“Private Sector Competitiveness Project” Grant No. H771-TJ The project financial statements for the year ended December 31, 2018 and independent auditors’ report “PRIVATE SECTOR COMPETITIVENESS PROJECT” GRANT NO. H771-TJ TABLE OF CONTENTS Page STATEMENT OF MANAGEMENT’S RESPONSIBILITIES FOR THE PREPARATION AND APPROVAL OF THE PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018 2 INDEPENDENT AUDITORS’ REPORT 3-5 THE PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018: Summary of funds received and expenditures paid 6 Summary of expenditures paid by project components 7 Notes to the project financial statements 8-14 STATEMENT оF MANAGEMENT,S RESPoNSlBlLlTlES FoR тнЕ PREPARATIoN APPROVAL ОF ТНЕ PROJECT FINANCIAL STATEMENTS FОR ТНЕ YEAR AND ENDED DECEMBER 31,2018 The following statement, which should Ье rеаd in conjunction with the independent auditors' responsibilities is made with а view to distinguish the respective rеsропЪiЬilitiеs bf ,"n"g"rent апО tйЬsе of the independent auditors in rеlаtiоп to the project financial statements of the Ргоjесt "Private Sесtоr Competitiveness Project'', Gгапt No. Н771-ТJ (the "Project''). Management is responsible fоr the рrерагаtiоп of the project financial statements that рrеsепt fаirlу, in all material respects, the summary of funds received and'expenditures paid and the Summary of expendituгes paid Ьу ргоjесt compone.nts foT the уеаr ended DесеmЬег 31 , 2018 iп ассоrdапсе with lnternational Public Sесtог Accounting Standard "Financial Rерогtiпg Uпdег the iash Basis of Accounting'' (the ''lРSДS'') issued ЬУ the lПtеrПаtiОПаl Pub]ic Accounting Stапdаrdi Воаrd of the lпtеrпаtiопаl Fеdеrаtiоп of дссочпtапts and tl-re Wor|d Bank's Financial МапаgеmеПГSесtоr Board's "Guidelines: Аппчаl Financial Rерогtiпg and Дuditiпg fог World Вапk Financed Activities'' (the ''WB Guidelines''). In ргераriпg the project financial statements, management is геsропsiьlе fоr: . Selecting suitable accounting policies and applying them consistently; . making judgments and estimates that аrе reasonjble and О рrudепt; stating whеthеr lPSAS and WB Guidelines have Ьееп followed, subject to апу mаtеriаl dерагturеs disclosed and explained in the project financial statements; and , рrераriпg the project financial statements оп а going сопсеrп basis, unless it is iпаррrорriаtе to presume that the Рrоjесt will continue its activity fоr the fоrеsБеаьlе futчге. Management is also rеsропsiЬlе fоr: , designing, implementing and maintaining effective апd sound system of iпtеrпаl сопtгоl and fоr revealing risks iп system of iпtеrпаl сопtrоl; ..] о maintaining рrореr accounting rесоrds that disclose, with rеаsопаьlе ассчгасу at апу time, the financial position of the Project, and which enable them to епsurе that the project tiпапЪlаt statements comply with lPSAS and WB Guidelines; , compliance with laws and regulations of the Republic of Tajikistan, accounting system of the Рrоjесt and the rеqчirеmепts of the Wоrld Bank; ' о taking such stePs aS аrе rеаsопаЬlу available to them to safeguard the assets of the рrоjесt; and detecting and preventing fraud, mistakes and оthеr irrеgчlаritiеs, The РrОjеСt financial sлtаtеmепts fоr the уеаr ended Dесеmьеr з1, 2018 wеrе аррrочеd and authorized fоr issue on Мау 10, 2019 Ьу the management of the Ргоjесt. Оп behalf of the Мапаgещепt ,,Z а> i]*б-.i Jj;^ъ i- ; /: о)< chairman of the state committee for chief Accountant of the state committee fоr and State Property Management of th lnvestment and State Рrореrtу Мапаgеmепt of of Tajikistan the Republic of Tajikistan Мау 10, 2019 Мау 10,2019 Dushanbe, the Republic of Tajikistan Dushanbe, the Republic of Tajikistan 2 65 Stefan cel Mare şi Sfânt Blvd 5th Floor, Office 507 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 “Private Sector Competitiveness Project” under 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 “Private Sector Competitiveness 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, 2018, 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, 2018 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 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] Without qualifying our opinion, we draw attention to the following matters: a. We draw attention to foreign exchange loss in the statement of funds received and expenditures paid. In accordance with the decision of economic court of Dushanbe city of the Republic of Tajikistan dated May 16, 2017 CJCS TJSC IBRR “Tajprombank” had to transfer their US dollars accounts to Tajik somoni using the exchange rate of the National Bank of Tajikistan as at March 3, 2017. CJCS TJSC IBRR “Tajprombank” transfer the Project’s special account on June 30, 2018 in the amount of 471,457 US dollars to the Project’s transit account in Tajik somoni in the amount of 4,317,322 Tajik somoni (539,746 US dollars). The difference of 68,289 US dollars was recognized as foreign exchange loss. b. We draw attention to the Note 4 “Cash and cash equivalents”, in which present cash balances in CJSC TJSC IBRR “Tajprombank” (the “Bank”) in the amount of 4,644,454 Tajik somoni (492,541 US dollars) as at December 31, 2018. The National Bank of Tajikistan revoked license of this Bank on February 24, 2017. The Bank is in the process of liquidation. Therefore, the Project has no access to its bank accounts in CJSC TJSC IBRR “Tajprombank” as at date of issuing this project financial statements. 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 c. We draw attention to Note 2 to the project financial statements, which describes the basis of accounting. These project financial statements were prepared for complying with the appropriate World Bank Guidelines and Financing agreement requirements. These circumstances do not lead to modification of the audit opinion. Other matter [5] The project financial statements for the year ended December 31, 2016 were audited by another auditor. We were unable to satisfy ourselves as to the correctness of the opening balances, cumulative financing and expenses under audit due to unwillingness of predecessor auditor to collaborate with us. [6] The project financial statements are prepared to assist the Project to comply with the requirements of the World Bank. As a result the project financial statements may not be suitable for another purpose. Responsibilities of management and those charged with governance for the project financial statements [7] Management is responsible for the preparation and fair presentation of the project financial statements in accordance with International Public Sector Accounting Standard “Financial Reporting Under the Cash Basis of Accounting” (the “IPSAS”) issued by the International Public 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”), and for such internal control as management determines is necessary to enable the preparation of the project financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s responsibilities for the audit of the project financial statements [8] Our objectives are to obtain reasonable assurance about whether the project 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 the project 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 project 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 attenti on in our auditor’s report to the related disclosures in the project 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. However, future events or conditions may cause the Project to cease to continue as a going concern. • Evaluate the overall presentation, structure and content of the project financial statements, including the disclosures, and whether the project financial statements represent the underlying transactions and events in a manner that achieves fair presentation. 4 "PRIVATE SEcToR CoMPETITIVENESS PRoJECT,, GRANT No. H771-TJ SUMMARY ОF FUNDS RECEIVED AND EXPENDITURES PAID FoR тнЕ YEAR ENDED DEGEMBER 31,2018 (iп US dollars) Notes Fоr the уеаr Fоr the year cumulative ended ended DесеmЬеr 31, December 3'l , 201 8 2017 Opening Ьаlапсе 592,735 550,250 Fчпds received lDA Grant No. H771TJ 1,76,1,906 880,305 6,180,839 Total funds received 1,76,1,906 880,305 6,180,839 other income 1о2 1,643 Total receipts 1,762,008 880,305 6,182,482 Project expenses Goods, non-consulting seгvices, consultants' services, training and incremental operating expenSeS 1,740,931 833,&+1 5,563,891 Total project expenses 1,740,93,| 833,м1 5,563,891 Fоrеigп exchange loss 84,456 4,179_ 89,254 Оthеr expenses 111 492 Closing Ьаlапсе 528,845 592,7з5 528,845 Оп behalf of the Management: Ghief Accountant of the state Gоmmiftее fоr Investment and State РrореЁу Management of the Republic of Tajikistan 6 "PRIVATE SEcToR GoMPETITIVENESS PRoJEGT,, GRANT No. H771-TJ SUMMARY ОF EXPENDITURES PAID BY PROJECT COMPONENTS FoR тнЕ YEAR ENDED DEGEMBER 31,20.18 Fоr the year Fоr the уеаr cumulative ended ended DесеmЬеr 31, DесеmЬеr 3,1 , 201 8 2017 Рагt 1. Encouraging competitiveness and development of the mining industry 811,311 475,031 2,392,795 Рагt 2. Strепgthепiпg business registration systems and processes 6,867 56,011 508,484 Рагt 3. lnstitutional strengthening to suррогt а single window for construction реrmits 27,000 550,043 Рагt 4. lmрrочеmепt of financial infrastructure 829,788 190,257 ,1,331,982 Раrt 5. Project management 92,965 8з,з42 780,587 ___]Jtgpl]_ 833,641 --_5ýщ99]_ Оп behalf of the Management: gl,u - Hamralizoda F. "а(,{*8,k/ l. - Ghairman of the state committee for lnv ""D,ev chief Ассочпtапt of the state committee for and State Property Management of the R ]nvestment and State РrореЁу Management of of Tajikistan the Republic of Tajikistan Мау 10,2019 Мау 10, 2019 Dushanbe, the Republic of Tajikistan Dushanbe, the Republic of Tajikistan The notes оп pages 8-14 fоrm ап integral part of the projectfinancial Statements, The independent auditors'report iS оп pages З-5. “PRIVATE SECTOR COMPETITIVENESS PROJECT” GRANT NO. H771-TJ NOTES TO THE PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2018 (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 June 8, 2012, the World Bank provided a Grant No. H771-TJ in the amount of 6,500,000 Special Drawing Rights to the Republic of Tajikistan. According to the initial agreement the Project consisted of 3 Parts. According to amendment to the agreement dated September 22, 2014 the Project was extended until September 30, 2017 and was divided into 5 parts, the disbursement of Grant funds by parts were reallocated accordingly. On November 9, 2016 the Project was extended until June 30, 2018 and on June 28, 2018 the Project was extended until December 31, 2019. The Financing was provided for the implementation of the Project “Private Sector Competitiveness Project” (“the Project”). Project purpose The objective of the Project is to foster increased efficiency in key areas that influence private sector competitiveness, including business registration, infrastructure underlying access to financial services, and the mining industry. The Project comprises the following parts: Part 1. Encouraging competitiveness and development of the mining industry; Part 2. Strengthening business registration systems and processes; Part 3. Institutional strengthening to support a single window for construction permits; Part 4. Improvement of financial infrastructure; Part 5. Project management. Part 1. Encouraging competitiveness and development of the mining industry Developing an environment conducive to business in the mining sector through the following activities: (i) supporting the preparation of revised mining sector laws and regulations through technical assistance and capacity building activities; (ii) developing a modern mining cadastre and building capacity regarding said cadastre through the provision of technical assistance, training, and equipment; (iii) modernizing the geological survey function through technical assistance, training, and equipment; (iv) providing technical assistance to stakeholders concerning development of the mining sector through workshops and training; and (v) conducting a Strategic Environmental and Social Assessment to ensure the technical assistance recommendations conform with international standards. Part 2. Strengthening business registration systems and processes Improving the investment climate through improvements to the business registration processes and related institutions through the following activities: (i) Reviewing the structure, processes, systems, relationships, and monitoring and evaluation of business registration, as well as raising public awareness to enable the Business Registration One Stop Shop (the “OSS”) to be effectively implemented. (ii) Supporting institutional strengthening through IT and locally-based training in appropriate methods for operating an OSS (excluding foreign learning trips). (iii) Purchasing relevant IT infrastructure (hardware and software required for the OSS to be operational, including but not limited to computers, telephones, internet connections and OSS software). 8 Part 3. Institutional strengthening to support a single window for construction permits Increasing public awareness of the single window for construction permits and strengthening of capacity at the Construction Committee through the following activities: (i) Institutional strengthening of the Construction Committee of the Republic of Tajikistan through training and capacity building and procurement of specialist/technical equipment and IT systems (computers, printers, internet connections, etc.). (ii) Organizing and conducting Dushanbe City Construction Permits Single Window public awareness raising campaign, including enhancing the website and promoting transparency across multiple dimensions (city master plan, processes, steps, fees, timelines, etc.). Part 4. Improvement of financial infrastructure Strengthening the banking regulation and supervision framework through the provision of technical assistance and information technology support for: (i) enhancement of the secured transactions and debt resolution legal and regulatory framework, and IT system, including: (a) conducting a feasibility study to identify the optimal model and location for the collateral registry; (b) procuring necessary IT capacity for moveable collateral registry; and (c) strengthening the capacity of those using the moveable collateral registry system, through technical assistance, training, and information technology support; (ii) modernization of the payment systems infrastructure, through: (a) strengthening the legal and regulatory framework governing the national payments system; (b) procuring of an Automated Transfer System and Central Securities Depository, including relevant IT support; and (c) providing training and capacity building through the Republic of Georgia's Central Bank; and (iii) strengthening bank regulation and supervision, through: (a) review and revision of legislation and regulations of the National Bank of Tajikistan; and (b) upgrading the IT system of the National Bank of Tajikistan for bank supervision. Part 5. Project management Support the operation of the Project Management Unit, including establishing a monitoring and evaluation framework for the Project, through the provision of technical assistance, training, and incremental operating costs, and financing the hiring of an additional procurement specialist and a Project Coordinator. Project management The project is implemented by Project Management Unit (the “PMU”) under the State Committee on Investments and Government Property Management of the Republic of Tajikistan. Duration of the Project is from the June 8, 2012 to December 31, 2019. 2. PRESENTATION OF THE PROJECT FINANCIAL STATEMENTS Basis of preparation These project financial statements have been prepared in accordance with the International Public Sector Accounting Standard (the “IPSAS”) “Financial Reporting under the Cash Basis of Accounting” issued by the Public Sector Committee of the International Federation of Accountants, and incorporate the following principal accounting policies, which have been consistently followed in all material respects and comply with the World Bank’s Financial Management Sector Board’s “Guidelines: Annual Financial Reporting and Auditing for World Bank Financed Activities” (the “WB Guidelines”). Under the cash basis system income (or expenditure) is recognized when cash is received (or paid) irrespective of when goods or services are received or provided. The Project’s approved budget disclosed by categories of expenses is not publicly available and as such comparison of budget and actual amounts is not presented. 9 These project financial statements consist of: • Summary of funds received and expenditures paid; • Summary of expenditures paid by project components; • Notes to the project financial statements, including short description of main statements of accounting policy and other descriptive notes. The reporting currency of these project financial statements is US dollars (the “USD”). 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Cash basis of accounting The project financial statements are prepared on a cash basis of accounting. The cash basis of accounting recognizes transactions and events only when cash (including cash equivalents) is received or paid by the Project. The project financial statements prepared under the cash basis provide information on the sources of funds, the purpose of uses of funds, and cash balances at the reporting date. The measurement focus in the project financial statements is balances of cash and changes therein. Foreign currency Operations in foreign currency initially are counted in functional currency by the official currency exchange rate settled by the National Bank of Tajikistan (the “NBT”) on a date of operation. Funds received are translated into US dollars at official exchange rate of Special Drawing Rights (the “SDR”) at the date of funds receipt. All payments made in local currency are translated into US dollars at the official exchange rate defined by NBT, at the date of transaction. Monetary assets and liabilities expressed in foreign currency are converted to functional currency at official exchange rate on a date settled by the NBT. All foreign exchange differences resulted from maturity or recounting are included in the summary of funds received and expenditures paid. Non-monetary items are valued according to their historic cost in foreign currency, which are recalculated on rates of the initial operation date. Cash and cash equivalents Cash and cash equivalents include cash on hand and due from banks, which can be converted to the corresponding amount of cash in the short term. Balances of advances paid to employees at the end of the period are also part of closing cash position. Taxes Calculation and payment of personal income tax and social security contributions from income of local staff and consultants is made in accordance with the requirements and rates of the Tax Code of the Republic of Tajikistan and relevant legislation of the Republic of Tajikistan. Project expenses The expenses are recorded in the period when they were actually paid. Sources of funds The funds were provided by the World Bank to the Project by advance, direct payments and reimbursement. 10 4. CASH AND CASH EQUIVALENTS Cash and cash equivalents as at December 31, 2018 and 2017 comprise: Bank Currency December 31, December 31, 2018 2017 Designated account National Bank of Tajikistan US dollar 36,303 2,965 Designated account CJCS TJSC IBRR “Tajprombank” US dollar - 539,746 Transit account CJSC TJSC IBRR “Tajprombank” Tajik somoni 491,924 49,361 Tender account CJSC TJSC IBRR “Tajprombank” Tajik somoni 617 660 Transit account National Bank of Tajikistan Tajik somoni 1 3 528,845 592,735 5. FUNDS RECEIVED The funds received are presented by the following financing methods: For the year For the year Cumulative ended ended December 31, December 31, 2018 2017 Advances - 100,000 850,000 Direct payments 1,487,305 593,508 2,990,804 Reimbursement of expenses 274,601 186,797 2,340,035 1,761,906 880,305 6,180,839 6. PROJECT EXPENSES 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 nature is presented as follows: For the year For the year ended ended December 31, December 31, 2018 2017 Purchase of modern Automated Transfer Systems for improving payment infrastructure 494,171 - Modernization of minig cadastre of the Republic of Tajikistan 353,839 139,215 Transformation into electronic format of geological information 328,559 - Implementation of the collateral registry and purchase of equipment, software 282,978 - Trainings, workshops and public consultations under Part 1 78,745 314,982 Payroll and related taxes 66,888 75,329 Individual consultants under Part 4 65,021 71,337 Equipment 27,150 47,834 Audit 15,409 - Trainings 14,028 13,231 Air tickets 3,884 6,115 Fuel 3,637 3,582 Communication services 2,632 3,587 Business trip 936 36,665 Strengthening of banking regulation and supervision functions of NBT - 118,920 Other 3,054 2,844 1,740,931 833,641 11 7. FINANCIAL POSITION Financial position as at December 31, 2018 and 2017 comprises: December 31, December 31, 2018 2017 ASSETS AND EXPENDITURES Cash and cash equivalents 528,845 592,735 Cumulative expenses 5,563,891 3,822,960 Foreign exchange loss 89,254 4,398 Other expenses 492 381 TOTAL ASSETS AND EXPENDITURES 6,182,482 4,420,474 FINANCING Funds received 6,180,839 4,418,933 Other income 1,643 1,541 TOTAL FINANCING 6,182,482 4,420,474 8. WITHDRAWAL APPLICATIONS Withdrawal applications for year ended December 31, 2018 comprise: Application Value date Direct Goods, non- Total payments consulting services, consultants' services, training and incremental operating expenses PSCP-33 February 21, 2018 - 97,034 97,034 PSCP-40 February 27, 2018 27,150 - 27,150 PSCP-39 February 27, 2018 19,656 - 19,656 PSCP-38 February 27, 2018 19,800 - 19,800 PSCP-37 February 27, 2018 19,698 - 19,698 PSCP-36 February 27, 2018 19,591 - 19,591 PSCP-35 February 27, 2018 65,712 - 65,712 PSCP-34 March 2, 2018 303,993 - 303,993 March 26, 2018 *(27,150) - *(27,150) PSCP-41/1 April 20, 2018 27,150 - 27,150 PSCP-42 April 30, 2018 - 85,351 85,351 PSCP-43 April 30, 2018 164,279 - 164,279 PSCP-44 June 18, 2018 129,701 - 129,701 PSCP-45 August 30, 2018 254,687 - 254,687 PSCP-46 November 20, 2018 - 92,216 92,216 PSCP-47 December 12, 2018 178,234 - 178,234 PSCP-48 December 26, 2018 98,568 - 98,568 PSCP-49 December 26, 2018 186,236 - 186,236 1,487,305 274,601 1,761,906 * Direct payment to Orien Jam LLC, based on the contract PSCP/SH/07 was not received by the counterparty due to the fact that JSC “Transkapitalbank” terminated correspondent relationships with OJCS “Sohibkorbank”. The payment to Orien Jam LLC was made on April 20, 2018 based on withdrawal application PSCP-41/1. 12 9. STATEMENT OF DESIGNATED ACCOUNT Statement of designated account for the year ended December 31, 2018 comprise: Bank CJSC TJSC IBRR National Bank of “Tajprombank” Tajikistan Currency US Dollars US Dollars Bank account 202068405001252 24296840100002 Bank’s location 22 Rudaki str., 107A Rudaki str., Dushanbe, Dushanbe, the Republic of the Republic of Tajikistan Tajikistan Total Balance as at January 1, 2018 539,476 2,965 542,711 Reimbursement of expenses - 274,601 274,601 Total funds received to the designated account - 274,601 274,601 Expenses paid - 20,393 20,393 Transfer to transit account 471,457 220,870 692,327 Foreign exchange loss 68,289 - 68,289 Balance as at December 31, 2018 - 36,303 36,303 10. UNDRAWN FUNDS As at December 31, 2018 undrawn funds are presented as follows: Grant No. H771-TJ in SDR Approved financing amount 6,500,000 Disbursed for the period from June 8, 2012 to December 31, 2018 4,331,041 Undrawn financing amount 2,168,959 Financing received as at January 1, 2018 3,102,338 Disbursed in 2018 1,228,703 Financing received as at December 31, 2018 4,331,041 11. COMMITMENTS In the normal course of activities, the Project concludes agreements with suppliers of goods and services in accordance with the established budget and procurement plan. Contract value of obligations valid as at December 31, 2018 was as follows: Counterparty Contract No. Currency Contract Paid up to Remaining value December 31, amount to be 2018 paid SMA Small System AB PSCP.ICB.G.3 USD 982,590 494,171 488,419 12. LEGAL CASES There were no any legal cases related to the Project. 13 13. EVENTS AFTER THE REPORTING DATE During 2019 until the date of issue of these project financial statements the World Bank provided financing to the Project as follows: Application Value date Direct Goods, non- Total payments consulting services, consultants' services, training and incremental operating expenses PSCP-50 February 20, 2019 - 95,979 95,979 PSCP-51 April 30, 2019 148,989 - 148,989 PSCP-52 May 1, 2019 83,488 - 83,488 232,477 95,979 328,456 As at the date of issue of the project financial statements no other significant events or transactions occurred, which should be disclosed in the project financial statements except for events or transactions described above. 14