“Public Finance Management Modernization Project II” Grant No. TF0A1735, Grant No. D055-TJ, Credit No. 5631-TJ The project financial statements for the year ended December 31, 2019 and independent auditors’ report “PUBLIC FINANCE MANAGEMENT MODERNIZATION PROJECT II” GRANT NO. TF0A1735, GRANT NO. D055-TJ, CREDIT NO. 5631-TJ TABLE OF CONTENTS Page STATEMENT OF MANAGEMENT’S RESPONSIBILITIES FOR THE PREPARATION AND APPROVAL OF THE PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2019 2 INDEPENDENT AUDITORS’ REPORT 3-4 THE PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2019: Summary of funds received and expenditures paid 5 Summary of expenditures paid by project components 6 Notes to the project financial statements 7-15 "PUBLlc F|NANGE MANAGEMENT MoDERNlzATloN PRoJEсT Il" GRANT No. тFOА1735, GRANT No. D055_TJ, cREDlT No.5631_TJ STATEMENT оF MANAGEMENT,S RESPoNSlBlLlTlES FоR тнЕ PREPARAT|oN AND APPROVAL ОF ТНЕ PROJECT FINANCIAL STATEMENTS FОR ТНЕ YEAR ENDED DECEMBER 31, 2019 The following statement, which should Ье rеаd in conjunction with the independent auditors' responsibilities is made with а view to distinguish the respective responsibilities of management and those of the independent auditors iп rеlаtiоп to the project financial statements of the Pюject "Public Fiпапсе Management Modernization Project ll", Grапt No. ТFOАl735, Grапt No. D055-TJ, Credit No. 5631-TJ (the "Project"). Management is responsible fоr the рrераrаtiоп of the рюjесt financial statements that рrеsепt fаirlу, iп all material respects, the summary of funds received and expenditures paid and the sчmmаry of expenditures paid Ьу project components for the уеаr ended DесеmЬеr 3,t, 2019 in ассоrdапсе with lпtеrпаtiопаl Public Sесtоr Accounting Standard "Financial Rерогtiпg Uпdеr the Cash Basis of Accounting" (the "lPSAS") issued Ьу the lпtеrпаtiопаl Public Accounting Standards Board of the lпtеrпаtiопаl Fеdеrаtiоп of Accountants and the World Bank's Fiпапсiаl Management Sесtоr Board's "Guidelines: Аппчаl Fiпапсiаl Rероrtiпg and Auditing fоr World Вапk Fiпапсеd Activities" (the "WB Guidelines"), ln рrераriпg the project financial statements, management is responsible fоr: . selecting suitable accounting policies and аррlуiпg them consistently; о making judgments and estimates that аге rеаsопаьlе and ргudепt; . stating whether lpsAs and wB Guidelines have Ьееп followed, subject to апу material dераrturеs disclosed and explained in the project financial statements; апd . рrераriпg the ргоjесt financial statements оп а going сопсеrп basis, unless it is iпаррrорriаtе to рrеsчmе . that the Project will Ье implemented iп accordance with the established реriоd. ManaEement is also responsible fоr: . designing, imp|ementing and maintaining effective and sound system of iпtеrпа| сопtrоl and fог rечеаliпg risks in system of iпtеrпаl сопtrоl; о maintaining рrореr accounting rесоrds that disclose, with rеаsопаь|е ассчrасу at апу time, the financial position of the Project, and which епаЬlе them to епsчrе that the project financial statements of the Рrоjесt comply with lPSAS and WB Guidelines; . compliance with laws and regulations of the Republic of Tajikistan, accounting system of the project and the requirements of the Wогld Вапk; о taking such steps as аrе reasonably available to them to safeguard the assets of the project; and . detecting and preventing fraud and other irregularities. The pýect financial statements fоr the уеаг ended DесеmЬеr 31, 2019 wеrе approved and authorized fоr issue оп August 14,2020 Ьу the management of the Pюject. Оп behalf of the Management Jonmamaozooa М. Jonmamadzoda ]ш. Executive Director of public Fiпапсе Мапаgеmепt Modernization Project !l August 14,2020 August 14,2020 Dushanbe, the Republic of Tajikistan Dushanbe, the Republic of Tajikistan "PUBLlc FINANGE MANAGEMENT MoDERNIzATloN PRoJECT ll" GRANT No. тFOАl735, GRANT No. D055-TJ, CREDIT No.5631_TJ SUIIЛMARY OF FUNDS RECEIVED AND EXPEND|TURES PAID FoR тнЕ YEAR ENDED DECEMBER 31,2019 (iп US dollarc) Notes Fог the уеаr Fоr the уеаr cumulative ended ended December 31, December 31, 2019 2018 Opening Ьаlапсе 1,198,147 1,498,674 Funds received Grant No. ТFOА1735 5 9,463 1 ,1 1 1 5 ,009,51 3,929,51 4 Grant No. D055-TJ 5 706,il5 640,317 2,974,391 Total funds received ,t,826,008 1,649,832 6,903,905 other iпсоmе 122 122 Total rесеiрБ 1,826,008 1,650,954 6,905,027 Project ехрепsеs Goods, поп-сопsчltiпg services, consultants' services and Тrаiпiпg чпdеr Раrt 1.1 (а), (Ь), (с), ,1,204,395 (d); 1.2 (а), (Ь); 1.3; 3.1; 3.2;4.1; а.3 (с), (d) 1,119,772 3,602,800 Goods, non-consulting services, consultants' services, Training and lncremental Ореrаtiпg Costsforthefollowing Partsof the Project: 1.1 (е), ,t"t45,495 1.2 (с), (d),2,4.2,4.3 (а), (b);anO S 747,086 2,543,349 ,l,951,48,1 Total project ехрепsеs 2,265,2в7 6,146,149 Fоrеigп ехсhапgе gain Closing balance 758,897 1,198,147 758,897 On behalf of the Management: Jonmamadzoda М. ii'зi$*ýffilýffi li"зi'Жi,{.#/".Ж\i* Executive Director of public Мапаgеmепt Modernization 5lffiБ,ffi;J"ment Gопзч ltant August 14,2020 August 14,2020 Dushanbe, the Republic of Tajikistan Dushanbe, the Republic of Tajikistan The notes оп pages 7-15 fоrm ап integral раrt of the project financial Statements. The independent auditors' rероrt is оп pages 3-4. 5 "PUBLlc FINANGE MANAGEMENT MoDERNIzATloN PRoJECT ll" GRANT No. тFOА1735, GRANT No. D055-TJ, cREDlT No.5631_TJ SUMMARY ОF EXPENDITURES PAID BY PROJECT COMPONENTS FoR тнЕ YEAR ENDED DEGEMBER 31,20,t9 (lл US dollars) Fоr the уеаr Fоr the уеаr cumulative ended ended December 31, DесеmЬеr 31 , 2019 2018 Part 1. Public fiпапсе management modernization 885,427 592,569 2,756,773 Рагt 2. lmproving pub|ic рrосчrеmепt 318,694 229,908 591,329 Раrt 3. Strengthening external audit з47,052 391,,154 751,17в Раrt 4. Managing public administration rеfоrms 418,397 475,439 1,113,505 Рагt 5. Project management 295,697 262,411 933,366 _2,265,267_ __1,95tд]_ _q,146,щ9_ ЧУМ-r,... Оп behalf of the Management: ь*ý .lorrmamaazodЁ м. R. Executive Director of Рчьliс Fiпапсе Мапаgеmепt Consultant Management Modernization Project ll August 14,2020 August 14,2020 Dushanbe, the Republic of Tajikistan Dushanbe, the Republic of Tajikistan The notes оп pages 7-15 form ап integral part of the project financial Statements. The independent auditob' rероrt iS on pages 3,4 6 “PUBLIC FINANCE MANAGEMENT MODERNIZATION PROJECT II” GRANT NO. TF0A1735, GRANT NO. D055-TJ, CREDIT NO. 5631-TJ NOTES TO THE PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2019 (in US dollars) 1. GENERAL INFORMATION According to the Grant Agreement between the Republic of Tajikistan and International Development Association (the “IDA”, “World Bank”) dated February 17, 2016, the World Bank provided a Grant No. TF0A1735 in the amount of 9,770,000 US dollars. According to the Financing Agreement between the Republic of Tajikistan and International Development Association (the “IDA”, “World Bank”) dated February 17, 2016, the World Bank provided a Grant No. D055-TJ in the amount of 3,200,000 Special Drawing Rights (the “SDR”) and Credit No. 5631- TJ in the amount of 4,000,000 SDR. The Financing was provided for the Project “Public Finance Management Modernization Project II” (the “Project”). Project purpose The objective of the Project is to improve the effectiveness, control and accountability of the Republic of Tajikistan (the “Recipient”) public expenditure. The Project comprises the following parts: Part 1. Public finance management modernization; Part 2. Improving public procurement; Part 3. Strengthening external audit; Part 4. Managing public administration reforms; Part 5. Project management. Part 1. Public finance management modernization 1. Design and implementation of the Public Financial Management (the “PFM”) reforms through, inter alia: (a) the provision of technical assistance to the Ministry of Finance (the “MOF) and other relevant Recipient’s entities responsible for budget; (b) the carrying out of activities supporting the Recipient’s change management process to implement PFM reforms, including the carrying out of a consultation process within the Recipient’s public sector to access the status of implementation of said reforms; (c) the design and implementation of Training courses and workshops on, inter alia, expenditure planning, budgeting, treasury, accounting and financial reporting. (d) the carrying out of a feasibility study on the introduction of a certification for PFM specialists, and (e) the provision and installation of Training and video-conferencing equipment, respectively. 2. Strengthening and implementation of the of the Recipient’s Public Financial Management Information System (the “TFMIS”) through, inter alia: (a) the design of modules to support the implementation of commitment controls, cash management, purchase order processing and payroll management; (b) the integration of the TFMIS with order e-government system of the Recipient, including human resources management and procurement system; (c) the provision and installation of equipment (including software) for data recovery, document digitization, system security, expansion of network connectivity and storage in the Information Technology (the “IT”) Center and regional offices, as necessary, including the provision of Training on the use of said equipment; and (d) the design and implementation of a strategy on developing more sophisticated and integrated financial management information system. 3. Strengthening the Recipient and its state-owned enterprises’ accounting and financial reporting practices through, inter alia: (a) the development of: (i) accounting policies; (ii) a model chart of accounts; and (iii) accounting manuals; all for state-owned enterprises; (b) the revision of financial reporting templates; (с) the carrying out of an assessment of the software requirements for processing and analyzing state-owned enterprises’ financial statements; (d) the provision of Training to key accounting and financial reporting personnel of state -owned enterprises and relevant Recipient’s officials on the preparation of interim financial reports and proposed accounting policies developed under Part 1.3 (a) (i) above; (e) the provision of support to selected state-owned enterprises for transitioning to interim financial reports; and (f) the incorporation of IFAC/IASSB’s International Standards of Auditing (the “ISA”) into the Recipient’s regulatory framework, followed by the provision of related Training. 7 Part 2. Improving public procurement 1. Improving the legal and regulatory framework of the Recipient’s public procurement through, inter alia: (a) (i) carrying out of a review of the Public Procurement Law (the “PPL”); and (ii) if a new legal procurement framework is enacted, preparation of regulations; and (b) (i) development of manuals, guidance notes for procurement procedures and contract management; and (ii) the update of Recipient’s standard bidding documents based on the new legislation mentioned in (ii) herein. 2. Strengthening of the institutional capacity of the State Agency for Public Procurement through the provision of support for, inter alia: (a) carrying out a change management process to implement the procurement reforms mentioned in Part 2.1 of the Project, including carrying out of a consultation process with relevant stakeholders to assess the status of implementation of said reforms; (b) developing the State Agency for Public Procurements regulatory function, including developing a public procurement management system and a performance management framework for the Recipient’s public procurement system; (c) improving access to procurement data, including through the publication and dissemination of annual public procurement performance report; and (d) establishing an independent complaints handling mechanism. 3. (a) Development of an e-procurement system through the design and implementation of modules for e- tendering, including framework agreement, contract management, procurement planning, on-line complaint handling mechanism; (b) the development of interfaces between the e-procurement system and the TFMIS budget and treasury modules; and (c) the design and implementation of a communication strategy to raise awareness of said e-procurement system among users in both public and private sectors, including through the provision of technical assistance and Training. Part 3. Strengthening external audit 1. Strengthening the governance and management framework through, inter alia: (a) the review of the existing organization structure, (b) the design and implementation of an audit coverage expansion plan; (c) the provision of Training; (d) the participation in INTOSAI and other international and regional auditing events; and (e) the design and implementation of a communication of a communication strategy. 2. (a) The design and implementation of an audit methodology for compliance and performance of audits (including public procurement audits); (b) the development of enabling tools for audit work planning and management and database; (c) the provision of IT equipment for connectivity, communication, server and backup solutions; and (d) the design and implementation of an audit curriculum which includes technical and soft skills training. Part 4. Managing public administration reforms 1. Strengthening the institutional capacity of the Strategic Planning Unit through, inter alia: (a) the review and formal adoption of its organizational structure, functions, roles and responsibilities; (b) the development of a national strategic planning methodology and other related methodologies and sectorial strategies; (c) the development of strategic plans in key areas of public administration; (d) the carrying out of capacity building activities, including Training; and (e) the design and implementation of a communications strategy. 2. Design and implementation of the e-government roadmap through, inter alia: (a) the strengthening of the regulatory framework for e-government services and methodologies for the selection and prioritization of e-government services; (b) the design and implementation of a communication strategy; and (c) the carrying out of a pilot of selected e-government services (including business process reengineering and software development). 3. Strengthening of the Recipient’s human resource management system thro ugh, inter alia: (a) the development and operationalization of the civil service registry system; (b) the development of an automated and integrated performance appraisal system; (c) the development and implementation of a training program on human resources business process and IT system management; and (d) the development of preliminary business process for a recruitment and selection module. 8 Part 5. Project management Strengthening the Recipient’s capacity through the provision of support for the implementation, monitoring and evaluation of the Project, including: (i) the carrying out of the Project audits; (ii) the carrying out of periodic user surveys (including dissemination of the results) to assess the impact of the reforms supported by the Project; and (iii) the carrying out of a communication campaign on the Project activities. Project management The Project is implemented by Administrative Procurement Support Team (the “APST”) under the Ministry of Finance of the Republic of Tajikistan. Grant and Financing Agreements were signed on February 17, 2016 and became effective on May 10, 2016. The closing date of the Project is June 30, 2021. 2. PRESENTATION OF THE PROJECT FINANCIAL STATEMENTS Basis of preparation These project financial statements have been prepared in accordance with the International Public Sector Accounting Standard (the “IPSAS”) “Financial Reporting under the Cash Basis of Accounting” issued by the Public Sector Committee of the International Federation of Accountants, and incorporate the following principal accounting policies, which have been consistently followed in all material respects and comply with the World Bank’s Financial Management Sector Board’s “Guidelines: Annual Financial Reporting and Auditing for World Bank Financed Activities” (the “WB Guidelines”). Under the cash basis system income (or expenditure) is recognized when cash is received (or paid) irrespective of when goods or services are received or provided. The Project’s approved budget disclosed by categories of expenses is not publicly available and as such comparison of budget and actual amounts is not presented. These project financial statements consist of:  Summary of funds received and expenditures paid;  Summary of expenditures paid by project components;  Notes to the project financial statements, including short description of main statements of accounting policy and other descriptive notes. The reporting currency of these project financial statements is US dollars (the “USD”). 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Cash basis of accounting The project financial statements are prepared on a cash basis of accounting. The cash basis of accounting recognizes transactions and events only when cash (including cash equivalents) is received or paid by the Project. The project financial statements prepared under the cash basis provide information on the sources of funds, the purpose of uses of funds, and cash balances at the reporting date. The measurement focus in the project financial statements is balances of cash and changes therein. Foreign currency Operations in foreign currency initially are counted in functional currency by the official currency exchange rate settled by the National Bank of Tajikistan (the “NBT”) on a date of operation. Funds received are translated into US dollars at official exchange rate of Special Drawing Rights (the “SDR”) at the date of funds receipt. All payments made in local currency are translated into US dollars at the official exchange rate defined by the NBT, at the date of transaction. 9 Monetary assets and liabilities expressed in foreign currency are converted to functional currency at official exchange rate on a date settled by the NBT. All foreign exchange differences resulted from maturity or recounting are included in the summary of funds received and expenditures paid. Non-monetary items are valued according to their historic cost in foreign currency, which are recalculated on rates of the initial operation date. Cash and cash equivalents Cash and cash equivalents include cash on hand and due from banks, which can be converted to the corresponding amount of cash in the short term. Balances of advances paid to employees at the end of the period are also part of closing cash position. Taxes Calculation and payment of personal income tax and social security contributions from income of local staff and consultants is made in accordance with the requirements and rates of the Tax Code of the Republic of Tajikistan and relevant legislation of the Republic of Tajikistan. Project expenses The expenses are recorded in the period when they were actually paid. Sources of funds The funds were provided by the World Bank to the Project by advance, direct payments and reimbursement. 10 4. CASH AND CASH EQUIVALENTS Cash and cash equivalents as at December 31, 2019 and 2018 comprise: Source of financing Currency December 31, December 31, 2019 2018 Designated account Grant No. D055-TJ USD 413,467 852,416 Designated account Grant No. TF0A1735 USD 345,430 345,731 758,897 1,198,147 5. FUNDS RECEIVED The funds received are presented by the following financing methods and sources of financing: For the year For the year Cumulative ended ended December 31, December 31, 2019 2018 Grant No. TF0A1735 Reimbursement 534,554 559,456 2,244,546 Direct payment 584,909 450,059 1,034,968 Advances - - 650,000 1,119,463 1,009,515 3,929,514 For the year For the year Cumulative ended ended December 31, December 31, 2019 2018 Grant No. D055-TJ Reimbursement 706,545 640,317 1,974,391 Advances - - 1,000,000 706,545 640,317 2,974,391 1,826,008 1,649,832 6,903,905 6. PROJECT EXPENSES The Project expenses on major categories are presented in the summary of funds received and expenditures paid. The Project expenses by components are presented in the summary of expenditures paid by project components. Breakdown of the Project expenses by nature and by sources of financing is presented as follows: Goods, non-consulting services, consultants’ services and training under Part 1.1 (a), (b), (c), and (d); 1.2 (a) and (b); 1.3; 3.1; 3.2; 4.1; 4.3 (c) and (d) Grant No. TF A01735 For the year For the year Cumulative ended ended December 31, December 31, 2019 2018 Consultants’ services 741,077 778,330 1,813,908 Payroll and related taxes 274,045 238,250 822,927 Goods 72,098 133,877 771,621 Training 28,425 8,172 83,273 Business trips 2,930 33,999 77,603 11 Grant No. TF A01735 For the year For the year Cumulative ended ended December 31, December 31, 2019 2018 Bank charges 1,197 8,176 17,618 Non-consulting services - - 3,212 Advertising - 1,687 3,028 Translation services - - 1,407 Web-site design - - 873 Other - 1,904 7,330 1,119,772 1,204,395 3,602,800 Goods, non-consulting services, consultants’ services, training and incremental operating costs for the following Parts of the Project: 1.1 (e), 1.2 (с) and (d), 2, 4.2, 4.3 (a) and (b), and 5 Grant No. D055-TJ For the year For the year Cumulative ended ended December 31, December 31, 2019 2018 Consultants' services 413,066 301,191 935,305 Goods 332,251 257,455 845,883 Payroll and related taxes 144,332 170,957 413,970 Web-site design 96,248 - 96,248 Translation services 71,186 1,904 73,090 Business trips 53,641 3,651 103,799 Printing services 18,592 - 18,592 Communication 10,532 - 10,532 Advertising 1,536 - 1,536 Bank charges 1,493 2,944 5,229 Training - 5,623 33,183 Other 2,618 3,361 5,982 1,145,495 747,086 2,543,349 7. FINANCIAL POSITION Financial position as at December 31, 2019 and 2018 comprises: December 31, December 31, 2019 2018 ASSETS AND EXPENDITURES Cash and cash equivalents 758,897 1,198,147 Cumulative project expenses 6,146,149 3,880,882 TOTAL ASSETS AND EXPENDITURES 6,905,046 5,079,029 FINANCING Funds received 6,903,905 5,077,897 Foreign exchange gain 19 10 Other income 1,122 1,122 TOTAL FINANCING 6,905,046 5,079,029 12 8. WITHDRAWAL APPLICATIONS Withdrawal applications for the period from for the year ended December 31, 2019 comprise: Sources of Application Value Date Direct Goods, non- Total financing Payments consulting services, consultants’ services, training and incremental operating costs Grant No.TF0A1735 12 January 28, 2019 - 314,420 314,420 13 May 31, 2019 86,286 - 86,286 14 July 9, 2019 - 220,134 220,134 15 July 29, 2019 73,903 - 73,903 16 September 11, 2019 252,148 - 252,148 17 September 26, 2019 86,286 - 86,286 18 September 27, 2019 86,286 - 86,286 584,909 534,554 1,119,463 Grant No. D055-TJ 6 April 18, 2019 - 462,099 462,099 7 June 17, 2019 - 244,446 244,446 - 706,545 706,545 584,909 1,241,099 1,826,008 9. STATEMENT OF DESIGNATED ACCOUNT Statement of designated account for the year ended December 31, 2019 comprise: Source of financing Grant No. TF A01735 Grant No. D055-TJ Bank National Bank of Republic of National Bank of Republic of Tajikistan Tajikistan Currency US dollars US dollars Bank account 22696840800098 22696840500097 Bank’s location 107A Rudaki ave., Dushanbe, 107A Rudaki ave., Dushanbe, the Republic of Tajikistan the Republic of Tajikistan Total Balance as at January 1, 2019 345,731 852,416 1,198,147 Replenishment of account 534,554 706,545 1,241,099 Total funds received to the designated account 534,554 706,545 1,241,099 Transfers between accounts 521,508 887,119 1,408,627 Expenses paid 13,347 258,375 271,722 Balance as at December 31, 2019 345,430 413,467 758,897 13 10. UNDRAWN FUNDS As at December 31, 2019 undrawn funds are presented as follows: Grant Grant No. TF0A1735 No. D055-TJ in USD in SDR Approved financing amount 9,770,000 3,200,000 Disbursed from the period from June 8, 2012 to December 31, 2019 3,929,514 2,603,408 Undrawn financing amount 5,840,486 596,592 Financing received as at December 31, 2018 2,810,051 1,623,675 Disbursed in 2019 1,119,463 979,733 Financing received as at December 31, 2019 3,929,514 2,603,408 11. COMMITMENTS In the normal course of activities, the Project concludes agreements with suppliers of goods and services in accordance with the established budget and procurement plan. Contract value of obligations valid as at December 31, 2019 was as follows: Counterparty Contract No. Contract value Paid up to Remaining December 31, amount to be 2019 paid CIPFA PFMMPII/QCBS-2/2015 1,015,124 609,075 406,049 FINA, LLC FMMPII/QCBS-1/2017 873,964 436,982 436,982 PMCG, LLC PFMMPII/QCBS-3/2015 579,633 376,761 202,872 Softline IT,LLC PFMMPII/ICB-4/2015 Lot 1 427,725 39,241 388,484 SOFTENGI UKRAINE, LLC PFMMPII/SIIS-1/2018 427,553 37,179 390,374 Softline IT,LLC PFMMPII/ICB-4/2015 Lote 2 404,830 36,471 368,359 Somon Varorud, LLC PFMMPII/NCB-6/2017 275,652 192,808 82,844 12. LEGAL CASES There were no any legal cases related to the Project. 13. EVENTS AFTER THE REPORTING DATE During 2020 until the date of issue of these project financial statements the World Bank provided financing to the Project as follows: Financing method Application Value date Grant Grant No. TF0A1735 No. D055-TJ Reimbursement 19 January 23, 2020 314,528 - Direct payment 20 March 24, 2020 77,657 - Direct payment 21 June 3, 2020 134,079 - Direct payment 23 July 17, 2020 252,430 - 14 Financing method Application Value date Grant Grant No. TF0A1735 No. D055-TJ Direct payment 24 July 17, 2020 206,140 - Reimbursement 22 July 20, 2020 538,696 - Reimbursement 8 February 4, 2020 - 609,020 Direct payment 9 June 3, 2020 - 38,362 1,523,530 647,382 Pandemic COVID-19. In early 2020, an outbreak of COVID-19 has been found in a number of countries. April 29, 2020 In Tajikistan, the first cases of infection with the coronavirus COVID-19 were officially confirmed. The Project is implemented by the Ministry of Finance of the Republic of Tajikistan. All employees responsible for Project implementation had been working in accordance with their normal working schedule. Thus, pandemic COVID-19 had no negative impact on meeting Project deadlines and its implementation in general. While exact effect of the COVID-19 is unknown, it is clear that it poses substantial risks. The Project assesses the situation and undertakes mitigating steps to reduce the impact that may be caused by the adverse market situation. As at the date of issue of the project financial statements no other significant events or transactions occurred, except for the events or transactions described above. 15