“Second Public Employment for Sustainable Agriculture and Water Resources Management Project” Grant No. H823-TJ, Grant No. TF 013997, Grant No. D081-TJ, Credit No. 5697-TJ The project financial statements for the year ended December 31, 2019, for the period from January 1, 2020 to February 29, 2020 and for the grace period from March 1, 2020 to June 30, 2020 and independent auditors’ report “SECOND PUBLIC EMPLOYMENT FOR SUSTAINABLE AGRICULTURE AND WATER RESOURCES MANAGEMENT PROJECT” GRANT NO. H823-TJ, GRANT NO. TF 013997, GRANT NO. D081-TJ, CREDIT NO. 5697-TJ TABLE OF CONTENTS Page STATEMENT OF MANAGEMENT’S RESPONSIBILITIES FOR THE PREPARATION AND APPROVAL OF THE PROJECT FINANCIAL STATEMENTS 2 INDEPENDENT AUDITORS’ REPORT 3-4 THE PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2019, FOR THE PERIOD FROM JANUARY 1, 2020 TO FEBRUARY 29, 2020 AND FOR THE GRACE PERIOD FROM MARCH 1, 2020 TO JUNE 30, 2020: Summary of funds received and expenditures paid 5 Summary of expenditures paid by project components 6 Notes to the project financial statements 7-17 "SECOND PUBL|C EMPLOYMENT FOR SUSTAINABLE AGRICULTURE AND WATER RESOURCES MANAGEMENT PROJECT" GRANT No. H823-TJ, GRANT No. тF 013997, GRANT No. D081_TJ, cREDlT No.5697-TJ STATEMENT ОF MANAGEMENT,S RESPONS|BIL|TIES FOR ТНЕ PREPARATION AND APPROVAL ОF ТНЕ PROJECT FINANCIAL STATEMENTS 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 ачditогs in rеlаtiоп to the project financial statements of the Project "Second Public Employment fоr Sustainable Agriculture and Wаtег Rеsоurсеs Management Project", Grant No. H823-TJ, Grапt No. ТF 013997, Grant No. D081-TJ, Credit No. 5697-TJ (thе "Ргоjесt"). Management is responsible fоr the рrераrаtiоп of the project financial statements that ргеsепt fairly, iп all material rеsресts, the summary of funds received and expenditures paid and the summary of expenditures paid Ьу рrоjесt components of the Project fоr the уеаr ended DесеmЬеr 31 , 2019, fоr the period fгоm January 1,2020 to FеЬrчаry 29, 2020 and fоr the gгасе реriоd from March 1,2020 to June 30, 2020 iп accordance with lnternational Public Sector Accounting Standard "Financial Rероrtiпg Under the Cash Basis of Accounting" (the "lPSAS") issued Ьу the lпtеrпаtiопаl Public Accounting Standards Воаrd of the lпtегпаtiопаl Fеdеrаtiоп of Accountants and the Wогld Bank's Financial Management Sесtоr Воаrd's "Guidelines: Аппчаl Fiпапсiаl Reporting and Auditing fоr Wоrld Вапk Fiпапсеd Activities" (the "WB Guidelines"). |п рrераriпg the рюjесt financial statements, mапаgеmепt is rеsропsiЬlе fоr: . se|ecting suitable accounting policies and applying them consistently; . making judgments and estimates that аге reasonable апd prudent, . stating whether lpsAs and wB Guidelines have Ьееп followed, subject to any material dерагtчrеs disclosed and explained iп the pýect fiпапсiаl statements; and . рrераriпg the рrоjесt financial statements оп а going сопсеrп basis, чпlеss it is iпаррrорriаtе to рrеsчmе that the Ргоjесt will Ье implemented in ассоrdапсе with the established period. Management is also rеsропsiЬlе fоr: . designing, implementing and maintaining effective and sound system of iпtеrпаl control and fоr revealing risks iп system of iпtеrпаl сопtrоl; . maintaining рrореr accounting rесоrds that disclose, with rеаsопаьlе ассчrасу at апу time, the financial position of the Project, апd which епаЬlе them to епsurе that the pýect fiпапсiаl statements of the Project comply with lPSAS апd WB Guidelines; . compliance with laws and regulations of the Republic of Tajikistan, accounting system of the Рюjесt and the rеquirеmепts of the Wоrld Вапk; . taking such steps as аrе rеаsопаь|у available to them to safeguard the assets of the project; and . detecting and preventing frачd and оthеr irrеgчlаritiеs. The project financial statements for the уеаr ended December 3,1 , 2019, for the реriоd frоm January 1, 2020 to FеЬrчаrу 29,2020 and forthe grасе period frоm Маrсh 1,2020 to June 30,2020 wеrе аррrочеd and authorized fоr issue оп August 10,2020 Ьу the mапаgеmепt of the Рrоjесt. S. Ка Yu. August 10, 2020 August 10,2020 Dushanbe, the Republic of Tajikistan Dushanbe, the Republic of Tajikistan 2 65 Stefan cel Mare şi Sfânt Blvd 7th Floor, Office 715 2001 Chisinau Moldova T: +373 22 233003 F: +373 22 234044 info@bakertilly.md www.bakertilly.md INDEPENDENT AUDITORS’ REPORT To the management of the Project “Second Public Employment for Sustainable Agriculture and Water Resources Management Project” under the Agency for Melioration and Irrigation under the Government of the Republic of Tajikistan and the State Committee on Investments and Government Property Management of the Republic of Tajikistan: Report on the project financial statements Opinion [1] We have audited the project financial statements of the Project “Second Public Employment for Sustainable Agriculture and Water Resources Management Project” (the “Project”) which comprise the summary of funds received and expenditures paid and the summary of expenditures paid by project components for the year ended December 31, 2019, for the period from January 1, 2020 to February 29, 2020 and for the grace period from March 1, 2020 to June 30, 2020, and a summary of significant accounting policies and other explanatory information (the “project financial statements”). [2] In our opinion the accompanying project financial statements present fairly, in all material respects, the summary of funds received and expenditures paid and the summary of expenditures paid by project components of the Project for the year ended December 31, 2019, for the period from January 1, 2020 to February 29, 2020 and for the grace period from March 1, 2020 to June 30, 2020 in accordance with International Public Sector Accounting Standard “Financial Reporting Under the Cash Basis of Accounting” (the “IPSAS”) issued by the International Public Sector Accounting Standards Board of the International Federation of Accountants, and the World Bank’s Financial Management Sector Board’s “Guidelines: Annual Financial Reporting and Auditing for World Bank Financed Activities” (the “WB Guidelines”). Basis for opinion [3] We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the auditor’s responsibilities for the audit of the project financial statements section of our report. We are independent of the Project in accordance with the International Ethics Standards Board for Accountants’ Code of Ethics for Professional Accountants (the “IESBA Code”) together with the ethical requirements that are relevant to our audit of the project financial statements, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Emphasis of matter [4] We draw attention to Note 9 “Statement of designated account” which represents cash balances in the amount of 73,258 US dollars as at December 31, 2019, February 29, 2020 and June 30, 2020 in OJSC Tojiksodirotbank (the "Bank") and to the fact that there were no movements on the account during the year that has ended December 31, 2019, for the period from January 1, 2020 to February 29, 2020 and for the grace period from March 1, 2020 to June 30, 2020. [5] Without qualifying our opinion, we draw attention to Note 2 to the project financial statements which describe the basis of accounting. These project financial statements were prepared for complying with the appropriate World Bank Guidelines and Financing and Grant agreements requirements. ADVISORY  ASSURANCE  TAX ICS Baker Tilly Klitou & Partners SRL trading as Baker Tilly is a member of the global network of Baker Tilly International Ltd., the members of which are separate and independent legal entities. 3 ,,SECOND PUBLIC EMPLOYMENT FOR SUSTAINABLE AGRICULTURE AND WATER RESOURCES MANAGEMENT PROJECT" GRANT No. H823-TJ, GRANT No. тF 013997, GRANT No. D081_TJ, cREDlT No.5697_TJ SUMMARY ОF FUNDS RECEIVED AND EXPENDITURES PAID FoR тнЕ YEAR ENDED DEGEMBER 31, 2019, FoR тнЕ PERloD FRoM JANUARY 1,202о то FEBRUARY 29,2020 AND FoR тнЕ GRAсE PERloD FRoM MARCH 1,2020 то JUNE 30, 2020 (iп US dollars) Notes Fоr the grace Fоr the period Fоr the уеаr Fоr the уеаr Cumulative period from from January ended ended March 1,2020 1,2020 to December 31, December 31, to Jчпе 30, FеЬrчаry 29, 20l9 201 8 2020 2020 Орепiпg ЬаIапсе 1 32,1 38 291 ,093 1,64з,783 1,770282 Funds received lDA Grапt H823-TJ 6 16,535,421 GРАFS Grапt ТF13997 6 1,415,зs; , .Зi:3З] 27,900,000 lDA Grant D081-TJ 6 - 1,133,629 5,454,904 lDA Сrеdit 5697-TJ 6 3,051 ,499 3,520,213 6,571,712 Total funds received 4,466,884 7,405,,135 56,462,037 ,t9 other income 478 1,470 34"l Total receipts 4,467,362 7,406,605 56,496"|56 Project expenses Works чпdеr раrt А 2,407,833 5,055,650 36,239,405 Goods, поп-сопsultiпg sегчiсеs, and consultancy services 5 42,319 158,618 94 3,286,1 1 ,959,897 1 6,362,831 wоrks under Раrt В and trаiпiпg 5 13,989 330,171 2,338,891 Ореrаtiпg costs 5 39 518 110,6,16 186,819 1,426,449 Total pýect ехрепsеs 42,358 1 59,136 5,81 8,632 7 ,532,5з7 56,367,576 Fоrеigп exchange (gain)/ loss (75) (466) 68 (1 34) 5,947 Other expenses 1,504 285 1,352 701 34,282 4 _______-98,99]- 1 32,1 38 291 ,093 ____l-,9lgJqэ- -------эqJg]- Management: \ Yu. Director August 10, 2020 August 10, 2020 Dushanbe, the Republic of Tajikistan Dushanbe, the Republic of Tajikistan The notes оп pages 7-17 torm ап integral part of the project financial statements. The independent auditors' rероrt is оп pages 3-4 ,,SECOND PUBLIC EMPLOYMENT FOR SUSTAINABLE AGRICULTURE AND WATER RESOURCES MANAGEMENT PROJЕСТ" GRANT No. H823-TJ, GRANT No. тF 013997, GRANT No. D081_TJ, CREDIT No.5697-TJ SUMMARY ОF EXPENDITURES PA|D BY PROJECT COMPONENTS FoR тнЕ YEAR ENDED DEGEMBER 31,2019, FoR тнЕ PERloD FRом JANUARY 1,2020 то FEBRUARY 29,2020 AND FoR тнЕ GRACE PERloD FRoM MARсH 1,2020 то JUNE 30, 2020 /и US dollars) For the grасе Fоr the period Fоr the уеаr Fоr the year Cumulative period frоm from January ended ended March 1,2020 1,2020 to December 31, DесеmЬеr 31, to Jчпе 30, FеЬrчаry 29, 2019 2018 2020 2020 Component l. Public wоrks and rehabilitation of irrigation and drainage iпfrаstruсtчrе 48,827 3,794,718 5,693,262 44,з45,958 Component ll. Assistance in wаtеr rеSоurсе management, including technical assistance ,1,801,369 1,535,505 9,136,538 for policy and institutional rеfоrm 13,6,14 70,957 Соmропепt lll. Project implementation 28,744 39,352 222,м5 303,770 2,885,080 159,136 ___l818,632_ 7,532,537 ___э6,367ýZ9_ -_ц358_ Yu. August 10, 2020 August 10, 2020 Dushanbe, the Repub|ic of Tajikistan Dushanbe, the Republic of Tajikistan The notes оп pages 7-17 tоrm ап integral part of the project financial statements. The independent auditors' rероrt is оп pages 3-4. 6 “SECOND PUBLIC EMPLOYMENT FOR SUSTAINABLE AGRICULTURE AND WATER RESOURCES MANAGEMENT PROJECT” GRANT NO. H823-TJ, GRANT NO. TF 013997, GRANT NO. D081-TJ, CREDIT NO. 5697-TJ NOTES TO THE PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2019, FOR THE PERIOD FROM JANUARY 1, 2020 TO FEBRUARY 29, 2020 AND FOR THE GRACE PERIOD FROM MARCH 1, 2020 TO JUNE 30, 2020 (in US dollars) 1. GENERAL INFORMATION According to the Financing Agreement between the Republic of Tajikistan and International Development Association (the “IDA”, “World Bank”) dated February 5, 2013, the IDA provided a Grant No. H823-TJ in the amount of 11,700,000 Special Drawing Rights to the Republic of Tajikistan. In accordance with the Grant Agreement between the Republic of Tajikistan and the Global Agriculture and Food Security Multi-Donor Trust Fund (the “GPAFS”) dated February 5, 2013, GPAFS Trust Fund provided Grant No. TF 013997 in the amount of 27,900,000 US dollars to the Republic of Tajikistan. According to the Financing Agreement between the Republic of Tajikistan and International Development Association (the “IDA”, “World Bank”) dated August 7, 2015, the IDA provided a Grant No. D081-TJ in the amount of 3,900,000 Special Drawing Rights to the Republic of Tajikistan. According to the Financing Agreement between the Republic of Tajikistan and International Development Association (the “IDA”, “World Bank”) dated August 7, 2015, the IDA provided a Credit No. 5697-TJ in the amount of 4,700,000 Special Drawing Rights to the Republic of Tajikistan. The Grants and the Credit were provided for implementation of the Project “Second Public Employment for Sustainable Agriculture and Water Resources Management Project” (the “Project”). Project purpose The objective of the Project is to improve food security: • In the short-run – by creation of temporary workplaces; • In the mid-run – by increasing crop production and farmers’ income due to the rehabilitation of the irrigation and drainage infrastructure; • In the long-run – by increasing the efficiency of water resources management. Initially the Project had to be implemented during 2013-2018, however in accordance to amendment to financing agreements No.H823-TJ and TF 013997 and the financing agreements No. D081-TJ and No. 5697-TJ the closing date of the Project was extended until February 28, 2020. The Project was also restructured in response to the devastating floods in the region of Gorno-Badakhshan Autonomous Oblast based on the proposal of the Government of the Republic of Tajikistan. The Project comprises 3 components: 1. Component I: Public works and rehabilitation of irrigation and drainage infrastructure; 2. Component II: Assistance in water resource management, including technical assistance for policy and institutional reform; 3. Component III: Project implementation. Component I: Public works and rehabilitation of irrigation and drainage infrastructure. This component consists of 3 subcomponents: Subcomponent Ia: This subcomponent finances creation of short-term employment for renovating and rehabilitating on-farm irrigation canals in areas with food insecurity and the provision of equipment. This subcomponent finances manual cleaning of secondary and tertiary irrigation canals in fourteen districts of Khatlon region (A. Djomi, Dj. Rumi, Djilikul, Vose, Khuroson, N.Khusrav, MSA Khamadoni, Javon, Pyandj, Qabodiyon, Shahritus, Vakhsh, Qumsangir, and Dangara) and three districts of Republican Subordination (Vahdat, Rudaki and Hissar). Additional costs include payment of taxes which are withheld from the employer to the social security fund (25% of salary), as well as procurement and allocation of instruments of labor to perform manual works, materials and services. 7 Subcomponent Ib: This subcomponent finances the lease or procurement of machinery and equipment (excavators, bulldozers and equipment for subsurface drainage), the procurement and installation of an irrigation flow regulating valves, the reconstruction of buildings, repair of water supply systems, pumping stations, and vertical drainage and wells, mechanical clearing of collector and drainage network. Subcomponent Ic: This subcomponent finances the emergency restoration works of flood channel, which flows through the city of Kulyab and protects it from floods and reduces the associated risks for agricultural land and irrigation systems, and emergency works on Pyanj river right bank in Hamadoni district and Gund river left bank in Shughnon district. Component II: Assistance in water resources management, including technical assistance in implementation of legislative and institutional reform. This component includes the following subcomponents: Subcomponent IIa: This subcomponent finances all activities associated with further improvement of the regulatory framework to introduce the integrated water resources management system and promote reforms in the water sector. It focuses on further development of the legal basis for integrated water resource management and water sector reform, preparation of a national integrated water resource management strategy to identify priorities for improving water resource management in Tajikistan and establishing a national water information system. Subcomponent IIb: This subcomponent finances provision of technical assistance and training to implement river basin management in Kafernigan river basin. Subcomponent IIc: The Project will help the Government of Republic of Tajikistan to form autonomous, financially independent entities – suppliers of hydrotechnical melioration services, responsible for management of interfarm hydrotechnical assets and water supply to Water consumers association; transform existing regional and district institutions into the new institutional units; and building and strengthening the capacity of Water consumers association. Component III: Project implementation This component ensures support in establishment and activities of Project Management Unit (the “PMU”) in Dushanbe and regional Project Coordination Unit (the “PCU”) in Kurgan-Tube city and the region of Rudaki. Project management The Project is implemented by Fergana Valley Water Resource Management Project Management Unit (the “PMU”) that has the status of a legal entity and was established based on the Decree of the Government of the Republic of Tajikistan. Duration of the Project is from February 5, 2013 to February 28, 2020 and grace period is from March 1, 2020 to June 30, 2020. 8 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 approach 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 readers with information about the sources of cash raised during the period, the purposes for which cash was used and the 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 serving bank on a date of last conversion. 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 serving bank, at the date of last conversion. Monetary assets and liabilities expressed in foreign currency are converted to functional currency at official exchange rate on a date settled by the serving bank. 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. 9 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 and replenishment of designated account. 4. CASH AND CASH EQUIVALENTS Cash and cash equivalents as at June 30, 2020, February 29, 2020, December 31, 2019 and December 31, 2018 comprise: Source of Currency June 30, February 29, December 31, December 31, financing 2020 2020 2019 2018 Designated Grant account No. H823-TJ USD 73,258 73,258 73,258 73,258 Credit Escrow account No. 5697-TJ USD 13,892 - - - Grant Tender accounts No. H823-TJ TJS 1,198 2,481 2,482 3,149 Account for Grant interest accrued No. H823-TJ TJS 3 4 4 4 Designated Credit account No. 5697-TJ USD - 30,124 71,186 189,323 Designated Grant account No. TF013997 USD - 26,185 89,615 1,376,578 Credit Transit account No. 5697-TJ TJS - 45 54,301 1,363 Grant Transit account No.TF013997 TJS - 41 40 90 Grant Cash on hand No. TF013997 TJS - - 125 10 Credit Cash on hand No. 5697-TJ TJS - - 82 8 88,351 132,138 291,093 1,643,783 10 5. PROJECT EXPENSES The Project expenses by components are presented in the summary of expenditures paid by project components. The Project expenses on major categories are presented in the summary of funds received and expenditures paid. Breakdown of the Project expenses by categories and nature is presented as follows: Works under part A There are no expenses by “Works under part A” categories for the period from January 1, 2020 to February 29, 2020 and for the grace period from March 1, 2020 to June 30, 2020. For the year ended December 31, 2019 Grant Grant Grant Credit No. H823-TJ No. TF 013997 No. D081-TJ No. 5697-TJ Mechanized works - 617,489 - 1,743,377 Hand works - - - 46,967 - 617,489 - 1,790,344 For the year ended December 31, 2018 Grant Grant Grant Credit No. H823-TJ No.TF 013997 No. D081-TJ No. 5697-TJ Mechanized works 196,185 927,845 500,837 2,206,263 Hand works - - 520,827 429,328 Restoration works of flood channel - Tebalai river 143,550 130,815 - - 339,735 1,058,660 1,021,664 2,635,591 Cumulative Grant Grant Grant Credit No. H823-TJ No.TF 013997 No. D081-TJ No. 5697-TJ Mechanized works 7,929,640 9,665,640 1,819,993 3,949,640 Hand works - 5,159,839 1,742,348 476,295 Restoration works of flood channel - Tebalai river 3,853,807 1,642,203 - - 11,783,447 16,467,682 3,562,341 4,425,935 Goods, non-consulting services, and consultancy services For the grace period from March 1, 2020 to June 30, 2020 Grant Grant Grant Credit No. H823 -TJ No.TF 013997 No. D081-TJ No. 5697-TJ Consultancy services - 26,224 - 14,237 Payroll and related taxes - - - 1,858 - 26,224 - 16,095 For the period from January 1, 2020 to February 29, 2020 Grant Grant Grant Credit No. H823-TJ No.TF 013997 No. D081-TJ No. 5697-TJ Consultancy services - 63,427 - 33,489 Payroll and related taxes - - - 4,654 Purchase of equipment - - - 57,048 - 63,427 - 95,191 11 For the year ended December 31, 2019 Grant Grant Grant Credit No. H823-TJ No.TF 013997 No. D081-TJ No. 5697-TJ Consultancy services - 736,134 - 437,553 Services - 63,907 - 37,685 Payroll and related taxes - 73,851 - 80,270 Purchase of equipment - 1,202,637 - 653,672 Bank fees - - - 485 - 2,076,529 - 1,209,665 For the year ended December 31, 2018 Grant Grant Grant Credit No. H823-TJ No.TF 013997 No. D081-TJ No. 5697-TJ Consultancy services 192,154 694,982 41,804 215,263 Services 4,995 40,005 33,300 172,609 Payroll and related taxes - - 41,138 88,062 Purchase of equipment - 409,037 - 17,392 Bank fees - - 5,527 3,629 197,149 1,144,024 121,769 496,955 Cumulative Grant Grant Grant Credit No. H823-TJ No.TF 013997 No. D081-TJ No. 5697-TJ Consultancy services 1,514,143 3,873,059 667,384 700,542 Services 1,508,946 2,478,403 231,641 210,294 Fuel 247,758 416,295 - - Payroll and related taxes 242,223 464,802 165,541 174,844 Purchase of equipment 311,772 2,180,196 61,613 728,112 Bank fees 34,229 53,731 8,417 4,114 Other 32,498 52,274 - - 3,891,569 9,518,760 1,134,596 1,817,906 Works under part B and trainings There are no expenses by “Works under part B and trainings” categories for the period from January 1, 2020 to February 29, 2020 and for the grace period from March 1, 2020 to June 30, 2020. For the year ended December 31, 2019 Grant Grant Grant Credit No. H823-TJ No.TF 013997 No. D081-TJ No. 5697-TJ Construction of administrative offices of water users associations - 3,188 - 7,704 Trainings - 3,097 - - - 6,285 - 7,704 For the year ended December 31, 2018 Grant Grant Grant Credit No. H823-TJ No.TF 013997 No. D081-TJ No. 5697-TJ Construction of administrative offices of water users associations 4,810 59,153 204,495 59,393 Trainings - 2,320 - - 4,810 61,473 204,495 59,393 Cumulative Grant Grant Grant Credit No. H823-TJ No.TF 013997 No. D081-TJ No. 5697-TJ Construction of administrative offices of water users associations 657,962 716,109 731,789 67,097 Trainings 66,865 99,069 - - 724,827 815,178 731,789 67,097 12 Operating costs For the grace period from March 1, 2020 to June 30, 2020 Grant Grant Grant Credit No. H823-TJ No.TF 013997 No. D081-TJ No. 5697-TJ Bank fees - - - 39 - - - 39 For the period from January 1, 2020 to February 29, 2020 Grant Grant Grant Credit No. H823-TJ No.TF 013997 No. D081-TJ No. 5697-TJ Payroll and related taxes - - - 313 Business trips - 125 - 57 Bank fees - 2 - 21 - 127 - 391 For the year ended December 31, 2019 Grant Grant Grant Credit No. H823-TJ No.TF 013997 No. D081-TJ No. 5697-TJ Payroll and related taxes - - - 66,582 Business trips - 420 - 10,622 Fuel and maintenance of vehicles - - - 9,940 Repair and maintenance - 604 - 4,723 Communication - 195 - 3,688 Advertising expenses - - - 2,687 Intangible assets - - - 1,420 Utilities - - - 920 Bank fees - 631 - 885 Stationery - - - 718 Insurance - - - 753 Purchase of computer equipment - - - 1,059 Other - 178 - 4,591 - 2,028 - 108,588 For the year ended December 31, 2018 Grant Grant Grant Credit No. H823-TJ No.TF 013997 No. D081-TJ No. 5697-TJ Payroll and related taxes - - 25,948 99,337 Business trips - 617 7,044 10,133 Fuel and maintenance of vehicles - 344 9,292 13,761 Communication - - 839 2,101 Utilities - - 747 854 Bank fees - 534 279 1,784 Stationery - - 300 1,134 Purchase of computer equipment - - 929 1,676 Other - 1,404 578 7,184 - 2,899 45,956 137,964 13 Cumulative Grant Grant Grant Credit No. H823-TJ No.TF 013997 No. D081-TJ No. 5697-TJ Payroll and related taxes - 693,432 25,948 166,232 Business trips - 63,508 7,044 20,812 Fuel and maintenance of vehicles - 144,035 9,292 23,701 Repair and maintenance - 50,298 - 4,723 Communication - 23,379 839 5,789 Advertising expenses - - - 2,687 Intangible assets - - - 1,420 Utilities - 17,360 747 1,774 Bank fees - 12,426 3,023 2,729 Stationery - 25,262 300 1,852 Insurance - - - 753 Purchase of computer equipment - 18,900 929 2,735 Other - 81,385 1,360 11,775 - 1,129,985 49,482 246,982 6. FUNDS RECEIVED The funds received are presented by the following financing methods and source of financing: For the year ended December 31, 2019 Grant Grant Grant Credit Total No.H823-TJ No.TF 013997 No.D081-TJ No.5697-TJ Reimbursement of expenses - 1,415,385 - 3,051,499 4,466,884 - 1,415,385 - 3,051,499 4,466,884 For the year ended December 31, 2018 Grant Grant Grant Credit Total No.H823-TJ No.TF 013997 No.D081-TJ No.5697-TJ Reimbursement of expenses 92,661 2,658,632 1,133,629 2,521,123 6,406,045 Advances received - - - 999,090 999,090 92,661 2,658,632 1,133,629 3,520,213 7,405,135 Cumulative Grant Grant Grant Credit Total No.H823-TJ No.TF 013997 No.D081-TJ No.5697-TJ Reimbursement of expenses 15,335,421 26,100,000 4,454,904 5,572,622 51,462,947 Advances 1,200,000 1,800,000 1,000,000 999,090 4,999,090 16,535,421 27,900,000 5,454,904 6,571,712 56,462,037 There are no funds received for the period from January 1, 2020 to February 29, 2020 and for the grace period from March 1, 2020 to June 30, 2020. 14 7. FINANCIAL POSITION Financial position as at June 30, 2020, February 29, 2020, December 31, 2019 and December 31, 2018 comprise: July 30, 2020 February 29, December 31, December 31, 2020 2019 2018 ASSETS AND EXPENDITURES Cash and cash equivalents 88,351 132,138 291,093 1,643,783 Cumulative expenses 56,367,576 56,325,218 56,166,082 50,347,450 Foreign exchange loss 5,947 6,022 6,488 6,420 Other expenses 34,282 32,778 32,493 31,141 TOTAL ASSETS AND EXPENDITURES 56,496,156 56,496,156 56,496,156 52,028,794 FINANCING Funds received 56,462,037 56,462,037 56,462,037 51,995,153 Other income 34,119 34,119 34,119 33,641 TOTAL FINANCING 56,496,156 56,496,156 56,496,156 52,028,794 8. WITHDRAWAL APPLICATIONS Withdrawal applications for the year ended December 31, 2019 comprise: Source of financing Application Date Goods and Total services, including audit, trainings and operating expenses Grant No. TF013997 37 February 8, 2019 175,748 175,748 38 April 10, 2019 308,243 308,243 39 June 13, 2019 687,706 687,706 40 September 4, 2019 243,688 243,688 1,415,385 1,415,385 Credit No. 5697-TJ 9 February 8, 2019 808,397 808,397 10 March 29, 2019 642,573 642,573 11 May 31, 2019 424,340 424,340 12 August 27, 2019 625,669 625,669 13 October 23, 2019 278,261 278,261 14 November 15, 2019 272,259 272,259 3,051,499 3,051,499 4,466,884 4,466,884 There are no withdrawal applications for the period from January 1, 2020 to February 29, 2020 and for the grace period from March 1, 2020 to June 30, 2020. 15 9. STATEMENT OF DESIGNATED ACCOUNT Statement of designated account for the periods from January 1, 2019 to December 31, 2019, from January 1, 2020 to February 29, 2020 and for the grace period from March 1, 2020 to June 30, 2020 comprise: Designated accounts Grant No. H823-TJ Credit No.5697-TJ Grant No. H823-TJ Grant No. TF 013997 Total Bank OJSC “Tojiksodirotbank” SSB of RT “Amonatbonk” SSB of RT “Amonatbonk” SSB of RT “Amonatbonk” Currency US dollars US dollars US dollars US dollars Bank account 20206840600000401325 20206840601010101000 20202840201009101000 20206840301006101000 47 Bekhzod str., 24 Lohuti str., 24 Lohuti str., 24 Lohuti str., Dushanbe, 734013, Dushanbe, 734013, Dushanbe, 734013, Dushanbe, 734013, Bank’s location Republic of Tajikistan Republic of Tajikistan Republic of Tajikistan Republic of Tajikistan Balance as at January 1, 2019 73,258 189,323 - 1,376,578 1,639,159 Reimbursement of expenses - 3,051,469 - 1,415,385 4,466,854 Total funds received to the designated account - 3,051,469 - 1,415,385 4,466,854 Expenses paid - 11,712 - 144,528 156,240 Transfer between accounts - 3,157,894 - 2,557,820 5,715,714 Balance as at December 31, 2019 73,258 71,186 - 89,615 234,059 Transfer between accounts - 41,062 - 63,430 104,492 Balance as at February 29, 2020 73,258 30,124 - 26,185 129,567 Expenses paid - - - 20,750 20,750 Transfer between accounts - 30,124 - 5,435 35,559 Balance as at June 30, 2020 73,258 - - - 73,258 16 10. UNDRAWN FUNDS As at June 30, 2020 undrawn funds are presented as follows: Grant Grant Grant Credit No. H823-TJ No. TF 013997 No. D081-TJ No. 5697-TJ in SDR in USD in SDR in SDR Approved financed amount 11,700,000 27,900,000 3,900,000 4,700,000 Disbursed for the period from February 5, 2013 to February 29, 2020 11,699,988 27,900,000 3,900,000 4,699,671 Disbursed for the grace period from March 1, 2020 to June 30, 2020 - - - - Undrawn financed amount 12 - - 329 Funds received as at January 1, 2019 11,699,988 26,484,615 3,900,000 2,491,178 Disbursed for the period from January 1, 2019 to December 31, 2019 - 1,415,385 - 2,208,493 Funds received as at December 31, 2019 11,699,988 27,900,000 3,900,000 4,699,671 Disbursed for the period from January 1, 2020 to February 29, 2020 - - - - Funds received as at February 29, 2020 11,699,988 27,900,000 3,900,000 4,699,671 Disbursed for the grace period from March 1, 2020 to June 30, 2020 - - - - Funds received as at to June 30, 2020 11,699,988 27,900,000 3,900,000 4,699,671 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. As at June 30, 2020 the Project had commitments for covering audit service expenses for the year ended December 31, 2019, for the period from January 1, 2020 to February 29, 2020 and for the grace period from March 1, 2020 to June 30, 2020 in the amount of 13,740 US dollars. 12. LEGAL CASES There were no legal cases related to the Project. 17