,1癰쁜빼쌕뿡Y -4」―「1 & & & 」 &.(- . & 떼 && - . . 「 , - & - - . - - & - . - 【 . · . -, EU/IPAENERGYSEcTORPROGRAM PRoJEcT-PHA聊 11 1 · ．」 - : - , 二 - , . , & . - , 믹 _ 긺 ■ _ · . & . - · , . · . , - & _ - 【 , · : - · - : : · - … : 빼 . 1 : , . - & · & . , . & &．· - . , &- In1Plemented by 1 -. . - . , · & & ( · , - : , : ( ( :MINIsTRY,OFENERGY.AND NATtJㅓ尺AL」·RE,OIJRcEs」 , 1 . 11 . ，【 』 DireCtorate GeneralofF0reign Relation& , ∼， 1 눕 』 , 4 - - 4 1 l · - · · . Financedtllldel’」WoI&ld BankGrantAgreemenLnumberedTF.019255 . ·． 1 AsbfDecember, 2018and ForTheyearThen Ended 」 & ㅑ · & - - - PrePared瞰 …떼 - 떼·， : . · , - 뀁 & 헌－ - , 긴 . - . 긴 4 . 」 -, · - 【· · & Erkall:KIUC . . 」「． ! ，·【 · & 』 【A!DerERGEN 4 J 卜． 「 갼， · · & . · 央mor &1&reas,ury L0ntroller ,. &1&reasuryCo꺄．roller · . ·． ! & 쑈 . - \ . 9 . 【 F · - . 노 1 & & 1 & 『 · , F,& .-．· .-4 「 」·【， 」 -. 』，…，」 &11 Adem-TnRKYILMAz , 1 .. , 」」’1’· .J 1 :. 구 1―「·／ ·．.1떼· 』‘．·．·， -‘』4炒n沁rTreasuryCOlltrollet · --1.．「…편 1 -1-.11-- 1 . , . · · l _ . . , . · _ _ , . . 겸 . . 1 . , , 【 . . - 』 ,- · . 긴 」 & · 긴 - & . &.& & 「 친 & , ;&&--―替／［·殃떼떼―휑！---&; 「1411/ & REPUBLIC OF TURKEY MINISTRY OF TREASURY AND FfNANCE Board of Treasury Controllers CONTENTS EXECUTIVE SUM M ARY ....................................................................................................................................... 3 A. Project Sum m ary .................................................. ...................................................................................... 3 B. Objectives of Audit ..................................................................... ......................... ........... .......................... 4 C. Scope of Audit ............................................................................................................................................... 4 D. Audit Results ................................................................................................................................................. 4 E. M anagem ent Recom m endation ............................................................................................................. 4 INDEPENDENT AUDIT REPORT'S & FINANCIAL STATEMENTS OF THE PROJECT ................... 5 INDEPENDENT AUDITOR'S REPORT ............................................................................................................ 6 Opinion .................................................................................................................. ............................................. 6 Basis for Opinion .............................................................................................................................................. 6 Em phasis of M atter in the Financial Statem ent .............................................................................. .... 6 Going Concern ................................................................................................................................................... 7 Responsibilities of Management and Those Charged with Governance or other appropriate term s for the Financial Statem ents .................................................................................. 7 Auditor's Responsibilities for the Audit of the Financial Statem ents .......................................... 7 EXECUTIVE SUMMARY REPUBLIC OF TURKEY MINISTRY OF TREASURY AND FINANCE Board of Treasury Controllers EXECUTIVE SUMMARY A. Project Summary The Grant Agreement for the EU/IPA Energy Sector Program Project-Phase II with European Union Instrument for Pre-Accession Trust Fund Grant Number TF-019255 was signed on 19.06.2015 by the World Bank acting as administrator of the aforementioned Trust Fund and Undersecretary of Ministry of Energy and Natural Resources representing the recipient of the grant, Republic of Turkey. The World Bank agreed to extend to the recipient, on the terms and conditions set forth or referred to in the Grant Agreement, a grant in an amount equal to EUR 11.593.021. The objective of the EU/IPA Energy Sector Program Project-Phase II (Project) is enhancement of the Turkish Energy Sector in line with the EU energy priorities and strategies in energy efficiency, renewable energy and the natural gas market. Ministry of Energy and Natural Resources, General Directorate for EU Affairs and Foreign Relations, Department for EU Affairs and IFIs was appointed by the Grant Agreement as the project implementation unit to carry out the Project. The project consists of the following parts; Part A: Ministry of Energy and Natural Resources Part B: Natural Gas Market Development Part C: Renewable Energy Development Part D: Energy Efficiency Promotion Part E: Visibility and Public Awareness According to the provisions of the Grant Agreement, the procurements made for the Project are classified into a single category named "Consultants' Services Under the Project". According to the Section IV article B(2) of the Schedule 2 "Project Execution" part of the Grant Agreement, the closing date of the Project is May 31, 2020 originally. The expenditure realized throughout the current audit period is EUR 541.661,34 resulting in the cumulative spending by the end of the audit period amount to EUR 1.237.819,25. 3 REPUBLIC OF TURKEY MINISTRY OF TREASURY AND FINANCE Board of Treasury Controllers B. Objectives of Audit The objectives of our audit are; a] To give an opinion on whether the financial statements, prepared as of December 31, 2018 and for the period then ended, present fairly, in all material respects, the financial position of the project in accordance with the cash receipts and disbursements basis of accounting, b) To determine, as of December 31, 2018, whether the Ministry of Energy and Natural Resources, General Directorate for EU Affairs and Foreign Relations has complied, in all material respects, with the rules and procedures of the Grant Agreement numbered TF- 019255. C. Scope of Audit We have performed an audit of financial statements of EU/IPA Energy Sector Program Project-Phase II as of December 31, 2018 and for the period then ended in accordance with the cash receipts and disbursements basis of accounting. We have also performed a compliance audit on whether project activities are in line with the Grant Agreement. Our audit was conducted in accordance with International Standards on Auditing published by International Federation of Accountants (IFAC) applicable to the audit of financial statements and compliance auditing. There was no limitation in our scope for the Project's audit. D. Audit Results For the financial statements of project; our audit resulted with an unqualified opinion. As of December 31, 2018, Ministry of Energy and Natural Resources, General Directorate for EU Affairs and Foreign Relations has complied, in all material respects, with the rules and procedures of the Grant Agreement numbered TF-019255. E. Management Recommendation Since we have not identified any findings during our audit, we have not issued a Management Letter. 4 INDEPENDENT AUDIT REPORT'S & FINANCIAL STATEMENTS OF THE PROJECT REPUBLIC OF TURKEY MINISTRY OF TREASURY AND FINANCE Board of Treasury Controllers INDEPENDENT AUDITOR'S REPORT TO MINISTRY OF ENERGY AND NATURAL RESOURCES, Directorate General of Foreign Relations, ANKARA Opinion We have audited the Statement of Sources and Uses of Funds, Statement of Cumulative Investments, Statement of Special Account of the EU/IPA Energy Sector Program Project- Phase II as of December 31, 2018 and for the period then ended, and a summary of significant accounting policies and other explanatory information. The financial statements have been prepared by Ministry of Energy and Natural Resources, General Directorate for EU Affairs and Foreign Relations based on relevant provisions of the Grant Agreement Numbered TF-019255. In our opinion; a) The accompanying Statement of Sources and Uses of Funds, Statement of Cumulative Investments, Statement of Special Account present fairly, in all material respects, the financial position and accounting policies of the EU/IPA Energy Sector Program Project- Phase II as of December 31, 2018 and for the period then ended in accordance with the provisions of the Grant Agreement Numbered TF-019255. b) Ministry of Energy and Natural Resources, General Directorate for EU Affairs and Foreign Relations, as of December 31, 2018 has complied with, in all material respects, the requirements of the Grant Agreement Numbered TF-019255. Basis for Opinion 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 Financial Statements" section of this report. We are independent of the Ministry of Energy and Natural Resources, General Directorate for EU Affairs and Foreign Relations within the meaning of ethical requirements and have fulfilled our other responsibilities under those ethical requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Emphasis of Matter in the Financial Statement We draw attention to Note "4" to the financial statements, which describe the basis of accounting. The financial statements are prepared to assist the Ministry of Energy and Natural Resources, General Directorate for EU Affairs and Foreign Relations to comply with the 6 REPUBLIC OF TURKEY MINISTRY OF TREASURY AND FINANCE Board of Treasury Controllers financial reporting provisions of the World Bank Grant Agreement Numbered TF-019255. As a result, the financial statements may not be suitable for another purpose. Going Concern The Project financial statements have not been prepared using the going concern basis of accounting. The project will be completed as of May 31, 2020. Responsibilities of Management and Those Charged with Governance or other appropriate terms for the Financial Statements Ministry of Energy and Natural Resources, General Directorate for EU Affairs and Foreign Relations is responsible for the preparation and fair presentation of these financial statements in accordance with Grant Agreement N-umbered TF-019255, 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. Those charged with governance are responsible for overseeing the Ministry of Energy and Natural Resources, General Directorate for EU Affairs and Foreign Relations' financial reporting process. Auditor's Responsibilities for the Audit of the Financial Statements The objectives of our audit 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 scepticism throughout the planning and performance of 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 7 REPUBLIC OF TURKEY MINISTRY OF TREASURY AND FINANCE Board of Treasury Controllers 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 entity's internal control. * Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. * 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 are required to 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. We are also required to provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. Ahmet TUTAL Acting Chairman of Board of Treasury Controllers Akif Btilent BOYACIOGLU (Audit Partner) Vice Chairman 8 REPUBLIC OF TURKEY MINISTRY OF TREASURY AND FINANCE Board of Treasury Controllers Erkan KILIC Al er ERGEN A RKYILMAZ Senior Treasury Controller Treasury Controller Junior Treasury Controller Date: June 18, 2019 Address: Ministry of Treasury and Finance Board of Treasury Controllers 06510, Emek, ANKARA/TORKIYE 9 мlwsтяУ оЕ ЕиЕrгсrано ИдтиRА� кеsоиневs GЕИЕнй.L DIRECTpRATE йF F4)RElC,N RELATIONS AND EU Еигореап дпгоп! instrument For pre-Aecession Assistersce{lРА� Energy 5ector Ргадгат-phase 11 (ТРбi§255j ТссИпlсаl Assintalьce Project STATEMENT OF Ct1M11LАТ1цЕ iNi7ESTMENTS As оВ ОесетЬег 31, 20i8 апд>=аг The Уеаг Fhen Епдед (Еига) 1-1NVE5TMENTS �� � �� eampanent Иате Projecl Actualizeд - � Рlаппед � � Vапапсе ���� .. 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Accession Assistence(IPA) Energy Sector Program-Phase 11 (TFO 19255) Technical Assintance Project STATEMENT OF SOURCES and USES of FUNDS As of December 31, 2018 and For The Year Then Ended (Euro) Project Actualized Planned nce Notes Budget YTD Cumulative YTD Cumulative YTD_ _ umiulative I-OPENiNG BALANCE 1.696.648,69 0,00 0,06 0,00 1.696.648.69 0,00 11- SOURCES OF FUNDS lIZ93,021,00 0,00 2.392.806,00 1.103.4f9A4 3.199.577,35 -1.103A19A4 -11.406J71,35 A- Government Contribufion 0,00 0.00 0,00 0,00 0,00 0,00 0.00 13- Other Sources of Funds 0,00 0,00-- 0,00 0.00 0.00 0.0D 0.00 C- World Bank Funds (Grant) 11.593.021,00 0,00 2.392.806,00 1,103.419,44, 3.799.677,35 -1,103.419A4 .1.406.771,35 1 - 9222LE 0.00 0,00 0,00 0.00 000 0.00 2- Special Account 11.593.021,GO 0.00 2.392 806,00 1,101419,44 3.799.577.35 - 1. 103 419,44 -1.406.771.35 a- Advance G,00 0,00 2.000 000.00 0,00 2.000.000.00 0,00 0,00 b- SOE Procedures 11.593.021,00 0.00 392,806,00 1.103 419,44 1,799.577,35 -1,11)1419A4 -1.406.771,35: r Si, rnnrary Sheet 0,GO 0.00 0.00 orn 0,00 O'no 0,00 D- Rnfurift tn Account 0,00 0,00 0.0u 0''11 0,00 _000 6 MOWN IV- USES OF FUNDS 11.693 D21,001 254.561,94 7113.388,76 51&155,14 966.981," -263.593,20 -263.593,2D Component-1) Energy Efficiency 3,820.588,98 152.777 97 579.766,88 843.370,98 -2G3,604,10 _263.604jo Consulting Services for Pilot Project forAnatyss ofthe hydro peer generalion facilities (CS 01 a) 294.790,110 O'Go 192.375,00 1 102.415.00 294.790,00 -102.415,00 -102-415 00 HATCH LTD 294 79oraa U0 192 375M 102415,00 294.790,00 -102.415,00 -102 415 DO Consulting Services for Pilot Project for Analysis of the 265.970,00 53 194,00 265.970,00 53.194,00 265.97D.00 D'00 0,00 thermal power generation facilities (CS 01 b) i EDF S.A (Elektneite de France) 265970,00 53.194,00 265970,00 53 194,DO 285X0,00 0,00 O'Do 7onsulting Services for EE in power generation (CS - 01c) 2A37.966,00 0,00 G,00 0,DO 0100 0,00 0,00 Consulting Services for Anatysis of the energy storage 2ST000,00 66.750,DO 66.750,00 56.750,00 66,750,GD 0.00 0,00 systems (CS Old) rDF,5 A (Beldricite de Frarce) 267000,00 66.750,00 56150roo 66,750,00 615.750,00 0,00 0,00 Consulting Services for Technical review, analysis and 27&000,00 27 800'00 27,800,00 139.000,00 139 000,00 -111.200,00 -111.2DO,00 assessment of EE on transmission grids' (CS 01 e) CESI spa 1 278 OD0,00 27,80D.00 27.800,00 139.D00,00 139 000,UO -111.2GDro0i -111,2CO,DO Consulting Services for EE in natural gas transmission 7 (CS M Z50.000,00 0,00 0,00 50.000'oo 50.000,00 -50.DOO,Go _50=0'00 Consulting Services for EE Instituticinal Cooperation - (CS 01g) 26.860,98 SM3,97 26.871,88 5 023.07 26.8%98 10.90 10,90 Malahat,515MAN 26 860 98 6.033,91 26,871.98 5.023.07 26.860,98 10,90 10 90 Compoinent-2) Electricity and Gas Market 1.533.957,00 240.303,07 809,472 07 240.303,07 509,472,OT 0,00 0,00 Development Consulting Services for Energy Market Development (CS 02a) 1,201.515,37 240.303,07 240.303.07 240.303 07 240.303,07 0.00 0.00 MRC Consultants and Transaction Advisers, ECCO International and Exergia 1190125.00 240303.07 240.303,07 240.303,07 240.303,D7 0.00 0.00 Consulting Services for IT Development for Natural Gas Transmission System (CS 02b) 269,169,00 0,00 269.169,00 0,00 269,169'ao 0,00 0,DD ACCCENTURE 269169,00 0.00 269.169,00 0.00 269.169,00 0.00 0,00 Non Consutting Services for Energy Sector Capacity Building (Study vfsits, trainings, International events) 63.272,83 O,DO 0,00 0.00 0.00 0,0o 0.00 (NCS 03) Comporitnt-3) Long-term Energy Scenarios, Capacity Building And Establishment Of An Energy 4.771.047,00 81.108,30 81.108,30 379,262,30 379.262,30 -298.11",oa -2.98.154.00 Data Center S&I for Establishmentof Energy Electonic Data Center (G.SI-01) 3,845.887.00 0.00 0,00 149.077,00 149.077,00 -149.077,00 -149.077= Consulting Services for Long-term Energy Scenarios, 711.083.00 71.108.30 71.108,30 71.1G8,30 71.108,30 0,00 0.00 Capac ity Building (CS 03) EXERGIA Energy and Environment 711.083,00 71.108,3U 71.108,30 71.108.30 71.10,30 0.00 ' _00 Consulting Services for Establishment of Data Center Restructuring of Internet Portal System Survey Module 65.()00,D0 1D.000,00 10.000.00 10.000,OG 1 D.D00,00 0,00 0,00 (CS D4a) I I Ahmet KOCAMAZ F15 000,00 1O.D00,00 10.00,00 1DWO.D0 10=0.00 0.00 0.00 Non-consultIng Services for Required System Hardware Equipment,'NCS 04 149.077.00 0.00 0.00 149.077.00 149.077.00 -149.G77,D0 -1149.077,00 Component-4) Visibility and Public Awareness 4511.illiflillib 67.472,00 57.412,00 67.472,00 67.472,0 0,00 0,00 Logistical,Organization and Translation Services for W.040,DD 37.472,00 37,472,00 37A72,00 37.472.DD 0,00 0.00 Visibility workshops, seminars and meetings (NCS 01a) I I HYT Ydnefirn Eattim Org. LTD 5TI O&D40,00 37.472,00 37472,00 37 472,00 37.472!,00 0,00 0,00 Logistical, Organization and Translation Services for 42.300,00 0,00 0.00 0,00 0,00 0,00 0,00 Visibility workshops, seminars and meetings (NCS 01 b) Non-consuttingServices for Awareness 245,920,00 0.00 0.00 0,00 0,00 0,00 0= Camaians(NCS 92)--,, Non-consuttingServices for Awareness Campaigns fNCS 02a) 75.0W,D0 30.DD0,00 30.DDO,00 30,000.00 30.000PO 0,00 0.00 ENGRAM Aians Gc, sel 119tilim Mim. 3.1g. Hizmt. San LTD.STt 75.D00,00 30 10J,D0 30MO.D0 30 OOO.DO 30030,00 0,00 O.Do iContingency(Tender saving) 0,00 0,DD D.00 0,00 0.00 0,00 ,&PPOIECT I N [VTOT VESTME NTS -56IJ58.10 -561,758 In "T. i I 1)The opening balance is used as the fund of the current year Cue to that. the opening balance of the previous years indicated at the bottom row of the top roAto be inclulued in the total fund Of the current year Or Oztork Selvtop Deputy Director General MINISTRY OF ENERGY AND NATURAL RESOURCES GENERAL DIRECTORATE OF FOREIGN RELATIONS AND EU European Union/ instrument For Pre- Accession Assistence(IPA) Energy Sector Program-Phase II (TF019255) Technical Assintance Project STATEMENT OF REQUESTS FOR DISBURSEMENT (SOE STATEMENT) For The Year Ended on December 31, 2018 (Euro) I- REQUESTS REIMBURSED Disbursement Categories Appl. Date Appl. No. 1-Consulting 2-Operating Total Amount Date of Services Cost Paid Payment Sub total 0,oo 0,00 0,00 0,00 II- REQUESTS PENDING REIMBURSEMENT Disbursement Cate ories Appl. Date App . No. 1- Consulting 2- Operating Total Amount Date of Services Cost Paid Payment 0,00 0,00 0,00 0,00 0,00 Sub total __ _ _ _ 1 1 III- TOTAL AMOUNT REQUESTED 1-Consulting 2-Operating Total Amount Services Cost Paid 0,00 0,00 0,00 0,00 NOTES: SOE demand was not made during the y Dr. rk O Deputy Director General MINISTRY OF ENERGY AND NATURAL RESOURCES GENERAL DIRECTORATE OF FOREIGN RELATIONS AND EU European UnionI instrument For Pre- Accession Assistence(IPA) Energy Sector Program-Phase II (TF019255) Technical Assintance Project SPECIAL ACCOUNT STATEMENT ACCOUNT NO AT ZIRAAT BANK: 57 82 52 78-5013 For the Year Ended December 31, 2018 (Euro) Openin Balance 1.696.648,69 Reimbursements to SA 0,00 a) Advance 0,00 b) SOE Procedure 0,00 c) Summary Sheet 0,00 Refunds to Special Account 0,00 Available Funds 1,696.648,69 Payments Made for Expenditures 541.661,34 Service charges for the account 0,00 Total Project Investments 541.661,34 Closing Balance 1.154.987,35 Dr. OztQrk Selvitop Deputy Director General REPUBLIC OF TURKEY MINISTRY OF ENERGY AND NATURAL RESOURCES GENERAL DIRECTORATE OF FOREIGN RELATIONS (Energy Sector Program Phase 11 Project) (TRUST FUND GRANT NUMBER TF019255) For The Year Then Ended on December 31, 2018 1. OBJECTIVES AND STRUCTURE OF THE PROJECT/GRANT The objective of the Project is to develop the administrative and technical capacity of the Recipient's relevant institutions to achieve an increasing alignment with the EU acquis and the Europe 2020 Targets in the areas of (1) energy efficiency, (2) internal energy market, and (3) long-term energy planning and modelling. The Project consists of the following parts: Part A. Enerm Efficiency I. Carry out the following activities in relation to energy efficiency in electricity transmission and generation: a. analysis of the current energy efficiency conditions of the energy generation facilities of the EUA$; b. preparation of a needs assessment and feasibility study regarding energy efficiency of the EUAS power plants; c. site visits by EUA$ personnel to selected European thermal and hydraulic power plants (10 personnel fora 4-day visit); d. preparation ofa needs assessment, and organization ofa workshop regarding the setup of a central monitoring and evaluation systems for thermal power plants; e. organization of a symposium and a workshop on the improvement of the energy efficiency applications in electricity generation power plants and transmission grids; f. organization of a symposium and a workshop, as well as technical review to analyze measures adopted by EU Member States for energy efficiency in the operation and maintenance of transmission grids and power plants; g. a needs assessment and organization of a workshop to analyze the energy storage systems and frequency regulation systems in the area of security of supply and system stability (such as flywheel technology); h. analysis of the current energy efficiency conditions of the electricity transmission network of TEIA$; L. preparation of a needs assessment study regarding energy efficiency of the electricity transmission network; and J. preparation of a feasibility study regarding energy efficiency of the electricity transmission system in terms of financing. 1 4 2. Carry out the following activities in relation to energy efficiency in natural gas transmission: a. Preparation of needs assessment study regarding energy efficiency of the natura! gas transmission system; and b. preparation of a feasibility study regarding energy efficiency of the natura! gas transmission system in terms of financing. Part B. Electricity and Gas Market Development Carry out the following activities in relation to electricity and gas market development: a. Preparation of a study to identify any changes in legislation and implementation needed for the establishment of EPIA$, including the determination of bottlenecks, legislative requirements, implementation issues and market structure for a properly functioning energy market; b. preparation of draft legislation to address the shortcomings identified in the study carried out under paragraph a. above, including the preparation of additional regulations for the efficient operation of and the administrative structure of the energy exchange; c. organization of trainings for capacity building on the proposed administrative structure for EPIA$; d. preparation of: (i) a study for the identification of technical infrastructure needs that are to be completed in order to ensure a properly functioning energy exchange; (ii) a roadmap regarding the post trade processes; (iii) an analytical study on the regulation of the EPIA5, including the feasibility of creating a mixed structure from Capital Markets Board ofTurkey and EMRA; (iv) a roadmap for the enhancement of the organizational and administrational capacity, and arrangement of the institutional roles of MENR, EMRA, TEIA$, BOTA$, the Capital Markets Board and Borsa Istanbul regarding exchange trading and monitoring activities; and (v) an analytical study on EU best practices in monitoring and market surveillance in commodity markets, including a roadmap on their adaptation to Turkish systems. e. organization of a workshop on the outcomes of the studies identified in (d) above, with participation of the relevant units from MENR and EMRA, as well as other related institutions; and f. (i) design of a Supervisory Control and Data Acquisition (SCADA) system which reflects the needs of liberalizing natural gas sector; (i) preparation of the needs assessment, feasibility studies and terms of reference for the related software and hardware systems for effective implementation of the SCADA system and gas management tools; and (iii) development of mathematical modelling programs for the SCADA system. 2 Part C. Long-Term Enemy Scenarios. Capacity Building and Establishment of an Energy Data Center Carry out the following activities in relation to long-term energy scenarios, capacity building and establishment of an energy data center: a. Review of the current energy data collection system and preparation of a report identifying gaps in the system, a roadmap and needs analysis for (i) the elimination of the identified gaps for the establishment of the data center; and (ii) identifying the necessary infrastructure (hardware and software) to be supplied; b. carrying out a study for the improvement of the capacity of MENR's monitoring information system, and carrying out of necessary activities for its integration with the envisaged data center; c. preparation of draft legislation to implement the roadmap referenced in paragraph (a) above; d. organization of training targeted at both public and private stakeholders for the effective operation of the data center and organization of trainings on data analyzing, modelling, future planning and projections (6 trainings, 5-days for 50 personnel each); and e. development of the necessary software for the energy data center, supply of the hardware, and installation and commissioning of hardware and software for the energy data center. Part D. Visibility and Public Awareness Carry out the following activities in relation to visibility and public awareness: a. Organization of a regional forum on energy efficiency including the participation of policy makers, regulatory authorities, industrial branch associations, municipal administrative bodies, small and medium-size enterprises (SMEs), universities, individuals, owners of residential and commercial buildings, consumer associations, environmental groups and associations, lending market actors including banks, international financial institutions (IFIs), and energy service companies; b. organization of media awareness campaigns (preparation of television ads and ads on newspapers; preparation and dissemination of booklets, construction of a website) about the EU' s energy objectives and strategies particularly in energy efficiency and renewable energy as well as dissemination of publications (regarding the outcomes of the measures implemented) in a variety of forms such as textbooks, flyers, course notes, information series, booklets, and monograms; c. organization of four seminars for municipalities on financing mechanisms for energy efficiency and pilot studies thereon completed within 2012 and 2013 IPA Projects, the status of the energy efficiency lending market, the progress achieved in the development of an energy efficiency lending market, mechanisms established and case studies thereon; and d. Organization of two workshops for SMEs, individuals, universities and municipalities for case study developments and dissemination of results of 2013 iPA Projects. II. DURATION OF THE GRANT Closing date of the Project is May 31, 2020. III. FINANCING OF THE GRANT The World Bank agrees to extend to the Recipient, on the terms and conditions set forth or referred to in this Agreement, a grant in an amount equal to eleven million five hundred ninety-three thousand twenty-one Euros (EUR 10,625,000) ("Grant") to assist in financing the Project. IV. THE ACCOUNTING PRINCIPLES AND POLICIES WITH CIART OF ACCOUNTS AND FISCAL TABLES 1. Accounting Standard Applied The Chart of Accounts of the Project has been prepared on an "Accrual Basis" in accordance with the International Accounting Standards. However, the accounting procedures function on a "cash basis" in order to avoid exchange differences in investment expenditures and costs. 2. Accounting Basis The entire fiscal tables are prepared in accordance with the cash basis. In line with this basis, after the financial transactions and economic events took place, they are taken into accounting records when the cash or quasi cash assets have been collected or paid and are reflected to fiscal tables of the related period. 3. Currency Our accounting records are kept by applying real time exchange for both currencies, Turkish Lira and Euro which is the financial currency of the loan agreement signed between the World Bank and the Turkish Government. 4. Fixed Assets The fixed assets which have been purchased by the project resources are recorded in line with the costs on the procurement date, the project components and the expenditure categories. The amortization records related with the project assets are not carried out. 5. Exchange Transactions Euro and TL records of the utilization of the resources and funds, and the investment expenditures, the daily current exchange buying rate on the collection and payment date published by the TC Ziraat Bank, is taken into account. 6. Receivables The receivables are specified by net asset hasis. Since the accounting system functions on a cash basis, the "receivables" are formulated by advance payments to the components and staff 4 responsible. Advance payments in the period of arrangement of standard periodical reports by the World Bank are added to the related investment accounts. 7. Continuity The Project shall execute the activities by May 31, 2020 or another date which shall be negotiated between the World Bank and the Republic of Turkey. 8. Severance Pay In accordance with the Turkish Law the severance pay is paid in case of retirement or dismissal. The staff of the Projects Implementation Unit is the staff of MENR General Directorate of Foreign Relations. The contracted consultants work under working contracts. Due to this fact, the severance pay is not under discussion and not made any provision. 9. The Capitalization of the Financial Expenditures Neither commission fee nor charge has been paid to The Ziraatbank of Republic of Turkey. 10. Refunds to the special account No amount has been refunded paid to the Republic of Turkey Ziraat Bank where Project Special Account exists. V. THE LiMiTED UTILIZATION OF THE FUIND AND OTHER ASSETS In accordance with the grant agreement signed between the Republic of Turkey and the World Bank, the funds under the Special Account are restricted to be utilized only in line with the project/Grant objectives. Fixed assets procured with the project funds of MENR, are restricted only to be used in line with the project objectives by the closing date of the Project/Grant. MENR, in order to control such assets, during the project and sub-project implementations, has kept each record relevant to this issue. VI. THE GRANT OF INTERNATIONAL BANK FOR R ECONSTRUCTIONAND DEVELOPMENT (IBRD) The amount of withdrawal from the grant for amount of E 11,593,021 to the account in the TC Ziraat Bank is E 2,392,806.60 as of December 31, 2018. VII. THE ACTUAL CASH AMOUNT OF DECEMBER 31.2018 The actual cash amount as of December 31, 2018 is as indicated in the chart below. The currency is stated in Euro. Loan Funds Mutual Funds Total 5 _Pecial Account E 1,154,987.35 0.00 E 1,154,987.35 fixed Funds 0.00 0.00 _ 0.00 Checking Account 0.00 0.00 0.00 7otal £ 1,154,987.35 0.00 E 1,154,987.35 VIII. THE PLANNED EXPENDITURES FOR THE CURRENT YEAR The planned expenditures amount will be E 5,3 million for the year of 2019. IX. DIFFERENCES BETWEEN THE REOUESTED AND PAID AMOUNTS UNDERTHESOEPROCEDURE No withdrawal application has been made in the review period. X. CORRECTION OF THE PREVIOUS YEAR'S FINANCIAL STATEMENTS No correction has been made for the previous year's financial statements. Dr. Ozttirk Selvitop Deputy Director General 6