Disbursement Handbook 2025

Protected IsDB DISBURSEMENT HANDBOOK 2025 IsDB DISBURSEMENT HANDBOOK 2025 Table of Contents ABBREVIATIONS iii FOREWORD v INTRODUCTION 2 1.1 1.2 1.3 1.4 1.5 1.6 2 2 3 4 5 5 Purpose Applicability Key Project Dates Electronic Access Outreach Inquiries THE IsDB GROUP 8 2.1 2.2 2.3 8 9 9 Overview Decentralization Islamic Modes of Finance DISBURSEMENT POLICIES 12 3.1 3.2 3.3 3.4 3.5 3.6 3.7 12 12 14 14 14 14 15 Basic Principles General Conditions Financing Agreement Effectiveness Cost Eligibility Advance Contracting and Retroactive Financing Procurement of Goods, Works and Services DISBURSEMENT MODALITIES 18 4.1 4.2 4.3 4.4 4.5 18 18 19 20 24 Modes of Disbursement Direct Payment Reimbursement Reimbursement Guarantee / Special Commitment Special Accounts DISBURSEMENT PROCEDURES 30 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12 5.13 5.14 30 30 33 34 34 34 35 35 36 36 36 37 38 39 Disbursement Letter Withdrawal of Funds Eligible and Ineligible Expenses Components and Expenditure Categories Reallocation of Proceeds Contract Management Disbursement Currency & Exchange Rate Minimum Disbursement Amount Bank References Refunds Cancellation of Undisbursed Balances Project Closure Steps to Avoid Disbursement Delays Disbursement for Special Situations PROJECT FINANCIAL MANAGEMENT 44 6.1 6.2 6.3 6.4 6.5 6.6 6.7 Background and Introduction Financial Management Capacity Capacity Assessment Project Preparation Project Implementation Audit Reports Project Documents 44 45 45 46 46 47 49 GLOSSARY OF ESSENTIAL TERMS 52 ANNEXES 59 Annex 4.1: Withdrawal Application Form Annex 4.1-A: Summary Statement / Statement of Expenditures Forms Annex 4.1-B: Expenditure Forecast (SoFE) Form Annex 4.2: Direct Payment Checklist Annex 4.3: Reimbursement Checklist 60 64 66 68 69 Page i IsDB DISBURSEMENT HANDBOOK 2025 Annex 4.4-A: Reimbursement Guarantee Commitment Application Annex 4.4-B: Reimbursement Guarantee – Swift-based Sample Annex 4.4-C: Amendment Reque