenditures.

7.2 Inelig3ble Expenditures Paid fron the Designated4ccount. If the Bank determines that any parment out of

the Designaoed Acouint Iwas r:ot jiustifiei by tlie evidnivicefurni-hed to thbe Bank or was rnade for an ineligible expen-liture. ihe Bank may. at its disc,retioni. require the borrower

t4 take ont of the atins list(ed hekI,w. pn not1ilatin

yth, l Bank. the borrower rmust prompty take the actionreqll -te, 1:

(a) Privi<ie lh additiiina eviden e requested by the Bank:

(b) Diiit an equivalent arnount in the Designattd \c-

l 14

at intervals späified by the Bank by notic,e to the borrowerBeporting Pvriod I The borrowr should ensire rhat all

a utlolluts dtpisted in the Designated Account are accoulnredfor and licir iise reported prior to the )isbirsmrrent Dead-line Date. After this date. the borrower rnust refindt to heBank anv advanues still unm,accoiinted1 for or reraininig in theDesignIat ed A \ccount.

6.4 Withholding .4dvances. Ihe Rank is not rTquired to makeany deposit mitt tIeI Designated .ccount if:

(a) The Bank determines that paynent of tlit deposit wouldresult in exceting the Ceiling iser subsection 6.2. Ap-plications for Advances :

(b) Lhe Bank is nor satisfietd that the borrower's plannedproject expenditures justify the deposit fhe Bank may.by nitice to the borrower. adjust the amount it depositsor withhoild firther depk sits into the iDesignared A(-counL until it is saisfied that the fnancial iceds of the·

projevi warrant furiher deposit ,:

(c) the btrrower fails to take the action required pursuantto the determrnirations made by the Bank under subse-,ti -ns 1 and 7-2 of these Guidelines:

Id) lhe lorrower fails to provide any of the audited Finan-cial Staternents required in accordance with. and withinthr p-rio of time specified in. thle Loan Agreernent:

(e) Jh Bank deteirnines that all furrheTr withdrawals ofioan proetets Mhuld be made hy the borrower directlyfrm t n the Loan Account: or

(f) 1 he Bank has notified the borrowr of its intentio toS,en1 in whole (r in part the borrtwer's right tt> make

withdrawals from the Loan Acco unt

6.5 Excess Adrances. If at any tiimn tht Bank dvturrine thatn 1mn1401t dvp<äsid in thihe Deignatd Accouint will not be

rCuired to c>ver flirt ler payients fo,r vligible expenditurcs'Fxtrss u Amt it may. at its discrctio1. require the

-h trrowtr 1t1 taku (n o the tw~ attitn listt e bolow. lpn,

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(c) Refind an eqiivalent amolint to tle Bank: or

(d) Exceptionallv. provide substitute o<1-urintitationk evi-dencing other eligible expenditures.

8. Refunds

8.1 Borrower Decision to Refund. Tlie borrower may. UpOnlnojtie to the Bank. refund all or any anout of the loan ondeposit iii the )esigiated Account to the Bank for credit to

the Loan Are-Ont.

8.2 Consequence of Refunds. The Bank shall deterninewhether refunds made to the Bank in acCordance with see-tions 6 and 7 and hsuet S.1 of these DisbursemeitG(ide-liws will be lredited to the Loan Account for susc-quent withlrawal or for cancellation Borrowers shoild bwawarg that reftnds of loan pwroceeds may result in swap ter-

mination fees and or unwinding cosrs for amounts for whichthe interest rate basis or currencv has been converted orlidgI#l

8.3 Other Obligations Unaffected by Refunds. Refinds ofamounts of the loain do not affevt any remdies of the BankunIIer the Loan Agreenent.

15 1

F WORLD BANK

The Loan DepartmentWorld Bank1818 H- Street, NWWashington, DC 20433Email: wbdisbursementi'worldbank org

Attachment 2

Form of Authorized Signatory Letter[Ministry of Finance and Energy]

[DATE]The World Bank1818 H Street, N.W.Washington, D.C. 20433United States of America

Attention: [Country Director]

Re: Grenada: IBRD Loan -

OECS Regional Tourism Competitiveness Project)

I refer to the Loan Agreement ("Agreement") between the International Bank forReconstruction and Development (the "Bank") and [name of borrower] (the "Borrower"), dated

providing the above Loan. For the purposes of Section 2.03 of the General Conditionsas defined in the Agreement, any 1[one] of the persons whose authenticated specimensignatures appear below is authorized on behalf of the Borrower to sign applications forwithdrawal [and applications for a special commitment] under this Loan.

For the purpose of delivering Applications to the Bank, 2[eachl of the persons whoseauthenticated specimen signatures appears below is authorized on behalf of the Borrower,acting 3[individually] 4[jointly], to deliver Applications, and evidence in support thereof on theterms and conditions specified by the Bank.

5[This confirms that the Borrower is authorizing such persons to accept SecureIdentification Credentials (SIDC) and to deliver the Applications and supporting documents tothe Bank by electronic means. In full recognition that the Bank shall rely upon such

' Instruction to the Borrower: Stipulate if more than one person needs to sign Applications, and how many or whichpositions, and if any thresholds apply. Please delete this footnote in final letter that is sent to the Bank

2 Instruction to the Borrower: Stipulate if more than one person needs to jointly sign Applications, if so, pleaseindicate the actual number. Please delete this footnote infinal letter that is sent to the Bank.

I Instruction to the Borrower: Use this bracket if any one of the authorized persons may sign; if this is notapplicable, please delete. Please delete this footnote infinal letter that is sent to the Bank.

I Instruction to the Borrower: Use this bracket only if several individuals must jointly sign each Application; if thisis not applicable, please delete. Please delete this footnote infinal letter that is sent to the Bank.

I Instruction to the Borrower: Add this paragraph if the Borrower wishes to authorize the listed persons to acceptSecure Identification Credentials and to deliver Applications by electronic means; if this is not applicable, pleasedelete the paragraph. Please delete this footnote infinal letter that is sent to the Bank.

representations and warranties, including without limitation, the representations andwarranties contained in the Terms and Conditions of Use of Secure Identification Credentials inconnection with Use of Electronic Means to Process Applications and Supporting Documentation("Terms and Conditions of Use of SIDC"), the Borrower represents and warrants to the Bankthat it will cause such persons to abide by those terms and conditions.]

This Authorization replaces and supersedes any Authorization currently in the Bankrecords with 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 Credentialsin connection with Use of Electronic Means

to Process Applicationsand Supporting Documentation

March 1, 2013

The World Bank (Bank)6 will provide secure identification credentials (SIDC) to permit the BorrowerF todeliver applications for withdrawal and applications for special commitments under the Agreement(s) andsupporting documentation (such applications and supporting documentation together referred to in theseTerms and Conditions of Use as Applications) to the Bank electronically, on the terms and conditions ofuse specified herein. SIDC can be either: (a) hardware-based (Physical Token), or (b) software-based (SoftToken). The Bank reserves the right to determine which type of SIDC is most appropriate.

A. Identification of Users.1. The Borrower will be required to identify in a completed Authorized Signatory Letter (ASL) duly

delivered to and received by the Bank each person who will be authorized to deliver Applications.The Bank will provide SIDC to each person identified in the ASL (Signatory), as provided below.The Borrower shall also immediately notify the Bank if a Signatory is no longer authorized by theBorrower 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 willrequire that the Signatory establish a CC password (CC Password). The Signatory shall not revealhis/her CC Password to anyone or store or record the CC Password in written or other form. Uponregistration as a CC user, the Signatory will be assigned 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 agreed to 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 Signatorywill access CC using his/her account name and CC Password and register his/her Physical Tokenand set a personal identification number (PIN) to be used in connection with the use of his/herPhysical Token, after which the Physical Token will be initialized for use by the Signatoryexclusively for purposes of delivering Applications. Where a Soft Token is to be used, theSignatory 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 whichthe Soft Token will be initialized for use by the Signatory exclusively for purposes of deliveringApplications. Upon initialization of the SIDC, the Signatory will be a "SIDC User". The Bank willmaintain in its database a user account (Account) for each SIDC User for purposes of managingthe SIDC of the SIDC User. Neither the Borrower nor the SIDC User will have any access to theAccount.

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

3. Prior to first use of the SIDC by the SIDC User, the Borrower shall ensure that the SIDC User hasreceived training materials provided by the Bank in use of the SIDC.

C. Use of SIDC.Use of the SIDC is strictly limited to use in the delivery of Applications by the SIDC User in themanner prescribed by the Bank in the Agreement(s) and these Terms and Conditions. Any otheruse of the SIDC is prohibited.

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

3. The Borrower undertakes to ensure, and represents and warrants to the Bank (such representationand warranty being expressly relied upon by the Bank in granting SIDC) that each SIDC Userunderstands and will abide by, these Terms and Conditions of Use, including without limitation thefollowing:

4. Security4.1. The SIDC User shall not reveal his/her PIN to anyone or store or record the PIN in writtenor other form.

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

4.3. The SIDC User shall always logout from CC when not using the system. Failure to logoutproperly can create 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 PhysicalToken he/she shall immediately notify clientconnection@worldbank.org.

4.5. The Borrower shall immediately notify the Bank at clientconnection(@worldbank.org of anylost, stolen or compromised SIDC, and take other reasonable steps to ensure such SIDC are disabledimmediately.

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 aSIDC for any reason.

5.2. The Bank reserves the right, in its sole discretion, to temporarily or permanently disable aSIDC, de-activate a 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 receiveone in a manner to be determined by and satisfactory to the Bank.

6.3. Physical Tokens contain delicate and sophisticated instrumentation and therefore should behandled with due care, and should not be immersed in liquids, exposed to extreme temperatures,crushed or bent. Also, Physical Tokens should be kept more than five (5) cm from devices thatgenerate electromagnetic radiation (EMR), such as mobile phones, phone-enabled PDAs, smartphones and other similar devices. Physical Tokens should be carried and stored separate from anyEMR device. At close range (less than 5 cm), these devices can output high levels of EMR thatcan 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 onthe proper use and 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 bereplaced at the expense of the Borrower.

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

Attachment 4Name/Number of project

Sources and Uses of FundsFor the Period Ending

Current Period CUMMULATIVE FORECASTRECEIPTS Actual Budgeted Variance Actual Budgeted Variance Next 6 Months

World BankAdvanceReimbursementDirect Payment

Total Receipts (A) 0 0 0 0 0 0 0

LESS EXPENDITURESComponent 1Component 2Component 3Component 4

Total Expenditures (B) 0 0 0 0 0 0 0

RECEIPTS LESS EXPENDITURESNet Change in Cash (A- B) 0 0 0 0 0 0

Foreign Exchange Adjustment

CASH BALANCESOpening Cash Balances

Designated AccountProject Account

Total Opening Balance 0

Closing Cash BalancesDesignated AccountProject Account

Name/Number of project

Use of Funds by Project ComponentsFor the Period Ending

Current Period CUMMULATIVE FORECAST

Actual Budgeted Variance Actual Budgeted Variance Next 6 Months

Component 1

Component 2

Component 3

Component 4

Total 0 0 0 0 0 01

Name/Number of projectUse of Funds by Disbursement Categories

For the Period EndingCategories Current Period CUMMULATIVE

Amount per Total Allocation perActual Amount per IFR Client Difference Comments legal agreementsConnection

1. Consultants

2. Training and Workshops

3. Audits

Total 0 0 0 0 0 0

DESIGNATED ACCOUNT RECONCILIATION STATEMENT

LOAN/CREDIT/PPF/COFINANCIER NUMBER

ACCOUNT NUMBER WITH (BANK)

US$000

1 TOTAL ADVANCED BY WORLD BANK (OR COFI NANCI ER)

2 LESS: TOTAL AMOUNT DOCUMENTED BY WORLD BANK

3 PRESENT OUTSTANDING AMOUNT ADVANCED TO THE DESIGNATED ACCOUNT (1 - 2)

4 BALANCE OF DESIGNATED ACCOUNT & PROJECT ACCOUNT PER ATTACHED BANK RECONCI UATION AS OF DATE

5 PLUS: TOTAL AMOUNT TO BE DOCUMENTED IN THIS APPLICATION NO.

6 PLUS: TOTAL AMOUNT WITHDRAWN AND NOT YET DOCUMENTED

REASON:

7 PLUS: AMOUNTS CLAIMED IN PREVIOUS APPLICATIONS NOT YET CREDITED AT DATE OF BANK STATEMENTS

APPLICATION NO.

WA# XXX

WA#XX

SUBTOTAL OF PREVIOUS APPLICATIONS NOT YET CREDITED

8 LESS: INTEREST EARNED

9 TOTAL ADVANCE ACCOUNTED FOR (NO.4 THROUGH NO.9)

10 DIFFERENCE (3 -9)

11 EXPLANATION OF ANY DIFFERENCE SHOWN IN UNE 10:

DATE: SIGNATURE:

TITLE:

Attachment 5World Bank

Payments made during the stated period for contracts subject to Bank's Prior Review

Status ofContract Form 384 ** Expenditur Contract Contract Contract World Bank No- Aupaid to Amount financed bynumber * 1. Sent 2. e Category Date currency Amount objection Date application the World Bank

Unsent

* Please indicate the number of the contract per the Bank's system (available in Client Connection)** This field indicate whether the contract was signed and Form 384 sent to the Bank for registration