PKF MAK ALYANS LLC Accountants & L business advisors L L INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT HORTICULTURAL DEVELOPMENT PROJECT LI (PROJECT IMPLEMENTATION UNIT) AGENCY FOR IMPLEMENTATION OF PROJECTS IN THE FIELD OF AGROINDUSTRY AND FOOD SECURITY OF UZBEKISTAN (EXECUTING AGENCY) INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT LOAN No. 8393-UZ INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT LOAN No. 8824-UZ EUROPEAN UNION TRUST FUND GRANT No. TFOA7910 SPECIAL-PURPOSE CASH BASIS FINANCIAL STATEMENTS AND STATEMENTS OF EXPENDITURES FOR THE YEAR ENDED DECEMBER 31, 2018 AGENCY FOR IMPLEMENTATION OF PROJECTS IN THE FIELD OF AGROINDUSTRY AND FOOD SECURITY HORTICULTURAL DEVELOPMENT PROJECT TABLE OF CONTENTS Page STATEMENT OF MANAGEMENT'S RESPONSIBILITIES FOR THE PREPARATION AND APPROVAL OF THE SPECIAL-PURPOSE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018 3 INDEPENDENT AUDITORS' REPORT 4 INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT SPECIAL- PURPOSE FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018: Special-Purpose Statement of Cash Receipts and Payments 6 Special-Purpose Statement of Financial Position 7 Special-Purpose Statement of Detailed Costs by Categories 8 Special-Purpose Statement of Detailed Costs by Components 9 Special-Purpose Project Designated Accounts Statements 15-25 Notes to Special-Purpose Financial Statements 10-14 / 26-28 AGENCY FOR IMPLEMENTATION OF PROJECTS IN THE FIELD OF AGROINDUSTRY AND FOOD SECURITY HORTICULTURAL DEVELOPMENT PROJECT STATEMENT OF MANAGEMENT'S RESPONSIBILITIES FOR THE PREPARATION AND APPROVAL OF THE SPECIAL PURPOSE FINANCIAL STATEMENTS FOR YEAR ENDED 31 DECEMBER 2018 The Management of the Agency for Implementation of Projects in the field of Agroindustry and Food Security is responsible for the preparation of the Special-Purpose Financial Statements (hereinafter - "Financial Statements") of the "Horticultural Development Project" (hereinafter - "Project") implemented by the Agency for Implementation of Projects in the field of Agroindustry and Food Security (hereinafter - "UZAIFSA") of the Republic of Uzbekistan, funded by the International Bank for Reconstruction and Development Loan, Additional Loan of International Bank for Reconstruction and Development (hereinafter -"IBRD Funds") and European Union Trust Fund Grant (hereinafter - "EU TF Grant") that present fairly the financial position of the Project as of 31 December 2018, and the funds received, and expenditures incurred for the year ended 31 December 2018, in compliance with International Public Sector Accounting Standards "Financial Reporting under the Cash Basis of Accounting" (hereinafter - "IPSAS-Cash Basis"). In preparing the Financial Statements, the management of the UZAIFSA is responsible for: * Selecting suitable accounting policies and applying them consistently; * Presenting information, including accounting policies, in a manner that provides relevant, reliable, comparable, and understandable information; * Providing additional disclosures when compliance with the specific requirements in IPSAS-Cash Basis are insufficient to enable users to understand the impact of particular transactions, other events, and conditions on the Project's Special-Purpose Financial Statements. The Management of the UZAIFSA is also responsible for: * Designing, implementing and maintaining an effective and sound system of internal controls, throughout the Project; * Maintaining adequate accounting records that are sufficient to show and explain the Project's transactions and disclose with reasonable accuracy at any time the fund balance of the Project, and which enable them to ensure that the Financial Statements of the Project comply with specific requirements in IPSAS-Cash Basis; * Maintaining statutory accounting records in compliance with legislation of the Republic of Uzbekistan; * Taking such steps as are reasonably available to them to safeguard the assets of the Project; and * Preventing and detecting fraud and other irregularities. The Financial Statements of the Project for the year ended 31 December 2018 were authorized for issue by the UZAIFSA's Management on July 29, 2019. On behalf of the Project's Management: G. Ganiev b va Deputy General Director of Agency Chief Accountant of Project PKF MAK ALYANS LLC Accountants & INDEPENDENT AUDITOR'S REPORT business advisors To the Management of the Agency for Implementation of Projects in the field of Agroindustry and Food Security of Uzbekistan Opinion We have audited the Special-Purpose Financial Statements (hereinafter - "Financial Statements") of "Horticultural Development Project" (hereinafter - "Project") financed from Loan proceed (Loan No. 8393-UZ), additional Loan proceed (Loan No. 8824-UZ) of the International Bank for reconstruction and Development (hereinafter - "IBRD") and Grant proceed (Grant No.TFOA7910) of the European Union Trust Fund Grant which comprise the special-purpose statement of cash receipt and payments for the year ended 31 December 2018, the statement of expenditures (hereinafter - "SOE"), the statement of designated accounts (hereinafter - "DA") and a summary of significant accounting policies and other explanatory notes. The Financial Statements have been prepared by management of the UZAIFSA using the International Public Sector Accounting Standards "Financial Reporting under the Cash Basis of Accounting" (hereinafter - "IPSAS - Cash Basis"). In our opinion, I. The accompanying Special-Purpose Cash Basis Financial Statements, in all material respects, give a true and fair view of the Financial Position of the Project as of 31 December 2018, as well as Sources and Uses of Funds, Designated Accounts movements and its balances for the periods then ended and complies with the conditions of the Loans and Grant Agreements and in accordance with International Public Sector Accounting Standard; II. Moreover, (a) with respect to the SOE for the year ended 31 December 2018 adequate supporting documents, records and accounts have been maintained to support claims to the IBRD for reimbursements of expenditures incurred; and (b) the expenditures included in the withdrawal applications and reimbursed against are eligible for financing under the Agreements. Ill. The Project Designated Accounts Statement for the year ended 31 December 2018 give a true and fair view of the Financial Position of the DA of the Project and of the cash flow for the periods then ended. Basis for Opinion We conducted our audit in accordance with the 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 our report. We are independent of the Project in accordance with the International Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants (IESBA Code) together with the ethical requirements that are relevant to our audit of the Financial Statements in the Republic of Uzbekistan and we have fulfilled our other responsibilities under 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 audit opinion. Responsibilities of Management for the Special-Purpose Financial Statements The Management of the UZAIFSA under the Ministry of Agriculture of the Republic of Uzbekistan ("MA") is responsible for the preparation and fair presentation of these Financial Statements in accordance with the International Public Sector Accounting Standard ("IPSAS"), and for such internal control as management determines is necessary to enable the preparation of Financial Statements those are free from material misstatement, whether due to fraud or error. Tel: +99871 294-73-86 * Fax: +99871 294-73-85 - info@pkf.uz * www.pkf.uz - www.pkf com PKF MAK ALYANS LLC * 22, Aviasozlar street * 1 passage - Tashkent, Uzbekistan - 100016 PKUA lY W .i . i ft.P F1f - - 1I-fHf i, - 1 - - - i HA Auditor's Responsibility for the Audit of the Special-Purpose 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 Project'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 Project'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. * 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 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. Audit Organization "PKF MAK ALYANS LLC" Authorized audit license issued by the Ministry of Finance of the Republic of Uzbekistan under No.00770 dated 05 April 2019. 22, Aviasozlar Street, ls' Passage 100016, Tashkent, Uzbekistan 29 July 2019 I AGENCY FOR IMPLEMENTATION OF PROJECTS IN THE FIELD OF AGROINDUSTRY AND FOOD SECURITY HORTICULTURAL DEVELOPMENT PROJECT SPECIAL-PURPOSE STATEMENT OF CASH RECEIPTS AND PAYMENTS FOR YEAR ENDED DECEMBER 31, 2018 Tabular amounts are presented in US Dollars 31.12. 2018 31.12. 2017 Cumulative Budget' Actual Actual Amount Variance % Opening Fund Balances IBRD Loan - Cash in USD (Loan 8393-UZ) - 5533 3417287 IBRD Loan - Cash in USD (Loan 8824-UZ) - - IBRD Loans - Cash in UZS (USD equivalent) - 1733 10 EU Trust Fund Grant - Cash in EURO (USD equivalent) - - - EU Trust Fund Grant - Cash in EURO (USD equivalent) EU Trust Fund Grant - Cash in UZS (USD equivalent) - Corporate Card No.1 - Cash in UZS (USD equivalent) . 171 - 171 Corporate Card No.2 - Cash in UZS (USD equivalent) 81 - 81 Corporate Card No.3 - Cash in UZS (USD equivalent) 115 - 115 Corporate Card No.4 - Cash in UZS (USD equivalent) 307 - 307 Corporate Card No.5 - Cash in UZS (USD equivalent) 429 - 429 Total -883619103 Sources of Funds: Funds Received 1. IBRD Loan 8393-UZ - Replenishments to Designated Account 150 000 000 5476 127 41381 115 145 516 116 97,01 2 IBRD Loan 8824-UZ - Replenishments to Designated Account 500 000 000 280 589 936 - 280 589 936 56.12 3. EU Trust Fund Grant - Replenishments to Special Account 21 948 810 2 262 999 - 2262999 10.31 TOTAL OF FUNDS RECEIVED 671 948 810 288 329 062 41 381 115 428 369 051 63.75% Uses of Funds: Expenditure Incurred by Category 1. Goods (1 207 600) (7866) - (70 352) 5.83 2. Works and Consulting services including Auditing services & Training (1 476 200) (150 852) (12 187) (171 658) 11.63 3. Investment and Working Capital sub-loans & Lease financing (144 466 200) (5 029 728) (44 507 036) (144 028 407) 99.70 4. Incremental Operating Costs (2475000) (287 681) (271 179) (862 686) 34.86 5. Front-end fee (375 000) - - (375 000) 100.00 Sub-Total IBRD Loan 8393-UZ (150 000 000) (5476 127) (44 790 402) (145 508 103) 97.01% 1. Goods, Works, Consulting & Non-consulting services & Training (20 361 400) - - - 0.00 2. Non- and Consulting services, Training & Incremental Operating Costs (2110870) - - 0.00 3. Investment and Working Capital sub-loans & Lease financing (476 277 730) (260 084 936) - (260 084 936) 54.61 4. Front-end fee (1 250 000) (1 250 000) - (1250 000) 100.00 Sub-Total IBRD Loan 8824-UZ (500 000 000) (261 334 936) - (261 334 936) 52.27% 1,Goods, Works, Non- Consulting & Consulting services, Training & (21 948 810) (80 989) - (80 989) 0.37 Incremental Operating Costs Sub-Total EU Trust Fund Grant TFOA7910 (21 948 810) (80 989) - (80 989) 0.37% TOTAL EXPENDITURE INCURRED 671 948 810 (266 892 052) (44790402) (406 924 028) 60.56% g FX Gain I (Loss) - 1 514 (744) 767 Closing Fund Balances IBRD Loan - Cash in USD (Loan 8393-UZ) - 3981 5533 3981 IBRD Loan - Cash in USD (Loan 8824-UZ) - 19255000 - 19255000 IBRD Loans - Cash in UZS (USD equivalent) - 4088 1733 4088 IBRD Loan - Cash in EURO (Loan 8393-UZ) (USD equivalent) 697 - 697 EU Trust Fund Grant - Cash in EURO (USD equivalent) - 2181278 - 2181278 EU Trust Fund Grant - Cash in EURO (USD equivalent) - - - - EU Trust Fund Grant - Cash in UZS (USD equivalent) - 733 - 733 Corporate Card No.1 - Cash in UZS (USD equivalent) - 172 - 172 Corporate Card No.2 - Cash in UZS (USD equivalent) - 96 - 96 Corporate Card No.3 - Cash in UZS (USD equivalent) - 117 - 117 Corporate Card No.4 - Cash in UZS (USD equivalent) - 58 - 58 Corporate Card N 5 - Cash in UZS (USD equivalent) 674 - 674 Total - 21 446 893 7 266 21 446 893 $igned on behalf of the Project's Management on 29 Jul G. Ganiev G Gubiva Deputy General Director of Agency Chief Accountant of Project 'The budget figures of EU TF Grant are fixed in equivalent of USD based on EURO rate on the date of signing the Grant Agreement. Therefore, the available funds for distribution for future expenditure might be different due to EURO rate changes. Notes on pages 10 to 28 form an integral part of the Special-Purpose Cash Basis Financial Statements. AGENCY FOR IMPLEMENTATION OF PROJECTS IN THE FIELD OF AGROINDUSTRY AND FOOD SECURITY HORTICULTURAL DEVELOPMENT PROJECT SPECIAL-PURPOSE STATEMENT OF FINANCIAL POSITION AS OF DECEMBER 31, 2018 Tabular amounts are presented in US Dollars Items Note 31.12.2018 31.12.2017 ASSETS Cash and cash equivalents (IBRD Loans) 9-12 / 16-20 19264882 7266 Cash and cash equivalents (EU TF Grant) 13,15 2182011 - TOTAL ASSETS 21 446893 7266 OWN FUNDS/FINANCING Financing from IBRD 426 106 052 140 039 989 Other financing (EU TF Grant) 13 2262999 - Less: Cumulative expenditures, net including: (406 923 261) (140 032 723) FX difference 767 (748) I Cumulative Opening Bank Balance Adjusted amount 1 103 TOTAL OWN FUNDS/FINANCING 21446893 7266 Signed on behalf of the Project's Management on 29 July 2019 G. Ganiev G.Gu ieva Deputy General Director of Agency Chief Accountant of Project Notes on pages 10 to 28 form an integral part of the Special-Purpose Cash Basis Financial Statements. AGENCY FOR IMPLEMENTATION OF PROJECTS IN THE FIELD OF AGROINDUSTRY AND FOOD SECURITY HORTICULTURAL DEVELOPMENT PROJECT SPECIAL-PURPOSE STATEMENT OF DETAILED COSTS BY CATEGORY FOR THE YEAR ENDED DECEMBER 31, 2018 Tabular amounts are presented in US Dollars A a Planned I Available Category Budget* Funds 2018 Cumulative Cumulative Cumulative IBRD Loan No.8393-UZ 1. Goods 7866 70362 1207600 1 137248 2. Works and Consulting services including Auditing services & Training 150 852 171 658 1 476 200 1304542 3. Investment and Working Capital sub-loans & Lease financing 5 029 728 144 028 407 144 466 200 437 793 4. Incremental Operating Costs 287681 862686 2475000 1 612314 5. Front-end fee - 375 000 375 000 - Sub-Total 5476127 145508103 150000000 4491897 EU Trust Fund Grant 1.Goods, Works, Non- Consulting & Consulting services, Training & 80989 80989 21 948810 21867821 Incremental Operating Costs Sub-Total 80989 80989 21 948810 21867821 IBRD Loan No.8824-UZ 1. Goods, Works, Consulting & Non-consulting services & Training - - 20361400 20361400 2. Non- and Consulting services, Training & Incremental Operating Costs - - 2 110870 2110870 3. Investment and Working Capital sub-loans & Lease financing 260 084 936 260 084 936 476 277 730 216 192 794 4. Front-end fee 1250000 1250000 1250000 - Sub-Total 261 334936 261334936 500000000 238665064 TOTAL PROJECT FUNDS' EXPENDITURE 266892052 406924028 671 948810 265024782 Signed on behalf of the Project's Management on 29 July 2019 G. Ganiev G Gbieva Deputy General Director of Agency Chief Accountant of Project 'The budget figures of EU TF Grant are fixed in equivalent of USD based on EURO rate on the date of signing the Grant Agreement. Therefore, the available funds for distribution for future expenditure might be different due to EURO rate changes. Notes on pages 10 to 28 form an integral part of the Special-Purpose Cash Basis Financial Statements. AGENCY FOR IMPLEMENTATION OF PROJECTS IN THE FIELD OF AGROINDUSTRY AND FOOD SECURITY HORTICULTURAL DEVELOPMENT PROJECT SPECIAL-PURPOSE STATEMENT OF DETAILED COSTS BY COMPONENTS FOR THE YEAR ENDED DECEMBER 31, 2018 Tabular amounts are presented in US Dollars Planned / Available Actual Budget* Funds L Components 2018 2017 Cumulative Cumulative Cumulative I IBRD Loan No.8393-UZ 1. Agricultural Support Services 150852 12187 546658 1851200 1304542 2. Access to Loans 5029728 44507036 144028407 144466200 437793 3. Project Management 295547 271 179 933038 3682600 2749562 Sub-Total 5476127 44790402 145508103 150000000 4491897 EU Trust Fund Grant l.Agricultural Technical Assistance 80989 - 80989 21 948 810 21867821 Sub-Total 80989 - 80989 21 948 810 21 867 821 IBRD Loan No.8824-UZ 1. Agricultural Support Services - - - 21 611400 21611400 2. Access to Loans 261 334 936 - 261 334 936 476 277 730 214 942 794 3. Project Management - - - 2110870 2 110870 Sub-Total 261 334936 - 261 334936 500000000 238665064 TOTAL PROJECT EXPENDITURE 266 892 052 44790402 406 924 028 671 948 810 265 024 782 Signed on behalf of the Project's Management on 29 July 2019 G. Ganiev G. Gubiva Deputy General Director of Agency Chief Accountant of Project 'The budget figures EU TF Grant are fixed in equivalent of USD based on EURO rate on the date of signing the Grant Agreement. Therefore, the available funds for distribution for future expenditure might be different due to EURO rate changes. Notes on pages 10 to 28 form an integral part of the Special-Purpose Cash Basis Financial Statements. AGENCY FOR IMPLEMENTATION OF PROJECTS IN THE FIELD OF AGROINDUSTRY AND FOOD SECURITY HORTICULTURAL DEVELOPMENT PROJECT NOTES TO SPECIAL-PURPOSE FINANCIAL STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2018 Tabular amounts are presented in US Dollars 1 PROJECT AND ITS OPERATIONS The International Bank for Reconstruction and Development (hereinafter - "IBRD" and/or "Bank") and the Government of the Republic of Uzbekistan (hereinafter - "Government") on April 8, 2015 have signed the Financial Agreement (Loan No.8393- UZ) for lending to the Republic of Uzbekistan (hereinafter - "Financial Agreement") in the amount of US Dollars 150,0 Million for implementation of the "Horticultural Development Project" (hereinafter - "the Project") on the terms and conditions stipulated in the Financial Agreement, for the purpose of co-financing the Project with the repayment term of 25 years, including 5 years of grace period. The period of implementation of the Project is from 2015 to June 30, 2021. On May 17, 2018 the IBRD and the Government have signed the additional Financial Agreement (Loan No.8824-UZ) and have received the additional financing from the IBRD in the amount of US Dollars 500,0 Million for the implementation of the "Horticulture Development Project". The closing date of the Loan is 30 June 2023. Furthermore, on September 7, 2018 in order to implement and finance the Component No.1 namely "Agricultural Technical Assistance" of the Project, the IBRD and the Government have signed the European Union Grant Agreement to attract the Trust Fund Grant proceeds of the European (EU TF Grant No.TFOA7910) in the amount of EURO 19,5 Million. The closing date of the Grant is December 31, 2020. According to the Uzbekistan's Presidential Decree PP No.2410 dated September 21, 2015 the Ministry of Agriculture was designated as an Executing Agency and responsible for the target and effective use of loan proceeds. During FY 2018, the Rural Restructuring Agency (RRA) was renamed as the "Agency for implementation of Projects in the field of Agroindustry and Food Security" ("the UZAIFSA") and the UZAIFSA is responsible for the steering, implementation coordinating and managing the Project. The participating Commercial Banks are responsible for the credit management, timely disbursement and eligible use of IBRD's funds, monitoring and reporting on the sub-project implementation progress. Accordingly, the new Uzbekistan's Presidential Decree under the PP No.3790 was issued on June 20, 2018. To ensure the coordination of works under the Project, the Agency has established the Project Implementation Unit (hereinafter - "the PIU") which is responsible for the overall Project management, control and accounting of the Project funds in compliance with the Bank guidelines and relevant National regulatory requirements. The main objective of the Project is to increase the productivity and profitability of fruit and vegetable sector, modernization of research capacity in the field of plant breeding, seed production and plant protection, the introduction of international standards of product quality. Summary of the updating "Horticulture Development Project" The main objective of the Project is to increase the productivity and profitability of the horticulture sector, modernize the scientific research potential in the field of cultivation, seed production and plant protection, and the introduction of international quality standards. This should be achieved through the introduction of three integrated components, namely (i) Agricultural Support Services; (ii) Access to Credit; and (iii) Project Management. The Project would be implemented in the period from 2015 to 2023. Component 1: Agriculture support services Institutional Support Services: (a) Strengthening the capacity of Participating Research Institutes to conduct research and genetic material multiplication activities through, inter alia: (i) the improvement of their laboratory facilities; (ii) the provision of Training to their staff on the horticultural sector value chain development; (iii) the development of pest surveillance maps of horticulture crops; and (iv) the creation of a seed storage facility for the Research Institute for Vegetables, Melons and Potatoes. (b) Improving food production and handling practices through, inter alia: (i) the carrying out of comparative studies between existing domestic regulations and international standards on food safety; (ii) the development of manuals for quality U1 f) AGENCY FOR IMPLEMENTATION OF PROJECTS IN THE FIELD OF AGROINDUSTRY AND FOOD SECURITY HORTICULTURAL DEVELOPMENT PROJECT NOTES TO SPECIAL-PURPOSE FINANCIAL STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2018 Tabular amounts are presented in US Dollars management and package requirements; and (iii) the provision of support for gathering and dissemination of information about private-sector standards for food safety and quality in in destination markets. Market-led agricultural technology transfer (a) (i) Establishing a knowledge management and market information system aimed to collect, organize, analyze and disseminate data on horticulture value chain development; and (ii) carrying out market studies. (b) Carrying out of open-field demonstration activities and training for Beneficiaries on, inter alia, greenhouse vegetables and potatoes, fruits and berries production techniques, post-harvesting handling and storage methods. (c) Developing the value chain through, inter alia: (i) the creation of partnerships between producers, processors and traders; (ii) the establishment of a promotional association for fruits and vegetables; (iii) the provision of support to producer participation in national and international trade events; Component 2: Access to Loans (a) Provision through selected PFIs of Investment Working Capital Sub-Loans and Lease Financings to Beneficiaries. (b) Provision of technical assistance and Training to PFIs to increase their capacity in managing a range of innovatively structured finance products that support, inter alia, the development of value chains. Component 3: Project Management Provision of goods, technical assistance and Training to UZAIFSA for the implementation of the Project (including the areas of financial management, procurement, disbursement, monitoring and evaluation) and financing of Incremental Operating Costs. Under this component, it has envisaged the procurement of cars, office equipment, works and consulting services. Summary of EU TF Grant EU TF Grant is to be directed to finance following activities of the Agriculture support services component: (i) To modernize and strengthen the material and technical base of scientific research institutes, and plant protection services, by providing the central and regional laboratories of institutions necessary laboratory equipment to improve the quality of soil analysis, detection and control of agricultural pests and diseases, and quarantine objects; (ii) Create demonstration sites for the cultivation of fruit and vegetable crops, demonstration of modern water and energy saving technologies, the selection of high-yielding and adapted to soil and climatic conditions of project areas of seeds and seedlings, the demonstration of modern methods of storage, sorting, processing, packaging and export of fruit and vegetables produced, for farmers and agricultural firms. AGENCY FOR IMPLEMENTATION OF PROJECTS IN THE FIELD OF AGROINDUSTRY AND FOOD SECURITY HORTICULTURAL DEVELOPMENT PROJECT NOTES TO SPECIAL-PURPOSE FINANCIAL STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2018 Tabular amounts are presented in US Dollars 2 SIGNIFICANT ACCOUNTING POLICIES Basis of preparation These special-purpose Financial Statements have been prepared in accordance with the International Public Sector Accounting Standard (IPSAS) "Financial Reporting under the Cash Basis of Accounting" promulgated by the International Federation of Accountants (IFAC). Those standards require that cash receipts shall be effective when received and expenditures of funds shall be effective when they are paid rather than when incurred. The Financial Statements prepared under the cash basis provide readers with information about the sources of cash raised during the period, the purpose for which cash was used and the cash balances at the reporting date. The measurement focus in the financial statements is balances of cash and changes therein. The Project's special- purpose cash basis Financial Statements are prepared on the basis of cash receipts and disbursements which are a comprehensive basis of accounting. Cash and cash equivalents Cash and cash equivalents are recognized at cost and include cash at cash desk, cash at Designated and Special accounts at domestic banks and cash in transit. During FY 2018 into Designated bank accounts of the Project at the JSCB "UzPromStroyBank" were financed with the amount of USD 5 476 126.75 by the IBRD's Loan No.8393-UZ and the amounting to USD 280 589 935.87 (including front- end fee of USD 1250 000) by the IBRD's Loan No.8824-UZ. The EU TF Grant disbursements equaled to EURO 2 000 000 (including Intermediary Bank commission held of Euro 20) were made during the reporting period into the Designated bank account of the Project at the JSCB "Asaka Bank". Fixed Assets Fixed assets procured by the Project with the purposes of effective achievement of Project objectives are entered to the Cost Records right after being received. Financing The financing for the Designated Accounts is recognized when funds are transferred from IBRD Loan accounts and EU Trust Fund Grant account to the Project's Designated Accounts which are opened at the Tashkent City Regional Branch (TCRB) of the JSCB "UzPromStroyBank" (in short - "UZPSB") and Tashkent City Branch (TCB) of the Asaka Bank of the Republic of Uzbekistan in Tashkent city accordingly. The Government financing is recognized when payments of taxes and contributions are made from account of the Treasury of the Ministry of Finance of the Republic of Uzbekistan on the basis of Project's request. Project expenditure The Project's special-purpose cash basis Financial Statements are prepared based upon the accounting records of the PIU, which are maintained in both USD and UZS. The initial accounting records consist of summaries of disbursement documents and other payment vouchers. Accounting of the PIU, within the UZAIFSA, is conducted in accordance with the applicable laws of the Republic of Uzbekistan with the specific implementation of the Project, including applying cash method. The policy management programs also include preparation of detailed of cost report on a cash basis in accordance with International Accounting Standards for the Public Sector. The accounting is carried out using the Accounting software 1C. AGENCY FOR IMPLEMENTATION OF PROJECTS IN THE FIELD OF AGROINDUSTRY AND FOOD SECURITY HORTICULTURAL DEVELOPMENT PROJECT NOTES TO SPECIAL-PURPOSE FINANCIAL STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2018 Tabular amounts are presented in US Dollars In accounting, the following operations are used: - Taking into account the actual costs; - Accounting of cash transactions; - Accounting of fixed assets; - Accounting of stocks; - Accounting of remuneration; - Settlements with debtors and creditors; - Reporting. The Financial Management of the Project is carried out by the following tasks: 1) Analysis of the performance costs; 2) Analysis of cash expenses and for transfers; 3) Analysis of financial condition; 4) An analysis of budget execution. An analytical account of the amounts received by the Project of funding is separate from the breakdown of the total amount financed by categories of expenditure. At the end of each month / quarter are counted up all the items of expenditure for the quarter and total year to-date, in order to identify the remainder and in a similar way to keep records of cash expenditure for transfers. Foreign currency translation (i) Functional and Presentation currencies The functional currency of the Project is the currency of the primary economic environment in which it operates. The Project's functional currency is Uzbek Soums ("UZS"), as the major portion of its transactions are in UZS. These special-purpose Financial Statements of the Project are also presented in the presentation currency of US Dollars ("USD") as this is convenient for the readers of the financial statements. (ii) Transactions and Balances The assets' additions and expenditure paid for in UZS were translated into USD/EUR to USD using the following principles of transaction: * Monetary assets denominated in UZS have been translated into USD using the exchange rate of the Central Bank of Uzbekistan ("CBU") on the date of operation; * All revenues earned and expenditure incurred in UZS denominated into USD were recorded by the exchange rate of CBU, effective at the date of operation; * Gain/Loss resulting from the transaction of UZS into USD/EURO to USD: Cash & cash equivalents outstanding as at reporting date are translated into USD; and the cross-rate of EUR to USD by using the official rate of the CBU, effective at the reporting date. The official exchange rate set by the CBU and effective, as at December 31, 2018: UZS 8,339.55 to USD 1 (2017: UZS 8,120.07 to USD 1; 2016: UZS 3.231.48 to USD 1) and, as at December 31, 2018: UZS 9,479.57 to EURO 1 and the cross- rate of EURO to USD was at 1.1321. At present, the UZS is not a convertible currency outside Uzbekistan. Bank Accounts of the Project During the period from January 01, 2018 to December 31, 2018, the PIU held the Designated Accounts for IBRD Loan accounts in USD and in Euro at the bank named TCRB JSCB "UZPSB", and for EU TF Grant Special Accounts in Euro at the bank named TCB "Asaka Bank". In addition, the UZS Special Accounts and other accounts for IBRD Loan and EU TF Grant funds opened at the above said banks accordingly. AGENCY FOR IMPLEMENTATION OF PROJECTS IN THE FIELD OF AGROINDUSTRY AND FOOD SECURITY HORTICULTURAL DEVELOPMENT PROJECT NOTES TO SPECIAL-PURPOSE FINANCIAL STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2018 Tabular amounts are presented in US Dollars The USD Loans and EU TF Grant's Euro Designated Accounts represent revolving the funds provided from the IBRD and EU TF Grant accordingly to facilitate prompt disbursement of funds to implement the Project. The USD and EURO Designated Accounts are used to cover the IBRD's share of eligible expenditures, in both, local and foreign currencies. The eligible expenditures are reported to the IBRD and EU Trust Fund Grant through the Expenditure Reports/Statement of Expenditure (SOE). The USD Designated Account is replenished by the IBRD and EU Trust Fund Grant Account on the basis of request, prepared by the PIU for validation of USD and Euro Designated Account. The same procedures occur with the funds of EU TF Grant EURO account at the TCB "Asaka Bank". The UZS Special Accounts were opened to convert the funds received into USD Designated Account and EURO Grant proceeds from IBRD and EU TF Grant for payments to suppliers and withdrawal of cash. Cash & cash equivalents outstanding as at reporting date are translated into USD at the official rate of the CBU effective at the reporting date. As at 31 December 2018 official rate of CBU RUz. set at UZS 8,339.55 per USD1 and UZS 9,479.57 per EURO1. The outstanding balances of the above accounts as at December 31, 2018 are disclosed in Note 8. 3 ADJUSTMENTS OF OPENING BANK BALANCES The Corporate cards' closing cash balances at the operating bank are missed to report (which are opened from the beginning of the Project) as at December 31, 2017. Accordingly, during the audit, we were presented the bank statements with the opening balances of the 5 (five) Corporate cards totaling to USD 1 103 which belong to the IBRD Loan No.8393-UZ funds. Furthermore, the special-purpose financial statements of the previous reporting period of the Project were adjusted in terms of IBRD Loan No.8393-UZ funds at of December 31, 2017. The adjustment is presented in the following table below: Items Closing balance Corrections Opening balance I For FY 2017 Accumulative made For FY 2018 Accumulative Opening Bank Balances Corporate Cards cash balance - 1103 1 103 1 103 4 TAXATION The PIU, being the state non-commercial organization, acting on a basis of Charter, is exempted from taxes and levies in line with the Tax Code of the Republic of Uzbekistan. The Decree of the President's of the Republic of Uzbekistan No. PP-2410 dated September 21, 2015 states that the goods, works and services purchased with the IBRD funds within the framework of the Project, are exempted from customs payments, VAT, mandatory contributions to the state funds-in-trust. The same policy is applied with respect to goods, works and services purchased with the Government Funds. Such exemption is considered as a contribution of the Uzbek Government toward the implementation of the Project. 5 SUBSEQUENT EVENTS There are no events after the end of the reporting period, which would require adjustment to or disclosure in these financial statements. 6 APPROVAL OF SPECIAL-PURPOSE FINANCIAL STATEMENTS The special-purpose financial statements were approved by the Management of the Project for issue on 29 July 2019. AGENCY FOR IMPLEMENTATION OF PROJECTS IN THE FIELD OF AGROINDUSTRY AND FOOD SECURITY HORTICULTURAL DEVELOPMENT PROJECT NOTES TO SPECIAL-PURPOSE FINANCIAL STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2018 Tabular amounts are presented in US Dollars 8 Statements of Cash Balances of the Project 8.1. The Project had the following Cash Balances as at December 31, 2018 at TCRB JSCB "UZPSB": Source of funds Currency Note Account Amount in USD IBRD Loan No.8393-UZ USD 9 Special account 3 980.64 IBRD Loan No.8824-UZ USD 10 Special account 19 255 000.00 IBRD Loan EURO 11 Current account 696.80 IBRD Loans UZS 12 Current account 4 087.75 Corporate Card No.1 UZS 16 Corporate card 171.66 Corporate Card No.2 UZS 17 Corporate card 95.51 Corporate Card No.3 UZS 18 Corporate card 117.03 Corporate Card No.4 UZS 19 Corporate card 58.35 Corporate Card No.5 UZS 20 Corporate card 674.09 Total 19 264 881.83 8.2. The Project had the following Cash Balances as at December 31, 2018 at TCB "ASAKA Bank": Source of funds Currency Note Account Amount in USD EU TF Grant EURO 13 Special account 2 181 277.72 EU TF Grant USD 14 Grant account - EU TF Grant UZS 15 Grant account 733.12 Total 2182010.84 AGENCY FOR IMPLEMENTATION OF PROJECTS IN THE FIELD OF AGROINDUSTRY AND FOOD SECURITY HORTICULTURAL DEVELOPMENT PROJECT NOTES TO SPECIAL-PURPOSE STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2018 Tabular amounts are presented in US Dollars 9 Statement of USD Special Account Account No. 20210 840 4039 6563 7001 Depository Bank: TCRB JSCB "UZPSB" Address: Mustaqillik Main Street, 5, Tashkent 100000 Related Loan No. 8393-UZ (IBRD) Currency: US Dollars (USD) USD Opening Balance as at 01 January 2018 5 533 Cash Inflow: IBRD Replenishments 5476127 Return of surplus of business trip expenses 67 Cash Outflow: Transfer into Special UZS Account (483 505) Business trip expenses (1 650) Transfer into Euro Current account (1987) Sub-projects financing (4 990 604) Closing Balance as at 31 December 2018 3981 G. Ganiev .Gu ieva Deputy General Director of Agency Chief Accountant of Project AGENCY FOR IMPLEMENTATION OF PROJECTS IN THE FIELD OF AGROINDUSTRY AND FOOD SECURITY HORTICULTURAL DEVELOPMENT PROJECT NOTES TO SPECIAL-PURPOSE STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2018 Tabular amounts are presented in US Dollars 10 Statement of USD Special Account Account No. 22626 840 0039 6563 7002 Depository Bank: TCRB JSCB "UZPSB" Address: Mustaqillik Main Street, 5, Tashkent 100000 Related Loan No. 8824-UZ (IBRD) Currency: US Dollars (USD) USD Opening Balance as at 01 January 2018 Cash Inflow: IBRD Replenishments 279 339 936 Cash Outflow: Sub-projects financing (260 084 936) Closing Balance as at 31 December 2018 19255000 G. Ganiev va Deputy General Director of Agency Chief Accountant of Project AGENCY FOR IMPLEMENTATION OF PROJECTS IN THE FIELD OF AGROINDUSTRY AND FOOD SECURITY HORTICULTURAL DEVELOPMENT PROJECT NOTES TO SPECIAL-PURPOSE STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2018 Tabular amounts are presented in US Dollars 11 Statement of EURO Current Account Account No. 22696 978 3039 6563 7001 Depository Bank: TCRB JSCB "UZPSB" Address: Mustaqillik Main Street, 5, Tashkent 100000 Related Loan No. 8393-UZ (IBRD) Currency: EURO Euro USD Equivalent Opening Balance as at 01 January 2018 Cash Inflow: Transfer from Special USD Account 1740 1987 Cash Outflow: Financing eligible expenditure (business trips) (1 127) (1 290) Closing Balance as at 31 December 2018 613 697 I I I I I AGENCY FOR IMPLEMENTATION OF PROJECTS IN THE FIELD OF AGROINDUSTRY AND FOOD SECURITY HORTICULTURAL DEVELOPMENT PROJECT NOTES TO SPECIAL-PURPOSE FINANCIAL STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2018 Tabular amounts are presented in US Dollars 12 Statement of UZS Special Account Account No. 20210 000 9039 6563 7033 Depository Bank: TCRB JSCB "UZPSB" Address: Mustaqillik Main Street, 5, Tashkent 100000 Related Loan No. 8393 / 8824 - UZ (IBRD) Currency: Uzbek Soums (UZS) UZS USD Equivalent Opening Balance as at 01 January 2018 14069316 1733 Cash Inflow: Transfer from USD Special Loan Account 3917821 180 483505 Transfer from UZS account 230188098 29251 FX Gain - 48 Cash Outflow: Financing of eligible expenditure (3 576 857 945) (441 122) Transfers into Corporate Cards (237 130 690) (29 990) Sub-projects financing (314 000 000) (39 337) Closing Balance as at 31 December 2018 34089959 4088 AGENCY FOR IMPLEMENTATION OF PROJECTS IN THE FIELD OF AGROINDUSTRY AND FOOD SECURITY HORTICULTURAL DEVELOPMENT PROJECT NOTES TO SPECIAL-PURPOSE FINANCIAL STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2018 Tabular amounts are presented in US Dollars 13 Statement of EURO Special Grant Account Account No. 22696 978 3039 6563 7007 Depository Bank: TCB "Asaka Bank" Address: Nukus Street, 67, Tashkent 100015 Related Grant No. EU TF Grant TFOA7910 Currency: EURO Euro USD Equivalent Opening Balance as at 01 January 2018 Cash Inflow: EU Trust Fund Replenishment 2 000 000 2 262 999 Cash Outflow: Financing eligible expenditure (69 198) (78 250) Transfer into UZS Special Account (3 000) (3 449) Intermediary bank commission held (20) (23) Closing Balance as at 31 December 2018 1 927 782 2 181 278 G. Ganiev G. G ieva Deputy General Director of Agency Chief Accountant of Project AGENCY FOR IMPLEMENTATION OF PROJECTS IN THE FIELD OF AGROINDUSTRY AND FOOD SECURITY HORTICULTURAL DEVELOPMENT PROJECT NOTES TO SPECIAL-PURPOSE FINANCIAL STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2018 Tabular amounts are presented in US Dollars I I 14 Statement of USD Grant Account Account No. 22696 840 3039 6563 7012 Depository Bank: TCB "Asaka Bank" Address: Nukus Street, 67, Tashkent 100015 Related Grant No. EU TF Grant TFOA7910 I Currency: US Dollars (USD) 3 USD Opening Balance as at 01 January 2018 Cash Inflow: Transfer from USD Designated Grant Account 78 250 Cash Outflow: Financing of eligible expenditure (78 250) Closing Balance as at 31 December 2018 I 3 I I I I AGENCY FOR IMPLEMENTATION OF PROJECTS IN THE FIELD OF AGROINDUSTRY AND FOOD SECURITY HORTICULTURAL DEVELOPMENT PROJECT NOTES TO SPECIAL-PURPOSE FINANCIAL STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2018 Tabular amounts are presented in US Dollars 15 Statement of UZS Grant Account Account No. 22696 000 7039 6563 7004 Depository Bank: TCB "Asaka Bank" Address: Nukus Street, 67, Tashkent 100015 Related Grant No. EU TF Grant TFOA7910 Currency: Uzbek Soums (UZS) UZS USD Equivalent Opening Balance as at 01 January 2018 3596 0.44 Cash Inflow: Transfer from EURO Special Grant Account 28680000 3449 Cash Outflow: Financing of eligible expenditure (22 569 724) (2 707) FX Loss - (9) Closing Balance as at 31 December 2018 6113872 733 I AGENCY FOR IMPLEMENTATION OF PROJECTS IN THE FIELD OF AGROINDUSTRY AND FOOD SECURITY HORTICULTURAL DEVELOPMENT PROJECT I NOTES TO SPECIAL-PURPOSE FINANCIAL STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2018 Tabular amounts are presented in US Dollars I 16 Statement of UZS Corporate Card No. 1 I Account No. 22620 000 5039 6563 7010 Depository Bank: HO JSCB "Ipak Yuli Bank" Address: Kadiriy Street, 2A, Tashkent 100017 Related Loan No. 8393-UZ (IBRD) Currency: Uzbek Soums (UZS) L UZS USD Equivalent Opening Balance as at 01 January 2018 1 391 568 171 I Cash Inflow: Transfer from UZS Special Account 20 478 400 2537 I Cash Outflow: Financing eligible expenditure (20 438 372) (2 534) FX Loss - (3) I Closing Balance as at 31 December 2018 1 431 596 172 17 Statement of UZS Corporate Card No. 2 Account No. 22620 000 6039 6563 7011 Depository Bank: HO JSCB "Ipak Yuli Bank" Address: Kadiriy Street, 2A, Tashkent 100017 Related Loan No. 8393-UZ (IBRD) Currency: Uzbek Soums (UZS) I UZS USD Equivalent Opening Balance as at 01 January 2018 657485 81 Cash Inflow: Transfer from UZS Special Account 9593000 1 188 Cash Outflow: Financing eligible expenditure (9453994) (1 172) FX Loss - (1) Closing Balance as at 31 December 2018 796491 96 AGENCY FOR IMPLEMENTATION OF PROJECTS IN THE FIELD OF AGROINDUSTRY AND FOOD SECURITY HORTICULTURAL DEVELOPMENT PROJECT NOTES TO SPECIAL-PURPOSE FINANCIAL STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2018 Tabular amounts are presented in US Dollars 18 Statement of UZS Corporate Card No. 3 Account No. 22620 000 7039 6563 7012 Depository Bank: HO JSCB "pak Yuli Bank" Address: Kadiriy Street, 2A, Tashkent 100017 Related Loan No. 8393-UZ (IBRD) Currency: Uzbek Soums (UZS) UZS USD Equivalent Opening Balance as at 01 January 2018 927270 114 Cash Inflow: Transfer from UZS Special Account 14689700 1820 Cash Outflow: Financing eligible expenditure (14640969) (1817) FX Loss - (1) Closing Balance as at 31 December 2018 976001 117 19 Statement of UZS Corporate Card No. 4 Account No. 22620 000 1039 6563 7017 Depository Bank: HO JSCB "Ipak Yuli Bank" Address: Kadiriy Street, 2A, Tashkent 100017 Related Loan No. 8393-UZ (IBRD) Currency: Uzbek Soums (UZS) UZS USD Equivalent Opening Balance as at 01 January 2018 2492314 307 Cash Inflow: Transfer from UZS Special Account 20655731 2557 Cash Outflow: Financing eligible expenditure (22661461) (2775) FX Loss - (30) Closing Balance as at 31 December 2018 486 654 58 AGENCY FOR IMPLEMENTATION OF PROJECTS IN THE FIELD OF AGROINDUSTRY AND FOOD SECURITY HORTICULTURAL DEVELOPMENT PROJECT NOTES TO SPECIAL-PURPOSE FINANCIAL STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2018 Tabular amounts are presented in US Dollars 20 Statement of UZS Corporate Card No. 5 Account No. 22620 000 1039 6563 7018 Depository Bank: HO JSCB "Ipak Yuli Bank" Address: Kadiriy Street, 2A, Tashkent 100017 Related Loan No. 8393-UZ (IBRD) Currency: Uzbek Soums (UZS) UZS USD Equivalent Opening Balance as at 01 January 2018 3481 696 429 Cash Inflow: Transfer from UZS Special Account 171713859 21 888 Cash Outflow: Financing eligible expenditure (169 573 925) (21 544) FX Loss - (99) Closing Balance as at 31 December 2018 5621 630 674 I AGENCY FOR IMPLEMENTATION OF PROJECTS IN THE FIELD OF AGROINDUSTRY AND FOOD SECURITY HORTICULTURAL DEVELOPMENT PROJECT NOTES TO SPECIAL-PURPOSE FINANCIAL STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2018 Tabular amounts are presented in US Dollars 21 STATEMENT OF EXPENDITURE (INCLUDING RECONCILIATION) FOR THE YEAR ENDED DECEMBER 31, 2018 21.1. STATEMENT OF EXPENDITURE - IBRD Loan No.8393-UZ WDA Used from Category 2 Category 3 Category 4 Total Expenditure Desned aou number Designated account 70* - 2866 078.00 7 225.39 2 873 303.39 2873303.39 71** - 2 107999.81 10815.68 2 118815.49 2118815.49 72*** - 175922.00 - 175922.00 175922.00 73 80 366.61 4463 000.00 57 002.66 4 600 369.27 137 369.27 74 3 924.26 390 805.92 70343.52 465 073.70 70343.52 75 26 182.41 - 74 190.67 100 373.08 100 373.08 Total 110 473.28 10 003 805.73 219 577.92 10 333 856.93 5476 126.75 (*) Note: WDA No.70 was issued with regard to the PIU expenses for the period from 01 December 2017 to 15 December 2017. (**) Note: WDA No.71 was issued with regard to the PIU expenses for the period from 16 December 2017 to 29 December 2017. (***) Note: WDA No.72 was issued with regard to the P/U expenses for the period from 30 December 2017 to 11 January 2018. Reconciliation of financing made through Designated Account - IBRD Loan 8393-UZ in FY 2018 Expenditure claimed Expenditure per SOE incurred and financed from DA by IBRD for period 01.12.2017 -15.12.2017 2 873 303.39 Expenditure per SOE incurred and financed from DA by IBRD for period 16.02.2017- 29.12.2017 2 118 815.49 Expenditure per SOE incurred and financed from DA by IBRD for period 30.12.2017- 11.01.2018 175922.00 Expenditure per SOE incurred and financed from DA by IBRD for period 01.01.2018- 31.03.2018 137369.27 Expenditure per SOE incurred and financed from DA by IBRD for period 01.04.2018- 30.06.2018 70343.52 Expenditure per SOE incurred and financed from DA by IBRD for period 01.07.2018- 30.09.2018 100 373.08 Total financing made through Designated Account 5476126.75 21.2. STATEMENT OF EXPENDITURE - IBRD Loan No.8824-UZ WDA number Category 3 Total Expenditure Liquidated from Designated account 03 7731 000 7731 000 7731 000 04 13504 120 13504 120 13504 120 05 1 924 000 1 924 000 1 924 000 06 4 532 000 4 532 000 4 532 000 07 7 623 800 7 623 800 7 623 800 08 5 529 000 5 529 000 5 529 000 09 6 847 200 6 847 200 6 847 200 10 14966566 14966566 14966566 11 12 777 283,87 12 777 283,87 12 777 283,87 12 10494031 10494031 10494031 13 5554000 5554000 5554000 14 7243600 7243600 7243600 15 18989 161 18989 161 18989161 16 9849395 9849395 9849395 17 2520000 2520000 2520000 18 3259800 3259800 3259800 19 11322400 11322400 11322400 20 11709948 11709948 11709948 AGENCY FOR IMPLEMENTATION OF PROJECTS IN THE FIELD OF AGROINDUSTRY AND FOOD SECURITY HORTICULTURAL DEVELOPMENT PROJECT NOTES TO SPECIAL-PURPOSE FINANCIAL STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2018 Tabular amounts are presented in US Dollars Continuation 21 3672000 3672000 3 672 000 22 6130473 6130473 6 130473 23 9 346 880 9 346 880 9346 880 24 2 105600 2 105600 2105600 25 9138784 9 138784 9138784 26 6603 140 6603140 6603140 27 2050000 2050000 2050000 28 1 140000 1 140000 1 140000 29 4120000 4120000 4 120000 30 8736400 8736400 8736400 31 5000000 5000000 5000000 32 9891718 9891718 9891718 33 1 149600 1 149600 1 149600 34 2000000 2000000 2000000 35 10658000 10658000 10658000 36 1 400 000 1 400 000 1 400 000 37 4930536 4930536 4930536 38 1 000 000 1000 000 1000000 39 8 540 200 8 540 200 8540200 40 5 349 300 5 349 300 5 349 300 Total 259 339 935.87 259 339 935.87 260 084 935.87 (1) Note: WDA No, 01 was issued with regard to the payment of the P/U's Front-end fee amounting to USD 1 250 000. (2) Note: WDA No.2 was issued by P/U to claim the Initial Advance payment amounting USD 20 000 000. (3) Note: WDA No.41 was issued on 19 January 2019 with regard to the payment of the P/U expenses amounting to USD 3 410 000 for the period from 27 December 2018 to 18 January 2019 under the Category 3 "Investment and Working Capital Sub-loans and Leases financing", the expenses amounting to USD 745 000 related to FY 2018 expenditure.. Reconciliation of financing made through Designated Account - IBRD Loan No.8824-UZ in FY 2018 Expenditure claimed: Expenditure incurred per SOEs No. from 03 to 40 and financed from DA by IBRD for the period from 19.07.2018 to 24.12.2018 259 339 935.87 Add: Expenditure per SOE 41 not claimed by PlU as at 31.12.2018 745 000.00 Total financing made through Designated Account 260 084 935.87 AGENCY FOR IMPLEMENTATION OF PROJECTS IN THE FIELD OF AGROINDUSTRY AND FOOD SECURITY HORTICULTURAL DEVELOPMENT PROJECT NOTES TO SPECIAL-PURPOSE FINANCIAL STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2018 Tabular amounts are presented in US Dollars 23 Credit Line Sub-lending agreements were signed with number of Uzbek Commercial Banks (hereinafter - Participating Financial Intermediaries or PFIs) in line with the terms and provisions of the Financing Agreements No.8393 - UZ and No. 8824 - UZ in order to facilitate implementation of the "Access to Loans" Component of the Project. During FY 2018, the Project has provided the sub-project financing to the following PFIs under above sub-lending agreements: Loans No.8393 - UZ in USD: No. Commercial Banks Loan amount 1 Joint-Stock Commercial Bank "TURON" 3933682.24 2 Joint-Stock Commercial Bank "QISHLOQ QURILISH" 793 000.00 3 Joint-Stock Commercial Bank "IPAK YULI" 175 922.00 4 Joint-Stock Commercial Bank "HAMKOR" 88 000.00 TOTAL 4990604.24 Loans No.8393 - UZ in UZS: No. Commercial Banks Loan amount in UZS Loan amount in USD Equivalent 1 Joint-Stock Commercial Bank "HAMKOR" 134 000 000 39 123.68 TOTAL 134 000 000 39123.68 Loans No.8824 - UZ in USD: No. Commercial Banks Loan amount 1 Joint-Stock Commercial Bank "ASAKA" 84 882 488.00 2 National Bank of Uzbekistan for Foreign Economic Activities (NBU) 53 855 543.87 3 Joint-Stock Commercial Bank "UZPROMSTROY" 33 107 010.00 4 Joint-Stock Commercial Bank "TURON" 19 806 886.00 5 Joint-Stock Commercial Bank "HALK" 18 829 980.00 6 Joint-Stock Commercial Bank "QISHLOQ QURILISH" 17 090 366.00 7 Joint-Stock Commercial Bank "IPOTEKA" 13 140 789.00 8 Joint-Stock Commercial Bank "ALOQA" 10 000 000.00 9 Joint-Stock Commercial Bank "IPAK YULI" 4849473.00 10 Joint-Stock Commercial Bank "ASIA ALLIANCE" 4 522 400.00 TOTAL 260 084 935.87