For te upe iodro Jnduary c 1, 201 t o ecbr3,21 INDEPENDENT AUDITORS' REPORT 3 List of abbreviations 6 Statement of funds received and uses of funds 7 Summary of funds received and uses of funds 8 Statement of expenditures 9 Notes to the project financial statements 10 Hl Ith Sector Reom - Improving Heath System Quaity and Efficincy Projct for the poriod from January 1, 2013 to Dece brho 31, 2018 MOORE STEPHENS MOORE STEPHENS KSC ASSURANCE 5RL175 Calea Floreasca, Floreasca Tower Building, 13th floor, District 1 Bucharest - Romania T +4 0374 490 074 F +4 0374 094 191 E info@moorestephens-ksc.ro www.moorestephens-ksc.ro INDEPENDENT AUDITORS' REPORT To the management of Ministry of Health - Project Management Unit of World Bank Report on the special-purpose Financial Statements Opinion We have audited the attached financial statements of the Health Sector Reform Project - Improving Health System Quality and Efficiency Project for the period from 1 January 2018 to 31 December 2018. The project is financed by the International Bank for Reconstruction and Development (IBRD) through loan 8362-RO signed on 17 June 2014. The audited financial statements for the period ended 31 December 2018 comprise the Statement of funds received and uses of funds, Summary of funds received and uses of funds, Statement of expenditures for the period from January 1, 2018 to December 31, 2018 and a summary of significant accounting policies and other explanatory notes. In our opinion, the accompanying project financial statements for the period from 1 January 2018 to 31 December 2018 are prepared, in all material respects, in accordance with the generally accepted accounting principles and practices and relevant World Bank guidelines. Basis for opinion We conducted our audit in accordance with International Standards on Auditing (ISAs) including ISA 800 "Special Considerations - Audits of Financial Statements Prepared in Accordance with Special Purpose Frameworks" and according to the corresponding requirements of the World Bank. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Project in accordance with the ethical requirements that are relevant to our audit of the financial statements in Romania, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Emphasis of matters As mentioned in Section 12 "Milestones to track project progress" to the financial statements, the project needs to meet certain milestones with specific deadlines. Although management is confident that the milestones will be met, there is the risk that not meeting these milestones as agreed will trigger significant restructuring of the initial plans including partial withdraw of initial financing allowed. Our opinion is not modified in this respect. MOORE STEPHENS Responsibilities of Management and Those Charged with Governance for the Financial Statements Management is responsible for the preparation of the financial statements in accordance with the the generally accepted accounting principles and practices and relevant World Bank guidelines, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is responsible for assessing the project's capacity to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the project or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the PMU's financial reporting process. Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: * Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. * Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the PMU's internal control. * Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. * Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the PMU's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. MOORE STEPHENS However, future events or conditions may cause the PMU to cease to continue as a going concern. * Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Basis of Accounting and Restriction on Distribution and Use Without modifying our opinion, we draw attention to Note 4 to the financial statements, which describes the basis of accounting. The financial statements are prepared to assist PMU to comply with the financial reporting provisions as per the World Bank guidelines. As a result, the financial statements may not be suitable for another purpose. Our report is intended solely for PMU and World Bank and should not be distributed to or used by parties other than PMU or World Bank. For MOORE STEPHENS KSC ASSURANCE S.R.L.: Registered on the Romanian Chamber of Financial Audito rs no. 1266/7.09.2015 STAN ANDREI MARIUS Registered on the Romanian Chamber of Bucharest 14 June 2019 Financial Auditors no. 5145/7.11.2016 Listof rei--ons MoH - Ministry of Health of Romania PMU - Project Management Unit, established within MoH for the Health Sector Reform Project IBRD - International Bank for Reconstruction and Development EIB - European Investment Bank Loan - the Loan Agreement (8362 - RO) for the Health Sector Reform Project MoPF - Ministry of Public Finance NBR - National Bank of Romania GoR - Government of Romania H-ath Sctor Reform - Iprovng Health Syem- Qulity and Efficieuy Projict for the period fror January 1. 2018 to Dceme-br 31, 201B Statement of funds received and Luses of funds In EUR Statement of the IBRD Loan Account of the Ministry of Health as at 31 December 2018 Loan amounts not disbursed December 31, 2018 December 31, 2017 Loan amount approved 250,000,000 250,000,000 Less: Total disbursements from loan (58,556,855) (10,640,058) Total 191,443,145 239,359,942 December 31, 2018 December 31, 2017 Opening balance of disbursed amounts 10,640,058 712,789 Disbursements during the reporting period 47,916,797 9,927,269 Closing balance of disbursed amounts 58,556,854 10,640,058 Amount approved 250,000,000 250,000,000 Not disbursed amounts 191,443,146 239,359,942 Statement of the IBRD Loan Account of the Ministry of Health as at 31 December 2018 - by components Sources - IBRD contribution Cumulated Sources Transferred Sources Cumulated per component Sources Until December 31, 2017 January 01, 2018 Until December 31,2018 December 31, 2018 Former Component A 8,449,655 - Former Component B 844 - - Component A 8,450,499 46,014,893 54,465.392 Component B, former Component C 934,550 1,439,520 2,374,070 Component C, former Component D 1,255,009 462,384 1,717.393 Total disbursed amounts 10,640,058 47,916,797 58,556,855 Component A and B were merged starting with 21 August 2017, and became Component A. There will be 3 components: Component A (A + former B), Component B (former C) and Component C (former D). During the year 2018 the withdrawal applications No.5, 6, 7 and 8 for the period 29.06.2017-01.11.2018 in total amount of EUR 47,916,797 were disbursed, the withdrawal application No.9 of EUR 4.570,810 has been disbursed from IBRD in 2019 for expenses related to period 02.11.2018-31.01.2019. Approved on 14th June 2019 by: Mr. Vieru Florin Razvan Mrs. Mihaela Cimpoeasu, Head of Ministry of Health, Romania - Financial Expert - Ministry of H alth, Romania - Project Management Unit Project Management Unit This statement is to be read in conjunc!ion with the nctes to and forming part of the project financial statements set out on pages 11 to 1a. 7 In EUR Description Cumulative at January 01, 2018 Cumulative December 31, - December 31, at December 2017 2018 31, 2018 Opening cash balance (letter of credit) - - - Add: cash receipts 17,297,228 45,269,730 62,566,958 State Treasury Designated Account - funds pre- financed by the MFP) 17,297,228 45,269,730 62,566,958 Less project expenditure related to: Hospital Network Rationalization - Component A (14,626,331) - - Ambulatory Care Strengthening - Component B* (4) Strengthening Health Service Delivery- Component A (former Component A si B) (14,627,175) (44,091,265) (58,718,440) Health Sector Governance and Stewardship Improvement - Component C (1,554,029) (891,428) (2,445,457) Project Management, Monitoring and Evaluation - Component D (1,109,443) (287,037) (1,396,480) Total project expenditures (17,290,647) (45,269,730) (62,560,377) Less: transfer to letters of credit - - . Less: cash transferred to State Treasury Designated Account (6,581) - (6,581) Closing cash and cash equivalents balance - - - Component A and B were merged starting with 21 August 2017, and became Component A. There are now 3 components: Component A (A + former B), Component B (former C) and Component C (former D). These amounts have been derived by applying the RON/EUR exchange rate as at the time of payment, for the internal payments using NBR exchange rate and for the external payments using auctions exchange rate given by the Bank (Raiffeisen Bank). As at 31 December 2016 the PMU has one opened letter of credit in amount of EUR 244,817 on behalf of Medtronic Consortium (Covidien AG & Covidien Sales LLC) for contract 4/Jun 27, 2016 related to acquisition of equipment. In 2017 this letter was closed, the amount of EUR 238,235 was paid to the supplier and the penalties incurred in amount of 6,581 euro were returned to the state budget. This statement is to be read in conjunction with the notes to and forming part of the project financial statements set out on pages 11 to 18. Heaith Sector Rcror - iproving Health Syto. Q fity and Eific-ency Projctd f o tho priod from Jn ry 1, 2018 to D cember 31, 2018 In EUR Uses of funds Cumulative at Cumulative at December 31, January 01, 2018 - December 31, 2017 December 31, 2018 2018 Budgetary pre-financing funds 17,297,228 45,269,730 62,566,958 Letters of credit - - . Penalties transferred to State Budget (6,581) - (6,581) Total 17,290,647 45,269,730 62,560,377 Uses of funds - by component Cumulative at Cumulative at December 31, January 01, 2018 - December 31, 2017 December 31, 2018 2018 Component A 14,627,175 44,091,265 58,718,440 Component B, former Component C 1,554,029 891,428 2,445,457 Component C, former Component D 1,109,443 287,037 1,396,480 Total 17,290,647 45,269,730 62,560,377 These amounts have been derived by applying the RON/EUR exchange rate as at the time of payment, for the internal payments using NBR exchange rate and for the external payments using auctions exchange rate given by the Bank (Raiffeisen Bank) This statement is to be read in conjunction with the notes to and forming part of the project financial statements set out on pages 11 to 18. Health Sector Reform - foproving Health System Quality Ind Efficiency Projoct for the period from January 1. 2013 to Decemb2r 31, 2013 1 General information Loan agreement Romania has received the loan no. 8362-RO in amount of 250 million Euros from the International Bank for Reconstruction and Development ("IBRD") to support the implementation of the Health Sector Reform - Improving Health System Quality and Efficiency Project. The Loan agreement no. 8362 RO between Romania and IBRD was signed at Bucharest on June 17, 2014 and ratified by law no. 179/December 16, 2014. The subsidiary agreement between Ministry of Public Finance ("MoPF") and Ministry of Health - Project Management Unit ("PMU") was signed on March 5, 2015. The Loan Agreement was subsequently modified through Amendments 1 and 2. The PMU implements the Preparation of the Health Sector Reform - Improving Health System Quality and Efficiency Project (the "Project'), which is financed under the Loan Agreement no. 8362 - RO signed between the International Bank for Reconstruction and Development (the "IBRD") and the Government of the Romania on June 17, 2014. The objective of the Project is to improve access to, and quality and efficiency of, public health services in Romania. Designation of borrowed funds The Project is part of the 2014-2020 National Health Strategy and currently consists of the following parts: Part A. Strengthening Health Service Delivery 1. Rationalization of the health care service delivery network by supporting the provision of goods, works, non-consulting services, consultants' services and training in selected regional emergency hospitals, county hospitals, and local hospitals through the following activities: (a) Improving selected medical services, including surgery rooms, intensive care units, burn units, radiotherapy units, emergency services (including emergency telemedicine systems) and diagnosis (medical imaging) services. (b) Redefining the hospital's role in the health care system, merge services and reduce the number of single specialty hospitals, and move from multi-building settings into single buildings with integrated diagnostic and interventional platforms. (c) Carrying out rehabilitation works within the existing medical facilities. (d) Upgrading and/or acquiring medical and other equipment for existing medical facilities. 2. Strengthening specialized secondary ambulatory care by supporting the provisions of goods, works, non-consulting services, consultants' services and training through the following activities: (a) Developing centers for ambulatory diagnostic and treatment services. (b) Transforming local hospitals into centers for ambulatory diagnostic and treatment. (c) Improving cancer screening networks by, among others, establishing additional cancer screening centers, creating three (3) mobile units for cancer screening and strengthening the technical capacity of regional pathology and cytology laboratories. 3. Enhancing primary health care services at the community level by supporting the provisions of goods, works, non-consulting services, consultants' services and training, by scaling up local multifunctional health centers, increasing the provision of differentiated types of long-term healthcare such as palliative care dedicated to vulnerable groups. Hcalth Sector Refori-Improvinig Halth Sysem Quality and Effiincy ProjLct for the period from Januiry 1, 2018 to December 31, 2018 Part B. Health Sector Governance and Stewardship Improvement Improving sector governance and stewardship of the MOH and other relevant governmental institutions to bridge the gap between policy and practice and to strengthen the capacity of improving the quality of medical care services through the provisions of goods, non-consulting services, consultants' services and training, through the following activities. (a) Updating clinical guidelines and implementing quality control mechanisms. (b) Strengthening and implementing health technology assessments (HTA) and developing evidence-based standards and protocols. (c) Standardizing cost accounting systems in a subset of selected hospitals to update the estimated costs of each case mix. (d) Strengthening the capacity of the health sector to conduct surveys and studies, develop and manage projects, and finance feasibility and pre-investment studies, including feasibility studies and technical designs for new medical facilities in the regional emergency hospitals of Cluj, lasi and Craiova. (e) Streamlining the national health programs to move the focus toward preventive care and promotion of population health services. (f) Strengthening the communications strategy of the MoH to inform the general public on reform programs and expected outcomes. Part C. Project Management, and Monitoring and Evaluation Supporting the Ministry of Health and the Project Management Unit ("PMU") in Project management and implementation, including fiduciary tasks, monitoring and evaluation and reporting through the provisions of goods, non-consulting services, consultants' services, training, auditing and incremental operating costs. The project has started on March 05, 2015 based on the Subsidiary agreement no 667158 from 05.03.2015 signed between MoPF and Ministry of Health. The table below sets forth the components of items to be financed out of the proceeds of the Loan, the allocation of the amounts of the Loan to each component and the percentage of expenditure for items so to be financed in each component. Loan allocation In compliance with the Loan Agreement concluded on June 17, 2014 and ratified by law no. 179/December 16, 2014, modified through amendments 1 and 2, the components of expenditures financed through IBRD loan proceeds comprise of the following: Cod Component Description Amount allocated Amount allocated e from the loan_USD from the loan_EUR A Strengthening Health Service Delivery 315,700,000 233,000,000 B Health Sector Governance and Stewardship 13,600,000 10,000,000 Improvement C Project Management, Monitoring and Evaluation 9,500,000 7,000,000 Total project financing 338,800,000 250,000,000 For the purposes of this Schedule: a) the term "foreign expenditures" means: expenditures in the currency of any country other than that of the Borrower for goods or services supplied from the territory of any country other than that of the Borrower; b) the term "local expenditures" means: expenditures in the currency of the Borrower or for goods or services supplied from the territory of the Borrower; Health Sector Reform l-umproving Health System Quality lad Efficiency Procct for the period from January 1. 2018 to Dco,ber 31, 2018 c) the term "Incremental Operating Costs" means: expenditures incurred by the PMU, on account of Project implementation, including: * salaries of the staff (other than civil servants) of the PMU; * office supplies and equipment (office rent, equipment and furniture; office rehabilitation; office consumables; office equipment); * fuel and vehicles; * communication expenditures and travel expenditures of the PMU staff (including mobile phones, telephone lines, fax, internet); * domestic and abroad travel expenditures including daily allowance and accommodation * office software; * advertising and translation services * bank charges * operating, maintenance and insurance costs for vehicles and office equipment d) the term "Statement of Expenditures" means: expense reports used by the Borrower to forward to the IBRD the application for reimbursement of payments already made. e) the term "State Treasury Account" means: a bank account opened at the State Treasury of Bucharest where PMU is receiving the requested money from the Ministry of Public Finances. The Ministry of Public Finance advances the required amounts for the implementation of the Project and withdraws amounts from the IBRD based on application for disbursement of payments already made. The legal address of the Ministry of Health, Romania - Project Management Unit ("PMU") is Cristian Popisteanu Ent. Sector 1, Bucharest, Romania, fiscal code 15852060. The average number of the PMU's staff in 2018 was 7 (2017: 13). 2 Significant accounting policies 2.1 Basis of preparation The project financial statements were prepared in accordance with the accrual basis of accounting as well as the World Bank guidelines and the relevant points of the Loan IBRD 8362 - RO. Significant accounting policies are disclosed below. 2.2 Functional and presentation currency The national currency of Romania is RON, which is also the functional currency of the Project since this currency best reflects the economic substance of the underlying events and transactions of the Project. These project financial statements are presented in EUR (presentation currency), as this is the currency of the Loan and the main beneficiary of this audit report is IBRD. In preparing the project financial statements, transactions in currencies other than EUR are recorded at the rates of exchange defined by the National Bank of Romania prevailing on the dates of the transactions. These amounts have been derived by applying the RON/EUR exchange rate as at the time of payment, for the internal payments using NBR exchange rate and for the external payments using auctions exchange rate given by the Raiffeisen Bank Romania ("the Bank"). Any exchange rate differences are recognized in the statement of the Project sources and uses of funds. 2.3 Project financing Project expenditures are pre-funded from the State Budget, and then the eligible expenses are reimbursed by IBRD through loan 8362-RO. Health Sector Reorm - Improing Helth Syste Quai-ty anid Efficiecy Project for the ptnod from Jaiuary 1, 2013 to DOcember 31, 2013 PMU would use pre-financing from State Budget funds and then the MoPF would get reimbursed from the loan using the reimbursement method for Project eligible payments. The Treasury makes the monthly budgetary openings as requested, and the Project would receive its allocations under title number 65 in the Treasury system. IBRD loan funds would reimburse the Project eligible expenses pre-financed from the State Budget funds. The Borrower would submit withdrawal applications for the eligible expenditures. The supporting documentation for disbursements would include summary sheets and statement of expenditures. No designated account would be used. 2.4 Project expenses The Project expenses are recognized on the accrual basis of accounting. The accumulated Project expenses are disclosed in the Statement of funds received and uses of funds and Summary of funds received and uses of funds by Project activities. 2.5 Non-current and other current assets Non-current assets are recognized at acquisition cost under equipment category or inventories. Following their accounting transfer to the beneficiaries on the basis of the unpaid transfer minute, they are recognized as costs (after all documents have been submitted by the vendor), and the Acceptance Certificate has been issued by the MoH, according to contract stipulations. 2.6 Liabilities i) Recording the loan The loan will be recorded as a use of funds as the withdrawals take place. The entire amount of the loan will not appear as a debt element in the accounting of the Project Management Units. ii) Acquisition of goods and services The acquisition of goods and services is recorded as assets and expenditures respectively at the time of the payment, and is allocated between the different sub-projects and activities to which they refer. The invoices for goods and services not paid at the time of the financial reporting are shown as liability items and are reported as uses of funds at the date of payment. 2.7 Funding PMU does not record the loan amounts received from the IBRD, this being done at MoPF level. Please see 2.3 "Project financing". 2.8 Use of funds Using of funds represents the amounts paid for the purpose of the Project by the PMU, funds pre-financed by the Ministry of Public Finances. 3. Closing date of the Project The closing date of the Project was defined as 15 December 2020. 4. Non-current assets and other current assets As at December 31, 2018, PMU has not transferred the medical equipment in inventories to beneficiaries. Out of the total assets of EUR 18,541,234, the amount of EUR 16,165,715 relates to equipment and EUR 2,229,907 are advances for non-current assets. The transfers were not performed because the equipments were not fully paid being in process of installation. 13 Il Ith Sector Reform-Iiproving Hcalth Systern Quality and Efficiency Project for the period frorn January 1. 2018 to Decorrmber 31, 2018 5. Accounts payable In EUR December 31, 2018 ELEKTA LIMITED 735,920 TBS GROUP S.P.A. 1,433,770 GENERAL ELECTRIC MEDICAL SYSTEMS 394,860 Others 3,496 2,568,046 The exchange rate used for translating the closing balance is the one published by the National Bank of Romania. On 31 December 2018, 1 EUR = 4.6639 RON 6. Advances for non-current assets In EUR December 31, 2018 ELEKTA LIMITED 1,651,512 TRACTEBEL ENGINEERING S.A. 127,069 POLITECNICA INGEGNERIA ED ARCHITETTURA SOC. COOP. MODENA SUCURSALA BUCURESTI 177,646 3TI PROGETTI ITALIA INGEGNERIA INTEGRATA S.P.A. SUCURSALA 77,695 BUCURESTI GENERAL ELECTRIC MEDICAL SYSTEMS ROMANIA SRL 195,985 2,229,907 7. Other cLIrrent liabilities Other current liabilities include social charges of EUR relating to employees salary payments, VAT and other taxes. 8. Bank accoInts Used within the project, statement of designed account All the funds are received through the State Treasury Account. The internal payments are done through this account and for the external payments the funds are transferred to the bank account from Raiffeisen Bank. Based on the Order of the Public Finance Ministry no 2004/2013, starting with January 1, 2014 the Project Management Unit represents a unit within the Ministry of Health in relation to the Treasury account and will only use the following treasury account for the reimbursable funds: Account No. RO 08 TREZ 23A6 6010 0650 10OX Depository Bank State Treasury Branch Treasury Activity and Public Accounting of the Bucharest Municipality Address No. 6-8, Splaiul Unirii, 4th District, 040032 Related loan/credit Loan no. 8362- RO, Loan 22943-RO Account Currency RON HltI, Sctor Reform, - Imprgoin Health Syst-m Qualty and EfficIency Pr,oct for th, poriod fromo Janry 1, 2018 to December 31. 2013 State treasury account as at 31 December 2018 IBRD EiBTotal unaudited Opening balance January 1, 2017 244,817 - 244,817 Cash receipts from MoPF for funds approved by - 575,851 575,851 funds providers Cash receipts from MoPF as GOR contribution - 3,301,584 3,301,584 Other funds received from MoFP: - pre-financing for costs to be supported from IBRD 12,606,732 - 12,606,732 funds 2018 - other . Total cash receipts 2017 12,606,732 3,877,435 16,484,167 Total payments from the State Treasury Account (12,844,968) (3,877,435) (16,722,403) Closing balance December 31, 2017 - Opening balance January 1, 2018 - Cash receipts from MoPF for funds approved by - - - funds providers Cash receipts from MoPF as GOR contribution - 950,574 950,574 Other funds received from MoFP: - pre-financing for costs to be supported from IBRD 45,269,730 - 45,269,730 funds 2017 - other . Total cash receipts 2018 45,269,730 950,574 46,220,304 Total payments from the State Treasury Account (45,269,730) (950,574) (46,220,304) Closing balance December 31, 2018 The difference between letters of credit as at 31 December 2016 to 31 December 2017 is due to penalties of EUR 6,581 invoiced by the Ministry of Health and transferred to the account of the Ministry of Finance. Penalties are related to the delays due to the supplier and have been deducted from the due amount of the letter of credit. 9. Legislation and fiscal environment in Romania The legislation and fiscal environment in Romania and their implementation into practice change frequently and are subject to different interpretations by various Ministries of the Government. Over recent years, Romania has undergone substantial legal and economic changes. Therefore it is not possible to estimate what changes may occur or the resulting effect of any such changes on the Project development or future results of its development. 10. Subsequent events In 2019, the World Bank representatives have performed a visit related to project. The report with results is not yet final at these financial statements date, but according to the draft, the Mission has concluded that there has been progress since the last visit in November 2018. By the end of May 2019, contracts with a total value of EUR 96,8 million have been awarded, accounting for 38,7% of the total project fund. The withdrawal applications No.9 and 10 in total amount of EUR 12.660.665,19 have been requested to be disbursed by IBRD in 2019 for expenses related to period from November 2, 2018 to April 30, 2019. 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