1 23 Uzbekistan, Tashkent, 100077, 2a, Chust street 2 Tel/Fax: (998-71) 262-50-70; 262-08-47; 262-08-41 2 E-mail: reception(@ciar.uz; reception(cpciargroup.net I www.ciar.uz I I (ENERGY EFFICIENCY FACILITY FOR INDUSTRIAL ENTERPRISES> PROJECT IDA Credit No.5241-UZ and IBRD Loan No.8826-UZ INDEPENDENT AUDi TORS REPORT ON THE SPECIAL PURPOSE FINANCIAL STATEMENTS FOR THE PERIOD FROM JANUARY 01, 2018 TO DECEMBER 31, 2018 I I I I I I I I I I Independent Member of GENEVA GROUP INTERNATIONAL I I ,)CJAR GROUP TSIAR-FINANS, LLC I I CONTENT IC N E T ...............................................................-......... ...................................................................... .......... 2 PEN EN AUDITO R'S S REPORT ............................................................................................................ 3 TATEMEN OF SOURCES AND USES OF FUNDS, IDA CREDIT NO.52I41RUZ........................................ 5 STATEMET OF SOU_RCES AND USES OF' FUNS B ---RD LOAN N .886U. .........................................7 TATMET OF USE O--F FUNDS BY ML ENNGaENCIES ONEXEDITURE'TYES AIRD T N O .5 2 1UZ ................................ .................................................................................... 10 TTEMENT OFUSS F FUNDS BYMLEETNG AGENCIES ON EXEDTU RE TYP ES, R D L A N N . 82 -UZ .. ...................... .............. ......................... ............................................................ 1 1 SPE-CA LPUJRPOSE_ BALANCE SHEE T, D AGREDI TN . 21-_UZ Z........................................................... 1 3 SPECIALPURPnOSE BALANCE - HE 1T3RD LOAN Nr-. , 6- U4Z ........................................................... 1 4 USD) ES A E ACCOUNT STATE NTOFPCU ................................................................................ 1 6 I Z E N T D ACCOUNT STATEMENT OF PCU ..--............................................................................17 USD DE)NTDACCOUNT STATEEN OF PUL JSC - 'A-SAKABAN- K) ..........................................18 US DS NAEDACCOUNT STATMN OF PIU JSC _ASKABNK .......................................... 19 US E NTDACCOUNT STATEMEN OF PIU JSCB HAKR NKn ....................................... 20 USD DESl.GNATED ACCOUNT STATEME,NT OF PIU JSCB (HARB%W%JANK))....................................... 21 USD DES3IGNATED ACCOUN-T STATEME7NT OF PIU JSCB ((uzprOMTOYA 77- > )........................... 22 USD__ DES NATED ACCOUN__TV TTMN OF PIU JSCB ((UZPROSRYA J)........................... 23 USDDESGNTED ACCOUN T STAEMN 'OF PIU NAT ONAL BAKOrUBKSAN .................... 24 USD DS GNTED ACCOUNT STATMN OF PUL JC NFBAK.............................................. 25 USD ES GATEDACCOUNT STATMN 'OF PIU JSC aA LLIANCE BANKn.......................26 SOE TH RA AL CHEDULE IDA CREDI TNO.5 241 -U Z ....................................................................... 27 NOESTOPRJE_CT SPECIAL. PURPOEFINANCIAL STATEMENTS ................................................... 28 1. D ESCRIPTIO N O F THE P ROJECT ...... .... ............... __ __.. ........... _ _ _ _ .. ........ .............. ............28 2 . A C C O U N T IN G P O LIC Y .............._ .... . . . . ....... . . . ....... ..... _ _.... ........................ ._ _... .. ..... _.3 0 I13 PRESENTED FINANCIAL STATEMENTS .. ... ..........._ _ _..... ........ ....... ....... ......... ............ ......... .... _.31 4. PROPERTY, PLANT AND EQUIPMENT ......... ... ....... .......... ........ ............. _ __._............32 5. CASH AND CASH EQUIVALENTS ..................... ........................... ......32 6. STATEMENT OF ExPENDITURE (SOIE) PROCEDURE .......... ......................... ...... ___._.... _.35 7. D IRECT PAYM ENTS PROCEDURE ......... ... ........ ............ ................... ....... _ __.. ..........35 8& S U B -L O A N S ...... ...... _ ... ...... .......... . . . . . . .. . . . . . . . .......... . . . . . . . . . . . . ....... .. . . .... _. 3 5 9. LEGAL STATUS, TAXES AND LEVIES ....... ... .......... ........... ......... ....... ...... ....... .............._......36 10. RECONCILIATION OF IDA CREDIT AND IBRD FINANCING.. ........ ......... ................ ..............___..36 11. EVENTS AFTER THE REPORTING PERIOD...... ... ..... .... ... .. .. ... ......... ........... ._ _ __..36 ITA I RGROUP I INDEPENDENT AUDITOR'S REPORT Addressee: Management of PCU under Ministry of Economy and Industry Iof the Republic of Uzbekistan We have audited the accompanying Special Purpose Financial Statements of ((Energy Efficiency Facility for Industrial Enterprises)) Project (hereinafter - Project) financed from credit proceeds of the International Development Association (hereinafter - Association, IDA) according to the Financing Agreement No.5241-UZ dated 18 July 2013 (hereinafter - Financing Agreement) and loan proceeds of the International Bank for Reconstruction and Development (hereinafter - IBRD) according to the Loan Agreement No.8826-UZ dated 17 May 2018 (hereinafter - Loan Agreement), for the period from 01 January 2018 to 31 December 2018. Special Purpose Financial Statements include Statements of Sources and Uses of Funds, Statements of Uses of Funds by Implementing Agencies on Expenditure Types, Special Purpose Balance Sheets, Designated Accounts Statements, SOE Withdrawal Schedules and Notes to Special Purpose Financial Statements. Special Purpose Financial Statements prepared by the management of Project Coordination Unit (hereinafter - PCU) based on the cash flow basis in accordance with International Public Sector Accounting Standards (hereinafter - IPSAS) issued by the International Public Sector Accounting Standards Board of the International Federation of Accountants. Management's Responsibility The management of Project is responsible for preparation and fair presentation of these special purpose financial statements based on the cash flow basis in accordance with IPSAS. This responsibility includes: designing, implementing and maintaining internal control relevant to the preparation and fair presentation of the special purpose financial statements that are free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances. Auditor's Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing (ISA). Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments the auditor considers internal control relevant to the preparation and fair presentation of the Project' financial statements 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. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by the Project's management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the above-stated Special Purpose Financial Statements give a true and fair view of the sources and uses of the ((Energy Efficiency Facility for Industrial Enterprises)> Project funds for the period from 01 January 2018 to 31 December 2018 and complies with conditions of the Financing Agreement, Loan Agreement and IPSAS. Moreover, (a) with respect to SOEs, adequate supporting documentation has been maintained to support claims to the Association for reimbursement of expenditures incurred; and (b) the expenditures comply with objectives stipulated in the Financing Agreement and Loan Agreement. R GROUP SIAR.-FINANS, LLC 4 In our opinion, the Designated Accounts Statements for the period from 01 January 2018 to 31 December 2018 give a true and fair view of the financial position of the Designated Accounts of the Project as at 31 December 2018 and of the cash flows for the for the year then ended and complies with the World Bank's guidelines. Emphasi c fMte Without expressing the modified Auditor's opinion we would like to pay attention to the Note 6 describing the fact that it was no Project financing on the reporting date under the SOE procedure (under the Financing Agreement dated 17th May 2018 on the IBRD Loan No.8826-UZ). BaisofAccounting We draw attention to Note 2 to the Special Purpose Financial Statements, which describes the basis of accounting. The Special Purpose Financial Statements are prepared to assist the Project to comply with the financial reporting provisions on the requirements conditions of the Financing Agreement and IPSAS. As a result, the Special Purpose Financial Statements may not be suitable for another purpose. Financial Audit reports and opinions, as ruled by the requirements set by the World Bank, shall be uploaded, published and publicly accessible on the World Bank's website. Auditors: TSIAR-FINANS LLC 2a, Chust Street, Tashkent, rT7QAe A 100077, Republic of Uzbekistan 27 June 2019 «Energy Efficiency Facility for Industrial Enterprises» Project, IDA Credit No.5241-UZ and IBRD Loan No.8826-UZ STATEMENT OF SOURCES AND USES OF FUNDS, IDA CREDIT No.5241-UZ for the period from January 01, 2018 to December 31, 2018 (USID) Actual Budget Budget Year to Date Cumulative Cumulative Cumulative Opening Cash Balance USD Designated Account of PIU JSCB «Asakabank» 4 000 000 USD Designated Account of PIU JSCB «Hamkorbank» 4 000 000 USD Designated Åccount of PIU JSCB 4 000 000 «Uzpromstroybank» USD Designated Account of PCU 41 547 UZS Designated Account of PCU 0 Total 12041 547 A dd: Sources of Funds PIU JSCB «Asakabank» Designated Account Replenishment 0 23 175 667 Reimbursement by IDA 0 3820113 Co-financing from the Bank 0 5749447 PIU JSCB «Hamkorbank» DesIgnated Account Replen1shment 0 25 799 531 Reimbursement by IDA 0 226415 Co-financing from the Bank 0 7629125 PIU JSCB «Uzpromstroybank» Designated Account Replenishment 1 798 433 33 000 000 Reimbursement by IDA 0 0 Co-financing from the Bank 3 182 205 9 982 597 Designated Account Replenishment 30 334 212 544 Direct payments 0 56341 Total 5010972 109651779 Foreign Exchange Difference 0 0 Total00 Less. Uses of Funds PIU JSCB «Asakabank» Sub-Loans 28 745 227 41 12504773 PIU JSCB «Hamkorbank» Sub-Loans 0 29655 071 41 250 000 11 594 929 PIU JSCB Uzpromstroybank» Sub-Loans 8980638 42982597 41 250000 (1 732597) Continued on next page "Statement of Sources and Uses of Funds, IDA Credit No.5241-UZ' to be read in conjunction with Notes (pages from 28 to 36) thereto forming an integral part of the Project special purpose financial statements «Energy Efficiency Facility for Industrial Enterprises» Project, IDA Credit No.5241-UZ and IBRD Loan No.8826-UZ 6 Beginning on the previous page Actual Budget Variance Year to Date Cumulative Cum ulative Cumulative Less: PCU 50 687 247 691 1 000 000 752 309 Goods 63 858 50 000; 49142 Consultant's services 32573 112 335 133000 20665 Capacity building in the sphere of energy efficiency 0 66 283 240 000 173 717 Capacity building in the management of Project 708 1 852 220000 218148 Improvement of statistical reporting capacity 0 0 180 000 180 000 Audit 8619 28469 40000 11 531 Operating Costs 8 724 37 894 137000 99106 Total 9031 325 101 630586 124750000 23119414 Closing Cash Balance USD Designated_Account of PIU JSCB «Asakabank» 4 000 000 .4 000 000 USD Designated Account of PIU JSCB «Hamkorbank» 4 000 000 4 000 000 USD Designated Account of PIU JSCB «Uzpromstroybank» .. USD Designated Account of PCU 21194 21194 UZS Designated Account of PCU 0 0 Total 8021 194 8021 194 Acting Director of PCU EEFIE under Ministry of PCU FM Specialist Economy of the Republic of Uzbekistan A. Alim_N. Rahmanova First Deputy Chairman of Board JSCB «Asakabank» PIU Manager S. Zakirov PIU FM Specialist Deputy Chairman JSCB «Uzpromstroybanik» PIU Manager_S Z. Azimov PIU FM Specialist Chairman of Boård PIU Manager JSCB «Hamkorbank» J. Hasanov PIU FM Specialist "Statement of Sources and Uses of Funds, IDA Credit No.5241-UZ" to be read in conjunction with Notes (pages from 28 to 36) thereto forming an integral part of the Project special purpose financial statements «Energy Efficiency Facility for Industrial Enterprises» Project, IDA Credit No.5241-UZ and IBRD Loan i No.8826-UZ STATEMENT OF SOURCES AND USES OF FUNDS, IBRD LOAN No.8826-UZ for the period from January 01, 2018 to December 31, 2018 (USD) Actual Budget Variance Year to Date Cumulative Cumulative Cumuative Opening Cash Balance USD Designated Account of PIU JSCB «Asakabank» 0 USD Designated Account of PIU JSCB «Hamkorbank» 0 USD Designated Accoun,of PIU JSCB I«Uzprornstroybank» USD Designated Account of PIU National Bank of US Designated Account of PIU JSCB «InFinBank» 0 USD Designated Account of PIU JSCB «Asia Alliance Bank» USD Designated Account of PCU 0 UZS Designated Account of PCU 0 Total 0 Add: Sources of Funds PIU JSCB «Asakabank» Designated Account Replenishment 0 0 Direct payments 0 0 Reimbursement by IDA 0 0 Co-financing from the Bank 0 0 PIU JSCB «Hamkorbank» Designated Account Replenishment 2 500 000 2 500 000 Direct payments 0 Reimbursement by IDA 0 0 Co-financing from the Bank 0 0 PIU JSCB «Uzpromstroybank» Designated Account Replenishment 5 000 000 5 000000 Direct payments 24 602 583 24 602 583 Reimbursement by IDA 0 0 Co-financing from the Bank 10397417 10397417 PIU National Bank of Uzbekistan Designated Account Replenishment 5 000 000 5 000 000 i Direct payments 0 0 Reimbursement by IDA 0 0 Co-financing from the Bank 0 0 PIU JSCB «[nFiniank» DesIgnated Account Replenshment 1 200 000 1 200000 DIrect payments 0 0 Reimbursement by IDA 0 0 Co-financing fom the Bank 100000 100000 Continued on next page "Statement of Sources and Uses of Funds, IBRD Loan No. 8826-UZ" to be read in conjunction with Notes (pages from 28 to 36) thereto forming an integral part of the Project special purpose financial statements «Energy Efficiency Facility for Industrial Enterprises» Project, IDA Credit No.5241-UZ and IBRD Loan No.8826-UZ Beginning on the previous page Actual Budget Variance Year to Date Cumulative Cumulative Cumulative PIU JSCB «Asia Alliance Bank» Designated Account Replenishment 1 200 000 1 200 000 Direct payments 0 0 Reimbursement by IDA 0 0 Co-financing from the Bank 0 0 PCU Designated Account Replenishment 0 0 Direct payments 0 0 Total 50 000 000 50 000 000 Foreign Exchange Difference 0 0 Total 0 0 Leoss: Uses of Funds PIU JSCB «Asakabank» Sub-Loans 0 66 666 667 66 666 667 PIU JSCB «Hamkorbank» Sub-Loans 33 333 333 33 333 333 PIU JSCB «Uzpromstroybank» Sub-Loans 35 000 000 35 000 000 66 666 667 31 666 667 PIU National Bank of Uzbekistan Sub-Loans 0 0 66666667 66666667 PIU JSCB «InFinBank» Sub-Loans 400000 400000 16000000 15600000 PIU JSCB «Asia Alliance Bank» Sub-Loans 0 0 16 000 000 16000000 PC 0 0 1 000 000 1 000000 Total 35 400 000 35 400 000 266 333 333 230 933 333 Closing Cash Balance USD Designated Account of PIU JSCB «Asakabank» 0 0 USD Designated Account of PIU JSCB «Hamkorbank» 2 500 000 2 500 000 USD Designated Account of PIU JSCB 5Uzpromstroybank» 5000000 USD Designated Account of PIU National Bank of 5 000 000 5 0 000 IUzbekistanj USD Designated Account of PIU JSCB «InFin Bank» 900 000 900 000 US Designated AcntrofPU JSB «Asia Aliance 200 000 1 200 000 Bank» USD Designated Account of PCU 0 0 UZS Designated Account of PCU 0 0 Total 14600000 14600000 Continued on next page "Statementof Sources and Uses ofFunds, IBRD Loan No.8826-UZ' to be read in conjunction with Notes (pages from 28 to 36) thereto forming an integral part of the Project special purpose financial statements (Energy Efficiency Facility for Industrial Enterprises)) Project, IDA Credit No.5241-UZ and IBRD Loan I No.8826-UZ I Beginning on the previous page Acting Director of PCU EEFIE under Ministry of PCU FM Specialist Economy of the Republic of Uzbekistan A. A. Ali _____ N. Rahmanova___ First Deputy Chairman of Board JSCB <> PlU Manager S. Zakirov PlU FM Specialist Deputy Chairman JSCB <) J. Hasanov PlU FM Specialist Deputy Chairman National Bank of Uzbekistan PlU Manager A. Khurambaev PlU FM Specialist Chairman of Board PIU Manager JSCB ( I. Abdukhahorov PlU FM Specialist I "Statement of Sources and Uses of Funds, IBRD Loan No. 8826-UZ' to be read in conjunction with Notes (pages from 28 to 36) thereto forming an integral part of the Project special purpose financial statements «Energy Efficiency Facility for Industrial Enterprises» Project, IDA Credit No.5241-UZ and IBRD Loan No.8826-UZ 10 STATEMENT OF USES OF FUNDS BY IMPLEMENTING AGENCIES ON EXPENDITURE TYPES, IDA CREDIT No.5241-UZ for the period from January 01, 2018 to December 31, 2018 (USD) Actual Budget Variance Year to Date Cumulative Cumulative Cumulative 1. PIU JSCB «Asakabank» 0 28745227 41 250 000 12504773 Sub-Loans 0 28745227 41 250000 12504773 2. PIU JSCB «Hamkorbank» 0 29 655071 41 250000 11 594929 Sub-Loans 0 29655071 41 250000 11 594929 3. PIU JSCB «Uzpromstroybank» 8 980 638 42 982 597 41 250 000 (1 732 597) Sub-Loans 8 980 638 42 982 597 41 250 000 (1 732 597) 4. PCU 50687 247 691 1 000000 752309 Development of EE Capacity Goods 63 858 50 000 49 142 Consultant's services 32573 112335 133000 20665 Capacity building in the sphere of energy efficiency 0 , 66283 240 000 173 717 Capacity building in the management of Project 708 1 852 220 000 218 148 Improvement of statistical reporting capacity 0 0 180000 180000 Audit 8619 28469 40000 11531 I....e....in g............. Operating Costs 8 724 37894 i 137000 99106 Total Project Expenditure 9 031 325 101 630 586 124 750 000 23 119 414 Acting Director of PCU EEFIE under Ministry of PCU FM Specialist Economy of the Republic of Uzbekistan A. Alin_ __ N. Rahmanova First Deputy Chairman of Board JSCB «Asakabank» PIU Manager S. Zakirov PIU FM Specialist Deputy Chairman JSCB «Uzpromstroybank» PIU Manager Z. Azimov PIU FM Specialist Chairman of Board PIU Manager JSCB «Hamkorbank» J. Hasanov PIU FM Specialist "Statement of Uses of Funds by Implementing Agencies on Expenditure Types, IDA Credit No. 5241-UZ' to be read in conjunction with Notes (pages from 28 to 36) thereto forming an integral part of the Project special purpose financial statements «Energy Efficiency Facility for Industrial Enterprises» Project, IDA Credit No.5241-UZ and IBRD Loan I No.8826-UZ STATEMENT OF USES OF FUNDS BY IMPLEMENTING AGENCIES ON EXPENDITURE TYPES, IBRD LOAN No.8826-UZ for the period from January 01, 2018 to December 31, 2018 (USD) {DActual Budget Variance Year to Date Cumulative Cumulative Cumulative 1. PIU JSCB «Asakabank» 0 0 66666667 66666667 Sub-Loans 0 0 66666667 66666667 2. PIU JSCB «Hamkorbank» 0 0 33333333 33333333 Sub-Loans 0 0 33333333 33333333 3. PIU JSCB «Uzpromstroybank» 35 000 000 35 000 000 66 666 667 31 666 667 Sub-Loans 35000000 35000000 66666667 31666667 4. PIU National Bank of Uzbekistan 0 0 66 666 667 66 666 667 Sub-Loans 0 0 66666667 66 666 667 3. PIU JSCB «InFinBank» 400 000 400 000 16 000 000 15 600 000 Sub-Loans 400 000 400 000 16000000 15600000 3. PIU JSCB «Asia Alliance Bank» 0 0 16 000 000 16 000 000 Sub-Loans 0 0 16000000 16000000 Total Project Expenditure 35400000 35400000 266333333 230933333 Acting Director of PCU EEFIE under Ministry of PCU FM Specialist Economy of the Republic of Uzbekistan A. Alimbbe2:z__ __ __ __ N Rahmanova_ First Deputy Chairman of Board JSCB «Asakabank» PIU Manager S. Zakirov PIU FM Specialist Deputy Chairman JSCB «Uzpromstroybank PIU Manager C Z. Azimov PIU FM Specialist Continued on next page "Statement of Uses of Funds by Implementing Agencies on Expenditure Types, IBRD Loan No. 8826-UZ' to be read in conjunction with Notes (pages from 28 to 36) thereto forming an integral part of the Project special purpose financial statements «Energy Efficiency Facility for Industrial Enterprises» Project, IDA Credit No.5241-UZ and IBRD Loan No.8826-UZ Beginning on the previous page Chairman of Board PIU Manager JSCB «Hamkorbank» J. Hasanov PIU FM Specialist Deputy Chairman National Bank of Uzbekistan PIU Manager A. Khurambaev PIU FM Specialist Chairman of Board PIU Manager JSCB «InFinBank» B. Burhanov PIU FM Specialist Chairman of Board PIU Manager JSCB «Asia Alliance Bank» L Abdukhahorov PIU FM Specialist "Statement of Uses of Funds by Implemnenting Agencies on Expenditure Types, IBRD Loan No. 8826-UZ" to be read in conjunction with Notes (pages from 28 to 36) thereto forming an integral part of the Project special purpose financial statemnents «Energy Efficiency Facility for Industrial Enterprises» Project, IDA Credit No.5241-UZ and IBRD Loan No.8826-UZ 13 SPECIAL PURPOSE BALANCE SHEET, IDA CREDIT No.5241-UZ AS OF DECEMBER 31, 2018 (USD) Assets 2018 2017 Cash and cash equivalents, including I 8021 194 12 041 547 - Designated Account _8019412 041 547 Total Uses of Funds, including: 101 630 586 92 599 260 - PC U 247691 197004 - JSCB Asakabank» 28745227 28 745 227 JSýCB «Hamkorbank » 29 655 071 29 655 071 JSCB «Uzpromstroybank» 42 982 597 34001959 Foreign exchange difference 70 0 Total assets . 109651 780 104640807 Funding IDA Credit to Participating Banks ineluding 81 975198 80176765 JSCB «Asakabank» 23175667 23175667 - JSCB «Hamkorbank» 25799531 25799531 -ptmstrybk» 33000000 31201567 IDA Credit to PCU 268 885 238 551 Co-financing by Participating Banks, including¯ 23_361 169 20 178 964 - JSCB «Asakabank» 5 749 447 5 749 447 - JSCB «-Harkorbank» 7629 125 7629 125 JSCB «Uzpromstroybank» 9982597 6800392 Financed by PB, reimbursed by IDA 4 046 528 4 046 528 - JSCB «Asakabank» ¯¯ 3820113 3820113 - JSCB « Hamkorbank» 226 4151 _ 226 415 - JSCB «Uzpromstroybank» 0 0 Total Fundinq. 109651 779 104 640 807 Acting Director of PCU EEFIE under Ministry of PCU FM Special[st Economy of the Republic of Uzbekistan A. Alimbs;v N. Rahmanova First Deputy Chairman of Board JSCB «Asakabank» PIU Manager S. Zakirov__ PIU FM Specialist Deputy Chairman JSCB «Uzpromstroybank» PIU Manager Z. Azimov PIU FM Specialist Chairman of Beard PIU Manager JSCB «Hamkorbank» J. Hasanov PIU FM Specialist "Special Purpose Balance Sheet, IDA Credit No.5241-UZ' to be read in conjunction with Notes (pages from 28 to 36) thereto forming an integral part of the Project special purpose financial statements «Energy Efficiency Facility for Industrial Enterprises» Project, IDA Credit No.5241-UZ and IBRD Loan No.8826-UZ ____ ____ ____14 SPECIAL PURPOSE BALANCE SHEET, IBRD LOAN No.8826-UZ AS OF DECEMBER 31, 2018 (USD) 2018 i 2017 Assets Cash and cash equivalents, including: 4 600 000 0 - Designated Account 14600000 0 Total Uses of Funds, including: 35 400 000 0 - PCU_00 - JSCB «Asakabank» 0 0 JSCB «Hamkorbank» 0 0 -JSCB «Uzpromstroybank» 35 000 000 0 - National Bank of Uzbekistan 0 0 JSCB «InFinBank» 400000 0 -JSCB «Asia Alliance Bank» 0 Foreign exchange difference 0l 0 Total assets 50 000 000 0 Funding BRD Loan to Participating Banks, including- 39502583 0 - JSCB «Asakabank» 0 0 - JSCB «Hamkorbank» 2500000 0 - JSCB «Uzpromstroybank» 29602583 0 - National Bank of Uzbekistan 5000000 0 - JSCB «lnFinBank» 1 200 000 0 - JSCB «Asia Alliance Bank» 1200000 IBRD Loan to PCU 0 0 Co-financing by Participating Banks, including: 10497417 0 - JSCB «Asakabank» 0 0 JSCB «Hamkorbank» 0 0 - JSCB «Uzpromstroybank» 10397417 ¯ 0 - National Bank of Uzbekistan 0 0 - JSCB «InFinBank» 100 000 0 - JSCB «Asia Alliance Bank» 0 0 Total Fundinq 50000000 0 Acting Director of PCU EEFIE under Ministry of PCU FM Specialst Economy of the Republic of Uzbekistan A. Alimba __-- N. Rahmanova_ _ _ _ First Deputy Chairman of Board JSCB «Asakabank» PIU Manager S. Zakirov PIU FM Specialist Continued on next page Special Purpose Balance Sheet, IBRD Loan No.8826-UZ' to be read in conjunction with Notes (pages from 28 to 36) thereto forming an integral part of the Project special purpose financial statements «Energy Efficiency Facility for Industrial Enterprises» Project, IDA Credit No.5241-UZ and IBRD Loan No.8826-UZ 15 Beginning on the previous page Deputy Chairman JSCB «Uzpromstroybank» PIU Manager - Z. Azimov PIU FM Specialist - Chairman of Board PIU Manager JSCB «Hamkorbank» J. Hasanov PIU FM Specialist Deputy Chairman National Bank of Uzbekistan PIU Manager A. Khurambaev PIU FM Specialist Chairman of Bod Plu Manager JSCB «InFinBank» B. Burhanov__ PIU FM Specialist . _....... Chairman of Board PIU Manager jr JSCB «Asia Alliance Bank» I. Abdukhahorov PIU FM Specialist "Special Purpose Balance Sheet, IBRD Loan No. 8826-UZ" to be read in conjuniction with Notes ( pages from 28 to 36) thereto forming an integral part of the Project special purpose financial statemnents () S. Zakirov PIU FM Specialist "USD Designated Account Statement of P/U JSCB < J. Hasanov PIU FM Specialist USD Designated Account Statement of P/U JSCB ((Hamkorbank) to be read in conjunction with Notes (pages from 28 to 36) thereto forming an integral part of the Project special purpose financial statements (Energy Efficiency Facility for Industrial Enterprises)) Project, IDA Credit No.5241-UZ and IBRD Loan No.8826-UZ 21 USD DESIGNATED ACCOUNT STATEMENT OF PIU JSCB ((HAMKORBANK)) for the period from January 01, 2018 to December 31, 2018 Account No. 2130 2840 7000 0008 3004 Depository Bank Central Bank of RUz Address 6 Islam Karimov Street, Tashkent, Republic of Uzbekistan, 100001 Loan No.8826-UZ Currency USD USD Opening Balance as at 01 January 2018 0 Cash inflow: IBRD financing 2 500 000 Total cash inflow: 2 500 000 Cash outflow: Lend Sub Loans 0 Total cash outflow: 0 Balance as at 31 December 2018 2500000 Chairman of Board PIU Manager JSCB ( J. Hasanov PIU FM Specialist USD Designated Account Statement of PIU JSCB (Hamkorbank) to be read in conjunction with Notes (pages from 28 to 36) thereto forming an integral part of the Project special purpose financial statements ((Energy Efficiency Facility for Industrial Enterprises) Project, IDA Credit No.5241-UZ and IBRD Loan No.8826-UZ 22 USD DESIGNATED ACCOUNT STATEMENT OF PIU JSCB ((UZPROMSTROYBANK)) for the period from January 01, 2018 to December 31, 2018 Account No. 2130 2840 2000 0044 0003 Depository Bank Central Bank of RUz Address 6 Islam Karimov Street, Tashkent, Republic of Uzbekistan, 100001 Credit No.5241-UZ Currency USD USD Opening Balance as at 01 January 2018 4000000 Cash inflow: IDA financing 1798433 Total cash inflow: 1 798433 Cash outflow: Lend Sub Loans 5 798 433 Total cash outflow: 5798433 Balance as at 31 December 2018 0 Deputy Chairman PIU Manager JSCB (> to be read in conjunction with Notes I (pages from 28 to 36) thereto forming an integral part of the Project special purpose financial statements (oEnergy Efficiency Facility for Industrial Enterprises) Project, IDA Credit No.5241-UZ and IBRD Loan No.8826-UZ 23 USD DESIGNATED ACCOUNT STATEMENT OF PIU JSCB ((UZPROMSTROYBANK)) for the period from January 01, 2018 to December 31, 2018 Account No. 2130 2840 4000 0044 0004 Depository Bank Central Bank of RUz Address 6 Islam Karimov Street, Tashkent, Republic of Uzbekistan, 100001 Loan No.8826-UZ Currency USD USD Opening Balance as at 01 January 2018 0 Cash inflow: IBRD financing 5000000 Total cash inflow: 5 000 000 Cash outflow: Lend Sub Loans 0 Total cash outflow: 0 Balance as at 31 December 2018 5000000 Deputy Chairman PlU Manager JSCB <> Z. Azimov PlU FM Specialist USD Designated Account Statement of P/U JSCB <> to be read in conjunction with Notes (pages from 28 to 36) thereto forming an integral part of the Project special purpose financial statements ((Energy Efficiency Facility for Industrial Enterprises)) Project, IDA Credit No.5241-UZ and IBRD Loan No.8826-UZ 24 USD DESIGNATED ACCOUNT STATEMENT OF PIU NATIONAL BANK OF UZBEKISTAN for the period from January 01, 2018 to December 31, 2018 Account No. 2130 2840 7000 0045 0002 Depository Bank Central Bank of RUz Address 6 Islam Karimov Street, Tashkent, Republic of Uzbekistan, 100001 Loan No.8826-UZ Currency USD USD Opening Balance as at 01 January 2018 0 Cash inflow: IBRD financing 5 000 000 Total cash inflow: 5 000 000 Cash outflow: Lend Sub Loans 0 Total cash outflow: 0 Balance as at 31 December 2018 5000000 I I Deputy Chairman PIU Manager National Bank of Uzbekistan A. Khurambaev PIU FM Specialist USD Designated Account Statement of PIU JSCB <> and JSCB <(Uzpromstroybank> (hereinafter - Participating Banks). To facilitate Project implementation IDA and each Participating Bank on 18 July 2013 have signed Financing Agreement on the Project implementation. Ministry of Finance on behalf of the Republic of Uzbekistan (hereinafter - MOF) and Participating Banks on 28 October 2013 have signed Financing Agreement on sub-lending arrangements for IDA funds for the Project implementation. Project financing plan !s stated below: USD IDA funds _100 000 000 Participating Banks funds 24 750_000 Total 124 760 000 COM Resolution No.168 "On supplementary measures facilitating implementation of the Energy Efficiency Facility for Industrial Enterprises Project with participation of IDA" dated 12 June 2013 (hereinafter - COM Resolution) identifies the following executive authorities responsible for the Project implementation (jointly referred as Implementing Agencies): * Uzbekistan Ministry of Economy (MOE) is responsible for the overall coordination of the Project and implementation of component <(Development of Energy Efficiency Capacity and Project management); * Participating Banks: JSCB (Asakabank), JSCB ((Hamkorbank)> and JSCB ) ) 33000000 2. Sub-loans JSCB (Hamkorbank>>. 33 000 000 3 Sub-loans JSCB 33 000 000 Total Part B 99 000 000 Total 100 000 000 According to the Financing Agreement, the initial date of Credit Close Date was 31st January 2018. Current notes are an integral part of the Project special purpose financial statements ((Energy Efficiency Facility for Industrial Enterprises)) Project, IDA Credit No.5241-UZ and IBRD Loan No.8826-UZ 30 30th January 2018 the Board of Governors of the World Bank has approved additional project financing by the loan of International Bank for Reconstruction and Development (hereinafter - IBRD) for total of USD200,OM with the repayment term of 25 years, including 5 years of grace period. According to the Loan Agreement, the Project implementation is covered by IBRD Loan and commercial banks participating the Project: JSCB <>, JSCB (>, National Bank of Uzbekistan, JSCB (>. For the purpose of implementing the Project on 24 May 2018 the IBRD and commercial banks have entered in to the Project Implementation Agreement. Ministry of Finance on behalf of the Republic of Uzbekistan and participating banks on 30 June 2018 have signed respective Sub-lending Agreements for some IBRD funds for the purpose of Project implementation. According to the Loan Agreement, the IBRD funds available for the Project implementation are intended for financing the following components: IDA loan's allocated amount Percentage of expenditure in USD financing (exclusive of taxes) Part A: Development of Energy Efficiency Capacity Goods, consultants' services, Training and Incremental Operating Costs Part 8: Credit Line to Participating Banks Sub-loans for Sub-projects 199000000 75% Total 200 000 000 Project financing plan is stated below: USD IBRD funds 200 000 000 Participating Banks funds 66 333 333 Total 266 333 333 Uzbekistan COM Resolution No.785 dtd 2 October 2018 "On additional arrangements facilitating implementation of the <) Project with IBRD assistance (Additional financing -2)" establishes the IBRD disbursement schedule and budget: Category IBRD loan's allocated amount mnUSD- Part A Development of Energy Efficiency Capacity 1 000 000 Part B: Credit Line to Participating Banks 199 000 000 JSCB ((Asakabank>) 50 000 000 JSCB 25 000 000 JSCB ((Uzpromstroybank> 50 000 000 National Bank of Uzbekistan 50 000 000 JSCB ((InFinBank>) 12000000 JSCB ( 12 000 000 Total 200 000 000 Since additional IBRD financing was approved for the project the Project Completion Date is extended through 31st January 2023. 2. Accounting policy These Special Purpose Financial Statements have been prepared, in accordance with requirements of International Public Sector Accounting Standards (hereinafter - IPSAS) issued by the International Public Sector Accounting Standards Board of the International Federation of Accountants, following the cash flow basis and compliant with the World Bank recommendations. Current notes are an integral part of the Project special purpose financial statements <, PIU JSCB >, PIU JSCB <), PIU National Bank of Uzbekistan, PIU JSCB and PIU JSCB ( of the Project was IDA Credit for total of USD 5,798,433, IBRD Loan for total of USD 24,602,583 and the funds of Participating Banks: under the IDA Credit - USD 3,182,205 and under the IBRD Loan - USD 10,497,417. This Statement includes data on the opening and closing cash balance for the reported period. Closing balance is the IDA financing for total of USD 8,021,194 and the IBRD financing for total of USD 14,600,000. 3.2. Statement of Uses of Funds by Implementing Agencies on Expenditure Types Statement of Uses of Funds by Implementing Agencies on Expenditure Types includes breakdown by Project expenditures for each Implementing Agency, category of expenditures, as well as Project budget and difference between actual expenditures and budgeted. 2018 Project performance shows that there are some overheads of the Project budget by JSCB > under IDA Credit. This extra spending is explained by the actual contribution by the Participating bank being above 20% of budgeted. 3.3. Special Purpose Balance Sheet Balance sheet is based on the cash method and includes following data: * Assets - "Cash and cash equivalents" and "Total Uses of Funds" by the Implementing Agencies; * Funding - cumulative Project financing from all sources by the Implementing Agencies. Item "Cash and cash equivalents" includes remaining cash from IDA-funded credit. Item "Total Uses of Funds" includes all expenditures related to the Project implementation and funded from all sources. 4. Property, Plant and Equipment Property, Plant and Equipment procured by the Project with the purposes effective achievement of Project objectives are entered to the Cost Records right after being received. For the purposes of this financial reporting all the PPE recorded at the fair value and are not being depreciated. PPE include assets purchased for the operational needs of PCU. Below is the list of Property, Plant and Equipment administered by the PCU: Open ing baa Revaluation Purchases Disposals Closing balance as at Computer equipment 6 301 6 301 Office equipment 491 42 533 Furniture 3945 172 4117 Total 10737 215 0 0 10952 5. Cash and cash equivalents For the purposes of Project implementation, the Project Implementing Agencies have opened number of accounts both in UZS and in USD. In line with the IDA requirements, the Participating Banks opened accounts in CBU. Current notes are an integral part of the Project special purpose financial statements ((Energy Efficiency Facility for Industrial Enterprises)) Project, IDA Credit No.5241-UZ and IBRD Loan No.8826-UZ 33 Project Implementing Agencies have opened the following accounts: > in Mekhnat branch of JSTIB "Ipoteka bank": Account description Account No USD Designated Account of PCU 2020 3840 9001 0102 1005 UZS Designated Account of PCU 2020 3000 6001 0102 1003 > in Central Bank of RUz by IDA Credit No.5241-UZ: Account description Account No USD Designated Account of PlU JSCB ((Asakabank) 2130 2840 7000 0087 3003 USD Designated Account of PIU JSCB ((Hakorbank>) 2130 2840 9000 0008 3005 USD Designated Account of PIU JSCB ((Uzpromstroybank>) 2130 2840 2000 0044 0003 > in Central Bank of RUz by IBRD Loan No.8826-UZ: Account description Account No USD Designated Account of PIU JSCB ((Asakabank)> 2130 2840 9000 0087 3004 USD Designated Account of PIU JSCB ((Hamkorbank> 2130 2840 7000 0008 3004 USD Designated Account of PIU JSCB <(Uzpromstroybank) 2130 2840 4000 0044 0004 USD Designated Account of PIU National Bank of Uzbekistan 2130 2840 7000 0045 0002 USD Designated Account of PlU JSCB InFinBank» 2130 2840 1000 0104 1002 USD Designated Account of PIU JSCB ((Asia Alliance_Bank 2130 2840 1000 0109 5002 Furthermore, there are co-financing accounts of the Participating Banks. According to the Financing Agreement and Loan Agreement, Participating Banks on the account of own funds are responsible for financing 20% and 25% respectively of the total sub-loans. Below is the servicing purpose of the Project accounts. 5.1. Designated accounts of PCU PCU maintains two Designated accounts for financing eligible expenditures: in USD and UZS. Both accounts are opened in the Mekhnat Branch of the JSIB Ipoteka bank in Tashkent City. From 01 January to 31 December 2018, these Designated accounts were used for staff payroll, purchase of stationery, audit and other Project operation expenditures. During reported period the USD Designated account received IDA financing for total of USD 30,334. USD 50,687 was spent to cover the PCU expenditures. 5.2. Designated Accounts of the Participating Banks Project maintains nine USD Designated accounts of the Participating Banks opened in CBU: three accounts - by IDA Credit No.5241-UZ and six ones - by IBRD Loan No.8826-UZ. From 01 January to 31 December 2018, these Designated accounts were used for disbursement of sub-loans for implementation of the Project component (. During the reported period the USD Designated accounts of the Participating Banks received IDA financing for total of USD 1,798,433 and IBRD financing for total of USD 14,900,000. Funds received were used for sub- loan disbursement to borrowers. Sub-loans for total USD 5,798,433 against IDA credit were disbursed during the reported period. There was no sub-lending on the account of IBRD loan funds during the reporting period. 5.3. Co-financing accounts of the Participating Banks Co-financing accounts are owned by the Participating Banks and used for disbursement of sub-loans for implementation of the Project component ((B>) (>. Current notes are an integral part of the Project special purpose financial statements «Energy Efficiency Facility for Industrial Enterprises» Project, IDA Credit No.5241-UZ and IBRD Loan No.8826-UZ 34 During the reported period the Participating Banks have disbursed co-financed sub-loans under IDA Credit for total of USD 3,182,205 and under IBRD Loan for total of USD 10,497,417. Balances of the Project's bank accounts are summarized in the following table: • IDA Credit No.5241-UZ USD Balance as at January 01, 2018 USD Designated Account of PCU .... 41 547 UZS Designated Account of PCU USD Designated Account of PCU JSCB «Asakabank» 4 000 000 USD Desgated Accoun of PIU ...CB «Hamkorbank» 4 000 000 USD Designated Account of PIU JSCB «Uzpromstroybank» 4 000 000 TOT AL __12 01 547 Balance as at December 1 2018 USD Designated Account of PCU 21194 UZS Designated Account o.PU USD Designated Account of PIU JSCB «Asakabank» 4 000 000 USD Designated Account of PIU JSCB «Hamkorbank» 4 000 000 USD Designated Account of PIU JSCB «Uzpornstroybank» TOTAL 8021 194 • BRD Loan No.8826-UZ USD Balance as at January 01, 2018 USD Designated Account of PCU UZS Designated Account of PCU USD Designated Account of PIU JSCB «Asakabank» USD Designated Account of PU JSCB «Hamkorbank» USD Designated Account of PIU JSCB «Uzpromstroybank» USD Designated Account of PIU National Bank of Uzbekistan USD Designated Account of PIU JSCB «lnFinBank» USD Designated Account of PIU JSCB «Asia Alliance Bank» TOTAL Balance as at December 31, 2018 USD Designated Account of PCU É UZS Designated Account of PCU USD Designated Account of PIU JSCB «Asakabank» USD Designated Account of PIU JSCB «Hamkorbank» 2 500 000 USD Designated Account of PIU JSCB «Uzpromstroybank» 5 000 000 USD Designated Account of PIU National Bank of Uzbekistan 5 000 000 USD Designated Account of PIU JSCB «InFinBank» g 00 USD Designated Account of PIU JSCB «Asia Alliance Bank» 1 200 000 TOTAL 14 600 000 Current notes are an integral part of the Project special purpose financial statements ((Energy Efficiency Facility for Industrial Enterprises)) Project, IDA Credit No.5241-UZ and IBRD Loan No.8826-UZ 35 6. Statement of Expenditure (SOE) procedure Statement of Expenditure (SOE) procedure is used by the Project to replenish funds on the Designated Accounts, in line with the Financing Agreement, Loan Agreement and Project Operational Manual. Below is the table with cumulative data on netted-off and reimbursed expenditures according to the SOE: IDA Credit No.5241-UZ Total SOE Expenditures 4 625 884 Net off on the account of earlier received advance payments (2 797 117) Total: 1 828 767 Reimbursement in Designated Account 1 828 767 Total: 1 828767 Difference 0 * IBRD Loan No. 8826-UZ No SOE reimbursements claimed by the Project in 2018 under IBRD Loan No.8826-UZ. 7. Direct payments procedure The List of Direct payments made by the Project for the reporting period is summarized below: * IDA Credit No. 524 1-UZ No direct payment under the IDA Credit No.5241-UZ during the reporting period. * IBRD Loan No. 8826-UZ WA Category Participating Bank Sub Borrower Supplier Payment Currency Amount JSCB Tashkent Pipe Plant "Xinjiang J[nboer 6 Sub-Loans Industrial Trade USD 24602583 ) ( for the period from 01 January to 31 December 2018 the Project has lent sub-loans for total of USD 8,980,638 including IDA-funded part: USD 5,798,433 and by the Participating Banks: USD 3,182,205. Participating Bank / Disbursed sub-loans on the account of: B o r w rA im of S ub-loan.................. .......................... Borrower __IDA Participating Banks JSCB ((Uzpromstroybank)) Procurement of the industrial fa.s 204 800 51 200 Procurement of the industrial fans 212 000 53 000 Procurement of control and measuring devices 741 041 185 260 Ammofos-Maxam SC- - -----.................7 Procurement of high performance mixer 319 966 79 991 Procurement of the pump equipment 43 200 10 800 Procurement of the cooling tower 335 960 83 990 Current notes are an integral part of the Project special purpose financial statements ((Energy Efficiency Facility for Industrial Enterprises)) Project, IDA Credit No.5241-UZ and IBRD Loan No.8826-UZ 36 Procurement of the pump equipment 39 840 9 960 Procurement of automated system of supply of phosphorous flour Procurement of belt vacuum filter 1 054 403 1 860 597 Design, production, testing, construction and Cascade Andijan-2 HPS installation works, completion and commissioning 2 675 224 804 406 into the operation the power equipment* Total by JSCB RUzpromstroybanks 5798433 13182205 Total by Participating Banks 5798433 3182205 IBRD Loan No. 8826-UZ In order to facilitate implementation of the Project component () (Credit Line to Participating Banks)) for the period from 01 January to 31 December 2018 the Project has lent sub-loans for total of USD 35,400,000 including IBRD-funded part: USD 24,902,583 and by the Participating Banks: USD 10,497,417. Participating Bank/ Disbursed sub-loans on the account of:. BorrowerAim of Sub-loan IBRD Participating Banks JSCB HUzpromstroybanka Tashkent Pine Plant named Procurement of the equipment for producing hot- after V.L KHalperin 1 rolled metal2 Total by JSCB ((Uzpromstroybank>> 24602583 10397417 JSCB ((InFinBank)) Mega Paper Plus LLC Procurement of the packing equipment 300 000 100 000 Total by JSCB ((InFinBank)) 300000 100000 Total by Participating Banks 24902583 10497417 Note: *under these credit the financing proportion by the participating banks is above 20% (under IDA Credit) and 25% (under /BRD Loan). 9. Legal Status, Taxes and Levies PCU under Uzbekistan Ministry of Economy and PIU under Participating Banks are not legal entities and, subsequently are not business tax payers, paying only social and pension fees and contributions and also income tax for individuals contracted by the PCU. PIU under Participating Banks employ full-time bank staff and there is no cost of payroll budgeted in the Project for them. 10. Reconciliation of IDA Credit and IBRD financing Reconciliation between Client Connection data and Project data as of December 31, 2018 is stated below: Client Connection Project Difference IDA funds 86290610 86290610 0 IlBRD funds 39502583 39502583 0 11. Events after the reporting period Based on the Uzbekistan Presidential Decree No.Yn1-5621 dtd 10 January 2019 "On the arrangements facilitating fundamental improvement of the implementation framework of the National Development Policy>> - Ministry of Economy of the Republic of Uzbekistan is re-organaized and titled Ministry of Economy and Industry of the Republic of Uzbekistan. Current notes are an integral part of the Project special purpose financial statements