Financial Monitoring Reports Republic of Belarus BELARUS BIOMASS DISTRICT HEATING PROJECT Implemented by PMU established in RUE "Belinvestenenergosberezhenie" Financed by the World Bank Loan No. 8351-0-ВY For the period from 01.04.2017 till 30.06.2017 Cash model Table of Contents A Description of a project progress FINANCIAL REPORTS 1A Project Sources and Uses of Funds 2a Uses of Funds by Project Activity 3 Special Account 4 Statement of Expenditure Withdrawal Schedule PROCUREMENT REPORTS 5 Procurement Plan Implementation 6 Bank account statement Financial Monitoring Report Report 1-A (FMR) Cash Method Republic of Belarus BELARUS BIOMASS DISTRICT HEATING PROJECT Financed by World Bank Loan No. 8351-0-BY Project Sources & Uses of Funds For the period ending 30 June, 2017 In US Dollars Cumulative PAD /ii Revised PAD Current kvarter Current year To-Date /iii Life of Project Opening Cash Balance 438,638 1,041,336 0 Project Bank Account IBRD Special Account 438,638 1,041,336 IBRD Special Account (Belarusian rubles in the US dollars equivalent on the account in Belarusian rubles) Total 438,638 1,041,336 0 Add: Sources of Funds Government Funds IBRD Funds 10,000,000 12,400,000 37,605,000 Direct payments 0 0 225,000 Special Account 10,000,000 12,400,000 37,380,000 Total 10,000,000 12,400,000 37,605,000 ` Foreign Exchange Difference Less: Uses of Funds Financed by IBRD 7,473,789 10,476,487 34,640,151 90,000,000 89,775,000 Works, goods, consultant's services, training 7,473,789 10,476,487 34,415,151 Front End Fee 0 225,000 225,000 Financed by Government Total 7,473,789 10,476,487 34,640,151 Closing Cash Balance Project Bank Account IBRD Special Account 2,964,849 2,964,849 2,964,849 Total 2,964,849 2,964,849 2,964,849 NOTES /i: The amounts are drawn from the ledger accounts of the project. /ii: The figures in this column are derived from the PAD, reflecting any subsequent updating. When significant movements have occurred against the Special Account currency, these figures will be updated to the ruling rate of exchange at the latest quarter-end. Project Information Country: the Republic of Belarus Borrower: the Republic of Belarus Project Name: Biomass District Heating Project Loan №:8351-BY 10350 Implementing Agency: RUE "Belinvestenergosberezhenie" Bank's Approval Date of the Procurement Plan: 28.01.2014 Date of General Procurement Notice: 28.02.2014 Period Covered with this Procurement Plan: 18 months Loan Closing Date: 31.12.2019 October, 2018 Package № Contract Description Type Estimated Procureme Coordinatio Invitation to Bid Expected Contract Award Expected Contract Initial Contract Contractor's Name Current Status of Contract Cost nt Method n with the Bid/Proposal Completion Date Currency Amount / Final Implementation (WB funds) Bank Opening Date Contract price after [US$ million] completion 88.30 Construction of a 3 MW Biomass-Fired Boiler 2.346 Plan May 2014 July_2014 BDHP/ICB/14/01 House in Kholopenichi Settlement, Krupki S&I Revised ICB Prior cancelled Cancelled District incl. Modernization of Heat Networks Actual 5/7/2014 6/18/2014 2.30 Plan October 2015 December 2015 February 2016 January 2017 Construction of a 3 MW Biomass-Fired Boiler Consortium Gomel 2.20 Revised USD 1 979 000/ House in Kholopenichi Settlement, Krupki Works Kommunalnik BDHP/ICB/14/01 S&I ICB Post 1 779 000/ The site was put to operation. District incl. Modernization of Heat Networks (re- 24.12.2016/ OJSC and Komkont Actual 1 749 771,73 bidding) 1.750 11/5/2015 12/17/2015 2/26/2016 24.06.2017/ JLLC 01.09.2017 4.505 Plan June 2014 August 2014 September 2014 October 2015 Construction of a Biomass-Fired Boiler House Consortium of Virel incl. Reconstruction of a Heating Main, Central Revised 3 870 000/ Ltd., ADS-2000 Ltd., BDHP/ICB/14/02 S&I ICB Prior USD The site was put to operation. Heat supply Station in Kadino Settlement, 3 868 727,98 Evrostroiservis PUECE Mogilev District 3.869 Actual 10.06.2014 8/7/2014 12/16/2014 1/12/2016 (Petrov I.V.) Modernization of Heat Supply System in 2.650 Plan June 2014 August 2014 October 2014 October 2015 Consortium of Virel Cherikov Town incl. Replacement of DKVR- Ltd., Komkont JLLC, BDHP/ICB/14/03 S&I Revised ICB Post USD 3,306,000 The site was put to operation. 10/13 Gas Boilers for 2 Biomass Boilers with Evrostroiservis PUECE Total capacity of 4,2 MW (Petrov I.V.) 3.306 Actual 02.10.2014 19.11.2014 20.12.2014 3/15/2016 Modernization of heat supply system in Ivanovo Town 8.270 Plan August 2014 October 2014 December 2014 November 2016 5 372 950/ Consortium of through Installation Biomass Boilers with total 6.70 Revised BDHP/ICB/14/04 S&I ICB Prior USD 5 349 326,74/ "Stroitrest No 8" and The site was put to operation. capacity of 10 MW and Replacement of Peak Gas 02.03.2017/ Boilers by energyefficient Ones 5.205 Actual 09.12.2014 06.02.2015 06.08.2015 5 204 591,56 OJSC GSKB 28.04.2017 11.000 Plan December 2014 February 2015 April 2015 February 2017 Consortium ATTSU Reconstruction of Boiler House in Tekser TERMIKA SL (Spain) Housing Estate, Baranovichi Town with 8.70 Revised BDHP/ICB/15/01 S&I ICB Prior USD 6,888,370 and The contract was terminated Capacity Increase and Installation of Boilers 6.89 Actual 26.03.2015 29.05.2015 07.08.2015 2/25/2017 «Armakom» LLC Firing Domestic Fuels (6 MW) (Belarus) - Reconstruction of Boiler House in Tekser The contract is under 31.03.2018/ Housing Estate, Baranovichi Town with 14.07.2017 - implementation, construction and BDHP/DC/17/02 S&I 2.2 Actual DC Post N/A N/A 30.06.2018/ USD 2 100 000/2 211 230 LLC "Uniongas" Capacity Increase and Installation of Boilers contract signed installation works are being 31.12.2018 performed. Firing Domestic Fuels (6 MW) 3.375 Plan April 2015 June 2015 August 2015 June 2017 Construction of Biomass-fired Boiler House in 1.80 Revised Consortium of Virel Ltd. BDHP/ICB/15/02 S&I ICB Post USD 1780000/1 909 745,88 The site was put to operation. Tyshkevich str., Berioza Town 20.06.2016/ and Komkont JLLC 1.91 Actual 11.03.2015 29.05.2015 7/24/2015 01.08.2016/ 14.10.2016 14.100 Plan February 2015 April 2015 August 2015 February 2017 Construction of Boiler House with Mini-CHP in BDHP/ICB/15/03 S&I Revised ICB Prior Cancelled S.Pankova str. in Volkovysk Town cancelled Actual 23.04.2015 10.07.2015 14.10 Plan April 2016 June 2016 October 2016 April 2018 Consortium Virel LLC Construction of Boiler House with Mini-CHP in 13.80 Revised and BDHP/ICB/15/03 S&I ICB Prior USD 8,820,000 The site was put to operation. S.Pankova str. in Volkovysk Town (re-bidding) Belenergoremnaladka 8.82 Actual 02.05.2016 29.06.2016 06.09.2016 03.04.2018 OJSC 2.400 Plan June 2015 August 2015 October 2015 July 2016 Heat supply Optimization in Ziabrovka OJSC "Gomel works BDHP/ICB/15/04 S&I Revised ICB Post Страница 3 USD 2,380,001 The site was put to operation. Pplan_PCRP_add_financ_2010 settlement, Gomel District Kommunalnik" 2.38 Actual 08.07.2015 8/18/2015 10/8/2015 10/4/2016 9.600 Plan June 2015 August 2015 October 2015 January 2017 Consruction of a Wood Biomass Energy Source Consruction of a Wood Biomass Energy Source BDHP/ICB/15/05 S&I 6.68 Revised ICB Prior Cancelled in Starye Dorogi Town cancelled Actual 17.07.2015 9/10/2015 9.60 Plan April 2016 June 2016 October 2016 December 2017 Consortium Virel LLC, Consruction of a Wood Biomass Energy Source 4590000,05/ BDHP/ICB/15/05 S&I 5.76 Revised ICB Prior USD Belenergoremnaladka The site was put to operation. in Starye Dorogi Town (re-bidding) 4568891,44 4.57 Actual 06.05.2016 6/27/2016 8/18/2016 10/14/2017 OJSC, Komkont JLLC 17.135 Plan August 2015 October 2015 December 2015 July 2017 16.85 Revised ICB 13 480 488/ Consortium CJSC Construction of local fuel-fired mini-CHP plant at 02.12.2017/ Certificate of acceptance is BDHP/ICB/15/06 S&I Prior USD 14 220 456,27/ Belzarubezhstroy and boiler house at 10 Surkov st., Kalinkovichi town 25.02.2018/ being signed. 14 170 785,17 CJSC Enerstena 14.17 Actual 20.08.2015 12/3/2015 5/6/2016 06.03.2018/ 31.05.2018/ 31.08.2018 Optimization of Heat Supply System of Cherven 8.000 Plan July 2015 September 2015 November 2015 March 2017 Consortium Armakom Town incl. Construction of a New Heat Source 7.75 Revised BDHP/ICB/15/07 S&I ICB Prior USD 5,878,000 LLC, ENERSTENA The contract was terminated on the Basis of "Gruppovaya" Boiler House CJSC - TERMINATED 5.878 Actual 24.07.2015 9/25/2015 12/8/2015 4/30/2017 Optimization of Heat Supply System of Cherven Construction and installation 04.07.2017 - 30.09.2018/ BDHP/DC/17/01 Town incl. Construction of a New Heat Source S&I 5.878 Actual DC Post N/A N/A USD 5 878 000/5 443 884,81 ENERSTENA CJSC works are being performed. contract signed 30.09.2019 on the Basis of "Gruppovaya" Boiler House Equipment is being supplied. 3.700 Plan September 2015 October 2015 December 2015 December 2016 Consortium Virel LLC, Construction of a New Boiler House in Proximity Eurotechprom LLC, BDHP/ICB/15/08 to the Center of Loads in Zarechye Settlement, S&I 2.95 Revised ICB Post USD 2,841,000 The site was put to operation. Mogilevtechmontazh Rechitsa District 2.841 Actual 9/29/2015 11/10/2015 12/8/2015 12/19/2016 OJSC Modernization of Heat Supply System in 1.219 Plan March 2016 May 2016 July 2016 January 2017 Consortium RUE Veremeiki Settlement incl. Construction of a 1.4687 Revised "Kalinkovichivodstroy", BDHP/ICB/16/01 S&I ICB Post USD 1,179,254.05 The site was put to operation. Boiler House with Installation of One Gas-Fired LLC "NPP Boiler and Two Biomass-Fired Boilers 1.179 Actual 11.05.2016 28.06.2016 29.07.2016 25.08.2017 "PromTeploEnerghetika" “Construction of a Block-Modular Domestic Fuel 2.94 Plan May 2018 July 2018 September 2018 October 2019 Consortium of LLC Fired Boiler House on the Territory of Boiler “Virel� and JLLC The contract is under BDHP/ICB/18/01 S&I 4.1 Revised ICB Post May 2018 July 2018 October 2018 November 2019 USD 3,890,500.00 House No.1 in 109 Sovetskaya Str. in the City of “Komkont� implementation. Kobryn� 3.891 Actual 29.05.2018 16.07.2018 04.10.2018 19.10.2019 3.82 Plan June 2018 August 2018 October 2018 November 2019 Bids are complited.Awarded Bidder: Gomel Works “Construction of a Block-Modular Domestic Fuel Kommunalnik OJSC, JLLC “Komkont� Fired Boiler House in Prishchepy Str. in the 3.7 Revised Contract Price: USD 3 776 760. Due to the successful BDHP/ICB/18/02 S&I ICB Post USD Town of Buda-Koshelevo with Re-laying of Bidder's request and the Employer's no-objection the Heating Mains� Actual 21.06.2018 02.08.2018 contract signing term was deferred from October 15, 2018 to October 31, 2018. “Reconstruction of the Boiler House in 5.63 Plan June 2018 August 2018 Cancelled. Neither of the Bidders corresponded to the BDHP/ICB/18/03 Borovlyany Vill. with Installation of Domestic S&I 5.47 Revised ICB Post cancelled criteria of the Bidding Documents. Fuel Boilers� Actual 22.06.2018 06.08.2018 5.63 Plan October 2018 November 2018 January 2019 April 2020 “Reconstruction of the Boiler House in BDHP/ICB/18/03-1 Borovlyany Vill. with Installation of Domestic S&I 7.04 Revised ICB Post USD Changes in the Bidding Document are being prepared. Fuel Boilers� (re-bidding) Actual “Reconstruction of Boiler House in Tekser 2.2 Plan September 2018 November 2018 January 2019 December 2019 Housing Estate, Baranovichi Town with Revised Bidding process opening - 20.09.2018. Bid opening will BDHP/ICB/18/04 Capacity Increase and Installation of Boilers G ICB Post USD be on 15.11.2018 Firing Domestic Fuels (6 MW)� (equipment Actual 20.09.2018 15.11.2018 supply) “Reconstruction of the Boiler House of the City 3.33 Plan September 2018 November 2018 January 2019 December 2019 of Novogrudok (in Kotovskogo Str.) with the Bidding process opening - 27.09.2018. Bid opening will BDHP/ICB/18/05 Aim of Heat Supply Systems Optimization, S&I Revised ICB Post USD be on 22.11.2018. Introduction of Domestic Fuel Boilers and Actual 27.09.2018 22.11.2018 Innovation Technologies� “Construction of a Block-Modular Domestic Fuel 2.87 Plan September 2018 November 2018 January 2019 December 2019 Fired Boiler House on the Territory of Vorontsy The technical part of the Bidding Document is being BDHP/ICB/18/06 Vill. of Myadel District with Re-laying of S&I Revised ICB Post October 2018 USD prepared. Transmission Heating Networks on the PI- pipelines� Actual 3.99 Plan September 2018 November 2018 January 2019 December 2019 “Reconstruction of the Boiler House with The technical part of the Bidding Document is being BDHP/ICB/18/07 Installation of Domestic Fuel Boilers in S&I Revised ICB Post October 2018 USD prepared. Sovetskaya Str. in the city of Shchuchyn� Actual “Construction of a Combined Boiler House 2.61 Plan September 2018 November 2018 January 2019 December 2019 (primary fuel - wood fuel, back-up – natural gas) with Load Transfer from Outdated Boiler Houses Revised October 2018 The technical part of the Bidding Document is being BDHP/ICB/18/08 of Micro-District “Slominskoe Shosse�, Health S&I ICB Post USD prepared. Care Institution “City Polyclinic No. 2� and Страница 4 Pplan_PCRP_add_financ_2010 Boiler House in Kolkhoznaya Str. in the City of Actual Baranovichi� 1.475 S 1.00 Plan April 2014 May 2014 September 2014 December 2019 Consulting services for design and supervision 24.09.2014, The contract is under BDHP/QCBS/14/01 Actual QCBS Prior OJSC "Institute over energy efficiency measures 0.98 24.03.2014 7/8/2014 signed - December 2019 USD 984,129 implementation. Belgosproyekt" 03.10.2014 0.0166 Plan October 2014 November 2014 December 2014 June 2015 The contract is completed. In view of the remaining balance of 0,0154 mln USD under this AF_EEP_EEP_BDHP/ 28.01.2015, contract, we consider it to be Financial Audit 2014 LCS Post USD 1,200 KPMG (Belarus) LCS/14/01 0.0012 Actual 09.12.2014 08.01.2015 signed - 5/1/2015 reasonable to reallocate these 30.01.2015 funds for selection of consultants for the business plan development. The contract is completed. In view of the remaining balance of 0.0166 Plan October 2015 November 2015 December 2015 June 2016 0,0148 mln USD under this AF_EEP_EEP_BDHP/ contract, we consider it to be Financial Audit 2015 LCS Post USD 1,800 KPMG (Belarus) LCS/15/01 reasonable to reallocate these funds for selection of consultants 0.0018 Actual 17.11.2015 15.12.2015 19.01.2016 16.05.2016 for the business plan development. The contract is at the 0.0332 Plan October 2016 November 2016 December 2016 June 2017 implementation stage. In view of the remaining balance of 0,0265 AF_EEP_EEP_BDHP/ mln USD under this contract, we Financial Audit 2016-2017 LCS Post USD 6,720 KPMG (Belarus) LCS/16/01 08.12.2016, consider it to be reasonable to reallocate these funds for 0.0067 Actual 12.10.2016 11/9/2016 signed - 12/31/2017 selection of consultants for the 22.12.2016 business plan development. In view of the fact that the 0.0168 Plan October 2018 November 2018 December_2018 June 2019 planned Contract Amount is concluded as a result of the 0.0143 Revised planned disbursement amount per year, we consider it to be reasonable to reduce BDHP/LCS/18/01 Financial Audit 2018 LCS Post the Contract Amount and to allocate the remaining balance Actual for selection of consultants for the business plan development. 0.0168 Plan October 2019 November 2019 December_2019 June 2020 BDHP/LCS/19/01 Financial Audit 2019 LCS Post Actual Technical Assistance: 0.04 Plan February 2015 March 2015 April 2015 December 2016 Improvement of existing social accountability mechanisms includes: Review by an individual consultant (social development specialist) of project utilities' current practice and know-how in terms of customers relationship (availability of information, communication plans, content of websites, registering and reactivity to complaints). The contract is completed. In Definition of an action plan and terms of reference view of the remaining balance of for capacity strengthening activities. 0,001 mln USD under this Development and/or update of utilities' websites + 04.06.2015, contract, we consider it to be BDHP/CQS/15/01 CQS Post 30.06.2017/ USD 38,953.20 UE "CSBT SATIO" design and supply of communication material by a 0.039 Actual 09.03.2015 27.05.2015 signed - reasonable to reallocate these 29.09.2017 funds for selection of consultants consulting firm/consultant. 12.06.2015 Training by an individual consultant (utility for the business plan customer relationship specialist) of project utilities development. staff to (i) better communicate with Clients proactively (on daily business) and reactively (in case of complaints); (ii) strategize on communications plan and prioritization of complaints response; (iii) cooperate with consumers or with civil society to improve monitoring of the quality of services. BDHP/CQS/15/02 Support for a shift to energy-content-based 0.1 Plan April 2015 May 2015 June 2015 December 2016 biomass pricing includes: Perform the legal analysis of the current contract arrangements for biomass purchase. Assess best available contractual practices. Belarusian State CQS Post USD 100,000.00 The contract is completed Develop a draft package of legal documents for 23.10.2015- Technological University 0.1 Actual 03.04.2015 03.09.2015 15.10.2016 shift of energy content biomass pricing. signed Work with stakeholders comments and perform the package revision. Provide the final package to the EED and MHU. Страница 5 Pplan_PCRP_add_financ_2010 0.085 Plan IC May 2019 June 2019 July 2019 December 2019 Implementation support consultancy to support the PMU BDHP/IC/19/01 and the district heating utilities;training and capacity Implementation support consultancy to support the PMU BDHP/IC/19/01 and the district heating utilities;training and capacity building for the utilities 0.00 Actual We consider it to be reasonable 0.03 Plan IC May 2015 June 2015 July 2015 December 2016 to reallocate the amount of 0,03 mln USD for selection of Implementation support consultancy to support BDHP/IC/18/02 consultants for the business plan the PMU and the district heating utilities 0.00 Actual Deleted development. Post Training and capacity building for the utilities based on international best practices for energy efficiency improvements in district heating and proven wood 0.055 Plan May 2019 June 2019 July 2019 December 2019 BDHP/IC/19/02 biomass burning technologies Actual 0.05 Plan January 2019 February 2019 March 2019 November 2019 BDHP/CQS/19/01 Social Monitoring CQS Actual 0.04 Plan 2018 year International procuremeny BDHP/TR/1 PMU Training management 18 June 2018 - 0.023 Actual June 2018 29 June 2018 Turin (Italy) 0.025 Plan The Department for Energy Efficiency objected. It is 0.017 Revised December 2017 January 2018 January 2018 February 2018 reasonable Procurement of the office and computer BDHP/SH/18/01 SH Shopping Post to reallocate the amount of 0,025 equipment mln USD for selection of 0 Actual Deleted consultants for the business plan development. Consulting services for development of the 0, 075 Plan October 2018 October 2018 October 2018 December 2018 business plan for the Sustainable Energy Scale-up BDHP/CQS/18/01 S Revised CQS Post Project under component 1 “The Use of Renewable Wood Biomass for Heat Supply� Actual 08.10.2018 Consulting services for development of the 0, 075 Plan October 2018 October 2018 October 2018 December 2018 business plan for the Sustainable Energy Scale-up BDHP/CQS/18/02 S Revised CQS Post Project under component 2 "Thermal Retrofit of Multi-Apartment Buildings" Actual 08.10.2018 Front-end fee 0.225 Total Plan 90.000 Actual 64.2 Bank Prior Review Expenditure Category Contract Value Procurement Method Works, Turnkey, S&I of Equipment All contracts >=USD 10 >=5 000 000 ICB million per contract <5 000 000 NCB First contract <200 000 Shopping First contract Goods, IT and Non-Consultant Services All contracts >=2 million per >=1 000 000 ICB contract <1 000 000 NCB First contract <100 000 Shopping All contracts post review All DC contracts subject to NA DC justification and shall follow the same prior review threshold as per relevant category of procurement (works, S&I, goods etc.) Consultant Services >=300 000 QCBS, QBS,FBS,LCS QCBS, QBS,FBS,LCS и All contracts >= 1,000,000 for firms; <300 000 CQS all contracts >=300 000 for individuals. : SSS contracts subject NA SSS to justification and shall follow the same prior review threshold as per relevant prior review threshold for consultant services (firms) and individuals. Selection of Procurement Specialists and Legal NA IC Consultants (Firm or Individual) review. 6 shall be subject to priorСтраница Pplan_PCRP_add_financ_2010 Notes ICB -International Competitive Bidding; NCB- National Competitive Bidding; QCBS - Quality-and Cost Based Selection; QBS- Quality Based Selection; Fixed Budget Selection; LCS - Least-Cost Selection; CQS -Consultant's Qualification Selection; IC-Individual Consultants; DC-Direct Contract; SSS-Single (or Sole) Source Selection Страница 7 Pplan_PCRP_add_financ_2010