Export Development Project Credit No 5879-MN Financial Statements as of December 31, 2017 Ulaanbaatar 2018 ce fi cr llit' i , cl ) fly D ate:............ INDEPENDENT AUDITOR'S REPORT To: PIU Coordinator D.Batinunkh Export Development Project Credit N: 5879-MN We have audited the Project Financial Statements comprising the Balance Sheet, the Statement of Project Source and Uses of Funds by project activities, the Disbursement Report and the Designated Account Statement of Export Development Project for the period from August 26, 2016 to December 31, 2017. The management of Export Development Project is to prepare Project Financial Statements on the cash receipts and payments basis in conformity with the International Public Sector Accounting Standards (IPSAS). On this basis, cash receipts are recognized when received and cash expenditures are recognized when paid rather than when incurred. Our responsibility is to express an opinion thereon based on our audit. We conducted our audit in accordance with the International Standards on Auditing issued by the International Auditing and Assurance Standards Board of the International Federation of Accountants. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the annual financial reports are free of material misstatement. An audit includes examining on test basis, evidence supporting the amounts and disclosures in the annual financial reports. An audit also includes assessing the accounting principles used and significant estimates made by management as well as evaluating the overall statement presentation. We believe our audit provides a reasonable basis for our opinion. In our opinion, the Project Financial Statements have been prepared in accordance with the International Public Sector Accounting Standard issued by the Public Sector Committee of the Federation of Accountants, presented fairly the cash receipts and payments of the project for the period from August 26, 2016 to December 31, 2017 and furthermore in all material respects, expenditures have applied to the purpose intended in the Financing Agreement, Credit No: 5779- mN. "Niislel-Audit" LLC Ulaanbaatar city, Sukhbaatar district, Baga toiruu-44 Phono/Fax: 31-89-18, 70120095 E-mail: info@niislelaudit.nn The Goveruinent of Mongolia The International Development Association Credit N.: 5879-MN Export Development Project BALANCE SHEET For the period from August 26, 2016 to December 31, 2017 (in USD) Notes Dec 31, 2017 Aug 26, 2016 ASSETS: Cash and cash equivalents 3 1,063,244.42 - Designated account 1,001,117.94 - Sub-Accounts 62,126.48 - Cumulative Project Expenditures 6 374,599.27 - Goods 25,637.00 - Consultant services 120,575.98 - Training and Workshop 139,914.55 - Matching Grants 52,170.64 - Incremental Operating Costs 36,301.10 - TOTAL ASSETS 1,437,843.69 - FUNDS: IDA's fund 4 1,424,549.72 Earned Interest 5 13,293.97 TOTAL FUNDS 1,437,843.69 Prepared by: Approved by: B.UNDARMAA D.BATMUNKH Financial Management Specialist Project Coordinator ti~ LCt 0 D ate:............ IN DEPENDENT AUDITOR'S REPORT To: To: PIU Coordinator D.Batmunkh Export Development Project Credit X2: 5879-MN We have audited the accompanying Statement of Project Sources and Uses of Funds of Export Development Project submitted to the World Bank for the period from August 26, 2016 to December 31, 2017 in support of credit withdrawals under the Financing Agreement, Credit No: 5779-MN. We conducted our audit in accordance with generally accepted auditing standards that included examination, on a test basis, of evidence supporting the amounts and disclosures in the Statement of Sources and Uses of Funds. An audit also includes assessing the accounting principles used and significant estimates made by management as well as evaluating the overall statement presentation. We believe our audit provides a reasonable basis for our opinion. In our opinion, the Statement of Sources and Uses of Funds submitted together with the internal controls and procedures involved in their preparation can be relied upon to support the application for credit withdrawals. "Niislel-Audit" LLC Ulaanbaatar city, Sukhbaatar district, Baga toiruu-44 Phone/Fax: 31-89-18, 70120095 E-mail: info@nlislelaudit.mn The Government of Mongolia The International Development Association Credit N2: 5879-MN Export Development Project STATEMENT OF PROJECT SOURCES AND USES OF FUNDS For the period from August 26, 2016 to December 31, 2017 (in USD) Notes Cumulative to Aug 26, 2016 Dec 31, 2017 SOURCES OF FUNDS: IDA's fund 4 1,424,549.72 Earned Interest 5 13,293.97 TOTAL SOURCES OF FUNDS 1,437,843.69 USES OF FUNDS: Goods 6 25,637.00 Consultant services 6 120,575.98 Training and Workshop 6 139,914.55 Matching Grants 6 52,170.64 Incremental Operating Costs 6 36,301.10 TOTAL USES OF FUNDS 374,599.27 SURPLUS OF FUNDS OVER USES 1,063,244.42 Prepared by: Approved by: B.UNDARMAA D.BATMUNKH Financial Management Specialist Project Coordinator о о о \° � о о о о о о �� И о о М И сЧ �О о0 .-н о `� .-� .-✓ .-� � н Q! h � � � М N О N N i%�� � �О �О h h О �Л Q� � �. О t� М t� � р [ [^ О И �t 00 И �.:� � r h � � О М h .-+ .-� ч-, М h М О r bA , , , , � , а1 ,-г г. с с и �О О � О f � � �' О 'сУ 00 � � L О � �tJ О� � г°'. � � �о и М tc' о с, с ° � s � � � � г" � v � оА � , , , � � , � ' � ^гТ� ..{`�' О w \ с и � � о;С с с о � i° Q\ 4. [-� С„) v cv а� �+ Е� L -� '-' д, ,, t�? д � сс аА �, � �� W й 'N й ¢ р'а s... � � р С' G, Е-г N � N N , , N Г� и � И U .. � bA а N N [� N д: LG И ы-� с '� М а с'CS 'с М г� [`�� h о о "" р s. .t� • с,� �д' �t об .-. t� �О сТ � U .д ; А Е-� � � И `n° �о и 'л "- „м� •� W � � . h � � � � й й О у +� � ,� ,а � �, А � � и �а о , , а � °о � а00�, �� Z °�"' о ��' г�i cv о о а м и ° aci ,�i �-+ �"� � � с v N N й ° ~ � й � � � ��'' V и r �t о w, � � � rв� о о � `° `° м `v �� �д н о о� °' А rr t„y �-' с � `� с✓ � �п � л о а � � � а w +-� и , , , � , , � о о с д�>� � b r r ,�, > � � д Q � °о Mw � � С� U � t/: Qг С�} N N п1 � � � � � д�> � с � +� р �.+ о о О � С/) Е"+ .ь.�.+ W ГS., 4." у `а С? � � G Q О О О r"^� +--� � � р � с О О О О о о И '=3 � L� О С7 '�t и О� �О О у� � а� Н'i м м о� ос о � ^" `" � Е-{ W°^ , о а � � �� о°°о й о � �s �� а '" `,' а �с �s W �'-' � F+ о �, и � �s � � � Н `� v °J ссо � гf� � с � � � W '� � о � у Gy ьч у �, � �� С р � � � Z ,а Е"' .д ',=, о оЛ � +-`'• � и 3� �' о � n' Q, W ол а. � v > Z р � w aoi ° a�i � ч° °' Е" � v В� v °� � и.с и-' о � �С i Q �х,� а-д � L о.�� о� W Н � � W � ¢ [�; � W U а � о гр. '� Q и � �' С р а�Ч,� й � и(�, С с с � г� W � С" � Z сб о .О ,.��, -L� О� ��'' и `', � ��.. � � с О � 'L; � � н-i U О Е-� oU W•°--�' � о W � Н V � ал •� U а � � . � v ` п3 оЛ '.=. W wa ;�с� �,;� ���oQ �:� �.,° >а, oQ �р.о'с.•��оа.х:� � �оа Ctx � � WгnUwйWW Е� � °ай О r, N �,j N N N М �- ^ ^ r, "MISIA11i AUWT" Cortified audit, appraisal and accountinq conSUItatICY C0111parly Date: ...... INDEPENDENTAUDITOR'S REPORT To: To: PIU Coordinator D.Batinunkh Export Development Project Credit N2: 5879-MN We have audited the accompanying Statement of Expenditures of Export Development Project Submitted to the World Bank for the period frorn August 26, 2016 to December 31, 2017 in support of cred it withdrawals Linder the Financing Agreement, Credit No: 5779-MN. We conducted OUr audit in accordance with generally accepted auditing standards that included examination, oil a test basis, of evidence supporting the amounts and disclosures in tile Statement of Expenditures. An audit also includes assessing the accounting principles used and significant estimates made by management as well as evaluating tile overall staternent presentation. We believe out- audit provides a reasonable basis for our opinion. In Our opinion, the Statement of Expenditures submitted together with the internal controls and procedures involved in their preparation can be relied upon to Support tile application for credit withdrawals. "Niislel-ALidit" LLC Ulaaribaatar city, Sukhbaatar district, Raga toinju-44 Phonelrax: 31-89-18, 70120095 E-mail: info@niislelaudit.mn The Government of Mongolia The International Development Association Credit M: 5879-MN Export Development Project - STATEMENT OF EXPENDITURES (IDA Withdrawals) For the period from August 26, 2016 to December 31, 2017 (in USD) WA Application Claimed Credited Amount Amount Difference numbers type date date claimed credited WA-I Advance 5-Mar-17 16-Mar-17 1,200,000.00 1,200,000.00 - WA-2 Replenishment 19-May-17 2-Jun-17 64,944.32 63,404.31 1,540.01 WA-3 Replenishment 7-Jun-17 21-Jun-17 16,053.36 17,593.37 (1,540.01) WA-4 Replenishment 2-Aug-17 25-Aug-17 10,812.98 10,762.98 50.00 WA-5 Replenishment 3-Aug-17 25-Aug-17 8,771.41 8,520.88 250.53 WA-6 Replenishment I 1-Sep-17 20-Sep-17 36,742.54 36,742.54 - WA-7 Replenishment 5-Oct-17 13-Nov-17 46,551.86 46,551.86 - WA-8 Replenishment 5-Nov-17 8-Dec-17 40,973.78 40,973.78 - WA-9 Replenishment 7-Dec-17 5-Feb-18 57,904.06 59,580.60 (1676.54) WA-10 Replenishment 21-Feb-18 7-Mar-18 91,844.96 91,844.96 - Total 1,574,599.27 1,575,975.28 (1,376.01) Prepared by: Approved by: B.UNDARMAA D.BATMUNKH Financial Management Specialist Project Coordinator The Government of Mongolia The International Development Association Credit N: 5879-MN Export Development Project DETAILED STATEMENT OF EXPENDITURES (IDA Withdrawals) For the period from August 26, 2016 to December 31, 2017 (in USD) CLAIMED AMOUNT CREDITED AMOUNT CATEGORIES CATEGORIES WA Difference numbers Training Incremental component 1.1 component 1.2 component 2.1 component 2.2 Component 3 Goods Consultant and Matching operating Total (Category #1) (Category #2) (Category #3) (Category #4) (Category #5) Total services Workshop Grants costs WA-01 ADVANCE 1,200,000.00 ADVANCE 1,200,000.00 - WA-02 19,716.87 1,00000 38,399 14 5828.31 64.944.32 19,71687 - 1,000.00 36,859 13 5,828.31 63,40431 1,540.01 WA-03 2.558.81 5,400.00 5,157 59 2936.96 16,05336 5,320.48 - 1,294.21 6.009.48 4,96920 17,593.37 (1.540.01) _WA-04 - 5,60000 19003252 3309.46 10812,98 2,06320 - 612.55 4,406.53 3,680,70 10,762.98 *5000 WA-05 - 5,200.00 2,291,84 1.279.57 8,771.41 1,500.00 - 2,242.95 4,047.53 730.40 8,52088 **250.53 WA-06 - 28,824.76 3,914.24 - 4.003.54 36,742.54 3,430.15- 3,437.18 5.793.34 24,081.87 36,742.54 - WA-07 - 14,231.61 24,907.60 4,939.27 2,473.38 46,551.86 16,167.26 - 4,199.56 11,068.30 15,116.74 46,551.86 - WA-08 - 17,116.49 18,068.70 - 5,788.59 40,973.78 4,020.00 - 9,998.74 5,151.00 21,804.04 40,973.78 - WA-09 3,361.32 19,95878 13,141.98 18,699.22 2,742.76 57,904.06 1,962.48 - 5,452.95 27,487.60 24,677.57 59,580.60 ***(1676.54) WA-10 - 23,244.34 32,129.94 28,532.15 7,938.53 91,844.96 7,282.50 29,483.66 36,704.02 18,374.78 91,844.96 - LTOTAL 25,637.00 120,575.98 139,914.55 52,170.64 36,301.10 1,574,599.27 61,462.94 - 57,721.80 137,526.93 119,263.61 1,575,975.28 (1,376.01) * The expenditure of USD50.00 is bank charge (2 times, for each USD25.00) of the World Bank Replenishment in WAO4. This amount was revised by the end of the year. ** The expenditure of USD250.53 is office rent fee of the PIU and the sub-category in accounting system was not selected, which was claimed but not credited. This amount was revised by the end of the year. The expenditure of USDI,676.54 are a) USD1,857.94 was maternity/pregnancy allowance, returned from the Social Insurance General Office, refunded but not credited; b) USD156.39 is visa fee of the abroad training, claimed amount but not credited c) USD20.00 is bank charge of World Bank Replenishment in WAO9. These amounts were reclaimed by the end of the year. Prepared by: Approved by: B.UNDARMAA D.BATMUNKH Financial Management Specialist Project Coordinator 'NI SLEL` 2M Af U'" LLC Date:........ .. INDEPENDENT AUDITOR'S REPORT To: To: PIU Coordinator D.Batmunkh Export Development Project Credit XM: 5879-MN We have audited the accompanying Designated Account Statement of Export Development Project submitted to the World Bank for the period from August 26, 2016 to December 31, 2017 in support of credit withdrawals under the Financing Agreement, Credit No: 5779-MN. We conducted our audit in accordance with generally accepted auditing standards that included examination, on a test basis, of evidence supporting the amounts and disclosures in the Designated Account Statement. An audit also includes assessing the accounting principles used and significant estimates made by management as well as evaluating the overall statement presentation. We believe our audit provides a reasonable basis for our opinion. In our opinion, the Designated Account Statement submitted together with the internal controls and procedures involved in their preparation can be relied upon to support the application for credit withdrawals. "Niislel-Audit" LLC Ulaanbaatar city, Sukhbaatar district, Baga toiruu-44 Phone/Fax: 31-89-18, 70120095 E-mail: info@niislelaudit, mn The Government of Mongolia The International Development Association Credit Nq: 5879-MN Export Development P'roject DESIGNATED ACCOUNT STATEMENT For the period from August 26, 2016 to December 31, 2017 (in USD) Notes Dec 31, 2017 Aug 26, 2016 PART A - Account transactions Beginning balance - - Add 1,437,843.69 - IDA Advance 4 1,200,000.00 - Replenishment 224,549.72 - Earned Interest 5 13,293.97 - Deduct 6 374,599.27 - Goods 25,637.00 - Consultant services 120,575.98 - Training and Workshop 139,914.55 - Matching Grants 52,170.64 - Incremental Operating Costs 36,301.10 - Ending balance 1,063,244.42 - PART B - Account reconciliations Amount advanced by the IDA 4 1,200,000.00 Ending balance 1,001,117.94 Add 213,552.04 Sub-accounts (USD and MNT) ending balance 3 62,126.48 Amount withdrawn but not claimed yet 4 91,844.96 Goodv - - Consultant services 23,244.34 - Training and Workshop 32,129.94 - Matching Grants 28,532.15 - Incremental Operating Costs 7,938.53 - Claimed in previous WA not yet credited 4 59,580.60 - Deduct 13,293.97 - Earned Interest 5 13,293.97 - Total advance to Designated account for 1,201,376.01 - Difference 1,376.01 - Prepared by: Approved by: B.UNDAR AA D.BATMUNKH Financial Management Specialist Project Coordinator "N I ISLEIL A[Ji)T LLC CertifJidt, apisa an(I zici qtn uo"ltac comparly Date:............ INDEPENDENT AUDITOR'S REPORT To: To: PIU Coordinator D.Batmunkh Export Development Project Credit M: 5879-MN We have audited the accompanying Sub-Accounts Statement of Export Development Project submitted to the World Bank for the period from August 26, 2016 to December 31, 2017 in support of credit withdrawals under the Financing Agreement, Credit No: 5779-MN. We conducted our audit in accordance with generally accepted auditing standards that included examination, on a test basis, of evidence supporting the amounts and disclosures in the Sub- Accounts Statement. An audit also includes assessing the accounting principles used and significant estimates made by management as well as evaluating the overall statement presentation. We believe our audit provides a reasonable basis for our opinion. In our opinion, the Sub-Accounts Statement submitted together with the internal controls and procedures involved in their preparation can be relied upon to support the application for credit withdrawals. "Niislel-Audit" LLC Ulaanbaatar city, Sukhbaatar district, Baga toiruu-44 Phone/Fax: 31-89-18, 70120095 E-mail: info@niislelaudit.mn The Government of Mongolia The International Development Association Credit Ng: 5879-MN Export Development Project SUB-ACCOUNTS STATEMENT For the period from August 26, 2016 to December 31, 2017 (in USD) Notes Dec 31, 2017 Aug 26, 2016 Beginning balance . Add 419,073.70 - Replenishment from Designated Account 414,604.44 - Earned Interest 4,469.26 - Deduct 356,947.22 - Goods 13,982.09 - Consultant services 96,419.61 - Training and Workshop 159,249.96 - Matching Grants 52,170.64 - Incremental Operating Costs 35,124.92 Ending balance 62,126.48 - Prepared by: Approved by: B.UNDARMAA D.BATMUNKH Financial Management Specialist Project Coordinator 'The Government of Mongolia The International Development Association Credit Xq: 5879-MN Export Development Project NOTES TO THE FINANCIAL STATEMENTS For the period from August 26, 2016 to December 31, 2017 1. PROJECT BACKGROUND On August 26, 2016, the International Development Association (IDA) and the the Government of Mongolia (represented by the Ministry of Finance) signed the Financing Agreement Credit No.5879-MN(Pl 47438) to implement the Export Development Project (EDP). The total approved credit amount is SDRI4,300,000(equivalent to original approved amount of US$20,000,000) and the Financing Agreement became effective from December 22, 2016. The project closing date is June 30, 2021. The objective of the project is to support Mongolian small and medium size firms (SMEs) in the non-mining sectors to strengthen their export capabilities and expand access to export markets. Project consists of following components and each component has subcomponents and activities belong to them. CoiIf)ft Components names and Sub-components Implementing agency Development of a new line of export 1.1. Knowledge transfer and capacity 1 finance products (implemented through building for the AGRE AGRE with strong collaboration of PIU) 1.2. Equity injections to AgRe's Export Insurance Subsidiary Export competitiveness enhancement 2.1. Training and research on foreign 2 (implemented through MGF under PIU, trade MOF) 2.2. Matching grants to promote export competitiveness Project Implementation Support 3 (implementto pp Project Implementation Support (implemented through PlU, MOF) Component 1: Development of a new line of export finance products (US$10.0 million). This component provides financial, technical, and institutional development support to the Agricultural Reinsurance Joint Stock Company (AgRe) in building a new line of export finance products. It will enable AgRe to obtain knowledge on trade finance instruments and develop export credit and related insurance products. These preparation activities will be initially undertaken by the Export Insurance Department (EID) of AgRe. AgRe will later establish the Export Insurance Subsidiary (EIS), who will take over these activities and provide export credit and related insurance to the Mongolian SMEs in the non-mining sectors. As an additional outcome from this component, the EIS will become a center of excellence on export credit insurance and will provide training and consulting services to insurance companies, financial institutions and exporting companies. This component have 2 sub-components: Allocated Allocated Documented Documented Category amount amount amount amount USDI% (in SDR) (in USD) (in SDR*) (in US) (1) Goods, non- consulting services, consultants' services 715,000 1,000,000.00 43,767.81 61,462.94 6.14% and Training under Part 1.1 of the Project (2) Capital Contribution for the operation of the Facility under 2,145,000 3,000,000.00 Part 1.2 of the Project: 2,145,000 3,000,000.00 - 0.00% (a) First tranche 2,145,000 3,000,000.00 (b) Second tranche (c) Third tranche (3) Goods, non- consulting services, consultants' services 1,787,500 2,500,000.00 40,190.77 57,721.80 2.31% and Training under Part 2.1 of the Project (4) Matching Grants, goods, non-consulting services, consultants' services, Training and 4,290,000 6,000,000.00 96,720.79 137,526.93 2.29% Incremental Operating Cost under Part 2.2 of the Project (5) Goods, non- consulting services, consultants' services,Training and 1,072,500 1,500,000.00 83,667.54 119,263.61 7.95% Incremental Operating Cost under Part 3 of the Project TOTAL AMOUNT 14,300,000 20,000,000.00 264,346.91 375,975.28 1.88% *Acltual disbursement in USD as of December 31, 2017 have been translated into SDR at the exchange rate. 1XDR=1.422280USD as of December 31, 2017 stated hotp:1i/cmntcna wction. H or'Ilbwk org 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES a) Statement of compliance: The Annual Financial Reports comprise Balance Sheet, Uses of Funds by Category, Uses of Funds by Project Activity, Disbursement report and the Designated Account Statement. These reports have been prepared as agreed with the World Bank. b) Basis of preparation: The financial statements were prepared in accordance with the International Public Sector Accounting Standards (IPSASs) issued by the International Public Sector Accounting Standards Board (IPSASB) of the International Federation of Accountants. The financial statements have been prepared on a cash basis. 01 this basis, cash receipts are recognized when received and disbursements are recognized when paid rather than when expenses are incurred. The project financial activities carried out in compliance with the project Financial management manual which has been accepted by the World Bank. a) Sub-component 1.1: Knowledge transfer and capacity building for the Agricultural Reinsurance Joint Stock Company (AgRe) (US$1.0 million).This sub-component will finance staff of AgRe's EID working on export finance instruments to go on short term (1- 6 months) flact-finding and study visits to solid foreign partner/s (to be determined jointly by AgRe and the World Bank) for on-site learning related to export credit insurance and other trade finance development, including formats for outsourcing of activities and/or risk-sharing with international partners. b) Sub-conponent 1.2: The equity for AgRe Export Insurance Subsidiary (US$9.0 million) will back up export credit and related insurance policies issued to Mongolian exporters. Equity injections to the EIS will be made progressively, in three tranches of US$3 million each, at the request of the Government of Mongolia (GOM). Component 2: Export competitiveness enhancement (USS8.5 million). This component provides funding for (i) export-related training programs and (ii) matching grants which would support various expenditures by exporters directed at enhancing competitiveness of individual SMEs in global markets. This component have 2 sub-components: a) Sub-coniponent 2.1: Training and research on foreign trade (US$2.5 million) will augment existing public and private sector-provided training programs to Mongolian SMEs interested in starting or increasing exports. It will systematize such training, expand its modules, sectoral depth, geographical coverage, virtual outreach, and will train individual exporters, trainers, and Mongolian diplomatic corps responsible for economic representation of Mongolia abroad. The sub-component will also finance export-related sectoral analyses and other research which would benefit specific export-oriented SMEs. b) Sub-component 2.2: Matching grants to promote export competitiveness (US$6.0million). This component will provide matching grants for Mongolian SMEs to enhance their export competitiveness. Costs eligible for financing under the sub-component would include following 5 eligible expenses which are: quality testing and certification, product adaptation, export fairs, national and international marketing tours, business strategy and planning, and production management. Component 3: Project Implementation Support (US$1.51million). The independent Project Implementation Unit provides its services for all three components of the Project headed by the Project Director, the State Secretary of the Ministry of Finance. The PIU is currently operating (6) staff composed of project manager, procurement specialist, financial management specialist, monitoring and evaluation specialist, procurement assistant and one supporting staff/driver. All staff are qualified and experienced. This unit will be responsible for: (i) P1rocurement, including all contracting for purchases and the hiring of consultants; (ii) Project monitoring, reporting, and evaluation; (iii) Contractual relationship with IDA; and (iv) Financial record keeping, financial management reports, the Designated Accounts, and disbursements. Eligible expenditures for disbursement under components: The reports are operated and maintained by the financial management information system, named PACS, designed by the Infosystems LLC capable of generating IFRs in accordance with formats agreed with the Bank. c) Basis of measurement: The financial statements are presented in U.S.Dollars (USD). The payments made by Mongolian currency (MNT) which were transferred into USD based on official exchange rate, as of the date of payment. d) Basis of presentation: The account balances in the financial statements covers transactions from March 24, 2017 to December 31, 2017. e) Designated account: In accordance with the Disbursement Letter dated August 26, 2016, the project opened the Designated Account (DA) for the credit financing acceptable to the World Bank. The ceiling of the designated account is USDI,200,000 (one million two hundred thousand dollars). DA is located in Ulaanbaatar City Bank and maintained in USD account number 2691001903. The payments for the eligible expenditures of goods (over USD5,000), matching grants (over USD20,000) and international consultant's services are paid from DA. f) Sub-accounts: As specified in the Disbursement Letter, the project opened the USD and MNT Sub-accounts (SA) for the credit financing acceptable to the World Bank. The Sub-accounts will be reported and reconciled with DA maintained by the Project Implementation Unit with USD200,000 and MNTI00,000. Accordingly, expenditures expressed by USD will be financed from SA (USD) and expenditures expressed by MNT will be financed from SA (MNT). The SA USD is located in Ulaanbaatar City Bank and maintained by PIU with account number 2691001904. The SA MNT was located in Ulaanbaatar City Bank until December 31, 2017 and maintained by PIU with account number 100900011126. The payments for the eligible expenditures of goods (below USD5,000), matching grants (below USD20,000), national consultant's service, training and workshops and incremental operating costs are paid from SAs. 3. CASH AND CASH EQUIVALENTS The summary of transaction statement of Designated account and Sub-accounts for the period between March 24, 2017 and December 31, 2017 is indicated as follows: (in USD) December 31, 2017 August 26, 2016 Cash at the bank: - Designated account 1,001,117.94 - - Sub-accounts 62,126.48 TOTAL 1,063,244.42 4. IDA'S FUND As of December 31, 2017 the project had received USD 1,424,549.72 (7.12% of the total credit) through the Designated Account as financing from IDA Credit No:5879-MN and had disbursed USD374,599.27. (in USD) WA Application Claimed Credited Amount Amount numbers type date date claimed credited WA-01 Advance 05-Mar-17 16-Mar-17 1,200,000.00 1,200,000.00 WA-02 Replenishment 19-May-17 02-Jun-17 64,944.32 63,404.31 WA-03 Replenishment 07-Jun-17 21 -Jun-17 16,053.36 17,593.37 WA-04 Replenishment 02-Aug-17 25-Aug-17 10,812.98 10,762.98 WA-05 Replenishment 03-Aug-17 25-Aug-17 8,771.41 8,520.88 WA-06 Replenishment I1-Sep-17 20-Sep-17 36,742.54 36,742.54 WA-07 Replenishment 05-Oct-17 13-Nov-17 46,551.86 46,551.86 WA-08 Replenishment 05-Nov-17 08-Dec-17 40,973.78 40,973.78 TOTAL 1,424,850.25 1,424,549.72 WA-9 had been submitted to the World Bank but not credited before the year end of December 31, 2017. It was credited in February 2018. WA-10 was submitted in February 2018 and credited in March 2018. (in USD) WA Application Claimed Credited Amount Amount numbers type date date claimed credited WA-09 Replenishment 07-Dec-17 05-Feb-18 57,904.06 59,580.60 WA-10 Replenishment 21-Feb-18 07-Mar-18 91,844.96 91,844.96 TOTAL 149,749.02 151,425.56 5. EARNED INTEREST For the reporting period, total accumulated interest income was USD13,293.97 from the designated account and sub-accounts. (in USD) December 31, 2017 August 26, 2016 Designated account (USD) 8,824.71 - Sub-accounts (USD) 638.54 - Sub-accounts (MNT) 3,830.73 - TOTAL 13,293.97 - 6. CUMULATIVE PROJECT EXPENDITURES The total disbursed amount of USD374,599.27 for the period between March 24, 2017 and December 31, 2017 is indicated by eligible expenditures and categories as follows: Consultant Training MGF Incremental Component naies Goods services and operating Total servicesexpenses Workshop costs Compi1:Development of a new line of export - 16,282.50 56,434.22 - - 72,716.72 finance products Comp42: Export competitiveness - 39,550.00 65,879.72 52,170.64 6,406.97 164,007.33 enhncement Sub-comit#2.1: Training and research onforeign - 2,400.00 60,177.27 - - 62,577.27 trade Sub-comp2.2: Mlatching grants to - 37,150.00 5,702.45 52,170.64 6,406.97 101,430.06 promote export competitiveness Comp#3: Project implementation 25,637.00 64,743.48 17,600.61 29,894.13 137,875.22 Support TOTAL 25,637.00 120,575.98 139,914.55 52,170.64 36,301.10 374,599.27 6. CUMULATIVE PROJECT EXPENDITURES (CONTINJED) For the reporting period under the EDP total of 31 contracts were committed through shopping, IC, CQS, LCS and SSS methods. From December 22, 2017 through December 31, 2017, Project Implementing Unit (PIU) has awarded total of 6 (19% out of total) contracts for purchase of goods for the total amount of USD25,388.34, and total of 25 (81% out of total) contracts for selection of consultants for the total amount of USD293,294.57 in accordance with the procurement guidelines issued by the World Bank and Procurement Law of Mongolia. Goods: The total commitment USD25,637.00 and disbursed USD25,637.00 for the period between March 24, 2017 and December 31, 2017 as follows: I Contract Description of the Supplier/Contractor Contract date Payment Total amount number goods name date (in MNT) (in USD) EDP/3/GO/001 Purchase of Accounting InfoSystems Co. Ltd 3/13/2017 4/17/2017 7,644,000.00 3,153.47 PrhSoftware 2 EDP/3/GO/002 Purchase of Furnitture for IBSC LLC 3/13/2017 3/29/2017 12,060,162.00 4,908.50 Trammig and Meeting Room 3 EDP/3/GO/003 Purchase of IT Goods ITZONE LLC 3/13/2017 4/19/2017 28,100,000.00 11,654.91 4 EDP/3/GO/004 Purchase of Office IT BSB Service LLC 5/16/2017 5/19/2017 6,200,000.00 2,558.81 Goods 5 EDP/3/GO/005 Purchase of Office Furniture Tima Style LLC 11/28/2017 11/29/2017 1,780,000.00 727.12 6 EDP/3/GO/006 Purchase of Office IT BSB Service LLC 11/21/2017 11/24/2017 6,488,500.00 2,634.19 Goods TOTAL AMOUNT 62,272,662.00 25,637.00 Consultant services: The total commitment USD293,294.57 and disbursed USD120,575.98 for the period between March 24, 2017 and December 31, 2017 as follows: (in USD) Total Total Name of the Contract Closmng- N2 Contract number Description of the consultants Naor dat Cdoten comitted .. disbursed- -~~- - contractor date- -date: aiA- -mout> - amount amoutnt 1 EDP/l/CS/001 Coordinating Consultant (AgRe Zoljargal Badam 5/10/2017 5/9/2018 18,000.00 10,500.00 Coordinator) 2 EDP/1/CS/002 International consultant on Export Credit Andreas Klasen 11/7/2017 12/25/2017 38,550.00 5,782.50 Insurance Market I I 6. CUMIULATIVE PROJECT EXPENDITURES (CONTINUED) (in USD) .Total' Total Name of the Contract Closing o MN Contract number - Description of the consultants ccomitted disbursed contractor date date _____________ ____ _______ amount -amount 3 EDP/2-1/CS/003.1 National consultant (1) to develop training Suvdaa Damiran 7/5/2017 8/4/2017 1,200.00 1,200.00 programs on foreign trade 4 EDP/2-1/CS/003.2 National consultant (2) to develop training Munkhbaysgalan 7/5/2017 8/4/2017 1,200.00 1,200.00 programs on foreign trade Ganbold 5 EDP/2-1/CS/001.1 National consultant (1) to conduct foreign Sugar Munkhtsooj 12/1/2017 2/28/2018 5,400.00 - market research 6 EDP/2-1/CS/001.2 National consultant (2) to conduct foreign Batpurev Ayushsuren 12/1/2017 2/28/2018 4,500.00 - market research 7 EDP/2-1/CS/001.3 National consultant (3) to conduct foreign Tamir Bataa 12/1/2017 2/28/2018 4,500.00 - market research 8 EDP/2-1/CS/001.4 National consultant (4) to conduct foreign Enkhjargal Natsagdorj 12/1/2017 2/28/2018 4,500.00 - market research International consultant to conduct 7 day 9 EDP/2-1/CS/002.1 training course on workshop "cashmere Yvonne Watson 10/25/2017 11/3/2017 9,550.00 - product design and fashion in Mongolia" 10 EDP/2-2/CS/002.2 National Individual Consultant/Business Enkh-Amgalan 4/11/2017 4/10/2018 6,450.00 6,450.00 Development Specialist Sainkhuu II EDP/2-2/CS/002.2 National Individual Consultant/Business Khash-Erdene 4/11/2017 4/10/2018 17,400.00 11,400.00 Development Specialist Battsengel 12 EDP/2-2/CS/002.3 National Individual Consultant/Business Nyamsuren 9/7/2017 9/6/2018 18,000.00 4,500.00 Development Specialist Bayarsaikhan 15 EDP/2-2/CS/003.2 National Individual Dulguun Ganbat 4/10/2017 4/9/2018 9,000.00 5,800.00 Consultant/Administration Assistant 16 EDP/2-2/CS/003.3 National Individual Solongo Purevjay 5/3/2017 5/2/2018 9,000.00 5,000.00 Consultant/Administration Assistant o59 17 EDP/2-2/CS/007.1 National consultants (1) for conducting Bumchimeg Gungaa 8/31/2017 10/30/2017 2,000.00 2,000.00 market research 18 EDP/2-2/CS/007.2 National consultants (2) for conducting Byambasuren 8/31/2017 10/30/2017 2,000.00 2,000.00 market research Dordnyambuu 8 1 19 EDP/3/CS/001 National Consultant for Training Enkhtuvshin 3/1/2017 2/28/2018 13,800.00 11,400.00 Coordination and Logistics Amindavaa I I 6. CUMULATIVE PROJECT EXPENDITURES (CONTINUED) (in USD) Total Total Name of the Contract Closing Ne Contract number Description of the consultants date comitted disbursed 20 DP//C/00 ___________________________ contractor date date aon > aon amount amount,- 20 EDP/3/CS/005 Project Coordinator at PIU Batmunkh Dunkhree 7/1/2017 6/30/2018 29,483.95 14,133.02 21 EDP/3/CS/006 Procurement Specialist at PIU Khaliun Myangabayar 7/1/2017 6/30/2018 22,112.96 10,599.77 22 EDP/3/CS/007 _ Financial Management Specialiste at PIU Undarmaa Battumur 7/1/2017 6/30/2018 21,488.14 10,296.88 23 EDP/3/CS/008 Monitoring and Evaluation Specialist at Tsolmon Zurgaa 7/1/2017 6/30/2018 21,488.14 10,295.36 PIU 24 EDP/3/CS/009 Procurement Assistant at PIU Mergenzaya Thys 7/1/2017 6/30/2018 13,721.38 6,023.44 Consultancy service (firm) for developing 25 EDP/3/CS/003 web based project implementation Infosystems LLC 10/20/2017 1/19/2018 19,950.00 1,995.00 monitoring information system (PIMIS) TOTAL AMOUNT . 293,29457 120,575.98 Training and workshop: The total disbursed USD139,914.55 for the period between March 24, 2017 and December 31, 2017 as follows: Training and Number of the Number of the Componient Namnes -r$ 1.in- .Compnent amesWorkshop training .rtacipat Comp#1:DEVELOPMENT OF A NEW LINE OF EXPORT 56,434.22 9 98 FINANCE PRODUCTS Sib-Comp#1.I :Knowledge trans fer and capacity building or9 folumint StockCopany (AgRe , Sub-comp#1.2: Equity injections to AgRe Export Insurance Subsidiary Co+ 01".EXPORT-tCOMPETITIVENESSENHANCEMENT 65,879.72 62 4913 Sub-com#2. 1: Training and research on foreign trade 60,177.27 48 3,579 Sib-comip#2.2: Matching grants to promote export competitiveness 5,72.4 14. I334 Comp#3: PROJECT IMPLEMENTATION SUPPORT 17,600.61 7 89 TOTAL 139,914.55 78 5,100 6. CUMULATIVE PROJECT EXPENDITURES (CONTINUED) Matching Grants: The total commitment USD371,797.48 with 30 SMEs and disbursed USD52,170.64 for the period between March 24, 2017 and December 31, 2017 as follows: (in USD) Total Total KN Contract number Contractor/Beneficiaries name Contract date Closing date comitted disbursed amount amount I EDP/2.2-AFl7-0002 BEST BUIDAN LLC 8/1/2017 10/1/2017 8,950.48 5,423.84 2 EDP/2.2-AFl7-0003 NANS CASHMERE LLC 8/1/2017 9/1/2017 5,000.00 3,453.22 3 EDP/2.2-AF17-0005 GOYOL CASHMERE LLC 6/23/2017 12/31/2017 20,187.50 14,111.69 4 EDP/2.2-AFl7-0006 KHATAN SUIKH LLC 8/1/2017 9/1/2017 5,000.00 4,939.27 5 EDP/2.2-AFl7-0008 OYUNDARI EKH LLC 8/3/2017 11/1/2017 9,900.00 6,222.84 6 EDP/2.2-AF17-0010 DEED ERUUL MENDIIN OTOCH ODI LLC 8/18/2017 11/5/2017 8,639.00 7 EDP/2.2-AFl7-0011 PREMIUM TRAVEL MONGOLIA LLC 8/21/2017 12/31/2017 22,675.00 8 EDP/2.2-AF17-0013 KHAANJIMS SBT LLC 8/18/2017 10/20/2018 30,000.00 - 9 EDP/2.2-AF17-0014 TORGO ZAGVAR LLC 9/20/2017 11/20/2017 15,246.00 15,246.00 10 EDP/2.2-AFl7-0015 TSAST SOGOOT LLC 9/15/2017 12/15/2017 16,540.00 - 11 EDP/2.2-AF17-0016 KHUUGIIN GUTAL LLC 10/6/2017 11/30/2017 4,275.00 2,773.78 12 EDP/2.2-AFl7-0017 KHATAN SUIKH LLC 10/6/2017 11/1/2017 8,930.00 - 13 EDP/2.2-AF17-0018 KHATAN SUIKH LLC 9/15/2017 12/1/2017 11,230.00 - 14 EDP/2.2-AFl7-0019 OYUNDARI EKH LLC 10/9/2017 12/1/2017 9,500.00 - 15 EDP/2.2-AFl7-0020 MONGOL ECOMAKH LLC 11/1/2017 12/30/2017 23,404.00 - 16 EDP/2.2-AFl7-0021 JAMOTORABERU LLC 11/2/2017 12/30/2018 10,305.00 - 17 EDP/2.2-AFl7-0022 KHAANJIMS SBT LLC 11/1/2017 12/30/2017 5,000.00 - 18 EDP/2.2-AFl7-0024 MONGOL CONTENT LLC 10/30/2017 11/7/2018 14,500.00 - 19 EDP/2.2-AF17-0025 MOGUL SERVICE AND SUPPORT LLC 11/2/2017 1/15/2018 14,628.50 - 20 EDP/2.2-AF17-0026 KHAANKHUNS IMPEX LLC 11/27/2017 2/28/2017 7,500.00 - 21 EDP/2.2-AFl7-0027 KHAANKHUNS IMPEX LLC 11/21/2017 10/30/2018 35,300.00 - 22 EDP/2.2-AFl7-0028 KHUNSCOMPLEX LLC 11/27/2017 12/31/2018 7,849.00 - 23 EDP/2.2-AF17-0029 NOMADIC JOURNEYS LLC 11/24/2017 2/1/2018 11,000.00 - 6. CUMULATIVE PROJECT EXPENDITURES (CONTINUED) (in USD) Total Total Ne~ Contract nunIber Contractor/Beneficiaries name Contract date Closing date comitted disbursed amount amount 24 EDP/2.2-AF17-0030 DEVJIKH TRADE LLC 11/24/2017 2/28/2018 21,400.00 - 25 EDP/2.2-AFl7-0031 OYUNDARI EKH LLC 12/18/2017 1/2/2018 7,450.00 26 EDP/2.2-AFl7-0033 KHUUGIIN GUTAL LLC 12/18/2017 3/30/2018 6,758.00 - 27 EDP/2.2-AFl7-0034 SNOW FIELDS LLC 12/20/2017 6/30/2018 6,500.00 - 28 EDP/2.2-AF17-0035 GOBI-ERDENE CASHMERE LLC 12/19/2017 6/30/2018 7,700.00 - 29 EDP/2.2-AFl7-0037 MONOS COSMETICS LLC _ 12/18/2017 5/30/2018 9,400.00 -f 30 EDP/2.2-AFl7-0038 ULEMJ CASHMERE LLC 12/18/2017 1/30/2018 7,030.00 - TOTAL AMOUNT A 371,'748. 52,170.64 Incremental operating cost: The total disbursed USD36,301.10 for the period between March 24, 2017 and December 31, 2017 as follows: (m USD) Comp#2: Export Comp#3: Project o Competitiveness Enhancement Implementation Support PSC meeting, MGF Evaluation Board meeting, NGO or Private sector representative in Evaluation 1,343.56 753.78 2,097.34 Committee(Refreshment and/or Honoriafee) Offce ent(MGF and PJ - - 4,081.17 4,081-17- Stationary and office equipment maintenance, sofware licenses 649.01 5,031.86 5,680.87 municatphone, domain, internet 6,701.08 6,70L08 Publication, brochure, handouts, pamphlets., 3,609.22 3,609.22 Office consumables(Office suple, cleaning materials) 805.18 3,871.39 .4,676.57 Local transportation _ 4,078.30 4,078.30 Advertiemientcost~ - 2,657.69, 2- 657.6q9 Contractual staff.-Cleani ng service, tr anslation and othe,,-,r costs _2,298.11 2,298.11 420.74 - 420.74, TOTAL 6,406.97 29,894.13 36 0 01.10I