“Agricultural Commercialization Project” Grant No. H964-TJ, Grant No. D259-TJ, Credit No. 6167-TJ The project financial statements for the year ended December 31, 2018 and independent auditors’ report “AGRICULTURAL COMMERCIALIZATION PROJECT” GRANT NO. H964-TJ, GRANT NO. D259-TJ, CREDIT NO. 6167-TJ TABLE OF CONTENTS Page STATEMENT OF MANAGEMENT’S RESPONSIBILITIES FOR THE PREPARATION AND APPROVAL OF THE PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018 2 INDEPENDENT AUDITORS’ REPORT 3-5 PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018 Summary of funds received and expenditures paid 6 Summary of expenditures paid by project components 7 Notes to the project financial statements 8-20 65 Stefan cel Mare şi Sfânt Blvd 5th Floor, Office 507 2001 Chisinau Moldova T: +373 22 233003 F: +373 22 234044 info@bakertilly.md www.bakertilly.md INDEPENDENT AUDITORS’ REPORT To the management of the Project “Agricultural Commercialization Project” under the Ministry of Finance of the Republic of Tajikistan and Ministry of Agriculture of the Republic of Tajikistan and the State Committee on Investments and Government Property Management of the Republic of Tajikistan: Report on the project financial statements Qualified opinion [1] We have audited the project financial statements of the Project “Agricultural Commercialization Project” (the “Project”) which comprise the summary of funds received and expenditures paid and the summary of expenditures paid by project components for the year ended December 31, 2018 and a summary of significant accounting policies and other explanatory information (the “project financial statements”). [2] In our opinion, except for the effects of the matter described in paragraph [3], the accompanying project financial statements present fairly, in all material respects, the summary of funds received and expenditures paid and the summary of expenditures paid by project components of the Project for the year ended December 31, 2018 in accordance with International Public Sector Accounting Standard “Financial Reporting Under the Cash Basis of Accounting” (the “IPSAS”) issued by the International Public Sector Accounting Standards Board of the International Federation of Accountants, and the World Bank’s Financial Management Sector Board’s “Guidelines: Annual Financial Reporting and Auditing for World Bank Financed Activities” (the “WB Guidelines”). Basis for qualified opinion [3] We were unable to obtain sufficient and appropriate audit evidence to identify correctness of cash balances in CJSC TJSC IBRR “Tajprombank” in the amount of 212,876 US dollars as at December 31, 2018 due to inability of the CJSC TJSC IBRR “Tajprombank” to provide us confirmation letter. It was not practicable to perform alternative audit procedures sufficient to satisfy ourselves as to correctness of balances in the summary of funds received and expenditures paid. As a result, we have not identified what adjustments should have been made in respect of recorded or unrecorded elements making up the project financial statements. [4] We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the project financial statements section of our report. We are independent of the Project in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (IESBA Code) together with the ethical requirements that are relevant to our audit of the project financial statements, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our qualified opinion. ADVISORY  ASSURANCE  TAX ICS Baker Tilly Klitou & Partners SRL trading as Baker Tilly is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. 3 Emphasis of matter [5] Without further qualifying our opinion, we draw attention to the following matters: a. We draw attention to foreign exchange loss in the statement of funds received and expenditures paid. In accordance with the decision of economic court of Dushanbe city of the Republic of Tajikistan dated May 16, 2017 CJCS TJSC IBRR “Tajprombank” had to transfer their US dollars’ accounts to Tajik somoni using the exchange rate of the National Bank of Tajikistan as at March 3, 2017. CJCS TJSC IBRR “Tajprombank” transfer the Project’s special account on March 30, 2018 in the amount of 233,082 US dollars to the Project’s transit account in Tajik somoni in the amount of 2,057,250 Tajik somoni (257,195 US dollars). The difference of 24,113 US dollars was recognized as foreign exchange loss. b. We draw attention to the Note 4 “Cash and cash equivalents”, in which present cash balances in CJSC TJSC IBRR “Tajprombank” (the “Bank”) in the amount of 2,007,250 Tajik somoni (212,876 US dollars) as at December 31, 2018. The National Bank of Tajikistan revoked license of this Bank on February 24, 2017. The Bank is in the process of liquidation. Therefore, the Project has no access to its bank accounts in CJSC TJSC IBRR “Tajprombank” as at date of issuing this project financial statements. c. We draw attention to Note 2 to the project financial statements, which describes the basis of accounting. These project financial statements were prepared for complying with the appropriate World Bank Guidelines and Financing agreements requirements. Other matter [6] The project financial statements are prepared to assist the Project to comply with the requirements of the World Bank. As a result, the project financial statements may not be suitable for another purpose. Responsibilities of management and those charged with governance for the project financial statements [7] Management is responsible for the preparation and fair presentation of the project financial statements in accordance with International Public Sector Accounting Standard “Financial Reporting Under the Cash Basis of Accounting” (the “IPSAS”) issued by the International Public Accounting Standards Board of the International Federation of Accountants, and the World Bank’s Financial Management Sector Board’s “Guidelines: Annual Financial Reporting and Auditing for World Bank Financed Activities” (the “WB Guidelines”), and for such internal control as management determines is necessary to enable the preparation of the project financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s responsibilities for the audit of the project financial statements [8] Our objectives are to obtain reasonable assurance about whether the project financial statements as a whole are free from material misstatement, whether due to f raud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the project financial statements. As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the project financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Project’s internal control. 4 “AGRICULTURAL COMMERCIALIZATION PROJECT” GRANT NO. H964-TJ, GRANT NO. D259-TJ, CREDIT NO. 6167-TJ NOTES TO THE PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018 (in US dollars) 1. GENERAL INFORMATION According to the Agreement between the Republic of Tajikistan and International Development Association (the “IDA”, “World Bank”) signed on July 30, 2014, the IDA provided a Grant No. H964-TJ in amount of 14,300,000 Special Drawing Rights to the Republic of Tajikistan. The period of duration of the Grant is from July 30, 2014 to June 30, 2021. The Grants were provided for the Project “Agricultural Commercialization Project” (the “Project”). On January 18, 2018 was signed the Financing Agreement for additional financing for the Project “Agriculture Commercialization Project” between the Republic of Tajikistan and IDA, IDA provided the Grant No. D259-TJ in amount of 5,400,000 Special Drawing Rights and the Credit No. 6167-TJ in amount of 7,500,000 US dollars. According to Financing Agreement there were changes in the objective of the Project, in the component II and III of the Project and were added new Component IV. The name of Component II was amended to “Component II: Access to finance” and were added new sub- component II.D. In Component III there were amendment in sub-component III.E and sub-component III.F is hereby replaced in its entirety. The period of duration of the Grant and Credit is from January 18, 2018 to June 30, 2022. Project purpose The objectives of the Project are to increase the commercialization of farm and agribusiness products and support micro, small and medium enterprise development in Project areas by providing better access to finance and strengthened capacity of Project beneficiaries. The Project comprises the following components: Component I: Improvement of technical knowledge and skills in support of commercialization; Component II: Access to finance; Component III: Institutional capacity building and project management. Component IV: Entrepreneurship training and business development services to micro, small and medium size enterprises Component I: Improvement of technical knowledge and skills in support of commercialization. Improving of technical knowledge and skills of participants in key agricultural value chains and productive partnerships by: a. Supporting building value chains and productive partnerships under the project, by providing research and improvement of technical knowledge and skills of project beneficiaries on a variety of agriculture- related subjects, and assistance in identifying and pursuing market opportunities. Provision of advisory services and training by a reputable consulting firm with relevant expertise acceptable to the Association, to assist with value chain development activities under Component I, II.B and III of the Project. b. Providing Training and advisory services at the producer level. Establishing a network of demonstration plots, to conduct comparisons and testing between various agricultural production practices and supporting participation of farmer groups in trade fairs and other events. c. Providing Training and advisory services for agro processors and agribusiness enterprises on a variety of subjects related to their business operations. Providing Training on issues relating to child and forced labor. Supporting attendance at trade fairs and providing mentoring services. Component II: Access to finance Enhancing access to medium and long-term finance for agribusiness enterprises and small-scale commercial farms by: 8 a. Establishing and operating of a credit line facility through PFIs to support: (a) medium-term loans and leases for investment for financing modern technological plant and equipment; and (b) value chain financing products and value chain and productive linkage support, and (c) investment and working capital needs for a broad range of micro, small and medium enterprises in Project areas. b. Providing Commercialization Grants to support investment and input needs by smaller farmers in producer groups or productive partnerships unable to qualify for a commercial loan. c. Supporting the value chain development by providing capacity building of the PFIs related to new financial products in lending for value chain and productive partnership development activities, accessing suitability and effectiveness of new financial products, and on mitigation of the related risks. Providing Training to the PFIs on environmental and social safeguard issues. d. Providing Matching Grants to Sub-borrowers on terms and conditions set forth in the Matching Grant Program Manual to complement Sub-loans under Part A of this Component II. Component III: Institutional capacity building and project management. Strengthening the critical elements of the institutional framework and agricultural sector’s academic knowledge base required to support commercial activity by: a. Supporting curriculum modernization of the Tajikistan Agrarian University. b. Supporting expansion of the farmer training programs at the agricultural colleges through updating of curricula and teaching materials, in conjunction with curriculum modernization under Component III. (a) above; upgrading equipment and upgrading of facilities of the Agricultural Colleges. c. Improving market information systems for farmers and agribusinesses by: (i) supporting the establishment of a public-private partnership between the Tajikistan National Statistics Agency, other relevant state agencies and private service providers on facilitating delivery of commercial market information; and (ii) providing related technical assistance to the Tajikistan National Statistics Agency, other relevant state agencies and private service providers. d. Strengthening the MOA’s capacity for policy and regulatory reform in the field of agriculture by funding selected studies on critical issues concerning agricultural commercialization. e. Supporting the Agricultural Entrepreneurship Development Project Management Unit (“AED PMU”) and Ministry of Finance Project Management Unit (“MOF PMU”) for the effective implementation of the Project, through provision of goods, works, consultants’ services, audit, Training and Operating Costs, for purposes of Project management and implementation, including monitoring and evaluation. (ii) establishing and maintaining for the duration of the Project, the Grievance Redress Mechanism f. Building capacity of financial intermediaries acting in rural areas of the Recipient, including: (i) provision of Trailing to PFI’s on start-up business financing modalities, including risk identification and appraisal, and structuring of financing repayment, as well as on key environmental aspects associated with rural business financing; and (ii) provision of technical assistance to selected smaller microfinance institutions with good potential to grow and expand the opportunities for access to finance for small rural and agricultural businesses. Component IV: Entrepreneurship training and business development services to micro, small and medium size enterprises a. Provision of entrepreneurship Training and business development services to start-ups with more intensive support to youth led, women-led enterprises and enterprises led by, and/or employing, persons with disabilities. b. Carrying out innovative approaches to promote start-up growth and job creation, including opening an entrepreneurship hub in a selected location and development and implementation of business mentoring and training programs. Project management The Project is implemented by the Agricultural Entrepreneurship Development Project Management Unit (the “AED PMU”) and Ministry of Finance Project Management Unit ( the “MOF PMU”) within the scope of the Ministry of Agriculture and Ministry of Finance of the Republic of Tajikistan, respectively. Duration of the Project is July 30, 2014 to June 30, 2022. 9 2. PRESENTATION OF THE PROJECT FINANCIAL STATEMENTS Basis of preparation These project financial statements have been prepared in accordance with the International Public Sector Accounting Standard (the “IPSAS”) “Financial Reporting under the Cash Basis of Accounting” issued by the Public Sector Committee of the International Federation of Accountants, and incorporate the following principal accounting policies, which have been consistently followed in all material respects and comply with the World Bank’s Financial Management Sector Board’s “Guidelines: Annual Financial Reporting and Auditing for World Bank Financed Activities” (the “WB Guidelines”). Under the cash basis system income (or expenditure) is recognized when cash is received (or paid) irrespective of when goods or services are received or provided. The Project’s approved budget disclosed by categories of expenses is not publicly available and as such comparison of budget and actual amounts is not presented. These project financial statements consist of: • Summary of funds received and expenditures paid; • Summary of expenditures paid by project components; • Notes to the project financial statements, including short description of main statements of accounting policy and other descriptive notes. The reporting currency of these project financial statements is US dollars (the “USD”). 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Cash basis of accounting The project financial statements are prepared on a cash basis of accounting. The cash basis of accounting recognizes transactions and events only when cash (including cash equivalents) is received or paid by the Project. The project financial statements prepared under the cash basis provide readers with information about the sources of cash raised during the period, the purposes for which cash was used and the cash balances at the reporting date. The measurement focus in the project financial statements is balances of cash and changes therein. Foreign currency Operations in foreign currency initially are counted in functional currency by the official currency exchange rate settled by the National Bank of Tajikistan (the “NBT”) on a date of operation. Funds received are translated into USD at official exchange rate of Special Drawing Rights (the “SDR”) at the date of funds receipt. All payments made in local currency are translated into USD at the official exchange rate defined by NBT, at the date of transaction. Monetary assets and liabilities expressed in foreign currency are converted to functional currency at official exchange rate on a date settled by the NBT. All foreign exchange differences resulted from maturity or recounting are included in the summary of funds received and expenditures paid. Non-monetary items are valued according to their historic cost in foreign currency, which are recalculated on rates of the initial operation date. Cash and cash equivalents Cash and cash equivalents include cash on hand and due from banks, which can be converted to the corresponding amount of cash in the short term. Balances of advances paid to employees at the end of the period are also part of closing cash position. 10 Taxes Calculation and payment of personal income tax and social security contributions from income of local staff and consultants is made in accordance with the requirements and rates of the Tax Code of the Republic of Tajikistan and relevant legislation of the Republic of Tajikistan. Project expenses The expenses are recorded in the period when they were actually paid. Sources of funds The funds were provided by the World Bank to the Project by advance, replenishment of designated account or through direct payment to the end supplier of goods and/or services. 4. CASH AND CASH EQUIVALENTS Cash and cash equivalents as at December 31, 2018 comprise: Grant Currency December 31, 2018 AED PMU MOF PMU Total Designated account H964-TJ USD 283,613 129,722 413,335 Designated account D259-TJ USD - 99,965 99,965 Transit account H964-TJ TJS 212,877 16 212,893 Cash on hand H964-TJ TJS - 106 106 496,490 229,809 726,299 Cash and cash equivalents as at December 31, 2017 comprise: Grant Currency December 31, 2017 AED PMU MOF PMU Total Designated account H964-TJ USD 301,184 409,470 710,654 Transit account H964-TJ TJS - 2 2 Advances to employees H964-TJ TJS - 59 59 301,184 409,531 710,715 5. FUNDS RECEIVED The funds received are presented by the following financing methods: For the year ended December 31, 2018 AED PMU MOF PMU Total Grant No. H964-TJ Direct payments 499,262 - 499,262 Reimbursement of expenses 2,189,748 1,964,137 4,153,885 2,689,010 1,964,137 4,653,147 Grant No. D259-TJ Advances - 100,000 100,000 - 100,000 100,000 11 For the year ended December 31, 2017 AED PMU MOF PMU Total Grant No. H964-TJ Direct payments 257,982 - 257,982 Reimbursement of expenses 1,780,628 3,398,800 5,179,428 2,038,610 3,398,800 5,437,410 Cumulative AED PMU MOF PMU Total Grant No. H964-TJ Advances 600,000 400,000 1,100,000 Direct payments 757,244 - 757,243 Reimbursement of expenses 4,892,147 6,882,843 11,774,991 6,249,391 7,282,843 13,532,234 Grant No. D259-TJ Advances - 100,000 100,000 - 100,000 100,000 12 6. PROJECT EXPENSES The Project expenses by components are presented in the summary of expenditures paid by project components. The Project expenses on major categories are presented in the summary of funds received and expenditures paid. Breakdown of project expenses by categories and natures is presented as follows: Sub-loans under Component II. A For the year ended December 31, 2018 For the year ended December 31, 2017 AED PMU MOF PMU Total AED PMU MOF PMU Total CJSC MDO “Imon International” - 357,952 357,952 - 1,554,602 1,554,602 LLC MDO “Arvand” - 1,305,031 1,305,031 - 542,897 542,897 LLC MDO “Humo” - 351,836 351,836 - 1,038,443 1,038,443 - 2,014,819 2,014,819 - 3,135,942 3,135,942 Cumulative AED PMU MOF PMU Total CJSC MDO “Imon International” - 2,348,501 2,348,501 LLC MDO “Arvand” - 1,968,709 1,968,709 LLC MDO “Humo” - 1,494,137 1,494,137 LLC MDO “Dastras” - 319,934 319,934 OJSC “Bank Eskhata” - 87,615 87,615 LLC MDO “Muzaffariyat” - 70,885 70,885 CJSC “AccessBank Tajikistan” - 16,330 16,330 - 6,306,111 6,306,111 Commercialization Grants under Component II.B For the year ended December 31, 2018 For the year ended December 31, 2017 AED PMU MOF PMU Total AED PMU MOF PMU Total Grants 418,037 - 418,037 981,020 - 981,020 418,037 - 418,037 981,020 - 981,020 Cumulative AED PMU MOF PMU Total Grants 1,399,057 - 1,399,057 1,399,057 - 1,399,057 13 Goods, works, operating costs, training, non-consulting services, and consultants’ services For the year ended December 31, 2018 For the year ended December 31, 2017 AED PMU MOF PMU Total AED PMU MOF PMU Total Payroll and related taxes 303,895 113,764 417,659 283,642 114,475 398,117 Trainings 741,005 - 741,005 315,059 - 315,059 Consulting services 594,445 14,533 608,978 301,932 - 301,932 Goods - - - 5,275 - 5,275 Trainings for PMU - 84,690 84,690 10,746 30,560 41,306 Consultants' services 139,872 - 139,872 68,040 - 68,040 Stationery 11,548 1,310 12,858 41,880 2,632 44,512 Agribusiness forum 37,842 - 37,842 36,024 - 36,024 Business trips 40,329 1,602 41,931 18,282 3,666 21,948 Business demos 42,049 - 42,049 17,809 - 17,809 Translation services 40,257 - 40,257 4,463 - 4,463 Office renovation 1,048 - 1,048 2,891 - 2,891 Fuel expenses 14,082 5,202 19,284 12,498 4,336 16,834 Communication 7,002 1,866 8,868 9,031 2,160 11,191 Transportation - - - 14,525 5,398 19,923 Audit costs 8,236 - 8,236 11,882 - 11,882 Purchase of vehicle 21,967 - 21,967 - - - Vehicle maintenance 5,412 2,563 7,975 5,955 631 6,586 Utility 6,170 - 6,170 395 - 395 Non-consulting services - - - 11,452 - 11,452 Bank services 2,871 713 3,584 1,951 864 2,815 Advertising - - - 377 - 377 Other 22,364 2,204 24,568 39,293 4,529 43,822 2,040,394 228,447 2,268,841 1,213,402 169,251 1,382,653 14 Goods, works, operating costs, training, non-consulting services, and consultants’ services Cumulative AED PMU MOF PMU Total Payroll and related taxes 982,286 382,274 1,364,560 Trainings 1,104,023 29,290 1,133,313 Consulting services 1,045,863 14,533 1,060,396 Goods 304,476 45,885 350,361 Trainings for PMU 14,265 295,922 310,187 Consultants' services 208,750 37,226 245,976 Stationery 98,479 8,144 106,623 Agribusiness forum 73,866 - 73,866 Business trips 66,029 5,710 71,739 Business demos 59,858 - 59,858 Translation services 57,049 - 57,049 Office renovation 44,017 - 44,017 Fuel expenses 33,103 10,517 43,620 Communication 27,339 7,132 34,471 Transportation 22,444 9,850 32,294 Audit costs 28,901 - 28,901 Purchase of vehicle 21,967 - 21,967 Vehicle maintenance 13,578 3,512 17,090 Utility 13,077 - 13,077 Non-consulting services 12,333 - 12,333 Bank services 7,375 2,509 9,884 Advertising 3,294 453 3,747 Other 77,893 11,708 89,601 4,320,265 864,665 5,184,930 15 7. FINANCIAL POSITION Financial position as at December 31, 2018 comprise of: December 31, 2018 AED PMU MOF PMU Total ASSETS AND EXPENSES Cash and cash equivalents 496,490 229,809 726,299 Cumulative expenses 5,719,322 7,170,776 12,890,098 Foreign exchange losses/(gains) 39,823 (17,742) 22,081 TOTAL ASSETS AND EXPENSES 6,255,635 7,382,843 13,638,478 FINANCING Funds received 6,249,391 7,382,843 13,632,234 Other income 6,244 - 6,244 TOTAL FINANCING 6,255,635 7,382,843 13,638,478 Financial position as at December 31, 2017 comprise of: December 31, 2017 AED PMU MOF PMU Total ASSETS AND EXPENSES Cash and cash equivalents 301,184 409,531 710,715 Cumulative expenses 3,260,891 4,927,510 8,188,401 Foreign exchange losses/(gains) 534 (18,335) (17,801) TOTAL ASSETS AND EXPENSES 3,562,609 5,318,706 8,881,315 FINANCING Funds received 3,560,381 5,318,706 8,879,087 Other income 2,228 - 2,228 TOTAL FINANCING 3,562,609 5,318,706 8,881,315 16 8. WITHDRAWAL APPLICATIONS Withdrawal applications for the year ended December 31, 2018 comprise: Implementation Sources of Application Value date Advances Direct Goods, works, Total unit financing payments operating costs, training, non- consulting services and consultants’ services MOF H964-TJ 26 February 9, 2018 - - 207,882 207,882 27 April 20, 2018 - - 352,990 352,990 28 May 24, 2018 - - 160,043 160,043 29 July 12, 2018 - - 347,207 347,207 30 September 13, 2018 - - 379,487 379,487 31 October 5, 2018 - - 353,720 353,720 32 November 15, 2018 - - 162,808 162,808 - - 1,964,137 1,964,137 MOF D259-TJ 01 December 13, 2018 100,000 - - 100,000 100,000 - - 100,000 AED H964-TJ 19 January 16, 2018 - 31,854 - 31,854 21 January 16, 2018 - - 305,602 305,602 22 February 6, 2018 - - 254,665 254,665 23 April 20, 2018 - - 147,466 147,466 24 April 20, 2018 - 233,704 - 233,704 25 May 24, 2018 - - 187,020 187,020 26 June 20, 2018 - - 340,217 340,217 27 June 17, 2018 - - 233,525 233,525 28 September 20, 2018 - - 185,678 185,678 29 October 19, 2018 - 233,704 - 233,704 30 October 25, 2018 - - 154,466 154,466 31 November 26, 2018 - - 171,486 171,486 32 December 28, 2018 - - 209,623 209,623 - 499,262 2,189,748 2,689,010 100,000 499,262 4,153,885 4,753,147 17 Deleted withdrawal applications for the year ended December 31, 2018 comprise: Implementation Sources Application Value date Advances Direct Goods, works, Total unit of payments operating costs, financing training, non- consulting services and consultants’ services MOF D259-TJ 01 December 10, 2018 100,000 - - 100,000 100,000 - - 100,000 9. STATEMENT OF DESIGNATED ACCOUNT Statement of designated account for the year ended December 31, 2018 comprises: Designated accounts Grant No. H964-TJ Grant No. H964-TJ Grant No. H964-TJ Grant No. D259-TJ Total Implementation agency AED PMU AED PMU MOF PMU MOF PMU Bank CJSC “Tadjprombank” CJSC “The First Micro CJSC “Spitamen Bank” OJSC “Eskhata Bank” Finance Bank” Currency US Dollars US Dollars US Dollars US Dollars Bank account 202068402001284 20206840818210031476 20206840880800000257 20206840400020100469 Bank’s location 22 Rudaki Ave., 113 Shevchenko str., 4, Shamsi str, Dushanbe, 16 N. Karaboev str, Dushanbe, the Republic of Dushanbe, the Republic of the Republic of Tajikistan Dushanbe, the Republic of Tajikistan Tajikistan Tajikistan Balance as at January 1, 2018 257,195 43,989 409,470 - 710,654 Advances - - - 100,000 - Reimbursement of expenses - 2,189,748 1,964,137 - 4,153,885 Transfer between accounts - 107 - - 107 Total funds received - 2,189,855 1,964,137 100,000 4,153,992 Expenses paid - 186,835 19,437 35 206,272 Transferred to transit account 233,082 1,751,032 2,224,448 - 4,193,650 Transferred to cash desk - 12,364 - - 12,364 Foreign exchange rate loss 24,113 - - - 39,025 Balance as at December 31, 2018 - 283,613 129,722 99,965 413,335 18 10. UNDRAWN FUNDS For the year ended December 31, 2018 undrawn funds are presented as followsr: Grant Grant Credit No. H964-TJ No. D259-TJ No.6167-TJ in SDR in SDR In USD Approved financing amount 14,300,000 5,400,000 7,500,000 Disbursed during the period from July 30, 2014 to December 31, 2018 (AED PMU) 4,442,980 - - Disbursed during the period from July 30, 2014 to December 31, 2018 (MOF PMU) 5,228,451 72,248 - Undrawn financing amount 4,628,569 5,327,752 7,500,000 Financing received as at January 1, 2018 6,382,863 - - Disbursed in 2018 (AED PMU) 1,898,335 - - Disbursed in 2018 (MOF PMU) 1,390,232 72,248 - Financing received as at December 31, 2018 9,671,431 72,248 - 11. COMMITMENTS In the normal course of activities, the Project concludes agreements with suppliers of goods and services in accordance with the established budget and procurement plan. Contract value of obligations valid as at December 31, 2018 was as follows: Counterparty Contract No. Contract Contract Paid up to Remaining Currency value December 31, amount 2018 to be paid International Company “Nras” (Sweden) AED/PMU/QCBS/2015-01 USD 1,679,747 806,260 873,487 “Sarchashmai hayot” LLC AED/PMU/CQS/2015-07 USD 168,910 152,016 16,894 “Oriyon” LLC AED/PMU/CQS/2017-05 USD 173,929 106,868 67,061 “AL Mar Consulting” LLC AED/PMU/CQS/2017-03 USD 267,601 69,972 197,629 “Zarzamin” LLC AED/PMU/CQS/2017-04 USD 90,000 71,063 18,937 “Agro-service Consulting” LLC AED/PMU/CQS/2017-06 USD 34,996 12,653 22,343 “Oriyon” LLC AED/PMU/CQS/2018-01 USD 43,291 12,331 30,960 Gent University (Belgium) AED/PMU/CQS/2016-04 USD 277,654 27,765 249,889 “Zerkalo” LLC AED/PMU/CQS/2016-03 USD 101,289 99,469 1,820 12. LEGAL CASES There were no any legal claims related to the Project. 19 13. EVENTS AFTER THE REPORTING DATE During 2019 until the date of issue of these project financial statements the World Bank provided financing to the Project as follows: Financing source Application Implementation Financing method Date Total unit Grant No. H964-TJ 33 MOF Reimbursement of expenses January 14, 2019 287,898 34 MOF Reimbursement of expenses February 12, 2019 181,895 35 MOF Reimbursement of expenses April 11, 2019 372,476 33 AED Reimbursement of expenses January 25, 2019 159,812 34 AED Reimbursement of expenses February 27, 2019 228,945 35 AED Direct payment March 18, 2019 60,360 36 AED Direct payment April 16, 2019 219,098 37 AED Reimbursement of expenses April 16, 2019 133,881 As at the date of issue of the project financial statements no other significant events or transactions occurred, except for the events or transactions described above. 20