Project's Financial Statements and Independent Auditor's Report Ministry of Finance of the Republic of North Macedonia "Second Municipal Services Improvement Project" - International Bank for Reconstruction and Development Loan number 8561-MK For the period from 01 January 2022 to 31January 2023 and disbursement period to 31 March 2023 Ministry of Finance of the Republic of North Macedonia “Second Municipal Services Improvement Project” IBRD Loan number Loan number 8561-MK Contents Page Management Responsibility 1 Statement of Sources and Uses of Funds – Loan number 8561-MK 4 Statement of Uses of Funds by Project Activity - Loan number 8561-MK 5 Statement of Uses of Funds by Project Activity - Loan number 8561-MK (continued) 8 Statement of Unit of Output by Project Activity - Loan number 8516 10 Statement of Breakdown of Loans and Grants - Loan number 8561-MK 23 Statement of Withdrawals – Designated Accounts 29 Statement of Designated Accounts – EUR 31 Statement of Treasury Accounts (Mirror Designated Accounts) – MKD 32 Statement of Petty Cash in Denar Account 33 Notes to Project’s financial statements 34 Independent Auditor ’s Report Grant Thornton DOO Sv. Kiril i Metodij 52b-1/20 1000 Skopje North Macedonia T +389 (0)2 3214 700 To the Management of the Project F +389 (0)2 3214 710 E Contact@mk.gt.com VAT No. 4030003475973 We have audited the accompanying financial statements of the Ministry of Finance of the Republic of North Macedonia (MoF), “Second Municipal Services Improvement Project” (further referred to as “the Project”), financed under International Bank for Reconstruction and Development (IBRD), Loan numbered 8561-MK (“Second Municipal Services Improvement Project”), comprising the Statement of Sources and Uses of Funds, Statement of Uses of Funds by Project Activity, Statement of Unit of Output by Project Activity, Statement of Breakdown of Loans and Grants, Statement of Withdrawals, Designated Account Statements and related disclosure Notes (further referred as to “Project’s Financial Statements”) for the period from 01 January 2022 to 31 January 2023 and disbursement period to 31 March 2023 and included on pages 4 to 35. Management’s responsibility for Project’s financial statements These Project’s financial statements are compiled for the purposes of reporting to the MoF and the IBRD management, and are the responsibility of the management of the Project. The Project’s management is responsible for developing and maintaining such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatements, whether due to fraud or error. The Project’s Management policy is to prepare the accompanying Project’s financial statements on the cash receipts and disbursement basis in conformity with the related requirements of the World Bank’s financial reporti ng guidelines and in compliance with the relevant provisions set out in the Loan Agreement numbered 8561-MK dated 14 January 2016. On this basis, cash receipts are recognized when received rather when earned and cash expenditures are recognized when paid rather than when incurred. Auditor’s responsibility Our responsibility is to express an opinion on these Project’s financial statements based on our audit. We c onducted our audit in accordance with auditing standards accepted in the Republic of North Macedonia1. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assess ment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Project’s preparation and fair presentation of the financial statements 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. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. 1 International Standards on Auditing (“ISA“) issued by the International Auditing and Assurance Standards Board (“IAASB”), effective from 15 December 2009, translated and published in the “Official Gazette” of the Republic of Macedonia no. 79 from 2010. Grant Thornton DOO is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate, one another and are not liable for one another’s acts or omissions. grantthornton.mk Ministry of Finance of the Republic of North Macedonia 5 “Second Municipal Services Improvement Project” IBRD Loan number 8561-MK Project’s Financial Statements 31 January 2023 and disbursement period to 31 March 2023 Statement of Uses of Funds by Project Activity - Loan number 8561-MK (Amounts in EUR) For the period from 01 January 2022 through 31 January 2023 and disbursement period to 31 March 2023 Actual Budget Variance Year Cumulative Year Cumulative Year Cumulative Component A: Municipal Investments Centar Zupa sub-loan no.01 - 315,405 - 315,405 - - Centar Zupa - Construction of local road - 315,405 - 315,405 - - Zelino sub-loan no.02 - 498,080 - 498,080 - - Zelino - Construction of local road and school reconstruction - 498,080 - 498,080 - - Studenicani sub-loan no.03 - 276,882 - 276,882 - - Studenicani - Construction of local street - 276,882 - 276,882 - - Kisela Voda sub-loan no.04 219,897 1,662,209 219,897 1,662,209 - - Kisela Voda - Storm water network const. 219,897 799,873 219,897 799,873 - - Kisela Voda – Additional streets - 642,439 - 642,439 - - Kisela Voda – Reconstruction of streets - 219,897 - 219,897 - - Kavadarci sub-loan no.05 - 1,043,423 - 1,043,423 - - Kavadarci - Construction of local streets - 867,244 - 867,244 - - Kavadarci – Remaining sub-loan funds - 176,179 - 176,179 - - Resen sub-loan no.06 - 481,942 - 481,942 - - Resen - Construction of local streets - 481,942 - 481,942 - - Krivogashtani sub-loan no.07 - 43,471 - 43,471 - - Krivogashtani - Street lighting - 43,471 - 43,471 - - Gazi Baba sub-loan no.08 - 1,174,039 - 1,174,039 - - Gazi Baba - Construction of sewerage system - 1,174,039 - 1,174,039 - - Pehcevo sub-loan no.09 - 96,108 - 96,108 - - Pehcevo – Street reconstruction - 96,108 - 96,108 - - Vrapciste sub-loan no.10 - 498,721 - 498,721 - - Vrapciste – Water supply - 498,721 - 498,721 - - Delcevo sub-loan no.11 48,230 525,458 - 525,458 (48,230) - Delcevo – Street reconstruction 48,230 439,645 - 439,645 (48,230) - Delcevo- Street reconstruction, additional street - 85,814 - 85,813 - - Kriva Palanka sub-loan no.12 - 361,138 - 361,138 - - Kriva Palanka – River regulation - 361,138 - 361,138 - - Cucer Sandevo sub-loan no.13 - 748,243 - 748,243 - - Cucer Sandevo – Reconstruction of road - 748,243 - 748,243 - - Tetovo sub-loan no.14 BATO - 987,448 - 987,448 - - Tetovo – Street construction - 987,448 - 987,448 - - Bogovinje sub-loan no.15 - 276,444 - 276,444 - - Bogovinje – Procurement of communal vehicles - 276,444 - 276,444 - - Kocani sub-loan no.16 67,638 707,709 67,638 707,709 - - Kocani – Street reconstruction 67,638 640,071 67,638 640,071 - - Kocani – Street reconstruction, additional street - 67,638 - 67,638 - - Lipkovo sub-loan no.17 - 226,436 - 226,436 - - Lipkovo – River regulation - 226,436 - 226,436 - - Dolneni sub-loan no.19 19,226 369,933 19,226 369,933 - - Dolneni – Street reconstruction 19,226 350,707 19,226 350,707 - - Dolneni – Procurement of vehicle - 19,226 - 19,226 - - Ministry of Finance of the Republic of North Macedonia 6 “Second Municipal Services Improvement Project” IBRD Loan number 8561-MK Project’s Financial Statements 31 January 2023 and disbursement period to 31 March 2023 Statement of Uses of Funds by Project Activity - Loan number 8561-MK (continued) (Amounts in EUR) For the period from 01 January 2022 through 31 January 2023 and disbursement period to 31 March 2023 Actual Budget Variance Year Cumulative Year Cumulative Year Cumulative Mavrovo Rostushe sub-loan no.20 - 213,249 - 213,249 - - Mavrovo Rostushe – Road reconstruction - 213,249 - 213,249 - - Saraj sub-loan no.21 - 217,602 - 217,602 - - Saraj – Extension of administrative building - 217,602 - 217,602 - - Strumica sub-loan no.22 - 1,492,824 - 1,492,824 - - Strumica – Water meters and Gas network - 1,492,824 - 1,492,824 - - Novaci sub-loan no.18 - 276,329 - 276,329 - - Novaci – Procurement of communal vehicles - 276,329 - 276,329 - - Konce sub-loan no.23 - 85,486 - 85,486 - - Konce – Street lighting - 85,486 - 85,486 - - Tetovo sub-loan no.24 BUS 461,396 1,182,556 - 1,182,556 (461,396) - Tetovo – Procurement of buses 461,396 721,160 - 721,160 (461,396) - Tetovo – Procurement of communal vehicles - 461,396 - 461,396 0 - Mogila sub-loan no.25 - 107,383 - 107,383 0 - Mogila – House of Culture - 107,383 - 107,383 0 - Kumanovo sub-loan no.26 959,668 959,668 - 959,668 (959,668) - Kumanovo – Procurement of communal vehicles 959,668 959,668 - 959,668 (959,668) - Zelenikovo sub-loan no.27 112,552 197,887 52,452 197,887 (60,100) - Zelenikovo - Reconstruction of local road 112,552 197,887 52,452 197,887 (60,100) - Karposh sub loan no.29 79,491 271,385 71,385 271,385 (8,106) - Karposh - Reconstruction of roads 79,491 271,385 71,385 271,385 (8,106) - Gjorce Petrov sub-loan no.29 467,193 676,371 376,371 676,371 (90,822) - Gjorce Petrov-Construction of roads 467,193 676,371 376,371 676,371 (90,822) - Sopishte sub-loan no.30 30,463 236,399 - 236,399 (30,463) - Sopishte- Construction of sewerage network 30,463 236,399 - 236,399 (30,463) - Valandovo sub-loan no.31 - 46,178 - 46,178 - - Valandovo- Procurement of communal vehicles - 46,178 - 46,178 - - Negotino sub-loan no.32 15,862 324,246 15,862 324,246 - - Negotino-Construction of roads 15,862 308,384 15,862 308,384 - - Negotino-Additional construction of street - 15,862 0 15,862 - - Chesinovo-Obleshevo sub-loan no.33 30,624 136,333 30,624 136,333 - - Chesinovo-Obleshevo- Construction of roads 30,624 105,709 30,624 105,709 - - Chesinovo-Obleshevo- Additional streets - 30,624 - 30,624 - - Chair sub-loan no.34 360,764 424,400 - 424,400 (360,764) - Chair – Construction of sewerage network 360,764 424,400 - 424,400 (360,764) - Sveti Nikole sub-loan no.35 569,415 702,190 452,190 702,190 (117,225) - Sveti Nikole-Construction of roads 569,415 702,190 452,190 702,190 (117,225) - Veles sub-loan no.37 414,298 496,418 196,418 496,418 (217,880) - Veles- Reconstruction of city green market 414,298 496,418 196,418 496,418 (217,880) - Brvenica sub-loan no.37 - 81,646 - 81,646 - - Brvenica- Proc.of new combined bachoe loader - 81,646 - 81,646 - - Debar sub-loan no.38 283,930 283,930 283,930 283,930 - - Debar-Strenghtening the technical capacity of PCE 283,930 283,930 283,930 283,930 - - Other sub-loan municipalities - - - 784,431 - 784,431 Other sub-loan municipalities - - - 784,431 - 784,431 Total Component A - Municipal Investments 4,140,647 18,705,569 1,785,993 19,490,000 (2,354,654) 784,431 Component B: Poverty and Social Inclusion Investment Grants Centar Zupa Grant no.01 - 83,872 - 83,872 - - Centar Zupa Grant – Street construction - 83,872 - 83,872 - - Kavadarci Grant no. 02 - 223,336 - 223,336 - - Kavadarci Grant – Street construction - 223,336 - 223,336 - - Resen Grant no. 03 - 96,310 - 96,310 - - Resen Grant – School reconstruction - 96,310 - 96,310 - - Ministry of Finance of the Republic of North Macedonia 7 “Second Municipal Services Improvement Project” IBRD Loan number 8561-MK Project’s Financial Statements 31 January 2023 and disbursement period to 31 March 2023 Statement of Uses of Funds by Project Activity - Loan number 8561-MK (continued) (Amounts in EUR) For the period from 01 January 2022 through 31 January 2023 and disbursement period to 31 March 2023 Actual Budget Variance Year Cumulative Year Cumulative Year Cumulative Krivogashtani Grant no. 04 - 12,416 - 12,416 - - Krivogashtani Grant – Waste containers - 8,881 - 8,881 - - Krivogashtani Grant – Waste containers 2nd contract - 3,535 - 3,535 - - Studenicani Grant no. 05 - 71,232 - 71,232 - - Studenicani Grant – Street reconstruction - 71,232 - 71,232 - - Zelino Grant no. 06 - 108,297 - 108,297 - - Zelino Grant – Construction of schools - 108,297 - 108,297 - - Kocani Grant no. 07 - 173,136 - 173,136 - - Kocani Grant – Construction of streets - 173,136 - 173,136 - - Cucer Sandevo Grant no. 08 - 156,658 - 156,658 - - Cucer Sandevo Grant – Street construction - 156,658 - 156,658 - - Kisela Voda Grant no. 09 - 208,424 - 208,424 - - Kisela Voda Grant – Reconstruction of street - 208,424 - 208,424 - - Vrapciste Grant no. 10 - 135,057 - 135,057 - - Vrapciste Grant – Reconstruction of street - 135,057 - 135,057 - - Mogila Grant no. 11 - 29,100 - 29,100 - - Mogila Grant – Purchasing of communal vehicle - 29,100 - 29,100 - - Dolneni Grant no. 12 - 78,621 - 78,621 - - Dolneni Grant - Purchasing of communal vehicle - 78,621 - 78,621 - - Novaci Grant no. 13 - 75,136 - 75,136 - - Novaci Grant - Purchasing of communal vehicle - 75,136 - 75,136 - - Konce Grant no. 14 - 20,556 - 20,556 - - Konce Grant - Purchasing of communal vehicle - 20,556 - 20,556 - - Delcevo Grant no. 15 - 117,537 - 117,537 - - Delcevo Grant – Purchasing of PP vehicle - 117,537 - 117,537 - - Mavrovo Rostushe Grant no. 16 - 50,564 - 50,564 - - Mavrovo Rostushe Grant – Street reconstruction - 50,564 - 50,564 - - Kisela Voda Grant no. 17 - 161,033 48,993 161,033 48,993 - Kisela Voda Grant-Reconstruction of street - 161,033 48,993 161,033 48,993 - Kavadarci Grant no. 18 - 51,417 - 51,417 - - Kavadarci Grant – Reconstruction of water supply network - 51,417 - 51,417 - - Lipkovo Grant no. 19 - 61,275 - 61,275 - - Lipkovo Grant – Reconstruction of local roads - 61,275 - 61,275 - - Tetovo Grant no. 20 271,978 430,850 - 430,850 (271,978) - Tetovo Grant – Procurement of communal vehicles 271,978 430,850 - 430,850 (271,978) - Gazi Baba Grant no. 21 196,239 298,278 168,278 298,278 (27,961) - Gazi Baba Grant-Construction of sewerage networks 196,239 298,278 168,278 298,278 (27,961) - Strumica Grant no. 22 208,125 374,186 174,186 374,186 (33,939) - Strumica Grant – Construction of streets 208,125 374,186 174,186 374,186 (33,939) - Pehcevo Grant no. 23 22,590 25,852 - 25,852 (22,590) - Pehcevo Grant - Construction of local roads 22,590 25,852 - 25,852 (22,590) - Kriva Palanka Grant No. 24 52,365 98,204 98,204 98,204 45,839 - Kriva Palanka Grant – River regulation 52,365 98,204 98,204 98,204 45,839 - Chesinovo-Oblesevo Grant no. 25 27,774 27,774 - 27,774 (27,774) - Chesinovo-Oblesevo Grant- Procurement of communal vehicles 27,774 27,774 - 27,774 (27,774) - Valandovo Grant no. 26 12,323 12,323 12,323 12,323 - - Valandovo Grant – Procurement of containers, bins 12,323 12,323 12,323 12,323 - - Gjorce Petrov Grant no. 27 134,617 134,617 134,617 134,617 - - Gjorce Petrov Grant – Soft and hard landscaping 67,632 67,632 67,632 67,632 - - Gjorce Petrov Grant- Proc. of communal vehicle 66,985 66,985 66,985 66,985 - - Sopishte Grant No. 28 60,450 60,450 60,450 60,450 - - Sopishte Gran – Procurement of communal vehicle 60,450 60,450 60,450 60,450 - - Negotino Grantno.29 60,404 60,404 60,404 60,404 - - Negotino Grant-Construction of street 60,404 60,404 60,404 60,404 - - Ministry of Finance of the Republic of North Macedonia 8 “Second Municipal Services Improvement Project” IBRD Loan number 8561-MK Project’s Financial Statements 31 January 2023 and disbursement period to 31 March 2023 Statement of Uses of Funds by Project Activity - Loan number 8561-MK (continued) (Amounts in EUR) For the period from 01 January 2022 through 31 January 2023 and disbursement period to 31 March 2023 Actual Budget Variance Year Cumulative Year Cumulative Year Cumulative Zelenikovo Grant No. 31 39,326 39,326 39,326 39,326 - - Zelenikovo Grant- Procurement of communal vehicle 39,326 39,326 39,326 39,326 - - Brvenica Grant No. 32 22,395 22,395 22,395 22,395 - - Brvenica Grant – Procurement of communal vehicle 22,395 22,395 22,395 22,395 - - Sveti Nikole Grant No. 34 92,631 92,631 92,631 92,631 - - Sveti Nikole Grant – Project of water supply 92,631 92,631 92,631 92,631 - - Karpos Grant No. 35 53,595 53,595 53,595 53,595 - - Karpos Grant – Procurement of vehicle 53,595 53,595 53,595 53,595 - - Veles Grant No.30 172,277 172,277 172,277 172,277 - - Veles Grant - Water supply system 139,558 139,558 139,558 139,558 - - Veles Grant - Procurement of vehicle 32,719 32,719 32,719 32,719 - - Chair Grant No.33 147,257 147,257 147,257 147,257 - - Chair Grant – Proc. And installation of LED diode 147,257 147,257 147,257 147,257 - - Delcevo Grant no.36 22,716 22,716 22,716 22,716 - - Delcevo Grant-Proc. and instal. Of LED diode 22,716 22,716 22,716 22,716 - - Tetovo Grant No.37 100,999 100,999 100,999 100,999 - - Tetovo Grant – Procurement of special vehicles 100,999 100,999 100,999 100,999 - - Sopishte Grant No.40 3,463 3,463 3,463 3,463 - - Sopishte Grant – Proc of plastic bins 3,463 3,463 3,463 3,463 - - Debar Grant No.39 63,438 63,438 63,438 63,438 - - Debar Grant – Procurement of communal vehicles 63,438 63,438 63,438 63,438 - - Kumanovo Grant No.38 274,633 274,633 274,633 274,633 - - Kumanovo Grant – Procurement of communal vehicle 274,633 274,633 274,633 274,633 - - Other grant municipalities - 2 187,855 187,855 187,855 187,853 Other grant municipalities - 2 187,855 187,855 187,855 187,853 Total Component B - Poverty and Social Inclusion Investment Grants 2,039,595 4,429,647 1,938,040 4,617,500 101,555 187,853 Component C: Project Management, Capacity Building, Monitoring and Evaluation Capacity building of participating municipalities UA consultant - 13,400 - 13,400 - - IBNET consultant Bojan - 4,207 - 4,207 - - PADs Preparation - 73,593 - 73,593 - - IBNET consultant Jane 1,870 4,250 - 4,250 (1,870) - PAD spreparation 2nd ADI - 30,050 - 30,050 - - PAD spreparation 3rd ZMAI 6,250 43,750 - 43,750 (6,250) - UA Marjan Nikolov - 5,800 1,000 5,800 1,000 - UA Vesna Gavranlieva 600 5,400 600 5,400 - - Project management, Monitoring and Evaluation Construction Coordinator / Construction Engineer RP 18,170 51,482 17,813 51,482 (357) - Construction Engineer JZB 16,434 44,483 15,358 44,483 (1,076) - Admirative Operative Assistant Construction Engineer ZD 16,445 34,706 15,371 34,706 (1,074) - Economy and Procurement Associate TS 10,394 21,694 9,794 21,694 (600) - Operating costs 19,227 34,328 29,929 49,929 10,702 15,601 FA Ljubica Patlidzankovska 1,600 7,000 1,000 7,000 (600) - Lead Project Coordinator 15,000 54,362 13,499 54,362 (1,501) - FM Specialist - 28,077 - 28,077 - - Ministry of Finance of the Republic of North Macedonia 9 “Second Municipal Services Improvement Project” IBRD Loan number 8561-MK Project’s Financial Statements 31 January 2023 and disbursement period to 31 March 2023 Statement of Uses of Funds by Project Activity - Loan number 8561-MK (continued) (Amounts in EUR) For the period from 01 January 2022 through 31 January 2023 and disbursement period to 31 March 2023 Actual Budget Variance Year Cumulative Year Cumulative Year Cumulative FM Assistant / FM Specialist SS 13,125 33,100 11,811 33,100 (1,314) - Procurement and Legal Coordinator 13,112 40,219 11,799 40,219 (1,313) - Procurement Assistant 9,342 26,392 8,517 26,392 (825) - Construction Engineer GT 3,357 31,406 2,281 31,406 (1,076) - Construction Engineer / Construction Coordinator JT 13,125 43,268 11,811 43,268 (1,314) - Construction Engineer BM - 6,430 - 6,430 - - Construction Engineer RL 10,714 32,842 9,641 32,842 (1,073) - Construction Engineer FM 10,714 32,842 9,641 32,842 (1,073) - Environmental specialist 11,100 36,959 9,994 36,959 (1,106) - Office Manager / Translator 8,250 24,200 7,425 24,200 (825) - Communication Analyst VG 5,250 16,100 4,725 16,100 (525) - Audit 7,907 15,456 19,800 23,800 11,893 8,344* Administrative/Operational Assistant 7,500 10,159 6,749 10,159 (751) - Training for MSIP staff - 100 - 100 - - Total Component C - Project Management, Capacity Building, Monitoring and Evaluation 219,486 806,055 218,558 830,000 (928) 23,945 Front-end fee – Original Loan - 62,500 - 62,500 - - Total Project Expenditure 6,399,728 24,003,771 3,942,591 25,000,000 (2,457,137) 996,229 *See Note 4 Commitments Ministry of Finance of the Republic of North Macedonia 10 “Second Municipal Services Improvement Project” IBRD Loan number 8561-MK Project’s Financial Statements 31 January 2023 and disbursement period to 31 March 2023 Statement of Unit of Output by Project Activity - Loan number 8516 Cumulative for the period from 01 January 2022 through 31 January 2023 and disbursement period to 31 March 2023 Procurement Paid amount Commitment in plan amount Contracted in Paid amount in Procurement Contract amount Paid amount Contract amount local contract Euro Euro equivalent Euro equivalent method original currency original currency local currency currency currency MKD MKD EUR MKD Component A: Municipal Investments Centar Zupa sub- loan no.01 315,405 315,405 315,405 - - - 19,300,000 19,300,000 - - Centar Zupa - Construction of local road 315,405 315,405 315,405 NCB 19,300,000 MKD 19,300,000 MKD 19,300,000 19,300,000 - - Zelino sub-loan no.02 498,080 498,080 498,080 - - - 30,475,081 30,475,081 - - Zelino - Construction of local road and school 498,080 498,080 498,080 NCB 30,475,081 MKD 30,475,081 MKD 30,475,081 30,475,081 - - Studenicani sub- loan no.03 276,882 276,882 276,882 - - - 16,942,376 16,942,376 - - Studenicani - Construction of local street 276,882 276,882 276,882 NCB 16,942,376 MKD 16,942,376 MKD 16,942,376 16,942,376 - - Kisela Voda sub- loan no.04 1,662,209 1,662,209 1,662,209 - - - 101,873,791 101,873,791 - - Ministry of Finance of the Republic of North Macedonia 11 “Second Municipal Services Improvement Project” IBRD Loan number 8561-MK Project’s Financial Statements 31 January 2023 and disbursement period to 31 March 2023 Statement of Unit of Output by Project Activity – Loan number 8561-MK (continued) Cumulative for the period from 01 January 2022 through 31 January 2023 and disbursement period to 31 March 2023 Procurement plan amount Contracted in Paid amount in Procurement Contract amount Paid amount Contract amount Paid amount Commitment in Euro Euro equivalent Euro equivalent method original currency original currency local currency local currency contract currency MKD MKD EUR MKD Kisela Voda - Storm water network construction 799,873 799,873 799,873 NCB 49,001,007 MKD 49,001,007 MKD 49,001,007 49,001,007 - - Kisela Voda – Additional streets 642,439 642,439 642,439 NCB 39,410,461 MKD 39,410,461 MKD 39,410,461 39,410,461 - - Kisela Voda - Reconstractuion of streets 219,897 219,897 219,897 NCB 13,462,323 MKD 13,462,323 MKD 13,462,323 13,462,323 - - Kavadarci sub-loan no.05 1,043,423 1,043,423 1,043,423 - - - 63,931,920 63,931,920 - - Kavadarci - Construction of local streets 867,244 867,244 867,244 NCB 53,116,884 MKD 53,116,884 MKD 53,116,884 53,116,884 - - Kavadarci - Remaining sub-loan funds 176,179 176,179 176,179 NCB 10,815,036 MKD 10,815,036 MKD 10,815,036 10,815,036 - - Resen sub-loan no.06 481,942 481,942 481,942 - - - 29,525,906 29,525,906 - - Resen - Construction of local streets 481,942 481,942 481,942 NCB 29,525,906 MKD 29,525,906 MKD 29,525,906 29,525,906 - - Krivogashtani sub- loan no.07 43,471 43,471 43,471 - - - 2,659,720 2,659,720 - - Krivogashtani - Street lighting 43,471 43,471 43,471 NCB 2,659,720 MKD 2,659,720 MKD 2,659,720 2,659,720 - - Gazi Baba sub-loan no.08 1,174,039 1,174,039 1,174,039 - - - 71,985,281 71,985,281 - - Gazi Baba - Construction of sewerage system 1,174,039 1,174,039 1,174,039 NCB 71,985,281 MKD 71,985,281 MKD 71,985,281 71,985,281 - - Pehcevo sub-loan no.09 96,108 96,108 96,108 - - - 5,899,706 5,899,706 - - Pehcevo – Street reconstruction 96,108 96,108 96,108 NCB 5,899,706 MKD 5,899,706 MKD 5,899,706 5,899,706 - - Vrapciste sub-loan no.10 498,721 498,721 498,721 - - - 30,614,694 30,614,694 - - Vrapciste – Water supply 498,721 498,721 498,721 NCB 30,614,694 MKD 30,614,694 MKD 30,614,694 30,614,694 - - Delcevo sub-loan no.11 525,458 525,458 525,458 - - - 32,252,287 32,252,287 - - Ministry of Finance of the Republic of North Macedonia 12 “Second Municipal Services Improvement Project” IBRD Loan number 8561-MK Project’s Financial Statements 31 January 2023 and disbursement period to 31 March 2023 Statement of Unit of Output by Project Activity – Loan number 8561-MK (continued) Cumulative for the period from 01 January 2022 through 31 January 2023 and disbursement period to 31 March 2023 MKD MKD EUR MKD Delcevo – Street reconstruction 439,645 439,645 439,645 NCB 26,985,539 MKD 26,985,539 MKD 26,985,539 26,985,539 - - Delcevo - Street recon, additional street 85,813 85,813 85,813 NCB 5,266,748 MKD 2,307,112 MKD 5,266,748 5,266,748 - - Kriva Palanka sub- loan no.12 361,138 361,138 361,138 - - - 22,139,818 22,139,818 - - Kriva Palanka – River regulation 361,138 361,138 361,138 NCB 22,139,818 MKD 22,139,818 MKD 22,139,818 22,139,818 - - Cucer Sandevo sub- loan no.13 748,243 748,243 748,243 - - - 45,915,224 45,915,224 - - Cucer Sandevo Reconstruction of road 748,243 748,243 748,243 ICB 45,915,224 MKD 45,915,224 MKD 45,915,224 45,915,224 - - Tetovo sub-loan no. 14 BATO 987,448 987,448 987,448 - - - 60,603,333 60,603,333 - - Tetovo-Street construction 987,448 987,448 987,448 NCB 60,603,333 MKD 60,603,333 MKD 60,603,333 60,603,333 - - Bogovinje sub-loan no.15 276,444 276,444 276,444 - - - 16,969,707 16,969,707 - - Bogovinje- Procurement of communal vehicles 276,444 276,444 276,444 NCB 16,969,707 MKD 16,969,707 MKD 16,969,707 16,969,707 - - Kocani sub-loan no.16 707,709 707,709 707,709 - - - 43,410,279 43,410,279 - - Kocani-Street reconstruction 640,071 640,071 640,071 NCB 39,265,837 MKD 39,265,837-MKD 39,265,837 39,265,837 - - Kocani-Street reconstruction, additional street 67,638 67,638 67,638 NCB 4,144,442 MKD 4,144,442-MKD 4,144,442 4,144,442 - - Lipkovo sub-loan no. 17 226,436 226,436 226,436 - - - 13,887,971 13,887,971 - - Lipkovo-River regulation 226,436 226,436 226,436 NCB 13,887,971 MKD 13,887,971 MKD 13,887,971 13,887,971 - - Dolneni sub-loan no. 19 369,933 369,933 369,933 - - - 22,700,451 22,700,451 - - Dolneni – Street reconstruction 350,707 350,707 350,707 NCB 21,520,451 MKD 21,520,451-MKD 21,520,451 21,520,451 - - Dolneni-Proc. of vehicle 19,226 19,226 19,226 NCB 1,180,000 MKD 1,180,000-MKD 1,180,000 1,180,000 - - Mavrovo Rostushe sub-loan no.20 213,249 213,249 213,249 - - - 13,090,704 13,090,704 - - Mavrovo Rostushe- Road reconstruction 213,249 213,249 213,249 NCB 13,090,704 MKD 13,090,704 MKD 13,090,704 13,090,704 - - Saraj sub-loan no.21 217,602 217,602 217,602 - - - 13,357,782 13,357,782 - - Ministry of Finance of the Republic of North Macedonia 13 “Second Municipal Services Improvement Project” IBRD Loan number 8561-MK Project’s Financial Statements 31 January 2023 and disbursement period to 31 March 2023 Statement of Unit of Output by Project Activity – Loan number 8561-MK (continued) Cumulative for the period from 01 January 2022 through 31 January 2023 and disbursement period to 31 March 2023 Procurement plan amount Contracted in Paid amount in Procurement Contract amount Paid amount Contract amount Paid amount Commitment in Euro Euro equivalent Euro equivalent method original currency original currency local currency local currency contract currency MKD MKD EUR MKD Saraj – Extension of administrative building 217,602 217,602 217,602 NCB 13,357,782 MKD 13,357,782 MKD 13,357,782 13,357,782 - - Strumica sub-loan no.22 1,492,824 1,492,824 1,492,824 - - - 91,599,391 91,599,391 - - Strumica – Water meters and Gas network 1,492,824 1,492,824 1,492,824 NCB 91,599,391 MKD 91,599,391 MKD 91,599,391 91,599,391 - - Novaci sub-loan no.18 276,329 276,329 276,329 - - - 16,962,878 16,962,878 - - Novaci – Procurement of communal vehicles 276,329 276,329 276,329 NCB 16,962,878 MKD 16,962,878 MKD 16,962,878 16,962,878 - - Konce sub-loan no.23 85,486 85,486 85,486 - - - 5,247,719 5,247,719 - - Konce – Street lighting 85,486 85,486 85,486 NCB 5,247,719 MKD 5,247,719 MKD 5,247,719 5,247,719 - - Tetovo sub-loan no.24 BUS 1,182,556 1,182,556 1,182,556 - - - 72,570,000 72,570,000 - - Tetovo – Procurement of buses 721,160 721,160 721,160 NCB 44,267,700 MKD 44,267,700 MKD 44,267,700 44,267,700 - - Tetovo – Proc. of communal vehicles 461,396 461,396 461,396 NCB 28,302,300 MKD 28,302,300 MKD 28,302,300 28,302,300 - - Mogila sub-loan no.25 107,383 107,383 107,383 - - - 6,591,910 6,591,910 - - Mogila – House of Culture 107,383 107,383 107,383 NCB 6,591,910 MKD 6,591,910 MKD 6,591,910 6,591,910 - - Kumanovo sub-loan no.26 959,668 959,668 959,668 - - - 58,820,420 58,820,420 - - Kumanovo – Procurement of communal vehicles 959,668 959,668 959,668 NCB 58,820,420 MKD 58,820,420 MKD 58,820,420 58,820,420 - - Zelenikovo sub-loan no.27 197,887 197,887 197,887 - - - 12,144,440 12,144,440 - - Zelenikovo – Re. of local road 197,887 197,887 197,887 NCB 12,144,440 MKD 12,144,440 MKD 12,144,440 12,144,440 - - Karposh sub-loan no.28 271,385 271,385 271,385 - - - 16,645,654 16,645,654 - - Karposh - Reconstruction of local roads 271,385 271,385 271,385 NCB 16,645,654 MKD 16,645,654 MKD 16,645,654 16,645,654 - - Ministry of Finance of the Republic of North Macedonia 14 “Second Municipal Services Improvement Project” IBRD Loan number 8561-MK Project’s Financial Statements 31 January 2023 and disbursement period to 31 March 2023 Statement of Unit of Output by Project Activity – Loan number 8561-MK (continued) Cumulative for the period from 01 January 2022 through 31 January 2023 and disbursement period to 31 March 2023 Procurement plan amount Contracted in Paid amount in Procurement Contract amount Paid amount Contract amount Paid amount Commitment in Euro Euro equivalent Euro equivalent method original currency original currency local currency local currency contract currency MKD MKD EUR MKD Gjorce Petrov sub- loan no.29 676,371 676,371 676,371 - - - 41,504,413 41,504,413 - - Gjorce Petrov - Construction of roads 676,371 676,371 676,371 NCB 41,504,413 MKD 41,504,413 MKD 41,504,413 41,504,413 - - Sopishte sub-loan no.30 236,399 236,399 236,399 - - - 14,496,684 14,496,684 - - Sopishte- Construction of sewerage network 236,399 236,399 236,399 NCB 14,496,684 MKD 12,632,733 MKD 14,496,684 14,496,684 - - Valandovo sub-loan no.31 46,178 46,178 46,178 - - - 2,833,590 2,833,590 - - Valandovo -Proc of communal vehicles 46,178 46,178 46,178 NCB 2833590 MKD 2833590 MKD 2,833,590 2,833,590 - - Negotino sub-loan no.32 324,246 324,246 324,246 - - - 19,882,919 19,882,919 - - Negotino- Construction of roads 308,384 308,384 308,384 NCB 19,893,030 MKD 18,911,889 MKD 18,911,889 18,911,889 - - Negotino - Additional construstion of street 15,862 15,862 15,862 NCB 971,030 MKD 971,030 MKD 971,030 971,030 - - Cheshinovo- Obleshevo sub-loan no.33 136,333 136,333 136,333 - - - 8,363,536 8,363,536 - - Cheshinovo- Obleshevo - Construction of roads 105,709 105,709 105,709 NCB 6,488,083 MKD 6,488,083 MKD 6,488,083 6,488,083 - - Cheshinovo- Obleshevo – Additional street 30,624 30,624 30,624 NCB 1,875,453 MKD 1,875,453 MKD 1,875,453 1,875,453 - - Chair sub-loan no.34 424,400 424,400 424,400 - - - 26,033,202 26,033,202 - - Chair- Construction of sewerage network 424,400 424,400 424,400 NCB 26,033,202 MKD 26,033,202 MKD 26,033,202 26,033,202 - - Sveti Nikole sub- loan no.35 702,190 702,190 702,190 - - - 43,032,408 43,032,408 - - Sveti Nikole- Consstruction of roads 702,190 702,190 702,190 NCB 43,032,408 MKD 43,032,408 MKD 43,032,408 43,032,408 - - Veles sub-loan no.36 496,418 496,418 496,418 - - - 30,449,516 30,449,516 - - Ministry of Finance of the Republic of North Macedonia 15 “Second Municipal Services Improvement Project” IBRD Loan number 8561-MK Project’s Financial Statements 31 January 2023 and disbursement period to 31 March 2023 Statement of Unit of Output by Project Activity – Loan number 8561-MK (continued) Cumulative for the period from 01 January 2022 through 31 January 2023 and disbursement period to 31 March 2023 Procurement plan amount Contracted in Paid amount in Procurement Contract amount Paid amount Contract amount Paid amount Commitment in Euro Euro equivalent Euro equivalent method original currency original currency local currency local currency contract currency MKD MKD EUR MKD Veles- Reconstruction of city green market 496,418 496,418 496,418 NCB 30,449,516 MKD 30,449,516 MKD 30,449,516 30,449,516 - - Brvenica sub-loan no.37 81,646 81,646 81,646 - - - 5,005,622 5,005,622 - - Brvenica-Procurment of new combined bachoe loader 81,646 81,646 81,646 NCB 5,005,622 MKD 5,005,622 MKD 5,005,622 5,005,622 - - Debar sub-loan no.38 283,930 283,930 283,930 - - - 17,400,000 17,400,000 - - Debar-Strengthening the technical capacity of PCE 283,930 283,930 283,930 NCB 17,400,000 MKD 17,400,000 MKD 17,400,000 17,400,000 - - Other sub-loan municipalities 784,431 - - - - - - - - - Other sub-loan municipalities 784,431 - - - - - - - - - Total Component A 19,490,000 18,705,569 18,705,569 - - - 1,147,120,333 1,147,120,333 - - Component B: Poverty and Social Inclusion Investment Grants Centar Zupa Grant no.01 83,872 83,872 83,872 5,148,603 5,148,603 - - Centar Zupa Grant – Street construction 83,872 83,872 83,872 NCB 5,148,603 MKD 5,148,603 MKD 5,148,603 5,148,603 - - Kavadarci Grant no. 02 223,336 223,336 223,336 13,707,329 13,707,329 - - Kavadarci Grant – Street construction 223,336 223,336 223,336 NCB 13,707,329 MKD 13,707,329 MKD 13,707,329 13,707,329 - - Resen Grant no. 03 96,310 96,310 96,310 5,907,244 5,907,244 - - Resen Grant – School reconstruction 96,310 96,310 96,310 NCB 5,907,244 MKD 5,907,244 MKD 5,907,244 5,907,244 - - Krivogashtani Grant no. 04 12,416 12,416 12,416 761,613 761,613 - - Krivo Grant – Waste containers 8,881 8,881 8,881 NCB 545,160 MKD 545,160 MKD 545,160 545,160 - - Krivogashtani Grant - Waste containers 2nd contract 3,535 3,535 3,535 SH 216,453 MKD 216,453 MKD 216,453 216,453 Ministry of Finance of the Republic of North Macedonia 16 “Second Municipal Services Improvement Project” IBRD Loan number 8561-MK Project’s Financial Statements 31 January 2023 and disbursement period to 31 March 2023 Statement of Unit of Output by Project Activity – Loan number 8561-MK (continued) Cumulative for the period from 01 January 2022 through 31 January 2023 and disbursement period to 31 March 2023 Procurement Commitment in plan amount Contracted in Paid amount in Procurement Contract amount Paid amount Contract amount Paid amount contract Euro Euro equivalent Euro equivalent method original currency original currency local currency local currency currency MKD MKD EUR MKD Studenicani Grant no. 05 71,232 71,232 71,232 - - - 4,372,795 4,372,795 - - Studenicani Grant – Street reconstruction 71,232 71,232 71,232 NCB 4,372,795MKD 4,372,795MKD 4,372,795 4,372,795 - - Zelino Grant no. 06 108,297 108,297 108,297 - - - 6,647,955 6,647,955 - - Zelino Grant – Construction of schools 108,297 108,297 108,297 NCB 6,647,955 MKD 6,647,955 MKD 6,647,955 6,647,955 - - Kocani Grant no. 07 173,136 173,136 173,136 - - - 10,614,838 10,614,838 - - Kocani Grant – Construction of streets 173,136 173,136 173,136 NCB 10,614,838 MKD 10,614,838 MKD 10,614,838 10,614,838 - - Cucer Sandevo Grant no. 08 156,658 156,658 156,658 - - - 9,616,612 9,616,612 - - Cucer Sandevo Grant – Street construction 156,658 156,658 156,658 NCB 9,616,612 MKD 9,616,612 MKD 9,616,612 9,616,612 - - Kisela Voda Grant no. 09 208,424 208,424 208,424 - - - 12,760,703 12,760,703 - - Kisela Voda Grant – Reconstruction of street 208,424 208,424 208,424 NCB 12,760,703 MKD 12,760,703MKD 12,760,703 12,760,703 - - Vrapciste Grant no. 10 135,057 135,057 135,057 - - - 8,265,967 8,265,967 - - Vrapciste Grant Reconstruction of street 135,057 135,057 135,057 NCB 8,265,967 MKD 8,265,967 MKD 8,265,967 8,265,967 - - Mogila Grant no. 11 29,100 29,100 29,100 - - - 1,780,480 1,780,480 - - Mogila Grant – Purchasing of communal vehicle 29,100 29,100 29,100 NCB 1,780,480 MKD 1,780,480 MKD 1,780,480 1,780,480 - - Dolneni Grant no. 12 78,621 78,621 78,621 - - - 4,826,115 4,826,115 - - Dolneni Grant - Purchasing of communal vehicle 78,621 78,621 78,621 NCB 4,826,115 MKD 4,826,115 MKD 4,826,115 4,826,115 - - Novaci Grant no. 13 75,136 75,136 75,136 - - - 4,612,362 4,612,362 - - Novaci Grant - Purchasing of communal vehicle 75,136 75,136 75,136 NCB 4,612,362 MKD 4,612,362 MKD 4,612,362 4,612,362 - - Ministry of Finance of the Republic of North Macedonia 17 “Second Municipal Services Improvement Project” IBRD Loan number 8561-MK Project’s Financial Statements 31 January 2023 and disbursement period to 31 March 2023 Cumulative for the period from 01 January 2022 through 31 January 2023 and Statement of Unit of Output by Project Activity – Loan number 8561-MK (continued) disbursement period to 31 March 2023 Procurement Commitment in plan amount Contracted in Paid amount in Procurement Contract amount Paid amount Contract amount Paid amount contract Euro Euro equivalent Euro equivalent method original currency original currency local currency local currency currency MKD MKD EUR MKD Konce Grant no. 14 20,556 20,556 20,556 - - - 1,261,035 1,261,035 - - Konce Grant - Purchasing of communal vehicle 20,556 20,556 20,556 NCB 1,261,035 MKD 1,261,035 MKD 1,261,035 1,261,035 - - Delcevo Grant no. 15 117,537 117,537 117,537 - - - 7,191,824 7,191,824 - - Delcevo Grant – Purchasing of PP vehicle 117,537 117,537 117,537 NCB 7,191,824 MKD 7,191,824 MKD 7,191,824 7,191,824 - - Mavrovo Rostus. Grant no.16 50,564 50,564 50,564 - - - 3,103,930 3,103,930 - - Mavrovo Rostushe Grant – Street reconstruction 50,564 50,564 50,564 NCB 3,103,930 MKD 3,103,930 MKD 3,103,930 3,103,930 - - Kisela Voda Grant no.17 161,033 161,033 161,033 - - - 9,873,367 9,873,367 - - Kisela Voda Grant- Reconstruction of street 161,033 161,033 161,033 NCB 9,873,367 MKD 9,873,367 MKD 9,873,367 9,873,367 - - Kavadarci Grant no.18 51,417 51,417 51,417 - - - 3,152,228 3,152,228 - - Kavadarci Grant- Rec. of water supply network 51,417 51,417 51,417 NCB 3,152,228 MKD 3,152,228 MKD 3,152,228 3,152,228 - - Lipkovo Grant no.19 61,275 61,275 61,275 - - - 3,751,334 3,751,334 - - Lipkovo Grant- Reconstruction of local roads 61,275 61,275 61,275 NCB 3,751,334 MKD 3,751,334 MKD 3,751,334 3,751,334 - - Tetovo Grant no.20 430,850 430,850 430,850 - - - 26,446,389 26,446,389 - - Tetovo Grant- Procurment of communal vehicles 430,850 430,850 430,850 NCB 26,446,389 MKD 26,446,389 MKD 26,446,389 26,446,389 - - Gazi Baba Grant no.21 298,278 298,278 298,278 - - - 18,300,460 18,300,460 - - Gazi Baba Grant- Construction of sewerage networks 298,278 298,278 298,278 NCB 18,300,460 MKD 18,300,460 MKD 18,300,460 18,300,460 - - Strumica Grant no.22 374,186 374,186 374,186 - - - 22,941,005 22,941,005 - - Ministry of Finance of the Republic of North Macedonia 18 “Second Municipal Services Improvement Project” IBRD Loan number 8561-MK Project’s Financial Statements 31 January 2023 and disbursement period to 31 March 2023 Statement of Unit of Output by Project Activity – Loan number 8561-MK (continued) Cumulative for the period from 01 January 2022 through 31 January 2023 and disbursement period 31 March 2023 Procurement Commitment in plan amount Contracted in Paid amount in Procurement Contract amount Paid amount Contract amount Paid amount contract Euro Euro equivalent Euro equivalent method original currency original currency local currency local currency currency MKD MKD EUR MKD Strumica Grant- Construction of streets 374,186 374,186 374,186 NCB 22,941,005 MKD 22,941,005 MKD 22,941,005 22,941,005 - - Pehcevo Grant no.23 25,852 25,852 25,852 - - - 1,586,974 1,586,974 - - Pehcevo Grant- Construction of local roads 25,852 25,852 25,852 NCB 1,586,974 MKD 1,586,974 MKD 1,586,974 1,586,974 - - Kriva Palanka Grant no.24 98,204 98,204 98,204 - - - 6,024,166 6,024,166 - - Kriva Palanka Grant - River regulation 98,204 98,204 98,204 NCB 6,024,177 MKD 6,024,177 MKD 6,024,166 6,024,166 - - Chesinovo- Oblesevo Grant no.25 27,774 27,774 27,774 - - - 1,700,000 1,700,000 - - Chesinovo-Oblesevo Grant-Proc.of communal vehicle 27,774 27,774 27,774 NCB 1,700,000 MKD 1,700,000 MKD 1,700,000 1,700,000 - - Valandovo Grant no.26 12,323 12,323 12,323 - - - 754,692 754,692 - - Valandovo Grant- Procurement of containers, bins 12,323 12,323 12,323 NCB 754,692 MKD 754,692 MKD 754,692 754,692 - - Gjorce Petrov Grant no.27 134,617 134,617 134,617 - - - 8,248,305 8,248,305 - - Gjorce Petrov Grant- Soft and hard landscaping 67,632 67,632 67,632 NCB 4,148,305 MKD 4,148,305 MKD 4,148,305 4,148,305 - - Gjorce Petrov Grant- Proc. of communal vehicle 66,985 66,985 66,985 NCB 4,100,000 MKD 4,100,000 MKD 4,100,000 4,100,000 - - Sopishte Grant no.28 60,450 60,450 60,450 - - - 3,700,000 3,700,000 - - Sopishte Grant- Procurement of communal vehicle 60,450 60,450 60,450 NCB 3,700,000 MKD 3,700,000 MKD 3,700,000 3,700,000 - - Negotino Grant no.29 60,404 60,404 60,404 - - - 3,695,970 3,695,970 - - Negotino Grant- Construction of street 60,404 60,404 60,404 NCB 3,695,970 MKD 3,695,970 MKD 3,695,970 3,695,970 - - Zelenikovo Grant no.31 39,326 39,326 39,326 - - - 2,407,094 2,407,094 - - Ministry of Finance of the Republic of North Macedonia 19 “Second Municipal Services Improvement Project” IBRD Loan number 8561-MK Project’s Financial Statements 31 January 2023 and disbursement period to 31 March 2023 Statement of Unit of Output by Project Activity – Loan number 8561-MK (continued) Cumulative for the period from 01 January 2022 through 31 January 2023 and disbursement period 31 March 2023 Procurement Commitment in plan amount Contracted in Paid amount in Procurement Contract amount Paid amount Contract amount Paid amount contract Euro Euro equivalent Euro equivalent method original currency original currency local currency local currency currency MKD MKD EUR MKD Zelenikovo Grant- Procurement of communal vehicle 39,326 39,326 39,326 NCB 2,407,094 MKD 2,407,094 MKD 2,407,094 2,407,094 - - Brvenica Grant no.32 22,395 22,395 22,395 - - - 1,372,099 1,372,099 - - Brvenica Grant- Procurement of communal vehicle 22,395 22,395 22,395 NCB 1,372,099 MKD 1,372,099 MKD 1,372,099 1,372,099 - - Sveti Nikole Grant no.34 92,631 92,631 92,631 - - - 5,677,403 5,677,403 - - Sveti Nikole Grant- Project of water supply 92,631 92,631 92,631 NCB 5,677,403 MKD 5,677,403 MKD 5,677,403 5,677,403 - - Karpos Grant no.35 53,595 53,595 53,595 - - - 3,290,000 3,290,000 - - Karpos Grant- Procurement of vehicle 53,595 53,595 53,595 NCB 3,290,000 MKD 3,290,000 MKD 3,290,000 3,290,000 - - Veles Grant no.30 172,277 172,277 172,277 - - - 10,563,386 10,563,386 - - Veles Grant-Water supply system 139,558 139,558 139,558 NCB 8,554,886 MKD 8,554,886 MKD 8,554,886 8,554,886 - - Veles Grant-Proc. of vehicle 32,719 32,719 32,719 NCB 2,008,500 MKD 2,008,500 MKD 2,008,500 2,008,500 - - Chair Grant no.33 147,257 147,257 147,257 - - - 9,020,406 9,020,406 - - Chair Grant-Rec. of water network and sewage 147,257 147,257 147,257 NCB 9,020,406 MKD 9,020,406 MKD 9,020,406 9,020,406 - - Delcevo Grant no.36 22,716 22,716 22,716 - - - 1,394,440 1,394,440 - - Delcevo Grant-Proc. And installation of LED diode 22,716 22,716 22,716 NCB 1,394,440 MKD 1,394,440 MKD 1,394,440 1,394,440 - - Tetovo Grant no.40 100,999 100,999 100,999 - - - 6,200,000 6,200,000 - - Tetovo Grant - Procurement od special vehicles 100,999 100,999 100,999 NCB 6,200,000 MKD 6,200,000 MKD 6,200,000 6,200,000 - - Sopishte Grant no.40 3,463 3,463 3,463 - - - 212,400 212,400 - - Sopishte Grant- Procurement of plastic bins 3,463 3,463 3,463 NCB 212,400 MKD 212,400 MKD 212,400 212,400 - - Debar Grant no.39 63,438 63,438 63,438 - - - 3,890,000 3,890,000 - - Ministry of Finance of the Republic of North Macedonia 20 “Second Municipal Services Improvement Project” IBRD Loan number 8561-MK Project’s Financial Statements 31 January 2023 and disbursement period to 31 March 2023 Cumulative for the period from 01 January 2022 through 31 January 2023 and Statement of Unit of Output by Project Activity – Loan number 8561-MK (continued) disbursement period 31 March 2023 Procurement Commitment in plan amount Contracted in Paid amount in Procurement Contract amount Paid amount Contract amount Paid amount contract Euro Euro equivalent Euro equivalent method original currency original currency local currency local currency currency MKD MKD EUR MKD Debar Grant- Procurement of communal vehicle 63,438 63,438 63,438 NCB 3,890,000 MKD 3,890,000 MKD 3,890,000 3,890,000 - - Kumanovo Grant no.38 274,633 274,633 274,633 - - - 16,857,600 16,857,600 - - Kumanovo Grant- Procurement of communal vehicle 274,633 274,633 274,633 NCB 16,857,600 MKD 16,857,600 MKD 16,857,600 16,857,600 - - Other grant municipalities 187,855 - - - - - - - - - Other grant municipalities 187,855 - - - - - - - - - Total Component B - Poverty and Social Inclusion Investment Grants 4,617,500 4,429,647 4,429,647 - - - 271,639,123 271,639,123 - - Ministry of Finance of the Republic of North Macedonia 21 “Second Municipal Services Improvement Project” IBRD Loan number 8561-MK Project’s Financial Statements 31 January 2023 and disbursement period to 31 March 2023 Statement of Unit of Output by Project Activity – Loan number 8561-MK (continued) Cumulative for the period from 01 January 2022 through 31 January 2023 and disbursement period to 31 March 2023 Contract Procurement Paid amount in amount Paid amount Contract plan amount Contracted in Euro Procurement original original amount local Paid amount Commitment in contract Euro Euro equivalent equivalent method currency currency currency local currency currency MKD MKD EUR MKD Component C: Project Management, Capacity Building, Monitoring and Evaluation Capacity building of participating municipalities UA consultant 13,400 13,400 13,400 SIC 13,400 EUR 13,400 EUR 821,065 821,065 - - IBNET consultant Bojan 4,207 4,207 4,207 SIC 4,250 EUR 4,207 EUR 257,943 257,943 - - PADs Preparation 73,593 73,593 73,593 CQ 73,593 EUR 73,593 EUR 4,504,899 4,504,899 - - IBNET consultant Jane 4,250 4,250 4,250 SIC 4,250 EUR 4,250 EUR 260,702 260,702 - - PADs preparation 2nd ADI 30,050 30,050 30,050 CQ 30,050 EUR 30,050 EUR 1,843,147 1,843,147 - - PADs preparation 3rd ZMAI 43,750 43,750 43,750 CQ 43,750 EUR 43,750 EUR 2,682,840 2,682,840 - - UA Marjan Nikolov 5,800 5,800 5,800 SIC 5,800 EUR 5,800 EUR 355,292 355,292 - - UA Vesna Gavranlieva 5,400 5,400 5,400 SIC 5,400 EUR 4,400 EUR 331,029 331,029 - - Project management, Monitoring and Evaluation FA Ljubica Patlidzankovska 7,000 7,000 7,000 SIC 7,000 EUR 7,000 EUR 429,091 429,091 - - 39,362.14 Lead Project Coordinator 54,362 54,362 54,362 SIC 54,362 EUR EUR 3,334,623 3,334,623 - - 28,076.79 FM Specialist 28,077 28,077 28,077 SIC 28,077 EUR EUR 1,722,942 1,722,942 - - FM Assistant/ FM Specialist SS 33,100 33,100 33,100 SIC 33,103 EUR 33,100 EUR 2,029,934 2,029,934 - - Procurement and Legal 40,219.38 Coordinator 40,219 40,219 40,219 SIC 40,219 EUR EUR 2,466,762 2,466,762 - - 26,392.75 Procurement Assistant 26,392 26,392 26,392 SIC 26,392 EUR EUR 1,618,737 1,618,737 - - Construction Coordinator/ Construction Engineer RP 51,482 51,482 51,482 SIC 51,482 EUR 51,482.4 EUR 3,158,023 3,158,023 - - Construction Engineer JZB 44,483 44,483 44,483 SIC 44,483 EUR 44,482.8-EUR 2,728,590 2,728,590 - - 31,405.92 Construction Engineer GT 31,406 31,406 31,406 SIC 31,406 EUR EUR 1,926,941 1,926,941 - - Ministry of Finance of the Republic of North Macedonia 22 “Second Municipal Services Improvement Project” IBRD Loan number 8561-MK Project’s Financial Statements 31 January 2023 and disbursement period to 31 March 2023 Statement of Unit of Output by Project Activity – Loan number 8561-MK (continued) Cumulative for the period from 01 January 2022 through 31 January 2023 and disbursement period to 31 March 2023 Contract Procurement Paid amount in amount Paid amount Contract plan amount Contracted in Euro Procurement original original amount local Paid amount Commitment in contract Euro Euro equivalent equivalent method currency currency currency local currency currency MKD MKD EUR MKD Construction Engineer/ Construction Coordinator 43,267.83 JT 43,268 43,268 43,268 SIC 43,268 EUR EUR 2,653,942 2,653,942 - - Construction Engineer BM 6,430 6,430 6,430 SIC 6,430 EUR 6,430 EUR 394,636 394,636 - - 32,841.68 Construction Engineer RL 32,842 32,842 32,842 SIC 32,842 EUR EUR 2,014,268 2,014,268 - - 32,841.68 Construction Engineer FM 32,842 32,842 32,842 SIC 32,842 EUR EUR 2,014,267 2,014,267 - - 36,959.21 Environmental specialist 36,959 36,959 36,959 SIC 36,959 EUR EUR 2,266,973 2,266,973 - - Office Manager/Translator 24,200 24,200 24,200 SIC 24,200 EUR 24,200 EUR 1,484,224 1,484,224 - - Admin./Oper. Assistant/Construction Engineer ZD 34,706 34,706 34,706 SIC 34,706 EUR 34,705.7 EUR 2,128,477 2,128,477 - - Economy and Procurement Associate 21,694.01 TS 21,694 21,694 21,694 SIC 21,694 EUR EUR 1,330,546 1,330,546 - - Communication Analyst VG 16,100 16,100 16,100 SIC 16,100 EUR 16,100 EUR 987,458 987,458 - - 1,287,950 Audit 23,800 21,081 15,456 LCS MKD 946,928 MKD 1,287,950 946,928 5,626* 341,022* Administrative/Operational 10,159.09 Assistent 10,159 10,159 10,159 SIC 10,159 EUR EUR 622,943 622,943 - - 2,075,474 2,075,474.21 Operating costs 49,929 34,328 34,328 NA MKD MKD 2,106,280 2,106,280 - - Training for MSIP staff 100 100 100 Training 6,130 MKD 6,130 MKD 6,130 6,130 - - Total Component C - Project Management, Capacity Building, Monitoring and Evaluation 830,000 813,811 806,555 49,905,738 49,398,826 5,626 341,022 Front-end fee Original Loan 62,500 62,500 62,500 Total Project Expenditure 25,000,000 24,009,396 24,003,771 1,468,530,110 1,468,189,088 5,626 341,022 *See Note 4 Commitments Ministry of Finance of the Republic of North Macedonia 23 “Second Municipal Services Improvement Project” IBRD Loan number 8561-MK Project’s Financial Statements 31 January 2023 and disbursement period to 31 March 2023 Statement of Breakdown of Loans and Grants - Loan number 8561-MK (Amounts in EUR) Cumulative for the period from 01 January 2022 through 31 March 2023 and disbursement period to 31 March 2023 Paid Payment Loan/grant Remaining Outstanding Municipality Loan/grant No. / Date loan/Grant requests amount balance payments amount processed Component A: Municipal Investments Centar Zupa sub-loan no.01 Sub-loan no.01 / September 10,2018 315,405 315,405 - - - Centar Zupa - Construction of local road 315,405 315,405 - - - Zelino sub-loan no.02 Sub-loan no.02 / September 10,2018 498,080 498,080 - - - Zelino - Construction of local road and school 498,080 498,080 - - - Studenicani sub-loan no.03 Sub-loan no.03 / September 10,2018 276,882 276,882 - - - Studenicani - Construction of local street 276,882 276,882 - - - Kisela Voda sub-loan no.04 Sub-loan no.04 / September 10,2018 1,662,209 1,662,209 - - - Kisela Voda - Storm water network const. 799,873 799,873 - - - Kisela Voda - Additional streets 642,439 642,439 - - - Kisela Voda - Remaining sub-loan funds 219,897 219,897 - - - Kavadarci sub-loan no.05 Sub-loan no.05 / September 10,2018 1,043,423 1,043,423 - - - Kavadarci - Construction of local streets 867,244 867,244 - - - Kavadarci - Remaining sub-loan funds 176,179 176,179 - - - Resen sub-loan no.06 Sub-loan no.06 / September 10,2018 481,942 481,942 - - - Resen - Construction of local streets 481,942 481,942 - - - Krivogashtani sub-loan no.07 Sub-loan no.07 / December 28,2018 43,471 43,471 - - - Krivogashtani - Street lighting 43,471 43,471 - - - Gazi Baba sub-loan no.08 Sub-loan no.08 / December 28,2018 1,174,039 1,174,039 - - - Gazi Baba - Construction of sewerage system 1,174,039 1,174,039 - - - Ministry of Finance of the Republic of North Macedonia 24 “Second Municipal Services Improvement Project” IBRD Loan number 8561-MK Project’s Financial Statements 31 January 2023 and disbursement period to 31 March 2023 (Amounts in EUR) Statement of Breakdown of Loans and Grants - Loan number 8561-MK (continued) Cumulative for the period from 01 January 2022 through 31 March 2023 and disbursement period to 31 March 2023 Paid Payment Loan/grant Remaining Outstanding Municipality Loan/grant No. / Date loan/Grant requests amount balance payments amount processed Pehcevo sub-loan no. 09 Sub-loan no.09 / June 25,2019 96,108 96,108 - - - Pehcevo – Streets reconstruction 96,108 96,108 - - - Vrapciste sub-loan no.10 Sub-loan no.10 / June 25,2019 498,721 498,721 - - - Vrapciste – Water supply 498,721 498,721 - - - Delcevo sub-loan no.11 Sub-loan no.09 / June 25,2019 525,458 525,458 - - - Delcevo – Street reconstruction 439,645 439,645 - - - Delcevo- Additional financing 85,813 85,813 - Kriva Palanka sub-loan no.12 Sub-loan no.12 /November 14,2019 361,138 361,138 - - - Kriva Palanka – River regulation 361,138 361,138 - - - Cucer Sandevo sub-loan no.13 Sub-loan no.13 /July 25,2019 748,243 748,243 - - - Cucer Sandevo – Reconstruction of road 748,243 748,243 - - - Tetovo sub-loan no.14 BATO Sub-loan no.14 /August 20,2019 987,448 987,448 - - - Tetovo – Street construction 987,448 987,448 - - - Bogovinje sub-loan no.15 Sub-loan no.15 /July 25,2019 276,444 276,444 - - - Bogovinje – Procurement of communal vehicles 276,444 276,444 - - - Kocani sub-loan no.16 Sub-loan no.16 /August 20,2019 707,709 707,709 - - - Kocani – Street reconstruction 640,071 640,071 - - - Remaining amount 67,638 67,638 - - - Lipkovo sub-loan no.17 Sub-loan no.17 /December 02,2019 226,436 226,436 - - - Lipkovo – River regulation 226,436 226,436 - - - Dolneni sub-loan no.19 Sub-loan no.19 /December 13,2019 369,933 369,933 - - - Dolneni – Street reconstruction 350,707 350,707 - - - Remaining amount 19,226 19,226 - - - Mavrovo Rostushe sub-loan no.20 Sub-loan no.20 /December 18,2019 213,249 213,249 - - - Mavrovo Rostushe – Road reconstruction 213,249 213,249 - - - Saraj sub-loan no.21 Sub-loan no.21 /December 12,2019 217,602 217,602 - - - Saraj – Extension of administrative building 217,602 217,602 - - - Strumica sub-loan no.22 Sub-loan no.22 /December 26,2019 1,492,824 1,492,824 - - - Strumica – Water meters and Gas network 1,492,824 1,492,824 - - - Novaci sub-loan no.18 Sub-loan no.18 /December 25,2019 276,329 276,329 - - - Novaci – Procurement of communal vehicles 276,329 276,329 - - - Konce sub-loan no.23 Sub-loan no.23 /December 11,2019 85,486 85,486 - - - Konce – Street lighting 85,486 85,486 - - - Ministry of Finance of the Republic of North Macedonia 25 “Second Municipal Services Improvement Project” IBRD Loan number 8561-MK Project’s Financial Statements 31 January 2023 and disbursement period to 31 March 2023 Statement of Breakdown of Loans and Grants - Loan number 8561-MK (continued) (Amounts in EUR) Cumulative for the period from 01 January 2022 through 31 March 2023 and disbursement period to 31 March 2023 Paid Payment Loan/grant Remaining Outstanding Municipality Loan/grant No. / Date loan/Grant requests amount balance payments amount processed Tetovo sub-loan no.24 BUS Sub-loan no.24 /December 31,2019 1,182,556 1,182,556 - - - Tetovo – Procurement of buses 721,160 721,160 - - - Tetovo – Procurement of communal vehicle and containters 461,396 461,396 - - - Mogila sub-loan no. 25 Sub-loan no.25 /December 27,2019 107,383 107,383 - - - Mogila – House of Culture 107,383 107,383 - - - Kumanovo sub-loan no. 26 Sub-loan no.26 /December 30,2020 959,668 959,668 - - - Kumanovo – Procurement of communal vehicles 959,668 959,668 - - - Zelenikovo sub-loan no.27 Sub loan no.27 / March 25,2021 197,887 197,887 - - - Zelenikovo - Reconstruction of local roads 197,887 197,887 - - - Karposh sub-loan no.28 Sub loan no.28/ April 15,2021 271,385 271,385 - - - Karposh - Reconstruction of local roads 271,385 271,385 - - - Gjorce Petrov sub-loan no.29 Sub-loan no.29/ April 12.2021 676,371 676,371 - - - Gjorce Petrov - Construction of roads 676,371 676,371 - - - Sopishte sub-loan no.30 Sub-loan no.30/ April 01.2021 236,399 236,399 - - - Sopishte- Construction of sewerage network 236,399 236,399 - - - Valandovo sub-loan no.31 Sub-loan no.31/ April 02.2021 46,178 46,178 - - - Valandovo- Procurment of communal vehicles 46,178 46,178 - - - Negotino sub-loan no.32 Sub-loan no.32/ May 05,2021 324,246 324,246 - - - Negotino- Construction of roads 308,384 308,384 - - - Negotino- Additional constraction of street (loan+grant) 15,862 15,862 - - - Chesinovo-Obleshevo sub-loan no.33 Sub-loan no.33 / May 05.2021 136,333 136,333 - - - Chesinovo-Obleshevo - Construction of roads 105,709 105,709 - - - Remaining amount 30,624 30,624 - - - Chair sub-loan no.34 Sub-loan no.34/ May 05.2021 424,400 424,400 - - - Chair - Construction of sewerage network 424,400 424,400 - - - Sveti Nikole sub-loan no.35 Sub-loan no.35/ May 05.2021 702,190 702,190 - - - Sveti Nikole- Construction of roads 702,190 702,190 - - - Veles sub-loan no.36 Sub-loan no.36/ May 05.2021 496,418 496,418 - - - Veles- Reconstruction of city green market 496,418 496,418 - - - Brvenica sub-loan no.37 Sub-loan no.37/ May 05.2021 81,646 81,646 - - - Brvenica- Procurment of new combined backhoe loader 81,646 81,646 - - - Debar sub-loan no.38 Sub-loan no.38/ December 30.2021 283,930 283,930 - - - Debar- Strengthening the technical capacity 283,930 283,930 - - - Other sub-loan municipalities 784,431 - 784,431 - - Other sub-loan municipalities 784,431 - 784,431 - - Total Component A: Municipal Investments 19,490,000 18,705,569 784,431 - - Ministry of Finance of the Republic of North Macedonia 26 “Second Municipal Services Improvement Project” IBRD Loan number 8561-MK Project’s Financial Statements 31 January 2023 and disbursement period to 31 March 2023 Statement of Breakdown of Loans and Grants - Loan number 8561-MK (continued) (Amounts in EUR) Cumulative for the period from 01 January 2022 through 31 March 2023 and disbursement period to 31 March 2023 Paid Payment Loan/grant Remaining Outstanding Municipality Loan/grant No. / Date loan/Grant requests amount balance payments amount processed Component B: Poverty and Social Inclusion Investment Grants Centar Zupa Grant no.01 Grant no.01 / December 31,2019 83,872 83,872 - - - Centar Zupa Grant – Street construction 83,872 83,872 - - - Kavadarci Grant no. 02 Grant no.02 / February 14,2020 223,336 223,336 - - - Kavadarci Grant – Street construction 223,336 223,336 - - - Resen Grant no. 03 Grant no.03 / May 29,2020 96,310 96,310 - - - Resen Grant – School reconstruction 96,310 96,310 - - - Krivogashtani Grant no. 04 Grant no.04 / May 29,2020 12,416 12,416 - - - Krivogashtani Grant – Waste containers 8,881 8,881 - - - Remianing amount 3,535 3,535 - - - Studenicani Grant no. 05 Grant no.05 / May 29,2020 71,232 71,232 - - - Studenicani Grant – Street reconstruction 71,232 71,232 - - - Zelino Grant no. 06 Grant no.06 / May 29,2020 108,297 108,297 - - - Zelino Grant – Construction of schools 108,297 108,297 - - - Kocani Grant no. 07 Grant no.07 / May 29,2020 173,136 173,136 - - - Kocani Grant – Construction of streets 173,136 173,136 - - - Cucer Sandevo Grant no. 08 Grant no.08 / May 29,2020 156,658 156,658 - - - Cucer Sandevo Grant – Street construction 156,658 156,658 - - - Kisela Voda Grant no. 09 Grant no.09 / May 29,2020 208,424 208,424 - - - Kisela Voda Grant – Reconstruction of street 208,424 208,424 - - - Vrapciste Grant no. 10 Grant no.10 / October 8,2020 135,057 135,057 - - - Vrapciste Grant – Reconstruction of street 135,057 135,057 - - - Mogila Grant no. 11 Grant no.11 / October 8,2020 29,100 29,100 - - - Mogila Grant – Purchasing of communal vehicle 29,100 29,100 - - - Dolneni Grant no. 12 Grant no.12 / October 8,2020 78,621 78,621 - - - Dolneni Grant - Purchasing of communal vehicle 78,621 78,621 - - - Novaci Grant no. 13 Grant no.13 / October 16,2020 75,136 75,136 - - - Novaci Grant - Purchasing of communal vehicle 75,136 75,136 - - - Konce Grant no. 14 Grant no.14 / November 23,2020 20,556 20,556 - - - Konce Grant - Purchasing of communal vehicle 20,556 20,556 - - - Delcevo Grant no. 15 Grant no.15 / November 17,2020 117,537 117,537 - - - Delcevo Grant – Purchasing of PP vehicle 117,537 117,537 - - - Mavrovo Rostushe Grant no. 16 Grant no.16 / November 16,2020 50,564 50,564 - - - Mavrovo Rostushe Grant – Street reconstruction 50,564 50,564 - - - Kisela Voda Grant no.17 Grant no.17/ March 18,2021 161,033 161,033 - - - Kisela Voda Grant- Reconstruction of street 161,033 161,033 - - - Ministry of Finance of the Republic of North Macedonia 27 “Second Municipal Services Improvement Project” IBRD Loan number 8561-MK Project’s Financial Statements 31 January 2023 and disbursement period to 31 March 2023 Statement of Breakdown of Loans and Grants - Loan number 8561-MK (continued) (Amounts in EUR) Cumulative for the period from 01 January 2022 through 31 March 2023 and disbursement period to 31 March 2023 Paid Payment Loan/grant Remaining Outstanding Municipality Loan/grant No. / Date loan/Grant requests amount balance payments amount processed Kavadarci Grant no.18 Grant no.18/ March 17,2021 51,417 51,417 - - - Kavadarci Grant- Reconstruction of water supply network 51,417 51,417 - - - Lipkovo Grant no.19 Grant no. 19/ March 24, 2021 61,275 61,275 - - - Lipkovo Grant-Reconstruction of local roads 61,275 61,275 - - - Tetovo Grant no.20 Grant no.20/ March 18,2021 430,850 430,850 - - - Tetovo Grant- Procurment of communal vehicles 430,850 430,850 - - - Gazi Baba Grant no.21 Grant no.21/ April 24, 2021 298,278 298,278 - - - Gazi Baba Grant- Construction of sewerage networks 298,278 298,278 - - - Strumica Grant no.22 Grant no.22/ April 23, 2021 374,186 374,186 - - - Strumica Grant- Construction of streets 374,186 374,186 - - - Pehcevo Grant no.23 Grant no.23/ May 05,2021 25,852 25,852 - - - Pehcevo Grant-Construction of local road 25,852 25,852 - - - Kriva Palanka Grant no.24 Grant no.24/ July 02,2021 98,204 98,204 - - - Kriva Palanka Grant-River Regulation 98,204 98,204 - - - Chesinovo-Obleshevo Grant no.25 Grant no.25/ December 22.2021 27,774 27,774 - - - Cheshinovo-Obleshevo Grant-Proc. Of communal vehiscle 27,774 27,774 - - - Valandovo Grant no.26 Grant no.26/ December 27.2021 12,323 12,323 - - - Valandovo Grant- Procurement of containers, bins 12,323 12,323 - - - Gjorce Petrov Grant no.27 Grant no.27/ December 23.2021 134,617 134,617 - - - Gjorce Petrov Grant-Soft and hard landscape 67,632 67,632 - - - Gjorce Petrov grant- Proc. Of communal vehicle 66,985 66,985 - - - Sopishte Grant no.28 Grant no.28/ December 23,2021 60,450 60,450 - - - Sopishte Grant- Procurement of communal vehicle 60,450 60,450 - - - Negotino Grant no.29 Grant no.29/ December 31,2021 60,404 60,404 - - - Negotino Grant- Construction of street 60,404 60,404 - - - Veles Grant no.30 Grant no.30/ January 14,2022 172,277 172,277 - - - Veles Grant -Water supply 139,558 139,558 - - - Veles Grant-Proc. of vehicle 32,719 32,719 - - - Zelenikovo Grant no.31 Grant no. 31/ December 29,2021 39,326 39,326 - - - Zelenikovo Grant- Procurement of communal vehicle 39,326 39,326 - - - Brvenica Grant no.32 Grant no.32/ December 31,2021 22,395 22,395 - - - Brvenica Grant- Procurement of communal vehicle 22,395 22,395 - - - Chair Grant no.33 Grant no.33/ January 3,2022 147,257 147,257 - - - Chair Grant-Rec. of water network and sewerage 147,257 147,257 - - - Sveti Nikole Grant no.34 Grant no.34/ December 30,2021 92,631 92,631 - - - Sveti Nikole Grant-Project of water supply 92,631 92,631 - - - Karpos Grant no.3 Grant no.35/ December 30,2021 53,595 53,595 - - - Ministry of Finance of the Republic of North Macedonia 28 “Second Municipal Services Improvement Project” IBRD Loan number 8561-MK Project’s Financial Statements 31 January 2023 and disbursement period to 31 March 2023 Statement of Breakdown of Loans and Grants - Loan number 8561-MK (continued) (Amounts in EUR) Cumulative for the period from 01 January 2022 through 31 March 2023 and disbursement period to 31 March 2023 Paid Payment Loan/grant Remaining Outstanding Municipality Loan/grant No. / Date loan/Grant requests amount balance payments amount processed Karpos Grant-Procurement of vehicle 53,595 53,595 - - - Delcevo Grant no.35 Grant no.36/ May 12,2022 22,716 22,716 - - - Delcevo Grant-Proc. and installation of LE diode lamps 22,716 22,716 - - - Tetovo Grant no.37 Grant no.37/ May 18,2022 100,999 100,999 - - - Tetovo Grant-Proc. of communal vehicles 100,999 100,999 - - - Sopishte Grant no.40 3,463 3,463 - - - Sopishte Grant-Proc. of plastic bins 3,463 3,463 - - - Debar Grant no.39 63,438 63,438 - - - Debar Grant-Proc. of communal vehicle 63,438 63,438 - - - Kumanovo Grant no.38 274,633 274,633 - - - Kumanovo Grant-Proc. of communal vehicle 274,633 274,633 - - - Other grant municipalities 187,855 - 187,855 - - Other grant municipalities 187,855 - 187,855 - - Total Component B - Poverty and Social Inclusion Investment Grants 4,617,500 4,429,645* 187,855 *Difference of 2 Eur, is due to rounding of numbers Ministry of Finance of the Republic of North Macedonia 29 “Second Municipal Services Improvement Project” IBRD Loan number 8561-MK Project’s Financial Statements 31 January 2023 and disbursement period 31 March 2023 Statement of Withdrawals – Designated Accounts (Amounts in EUR) 01 January 2022 through 31 January 2023 and disbursement period to 31 March 2023 Application # and date Total Total Requested Received Difference MSIP2 8561-MK #21/ 22 December 2021 356,301 356,301 - #22/ 04 March 2022 1,104,313 1,104,313 - #23/ 23 March 2022 1,110,608 1,110,608 - #24/ 20 June 2022 860,546 860,546 - #25/ 16 August 2022 858,723 858,723 - #26/ 28 September 2022 1,110,915 1,110,915 - #27/ 28 December 2022 1,139,911 1,139,911 - 6,541,317 6,541,317 - Ministry of Finance of the Republic of North Macedonia 30 “Second Municipal Services Improvement Project” IBRD Loan number 8561-MK Project’s Financial Statements 31 January 2023 and disbursement period 31 March 2023 Statement of Withdrawals - Designated Accounts (continued) (Amounts in EUR) 01 January 2021 through 31 December 2021 Application # and date Total Total Requested Received Difference MSIP2 8561-MK #13/ 13 January 2021 1,066,333 1,066,333 - #14/ 30 January 2021 971,303 971,303 - #15/ 17 March 2021 827,814 827,814 - #16/ 7 April 2021 1,208,891 1,208,891 - #17/ 28 May 2021 711,895 711,895 - #18/ 28 July 2021 1,007,995 1,007,995 - #19/ 2 December 2021 1,041,922 1,041,922 - #20/ 22 December 2021 925,031 925,031 - 7,761,184 7,761,184 - On 11 January 2022, Ministry of Finance of the Republic of North Macedonia has returned withdrawn but unspent funds to IBRD for Loan number 8561-MK in the amount of 356,301 EUR. Ministry of Finance of the Republic of North Macedonia 31 “Second Municipal Services Improvement Project” IBRD Loan number 8561-MK Project’s Financial Statements 31 January 2023 and disbursement period 31 March 2023 Statement of Designated Accounts – EUR Account number 00-701-0001627.1 Depository Bank National Bank of the Republic of North Macedonia Blvd Kuzman Josifovski Pitu 1, 1000 Skopje, Republic of North Address Macedonia Loan Number 8561-MK Currency EUR (Amounts in EUR) For the period from 01 January 2022 through 31 January 2023 and disbursement period to 01 January 2021 through 31 March 2023 31 December 2021 At 01 January 318,963 368,504 Add: Inflows Replenishment during the period 6,540,817 7,761,184 6,540,817 7,761,184 Deduct: Outflows Transfer to treasury account (Mirror designated account) - MKD (6,399,081) (7,810,725) (6,399,081) (7,810,725) At 31 January 2023 / 31 December 2022 460,700 318,963 Ministry of Finance of the Republic of North Macedonia 32 “Second Municipal Services Improvement Project” IBRD Loan number 8561-MK Project’s Financial Statements 31 January 2023 and disbursement period 31 March 2023 Statement of Treasury Accounts (Mirror Designated Accounts) – MKD Account number 090010016778690 Depository Bank National Bank of the Republic of North Macedonia Blvd Kuzman Josifovski Pitu 1, 1000 Skopje, Republic of North Address Macedonia Loan Number 8561-MK Currency Macedonian Denars (“MKD”) (Amounts in EUR) For the period from 01 January 2022 through 31 January 2023 and disbursement period to 01 January 2021 through 31 March 2023 31 December 2021 At 01 January - - Add: Inflows Transfer from designated account – EUR 6,399,145 7,810,725 Return of principal, interest and costs for remittances from municipalities 607,720 217,534 7,006,835 8,028,259 Deduct: Outflows Amount of eligible expenses paid during the period (6,398,755) (7,809,992) Transfer to petty cash (326) (733) Transfer of funds to Ministry of Finance for returned principal and interest from municipalities (607,754) (217,534) (7,006,835) (8,028,259) At 31 January 2023 / 31 December 2022 - - Ministry of Finance of the Republic of North Macedonia 33 “Second Municipal Services Improvement Project” IBRD Loan number 8561-MK Project’s Financial Statements 31 January 2023 and disbursement period 31 March 2023 Statement of Petty Cash in Denar Account Loan Number 8561-MK Currency Macedonian Denars (“MKD”) (Amounts in EUR) For the period from 01 January 2022 through 31 January 2023 and disbursement period to 01 January 2021 through 31 March 2023 31 December 2021 At 01 January 148 31 Add: Inflows Transfer from Mirror Designated Account – MKD 326 733 326 733 Deduct: Outflows Amount of eligible expenses paid during the period (474) (616) (474) (616) At 31 December - 148 Ministry of Finance of the Republic of North Macedonia 34 “Second Municipal Services Improvement Project” IBRD Loan number 8561-MK Notes to Project’s financial statements 1 General On 14 January 2016 the Ministry of Finance of the Republic of Macedonia (MoF), entered into the Grant Agreement 8561-MKD with the International Bank for Reconstruction and Development (“IBRD”) for financing the “Second Municipal Services Improvement Project” in an amount not to exceed EUR 25,000,000. The Closing Date of the project according to the last Letter for the Extension of the Closing dates dated 5 August 2020, is 30 September 2022. With letter for the World Bank send to Ministry of Finance in the Republic of North Macedonia, dated 23 August 2022, the period of the Loan No. 8561-MK was extended to 31 January 2023 with disbursement period to 31 May 2023 in respect of eligible expenditures occurred before 31 January 2023. The following table underlines the categories of Eligible Expenditures that may be financed out of the proceeds of the Loan No. 8561-MK (“Category”), the allocation of the amounts of the Loan to each Category, and the percentage of expenditures to be financed for the Eligible Expenditures in each Category: Amount of the Loan allocated Percentage of the (expressed in Expenditures to Category Euro) be financed Goods, works, non-consulting services, consultants’ services, Operating Costs and Training (including under Sub-projects) 24,937,500 100% Front-end Fee 62,500 0.25% Total 25,000,000 2 Project Objectives, Activities and Institutional Arrangements Project Objectives and Activities The objective of the Second Municipal Services Improvement Project is to improve transparency, financial sustainability and inclusive delivery of targeted municipal services in the Participating Municipalities. The Project consists of the following components: Component A: Municipal Investments Provision of Sub-loans to Participating Municipalities to carry out investments in the areas of water and sanitation, road infrastructure (including construction and rehabilitation activities) and other revenue generating or cost saving investments in communal services or of high priority to municipalities, all selected in accordance with the criteria and procedures set forth in the Project Operational Manual. Component B: Poverty and Social Inclusion Investment Grants Provision of Poverty and Social Inclusion Investment Grants to Participating Municipalities as an incentive to carry out investments to improve infrastructure in poorer and marginalized communities within their respective jurisdictions, all selected in accordance with the criteria and procedures set forth in the Project Operational Manual. Component C: Project Management, Capacity Building, Monitoring and Evaluation Strengthening the capacity of the PMU, Participating Municipalities and communal service enterprises for Project management, monitoring and evaluation through the provision of goods, consultant services, including Project audit, training, and financing of operating costs. Ministry of Finance of the Republic of North Macedonia 35 “Second Municipal Services Improvement Project” IBRD Loan number 8561-MK Notes to Project’s financial statements (continued) Project Objectives and Activities (continued) Institutional Arrangements At all times during the implementation of the Project the Borrower shall maintain the Project Coordination Committee with a composition, resources and terms of reference satisfactory to the Bank. Throughout the duration of the Project the Borrower shall maintain the Project Management Unit responsible for overall management, coordination, monitoring and evaluation of the Project with a composition, staff, resources and terms of reference satisfactory to the Bank. The Borrower shall carry out the Project in accordance with the Project Operational Manual and shall not amend, suspend, abrogate, repeal or waive any provision of said Manual without the prior approval of the Bank. 3 Accounting policies Following are the principle accounting policies adopted in preparation of these financial statements. These accounting policies are consistently applied to all financial periods presented. Basis of preparation The accompanying financial statements have been prepared for the purposes of reporting to IBRD, on the activities of the Project related to the loan received for the completion of the Project’s objectives, in accordance with the respective provisions set out in the Loan Agreement Loan numbered 8561-MK signed between the IBRD and MoF. These financial statements are prepared on the cash receipts and disbursement basis and include all Project - related expenditures incurred, which are financed under the provisions set out in Loan Agreement numbered 8561-MK dated 14 January 2016, Disbursement letter, dated 14 January 2016. These instructions closely follow the World Bank’s Disbursement Guidelines for Projects. The financial statements have been prepared for the period for the period from 01 January 2022 to 31 January 2023 and disbursement period to 31 March 2023. Currency translation All accounts are kept in Euro as this is the reporting currency of the Project. Transactions denominated in currencies other than Euro are translated using the Buying Foreign exchange rates of the National Bank of the Republic of North Macedonia for international payment operations of the government bodies of Republic of North Macedonia prevailing at the date of the transaction. Budgeted amounts included in the Statement of Uses of Funds by Project Activity are translated from MKD into Euro at the date of transactions. 4 Commitments As at 31 March 2023, commitment amounting to 341,022 Denars equal to Euro 5,626 related to audit services for the Project is not included in Total uses of funds and will be settled till the allowed disbursement period ending 31 May 2023. © 2023 Grant Thornton DOO. All rights reserved. ‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refres to one or more member firms, as the context requires. 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