Project's Financial Statements and Independent Auditor's Report Ministry of Finance of the Republic of Macedonia "Municipal Services Improvement Project" - International Bank for Reconstruction and Development Loan number 7699-MK, Loan number 8158-MK, EC IPA Grant No. TF 018812 and Loan number 8561-MK 31 December 2017 Ministry of Finance of the Republic of Macedonia “Municipal Services Improvement Project” IBRD Loan number 7699-MK, Loan number 8158-MK, EC IPA Grant No. TF 018812 and Loan number 8561-MK Contents Page Management Responsibility 1 Independent Auditor’s Report 2 Statement of Sources and Uses of Funds 4 Statement of Uses of Funds by Project Activity 5 Statement of Unit of Output by Project Activity 13 Statement of Breakdown of Loans and Grants 31 Statement of Withdrawals – Designated Account 56 Statement of Designated Account – EUR 58 Statement of Treasury Account (Mirror Designated Account) – MKD 60 Statement of Petty Cash in Denar Account 63 Statement of Petty Cash in Euro Account 64 Notes to Project’s financial statements 65 Independent Auditor’s Report Grant Thornton DOO Sv. Kiril I Metodij 52b/1-20 1000 Skopje Macedonia T +389 2 3214 700 To the Management of the Project F +389 2 3214 710 E Contact@mk.gt.com www.grantthornton.mk We have audited the accompanying financial statements of the Ministry of Finance of the Republic of Macedonia (MoF), “Municipal Services Improvement Project” (further referred to as “the Project”), financed under International Bank for Reconstruction and Development (IBRD), Loan numbered 7699-MK , Loan numbered 8158-MK, EC IPA Grant No. TF 018812 and Loan numbered 8561-MK comprising the Statement of Sources and Uses of Funds, Statement of Uses of Funds by Project Activity, Statement of Unit of Output by Project Activity, Statement of Breakdown of Loans and Grants, Statement of Withdrawals, Designated Account Statements and related disclosure Notes (further referred as to “Project’s Financial Statements”) as at and for the year ended 31 December 2017 and included on pages 4 to 68. Management’s responsibility for financial statements These Project’s financial statements are compiled for the purposes of reporting to the MoF and the IBRD management, and are the responsibility of the management of the Project. The Projects’ management is responsible for developing and maintaining such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatements, whether due to fraud or error. The Project’s Management policy is to prepare the accompanying Project’s financial statements on the cash receipts and disbursement basis in conformity with the related requirements of the World Bank’s financial reporting guidelines and in compliance with the relevant provisions set out in the Loan Agreement numbered 7699-MK dated 29 June 2009, the Disbursement letter, dated 29 June 2009 and Loan Agreement numbered 8158-MK dated 7 June 2012, Disbursement letter, dated 7 June 2012 and EC IPA Grant No. TF 018812, Disbursement letter, dated 24 December 2014 and Loan Agreement numbered 8561-MK dated 14 January 2016, Disbursement letter, date 14 January 2016. On this basis, cash receipts are recognized when received rather when earned and cash expenditures are recognized when paid rather than when incurred. Auditor’s responsibility Our responsibility is to express an opinion on these Project’s financial statements based on our audit. We conducted our audit in accordance with auditing standards accepted in the Republic of Macedonia1. 1 International Standards on Auditing (“ISA“) issued by the International Auditing and Assurance Standards Board (“IAASB”), effective from 15 December 2009, translated and published in the “Official Gazette” of the Republic of Macedonia no. 79 from 2010. Chartered Accountants Member firm of Grant Thornton International Ltd Ministry of Finance of the Republic of Macedonia 5 “Municipal Services Improvement Project” IBRD Loan number 7699-MK, Loan number 8158-MK, EC IPA Grant No. TF 018812 and Loan number 8561-MK Project’s Financial Statements 31 December 2017 Statement of Uses of Funds by Project Activity (Amounts in EUR) For the period from For the period from 01 January 2017 through 01 January 2016 through 31 December 2017 31 December 2016 Actually Actually Project’s expenditures by activity: disbursed Budget Variance disbursed Budget Variance A. Municipal Investment Municipal Services Improvement Project - Original Loan A.1 Sub Loan MSIP 01 - Kocani (Pipe Replacement - 6 km) - - - - - - A.1.i. Contract MSIP 01/1-NCB - - - - - - A.1.ii.Contract MSIP 01/2-CQ - - - - - - A.2 Sub Loan MSIP 02 - Bogdanci (Street Lighting) - - - - - - A.2.i.Contract MSIP 02/1-NCB - - - - - - A.2 .ii. Contract MSIP G NSB 004/11 - - - - - - A.3. Sub Loan MSIP 03 - Skopje (Vehicle and bins for solid waste) - - - - - - A.3.i.Contract MSIP 03/1-ICB - - - - - - A.3.ii. Contract MSIP 03/2-ICB - - - - - - A.3.ii.Remaining loan funds (VAT) - - - - - - A.4 Sub Loan MSIP 04 - Ilinden (Heating and Cooling of Municipality Building) - - - - - - A.4.i. Contract MSIP NCB 003/10 - - - - - - A.4 Sub Loan MSIP 04-2 - ILINDEN (Heating and Cooling in House of Culture) - - - - - - A.4 Sub Loan MSIP 04/2 - ILINDEN (Geotermal pumps House of Culture) - - - - - - A.4.ii. Contract MSIP NCB - - - - - - A.5. Sub Loan MSIP 05 - Kisela Voda (Drainage Systems) - - - - - - A.5.i. Contract MSIP NCB 004/11 - - - - - - A.5 Sub Loan MSIP 05/2 - KISELA VODA (Water supply systems) - - - - - - A.5.i. Contract MSIP W ICB 003/11-Lot1 - - - - - - A.5.i. Contract MSIP W ICB 003/11-Lot2 - - - - - - A.5.i. Contract MSIP W NCB 005/11 - - - - - - A.6 Sub Loan MSIP 06 STIP (Arrangement of the central city area) - - - - - - A.6.i. Contract MSIP W NCB-008/11 - - - - - - A.6.ii. Contract MSIP W ICB - - - - - - Returned sub-loan funds due to termination of the Sub-loan Agreement* (82,505) - 82,505 (141,548) (140,000) 1,548 A.7 Sub Loan MSIP 07- PEHCEVO (Vehicles for solid waste) - - - - - - A.7.i. Contract MSIP G NCB-004/11 - - - - - - A.8 Sub Loan MSIP 08-1 - VELES (Extension of water supply system) - - - - - - A.8.i. Contract MSIP W NCB - - - - - - A.8 Sub Loan MSIP 08-2 - VELES (Street lighting) - - - - - - A.8.ii.ContractMSIPWNCB - - - - - - Ministry of Finance of the Republic of Macedonia 6 “Municipal Services Improvement Project” IBRD Loan number 7699-MK, Loan number 8158-MK, EC IPA Grant No. TF 018812 and Loan number 8561-MK Project’s Financial Statements 31 December 2017 (Amounts in EUR) Statement of Uses of Funds by Project Activity (continued) For the period from For the period from 01 January 2017 through 01 January 2016 through 31 December 2017 31 December 2016 Actually Actually disbursed Budget Variance disbursed Budget Variance A.9 Sub Loan MSIP 09 - VEVCANI (Vehicles for solid waste and Backhoe) - - - - - - A.9.i. Contract MSIP G NCB-005/11-Lot1 - - - - - - A.9.ii. Contract MSIP G NCB-005/11-Lot2 - - - - - - A.10. Contract MSIP G NCB-009/11 - - - - - - A.11 Sub Loan MSIP 11 - KICEVO (Vehicles for solid waste and Street reconstruction) - - - 109,616 109,616 - A.11.i Contract MSIP G ICB 004-11 - - - - - - A.11.ii Contract MSIP W NCB 012-12 - - - - - - A.12 Sub Loan MSIP 12 - NOVACI (Street lighting) - - - - - - A.12.i Contract MSIP W NCB - - - - - - A.13 Sub Loan MSIP 13 - DOLNENI (Rehabilitation of local roads) - - - - - - A.13.i Contract MSIP W NCB - - - - - - A.14 Sub Loan MSIP 14 - GJORCE PETROV(Streets reconstruction) - - - - - - A.14.i Contract MSIP W ICB - - - - - - A.15 Sub Loan MSIP 15 - GRADSKO (Vehicle and bins for solid waste) - - - - - - A.15.i Contract MSIP G NSB - - - - - - A.15.ii Contract MSIP G SH - - - - - - A.16 Sub Loan MSIP 16 - VASILEVO (Construction of the water supply network) - - - - - - A.16.i Contract MSIP W NCB - - - - - - A.17 Sub Loan MSIP 17-BOSILOVO (Construction of bridge) - - - - - - A.17.i Contract MSIP W NCB - - - - - - A.18 Sub Loan MSIP 18 - MOGILA (Reconstruction of House of Culture) - - - - - - A.18.i Contract MSIP W NCB - - - - - - A.18 Sub Loan MSIP 18/2 - MOGILA (Construction vehicle - Backhoe) - - - - - - A.18.ii Contract MSIP G NCB - - - - - - A.19 Sub Loan MSIP 19 - GOSTIVAR (Street lighting and Supply of basic equipment for public hygiene) - - - - - - A.19.i. Contract MSIP ICB - - - - - - A.19.ii. Contract MSIP NCB - - - - - - - Remaining loan funds - - - - - - - VAT and Customs - - - - - - A.20 Sub Loan MSIP 20 - PRILEP (Streets reconstruction) - - - - - - A.20.i. Contract MSIP NCB - - - - - - A.21 Sub Loan MSIP 21 - CAIR (School/Kindergarten Insulation Project) - - - - - - A.21.i. Contract MSIP NCB - - - - - - A.22 Sub Loan MSIP - GAZI BABA (Reconstruction of School) - - - - - - A.22 Sub Loan MSIP - GAZI BABA (fance) - - - - - - A.22 Sub Loan MSIP - GAZI BABA (audio equipment) - - - 5,969 5,969 - A.22 Sub Loan MSIP - GAZI BABA (furniture) - - - 66,968 66,968 - A.22.i. Contract MSIP NCB - - - - - - A.23 Sub Loan MSIP 34- BUTEL (Construction of School-phase II) - - - - - - A.23.i. Contract MSIP ICB - - - - - - A.24 Sub Loan MSIP - KAVADARCI (Reconstruction of Schools) 62,842 62,842 - 440,078 603,250 163,172 City of Skopje Sub Loan MSIP 03-2 (Equipment for public greenery) - - - 362,050 362,050 - A.24.i. Contract MSIP NCB - - - - - - Ministry of Finance of the Republic of Macedonia 7 “Municipal Services Improvement Project” IBRD Loan number 7699-MK, Loan number 8158-MK, EC IPA Grant No. TF 018812 and Loan number 8561-MK Project’s Financial Statements 31 December 2017 (Amounts in EUR) Statement of Uses of Funds by Project Activity (continued) For the period from For the period from 01 January 2017 through 01 January 2016 through 31 December 2017 31 December 2016 Actually Actually disbursed Budget Variance disbursed Budget Variance A.25 Sub Loan MSIP 65 - VASILEVO (Street construction Piperevo) 70,070 162,601 92,531 - - - Other Sub - Loan - - - - - - Sub-total Component A - Original Loan 50,407 225,443 175,036 843,133 1,007,853 164,720 Municipal Services Improvement Project - Additional Financing A.AF.01 Sub Loan MSIP 22 - BEROVO (Streets reconstruction) - - - - - - A.AF.1.i Contract MSIP W NCB - - - - - - A.AF.02 Sub Loan MSIP 23 - MAVROVO ROSTUSE (Streets reconstruction) - - - - - - A.AF.02 Sub Loan MSIP 23 -2 MAVROVO ROSTUSE (Streets lighting) - - - 5,571 5,571 - A.AF.1.i Contract MSIP W NCB - - - - - - A.AF.03 Sub Loan MSIP - VINICA (Vehicles for solid waste) - - - - - - A.AF.03 Sub Loan MSIP 24-2 - VINICA (Construction of storm water system and construction of street) - - - - - - A.AF.1.i Contract MSIP G NCB - - - - - - A.AF.1.i I Contract MSIP W NCB - - - - - - A.AF.04 Sub Loan MSIP - KRIVA PALANKA (Streets reconstruction) - - - - - - A.AF.1.i Contract MSIP W NCB - - - - - - A.AF.1.i Contract MSIP G NCB - - - - - - A.AF.05 Sub Loan MSIP 27 - RANKOVCE (Streets reconstruction) - - - - - - A.AF.1.i Contract MSIP W NCB - - - - - - A.AF.06 Sub Loan MSIP 26 - BOSILOVO (Streets reconstruction) - - - - - - A.AF.1.i Contract MSIP W NCB - - - - - - A.AF.07 Sub Loan MSIP 29 - PRILEP (Streets reconstruction) - - - - - - A.AF.1.i Contract MSIP W NCB - - - - - - A.AF.08 Sub Loan MSIP 30 - PETROVEC (Reconstruction of School) - - - - - - A.AF.1.i Contract MSIP W NCB - - - - - - A.AF.09 Sub Loan MSIP 31 - CASKA (Street reconstruction and water reservoir) - - - - - - A.AF.9.i Contract MSIP W NCB - - - - - - A.AF.10 Sub Loan MSIP 32 - PROBISHTIP (Street reconstruction) - - - 52,075 55,075 3,000 A.AF.10.i Contract MSIP W NCB - - - - - - A.AF.11 Sub Loan MSIP 33 - PEHCEVO (Street reconstruction) - - - - - - A.AF.11.i Contract MSIP W NCB - - - - - - A.AF.12 Sub Loan MSIP 35 - KRUSEVO (Installation of water meters) - - - 4,164 - (4,164) A.AF.12.i Contract MSIP W NCB - - - - - - A.AF.13 Sub Loan MSIP 36 - DOJRAN (Purchasing of communal vehicles) - - - - - - A.AF.13.i Contract MSIP W NCB - - - - - - A.AF.14 Sub Loan MSIP 37 -OHRID (street reconstruction) - - - 964,760 1,314,194 349,434 A.AF.14 Sub Loan MSIP 37 -OHRID (Purchasing of communal vehicles) - - - 306,328 - (306,328) A.AF.14.i Contract MSIP G ICB - - - - - - A.AF.14.ii Contract MSIP W ICB - - - - - - A.AF.14 Sub Loan MSIP 37 – OHRID (remaining sub-loan) - 445,392 445,392 - - - A.AF.15 Sub Loan MSIP 38 - KARPOSH (Street and storm water reconst.) - - - 423,267 574,803 151,536 A.AF.15.i Contract MSIP W ICB - - - - - - Ministry of Finance of the Republic of Macedonia 8 “Municipal Services Improvement Project” IBRD Loan number 7699-MK, Loan number 8158-MK, EC IPA Grant No. TF 018812 and Loan number 8561-MK Project’s Financial Statements 31 December 2017 (Amounts in EUR) Statement of Uses of Funds by Project Activity (continued) For the period from For the period from 01 January 2017 through 01 January 2016 through 31 December 2017 31 December 2016 Actually Actually disbursed Budget Variance disbursed Budget Variance A.AF.16 Sub Loan MSIP 39 - SHUTO ORIZARI (Water supply system) 90,342 139,623 49,281 53,902 145,571 91,669 A.AF.16.i Contract MSIP W ICB - - - - - - A.AF.17 Sub Loan MSIP 40 - CITY OF SKOPJE(Water supply system Shuto Orizari) 461,032 1,725,224 1,264,192 1,112,972 1,325,224 212,252 A.AF.17.i Contract MSIP W ICB - - - - - - A.AF.18 Sub Loan MSIP 41 - ZELINO (Street and storm water reconst.) - - - 41,057 220,634 179,577 A.AF.18.i Contract MSIP W ICB - - - - - - A.AF.19 Sub Loan MSIP 42 - ROSOMAN (Water reservoir) - - - - - - A.AF.19.i Contract MSIP W ICB - - - - - - A.AF.20 Sub Loan MSIP 43 - KOCANI (Street construction) - 67,081 67,081 379,895 932,510 552,615 A.AF.20.i Contract MSIP W ICB - - - - - - A.AF.21 Sub Loan MSIP 44 - GORCE PETROV (Street construction) 49,017 9,890 (39,127) 324,493 343,025 18,532 A.AF.21 Sub Loan MSIP 44 - GORCE PETROV (4 additional streets construction) 61,090 - (61,090) - - - A.AF.21.i Contract MSIP W ICB - - - - - - GORCE PETROV AF-Remaining Sub-loan - - - - 456,616 456,616 A.AF.22 Sub Loan MSIP 45 - NEGOTINO (Water pipe replacement ) - - - 278,405 624,994 346,589 A.AF.22 Sub Loan MSIP 45 - NEGOTINO (Reconstruction of water supply system) 191,428 - (191,428) - - - A.AF.22.i Contract MSIP W ICB - - - - - - NEGOTINO-Remaining Sub-loan - 287,523 287,523 - - - DELCEVO - AF MSIP Subloan 46 - - - - - - Delcevo - Extension of kindergarten 15,093 15,093 - 287,340 287,340 - Delcevo AF - Remaining Sub-loan - - - - - - MAKEDONSKA KAMENICA - AF Subloan MSIP 47 - - - - - - MK.Kamenica-Reconstruct. of cultural center 150,727 150,821 94 555,094 589,960 34,866 MK.Kamenica AF - Remaining sub-loan - - - - 91,455 91,455 SVETI NIKOLE - AF Subloan MSIP 48 - - - - - - Sv.Nikole - Reconstruction of streets 308,119 306,640 (1,479) 385,867 287,656 (98,211) Sveti Nikole AF - Remaining Sub-loan - - - - 86,365 86,365 BITOLA - AF Subloan MSIP 49 - - - - - - Bitola-Construction of seven streets 413,879 684,684 270,805 278,945 1,800,000 1,521,055 Bitola-Supervision of construction of streets 21,681 25,000 3,319 14,055 25,000 10,945 CITY SKOPJE – AF Subloan MSIP 50 - - - - - - City Skopje – Rehabilitation of Boris Trajkovski street 1,993,501 909,994 (1,083,507) 843,789 2,800,000 1,956,211 CITY SKOPJE – Remaining Sub-loan - 490,006 490,006 - - - RADOVISH – AF Subloan MSIP 51 - - - - - - Radovish-Construction of street 421,449 484,009 62,560 62,560 439,875 377,315 Radovish-Supervision of construction of street 5,451 12,699 7,248 7,247 231,267 224,020 KRIVOGASHTANI – AF Subloan MSIP 52 - - - - - - Krivogashtani-Construction of streets 7,457 7,453 (4) 168,896 195,122 26,226 SOPISTE – AF Subloan MSIP 54 - - - - - - Sopiste-Construction of streets 128,646 - (128,646) 393,751 658,838 265,087 KRATOVO – AF Subloan MSIP 55 - - - - - - Kratovo-construction of Green Market 176,830 14,471 (162,359) 253,927 500,000 246,073 LIPKOVO – AF Subloan MSIP 56 - - - - - - Lipkovo-Schools Energy Efficiency 88,420 88,420 - 391,701 - (391,701) DEMIR KAPIJA – AF Subloan MSIP 57 - - - - - - Demir Kapija-Reconstruction of streets 355,218 443,452 88,234 76,109 - (76,109) MAKEDONSKI BROD–AF Subloan MSIP 58 - - - - - - Makedonski Brod-Construction of local roads 548,688 1,014,759 466,071 238,803 - (238,803) CHESINOVO OBLESHEVO-AF Subloan MSIP 59 - - - - - - Ministry of Finance of the Republic of Macedonia 9 “Municipal Services Improvement Project” IBRD Loan number 7699-MK, Loan number 8158-MK, EC IPA Grant No. TF 018812 and Loan number 8561-MK Project’s Financial Statements 31 December 2017 (Amounts in EUR) Statement of Uses of Funds by Project Activity (continued) For the period from For the period from 01 January 2017 through 01 January 2016 through 31 December 2017 31 December 2016 Actually Actually disbursed Budget Variance disbursed Budget Variance Chesinovo Obleshevo-Water supply 249,744 322,187 72,443 - - - ZRNOVCE – AF Subloan MSIP 60 - - - - - - Zrnovce-Kindergarten and local streets 146,432 146,432 - - 145,933 145,933 GEVGELIJA – AF Subloan MSIP 61 - - - - - - Gevgelija-Water supply system 651,221 600,000 (51,221) - - - DEMIR HISAR – AF Subloan 62 - - - - - - Demir Hisar-Construction of local road - 200,000 200,000 - - - DEBRCA – AF Subloan MSIP 63 - - - - - - Debrca-Comunal vehicle 50,555 50,555 - - - - Other Sub-Loans - - - - - - Sub-total Component A - Additional Financing 6,586,020 8,641,408 2,055,388 7,904,973 14,137,028 6,232,055 Total Component A 6,636,427 8,866,851 2,230,424 8,748,106 15,144,881 6,396,775 B. Capacity Building and Institutional Reform Municipal Services Improvement Project- Original Loan B.1 TA to Municipalities and CSE's for Sub- project preparation - - - - - - B.1.i: IBNET consultant 12,439 16,500 4,061 8,806 12,000 3,194 B.1.ii: TA for Preparation of PADs for the Municipalities 13,500 - (13,500) 17,500 25,000 7,500 B.1.iii: WWT Study 60,000 60,000 - - - - B.2.Strengthening Capacity of Mun. and CSE's to Improve Services - - - - - - B.2.i: Monithoring and Evaluation of CSE`s (multiply) - 5,000 5,000 - - - B.2.ii: Programme for reduction of non-reven water (multiply) - 7,950 7,950 - - - B.3.Development strategy for Fin. Intermediaries in Mun. Investments - - - - - - B.4.Project Introduction and sub-project implementation workshop - - - - - - B.4.i: Follow-up workshop on feasibility study preparation - - - - - - B.4.ii: Operation and Maintenance - - - - - - B.4.i: Prepar. of detailed design and tender doc. - - - - 2,000 2,000 B.4.ii: Contrat management and administration - - - - 1,549 1,549 B.5 TA for review of legal, regulatory framework for sovereign debt - - - - - - B.5.ii.Contract MSIP PMU-CS-SSS-B5-1 - - - - - - B.5.i.Contract MSIP PMU-CS-SSS-B5-2 - - - - - - B.5.iii Workshop - - - - - - Payments without contract - - - - - - Sub-total Component B - Original Loan 85,939 89,450 3,511 26,306 40,549 14,243 Municipal Services Improvement Project - Additional Financing B.1.AF. Contract - - - - - - B.2.AF. Contract - - - - - - B.3.AF. Contract - - - - - - B.4.AF. Contract - - - - - - Sub-total Component B - Additional Financing - - - - - - Total Component B 85,939 89,450 3,511 26,306 40,549 14,243 Ministry of Finance of the Republic of Macedonia 10 “Municipal Services Improvement Project” IBRD Loan number 7699-MK, Loan number 8158-MK, EC IPA Grant No. TF 018812 and Loan number 8561-MK Project’s Financial Statements 31 December 2017 (Amounts in EUR) Statement of Uses of Funds by Project Activity (continued) For the period from For the period from 01 January 2017 through 01 January 2016 through 31 December 2017 31 December 2016 Actually Actually disbursed Budget Variance disbursed Budget Variance C. Performance - Based Investment Grants Municipal Services Improvement Project - Original Loan C.01. KOCANI GA-01 - - - - - - C.02. CITY of SKOPJE GA-02 - - - - - - C.03. VEVCHANI GA-03 - - - - - - C.04. VASILEVO GA-04 - - - - - - C.05. MOGILA GA-05 - - - - - - C.06. KRUSHEVO GA-06 - - - - - - C.07. BOGDANCI GA-07 - - - - - - C.09 BOSILOVO GA – 09 - - - - - - C.11 DOLNEN GA – 11 - - - - - - C.12 GRADSKO GA – 12 873 873 - 16,590 16,590 - C.13 GORCE PETROV GA – 13 1,724 64,335 62,611 59,938 59,938 - C.14 PRILEP GA – 14 - - - 50,268 50,268 - C.17 ILINDEN GA – 17 - - - 37,704 - (37,704) C.18 MOGILA GA – 18 - - - 3,416 3,416 - C.19 PEHCEVO GA – 19 13,665 13,665 - - - - Other grant agreements - - - - - - Sub- total Component C - Original Loan 16,262 78,873 62,611 167,916 130,212 (37,704) Municipal Services Improvement Project - Additional Financing C.1.AF. Contract - - - - - - C.2.AF. Contract - - - - - - C.3.AF. Contract - - - - - - C.4.AF. Contract - - - - - - C.8 AF Berovo GA – 08 - - - - - - C.10 AF Bosilovo GA – 10 - - - - - - C.14 AF Rankovce GA – 14 - - - 27,788 27,788 - C.15 AF Prilep GA – 15 5,232 77,231 71,999 68,058 - (68,058) C.20 AF Pehchevo GA - 20 22,199 22,199 - - - - C.21 AF Kriva Palanka GA - 21 42,100 42,100 - - - - C.22 AF Caska GA - 22 53,065 53,065 - - - - C.23 AF Probishtip GA - 23 38,926 38,926 - - - - C.25 AF Zelino GA - 25 22,132 22,132 - - - - Sub- total Component C - Additional Financing 183,654 255,653 71,999 95,846 27,788 (68,058) Total Component C 199,916 334,526 134,610 263,762 158,000 (105,762) D. Project Management and Operating Cost Municipal Services Improvement Project - Original Loan PMU staff MSIP PMU 07 - Project director - - - - - - MSIP PMU 02 - FM specialist - - - - - - MSIP PMU 03 - Procurement specialist - - - - - - MSIP PMU 08 - Procurement specialist - - - - - - MSIP PMU 04 - Civil Engineer - - - - - - MSIP PMU 05 - Office Manager - - - - - - MSIP PMU 09 - Office Manager 2 - - - - - - MSIP PMU 11 - Civil engineer 2 - - - - - - MSIP PMU 12 - Administrative officer - - - - - - MSIP PMU 13- Civil engineer 2 - - - - - - Part time personnel MSIP PMU 06 - Environment consultant 5,474 - (5,474) 17,912 3,979 (13,933) MSIP PMU 10 - Performance grant consultant 3,933 - (3,933) - 19,805 19,805 Ministry of Finance of the Republic of Macedonia 11 “Municipal Services Improvement Project” IBRD Loan number 7699-MK, Loan number 8158-MK, EC IPA Grant No. TF 018812 and Loan number 8561-MK Project’s Financial Statements 31 December 2017 (Amounts in EUR) Statement of Uses of Funds by Project Activity (continued) For the period from For the period from 01 January 2017 through 01 January 2016 through 31 December 2017 31 December 2016 Actually Actually disbursed Budget Variance disbursed Budget Variance Other specialists - - - - 53,199 53,199 Project Financial Audit 7,519 7,000 (519) 7,519 7,000 (519) Other costs - - - MSIP PMU – Furniture - - - - - - MSIP PMU 01 - SH - IT equipment 2,882 3,946 1,064 327 3,955 3,628 MSIP PMU 02 - SH – Vehicle - - - - 15,010 15,010 MSIP PMU SH 04 FM software - - - - 3,171 3,171 Training for the PMU staff 3,332 8,000 4,668 890 163 (727) Payments without contract - - - - - - Other costs 10,903 12,000 1,097 12,323 6,000 (6,323) Sub-total Component D - Original Loan 34,043 30,946 (3,097) 38,971 112,282 73,311 Municipal Services Improvement Project - Additional Financing AF Project Director - - - 726 38,853 38,127 AF FM Specialist 22,200 22,200 - 23,772 36,220 12,448 AF Procurement specialist 21,000 21,000 - 22,572 37,020 14,448 AF Construction Engineer 1 21,000 21,000 - 22,643 10,000 (12,643) AF Construction Engineer 2 17,148 51,444 34,296 18,577 - (18,577) AF Construction Engineer 3 17,148 51,444 34,296 18,577 5,000 (13,577) AF Construction Engineer 4 17,148 37,868 20,720 18,577 5,000 (13,577) AF Office Manager/Translator 12,000 37,551 25,551 13,000 12,000 (1,000) AF Administrative/Operative Assistant 12,000 36,000 24,000 13,000 12,000 (1,000) AF FM assistant 13,200 33,000 19,800 14,300 29,500 15,200 Sub-total Component D - Additional Financing 152,844 311,507 158,663 165,744 185,593 19,849 Total Component D 186,887 342,453 155,566 204,715 297,875 93,160 Component E: IPA Rural Investment Window E.1.Investment grants KRATOVO IPA GRANT 112,449 160,000 47,551 115,735 - (115,736) BEROVO IPA GRANT 1 7,372 125,142 117,770 117,772 - (117,772) ILINDEN IPA GRANT 87,160 260,000 172,840 156,149 260,000 103,851 CENTAR ZUPA IPA GRANT 39,108 30,000 (9,108) 220,891 260,000 39,109 BOGDANCI IPA GRANT 167,092 180,000 12,908 76,991 260,000 183,009 MAK. KAMENICA IPA GRANT 222,797 240,000 17,203 37,202 260,000 222,798 KRUSHEVO IPA GRANT 83,241 110,000 26,759 129,779 260,000 130,221 MAK. BROD IPA GRANT 94,869 110,000 15,131 148,843 260,000 111,157 BOSILOVO IPA GRANT 129,755 140,000 10,245 121,073 260,000 138,927 VEVCHANI IPA GRANT 163,135 160,000 (3,135) 87,219 260,000 172,781 BEROVO IPA GRANT 2 - - - - - - RESEN IPA GRANT 84,858 200,000 115,142 55,928 260,000 204,072 BOGOVINJE IPA GRANT 172,047 160,000 (12,047) 80,086 - (80,086) VASILEVO IPA GRANT 161,705 87,331 (74,374) - 187,333 187,333 MOGILA IPA GRANT 141,438 160,000 18,562 - 260,000 260,000 RADOVISH IPA GRANT 107,443 160,000 52,557 112,115 260,000 147,885 GAZI BABA IPA GRANT 105,748 120,000 14,252 - 120,000 120,000 KRIVOGASHTANI IPA GRANT 104,935 260,000 155,065 - 260,000 260,000 GRADSKO IPA GRANT 260,000 160,000 (100,000) - 260,000 260,000 PROBISHTIP IPA GRANT 207,295 260,000 52,705 20,283 - (20,281) ZRNOVCE IPA GRANT 259,421 260,000 579 - 160,000 160,000 MAVROVO ROSTUSHE IPA GRANT - - - - 200,000 200,000 DEMIR HISAR IPA GRANT 196,749 200,000 3,251 - 60,000 60,000 GEVGELIJA IPA GRANT 260,000 160,000 (100,000) - 100,000 100,000 STUDENICANI IPA GRANT 248,544 260,000 11,456 - 100,000 100,000 DEMIR KAPIJA IPA GRANT 71,823 260,000 188,177 - - - PLASNICA IPA GRANT 212,272 240,000 27,728 - - - NEGOTINO IPA GRANT 99,520 110,000 10,480 - - - Ministry of Finance of the Republic of Macedonia 12 “Municipal Services Improvement Project” IBRD Loan number 7699-MK, Loan number 8158-MK, EC IPA Grant No. TF 018812 and Loan number 8561-MK Project’s Financial Statements 31 December 2017 (Amounts in EUR) Statement of Uses of Funds by Project Activity (continued) 01 January 2017 through 01 January 2016 through 31 December 2017 31 December 2016 Actually Actually disbursed Budget Variance disbursed Budget Variance TEARCE IPA GRANT 228,039 200,000 (28,039) - - - KRIVA PALANKA IPA GRANT 118,856 260,000 141,144 - - - KUMANOVO IPA GRANT 76,103 75,962 (141) - - - VELES IPA GRANT 113,850 120,000 6,150 - - - KONCE IPA GRANT 66,756 170,000 103,244 - - - AERODROM IPA GRANT - 120,000 120,000 - - - ROSOMAN IPA GRANT 253,237 260,000 6,763 - - - DEBAR IPA GRANT 249,023 260,000 10,977 - - - VRABCISHTE IPA GRANT 237,896 200,000 (37,896) - - - KARBINCI IPA GRANT 123,125 260,000 136,875 - - - KISELA VODA IPA GRANT - 60,000 60,000 - - - JEGUNOVCE IPA GRANT 251,723 150,000 (101,723) - - - ZELINO IPA GRANT 230,800 200,000 (30,800) - - - SHUTO ORIZARI IPA GRANT 74,008 120,000 45,992 - - - LIPKOVO IPA GRANT 248,863 100,000 (148,863) - - - PEHCEVO IPA GRANT 85,089 260,000 174,911 - - - KAVADARCI IPA GRANT 108,980 100,000 (8,980) - - - ZELENIKOVO IPA GRANT 31,491 200,000 168,509 - - - SOPISHTE IPA GRANT 8,135 91,424 83,289 - - - KOCANI IPA GRANT 127,767 200,000 72,233 - - - BUTEL IPA GRANT - 120,000 120,000 - - - DELCEVO IPA GRANT 18,181 200,000 181,819 - - - DOLNENI IPA GRANT - 70,000 70,000 - - - KICEVO IPA GRANT - 170,000 170,000 - - - SVETI NIKOLE IPA GRANT - 50,000 50,000 - - - BRVENICA IPA GRANT 167,642 260,000 92,358 - - - LOZOVO IPA GRANT - 200,000 200,000 - - - KARPOSH IPA GRANT - 70,000 70,000 - - - BITOLA IPA GRANT - 20,000 20,000 - - - OHRID IPA GRANT - 20,000 20,000 - - - CESHINOVO OBLESHEVO IPA GRANT - 50,000 50,000 - - - SHTIP IPA GRANT - 70,000 70,000 - - - IPA investment grants - other municipalities - - - - - - Sub-total Component E1 for MSIP: 6,620,340 9,279,859 2,659,519 1,480,066 4,307,333 2,827,267 E.2.Technical assistance IPA Technical assistance (multiply contracts) 475 400,000 399,525 - 900,000 900,000 Sub-total Component E2 for MSIP: 475 400,000 399,525 - 900,000 900,000 E.3.Operational costs IPA Operational costs (multiply contracts) 3,558 150,500 146,942 - 600,000 600,000 Sub-total Component E3 for MSIP: 3,558 150,500 146,942 - 600,000 600,000 Total Component E 6,624,373 9,830,359 3,205,986 1,480,066 5,807,333 4,327,267 Front End Fee - Original Loan - - - - - - Front End Fee - Additional Financing - - - - - - Total Project Expenditures by activity 13,733,542 19,463,639 5,730,097 10,722,955 21,448,638 10,725,683 Ministry of Finance of the Republic of Macedonia 13 “Municipal Services Improvement Project” IBRD Loan number 7699-MK, Loan number 8158-MK, EC IPA Grant No. TF 018812 and Loan number 8561-MK Project’s Financial Statements 31 December 2017 Statement of Unit of Output by Project Activity Cumulative for the period from 29 June 2009 through 31 December 2017 Paid Procurement Contracted amount in Contract Paid amount Activities from the MSIP Procurement plan amount in Euro Euro Procurement Contract amount Paid amount amount local local Commitments in Plan Euro equivalent equivalent method original currency original currency currency currency contract currency MKD MKD EUR MKD Component A: MUNICIPAL INVESTMENTS Municipal Services Improvement Project-Original Loan A.1 Sub Loan MSIP 01 - KOCANI (Pipe Replacement (6km)) 577,034 577,034 577,034 ICB 35,335,224 MKD 35,335,224-MKD 35,335,224 35,335,224 - - A.1.i.ContractMSIP01/1-NCB - - - - - - - - - - A.1.ii.ContractMSIP01/2-CQ - - - - - - - - - - Kocani-Supervision of reconstruction (CS) 22,966 22,966 22,966 CQ 22,965.63 EUR 22,965.63-EUR 1,429,174 1,406,481 - - Remaining sub-loan funds - - - - - - - - - - A.2 Sub Loan MSIP 02 - BOGDANCI (Street lighting) 87,341 87,341 87,341 NCB 5,345,018 MKD 5,345,018-MKD 5,345,018 5,345,018 - - Bogdanci-Street lighting (savings) 13,151 13,151 13,151 NCB 804,983 MKD 804,983-MKD 804,983 804,982 - - A.2.i. Contract MSIP 02/1-NCB - - - - - - - - - - A.2 .ii. Contract MSIP G NSB 004/11 - - - - - - - - - - A.3 Sub Loan MSIP 03-SKOPJE (Vehicles and bins for solid waste) 1,798,300 1,798,300 1,798,300 ICB 1,798,300 EUR 1,798,300-EUR 110,207,127 110,207,127 - - Skopje-Wastebins for public hygiene 748,800 748,800 748,800 NCB 748,800 EUR 748,800-EUR 45,838,024 45,838,024 - - A.3.i.Contract MSIP 03/ 1-ICB - - - - - - - - - - A.3.ii.Contract MSIP 03/2-ICB - VAT 427,722 427,722 427,722 NA 427,721.83 EUR 427,721.83-EUR 26,187,300 26,187,300 - - Ministry of Finance of the Republic of Macedonia 14 “Municipal Services Improvement Project” IBRD Loan number 7699-MK, Loan number 8158-MK, EC IPA Grant No. TF 018812 and Loan number 8561-MK Project’s Financial Statements 31 December 2017 Cumulative for the period from 29 June 2009 through Statement of Unit of Output by Project Activity (continued) 31 December 2017 Paid Procurement Contracted amount in Contract Activities from the MSIP Procurement plan amount in Euro Euro Procurement Contract amount Paid original amount local Paid amount Commitments in Plan Euro equivalent equivalent method original currency currency currency local currency contract currency MKD MKD EUR MKD A.4 Sub Loan MSIP 04 - ILINDEN (Heating and Cooling of Municipal Buildings) Ilinden-Geotermal pumps 230,486 230,486 230,486 NCB 14,108,696 MKD 14,108,696-MKD 14,108,696 14,108,696 - - A.4.i.ContractMSIPNCB003/10 - - - - - - - - - - A.4 Sub Loan MSIP 04-2 - ILINDEN (Heating and Cooling in House of Culture) 146,430 146,430 146,430 NCB 8,961,938 MKD 8,961,938-MKD 8,961,938 8,961,938 - - A.4.ii. Contract MSIP NCB - - - - - - - - - - A.5 Sub Loan MSIP 05- KISELA VODA ( Drainage Systems) - - - - - - - - - - Kisela Voda-Storm water system- 11Octomber 680,744 680,744 680,744 ICB 41,674,782 MKD 41,674,783-MKD 41,674,783 41,674,782 - - KiselaVoda-Storm water system- Mariovska 229,634 229,634 229,634 ICB 14,054,281 MKD 14,054,281-MKD 14,054,281 14,054,280 - - A.5 Sub Loan MSIP 05/2 - KISELA VODA (Water supply systems) 638,379 638,379 638,379 NCB 39,085,146 MKD 39,085,146-MKD 39,085,146 39,085,146 - - A.5.i. Contract MSIP W ICB 003/11- Lot1 - - - - - - - - - - A.5.ii. Contract MSIP W ICB 003/11- Lot2 - - - - - - - - - - A.5.iii. Contract MSIP W NCB 005/11 A.6 Sub Loan MSIP 06 STIP (Arrangement of the central city area) 278,445 278,445 278,445 NCB 17,053,273 MKD 17,053,273-MKD 17,053,273 17,053,272 - - Stip-Rehabil. of river banks and parking lots 271,679 271,679 271,679 ICB 271,678.85 EUR 271,678.85-EUR 16,632,574 16,632,574 - - A.6.i. Contract MSIP W NCB 008-11 - - - - - - - - - - A.6.ii. Contract MSIP W ICB - - - - - - - - - - Returned sub-loan funds due to termination of the Sub-loan Agreement (550,124) (550,124) (550,124) NA (550,124.32) EUR (550,124.32)-EUR (33,685,847) (33,685,847) - - A.7 Sub Loan MSIP 07- PEHCEVO (Vehicles for solid waste) 68,551 68,551 68,551 NCB 4,195,000 MKD 4,195,000-MKD 4,195,000 4,195,000 - - A.7.i. Contract MSIP W NCB from the sub-loan - - - - - - - - - - Ministry of Finance of the Republic of Macedonia 15 “Municipal Services Improvement Project” IBRD Loan number 7699-MK, Loan number 8158-MK, EC IPA Grant No. TF 018812 and Loan number 8561-MK Project’s Financial Statements 31 December 2017 Cumulative for the period from 29 June 2009 through Statement of Unit of Output by Project Activity (continued) 31 December 2017 Procurement Contracted Paid amount Contract Paid amount Activities from the MSIP Procurement plan amount in Euro in Euro Procureme Contract amount Paid original amount local local Commitments in Plan Euro equivalent equivalent nt method original currency currency currency currency contract currency MKD MKD EUR MKD A.8 Sub Loan MSIP 08-1 - VELES (Extension of water supply system) 685,549 685,549 685,549 NCB 41,999,428 MKD 41,999,428-MKD 41,999,428 41,999,428 - - A.8.i. Contract MSIP W NCB - - - - - - - - - - - Remaining loan funds - - - - - - - - - - Sub Loan MSIP 08-2 - VELES (Street lighting) 323,213 323,213 323,213 NCB 19,809,656 MKD 19,809,656-MKD 19,809,656 19,809,656 - - A.8.ii. Contract MSIP W NCB - - - - - - - - - - - Remaining loan funds - - - - - - - - - - A.9 Sub Loan MSIP 09 - VEVCANI (Vehicles for solid waste and Backhoe) 99,686 99,686 99,686 NCB 6,100,000 MKD 6,100,000-MKD 6,100,000 6,100,000 - - A.9.i. Contract MSIP W NCB- Lot 1 from the sub-loan - - - - - - - - - - A.9.ii. Contract MSIP W NCB-Lot 2 from the sub-loan - - - - - - - - - - A.10 Sub Loan MSIP10 - KRUSEVO (Vehicles for solid waste) 49,218 49,218 49,218 NCB 3,011,655 MKD 3,011,655-MKD 3,011,655 3,011,655 - - A.10. Contract MSIP W NCB 009-11 - - - - - - - - - - A.11 Sub Loan MSIP 11 - KICEVO (Vehicles for solid waste ) 201,434 201,434 201,434 ICB 12,327,883 MKD 12,327,883-MKD 12,327,883 12,327,883 - - Kicevo-Street Reconstruction 448,947 448,947 448,947 NCB 27,536,275 MKD 27,536,275-MKD 27,536,275 27,536,274 - - Kicevo - Procurement of solid waste vehicle 2 cont 109,616 109,616 109,616 NCB 6,726,000 MKD 6,726,000-MKD 6,726,000 6,726,000 - - A.11.1 Contract MSIP G ICB 004-11 - - - - - - - - - - A.11.2 Contract MSIP W NCB 012-12 - - - - - - - - - - - Remaining loan funds - - - - - - - - - - A.12 Sub Loan MSIP 12 - NOVACI (Street lighting) - - - - - - - - - - A.12.i Contract MSIP W NCB 130,710 130,710 130,710 NCB 8,000,000 MKD 7,999,999-MKD 7,999,975 7,999,998 - 2 A.13 Sub Loan MSIP 13 - DOLNENI (Rehabilitation of local roads) - - - - - - - - - - A.13.i Contract MSIP W NCB 266,778 266,778 266,778 NCB 16,345,302 MKD 16,345,302-MKD 16,345,302 16,345,302 - - Ministry of Finance of the Republic of Macedonia 16 “Municipal Services Improvement Project” IBRD Loan number 7699-MK, Loan number 8158-MK, EC IPA Grant No. TF 018812 and Loan number 8561-MK Project’s Financial Statements 31 December 2017 Cumulative for the period from 29 June 2009 through Statement of Unit of Output by Project Activity (continued) 31 December 2017 Procurement Contracted Paid amount Procurem Contract Activities from the MSIP Procurement plan amount in Euro in Euro ent Contract amount Paid original amount local Paid amount Commitments in Plan Euro equivalent equivalent method original currency currency currency local currency contract currency MKD MKD EUR MKD A.14 Sub Loan MSIP 14 - GJORCE PETROV (Streets reconstruction) - - - - - - - - - - A.14.i Contract MSIP W ICB 1,291,416 1,291,416 1,291,416 ICB 79,136,435 MKD 79,136,435-MKD 79,136,435 79,136,435 - - - Remaining loan funds - - - - - - - - - - A.15 Sub Loan MSIP 15 - GRADSKO (Vehicle and bins for solid waste) A.15.i Contract MSIP G NCB 77,097 77,097 77,097 NCB 4,718,820 MKD 4,718,820-MKD 4,718,820 4,718,820 - - A.15.ii Contract MSIP G SH 22,401 22,401 22,401 SH 1,371,160 MKD 1,371,160-MKD 1,371,160 1,371,160 - - A.16 Sub Loan MSIP 16 - VASILEVO (Construction of the water supply network) - - - - - - - - - - A.16.i Contract MSIP W NCB 383,578 383,578 383,578 NCB 23,493,724 MKD 23,493,724-MKD 23,493,724 23,493,724 - - A.65 Sub Loan MSIP 65 – VASILEVO(street construction Piperevo) - - - - - - - - - - A.65.i Contract MSIP W NCB 162,601 162,601 70,070 NCB 10,000,000 MKD 4,288,112-MKD 10,000,000 4,288,112 - 5,711,888 A.17 Sub Loan MSIP 17-BOSILOVO (Construction of bridge) - - - - - - - - - - A.17.i Contract MSIP W NCB 136,507 136,507 136,507 NCB 8,357,469 MKD 8,357,469-MKD 8,357,469 8,357,469 - - A.18 Sub Loan MSIP 18 - MOGILA (Reconstruction of House of Culture) - - - - - - - - - - A.18.i Contract MSIP W NCB - - - - - - - - - - A.18 Sub Loan MSIP 18/2 - MOGILA (Construction vehicle - Backhoe) 34,161 34,161 34,161 NCB 2,092,055 MKD 2,092,055-MKD 2,092,055 2,092,055 - - A.18.ii Contract MSIP G NCB 180,856 180,856 180,856 NCB 11,073,076 MKD 11,073,076-MKD 11,073,076 11,073,076 - - A.19 Sub Loan MSIP 19 - GOSTIVAR (Street lighting and Supply of basic equipment for public hygiene) - - - - - - - - - - A.19.i. Contract MSIP ICB 458,000 458,000 458,000 ICB 458,000 EUR 458,000-EUR 28,028,835 28,028,835 - - A.19.ii. Contract MSIP NCB 341,973 341,973 341,973 NCB 20,963,883 MKD 20,963,883-MKD 20,963,883 20,963,883 - - - VAT 42,702 42,702 42,702 NA 2,619,251 MKD 2,619,251-MKD 2,619,251 2,619,251 - - A.20 Sub Loan MSIP 20 - PRILEP (Streets reconstruction) - - - - - - - - - - A.20.i. Contract MSIP NCB 501,619 501,619 501,619 NCB 30,754,251 MKD 30,754,251-MKD 30,754,250 30,754,250 - - Ministry of Finance of the Republic of Macedonia 17 “Municipal Services Improvement Project” IBRD Loan number 7699-MK, Loan number 8158-MK, EC IPA Grant No. TF 018812 and Loan number 8561-MK Project’s Financial Statements 31 December 2017 Cumulative for the period from 29 June 2009 through Statement of Unit of Output by Project Activity (continued) 31 December 2017 Procurement Contracted Paid amount Procurem Contract Activities from the MSIP Procurement plan amount in Euro in Euro ent Contract amount Paid original amount local Paid amount Commitments in Plan Euro equivalent equivalent method original currency currency currency local currency contract currency MKD MKD EUR MKD A.21 Sub Loan MSIP 21 - CAIR (School/Kindergarten Insulation Project) - - - - - - - - - - A.21.i. Contract MSIP NCB 484,523 484,523 484,523 NCB 29,678,833 MKD 29,678,833-MKD 29,678,833 29,678,833 - - A.22 Sub Loan MSIP - GAZI BABA (Reconstruction of School) 1,238,052 1,238,052 1,238,052 ICB 75,880,974 MKD 75,880,974-MKD 75,880,974 75,880,974 - - Gazi Baba-fance 35,661 35,661 35,661 SH 2,188,900 MKD 2,188,900-MKD 2,188,900 2,188,900 - - Gazi Baba - audio equipement 5,969 5,969 5,969 NCB 365,280 MKD 365,280-MKD 367,088 365,280 - - Gazi Baba – furniture 66,968 66,968 66,968 NCB 4,099,880 MKD 4,099,880-MKD 4,099,880 4,099,880 - - A.22.i. Contract MSIP NCB - - - - - - - - - - - Remaining loan funds - - - - - - - - - - A.23 Sub Loan MSIP -BUTEL (Construction of School) A.23.i. Contract MSIP NCB 1,193,010 1,193,010 1,193,010 ICB 73,154,026 MKD 73,154,026-MKD 73,154,026 73,154,026 - - - Remaining loan funds - - - - - - - - - - A.24 Sub Loan MSIP - KAVADARCI (Reconstruction of Schools) A.24.i. Contract MSIP NCB 663,250 663,250 502,921 NCB 40,458,250 MKD 30,784,120-MKD 40,458,250 30,784,120 - 9,674,130 Sub Loan MSIP 03-2 CITY OF SKOPJE (Equipment for public greenery 362,050 362,050 362,050 NCB 22,201,500 MKD 22,201,500-MKD 22,201,500 22,201,500 - - Other Sub Loans OL 873,566 - - NCB - - - - - - Sub-total Component A OL 16,540,649 15,667,083 15,414,223 - - - 959,721,277 944,310,776 Municipal Services Improvement Project-Additional Financing A.AF.01 Sub Loan MSIP 22 - BEROVO (Streets reconstruction) A.AF.1.i Contract MSIP W NCB 381,637 381,637 381,637 NCB 23,374,144 MKD 23,374,144-MKD 23,374,144 23,374,144 - - A.AF.02 Sub Loan MSIP 23 - MAVROVO ROSTUSE (Streets reconstruction) A.AF.2.i Contract MSIP W NCB 199,227 199,227 199,227 NCB 12,203,575 MKD 12,203,575-MKD 12,203,575 12,203,575 - - A.AF.02 Sub Loan MSIP 23-2 - MAVROVO ROSTUSE (Street lighting) A.AF.2.ii Contract MSIP W NCB 104,731 104,731 104,731 NCB 6,426,420 MKD 6,426,420-MKD 6,426,420 6,426,420 - - A.AF.03 Sub Loan MSIP - VINICA (Vehicles for solid waste) 141,897 141,897 141,897 NCB 8,708,400 MKD 8,708,400-MKD 8,708,400 8,708,400 - - Ministry of Finance of the Republic of Macedonia 18 “Municipal Services Improvement Project” IBRD Loan number 7699-MK, Loan number 8158-MK, EC IPA Grant No. TF 018812 and Loan number 8561-MK Project’s Financial Statements 31 December 2017 Cumulative for the period from 29 June 2009 through Statement of Unit of Output by Project Activity (continued) 31 December 2017 Procurement Contracted Paid amount Procurem Contract Activities from the MSIP Procurement plan amount in Euro in Euro ent Contract amount Paid original amount local Paid amount Commitments in Plan Euro equivalent equivalent method original currency currency currency local currency contract currency MKD MKD EUR MKD A.AF.03 Sub Loan MSIP 24-2 - VINICA (Street/storm water) A.AF.3.i Contract MSIP G NCB - - - - - - - - - - A.AF.03 Sub Loan MSIP 24-2 - VINICA (Street/storm water) 711,627 711,627 711,627 NCB 43,606,046 MKD 43,606,046-MKD 43,606,046 43,606,046 - - A.AF.3.ii Contract MSIP W NCB - - - - - - - - - - - Remaining loan funds - - - - - - - - - - A.AF.04 Sub Loan MSIP - KRIVA PALANKA (Streets reconstruction) A.AF.4.i Contract MSIP G NCB 172,171 172,171 172,171 NCB 10,567,362 MKD 10,567,362-MKD 10,567,362 10,567,362 - - A.AF.4.ii Contract MSIP W NCB 668,946 668,946 668,946 NCB 40,983,177 MKD 40,983,177-MKD 40,983,177 40,983,177 - - A.AF.05 Sub Loan MSIP - RANKOVCE (Streets reconstruction) A.AF.5.i Contract MSIP W NCB 277,963 277,963 277,963 NCB 17,042,511 MKD 17,042,511-MKD 17,042,511 17,042,511 - - - Remaining loan funds - - - - - - - - - - A.AF.06 Sub Loan MSIP – BOSILOVO (Streets reconstruction) A.AF.6.i Contract MSIP W NCB 400,087 400,087 400,087 NCB 24,499,519 MKD 24,499,519-MKD 24,499,519 24,499,519 - - A.AF.07 Sub Loan MSIP 29 - PRILEP (Streets reconstruction) A.AF.7.i Contract MSIP W NCB 774,232 774,232 774,232 NCB 47,497,381 MKD 47,497,381-MKD 47,497,381 47,497,381 - - - Remaining loan funds - - - - - - - - - - A.AF.08 Sub Loan MSIP 30 - PETROVEC (Reconstruction of School) A.AF.8.i Contract MSIP W NCB 1,429,451 1,429,451 1,429,451 ICB 87,627,773 MKD 87,627,773-MKD 87,627,773 87,627,773 - - - Remaining loan funds - - - - - - - - - - A.AF.09 Sub Loan MSIP 31 - CASKA (Street reconstruction and water reservoir) A.AF.9.i Contract MSIP W NCB 531,266 531,266 531,266 NCB 32,578,904 MKD 32,578,904-MKD 32,578,904 32,578,904 - - A.AF.10 Sub Loan MSIP 32 - PROBISHTIP (Street reconstruction) A.AF.10.i Contract MSIP W NCB 408,645 408,645 408,645 NCB 25,036,908 MKD 25,036,908-MKD 25,036,908 25,036,908 - - A.AF.10.i Contract MSIP W NCB 2 52,075 52,075 52,075 SH 3,196,822 MKD 3,196,822-MKD 3,196,822 3,196,822 - - - Remaining loan funds - - - - - - - - - - A.AF.11 Sub Loan MSIP 33 - PEHCEVO (Street reconstruction) A.AF.11.i Contract MSIP W NCB 111,125 111,125 111,125 NCB 6,814,777 MKD 6,814,777-MKD 6,814,777 6,814,777 - - - Remaining loan funds - - - - - - - - - - Ministry of Finance of the Republic of Macedonia 19 “Municipal Services Improvement Project” IBRD Loan number 7699-MK, Loan number 8158-MK, EC IPA Grant No. TF 018812 and Loan number 8561-MK Project’s Financial Statements 31 December 2017 Cumulative for the period from 29 June 2009 through Statement of Unit of Output by Project Activity (continued) 31 December 2017 Procurement Contracted Paid amount Contract Activities from the MSIP Procurement plan amount in Euro in Euro Procureme Contract amount Paid original amount local Paid amount Commitments in Plan Euro equivalent equivalent nt method original currency currency currency local currency contract currency MKD MKD EUR MKD A.AF.12 Sub Loan MSIP 35 - KRUSEVO (Installation of water meters) A.AF.12.i Contract MSIP W NCB 83,565 83,565 83,565 NCB 5,129,388 MKD 5,129,388-MKD 5,129,388 5,129,388 - - - Remaining loan funds - - - - - - - - - - A.AF.13 Sub Loan MSIP 36 - DOJRAN (Purchasing of communal vehicles) A.AF.13.i Contract MSIP G NCB 130,586 130,033 130,586 NCB 7,997,000 MKD 7,997,000-MKD 7,997,000 7,997,000 - - A.AF.14 Sub Loan MSIP 37 -OHRID (Purchasing of communal vehicles and street reconstruction) A.AF.14.i Contract MSIP G ICB 1,314,194 1,314,194 1,314,194 ICB 80,631,634 MKD 80,631,634-MKD 80,631,634 80,631,634 - - A.AF.14.ii Contract MSIP W ICB 306,328 306,328 306,328 ICB 306,328 EUR 306,328-EUR 18,839,172 18,804,404 - - Ohrid AF - remaining sub-loan 445,392 - - NCB - - - - - - A.AF.15 Sub Loan MSIP 38 - KARPOSH (Street and storm water reconst.) A.AF.15.i Contract MSIP W NCB 574,803 574,803 574,803 NCB 35,271,129 MKD 35,271,129 -MKD 35,271,129 35,271,129 - - Karposh AF - remaining sub loan - - - - - - - - - - A.AF.16 Sub Loan MSIP 39 - SHUTO ORIZARI (Water supply system) A.AF.16.i Contract MSIP W ICB 495,571 495,571 446,291 ICB 30,477,600 MKD 27,384,762-MKD 30,477,600 27,384,762 - 3,092,838 A.AF.17 Sub Loan MSIP 40 - CITY OF SKOPJE (Water supply system) A.AF.17.i Contract MSIP W ICB 1,725,224 1,725,224 1,676,650 ICB 106,101,286 MKD 102,814,627-MKD 106,101,286 102,814,627 - 3,286,659 A.AF.18 Sub Loan MSIP 41 - ZELINO (Street and storm water reconst.) A.AF.18.i Contract MSIP W ICB 220,634 220,634 220,634 NCB 13,539,440 MKD 13,539,440-MKD 13,539,440 13,539,440 - - A.AF.19 Sub Loan MSIP 42 - ROSOMAN (Water reservoire) A.AF.19.i Contract MSIP W ICB 69,723 69,547 69,723 NCB 4,277,115 MKD 4,277,115-MKD 4,277,115 4,277,115 - - A.AF.20 Sub Loan MSIP 43 - KOCANI (Street construction) A.AF.20.i Contract MSIP W ICB 932,510 932,510 932,510 ICB 57,174,358 MKD 57,174,358-MKD 57,174,358 57,174,358 - - Kocani AF - Remaining Sub-loan 67,081 - - NCB - - - - - - Ministry of Finance of the Republic of Macedonia 20 “Municipal Services Improvement Project” IBRD Loan number 7699-MK, Loan number 8158-MK, EC IPA Grant No. TF 018812 and Loan number 8561-MK Project’s Financial Statements 31 December 2017 Cumulative for the period from 29 June 2009 through Statement of Unit of Output by Project Activity (continued) 31 December 2017 Procurement Contracted Paid amount Contract Activities from the MSIP Procurement plan amount in Euro in Euro Procureme Contract amount Paid original amount local Paid amount Commitments in Plan Euro equivalent equivalent nt method original currency currency currency local currency contract currency MKD MKD EUR MKD A.AF.21 Sub Loan MSIP 44 - GORCE PETROV (Street construction) A.AF.21.i Contract MSIP W ICB 743,827 782,954 782,954 ICB 47,987,454MKD 47,987,454- MKD 47,987,454 47,987,454 - - Gorce Petrov AF - Remaining Sub-loan 555,814 555,814 61,090 NCB 28,081,981 MKD 3,737,663-MKD 28,081,981 3,737,663 - 24,344,318 A.AF.22 Sub Loan MSIP 45 - NEGOTINO (Water pipe replacement ) A.AF.22.i Contract MSIP W ICB 624,994 624,994 469,834 ICB 38,437,125 MKD 28,787,543-MKD 38,437,125 28,787,543 - 9,649,582 Negotino - Remaining Sub-loan 287,523 - - NCB - - - - - - DELCEVO - AF MSIP Subloan 46 Delcevo - Extension of kindergarten 302,433 302,433 302,433 NCB 18,526,352 MKD 18,526,352-MKD 18,526,352 18,526,352 - - MAKEDONSKA KAMENICA - AF Subloan MSIP 47 MK.Kamenica - Reconstruction of cultural center 705,821 705,821 705,821 ICB 43,214,342 MKD 43,214,342-MKD 43,214,342 43,214,342 - - SVETI NIKOLE - AF Subloan MSIP 48 Sv.Nikole - Reconstruction of streets 776,640 776,640 776,640 NCB 47,602,286 MKD 47,602,286-MKD 47,602,286 47,602,286 - - BITOLA - AF Subloan MSIP 49 Bitola - Construction of seven streets 2,484,684 2,484,684 692,824 ICB 152,808,066 MKD 42,430,258-MKD 152,808,066 42,430,258 - 110,377,808 Bitola - Supervision of construction of streets 50,000 50,000 35,736 SIC 3,075,031 MKD 2,188,805-MKD 3,075,031 2,188,805 - 886,226 CITY SKOPJE - AF Sub loan 50 Skopje - Rehabilitation of Boris Trajkovski street 3,709,994 3,709,994 2,837,290 ICB 228,164,595 MKD 173,814,715-MKD 228,164,595 173,814,715 - 54,349,880 Skopje - Remaining Sub-loan 490,006 - - NCB - - - - - - RADOVISH-AF Sub Loan MSIP 51 Radovis - Construction of street 484,009 484,009 484,009 NCB 29,703,396 MKD 29,703,396-MKD 29,766,070 29,703,396 - - Radovis - Supervision of construction of street 12,699 12,699 12,699 NCB 778,210 MKD 778,210-MKD 780,989 778,210 - - Radovis-Remaining sub-loan 148,863 - - - - - - - - KRIVOGASHTANI - AF Sub Loan MSIP 52 Krivogastani - Construction of streets 176,353 176,353 176,353 NCB 10,791,288 MKD 10,791,288-MKD 10,791,288 10,791,288 - - Ministry of Finance of the Republic of Macedonia 21 “Municipal Services Improvement Project” IBRD Loan number 7699-MK, Loan number 8158-MK, EC IPA Grant No. TF 018812 and Loan number 8561-MK Project’s Financial Statements 31 December 2017 Cumulative for the period from 29 June 2009 through Statement of Unit of Output by Project Activity (continued) 31 December 2017 Procurement Contracted Paid amount Contract Activities from the MSIP Procurement plan amount in Euro in Euro Procureme Contract amount Paid original amount local Paid amount Commitments in Plan Euro equivalent equivalent nt method original currency currency currency local currency contract currency MKD MKD EUR MKD SOPISTE - AF Sub Loan MSIP 54 Sopishte AF - Construction of streets/roads 658,838 658,838 522,396 NCB 40,518,538 MKD 31,966,665-MKD 40,518,538 31,966,665 - 8,551,873 KRATOVO - AF Sub Loan MSIP 55 Kratovo AF - Construction of Green Market 514,471 430,755 430,755 NCB 26,375,248 MKD 26,375,248-MKD 26,375,248 26,375,248 - - LIPKOVO - AF Sub Loan MSIP 56 Lipkovo AF - Schools Energy Efficiency 480,120 480,120 480,120 NCB 29,389,469 MKD 29,389,469-MKD 29,389,469 29,389,469 - - MAKEDONSKI BROD – AF Sub Loan MSIP 58 Makedonski Brod-Construction of local roads 1,014,759 1,014,759 787,490 NCB 62,407,679 MKD 48,257,173-MKD 62,407,679 48,257,173 - 14,150,505 DEMIR KAPIJA - AF Sub Loan MSIP 57 Demir Kapija-Reconstruction of streets 443,452 431,328 431,328 NCB 26,425,056 MKD 26,425,056-MKD 26,425,056 26,425,056 - - CHESINOVO OBLESHEVO– AF Sub Loan MSIP 59 Chesinovo Obleshevo-Water supply 322,187 322,187 249,745 NCB 19,814,500 MKD 15,287,134-MKD 19,814,500 15,287,134 - 4,527,366 ZRNOVCE – AF Sub Loan MSIP 60 Zrnovce-Kindergarten and local streets 146,432 146,432 146,432 NCB 8,974,879 MKD 8,974,875-MKD 8,974,879 8,974,875 - 4 GEVGELIJA –AF Sub Loan MSIP 61 Gevgelija-Water supply system 1,357,259 1,357,259 651,222 - - 83,471,428 39,850,041 - 43,621,387 DEMIR HISAR – AF Sub Loan MSIP 62 Demir Hisar-Construction of local road 246,871 246,871 - NCB 15,059,131 MKD - 15,059,131 - - 15,059,131 DEBRCA – AF Sub Loan MSIP 63 Debrca-Communal vehicle 50,555 50,555 50,555 NCB 3,100,000 MKD 3,100,000-MKD 3,100,000 3,100,000 - - A. Other Sub Loans AF 1,953,705 - - NCB - - - - - - Sub-total Component A AF 31,473,000 28,022,988 23,208,090 - - - 1,714,373,348 1,422,375,549 Total Component A 48,013,649 43,690,071 38,622,313 - - - 2,674,094,625 2,366,686,325 Ministry of Finance of the Republic of Macedonia 22 “Municipal Services Improvement Project” IBRD Loan number 7699-MK, Loan number 8158-MK, EC IPA Grant No. TF 018812 and Loan number 8561-MK Project’s Financial Statements 31 December 2017 Cumulative for the period from 29 June 2009 through Statement of Unit of Output by Project Activity (continued) 31 December 2017 Procurement Contracted Paid amount Contract Activities from the MSIP Procurement plan amount in Euro in Euro Procureme Contract amount Paid original amount local Paid amount Commitments in Plan Euro equivalent equivalent nt method original currency currency currency local currency contract currency MKD MKD EUR MKD Component B: CAPACITY BUILDING AND INSTITUTIONAL STRENGTHENING Municipal Services Improvement Project-Original Loan B.1 TA support to Municipalities and CSE's for Sub-project preparation (Multiply Contracts) B.1.i: IBNET consultant 59,550 59,550 46,159 SIC 59,550 EUR 46,046.21-EUR 3,662,325 2,829,768 13,504 - B.1.ii:TA for Preparation of PADs for the Municipalities 70,000 70,000 58,500 SIC 70,000 EUR 58,499.99-EUR 4,305,000 3,587,807 11,500 - B.1.ii: Contract 60,000 60,000 60,000 SIC 60,000 EUR 60,000-EUR 3,690,000 3,695,478 - - Total B.1 189,550 189,550 164,659 - - - 11,657,325 10,113,053 - - B.2 Strengthening Capacity of Municipalities and CSE's to Improve Performance in Services B.2.i: Monitoring and evaluation of CSE's 5,000 - - SIC - - - - - - B.2.ii: Financial and accounting systems 5,000 - - SIC - - - - - - B.2.iii: Programmes for reduction of non-revenue waters 7,950 - - SIC - - - - - - Total B.2 17,950 - - - - - - - - - B.3.: Development of strategy for Involvement of Financial Intermediaries in Municipal Investments (Multiply Contracts) 20,000 - - SIC - - - - - - Total B.3 20,000 - - - - - - - - - B.4 Project Introduction and sub-project implementation workshop for strengthening the Capacity of Municipalities and CSE's (Multiply Workshop) B.4.i: Follow-up seminar of feasibility study preparation for sub-projects (multiply) 2,000 505 505 Training 30,835 MKD 30,835-MKD 30,835 30,835 - - B.4.ii: Preparation of detailed design and tender documents (multiply) 2,000 - - SIC - - - - - - Ministry of Finance of the Republic of Macedonia 23 “Municipal Services Improvement Project” IBRD Loan number 7699-MK, Loan number 8158-MK, EC IPA Grant No. TF 018812 and Loan number 8561-MK Project’s Financial Statements 31 December 2017 Cumulative for the period from 29 June 2009 through Statement of Unit of Output by Project Activity (continued) 31 December 2017 Procurement Contracted Paid amount Contract Activities from the MSIP Procurement plan amount in Euro in Euro Procureme Contract amount Paid original amount local Paid amount Commitments in Plan Euro equivalent equivalent nt method original currency currency currency local currency contract currency MKD MKD EUR MKD B.4.iii: Contract Management and Administration training workshop (multiply) 1,549 - - SIC - - - - - - B.4.iv: Operation and maintenance (multiply) 3,118 3,118 3,118 Training 191,193 MKD 191,193-MKD 191,193 191,193 - - Total B.4 8,667 3,623 3,623 - - - 222,028 222,028 - - B.5 TA for review of legal, regulatory framework for sovereign debt - - - - - - - - - - B.5.ii.Contract MSIP PMU-CS-SSS-B5- 1 - - - - - - - - - - B.5.i.Contract MSIP PMU-CS-SSS-B5-2 - - - - - - - - - - B.5.iii Workshop - - - - - - - - - - International expert for PDL review 12,215 12,215 12,215 SIC 15,800 USD 15,800-USD 747,610 747,610 - - Int.expert - Sub-sovereign borrowing workshop 7,470 7,470 7,470 SSS 8,240 USD 8,240-USD 457,127 457,127 - - Sub-sovereign borrowing policy workshop 196 196 196 Training 12,127 MKD 12,127-MKD 12,127 12,127 - - Total B.5 19,881 19,881 19,881 - - - 1,216,864 1,216,864 - - Sub-total Component B OL 256,048 213,054 188,163 - - - 13,096,217 11,551,945 - - Municipal Services Improvement Project-Additional Financing B.1.AF. Contract 1,824,700 - - SIC - - - - - - B.2.AF. Contract - - - - - - - - - - B.3.AF. Contract - - - - - - - - - - B.4.AF. Contract - - - - - - - - - - Sub-total Component B AF 1,824,700 - - - - - - - - Total Component B 2,080,748 213,054 188,163 - - - 13,096,217 11,551,945 - - Ministry of Finance of the Republic of Macedonia 24 “Municipal Services Improvement Project” IBRD Loan number 7699-MK, Loan number 8158-MK, EC IPA Grant No. TF 018812 and Loan number 8561-MK Project’s Financial Statements 31 December 2017 Cumulative for the period from Statement of Unit of Output by Project Activity (continued) 29 June 2009 through 31 December 2017 Procurement Contracted Paid amount Contract Activities from the MSIP Procurement plan amount in Euro in Euro Procureme Contract amount Paid original amount local Paid amount Commitments in Plan Euro equivalent equivalent nt method original currency currency currency local currency contract currency MKD MKD EUR MKD Component C: PERFORMANCE GRANTS Municipal Services Improvement Project-Original Loan C.01 KOCANI GA-01 60,029 60,029 60,029 NCB 3,674,170 MKD 3,674,170-MKD 3,674,171 3,674,170 - - C.02 CITY of SKOPJE GA-02 148,425 148,425 148,425 NCB 9,111,620 MKD 9,111,620-MKD 9,111,620 9,111,620 - - C.03 VEVCANI GA-03 19,883 19,883 19,883 NCB 1,220,000 MKD 1,220,000-MKD 1,220,000 1,220,000 - - C.03 VASILEVO GA-04 38,343 38,343 38,343 NCB 2,349,372 MKD 2,349,372-MKD 2,349,372 2,349,372 - - C.05. MOGILA GA-05 36,162 36,162 36,162 NCB 2,214,615 MKD 2,214,615-MKD 2,214,615 2,214,615 - - C.06. KRUSHEVO GA-06 9,842 9,842 9,842 NCB 602,331 MKD 602,330-MKD 602,331 602,330 - 1 C.07. BOGDANCI GA-07 16,767 16,767 16,767 NCB 1,028,610 MKD 1,028,610-MKD 1,028,610 1,028,610 - - C.07. BOGDANCI GA-07 –project 2 3,291 3,291 3,291 DC 201,390 MKD 201,390-MKD 201,390 201,390 - - C.09. BOSILOVO GA-09 27,231 27,301 27,230 SH 1,671,494 MKD 1,671,494-MKD 1,671,494 1,671,494 - - C.11. DOLNENI GA-11 26,682 26,682 26,682 NCB 1,634,530 MKD 1,634,530-MKD 1,634,530 1,634,530 - - C.12. GRADSKO GA-12 17,464 17,464 17,464 NCB 1,072,024 MKD 1,072,024-MKD 1,072,024 1,072,024 - - C.13 GORCE PETROV GA-13 64,335 64,335 61,662 NCB 3,956,822 MKD 3,773,438-MKD 3,956,822 3,773,438 - 183,384 C.14. PRILEP GA-14 50,268 50,268 50,268 NCB 3,075,425 MKD 3,075,425-MKD 3,075,425 3,075,425 - - C.17. ILINDEN GA-17 37,704 37,704 37,704 SH 2,307,063 MKD 2,307,063-MKD 2,307,063 2,307,063 - - C.18. MOGILA GA-18 3,416 3,416 3,416 SH 209,013 MKD 209,013-MKD 209,013 209,013 - - C.19 PEHCEVO GA-19 13,665 13,665 13,665 NCB 839,000 MKD 839,000-MKD 839,000 839,000 - - C.05 Other Contracts 726,493 - - NCB - - - - - - Sub-total component C OL 1,300,000 573,577 570,833 - - - 35,167,480 34,984,094 - - Municipal Services Improvement Project-Additional Financing C.08.AF BEROVO GA-08 38,109 38,109 38,109 SH 2,337,414 MKD 2,337,414-MKD 2,337,414 2,337,414 - - C.10.AF BOSILOVO GA-10 39,914 39,914 39,914 SH 2,449,952 MKD 2,449,952-MKD 2,449,952 2,449,952 - - C.14.AF RANKOVCE GA-14 27,788 27,788 27,788 SH 1,700,160 MKD 1,700,160-MKD 1,700,160 1,700,160 - - C.15.AF PRILEP GA-15 77,231 77,231 73,290 NCB 4,749,738 MKD 4,484,178-MKD 4,749,738 4,484,178 - 265,560 C.20.AF PEHCHEVO GA-20 22,199 22,199 22,199 SH 1,362,955 MKD 1,362,955-MKD 1,362,955 1,362,955 - - C.21.AF KRIVA PALANKA GA-21 42,100 42,100 42,100 NCB 2,577,527 MKD 2,577,527-MKD 2,577,527 2,577,527 - - C.22.AF CASKA GA-22 53,065 53,065 53,065 NCB 3,257,889 MKD 3,257,508-MKD 3,257,889 3,257,508 - 381 C.23.AF PROBISHTIP GA-23 38,926 38,926 38,926 NCB 2,381,416 MKD 2,381,416-MKD 2,381,416 2,381,416 - - C.25.AF ZELINO GA-25 22,132 22,132 22,132 NCB 1,353,944 MKD 1,353,944-MKD 1,353,944 1,353,944 - - Other AF grant municipalities 2,540,536 - - NCB - - - - - - Sub-total component C AF 2,902,000 361,464 357,523 - - - 22,170,995 21,905,054 - - Total Component C 4,202,000 935,041 928,356 - - - 57,338,475 56,889,148 - - Ministry of Finance of the Republic of Macedonia 25 “Municipal Services Improvement Project” IBRD Loan number 7699-MK, Loan number 8158-MK, EC IPA Grant No. TF 018812 and Loan number 8561-MK Project’s Financial Statements 31 December 2017 Cumulative for the period from 29 June 2009 through Statement of Unit of Output by Project Activity (continued) 31 December 2017 Procurement Contracted Paid amount Contract Activities from the MSIP Procurement plan amount in Euro in Euro Procureme Contract amount Paid original amount local Paid amount Commitments in Plan Euro equivalent equivalent nt method original currency currency currency local currency contract currency MKD MKD EUR MKD Component D: PROJECT MANAGEMENT AND OPERATING COST Municipal Services Improvement Project-Original Loan D.1 Project Management Unit D.1/1 PMU staff D.1/1.i. -1 Project Director 18,000 18,000 18,000 ICS 18,000 EUR 17,999.99-EUR 1,098,446 1,102,334 - - D.1/1.i. - 2 Project Director 66,000 66,000 66,000 ICS 66,000 EUR 66,000-EUR 4,043,185 4,043,186 - - D.1/1.ii. - Financial Management Specialist 63,600 63,600 63,600 SSS 63,600 EUR 63,600-EUR 3,894,565 3,894,565 - - D.1/1.iv. - 1 Procurement Manager 7,600 7,600 7,600 SSS 7,600 EUR 7,600-EUR 341,542 463,941 - - D.1/1.iv. - 2 Procurement Manager 55,364 55,364 55,364 ICS 55,364 EUR 55,364-EUR 3,381,636 3,391,636 - - D.1/1.vi. - Civil engineer 57,953 57,953 57,953 ICS 57,953 EUR 57,952.99-EUR 440,920 3,550,183 - - D.1/1.vii. - 1 Office Manager 7,200 7,200 7,200 ICS 7,200 EUR 7,200-EUR 440,920 440,917 - - D.1/1.vii. - 2 Office Manager 20,849 20,849 20,849 ICS 20,849 EUR 20,848.97-EUR 1,277,679 1,277,679 - - D.1/1.viii. 2 Civil engineer 28,355 28,355 28,355 ICS 28,355 EUR 28,354.86-EUR 1,737,693 1,737,693 - - D.1/1.ix. - Administrative officer 19,849 19,849 19,848 ICS 19,849 EUR 19,848.38-EUR 1,216,384 1,216,384 1 - D.1/1.x.- 3 Civil engineer 5,000 5,000 5,000 ICS 5,000 EUR 5,000-EUR 306,410 306,410 - - Total D.1/1 349,770 349,770 349,769 - - - 18,179,380 21,424,928 - - D.1/2.: Part time specialists (environmental, social, CBA specialist, legal specialist, monitoring, supervision…) D.1/2.i - Independent Specialist for Monitoring of Performance Grants Compliance 31,365 31,365 13,716 ICS 31,365 EUR 11,716-EUR 1,928,950 840,470 19,649 - D1/.2.ii - Safeguards Specialist (environmental) 71,832 71,832 69,487 ICS 71,832 EUR 69,487.31-EUR 4,381,752 4,259,978 2,345 - D.1/2.x- Other specialists 53,199 - - SIC - - - - - - Total D1/2 156,396 103,197 83,203 - - - 6,310,702 5,100,448 - - Total D1 506,166 452,967 432,972 - - - 24,490,082 26,525,376 - - Ministry of Finance of the Republic of Macedonia 26 “Municipal Services Improvement Project” IBRD Loan number 7699-MK, Loan number 8158-MK, EC IPA Grant No. TF 018812 and Loan number 8561-MK Project’s Financial Statements 31 December 2017 Cumulative for the period from 29 June 2009 through Statement of Unit of Output by Project Activity (continued) 31 December 2017 Procurement Contracted Paid amount Contract Activities from the MSIP Procurement plan amount in Euro in Euro Procureme Contract amount Paid original amount local Paid amount Commitments in Plan Euro equivalent equivalent nt method original currency currency currency local currency contract currency MKD MKD EUR MKD D.2 Project Financial Audit 41,300 41,300 37,998 LCS 2,539,950 MKD 2,326,715-MKD 2,539,950 2,326,715 - 213,235 D.2 Project Financial Audit - - - - - - - - - - Total D2: 41,300 41,300 37,998 - - - 2,539,950 2,326,715 - - D.3: Operating costs D.3.i: Furniture 5,744 5,744 5,744 DC 352,596 MKD 352,596-MKD 352,596 352,596 - - D.3.ii: IT equipment 14,700 10,636 10,636 SH 651,469 MKD 651,469-MKD 651,469 651,469 - - D.3.iii: Vehicle 41,930 41,930 41,930 NCB 2,571,982 MKD 2,571,982-MKD 2,571,982 2,571,982 - - D.3.iv: Software 6,260 6,260 6,260 SH 383,040 MKD 383,040-MKD 383,040 383,040 - - D.3.v: Training for PIU staff 30,000 30,000 19,059 Training 910,455 MKD 19,059.24-EUR 910,455 1,170,490 - 891,396 D.3.vi: Other operating costs (payments without contracts) - communications - - - - - - - - - - - advertising - - - - - - - - - - -translation - - - - - - - - - - -bank provision - - - - - - - - - - -petty cash - - - - - - - - - - -goods 13,750 - - - - - - - - - -other operating costs 96,200 82,390 82,390 NA 5,044,944 MKD 5,044,944-MKD 5,044,944 5,044,944 - - Total D.3 208,584 176,960 166,019 - - - 9,914,486 10,174,521 - - Sub-total component D OL 756,050 671,227 636,989 - - - 36,944,518 39,026,612 - - Municipal Services Improvement Project-Additional Financing D.1 AF Project Management Unit D.1/1 AF: PMU staff D.1/1 AF.i. - 2 Project Director (continuation) 21,154 21,154 21,154 ICS 21,154 EUR 21,153.66-EUR 1,296,876 1,296,876 - - D.1/1 AF.ii. - Financial Management Specialist (continuation) 91,014 91,014 63,264 ICS 91,014 EUR 63,079.98-EUR 5,597,361 3,877,652 27,934 - Ministry of Finance of the Republic of Macedonia 27 “Municipal Services Improvement Project” IBRD Loan number 7699-MK, Loan number 8158-MK, EC IPA Grant No. TF 018812 and Loan number 8561-MK Project’s Financial Statements 31 December 2017 Cumulative for the period from 29 June 2009 through Statement of Unit of Output by Project Activity (continued) 31 December 2017 Procurement Contracted Paid amount Contract Activities from the MSIP Procurement plan amount in Euro in Euro Procureme Contract amount Paid original amount local Paid amount Commitments in Plan Euro equivalent equivalent nt method original currency currency currency local currency contract currency MKD MKD EUR MKD D.1/1 AF.iii. - Financial Management Assistant 39,600 39,600 33,000 SIC 39,600 EUR 32990-EUR 2,435,400 2,022,602 6,610 - D.1/1 AF.iv. - 2 Procurement Manager (continuation) 87,250 87,250 60,864 ICS 87,250 EUR 60,690-EUR 5,365,875 3,730,562 26,560 - D.1/1 AF.v. - Procurement Assistant - - - - - - - - - - D.1/1 AF.vi. - Civil engineer (continuation) 88,013 88,013 61,716 ICS 88,013 EUR 60,542-EUR 5,408,311 3,782,794 27,471 - D.1/1 AF.vii. - 2 Office Manager (continuation) 44,551 44,551 36,000 ICS 44,551 EUR 35,199.99-EUR 2,739,887 2,206,582 9,351 - D.1/1 AF.viii. 2 Civil engineer (continuation) 60,018 60,018 51,443 ICS 60,018 EUR 51,444-EUR 3,717,455 3,153,199 8,574 - D.1/1 AF.ix. - Administrative officer (continuation) 42,000 42,000 36,000 ICS 42,000 EUR 36,000-EUR 2,583,000 2,206,582 6,000 - D.1/1 AF.x.- 3 Civil engineer (continuation) 60,018 60,018 51,443 ICS 60,018 EUR 51,444-EUR 3,691,107 3,153,199 8,574 - D.1/1 AF.x.- 4 Civil engineer (continuation) 46,443 46,443 37,868 SIC 46,443 EUR 37868.5-EUR 2,856,245 2,320,859 8,575 - Other local consultants 7,239 - - - - - - - - Total D.1/1 587,300 580,061 452,752 - - - 35,691,517 27,750,907 - - Total D.1 587,300 580,061 452,752 - - - 35,691,517 27,750,907 - - D.2.AF.Project Financial Audit D.2.AF. Audit extension 5,000 - - SIC - - - - - - Total D.2 5,000 - - - - - - - - - D.3.AF: Operating costs D.3.AF.i: Contract - - - - - - - - - - D.3.AF.ii: Contract - - - - - - - - - - D.3.AF.iii: Contract - - - - - - - - - - D.3.AF.iv: Training for PIU staff - - - - - - - - - - Operating costs AF(training and goods) 15,000 - - SH - - - - - - D.3.AF.v: Other operating costs (payments without contracts) 300,000 - - SH - - - - - - Total D.3 315,000 - - - - - - - - - Sub-total component D AF 907,300 580,061 452,752 - - - 35,691,517 27,750,907 - - Total Component D 1,663,350 1,251,288 1,089,741 - - - 72,636,035 66,777,519 - - Ministry of Finance of the Republic of Macedonia 28 “Municipal Services Improvement Project” IBRD Loan number 7699-MK, Loan number 8158-MK, EC IPA Grant No. TF 018812 and Loan number 8561-MK Project’s Financial Statements 31 December 2017 Cumulative for the period from 29 June 2009 through Statement of Unit of Output by Project Activity (continued) 31 December 2017 Procurement Contracted Paid amount Contract Activities from the MSIP Procurement plan amount in Euro in Euro Procureme Contract amount Paid original amount local Paid amount Commitments in Plan Euro equivalent equivalent nt method original currency currency currency local currency contract currency MKD MKD EUR MKD Component E: IPA Rural Investment Window E.1.Investment grants KRATOVO IPA GRANT 260,000 260,000 228,185 NCB 15,990,000 MKD 13,983,190-MKD 15,990,000 13,983,190 - 2,006,810 BEROVO IPA GRANT 125,142 125,142 125,143 NCB 7,657,045 MKD 7,657,045-MKD 7,657,045 7,657,045 - - BEROVO IPA GRANT 2 120,263 - - - - - - - - - RESEN IPA GRANT 260,000 260,000 140,785 NCB 15,990,000 MKD 8,625,097-MKD 15,990,000 8,625,097 - 7,364,903 ILINDEN IPA GRANT 260,000 260,000 243,309 NCB 15,990,000 MKD 13,893,282-MKD 15,990,000 13,893,282 - 2,096,718 BOGOVINJE IPA GRANT 260,000 260,000 252,134 NCB 15,990,000 MKD 15,455,109-MKD 15,990,000 15,455,109 - 534,891 CENTAR ZUPA IPA GRANT 260,000 260,000 260,000 NCB 15,910,207 MKD 15,910,207-MKD 15,910,207 15,910,207 - - VASILEVO IPA GRANT 260,000 187,331 161,705 NCB 11,520,856 MKD 9,926,246-MKD 11,520,857 9,926,246 - 1,594,610 MOGILA IPA GRANT 260,000 260,000 141,439 NCB 15,990,000 MKD 8,859,009-MKD 15,990,000 8,682,009 - 7,130,991 RADOVISH IPA GRANT 260,000 260,000 219,557 NCB 15,990,000 MKD 13,435,489-MKD 15,990,000 13,435,489 - 2,554,512 BOGDANCI IPA GRANT 260,000 260,000 244,082 NCB 15,990,000 MKD 14,944,669-MKD 15,990,000 14,944,669 - 1,045,331 NEGOTINO IPA GRANT 260,000 260,000 99,520 NCB 15,990,000 MKD 6,088,534-MKD 15,990,000 6,088,534 - 9,901,466 MAK. KAMENICA IPA GRANT 260,000 260,000 260,000 NCB 15,925,745 MKD 15,925,745-MKD 15,925,745 15,925,745 - 13,714,153 KRUSHEVO IPA GRANT 260,000 260,000 213,020 NCB 15,990,000 MKD 13,034,392-MKD 15,990,000 13,034,392 - 2,955,608 MAK. BROD IPA GRANT 260,000 260,000 243,712 NCB 15,990,000 MKD 14,922,091-MKD 15,990,000 14,922,091 - 1,067,909 BOSILOVO IPA GRANT 260,000 260,000 250,828 NCB 15,990,000 MKD 15,359,419-MKD 15,990,000 15,359,419 - 630,581 VEVCHANI IPA GRANT 260,000 260,000 250,353 NCB 15,990,000 MKD 15,325,053-MKD 15,990,000 15,325,053 - 664,947 GAZI BABA IPA GRANT 120,000 120,000 105,748 NCB 7,380,000 MKD 6,483,397-MKD 7,380,000 6,483,397 - 896,603 KRIVOGASHTANI IPA GRANT 260,000 260,000 104,934 NCB 15,990,000 MKD 6,436,187-MKD 15,990,000 6,436,187 - 9,553,813 GRADSKO IPA GRANT 260,000 260,000 260,000 NCB 15,916,007 MKD 15,916,007-MKD 15,916,007 15,916,007 - - PROBISHTIP IPA GRANT 260,000 260,000 227,579 NCB 15,990,000 MKD 13,960,777-MKD 15,990,000 13,960,777 - 2,029,223 TEARCE IPA GRANT 260,000 260,000 228,039 NCB 15,990,000 MKD 13,948,599-MKD 15,990,000 13,948,599 - 2,041,401 DEMIR KAPIJA-IPA GRANT 260,000 260,000 71,822 NCB 15,990,000 MKD 4,395,316-MKD 15,990,000 4,395,316 - 11,594,684 KRIVA PALANKA-IPA GRANT 260,000 260,000 118,856 NCB 15,990,000 MKD 7,284,783-MKD 15,990,000 7,284,783 - 8,705,217 KUMANOVO IPA GRANT 1 75,962 75,962 76,103 NCB 4,671,663 MKD 4,671,672-MKD 4,671,663 4,671,672 - (9) ZRNOVCE IPA GRANT 260,000 260,000 259,422 NCB 15,990,000 MKD 15,916,808-MKD 15,990,000 15,916,808 - 73,192 MAVROVO ROSTUSHE IPA GRANT 260,000 - - - - - - - - - DEMIR HISAR IPA GRANT 260,000 260,000 196,749 NCB 15,990,000 MKD 12,060,088-MKD 15,990,000 12,060,088 - 3,929,912 GEVGELIJA IPA GRANT 260,000 260,000 260,000 ICB 15,906,618 MKD 15,906,618-MKD 15,906,618 15,906,618 - - STUDENICANI IPA GRANT 260,000 260,000 248,544 NCB 15,990,000 MKD 15,253,793-MKD 15,990,000 15,253,793 - 736,207 Ministry of Finance of the Republic of Macedonia 29 “Municipal Services Improvement Project” IBRD Loan number 7699-MK, Loan number 8158-MK, EC IPA Grant No. TF 018812 and Loan number 8561-MK Project’s Financial Statements 31 December 2017 Cumulative for the period from 29 June 2009 through Statement of Unit of Output by Project Activity (continued) 31 December 2017 Procurement Contracted Paid amount Contract Activities from the MSIP Procurement plan amount in Euro in Euro Procureme Contract amount Paid original amount local Paid amount Commitments in Plan Euro equivalent equivalent nt method original currency currency currency local currency contract currency MKD MKD EUR MKD PLASNICA IPA GRANT 260,000 260,000 212,272 NCB 15,990,000 MKD 12,966,867-MKD 15,990,000 12,996,867 - 3,023,133 VELES IPA GRANT 120,000 120,000 113,850 NCB 7,380,000 MKD 6,988,201-MKD 7,380,000 6,988,201 - 391,799 KONCE IPA GRANT 260,000 260,000 66,756 NCB 15,990,000 MKD 4,083,877-MKD 15,990,000 4,083,877 - 11,906,123 AERODROM IPA GRANT 120,000 - - - - - - - - - ROSOMAN IPA GRANT 260,000 260,000 253,237 NCB 15,990,000 MKD 15,515,495-MKD 15,990,000 15,515,495 - 474,505 DEBAR IPA GRANT 260,000 260,000 249,022 NCB 15,990,000 MKD 15,276,199-MKD 15,990,000 15,276,199 - 713,801 VRAPCISHTE IPA GRANT 260,000 260,000 237,896 NCB 15,990,000 MKD 14,573,395-MKD 15,990,000 14,573,395 - 1,416,605 KARBINCI IPA GRANT 260,000 260,000 123,125 NCB 15,990,000 MKD 7,546,760-MKD 15,990,000 7,546,760 - 8,443,240 KISELA VODA IPA GRANT 120,000 120,000 - NCB 7,380,000 MKD - 7,380,000 - - 7,380,000 JEGUNOVCE IPA GRANT 260,000 260,000 251,723 NCB 15,990,000 MKD 15,402,528-MKD 15,990,000 15,402,528 - 587,472 ZELINO IPA GRANT 260,000 260,000 230,800 NCB 15,990,000 MKD 14,122,961-MKD 15,990,000 14,122,961 - 1,867,039 SHUTO ORIZARI IPA GRANT 120,000 120,000 74,008 NCB 7,380,000 MKD 4,529,362-MKD 7,380,000 4,529,362 - 2,850,638 LIPKOVO IPA GRANT 260,000 260,000 248,863 NCB 15,990,000 MKD 15,257,916-MKD 15,990,000 15,257,916 - 732,084 PEHCEVO IPA GRANT 260,000 260,000 85,089 NCB 15,990,000 MKD 5,207,167-MKD 15,990,000 5,207,176 - 10,782,833 KAVADARCI IPA GRANT 260,000 260,000 108,980 NCB 15,990,000 MKD 6,674,234-MKD 15,990,000 6,674,234 - 9,315,766 ZELENIKOVO IPA GRANT 260,000 260,000 31,491 NCB 15,990,000 MKD 1,929,095-MKD 15,990,000 1,929,095 - 14,060,905 SOPISHTE IPA GRANT 1 91,424 91,424 8,135 NCB 5,622,576 MKD 498,030-MKD 5,622,576 498,030 - 5,124,546 SOPISHTE IPA GRANT 2 168,576 - - - - - - - - BUTEL IPA GRANT 120,000 120,000 - NCB 7,380,000 MKD - 7,380,000 - - 7,380,000 KOCANI IPA GRANT 260,000 260,000 127,767 NCB 15,990,000 MKD 7,826,071-MKD 15,990,000 7,826,071 - 8,163,929 BRVENICA IPA GRANT 260,000 260,000 167,643 NCB 15,990,000 MKD 10,268,747-MKD 15,990,000 10,268,747 - 5,721,253 DELCEVO IPA GRANT 260,000 260,000 18,182 NCB 15,990,000 MKD 1,113,005-MKD 15,990,000 1,113,005 - 14,876,995 DOLNENI IPA GRANT 260,000 260,000 - NCB 15,990,000 MKD - 15,990,000 - - 15,990,000 KICEVO IPA GRANT 260,000 - - - - - - - - SVETI NIKOLE IPA GRANT 260,000 - - - - - - - - SHTIP- IPA GRANT 120,000 120,000 - NCB 7,380,000-MKD - 7,380,000 - - 7,380,000 PETROVEC IPA GRANT 260,000 - - - - - - - - LOZOVO-IPA GRANT 260,000 - - - - - - - - KARPOSH-IPA GRANT 120,000 - - - - - - - - BITOLA-IPA GRANT 120,000 - - - - - - - - OHRID-IPA GRANT 120,000 - - - - - - - - ARACHINOVO-IPA GRANT 260,000 - - - - - - - - CESHINOVO OBLESHEVO-IPA GRANT 69,157 - - - - - - - - GOSTIVAR-IPA GRANT 120,000 - - - - - - - - Ministry of Finance of the Republic of Macedonia 30 “Municipal Services Improvement Project” IBRD Loan number 7699-MK, Loan number 8158-MK, EC IPA Grant No. TF 018812 and Loan number 8561-MK Project’s Financial Statements 31 December 2017 Cumulative for the period from 29 June 2009 through Statement of Unit of Output by Project Activity (continued) 31 December 2017 Procurement Contracted Paid amount Contract Activities from the MSIP Procurement plan amount in Euro in Euro Procureme Contract amount Paid original amount local Paid amount Commitments in Plan Euro equivalent equivalent nt method original currency currency currency local currency contract currency MKD MKD EUR MKD GORCE PETROV-IPA GRANT 120,000 - - - - - - - - STRUGA-IPA GRANT 260,000 - - - - - - - - RANKOVCE-IPA GRANT 260,000 - - - - - - - - VINICA-IPA GRANT 260,000 - - - - - - - - TETOVO-IPA GRANT 120,000 - - - - - - - - PRILEP-IPA GRANT 120,000 - - - - - - - - STRUMICA-IPA GRANT 120,000 - - - - - - - - CASKA-IPA GRANT 260,000 - - - - - - - - STARO NEGORICANE-IPA GRANT 260,000 - - - - - - - - CUCER SANDEVO-IPA GRANT 260,000 - - - - - - - - SARAJ-IPA GRANT 120,000 - - - - - - - - VALANDOVO-IPA GRANT 260,000 - - - - - - - - DOJRAN-IPA GRANT 260,000 - - - - - - - - IPA investment grants - other municipalities 1,029,476 - - - - - - - - - E.2.Technical assistance IPA Technical assistance IPA Technical assistance (multiply contracts) 1,300,000 475 475 SH 29,085 MKD 29,085-MKD 29,085 29,085 - - E.3.Operational costs IPA Operational costs IPA Operational costs (multiply contracts) 614,500 6,960 4,023 SH 428,595 MKD 246,290-MKD 428,595 246,290 - 182,305 Sub-total Component E : 19,814,500 11,607,294 8,104,905 - - - 713,508,398 495,486,916 - - Front and Fee-Original Loan 47,250 47,250 47,250 - - - - - - - Front and Fee-Additional Financing 93,000 93,000 93,000 - - - - - - - Total Project 75,914,497 57,836,998 49,073,728 - - - 3,530,673,750 2,997,391,853 - - Ministry of Finance of the Republic of Macedonia 31 “Municipal Services Improvement Project” IBRD Loan number 7699-MK, Loan number 8158-MK, EC IPA Grant No. TF 018812 and Loan number 8561-MK Project’s Financial Statements 31 December 2017 Statement of Breakdown of Loans and Grants (Amounts in EUR) Cumulative for the period from 29 June 2009 through 31 December 2017 Paid Payment Loan/grant loan/Grant Remaining Outstanding requests Municipality Loan/grant No. / WB approved date amount amount balance payments processed COMPONENT A Municipal Services Improvement Project-Original Loan KOCANI Sub-loan MSIP 01/ December 14, A.1 Sub-Loan MSIP 01 - (Pipe Replacement (6km) 2009 600,000 600,000 - - - A.1.i.Contract MSIP 01/ 1 – NCB 577,034 577,034 - - - A.1.ii.Contract MSIP 01/2 – CQ 22,966 22,966 - - - Remaining loan funds - - - - - BOGDANCI A.2 Sub Loan MSIP 02 - BOGDANCI (Street lighting) Sub-loan MSIP 02/ April 13, 2010 100,492 100,492 - - - A.2.i. Contract MSIP 02/1-NCB 87,341 87,341 - - - A.2 .ii. Contract MSIP G NSB 004/11 13,151 13,151 - - - Remaining loan funds - - - - - CITY OF SKOPJE A.3 Sub Loan MSIP 03-Skopje (Vehicles and bins for solid waste) Sub-loan MSIP 03/ July 7, 2010 2,974,822 2,974,822 - - - A.3.i.Contract MSIP 03/ 1-ICB 1,798,300 1,798,300 - - - A.3.ii.Contract MSIP 03/2-ICB 748,800 748,800 - - - Loan funds (VAT) 427,722 427,722 - - - Remaining loan funds - - - - - Ministry of Finance of the Republic of Macedonia 32 “Municipal Services Improvement Project” IBRD Loan number 7699-MK, Loan number 8158-MK, EC IPA Grant No. TF 018812 and Loan number 8561-MK Project’s Financial Statements 31 December 2017 (Amounts in EUR) Statement of Breakdown of Loans and Grants (continued) Cumulative for the period from 29 June 2009 through 31 December 2017 Paid Payment Loan/grant loan/Grant Remaining Outstanding requests Municipality Loan/grant No. / WB approved date amount amount balance payments processed ILINDEN A.4 Sub Loan MSIP 04 - ILINDEN (Heating and Cooling of Sub-loan MSIP 04/ September 24, Municipal Buildings) 2010 230,486 230,486 - - - A.4.i. Contract MSIP NCB 003/10 230,486 230,486 - - - Remaining loan funds - - - - - A.4 Sub Loan MSIP 04 - ILINDEN (Heating and Cooling of Sub-loan MSIP 04-2/ November 1, Municipal Buildings) 2013 146,430 146,430 - - - Municipal co-financing - - - - - A.4.ii. Contract MSIP NCB 146,430 146,430 - - - Remaining loan funds - - - - - KISELA VODA Sub-loan MSIP 05/ November 27, A.5 Sub Loan MSIP 05- KISELA VODA ( Drainage Systems) 2010 910,378 910,378 - - - A.5.i. Contract MSIP W ICB 003/11-Lot1 680,744 680,744 - - - A.5.ii. Contract MSIP W ICB 003/11-Lot2 229,634 229,634 - - - Remaining loan funds - - - - - A.5 Sub Loan MSIP 05/2 - KISELA VODA (Water supply systems) Sub-loan MSIP 05-2/ March 14, 2011 638,379 638,379 - - - Municipal co-financing - - - - - A.5.iii. Contract MSIP W NCB 005/11 638,379 638,379 - - - Remaining loan funds - - - - - STIP A.6 Sub Loan MSIP 06 STIP (Arrangement of the central city area) Sub-loan MSIP 06/ April 5, 2011 - - - - - A.6.i. Contract MSIP W NCB 278,445 278,445 - - - A.6.ii. Contract MSIP W ICB 271,679 271,679 - - - Returned sub-loan funds (550,124) (550,124) - - - Remaining loan funds - - - - - PEHCEVO A.7 Sub Loan MSIP 07- PEHCEVO (Vehicles for solid waste) Sub-loan MSIP 07/ April 6, 2011 68,551 68,551 - - - Municipal co-financing - - - - - A.7.i. Contract MSIP W NCB 68,551 68,551 - - - Remaining loan funds - - - - - Ministry of Finance of the Republic of Macedonia 33 “Municipal Services Improvement Project” IBRD Loan number 7699-MK, Loan number 8158-MK, EC IPA Grant No. TF 018812 and Loan number 8561-MK Project’s Financial Statements 31 December 2017 (Amounts in EUR) Statement of Breakdown of Loans and Grants (continued) Cumulative for the period from 29 June 2009 through 31 December 2017 Paid Payment Loan/grant loan/Grant Remaining Outstanding requests Municipality Loan/grant No. / WB approved date amount amount balance payments processed VELES A.8 Sub Loan MSIP 08-1 - VELES (Extension of water supply system) Sub-loan MSIP 08/ April 12, 2011 685,549 685,549 - - - A.8.i. Contract MSIP W NCB 685,549 685,549 - - - Remaining loan funds - - - - - Sub-loan MSIP 08-2/ October 26, A.8 Sub Loan MSIP 08-2 - VELES (Street lighting) 2012 323,213 323,213 - - - A.8.ii. Contract MSIP W NCB 323,213 323,213 - - - Remaining loan funds - - - - - VEVCANI A.9 Sub Loan MSIP 09 - VEVCANI (Vehicles for solid waste and Backhoe) Sub-loan MSIP 09/ April 14, 2011 99,686 99,686 - - - Municipal co-financing - - - - - A.9.i. Contract MSIP W NCB- Lot 1** 99,686 99,686 - - - Remaining loan funds - - - - - KRUSEVO A.10 Sub Loan MSIP10 - KRUSEVO (Vehicles for solid waste) Sub-loan MSIP 10/ August 31, 2011 49,218 49,218 - - - A.10. Contract MSIP W NCB 009-11 49,218 49,218 - - - Remaining loan funds - - - - - KICEVO A.11 Sub Loan MSIP 11 - KICEVO (Vehicles for solid waste and Street reconstruction) Sub-loan MSIP 11/ September 2,2011 759,997 759,997 - - - A.11.1 Contract MSIP G ICB 004-11 201,434 201,434 - - - A.11.2 Contract MSIP W NCB 012-12 448,947 448,947 - - - Kicevo - Procurement of solid waste vehicle 2 cont 109,616 109,616 - - - Remaining loan funds - - - - - NOVACI A.12 Sub Loan MSIP 12 - NOVACI (Street lighting) Sub-loan MSIP 12/ September 5,2011 130,710 130,710 - - - Municipal co-financing - - - - - A.12.i Contract MSIP W NCB 130,710 130,710 - - - Remaining loan funds - - - - - Ministry of Finance of the Republic of Macedonia 34 “Municipal Services Improvement Project” IBRD Loan number 7699-MK, Loan number 8158-MK, EC IPA Grant No. TF 018812 and Loan number 8561-MK Project’s Financial Statements 31 December 2017 (Amounts in EUR) Statement of Breakdown of Loans and Grants (continued) Cumulative for the period from 29 June 2009 through 31 December 2017 Paid Payment Loan/grant loan/Grant Remaining Outstanding requests Municipality Loan/grant No. / WB approved date amount amount balance payments processed DOLNENI A.13 Sub Loan MSIP 13 - DOLNENI (Rehabilitation of local roads) Sub-loan MSIP 13/ August 31, 2011 266,778 266,778 - - - Municipal co-financing - - - - - A.13.i Contract MSIP W NCB 266,778 266,778 - - - Remaining loan funds - - - - - GJORCE PETROV A.14 Sub Loan MSIP 14 – GJORCE PETROV (Streets Sub-loan MSIP 14/ November 20, reconstruction) 2011 1,291,416 1,291,416 - - - A.14.i Contract MSIP W ICB 1,291,416 1,291,416 - - - Remaining loan funds - - - - - GRADSKO A.15 Sub Loan MSIP 15 – GRADSKO (Vehicle and bins for solid Sub-loan MSIP 15/ November 14, waste) 2011 99,498 99,498 - - - A.15.i Contract MSIP G NCB 77,097 77,097 - - - A.15.ii Contract MSIP G SH 22,401 22,401 - - - Remaining loan funds - - - - - VASILEVO A.16 Sub Loan MSIP 16 – VASILEVO (Construction of the water Sub-loan MSIP 16/ December 28, supply network) 2011 383,578 383,578 - - - A.16.i Contract MSIP W NCB 383,578 383,578 - - - Remaining loan funds - - - - - BOSILOVO A.17 Sub Loan MSIP 17-BOSILOVO (Construction of bridge) Sub-loan MSIP 17/ May 6,2012 136,507 136,507 - - - A.17.i Contract MSIP W NCB 136,507 136,507 - - - Remaining loan funds - - - - - MOGILA A.18 Sub Loan MSIP 18 – MOGILA (Reconstruction of House of Culture) Sub-loan MSIP 18/ May 25, 2012 180,856 180,856 - - - A.18.i Contract MSIP W NCB 180,856 180,856 - - - Remaining loan funds - - - - - Ministry of Finance of the Republic of Macedonia 35 “Municipal Services Improvement Project” IBRD Loan number 7699-MK, Loan number 8158-MK, EC IPA Grant No. TF 018812 and Loan number 8561-MK Project’s Financial Statements 31 December 2017 (Amounts in EUR) Statement of Breakdown of Loans and Grants (continued) Cumulative for the period from 29 June 2009 through 31 December 2017 Paid Payment Loan/grant loan/Grant Remaining Outstanding requests Municipality Loan/grant No. / WB approved date amount amount balance payments processed MOGILA Sub Loan MSIP 18/2 / January 31, A.AF.06 Sub Loan MSIP - BOSILOVO(Streets reconstruction) 2014 34,161 34,161 - - - A.AF.6.i Contract MSIP W NCB 34,161 34,161 - - - Remaining loan funds - - - - - GOSTIVAR A.19 Sub Loan MSIP 19 - GOSTIVAR (Street lighting and Supply of basic equipment for public hygiene) Sub-loan MSIP 19/ 12 July 2012 842,675 842,675 - - - Municipal co-financing - - - - - A.19.i. Contract MSIP ICB 458,000 458,000 - - - A.19.ii. Contract MSIP NCB 341,973 341,973 - - - VAT and Customs 42,702 42,702 - - - Remaining loan funds - - - - - PRILEP A.20 Sub Loan MSIP 20 - PRILEP (Streets reconstruction) Sub-loan MSIP 20/ 2 July 2012 501,619 501,619 - - - Municipal co-financing - - - - - A.20.i. Contract MSIP NCB 501,619 501,619 - - - Remaining loan funds - - - - - CAIR A.21 Sub Loan MSIP 21 - CAIR (School/Kindergarten Insulation Project) Sub-loan MSIP 21/ 29 October 2012 484,523 484,523 - - - A.21.i. Contract MSIP NCB 484,523 484,523 - - - Remaining loan funds - - - - - GAZI BABA A.22 Sub Loan MSIP - GAZI BABA (Reconstruction of School) Sub-loan MSIP 28/ April 19, 2013 1,346,650 1,346,650 - - - A.22.i. Contract MSIP NCB - - - - - Gazi Baba -Construction of school 1,238,052 1,238,052 - - - Gazi Baba –fance 35,661 35,661 - - - Gazi Baba -audio equipement 5,969 5,969 - - - Gazi Baba –furniture 66,968 66,968 - - - Remaining loan funds - - - - - Ministry of Finance of the Republic of Macedonia 36 “Municipal Services Improvement Project” IBRD Loan number 7699-MK, Loan number 8158-MK, EC IPA Grant No. TF 018812 and Loan number 8561-MK Project’s Financial Statements 31 December 2017 (Amounts in EUR) Statement of Breakdown of Loans and Grants (continued) Cumulative for the period from 29 June 2009 through 31 December 2017 Paid Payment Loan/grant loan/Grant Remaining Outstanding requests Municipality Loan/grant No. / WB approved date amount amount balance payments processed BUTEL Sub-loan MSIP 34/ June 25, 2012 A.34 Sub Loan MSIP-BUTEL 1,193,010 1,193,010 - - - Butel - School construction 1,193,010 1,193,010 - - - Remaining loan funds - - - - - SKOPJE A.03-2 Sub Loan MSIP-Skopje Sub-loan MSIP 35/ August 25, 2015 362,050 362,050 - - - Municipal co-financing - - - - - Skopje - Equipment for public greenery 362,050 362,050 - - - Remaining loan funds - - - - - KAVADARCI 663,250 502,921 160,329 - - A.53 Sub Loan MSIP-Kavadarci Sub-loan MSIP 53/ August 28,2015 663,250 502,921 160,329 - - Remaining loan funds - - - - - VASILEVO A.65 Sub Loan MSIP-Vasilevo Sub-loan MSIP 65/March 2,2017 162,601 70,070 92,531 - - Vasilevo-Street construction Piperevo 162,601 70,070 92,531 - - Other municipalities OL 873,566 - 873,566 - - Municipal Services Improvement Project-Additional Financing BEROVO A.AF.01 Sub Loan MSIP 22 - BEROVO (Streets reconstruction) Sub-loan MSIP 22/ October 10, 2012 381,637 381,637 - - - A.AF.1.i Contract MSIP W NCB 381,637 381,637 - - - Remaining loan funds - - - - - MAVROVO ROSTUSE A.AF.02 Sub Loan MSIP 23 - MAVROVO ROSTUSE (Streets reconstruction) Sub-loan MSIP 23/ December 4, 2012 199,227 199,227 - - - A.AF.2.i Contract MSIP W NCB 199,227 199,227 - - - Remaining loan funds - - - - - Ministry of Finance of the Republic of Macedonia 37 “Municipal Services Improvement Project” IBRD Loan number 7699-MK, Loan number 8158-MK, EC IPA Grant No. TF 018812 and Loan number 8561-MK Project’s Financial Statements 31 December 2017 (Amounts in EUR) Statement of Breakdown of Loans and Grants (continued) Cumulative for the period from 29 June 2009 through 31 December 2017 Paid Payment Loan/grant loan/Grant Remaining Outstanding requests Municipality Loan/grant No. / WB approved date amount amount balance payments processed A.AF.02 Sub Loan MSIP 23-2 - MAVROVO ROSTUSE (Street Sub-loan MSIP 23-2/ December 25, lighting) 2013 104,731 104,731 - - - A.AF.2.ii Contract MSIP W NCB 104,731 104,731 - - - Remaining loan funds - - - - - VINICA A.AF.03 Sub Loan MSIP 24-1 - VINICA (Vehicles for solid waste) Sub-loan MSIP 24-1/ December 4, 2012 141,897 141,897 - - - A.AF.3.i Contract MSIP G NCB 141,897 141,897 - - - Remaining loan funds - - - - - A.AF.03 Sub Loan MSIP 24-2 - VINICA (Construction of storm water system and construction of street) Sub-loan MSIP 24-2/ July 12, 2013 711,627 711,627 - - - A.AF.3.ii Contract MSIP W NCB 711,627 711,627 - - - Remaining loan funds - - - - - KRIVA PALANKA A.AF.04 Sub Loan MSIP - KRIVA PALANKA (Streets Sub-loan MSIP 25 / November 11, reconstruction) 2012 841,117 841,117 - - - A.AF.4.i Contract MSIP W NCB 172,171 172,171 - - - A.AF.4.ii Contract MSIP W NCB 668,946 668,946 - - - Remaining loan funds - - - - - RANKOVCE A.06 Sub Loan MSIP - Rankovce (Streets reconstruction) Sub-loan MSIP 27/ December 26, 2012 277,963 277,963 - - - A.AF.6 Contract MSIP NCB 277,963 277,963 - - - Remaining loan funds - - - - - BOSILOVO Sub Loan MSIP /26 December 27, A.05 Sub Loan MSIP 26-BOSILOVO (Streets reconstruction) 2012 400,087 400,087 - - - A.5.ii Contract MSIP W NCB 400,087 400,087 - - - Remaining loan funds - - - - - PRILEP A.AF.07 Sub Loan MSIP 29 - PRILEP (Streets reconstruction) Sub-loan MSIP 29/ May 21, 2013 774,232 774,232 - - - A.AF.1.i Contract MSIP W NCB 774,232 774,232 - - - Remaining loan funds - - - - - Ministry of Finance of the Republic of Macedonia 38 “Municipal Services Improvement Project” IBRD Loan number 7699-MK, Loan number 8158-MK, EC IPA Grant No. TF 018812 and Loan number 8561-MK Project’s Financial Statements 31 December 2017 (Amounts in EUR) Statement of Breakdown of Loans and Grants (continued) Cumulative for the period from 29 June 2009 through 31 December 2017 Paid Payment Loan/grant loan/Grant Remaining Outstanding requests Municipality Loan/grant No. / WB approved date amount amount balance payments processed PETROVEC A.AF.08 Sub Loan MSIP 30 - PETROVEC (Reconstruction of School) Sub-loan MSIP 30/ May 14, 2013 1,429,451 1,429,451 - - - A.AF.1.i Contract MSIP W NCB 1,429,451 1,429,451 - - - Remaining loan funds - - - - - CASKA A.AF.09 Sub Loan MSIP 31 - CASKA (Street reconstruction and water reservoir) Sub-loan MSIP 31/ October 24, 2013 531,266 531,266 - - - A.AF.9.i Contract MSIP W NCB 531,266 531,266 - - - Remaining loan funds - - - - - PROBISHTIP A.AF.10 Sub Loan MSIP 32 - PROBISHTIP (Street reconstruction) Sub-loan MSIP 32/ October 22, 2013 460,720 460,720 - - - A.AF.10.i Contract MSIP W NCB 408,645 408,645 - - - Remaining loan funds 52,075 52,075 - - - PEHCEVO A.AF.11 Sub Loan MSIP 33 - PEHCEVO (Street reconstruction) Sub-loan MSIP 33/ December 10, 2013 111,125 111,125 - - - A.AF.11.i Contract MSIP W NCB 111,125 111,125 - - - Remaining loan funds - - - - - KRUSEVO A.AF.12 Sub Loan MSIP 35 - KRUSEVO (Installation of water Sub-loan MSIP 35/ June 30, 2014 meters) 83,565 83,565 - - - A.AF.12.i Contract MSIP W NCB 83,565 83,565 - - - - Remaining loan funds - - - - - DOJRAN A.AF.13 Sub Loan MSIP 36 - DOJRAN (Purchasing of comunal Sub-loan MSIP 36/ August 19, 2014 vehicles) 130,586 130,586 - - - Municipal co-financing - - - - - A.AF.13.i Contract MSIP G NCB 130,586 130,586 - - - - Remaining loan funds - - - - - Ministry of Finance of the Republic of Macedonia 39 “Municipal Services Improvement Project” IBRD Loan number 7699-MK, Loan number 8158-MK, EC IPA Grant No. TF 018812 and Loan number 8561-MK Project’s Financial Statements 31 December 2017 (Amounts in EUR) Statement of Breakdown of Loans and Grants (continued) Cumulative for the period from 29 June 2009 through 31 December 2017 Paid Payment Loan/grant loan/Grant Remaining Outstanding requests Municipality Loan/grant No. / WB approved date amount amount balance payments processed OHRID A.AF.14 Sub Loan MSIP 37 -OHRID (Purchasing of communal Sub-loan MSIP 37/ November 17, vehicles and street reconstruction) 2014 2,065,914 1,620,522 445,392 - - A.AF.14.i Contract MSIP G ICB 1,314,194 1,314,194 - - - A.AF.14.ii Contract MSIP W ICB 306,328 306,328 - - - - Remaining loan funds 445,392 - 445,392 - - KARPOSH A.AF.15 Sub Loan MSIP 38 - KARPOSH (Street and storm water Sub-loan MSIP 38/ December 10, reconstruction ) 2014 574,803 574,803 - - - A.AF.15.i Contract MSIP W ICB 574,803 574,803 - - - - Remaining loan funds - - - - - SHUTO ORIZARI A.AF.16 Sub Loan MSIP 39 - SHUTO ORIZARI (Water supply Sub-loan MSIP 39/ November 24, system) 2014 495,571 446,291 49,280 - - A.AF.16.i Contract MSIP W ICB 495,571 446,291 49,280 - - - Remaining loan funds - - - - - CITY OF SKOPJE A.AF.17 Sub Loan MSIP 40 - CITY OF SKOPJE (Water supply Sub-loan MSIP 40/ November 24, system) 2014 1,725,224 1,676,650 48,574 - - A.AF.17.i Contract MSIP W ICB 1,725,224 1,676,650 48,574 - - - Remaining loan funds - - - - - ZELINO A.AF.18 Sub Loan MSIP 41 - ZELINO (Street and storm water Sub-loan MSIP 42/ December 25, reconstruction) 2014 220,634 220,634 - - - A.AF.18.i Contract MSIP W ICB 220,634 220,634 - - - - Remaining loan funds - - - - - ROSOMAN A.AF.19 Sub Loan MSIP 42 - ROSOMAN (Water reservoir) Sub-loan MSIP 42/ December 25, 2014 69,723 69,723 - - - A.AF.19.i Contract MSIP W ICB 69,723 69,723 - - - - Remaining loan funds - - - - - Ministry of Finance of the Republic of Macedonia 40 “Municipal Services Improvement Project” IBRD Loan number 7699-MK, Loan number 8158-MK, EC IPA Grant No. TF 018812 and Loan number 8561-MK Project’s Financial Statements 31 December 2017 (Amounts in EUR) Statement of Breakdown of Loans and Grants (continued) Cumulative for the period from 29 June 2009 through 31 December 2017 Paid Payment Loan/grant loan/Grant Remaining Outstanding requests Municipality Loan/grant No. / WB approved date amount amount balance payments processed KOCANI A.AF.20 Sub Loan MSIP 43 - KOCANI (Street construction) Sub-loan MSIP 43/ December 24, 2014 999,591 932,510 67,081 - - A.AF.20.i Contract MSIP W ICB 932,510 932,510 - - - - Remaining loan funds 67,081 - 67,081 - - GORCE PETROV A.AF.21 Sub Loan MSIP 44 - GORCE PETROV (Street construction) Sub-loan MSIP 44/ December 23, 2014 1,338,768 844,044 494,724 - - A.AF.21.i Contract MSIP W ICB 782,954 782,954 - - - - Remaining loan funds 555,814 61,090 494,724 - - NEGOTINO A.AF.22 Sub Loan MSIP 45 - NEGOTINO (Water pipe replacement ) Sub-loan MSIP 45/ December 25, 2014 912,517 469,834 442,683 - - A.AF.22.i Contract MSIP W ICB 624,994 469,834 155,160 - - - Remaining loan funds 287,523 - 287,523 - - DELCEVO A.AF Sub Loan MSIP 46 - DELCEVO (Extension of kindergarten) Sub-loan MSIP 46/March 10, 2015 319,609 302,433 17,176 - - A.AF.i Contract MSIP W ICB 302,433 302,433 - - - - Remaining loan funds 17,176 - 17,176 - - MAKEDONSKA KAMENICA A.AF Sub Loan MSIP 47 – MAKEDONSKA KAMENICA Sub-loan MSIP 47/April 20, 2015 (Reconstruction of cultural center) 705,821 705,821 - - - A.AF.i Contract MSIP W ICB 705,821 705,821 - - - - Remaining loan funds - - - - - SVETI NIKOLE A.AF Sub Loan MSIP 48 – SVETI NIKOLE (Reconstruction of Sub-loan MSIP 48/April 16, 2015 streets) 776,640 776,640 - - - A.AF.i Contract MSIP W ICB 776,640 776,640 - - - - Remaining loan funds - - - - - Ministry of Finance of the Republic of Macedonia 41 “Municipal Services Improvement Project” IBRD Loan number 7699-MK, Loan number 8158-MK, EC IPA Grant No. TF 018812 and Loan number 8561-MK Project’s Financial Statements 31 December 2017 (Amounts in EUR) Statement of Breakdown of Loans and Grants (continued) Cumulative for the period from 29 June 2009 through 31 December 2017 Paid Payment Loan/grant loan/Grant Remaining Outstanding requests Municipality Loan/grant No. / WB approved date amount amount balance payments processed BITOLA Sub-loan MSIP 49/May 20, 2015 A.AF Sub Loan MSIP 49 – BITOLA (Construction of seven streets) 2,534,684 728,560 1,806,124 - - A.AF.i Contract MSIP W ICB 2,484,684 692,824 1,791,860 - - A.AF.49 Sub Loan MSIP 49- Bitola (Supervision of construction of streets) 50,000 35,736 14,264 - - - Remaining loan funds - - - - - SKOPJE A.AF Sub Loan MSIP 50 – SKOPJE (Rehabilitation of Boris Sub-loan MSIP 50/June 29, 2015 Trajkovski street) 4,200,000 2,837,290 1,362,710 - - A.AF.i Contract MSIP W ICB 3,709,994 2,837,290 872,704 - - - Remaining loan funds 490,006 - 490,006 - - RADOVISH A.AF Sub Loan MSIP 51 – RADOVISH (Rehabilitation of Boris Sub-loan MSIP 51/August 31, 2015 Trajkovski street) 645,571 496,708 148,863 - - A.AF.i Contract MSIP W ICB 484,009 484,009 - - - Radovis - Supervision of construction of street 12,699 12,699 - - - - Remaining loan funds 148,863 - 148,863 - - KRIVOGASTANI Sub-loan MSIP 52/September 28, A.AF Sub Loan MSIP 52 – KRIVOGASTANI (Construction of 2015 streets) 176,353 176,353 - - - A.AF.i Contract MSIP W ICB 176,353 176,353 - - - - Remaining loan funds - - - - - SOPISTE Sub-loan MSIP 54/ November 13, A.AF Sub Loan MSIP 54 – SOPISHTE (Construction of streets) 2015 658,838 522,396 136,442 - - A.AF.i Contract MSIP W ICB 658,838 522,396 136,442 - - - Remaining loan funds - - - - - Ministry of Finance of the Republic of Macedonia 42 “Municipal Services Improvement Project” IBRD Loan number 7699-MK, Loan number 8158-MK, EC IPA Grant No. TF 018812 and Loan number 8561-MK Project’s Financial Statements 31 December 2017 (Amounts in EUR) Statement of Breakdown of Loans and Grants (continued) Cumulative for the period from 29 June 2009 through 31 December 2017 Paid Payment Loan/grant loan/Grant Remaining Outstanding requests Municipality Loan/grant No. / WB approved date amount amount balance payments processed KRATOVO Sub-loan MSIP 55/ November 13, A.AF Sub Loan MSIP 55 – KRATOVO(Construction of Green 2015 Market) 514,471 430,755 83,716 - - A.AF.i Contract MSIP W ICB 514,471 430,755 83,716 - - - Remaining loan funds - - - - - LIPKOVO A.AF Sub Loan MSIP 56 – LIPKOVO(Schools Energy Efficiency) Sub-loan MSIP 56/ December 30, 2015 480,120 480,120 - - - A.AF.i Contract MSIP W ICB 480,120 480,120 - - - - Remaining loan funds - - - - - MAKEDONSKI BROD A.AF Sub Loan MSIP 58 – MAKEDONSKI BROD (Construction of local roads) Sub-loan MSIP 58/ February 23, 2016 1,014,759 787,490 227,269 - - A.AF.i Contract MSIP W ICB 1,014,759 787,490 227,269 - - -Remaining loan funds - - - - - DEMIR KAPIJA A.AF Sub Loan MSIP 57 – DEMIR KAPIJA( Reconstruction of streets) Sub-loan MSIP 57/ February 23, 2016 443,452 431,328 12,124 - - A.AF.i Contract MSIP W ICB 443,452 431,328 12,124 - - -Remaining loan funds - - - - - CESINOVO OBLESEVO A.AF Sub Loan MSIP 59- CESINO OBLESEVO (Water supply) Sub-loan MSIP 59/ April 5, 2016 322,187 249,745 72,442 - - A.AF.i Contract MSIP W ICB 322,187 249,745 72,442 - - -Remaining loan funds - - - - - ZRNOVCE A.AF Sub Loan MSIP 60- ZRNOVCE (Kindergarten and local streets) Sub-loan MSIP 60/ July 25,,2016 146,432 146,432 - - - A.AF.i Contract MSIP W ICB 146,432 146,432 - - - -Remaining loan funds - - - - - Ministry of Finance of the Republic of Macedonia 43 “Municipal Services Improvement Project” IBRD Loan number 7699-MK, Loan number 8158-MK, EC IPA Grant No. TF 018812 and Loan number 8561-MK Project’s Financial Statements 31 December 2017 (Amounts in EUR) Statement of Breakdown of Loans and Grants (continued) Cumulative for the period from 29 June 2009 through 31 December 2017 Paid Payment Loan/grant loan/Grant Remaining Outstanding requests Municipality Loan/grant No. / WB approved date amount amount balance payments processed DEBARCA Sub loan MSIP 63/ September 28, A.AF Sub Loan MSIP 63- DEBARCA (Comunal vehicle) 2016 50,555 50,555 - - - A.AF.i Contract MSIP W ICB 50,555 50,555 - - - -Remaining loan funds - - - - - DEMIR HISAR A.AF Sub Loan MSIP 62- DEMIR HISAR (Construction of local Sub loan MSIP 62/ September road) 21,2016 246,871 - 246,871 - - A.AF.i Contract MSIP W ICB 246,871 - 246,871 - - -Remaining loan funds - - - - - GEVGELIJA A.AF Sub Loan MSIP 61- GEVGELIJA ( Water supply system) Sub loan MSIP 61/ July 1,2016 1,357,259 651,222 706,037 - - A.AF.i Contract MSIP W ICB 1,357,259 651,222 706,037 - - -Remaining loan funds - - - - - A.AF Other municipalities 1,953,705 - 1,953,705 - - COMPONENT C: Municipal Services Improvement Project-Additional Financing KOCANI GA MSIP 01 / December 26,2012 60,029 60,029 - - - C.01 KOCANI GA-01 60,029 60,029 - - - Remaining loan funds - - - - - CITY OF SKOPJE GA MSIP 02 / December 28,2012 148,425 148,425 - - - Municipal co-financing - - - - - C.02 CITY of SKOPJE GA-02 148,425 148,425 - - - Remaining loan funds - - - - - VEVCANI GA MSIP 03 / December 26,2012 19,883 19,883 - - - Municipal co-financing - - - - - C.03 VEVCANI GA-03 19,883 19,883 - - - Remaining loan funds - - - - - Ministry of Finance of the Republic of Macedonia 44 “Municipal Services Improvement Project” IBRD Loan number 7699-MK, Loan number 8158-MK, EC IPA Grant No. TF 018812 and Loan number 8561-MK Project’s Financial Statements 31 December 2017 (Amounts in EUR) Statement of Breakdown of Loans and Grants (continued) Cumulative for the period from 29 June 2009 through 31 December 2017 Paid Payment Loan/grant loan/Grant Remaining Outstanding requests Municipality Loan/grant No. / WB approved date amount amount balance payments processed VASILEVO GA MSIP 04/ November 11,2013 38,343 38,343 - - - Municipal co-financing - - - - - C.04 VASILEVO GA-04 38,343 38,343 - - - Remaining loan funds - - - - - MOGILA GA MSIP 05/ January 11,2014 36,162 36,162 - - - C.05. MOGILA GA-05 36,162 36,162 - - - Remaining loan funds - - - - - KRUSHEVO GA MSIP 06/ January 31, 2014 9,842 9,842 - - - C.06. KRUSHEVO GA-06 9,842 9,842 - - - Remaining loan funds - - - - - BOGDANCI GA MSIP 07/ July 4, 2014 20,058 20,058 - - - C.07. BOGDANCI GA-07 16,767 16,767 - - - C.07. BOGDANCI GA-07 / 2 3,291 3,291 - - - Remaining loan funds - - - - - BOSILOVO GA MSIP 09 / March 12, 2015 27,231 27,231 - - - C.09. BOSILOVO GA-09 27,231 27,231 - - - Remaining loan funds - - - - - DOLNENI GA MSIP 11 / March 12, 2015 26,682 26,682 - - - C.11. DOLNENI GA-11 26,682 26,682 - - - Municipal co-financing - - - - - Remaining loan funds - - - - - GRADSKO GA MSIP 12 / June 17, 2015 17,464 17,464 - - - C.12. GRADSKO GA-12 17,464 17,464 - - - Remaining loan funds - - - - - PRILEP GA MSIP 14/ June 17, 2015 50,268 50,268 - - - C.14. PRILEP GA-14 50,268 50,268 - - - Remaining loan funds - - - - - Ministry of Finance of the Republic of Macedonia 45 “Municipal Services Improvement Project” IBRD Loan number 7699-MK, Loan number 8158-MK, EC IPA Grant No. TF 018812 and Loan number 8561-MK Project’s Financial Statements 31 December 2017 (Amounts in EUR) Statement of Breakdown of Loans and Grants (continued) Cumulative for the period from 29 June 2009 through 31 December 2017 Paid Payment Loan/grant loan/Grant Remaining Outstanding requests Municipality Loan/grant No. / WB approved date amount amount balance payments processed ILINDEN GA MSIP 17/ December 23,2015 37,704 37,704 - - - C.17. ILINDEN GA-17 37,704 37,704 - - - Remaining loan funds - - - - - GJORCE PETROV GA MSIP 13/ August 25, 2015 64,335 61,663 2,672 - - C.13. GJORCE PETROV GA-17 64,335 61,663 2,672 - - Remaining loan funds - - - - - MOGILA 3,416 3,416 - - - C.18. MOGILA GA-18 GA MSIP 18 / April 5 , 2016 3,416 3,416 - - - Remaining loan funds - - - - - PEHCEVO GA MSIP 19 / April April, 2016 13,665 13,665 - - - C.19. PEHCEVO GA-19 13,665 13,665 - - - Remaining loan funds - - - - - Other grant municipality 726,493 - 726,493 - - - - - - BEROVO GA MSIP 08 / March 12, 2015 38,109 38,109 - - - AF.08. BEROVO GA-08 38,109 38,109 - - - Remaining loan funds - - - - - BOSILOVO GA MSIP 10 / March 12, 2015 39,914 39,914 - - - AF.10. BOSILOVO GA-10 39,914 39,914 - - - Remaining loan funds - - - - - PRILEP 77,231 73,291 3,940 - - AF.15. PRILEP GA-15 GA MSIP 15/ June 17,2015 77,231 73,291 3,940 - - Remaining loan funds - - - - - RANKOVCE 27,788 27,788 - - - AF.14. RANKOVCE GA-14 GA MSIP 14/ January 14,2016 27,788 27,788 - - - Remaining loan funds - - - - - Ministry of Finance of the Republic of Macedonia 46 “Municipal Services Improvement Project” IBRD Loan number 7699-MK, Loan number 8158-MK, EC IPA Grant No. TF 018812 and Loan number 8561-MK Project’s Financial Statements 31 December 2017 (Amounts in EUR) Statement of Breakdown of Loans and Grants (continued) Cumulative for the period from 29 June 2009 through 31 December 2017 Paid Payment Loan/grant loan/Grant Remaining Outstanding requests Municipality Loan/grant No. / WB approved date amount amount balance payments processed PEHCEVO 22,199 22,199 - - - AF.20. PEHCEVO GA-20 GA MSIP 20/ April 4,2016 22,199 22,199 - - - Remaining loan funds - - - - - KRIVA PALANKA 42,100 42,100 - - - AF.21.KRIVA PALANKA GA-21 GA MSIP 21 / April 12,2016 42,100 42,100 - - - Remaining loan funds - - - - - CASKA 53,065 53,065 - - - AF.22. CASKA GA – 22 GA MSIP 22 / April 6,2016 53,065 53,065 - - - Remaining loan funds - - - - - PROBISHTIP 38,926 38,926 - - - AF.23 PROBISHTIP GA-23 GA MSIP 23/April 18,2017 38,926 38,926 - - - Remaining loan funds - - - - - ZELINO 22,132 22,132 - - - AF.25 ZELINO GA-25 GA MSIP 25 / June 19,2017 22,132 22,132 - - - Remaining loan funds Other AF grant municipalities 2,540,536 - 2,540,536 - - Component E: IPA RURAL INVESTMENT WINDOW Kratovo GA MSIP 01 / September 28, 2015 260,000 228,185 31,815 - - MSIP EU IPA grant 195,000 171,139 23,861 - - MSIP National co-financing 65,000 57,046 7,954 - - Berovo GA MSIP 02 / September 28, 2015 125,250 125,250 - - - MSIP EU IPA grant 93,857 93,857 - - - MSIP National co-financing 31,286 31,286 - - - Municipal contribution 107 107 - - - Resen GA MSIP 03 / December 24, 2015 260,000 140,785 119,215 - - MSIP EU IPA grant 195,000 105,589 89,411 - - MSIP National co-financing 65,000 35,196 29,804 - - Ministry of Finance of the Republic of Macedonia 47 “Municipal Services Improvement Project” IBRD Loan number 7699-MK, Loan number 8158-MK, EC IPA Grant No. TF 018812 and Loan number 8561-MK Project’s Financial Statements 31 December 2017 (Amounts in EUR) Statement of Breakdown of Loans and Grants (continued) Cumulative for the period from 29 June 2009 through 31 December 2017 Paid Payment Loan/grant loan/Grant Remaining Outstanding requests Municipality Loan/grant No. / WB approved date amount amount balance payments processed Ilinden GA MSIP 04 / December 23, 2015 260,000 243,309 16,691 - - MSIP EU IPA grant 195,000 182,482 12,518 - - MSIP National co-financing 65,000 60,827 4,173 - - Centar Zupa GA MSIP 06 / January 15, 2016 260,123 260,123 - - - MSIP EU IPA grant 195,000 195,000 - - - MSIP National co-financing 65,000 65,000 - - - Municipal contribution 123 123 - - - Bogdanci GA MSIP 10 / January 14, 2016 260,000 244,082 15,918 - - MSIP EU IPA grant 195,000 183,062 11,938 - - MSIP National co-financing 65,000 61,020 3,980 - - Makedonska Kamenica GA MSIP 12 / January 15, 2016 367,723 260,000 107,723 - - MSIP EU IPA grant 195,000 195,000 - - - MSIP National co-financing 65,000 65,000 - - - Municipal contribution 107,723 - 107,723 - - Krushevo GA MSIP 13 / February 23, 2016 260,000 213,020 46,980 - - MSIP EU IPA grant 195,000 159,765 35,235 - - MSIP National co-financing 65,000 53,255 11,745 - - Makedonski Brod GA MSIP 14 / February 23, 2016 307,924 243,712 64,212 - - MSIP EU IPA grant 195,000 182,784 12,216 - - MSIP National co-financing 65,000 60,928 4,072 - - Municipal contribution 47,924 - 47,924 - - Bosilovo GA MSIP 15 / February 23, 2016 260,000 250,828 9,172 - - MSIP EU IPA grant 195,000 188,123 6,877 - - MSIP National co-financing 65,000 62,705 2,295 - - Vevcani GA MSIP 16 / February 23, 2016 260,000 250,353 9,647 - - MSIP EU IPA grant 195,000 195,000 - - - MSIP National co-financing 65,000 55,353 9,647 - - Ministry of Finance of the Republic of Macedonia 48 “Municipal Services Improvement Project” IBRD Loan number 7699-MK, Loan number 8158-MK, EC IPA Grant No. TF 018812 and Loan number 8561-MK Project’s Financial Statements 31 December 2017 (Amounts in EUR) Statement of Breakdown of Loans and Grants (continued) Cumulative for the period from 29 June 2009 through 31 December 2017 Paid Payment Loan/grant loan/Grant Remaining Outstanding requests Municipality Loan/grant No. / WB approved date amount amount balance payments processed Berovo GA MSIP 02-1 / July 28, 2016 120,263 - 120,263 - - MSIP EU IPA grant 90,197 - 90,197 - - MSIP National co-financing 30,066 - 30,066 - - Bogovinje GA MSIP 05 / January 29, 2016 260,000 252,133 7,867 - - MSIP EU IPA grant 195,000 189,100 5,900 - - MSIP National co-financing 65,000 63,033 1,967 - - Vasilevo GA MSIP 07 / January 14, 2016 187,331 161,705 25,626 - - MSIP EU IPA grant 140,498 121,279 19,219 - - MSIP National co-financing 46,833 40,426 6,407 - - Mogila GA MSIP 08 / January 15, 2016 286,662 141,439 145,223 - - MSIP EU IPA grant 195,000 106,079 88,921 - - MSIP National co-financing 65,000 35,360 29,640 - - Municipal contribution 26,662 - 26,662 - - Radovish GA MSIP 09 / January 14, 2016 260,000 219,557 40,443 - - MSIP EU IPA grant 195,000 164,668 30,332 - - MSIP National co-financing 65,000 54,889 10,111 - - Negotino GA MSIP 11 / January 15, 2016 260,000 99,520 160,480 - - MSIP EU IPA grant 195,000 74,640 120,360 - - MSIP National co-financing 65,000 24,880 40,120 - - Gazi Baba GA MSIP 17 / February 25, 2016 124,202 105,748 18,454 - - MSIP EU IPA grant 90,000 79,311 10,689 - - MSIP National co-financing 30,000 26,437 3,563 - - Municipal contribution 4,202 - 4,202 - - Krivogashtani GA MSIP 18 / Febraury 23, 2016 260,000 104,935 155,065 - - MSIP EU IPA grant 195,000 78,701 116,299 - - MSIP National co-financing 65,000 26,234 38,766 - - Ministry of Finance of the Republic of Macedonia 49 “Municipal Services Improvement Project” IBRD Loan number 7699-MK, Loan number 8158-MK, EC IPA Grant No. TF 018812 and Loan number 8561-MK Project’s Financial Statements 31 December 2017 (Amounts in EUR) Statement of Breakdown of Loans and Grants (continued) Cumulative for the period from 29 June 2009 through 31 December 2017 Paid Payment Loan/grant loan/Grant Remaining Outstanding requests Municipality Loan/grant No. / WB approved date amount amount balance payments processed Gradsko GA MSIP 19 / Febraury 23, 2016 260,000 260,000 - - - MSIP EU IPA grant 195,000 195,000 - - - MSIP National co-financing 65,000 65,000 - - - Probishtip GA MSIP 28 / July 28, 2016 269,042 227,579 41,463 - - MSIP EU IPA grant 195,000 185,500 9,500 - - MSIP National co-financing 65,000 42,079 22,921 - - Municipal contribution 9,042 - 9,042 - - Tearce GA MSIP 20 / May 15, 2016 260,000 228,039 31,961 - - MSIP EU IPA grant 195,000 171,029 23,971 - - MSIP National co-financing 65,000 57,010 7,990 - - Demir Kapija GA MSIP 21 / April 4, 2016 492,416 90,906 401,510 - - MSIP EU IPA grant 195,000 53,867 141,133 - - MSIP National co-financing 65,000 17,956 47,044 - - Municipal contribution 232,416 19,083 213,333 - - Kriva Palanka GA MSIP 22 / July 1, 2016 290,394 118,856 171,538 - - MSIP EU IPA grant 195,000 89,142 105,858 - - MSIP National co-financing 65,000 29,714 35,286 - - Municipal contribution 30,394 - 30,394 - - Kumanovo GA MSIP 23 / July 1, 2016 116,457 76,103 40,354 - - MSIP EU IPA grant 56,972 57,077 (105) - - MSIP National co-financing 18,991 19,026 (35) - - Municipal contribution 40,494 - 40,494 - - Zrnovci GA MSIP 24 / July 1, 2016 406,432 405,853 579 - - MSIP EU IPA grant 195,000 194,566 434 - - MSIP National co-financing 65,000 64,855 145 - - Municipal contribution 146,432 146,432 - - - Mavrovo Rostushe GA MSIP 25 / July 1, 2016 260,000 - 260,000 - - MSIP EU IPA grant 195,000 - 195,000 - - MSIP National co-financing 65,000 - 65,000 - - Ministry of Finance of the Republic of Macedonia 50 “Municipal Services Improvement Project” IBRD Loan number 7699-MK, Loan number 8158-MK, EC IPA Grant No. TF 018812 and Loan number 8561-MK Project’s Financial Statements 31 December 2017 (Amounts in EUR) Statement of Breakdown of Loans and Grants (continued) Cumulative for the period from 29 June 2009 through 31 December 2017 Paid Payment Loan/grant loan/Grant Remaining Outstanding requests Municipality Loan/grant No. / WB approved date amount amount balance payments processed Demir Hisar GA MSIP 26 / September 21, 2016 400,484 196,749 203,735 - - MSIP EU IPA grant 195,000 147,562 47,438 - - MSIP National co-financing 65,000 49,187 15,813 - - Municipal contribution 140,484 - 140,484 - - Gevgelija GA MSIP 27 / July 1, 2016 1,712,602 911,222 801,380 - - MSIP EU IPA grant 195,000 195,000 - - - MSIP National co-financing 65,000 65,000 - - - Municipal contribution 1,452,602 651,222 801,380 - - Studenicani GA MSIP 23 / July 27, 2016 438,798 248,544 190,254 - - MSIP EU IPA grant 195,000 195,000 - - - MSIP National co-financing 65,000 53,544 11,456 - - Municipal contribution 178,798 - 178,798 - - Plasnica GA MSIP 23 / July 26, 2016 260,000 212,272 47,728 - - MSIP EU IPA grant 195,000 159,204 35,796 - - MSIP National co-financing 65,000 53,068 11,932 - - Veles GA MSIP 31 / August 8, 2016 152,700 113,850 38,850 - - MSIP EU IPA grant 90,000 85,388 4,612 - - MSIP National co-financing 30,000 28,462 1,538 - - Municipal contribution 32,700 - 32,700 - - Konce GA MSIP 32 / July 28, 2016 260,000 66,756 193,244 - - MSIP EU IPA grant 195,000 50,067 144,933 - - MSIP National co-financing 65,000 16,689 48,311 - - Aerodrom GA MSIP 33 / August 22, 2016 120,000 - 120,000 - - MSIP EU IPA grant 90,000 - 90,000 - - MSIP National co-financing 30,000 - 30,000 - - Rosoman GA MSIP 34 / July 28, 2016 370,063 331,741 38,322 - - MSIP EU IPA grant 195,000 195,000 - - - MSIP National co-financing 65,000 58,237 6,763 - - Municipal contribution 110,063 78,504 31,559 - - Ministry of Finance of the Republic of Macedonia 51 “Municipal Services Improvement Project” IBRD Loan number 7699-MK, Loan number 8158-MK, EC IPA Grant No. TF 018812 and Loan number 8561-MK Project’s Financial Statements 31 December 2017 (Amounts in EUR) Statement of Breakdown of Loans and Grants (continued) Cumulative for the period from 29 June 2009 through 31 December 2017 Paid Payment Loan/grant loan/Grant Remaining Outstanding requests Municipality Loan/grant No. / WB approved date amount amount balance payments processed Debar GA MSIP 35 / July 28, 2016 260,000 249,023 10,977 - - MSIP EU IPA grant 195,000 186,767 8,233 - - MSIP National co-financing 65,000 62,256 2,744 - - Vrapciste GA MSIP 36 / July 28, 2016 305,963 237,896 68,067 - - MSIP EU IPA grant 195,000 195,000 - - - MSIP National co-financing 65,000 42,896 22,104 - - Municipal contribution 45,963 - 45,963 - - Karbinci GA MSIP 37 / July 28, 2016 268,286 123,125 145,161 - - MSIP EU IPA grant 195,000 92,344 102,656 - - MSIP National co-financing 65,000 30,781 34,219 - - Municipal contribution 8,286 - 8,286 - - Kisela Voda GA MSIP 38 / September 26, 2016 135,322 - 135,322 - - MSIP EU IPA grant 90,000 - 90,000 - - MSIP National co-financing 30,000 - 30,000 - - Municipal contribution 15,322 - 15,322 - - Jegunovce GA MSIP 39 / September 26, 2016 260,000 251,723 8,277 - - MSIP EU IPA grant 195,000 188,792 6,208 - - MSIP National co-financing 65,000 62,931 2,069 - - Zelino GA MSIP 40 / September 26, 2016 362,239 240,820 121,419 - - MSIP EU IPA grant 195,000 173,100 21,900 - - MSIP National co-financing 65,000 57,700 7,300 - - Municipal contribution 102,239 10,020 92,219 - - Shuto Orizari GA MSIP 41 / September 30, 2016 120,000 74,008 45,992 - - MSIP EU IPA grant 90,000 55,506 34,494 - - MSIP National co-financing 30,000 18,502 11,498 - - Lipkovo GA MSIP 42 / October 10, 2016 270,968 248,863 22,105 - - MSIP EU IPA grant 195,000 186,647 8,353 - - MSIP National co-financing 65,000 62,216 2,784 - - Municipal contribution 10,968 - 10,968 - - Ministry of Finance of the Republic of Macedonia 52 “Municipal Services Improvement Project” IBRD Loan number 7699-MK, Loan number 8158-MK, EC IPA Grant No. TF 018812 and Loan number 8561-MK Project’s Financial Statements 31 December 2017 (Amounts in EUR) Statement of Breakdown of Loans and Grants (continued) Cumulative for the period from 29 June 2009 through 31 December 2017 Paid Payment Loan/grant loan/Grant Remaining Outstanding requests Municipality Loan/grant No. / WB approved date amount amount balance payments processed Pehchevo GA MSIP 43 / October 7, 2016 260,000 85,089 174,911 - - MSIP EU IPA grant 195,000 63,817 131,183 - - MSIP National co-financing 65,000 21,272 43,728 - - Kavadarci GA MSIP 44 / October 5, 2016 260,000 108,980 151,020 - - MSIP EU IPA grant 195,000 81,735 113,265 - - MSIP National co-financing 65,000 27,245 37,755 - - Zelenikovo GA MSIP 45 / October 7, 2016 260,000 31,491 228,509 - - MSIP EU IPA grant 195,000 23,618 171,382 - - MSIP National co-financing 65,000 7,873 57,127 - - Sopishte GA MSIP 46 / December 19, 2016 260,000 8,135 251,865 - - MSIP EU IPA grant 195,000 6,101 188,899 - - MSIP National co-financing 65,000 2,034 62,966 - - Kochani GA MSIP 47 / December 13, 2016 260,000 127,767 132,233 - - MSIP EU IPA grant 195,000 95,825 99,175 - - MSIP National co-financing 65,000 31,942 33,058 - - Butel GA MSIP 48 / December 12, 2016 167,907 - 167,907 - - MSIP EU IPA grant 90,000 - 90,000 - - MSIP National co-financing 30,000 - 30,000 - - Municipal contribution 47,907 - 47,907 - - Delchevo GA MSIP 49 / December 13, 2016 260,000 18,181 241,819 - - MSIP EU IPA grant 195,000 18,181 176,819 - - MSIP National co-financing 65,000 - 65,000 - - Dolneni GA MSIP 50 / December 14, 2016 260,000 - 260,000 - - MSIP EU IPA grant 195,000 - 195,000 - - MSIP National co-financing 65,000 - 65,000 - - Kichevo GA MSIP 51 / December 15, 2016 260,000 - 260,000 - - MSIP EU IPA grant 195,000 - 195,000 - - MSIP National co-financing 65,000 - 65,000 - - Ministry of Finance of the Republic of Macedonia 53 “Municipal Services Improvement Project” IBRD Loan number 7699-MK, Loan number 8158-MK, EC IPA Grant No. TF 018812 and Loan number 8561-MK Project’s Financial Statements 31 December 2017 (Amounts in EUR) Statement of Breakdown of Loans and Grants (continued) Cumulative for the period from 29 June 2009 through 31 December 2017 Paid Payment Loan/grant loan/Grant Remaining Outstanding requests Municipality Loan/grant No. / WB approved date amount amount balance payments processed Sveti Nikole GA MSIP 52 / December 15, 2016 260,000 - 260,000 - - MSIP EU IPA grant 195,000 - 195,000 - - MSIP National co-financing 65,000 - 65,000 - - Brvenica GA MSIP 53 / March 23, 2017 681,935 167,643 514,292 - - MSIP EU IPA grant 195,000 125,730 69,270 - - MSIP National co-financing 65,000 41,913 23,087 - - Municipal contribution 421,935 - 421,935 - - Lozovo GA MSIP 54 / March 31, 2017 260,000 - 260,000 - - MSIP EU IPA grant 195,000 - 195,000 - - MSIP National co-financing 65,000 - 65,000 - - Shtip GA MSIP 56 / March 31, 2017 120,000 - 120,000 - - MSIP EU IPA grant 90,000 - 90,000 - - MSIP National co-financing 30,000 - 30,000 - - Karposh GA MSIP 59 / April 13, 2017 120,000 - 120,000 - - MSIP EU IPA grant 90,000 - 90,000 - - MSIP National co-financing 30,000 - 30,000 - - Bitola GA MSIP 57 / April 13, 2017 120,000 - 120,000 - - MSIP EU IPA grant 90,000 - 90,000 - - MSIP National co-financing 30,000 - 30,000 - - Ohrid GA MSIP 58 / April 18, 2017 120,000 - 120,000 - - MSIP EU IPA grant 90,000 - 90,000 - - MSIP National co-financing 30,000 - 30,000 - - Arachinovo GA MSIP 55 / May 2, 2017 260,000 - 260,000 - - MSIP EU IPA grant 195,000 - 195,000 - - MSIP National co-financing 65,000 - 65,000 - - Chesinovo Obleshevo GA MSIP 60 / June 22, 2017 69,157 - 69,157 - - MSIP EU IPA grant 51,868 - 51,868 - - MSIP National co-financing 17,289 - 17,289 - - Ministry of Finance of the Republic of Macedonia 54 “Municipal Services Improvement Project” IBRD Loan number 7699-MK, Loan number 8158-MK, EC IPA Grant No. TF 018812 and Loan number 8561-MK Project’s Financial Statements 31 December 2017 (Amounts in EUR) Statement of Breakdown of Loans and Grants (continued) Cumulative for the period from 29 June 2009 through 31 December 2017 Paid Payment Loan/grant loan/Grant Remaining Outstanding requests Municipality Loan/grant No. / WB approved date amount amount balance payments processed Gostivar GA MSIP 61 / November 24, 2017 120,000 - 120,000 - - MSIP EU IPA grant 90,000 - 90,000 - - MSIP National co-financing 30,000 - 30,000 - - Gorce Petrov GA MSIP 62 / November 28, 2017 120,000 - 120,000 - - MSIP EU IPA grant 90,000 - 90,000 - - MSIP National co-financing 30,000 - 30,000 - - Struga GA MSIP 63 / November 29, 2017 260,000 - 260,000 - - MSIP EU IPA grant 195,000 - 195,000 - - MSIP National co-financing 65,000 - 65,000 - - Rankovce GA MSIP 66 / December 6, 2017 260,000 - 260,000 - - MSIP EU IPA grant 195,000 - 195,000 - - MSIP National co-financing 65,000 - 65,000 - - Tetovo GA MSIP 65 / December 29, 2017 120,000 - 120,000 - - MSIP EU IPA grant 90,000 - 90,000 - - MSIP National co-financing 30,000 - 30,000 - - Prilep GA MSIP 66 / December 29, 2017 120,000 - 120,000 - - MSIP EU IPA grant 90,000 - 90,000 - - MSIP National co-financing 30,000 - 30,000 - - Strumica GA MSIP 67 / December 28, 2017 120,000 - 120,000 - - MSIP EU IPA grant 90,000 - 90,000 - - MSIP National co-financing 30,000 - 30,000 - - Caska GA MSIP 68 / December 29, 2017 260,000 - 260,000 - - MSIP EU IPA grant 195,000 - 195,000 - - MSIP National co-financing 65,000 - 65,000 - - Staro Nagoricane GA MSIP 69 / December 28, 2017 260,000 - 260,000 - - MSIP EU IPA grant 195,000 - 195,000 - - MSIP National co-financing 65,000 - 65,000 - - Ministry of Finance of the Republic of Macedonia 55 “Municipal Services Improvement Project” IBRD Loan number 7699-MK, Loan number 8158-MK, EC IPA Grant No. TF 018812 and Loan number 8561-MK Project’s Financial Statements 31 December 2017 (Amounts in EUR) Statement of Breakdown of Loans and Grants (continued) Cumulative for the period from 29 June 2009 through 31 December 2017 Paid Payment Loan/grant loan/Grant Remaining Outstanding requests Municipality Loan/grant No. / WB approved date amount amount balance payments processed Petrovec GA MSIP 70 / December 29, 2017 260,000 - 260,000 - - MSIP EU IPA grant 195,000 - 195,000 - - MSIP National co-financing 65,000 - 65,000 - - Cucer Sandevo GA MSIP 71 / December 29, 2017 260,000 - 260,000 - - MSIP EU IPA grant 195,000 - 195,000 - - MSIP National co-financing 65,000 - 65,000 - - Saraj GA MSIP 72 / December 29, 2017 120,000 - 120,000 - - MSIP EU IPA grant 90,000 - 90,000 - - MSIP National co-financing 30,000 - 30,000 - - Valandovo GA MSIP 73 / December 29, 2017 260,000 - 260,000 - - MSIP EU IPA grant 195,000 - 195,000 - - MSIP National co-financing 65,000 - 65,000 - - Dojran GA MSIP 74 / December 29, 2017 260,000 - 260,000 - - MSIP EU IPA grant 195,000 - 195,000 - - MSIP National co-financing 65,000 - 65,000 - - Vinica GA MSIP 75 / December 29, 2017 260,000 - 260,000 - - MSIP EU IPA grant 195,000 - 195,000 - - MSIP National co-financing 65,000 - 65,000 - - IPA investment grant-other municipalities 1,029,476 - 1,029,476 - - Ministry of Finance of the Republic of Macedonia 56 “Municipal Services Improvement Project” IBRD Loan number 7699-MK, Loan number 8158-MK, EC IPA Grant No. TF 018812 and Loan number 8561-MK Project’s Financial Statements 31 December 2017 Statement of Withdrawals – Designated Account (Amounts in EUR) For the period from 01 January 2017 through 31 December 2017 Application # and date Total Total Requested Disbursed Difference Original Loan 7699-MK #18/ 21 December 2016 944,478 944,478 - #19/ 23 May 2017 224,817 224,817 1,169,295 1,169,295 - Additional Financing 8158-MK #12/ 30 March 2017 1,986,902 1,986,902 - #13/ 22 May 2017 1,911,762 1,911,762 - #14/ 13 November 2017 2,851,607 2,851,607 - 6,750,271 6,750,271 - World bank-MSIP EC IPA #4/ 06 March 2017 921,649 921,649 - #5/ 02 May 2017 889,564 889,564 - #6/ 27 June 2017 990,882 990,882 - #7/ 04 September 2017 659,383 659,383 - #8/ 28 September 2017 671,625 671,625 - #9/ 30 October 2017 740,375 740,375 - 4,873,478 4,873,478 - World bank-MSIP2 8561-MK #1/ 28 September 2017 500,000 500,000 - 500,000 500,000 - MSIP EC NKF 1 / 28 December 2017 1,750,004 1,750,004 - 1,750,004 1,750,004 - Ministry of Finance of the Republic of Macedonia 57 “Municipal Services Improvement Project” IBRD Loan number 7699-MK, Loan number 8158-MK, EC IPA Grant No. TF 018812 and Loan number 8561-MK Project’s Financial Statements 31 December 2017 Statement of Withdrawals – Designated Account (continued) (Amounts in EUR) For the period from 01 January 2016 through 31 December 2016 Application # and date Total Total Requested Disbursed Difference Original Loan 7699-MK #17/ 21 December 2015 813,576 813,576 - 813,576 813,576 - Additional Financing 8158-MK #8/ 15 December 2015 1,923,603 1,923,603 - #9/ 24 March 2016 2,413,210 2,413,210 - #10/ 20 June 2016 2,048,128 2,048,128 - #11/ 28 November 2016 2,427,202 2,427,202 - 8,812,143 8,812,143 - World bank-MSIP EC IPA #2/ 09 May 2016 700,000 700,000 - #3/ 27 October 2016 639,094 639,094 - 1,339,094 1,339,094 MSIP EC NKF 1 / 26 December 2016 219,901 219,901 - 219,901 219,901 Ministry of Finance of the Republic of Macedonia 58 “Municipal Services Improvement Project” IBRD Loan number 7699-MK, Loan number 8158-MK, EC IPA Grant No. TF 018812 and Loan number 8561-MK Project’s Financial Statements 31 December 2017 Statement of Designated Account – EUR Account number 0701-978-001129.6 Depository Bank National Bank of the Republic of Macedonia Blvd Kuzman Josifovski Pitu 1, 1000 Skopje, Republic of Address Macedonia Loan Number 7699-MK Currency EUR (Amounts in EUR) For the period from 01 January 2017 through 01 January 2016 through 31 December 2017 31 December 2016 At 01 January 939,690 1,090,880 Add: Inflows Replenishment during the period 1,169,295 813,576 Interest received - 10,275 1,169,295 823,851 Deduct: Outflows Transfer to treasury account (Mirror designated account) - MKD (200,090) (964,766) Interest paid to Ministry of Finance - (10,275) (200,090) (975,041) At 31 December 1,908,895 939,690 Account number 0701 -978- 001360.4 Depository Bank National Bank of the Republic of Macedonia Blvd Kuzman Josifovski Pitu 1, 1000 Skopje, Republic of Address Macedonia Loan Number 8158-MK Currency EUR (Amounts in EUR) For the period from 01 January 2017 through 01 January 2016 through 31 December 2017 31 December 2016 At 01 January 1,013,098 367,516 Add: Inflows Replenishment during the period 6,750,271 8,812,143 Interest received - 9,300 6,750,271 8,821,443 Deduct: Outflows Transfer to treasury account (Mirror designated account) - MKD (6,922,518) (8,106,617) Transfer to treasury account-7699 - (59,944) Interest paid to Ministry of Finance - (9,300) (6,922,518) (8,175,861) At 31 December 840,851 1,013,098 Ministry of Finance of the Republic of Macedonia 59 “Municipal Services Improvement Project” IBRD Loan number 7699-MK, Loan number 8158-MK, EC IPA Grant No. TF 018812 and Loan number 8561-MK Project’s Financial Statements 31 December 2017 Statement of Designated Account – EUR (continued) Account number 00-701-000152.8 Depository Bank National Bank of the Republic of Macedonia Blvd Kuzman Josifovski Pitu 1, 1000 Skopje, Republic of Address Macedonia Loan Number MSIP IPA EU GRANT Currency EUR (Amounts in EUR) For the period from 01 January 2017 through 01 January 2016 through 31 December 2017 31 December 2016 At 01 January 80,929 121 Add: Inflows Replenishment during the period 4,873,478 1,339,094 Interest received - 2,578 4,873,478 1,341,672 Deduct: Outflows Transfer to treasury account (Mirror designated account) - MKD (4,874,368) (1,260,864) (4,874,368) (1,260,864) At 31 December 80,039 80,929 Account number 00-701-0001627.1 Depository Bank National Bank of the Republic of Macedonia Blvd Kuzman Josifovski Pitu 1, 1000 Skopje, Republic of Address Macedonia Loan Number 8561-MK Currency EUR (Amounts in EUR) For the period from 01 January 2017 through 01 January 2016 through 31 December 2017 31 December 2016 At 01 January - - Add: Inflows Replenishment during the period 500,000 - Interest received - - 500,000 - Deduct: Outflows Transfer to treasury account (Mirror designated account) - MKD - - - - At 31 December 500,000 - Ministry of Finance of the Republic of Macedonia 60 “Municipal Services Improvement Project” IBRD Loan number 7699-MK, Loan number 8158-MK, EC IPA Grant No. TF 018812 and Loan number 8561-MK Project’s Financial Statements 31 December 2017 Statement of Treasury Account (Mirror Designated Account) – MKD Account number 090010016778666 Depository Bank National Bank of the Republic of Macedonia Address Blvd Kuzman Josifovski Pitu 1, 1000 Skopje, Republic of Macedonia Loan Number 7699-MK Currency Macedonian Denars (“MKD”) (Amounts in EUR) For the period from 01 January 2017 through 01 January 2016 through 31 December 2017 31 December 2016 At 01 January 47,189 146,460 Add: Inflows Transfer from designated account – EUR 200,090 964,766 Transfer from account 8158 - EUR - 59,944 Return of principal from the Municipality of Stip 1,908,121 1,637,487 Returned sub loan funds on treasury account* 82,505 141,548 Return of principal from Ministry of finance to the project account - 11,776 Transfer from insurance company for compensation for damage 817 - 2,191,533 2,815,521 Deduct: Outflows Amount of eligible expenses paid during the period (265,682) (1,215,138) Transfer of funds to Ministry of Finance for returned principal and interest from the Municipality of Stip (1,908,121) (1,637,487) Returned funds to account 8158 - MKD - (59,944) Transferred funds for compensation for damage from casco insurance (817) - Transfer to Petty Cash in Denar account (1,224) (1,716) Transfer to Petty Cash in Euro account (3,000) (507) (2,178,844) (2,914,792) At 31 December 59,878 47,189 * On November 19, 2013 based on the mutual agreement between the Ministry of Finance and the Municipality of Stip (as signatories of the Agreement), the Government of the Republic of Macedonia made a decision to terminate Sub-loan Agreement No. MSIP 06/ 5 April 2011, before the completion of the sub-project “Arrangement of the central city area in Stip”. According to the Sub-loan Agreement conditions the Municipality of Stip is obliged to return the used amount received prior to the termination of this Sub-loan agreement. On 17 December 2013, the Municipality of Stip returned portion of the disbursed sub-loan funds to the MSIP project. During 2016, additional portion of the disbursed sub-loan in the amount of 141,548 EUR was returned to MSIP project in 12 equal instalments. These funds are deposited on the MSIP Treasury account and are used for financing of the Project’s eligible expenditures. During 2017, additional portion of the disbursed sub-loan in the amount of 82,505 EUR was returned to MSIP project in 12 equal instalments. These funds are deposited on the MSIP Treasury account and are used for financing of the Project’s eligible expenditures. Ministry of Finance of the Republic of Macedonia 61 “Municipal Services Improvement Project” IBRD Loan number 7699-MK, Loan number 8158-MK, EC IPA Grant No. TF 018812 and Loan number 8561-MK Project’s Financial Statements 31 December 2017 Statement of Treasury Account (Mirror Designated Account) – MKD (continued) Account number 090010016778685 Depository Bank National Bank of the Republic of Macedonia Blvd Kuzman Josifovski Pitu 1, 1000 Skopje, Republic of Address Macedonia Loan Number 8158-MK Currency Macedonian Denars (“MKD”) (Amounts in EUR) For the period from 01 January 2017 through 01 January 2016 through 31 December 2017 31 December 2016 At 01 January - - Add: Inflows Transfer from designated account – EUR 6,922,518 8,106,617 Interest received 649,323 400,159 Transfer from treasury account-7699 - 59,944 Returned money from City of Skopje - 20,036 7,571,841 8,586,756 Deduct: Outflows Amount of eligible expenses paid during the period (6,922,518) (8,166,561) Interest paid (649,323) (400,159) Wrongly transferred money to City of Skopje - (20,036) (7,571,841) (8,586,756) At 31 December - - Account number 090010016778505 Depository Bank National Bank of the Republic of Macedonia Blvd Kuzman Josifovski Pitu 1, 1000 Skopje, Republic of Address Macedonia Loan Number MSIP EU IPA GRANT Currency Macedonian Denars (“MKD”) (Amounts in EUR) For the period from 01 January 2017 through 01 January 2016 through 31 December 2017 31 December 2016 At 01 January - 1 Add: Inflows Transfer from designated account – EUR 4,874,368 1,260,864 4,874,368 1,260,864 Deduct: Outflows Amount of eligible expenses paid during the period (4,874,368) (1,260,865) (4,874,368) (1,260,865) At 31 December - - Ministry of Finance of the Republic of Macedonia 62 “Municipal Services Improvement Project” IBRD Loan number 7699-MK, Loan number 8158-MK, EC IPA Grant No. TF 018812 and Loan number 8561-MK Project’s Financial Statements 31 December 2017 Statement of Treasury Account (Mirror Designated Account) – MKD (continued) Account number 090010016778929 Depository Bank National Bank of the Republic of Macedonia Blvd Kuzman Josifovski Pitu 1, 1000 Skopje, Republic of Address Macedonia Loan Number MSIP IPA NKF Currency Macedonian Denars (“MKD”) (Amounts in EUR) For the period from 01 January 2017 through 01 January 2016 through 31 December 2017 31 December 2016 At 01 January - - Add: Inflows Transfer from Ministry of Finance of the Republic of Macedonia (Agency for financial support of agriculture and rural development) 161,862 219,201 161,862 219,201 Deduct: Outflows Amount of eligible expenses paid during the period (161,862) (219,201) (161,862) (219,201) At 31 December - - Account number 090010016760310 Depository Bank National Bank of the Republic of Macedonia Blvd Kuzman Josifovski Pitu 1, 1000 Skopje, Republic of Address Macedonia Loan Number MSIP IPA NKF Currency Macedonian Denars (“MKD”) (Amounts in EUR) For the period from 01 January 2017 through 01 January 2016 through 31 December 2017 31 December 2016 At 01 January - - Add: Inflows Transfer from Ministry of Finance of the Republic of Macedonia (Agency for financial support of agriculture and rural development) 1,599,822 - Returned funds from Municipality Brvenica and Veles on treasury account 11,680 - 1,611,502 - Deduct: Outflows Amount of eligible expenses paid during the period (1,599,822) - Transferred more funds to Municipality Brvanica and Veles (11,680) - (1,611,502) - At 31 December - - Ministry of Finance of the Republic of Macedonia 63 “Municipal Services Improvement Project” IBRD Loan number 7699-MK, Loan number 8158-MK, EC IPA Grant No. TF 018812 and Loan number 8561-MK Project’s Financial Statements 31 December 2017 Statement of Petty Cash in Denar Account Loan Number 7699-MK Currency Macedonian Denars (“MKD”) (Amounts in EUR) For the period from 01 January 2017 through 01 January 2016 through 31 December 2017 31 December 2016 At 01 January 72 204 Add: Inflows Transfer from Mirror Designated Account – MKD 1,224 1,716 1,224 1,716 Deduct: Outflows Amount of eligible expenses paid during the period (1,159) (1,848) (1,159) (1,848) At 31 December 137 72 Ministry of Finance of the Republic of Macedonia 64 “Municipal Services Improvement Project” IBRD Loan number 7699-MK, Loan number 8158-MK, EC IPA Grant No. TF 018812 and Loan number 8561-MK Project’s Financial Statements 31 December 2017 Statement of Petty Cash in Euro Account Loan Number 7699-MK Currency EUR (Amounts in EUR) For the period from 01 January 2017 through 01 January 2016 through 31 December 2017 31 December 2016 At 01 January - 383 Add: Inflows Transfer from Mirror Designated Account – MKD 3,000 507 Returned advances for business trip 684 - 3,684 507 Deduct: Outflows Amount of eligible expenses paid during the period (2,316) (890) Advances for business trip (684) - (3,000) (890) At 31 December 684 - Ministry Finance of the Republic of Macedonia 65 “Municipal Services Improvement Project” IBRD Loan number 7699-MK, Loan number 8158-MK, EC IPA Grant No. TF 018812 and Loan number 8561-MK Notes to Project’s financial statements 1 General On 29 June 2009, the Ministry of Finance of the Republic of Macedonia (MoF), entered into the Loan Agreement numbered 7699-MK with the International Bank for Reconstruction and Development (“IBRD”) for financing the “Municipal Services Improvement Project” (further referred to as “the Project”) in the amount of EUR 18,900,000. On 04 August 2009, IBRD accepted the evidence submitted in fulfilling the conditions precedent to the effectiveness of the Loan Agreement and consequently the Project and the Loan Agreement became effective on the aforementioned date. Reallocation of the loan proceeds was done on 20 December 2011. According to the amendment of the Loan Agreement signed on 7 June 2012, the Closing Date of the Project is 30 November 2017, which was subsequently extended with the Loan Amendment signed on 24 December 2014. The Closing Date of the project is March 2019. In response to high demand of municipalities and allocation of funds under Component A in December 2011, MoF formally requested IBRD to Provide additional financing. The loan was signed on 7 June 2012 and funds became effective on 10 July 2012 for additional financing in the amount of EUR 37,200,000. On 24 December 2014 the Ministry of Finance of the Republic of Macedonia (MoF), entered into the Grant Agreement EC IPA Grant No. TF018812 with the International Bank for Reconstruction and Development (“IBRD”) for financing the “Municipal Services Improvement Project” acting as administrator of grant funds provided by the European Commission under the EC IPA Rural Investment Single Donor Trust Fund in an amount not to exceed EUR 14,647,500. The Grant is funded out of this trust fund for which the World Bank receives periodic contribution from the Donor. On 14 January 2016 the Ministry of Finance of the Republic of Macedonia (MoF), entered into the Grant Agreement 8561- MKD with the International Bank for Reconstruction and Development (“IBRD”) for financing ”Second Municipal Services Improvement Project” in an amount not to exceed EUR 25,000,000. Ministry Finance of the Republic of Macedonia 66 “Municipal Services Improvement Project” IBRD Loan number 7699-MK, Loan number 8158-MK, EC IPA Grant No. TF 018812 and Loan number 8561-MK Notes to the Projects’ financial statements (continued) General (continued) The following table underlines the categories of Eligible Expenditures that may be financed out of the proceeds of the Loan (“Category”), the allocation of the amounts of the Loan to each Category, and the percentage of expenditures to be financed for the Eligible Expenditures in each Category: Amount of the Amount of the Amount of the Loan allocated Loan allocated Loan allocated (expressed in (expressed in (expressed in Euro) Euro) Percentage of Euro) Additional MSIP2 Total the Revised original financing (expressed in Expenditures to Category values values Euro) be financed 1. Sub-loans under Component A of the Project 16,540,650 31,473,000 - 48,013,650 100% 2. Goods, Works, Consultants’ services and Training for the Project 256,050 1,824,700 24,937,500 27,018,250 100% 3. Grants under Component C of the Project 1,300,000 2,902,000 - 4,202,000 100% 4. Operating Costs 756,050 907,300 - 1,663,350 100% 5. Front-end Fee 47,250 93,000 62,500 202,750 0.25% Total 18,900,000 37,200,000 25,000,000 81,100,000 According to the provisions of the Loan Agreement, the Borrower is liable to repay the principal amount of the Loan in semi-annual installments in the amount of EUR 1,181,250 payable each 15th February and 15th August, commencing 15 August 2014 through 15 February 2022. The Borrower is liable to pay to IBRD a front-end fee equal to 1/4 of 1% (0.25%) of the Loan amount and interest for each interest period equal to LIBOR for the Loan Currency plus a Variable Spread. 2 Project Objectives, Activities and Institutional Arrangements Project Objectives and Activities The objective of the Project is to improve transparency, financial sustainability and delivery of targeted municipal services in the Participating Municipalities. The Project consists of four components: Component A: Municipal Investments Provision of Sub-loans to the Participating Municipalities to finance Sub-projects in the area of water and sanitation services, solid waste management and other revenue-generating or cost saving investments in communal services selected in accordance with the criteria and procedures set forth in the Project Operational Manual. Component B: Capacity Building and Institutional Reform 1. Provision of consultants’ services and Training to the Participating Municipalities to assist with Sub- projects preparation and implementation. 2. Provision of consultants’ services and Training to the Participating Municipalities and their communal service enterprises to strengthen their capacity in service provision, communications and public outreach activities and in meeting the selection criteria for Performance-based Investment Grants under Component C of the Project. 3. Institutional strengthening of the Borrower’s national agencies through study of policy issues and strategy development related to the financial sustainability of municipal services. Ministry Finance of the Republic of Macedonia 67 “Municipal Services Improvement Project” IBRD Loan number 7699-MK, Loan number 8158-MK, EC IPA Grant No. TF 018812 and Loan number 8561-MK Notes to the Projects’ financial statements (continued) Project Objectives, Activities and Institutional Arrangements (continued) Component C: Performance-based Investment Grants Provision of Performance-based Investment Grants to selected Participating Municipalities that meet the performance criteria set forth in the POM as an incentive and reward for improving the performance of municipal service delivery. Component D: Project Management, Monitoring and Evaluation Strengthening the capacity of PMU, Participating Municipalities and their communal service enterprises for Project management, monitoring and evaluation through the provision of goods, consultant services, including Project audit, Training, and financing of Operating Costs. As of 24 December 2014, with the Amendments to both Loan Agreements, a new Component E has been added to Schedule. Component E: IPA Rural Investment Window 1. Provision of investment Sub-Grants to EC IPA Participating Municipalities 2. Provision of technical assistance in the form of consulting services, including technical assistance, surveys, studies and trainings to EC IPA Participating Municipalities, for the preparation of technical documentation, relevant analysis and studies for potential sub- projects, assistance on procedural and accounting issues, facilitation of workshop on common constraints, lessons learnt and best practices, etc. The technical assistance is to insure all EC IPA Participating Municipalities are able to benefit from investment Sub- Grants. 3. Financing of operational expenditure of the PMU related to the implementation of the part titled component E. Institutional Arrangements At all times during the implementation of the Project the Borrower shall maintain the Project Coordination Committee with a composition, resources and terms of reference satisfactory to the Bank. Throughout the duration of the Project the Borrower shall maintain the Project Management Unit responsible for overall management, coordination, monitoring and evaluation of the Project with a composition, staff, resources and terms of reference satisfactory to the Bank. The Borrower shall carry out the Project in accordance with the Project Operational Manual and shall not amend, suspend, abrogate, repeal or waive any provision of said Manual without the prior approval of the Bank. Ministry Finance of the Republic of Macedonia 68 “Municipal Services Improvement Project” IBRD Loan number 7699-MK, Loan number 8158-MK, EC IPA Grant No. TF 018812 and Loan number 8561-MK Notes to the Projects’ financial statements (continued) 3 Accounting policies Following are the principle accounting policies adopted in preparation of these financial statements. These accounting policies are consistently applied to all financial periods presented. Basis of preparation The accompanying financial statements have been prepared for the purposes of reporting to IBRD, on the activities of the Project related to the loan received for the completion of the Project’s objectives, in accordance with the respective provisions set out in the Loan Agreement numbered 7699-MK, Loan numbered 8158-MK and Loan numbered 8561-MK signed between the IBRD and MoF. These financial statements are prepared on the cash receipts and disbursement basis and include all Project - related expenditures incurred, which are financed under the provisions set out in Loan Agreement numbered 7699-MK dated 29 June 2009, Disbursement letter dated 29 June 2009, Loan Agreement numbered 8158-MK dated 7 June 2012, EC IPA Grant No. TF 018812, Disbursement letter, dated 24 December 2014 and Loan Agreement numbered 8561-MK dated 14 January 2016, Disbursement letter, dated 14 January 2016. These instructions closely follow the World Bank’s Disbursement Guidelines for Projects. The financial statements have been prepared for the period from 01 January 2017 through 31 December 2017. Currency translation All accounts are kept in Euro as this is the reporting currency of the Project. Transactions denominated in currencies other than Euro are translated using the Buying Foreign exchange rates of the National Bank of the Republic of Macedonia for international payment operations of the government bodies of Republic of Macedonia prevailing at the date of the transaction. www.grant-thornton.com.mk