"Agrlculture Commercialization Project" Grant No. H964-TJ, Grant No. D259.TJ, Credit No.6,|67-TJ The project special рчrроsе financial stаtеmепЪ for the реriоd from January 1,2022 to June 30, 2022 and fоr the grace реriоd frоm July 1, 2022 to ОсtоЬеr 31, 2О22 and independent auditorc' report ц "AGRlcULTURE coMMERclALlzATloN PRoJEcT" GRANT No. H964-TJ, GRANT No. D259-TJ, CREDIT No. 6167-TJ TABLE ОF CONTENTS Page STATEMENT оF MANAGEMENT,S RESPoNSlBlLlTlES FoR ТНЕ PREPARAT|ON ANDAPPROVAL ОF ТНЕ PROJECT SPEC|AL PURPOSE F|NANC|AL STATEMENTS FoR тнЕ PERloD FRом JANUARY 1,2022 то JUNE 30, 2022 AND FоR тнЕ GRAcE PERloD FRoM JULY 1, 2022то ocToBER 31,2022. 3 Ц |NDEpENDENT AUDIToRS, REpoRT 4_6 PROJECT SPEC|AL PURPOSE FlNANC|AL STATEMENTS FоR тнЕ PERloD FRoM JANUARY 1,2022 то JUNE 30, 2022 AND FоRтнЕ GRACE PERloD FRoM JULY 1,2022то ocToBER 31,2022, Summary of funds rесеiчеd and expenditures paid 7 Summary of expenditures paid Ьу components 8 Notes to the рюjесt special рчrроsе financial statements 9-23 "AGRlcULTURE coMMERclALlzATloN PRoJEcT,, GRANT No. H964-TJ, GRANT No. D259-TJ, CRED|T No.6167-TJ STATEMENT оF IUIANAGEMENT,S RESPoNSlBlLlTlES FoR тнЕ PREPARATIoN AND APPRoVAL оF ТНЕ PROJECT SPECIAL PURPOSE FINANCIAL STATEMENTS FOR ТНЕ PERIOD FROM JANUARY 1, 2022 то JUNE 30, 2022 AND FoR тнЕ GRАсЕ PERIoD FRoM JULY 1,2022 то ocToBER 31,2022. The following statement, which should Ье read in conjunction with the independent auditors' rерогt is made with а view to distinguish the respective responsibilities of management and those of the independent auditors in relation to the project special purpose financial statements of the Project "Аgriсчltчrе Commercialization Project", Grапt No. H964-TJ, Grапt No. D259-TJ, Сгеdit No. 6167-TJ (thе "Ргоjесt"). Management is responsible for the preparation of the project special рurроsе financial statements that ргеsепt fairly, iп all mаtеriаl respects, the summаrу of funds received and expenditures paid and the sчmmаrу of expenditures paid Ьу components fог the реriоd from Jапчаrу 1, 2022 to June 30, 2022 and fоr the grасе реriоd from July 1,2022 to October 31,2022 iп ассоrdапсе with lnternational Public Sector Accounting Standard "Fiпапсiаl Rерогtiпg Uпdеr the Cash Basis of Accounting" (the "|PSAS") issued Ьу the lnternational Public Accounting Standards Воаrd of the lnternational Federation of Accountants and the Wor|d Bank's Fiпапсiаl Management Sector Воаrd's "Guidelines: Аппuаl Financial Reporting and Auditing for Wоrld Вапk Fiпапсеd Activities" (the "WB Guidelines"). lп рrераriпg the pýect special рчrроsе financial statements, management is responsible for: о selecting suitable accounting policies and applying them consistently, о making judgments and estimates that аrе rеаsопаьlе and prudent. о stating whether lpsAs and wB Guidelines have Ьееп followed, subject to апу material departures disclosed and explained iп the project special purpose financial statements; and . рrераriпg the project financial statements оп а going сопсеrп basis, unless it is inappropriate to presume that the Project will Ье implemented iп ассоrdапсе with the established реriоd. Мапаgеmепt is also rеsропsiЬlе fоr: . designing, implementing апd maintaining effective and sound system of internal сопtrоl and fоr rечеаliпg risks iп system of internal сопtrоl. о maintaining рrореr accounting rесоrds that disclose, with геаsопаьlе ассчrасу at апу time, the financial position of the Project, and which епаЬlе them to епsчrе that the pюject special рчrроsе fiпапсiаl statements of the Рюjесt comply with lPSAS and WB Guidelines, . compliance with laws and гegulations of the Republic of Tajikistan, accounting system of the Рюjесt and the requirements of the World Вапk. . taking such steps as аrе rеаsопаьlу available to them to safeguard the assets of the project; and . detecting and preventing fraud апd оthеr irrеgчlаritiеs, The pюject special рчrроsе financial statements for the реriоd frоm January 1, 2О22 to June 3О, 2022 and fоr the grасе реriоd frоm July 1,2022 to ОсtоЬеr 31,2022wеrе approved and authorized fоr issue оп DесеmЬеr 27 ,2022 Ьу the management of the Рюjесt. chief Accountant of Acting Director of Accountant of AED PMU моF PlU моF PlU DесеmЬеr 27,2022 December 27,2022 DесеmЬеr 27,2022 Dushanbe, Dushanbe, Dushanbe, Dushanbe, the Republic of Tajikistan the Republic of Tajikistan the Republic of Tajikistan the Republic of Tajikistan 3 Y-ЕSтоN lNDEPENDENT AUDlToRS, REPoRT То the Management of Project "Аgriсulturе Commeгcialization Project" the State lnstitution "Project Management unit fоr Agriculture Епtrерrепеuгshiр Development" uпdёr the Ministry of Дgriсчlturе of the Republic of Tajikistan and the state lnstitution "рюjесt lmpiementation unit fоr дссеss to Grееп and Ruгаl Development Fiпапсе" uпdеr the Ministry of Fiпапсе of the Republic of Tajikistan and to the Мапаgеmепt of StаteCommitteeonlnvestmentsandStatePropeгtyМаnagementoftheRepubIicofTajikistаn Opinion We have audited the Special Рuгроsе Financial Statements рrераrеd Ьу the State lnstitution "Project мапаgеmепt unit fоr Agriculture Епtrерrепеurshiр Development" uпdег thb Плiпistry of Дgriсulturе of the Republic of Tajikistan (hегеiпаftеr - the "AED PMU,) and State lnstitution "Project lmрlеmёпtаtiоп Unit fоr Access to Grееп апdЛ_urаl Development Fiпапсе" uпdеr the Ministry of Fiпапсе of the iRepublic of Tajikistan (hегеiпаftег - the "МоF PlU") of the "Аgriсultuге CommeгciaIization Prbject" (hеrеiпаftеr - the "Project") fiЙапсеd against the financial рrосееds of the lпtеrпаtiопаl Development Association (hегеiпаftеr - "lDД'i ассоrdiпg to thеGгапtАgгееmепts No. lDA D259-TJ, No, lDA H964-TJ and СrеditДgrееmепt Nо.6167-ТJ'(hеrеiпаftЪr- "Fiпапсiпg Agreements") fоr the реriоd frоm January 1 , 2022 to June 30:2о22 and fоr the grасе реriоd frоm July 1,2022itо ОсtоЬеr 31,2022. The special Рuгроsе Fiпапсiаl statements соmрrisе: summary of Funds Received and Expendituгes paid, summary of expendituгes paid Ьу components, Notes to the special рurроsе financial statements includes. lп оur opinion, а) The special purpose Fiпапсiаl statements of the Рrоjесt fairly рrеsепt in all material respects the financial position of the Ргоjесt as at June 30, 2022 апd осtоЬеr 31 , 2о22 and the results of its ореrаtiопs fоr the period frоm Jапuаrу 1,2а22 to June 30,2а22 and fоr the grace реriоd frоm July 1,2О22 to October З1, 2022., inconformity with the international Public Sесtоr Accounting Standards (hегеiпаftеr - lPSAS); ь) The AED PMU and моF PlU has utilized all proceeds of the Grапt Аgrееmепts No, lDд D259-TJ, No, lDд H964-TJ and Credit Аgrееmепt No. 6167-TJ withdrawn frоm lDA опlу for рurроSеs of the Рюjесt in ассоrdапсе with the Frnancing Agreements; and по proceeds of the Аgгееmепt have Ьееп utilized fоr other рurроsеs; с) The AED PMU апd моF PlU was in соmрliапсе fоr the period frоm January 1, 2а22 to June 3О, 2022 апd fоrthе grace period frоm July 1,2022 to осtоЬеr 31,2022. with all financial сочепапts of the Financing Аgгееmепts; d) Designated Account Statements оп Рrоjесtfогthе регiоd frоm January 1,2022to June зО,2О22апd fоr the grасе реriоd frоm July 1, 2022 to осtоЬеr 31, 2О22 give а truе апd Fаirчiеw of the financial position of the Designated Account of the Рrоjесt as at June 30, 2О22 апd осtоЬеr з1,2о22 and of the cas'h flows fоr the period fгоm January 1,2а22 to Juпе 30,2022 and forthe grасе реriоd frоm July 1,2а22 to October U, 2а22 and complies with the Wогld Bank's guidelines; Basis for орiпiоп we conducted оur audit in ассоrdапсе with international standards оп Auditing (lsдs). Оur гesponsibilities uпdеr those standards аге furthеr dеsсгiьеd iп the Auditor's Responsibilities fьr the дudit of tl-re Fiпапсiа| statements section of оur rероrt. we аге independent of the project дЕD pМu апd МоF plu iп ассоrdапсе with the ethical rеquirеmепts that аге rеlечапt to оuг audit of the statements in with the international Ethics Standaгds Board fоr Accountants' Code of Ethics fоr Professional Accountants (IESBA Code), and we have fulfilled оur other ethical responsibilities iп ассоrdапсе with the lEsBA code. we believe that the audit evidence we have obtained is sufficient and арргорriаtе to provide а basis fог оur орiпiоп. trоЕSтоN Emphasis of Matter - Basis of Accounting Wthout modifying оur opinion, we drаw attention to Note З to the Special Рurроsе Financial Statements, which describes the basis of accounting. The Special Purpose Financial Statements аrе ргераrеd to assist the AED PMU and МОF PlU to соmр|у with the financial rерогtiпg provisions оп the rеquiгеmепts conditions of the Financing Agreements and lPSAS. As а rеsult, the Special Рurроsе Financtal Statements may not Ье suitable fоr апоthеr рurроsе, SuЬ-lоапs Without modifying оur орiпiоп, we drаw attention to Note б to the special Рчrроsе Fiпапсiаl statements, which describes the Sub-loans. Опе of the activities suрроrtеd uпdег the Project is а Сгеdit Line, with the objective to епhапсе access to predominantly medium and long-term finance fоr agribusiness епtеrрrisеs апd small-scale Соmmеrсtаl farms. This activity is саrriеd out, among other things, Ьу establishing and ореrаtiпg а сrеdit line facility through Participating Financial lnstitution (РFl), i,e, Commercial Вапk оr Мiсrоfiпапсе lnstitution. Оur audit рrосеduге included rечiеwiпg mоrе than 5% of all smali and suЬ-gгапts fоr compliance with the eligibility сritеriа, рrосеdurеs and requiгements set out iп the Grants Орегаtiопаl Manual and other rеlечапt documents, with рагtiсulаr attention to the eligibility of ехрепdituгеs, Responsibilities of Management and Those Charged with GovernanGe for the Financial statements Management is геsропsiЬlе fоr the ргераrаtiоп and fаir рrеsепtаtiоп of the Special Рurроsе Fiпапсiаl statements based оп the cash flow basis iп ассоrdапсе with lpsAs апd fоr such iпtеrпаl сопtrоl as mапаgеmепt determines is песеssаry to enable the рrераrаtiоп of financial statements that аrе frее frоm material misstatement, whether due to fгаud оr еrrог, lп рrераriпg the fiпапсiа| statements, management is rеsропsiЬlе fоr assessing the Рrоjесt AED PMU and МОF PlU ability to сопtiпuе as а going сопсеrп, disclosing, as appllcable, mаttегs relating to going сопсеrп and using the going сопсеrп basis of accounting unless management еithег intends to liquidate the Project оr to cease ореrаtiопs, оr has по realistic a|ternative but to do so. Those сhаrgеd with gочегпапсе аrе геsропsiЬlе fоr очегsееiпg the Ргоjесt AED PMU and МОF P|U financial rерогtiпg ргосеss, Auditor's Responsibilities for the Audit of the Financial Statements Оur objectives аrе to obtain rеаsопаЬlе аssuгапсе about whеthеr the financial statements as а whole аrе fгее frоm material misstatement, whеthег due to fraud оr еrrог, апd to issue ап auditor's rерогt that includes оur орiпiоп. Reasonable аssuгапсе is а high level of assurance, but is not а guаrапtее that ап audit conducted in ассогdапсе with lпtегпаtiопаl Standards оп Auditing (lSAs) will always detect а mаtегiаl misstatement when it exists. As рагt of ап audit iп ассогdапсе with lSAs, we ехеrсisе professional judgment апd maintain рrоfеssiопаl skepticism throughout the audit, We also: ,/ ldentify and assess the risks of material misstatement of the financial statements, whether due to fraud оr егrоr, design апd регfоrm audit рrосеdurеs responsive to those risks, and obtain audit evidence that is sufficient апd аррrорriаtе to ргочidе а basis fоr оur opinion. The risk of not detecting а mаtеriаl misstatement resulting frоm fraud is higher than fоr опе resulting frоm еrгоr, as frаud may involve collusion, fоrgеry, intentional omissions, misrepresentations, оr the очегridе of iпtегпаl сопtrоl. ,/ obtain ап understanding of iпtеrпа| сопtrоl relevant to audit in огdеr to design audit рrосеdurеs that аrе аррrорriаtе in the circumstances, but not fоr the рчrроsе of expressing ап орiпiоп оп the effectiveness of the Рrоjесt AED PMU апd МОF PlU iпtегпаI сопtгоl. ,/ Evaluate the аррrорriаtепеss of accounting policies used and the геаsопаьlепеss of accounting estimates and rеlаtеd disclosures made Ьу management. 5 Y-ЕSтоN ,/ Conclude оп the арргорriаtепеss of management's use of the going сопсеrп basis of accounting and, based оп the audit evidence obtained, whether а mhеriаl uncertainty eйstsielated to events оr conditions that mау cast significant doubt оп the AED PMU апd моF PlU ;bпit/to съпtiпu" gЬiпЪ сопсеrп. lf we conclude that а mаtеriаl uпсеrtаiпtу exists, we аrе rеquirеd to drаw ", " ittention in оur rерогt to the геlаtеd disclosures in the financial statements ог, if such disclosures "ioito*r, аrе inadequate, to modify оuг opinion. Очr conclusions аrе based оп the audit evidenc.e obtained up to й date of our audito1.', rероrt. Ноwечеr, futuге events ог conditions mаУ cause the AED PMU and мог bru й .""." to сопtiпuе as а going сопсегп, ,/ Evaluate the.overall рrеsепtаtiоп, struсtчrе and content of the financial Statements, including the disclosures, and whether the financial statements герrеsепt the uпdеrlуiпg transactions and events in а mаппег that achieves fаir ргеsепtаtiоп. We communicate with those_ charged with gочегпапсе rеgаrdiпg, among оthеr matters, the planned scope and timing of the audit and significant budit find'ings, includingiany sijniticant deficiencies in iпtеrпаl control that we identify during оuг audit. we also рrоvidе those c,ha.rged with gочеrпапсе with а statement that we have complied with rеlечапt ethical rеquirеmепts геgаrdiпg independencb, and to communicate with them a|l l."r"t.nirrib, апd оthеr mаttеrs that mау rеаSопаЬlу Ье thought to Ьеаг оп оur independence, and whеrе applicable, related safeguards. Auditor: , lY гgrъ.ч 2 s /prc F/u? n/ze_ KRESTON TASHKENT LLC Uzbekistan, Tashkent rеgiоп, 1 00047, lstikbol Strееt, ,l5 Tashkent, December 27, 2О22 6 ,o)lo)l фоо о lol фФ о 1ol(ol ф oll to |о Ф lo)I (o llol сr, t\ ю (о lool ýl lo ll р Nфо lol Ф_ lql ý_1 F_ ч lФ_l d',fi d (o llol д э (') г- О о) * lo ldil lol lФl lrl lФl t фО N lo c\l cD г- о гt lNl Фllоl cD lФl а 3|| Е о J Fl,| о,ЁЁ l{I lrf,l Ф ýi с' ýi l+l |,|F-|."| lnl , г- Г. ltl tl Ф(o о Фl ol t 0 I 0ol orl Фl г\ N lcll ,о_ч l-Ф_1 оФ lФl о_| Ф(o о.ю. о фl ,o-1 ýll €о t! lo Ф laol ФФ l1\l d|l Фl 1\l (о о)(o фг F ф Фl |о ol -il N ýl }_ =| ," (ol tг о) *l о N |"| I j I Ф Еý lll lýl о O|lol N Ё о _.:, э Nl к) lnl г- l ф tЬ Фl,| олl lл Ф о цЕ = Фl -| - lFl d цrl t ltl l }_ о ч й о ЁЕ l-| ед о l_ э Фl чtl (oI | ]\l\ г* с{ а lЁ.l соФ 0о(о о)_ to_ l 0о Ф lel @_ lNl l1\l lfll б lЁ| ýl с dl оф ý_ 1о_ (ог N о N lд о -l lоф фсо lEl ф_а о) (о N lbl со lфl Jt |"lI"I ýr F = |"| J э .) Фl al | (ог\ (о г* Фо NФ (o г.. lNl г* lo Е ýýl t_| to_N_ со_ о)_ оr_ lE_| г- lФl о о F (Y) Fо) toN to о) lo lol ц otl F-| Ф_s_ (o_N_ ,о_ ltol .9 Б ц N- э о ýJ о- N Ф о I |ý|,|ч 1-1 о N х, ц lл rol lo llol lllц) llr)l аФ Ё ýl Ф cll г* l1\l ц з|1 N lNl ц о' Ео Ё -| lФl э со Ф -о о 1л Ёl od lodl г- tr) Е F с Ф Ф о Ё *ýн п |л о Ф о |=| оо 'Е .-j I г.- цJ д ,ЕЕ N G, llfl l9l ro Фо Kl8l l_ ЁЁЕ = |bl N(o Ф | е El to N lфl Ф_ l1-_| о Iфl ц, Jr' lodl 9 Ф_оr_ о ldl $ lФl зб) Ё сБ у! лý- Е ý| юN lbl Ф. ч lолl lbl to о) (o.N_ NlF. г lCtl бс lд ,l*| l а =l сlФ z ^-l"| l-| J_уб !э!r цЁБ = 6 Еэ ll ll ,l*lI е зЕ Е зý ч-оч : 9= о ыf я frз ts ýр Ё Nц z trlл B9S 'Бпч я Ё q ^ а л_Ф о. frqI d i\ t=_ .я цЕ Ёэ Y- Ф Фl l l , 9 л Е Е8 Е oii оlоl ll цJl- ЬаЁ э odl blbl Е .с Е# Е-- Lбд o-j' xN о;'ооо Е € щ -l N lбrl Фэ ý9 ю lюl Hq N lNl о оо р а =5 ll Е Ф о d о Е ý ýЁЕi Ф а Ф 9 о ý lo lo lo Ф(o (o с а Ф о) б Ф Е о. р2 = нз о) sEo яв aл Ф о Е чd Ё= g ,б, .Е .9 с б t F- о ф9 о Е о QЕ =о" 2Е Ч * l чА Jч о Е нё lдо Ф эЧ bfra J о >о-ý о эZ оь trщЁ <ЕЁ б az ЕFиr Б< Ец5 Ф д FБ BPs о ЁЕЕЕЕЕЁдgЁЁЕЁЁýЁЕЁЁg gýЕý Nl (oll Ё аRн. Nl фll col Фll Ёфdс оl Nll зl зll ,| Ф Etý|(o 6 эN *ll ! о б l-- ts lo)to о ýФ to tol Фll coI c!ll ll .9 N со плll ъэ о л.э ЕзЕ Ё N соl Фll с N oOto F(o coI - ll -| Nв F *ll ý Е кЕ _Ф aэ r г\-с N-- Ё б lл Еý N Nll 8э Ё <Е ЦS Ф о ФJ, э ýll я Ец 85 гt Ф_ l_ hФ ц = to v l.)ll о о tll -ll бЕ Ед о lл о F Ё* N Ед эtý t N ýs о lо)d) |л ф Ell } 0о Ф Ф Б 96^ (f) J Е э .) = ,а F ч о о = Ё l(oo) соо г*l ýl .9 Фl (о ь Е lJ. а ;гrо г,- r о o.r s! ai f о о ёtо l-N о) г.- кЕ е -Ф N- lл NЁ Е ьФ цJ о |ц) (r)Е ЕЕ лg э г* tr lL ои Ф_с о \' Фэ Ф Ё ф_ о гЕ бэ = о- Ф = оо о гt Ф lл д до lл }_ Епк ,БнR ц а о CL -: с эRР о ц l(оФ г\l (ol б Е о ЁББ фl о }Б8 у Ф z ьФ оэ цФN Nl -| б б о lLc олi F Б , б F:N G о с = б с Ёý э .9 Ф Фd z fiч ; l- a\a Е ЕЕ э Е EN ýк -_ е J Ф Ё Ф о о е 5 = ц iгt д Ф о. БЕ бэ ъ9 оо о бN Е ,о lл Е= э Ф ЁН *g (l) .:ц д h L'п о. Ё9ý t Ф о к; БN ФNс,{ олr Ео slл 8 .с Ф б ,ы Ф йq gRБ !о llO г.- о< Ф э оо о. Ф =5 Ёк о: < о q-ý о 5z trщЁ (Jb Е pz <ЕЁ ЕFсл б s Б< =trЭ Ф дl FЁ ?Ps ЕЕЁЕЁЁЕЁВЁЁýЕЁ о "AG RlcULTURE coMMERclALlzATloN PRoJEGT,, GRANT No. H964.TJ, GRANT No. D259.TJ, CRED|T No. 6167.TJ NOTES ТО ТНЕ PROJECT SPEC|AL PURPOSE FINANCIAL STATEMENTS FоR тнЕ PERloD FRoM JANUARY 1,2022 то JUNE 30, 2022 AND FоR тнЕ GRACE PERloD FRoM JULY 1, 2022то ocToBER 31,2022 (iп US dollars) 1. GENERAL lNFoRMATloN According to the Аgrееmепt between the Republic of Tajikistan and lпtеrпаtiопаl Development Association (the "lDA", "World Bank") signed оп July 30, 2014, the lDA provided а Grant No. H964-TJ in amount of 14,300,000 Special Drаwiпg Rights to the Republic of Tajikistan. Тhе реriоd of duration of the Grапt is from July 30, 2014 to June 30, 202'1 The Grants wеrе provided for the Рюjесt "Agriculture Commercialization Pýect" (the "Project"). Оп January 18, 2018 was signed the Financing Agreement for additional financing fоr the Рюjесt "Agriculture Commercialization Project" between the Republic of Tajikistan and lDA. lDA provided the Grant No. D259-TJ iп amount of 5,400,000 SpBcial Drawing Rights and the Сrеdit No. 6,167-TJ iп amount of 7,500,000 US dollars. According to Fiпапсiпg Agreement there wеrе changes in the objective of the Project, in the component ll and lll of the ProjBct and wеrе added пеw Component lV. The паmе of Component ll was amended to "Соmропепt ll: Access to finance" and were added пеw sub-component ll.D. ln Соmропепt llI thеrе wеrе amendment iп sub-component lll.E and sub-component lll.F is hereby rерlасеd iп its ontirety. The реriоd of duration of the Grant and Credit is from January 18, 2018 to June 30,2022 and the grасе реriоd is frоm July 1, 2022to ОсtоЬеr 31,2022 Project рчrроsе The objectives of the Project аrе to iпсrеаsе the commercialization of fаrm and agribusiness рrоdчсts and suрроrt miсrо, small and medium епtеrрrisе development iп Project areas Ьу providing better access to finance and stгengthened capacity of Project Ьепеfiсiаriеs. The Project соmрrisеs the following components: Component l; lmрrочеmепt of technical knowledge and skills iп sчррогt of commercialization. Соmропепt l|: Access to finance. Соmропепt ll l: lnstitutional capacity building and рюjесt management, Component lV: Епtrерrепечrshiр training and business development services to miсrо, small and medium size enterprises Соmропепt l: lmprovement of tесhпlсаl kпоwlеdgе апd skills lл support of commercializatlon lmproving of technical knowledge and skills of participants iп key agricultural чаlче chains and productive partnerships Ьу: а. Supporting building value chains and productive раrtпеrshiрs чпdеr the рюjесt, Ьу providing research and imргоvеmепt of technical knowledge and skills of рюjесt beneficiaries on а variety of agriculture- related subjects, and assistance iп identifying and pursuing market opportunities. Provision of advisory services and training Ьу а reputable consulting firm with rеlечапt ехреrtisе acceptable to thb Association, to assist with value chain development activities чпdеr Component l, ll.B апd lll of the Pýect. Ь. Providing training and advisory services at the рrоdчсеr level, Establishing а network of demonstration plots, to conduct comparisons and testing between various agгicultural production practices and supporting participation of fаrmеr groups iп trade fairs and other events. с. Providing training and advisory sеrчiсеs for аgrо рrосеssоrs and agribusiness enterprises оп а variety of subjects related to their business ореrаtiопs. Providing trаiпiпg оп issues relating to child and forced lаЬоr. Suppoгting attendance at trade fairs and providing mentoring services. Соmропепt /l; Access to fiпапсе Enhancing access to medium and long-term finance for agribusiness enterprises and small_scale соmmеrсiаlfаrms Ьу: а. Establishing and operating of а credit liпе facility through РFls to support: (а) medium-term loans and leases for investment for fiпапсiпg mоdеrп technological plant and equipment; and (Ь) value сhаiп financing products and value chain and productive linkage support, and (с) investment and working capital needs fоr а Ьrоаd rапgе of miсrо, small апd medium enterprises iп Project аrеаs. ь. providing commercialization Grants to support investment and input пееdб Ьу smаllеr farmers iп рrоduсеr grочрs оr productive раrtпеrshiрs чпаЬlе to qualify fоr а commercial lоап. С. Supporting the value chain development Ьу providing capacity building of the PFls relatod to пеw financial products iп lending fоr value chain and productive partneiship development activities, аССеssiПg suitability and effectiveness of пеw financial products, and on mitigation of the related risks. providing training to the pFls оп епчirопmепtаlапd social safeguard issues, d. Providing Matching Grапts to SчЬ-Ьоrrоwеrs оп terms and conditions set fогth in the Matching Grапt Рrоgrаm Manualto complement SчЬ-lоапs чпdеr РаrtА of this Component ll. Соmропепt lll: lnstltutional capacity buildlng апd project mапаgеmепt, Strengthening the critical elements of the institutional framework and agricultural sector's academic knowledge base required to support соmmеrсiаl activity Ьу: а) Supporting счrriсчlчm modernization of the Tajikistan Аgrаriап University. Ь) Suрроrtiпg expansion of the fаrmеr training рrоgrаms at the agricultura| co|leges through updating of сurriсчlа and teaching materials, iп conjunction with curricu|um modernization under Соmропепi lll. (а) above; uрgrаdiпg equipment and upgrading of facilities of the Agricultural Colleges. с) lmproving market information systems fоr fаrmеrs and agribusinesses Ьу: (i) sчрроrtiпg the establishment of а pub|ic-private рагtпеrshiр between the Tajikistan National Statistics Agency,-other relevant state agencies and private service providers on facilitating delivery of commercial market information; and (ii) providing related technical assistance to the Tajikistan National statistics Agency, other relevant state agencies and private service рrочidеrs. d) Strengthening the MOA's capacity for policy and regulatory rеfоrm iп the field of agriculture Ьу funding selected studies on critical issues сопсеrпiпg agricultural commercialization, е) Supporting the Аgriсчlturаl Епtrерrепечrshiр Development Pюject ManagemBnt Unit ("ДЕD PMU") and Ministry of Fiпапсе Pюject lmplementation Unit ('МОF PlU") for the effective implementation of the Project, through provision of goods, works, consultants' services, audit, training and ореrаtiпg costs, for purposes of Рrоjесt mапаgеmепt and implementation, including mопitоriпg and evaluation, (ii) establishing and maintaining fоr the duration of the Project, the Grievance Redress Mechanism 0 Building capacity of financial iпtегmеdiаriеs acting iп rчrаl аrеаs of the Recipient, including: (i) provision of trailing to PFl's оп start-up business financing modalities, including risk identification jnd appraisal, and structuring of financing repayment, as well as оп key епчirопmепtаl aspects associated with rчrаl business financing; and (ii) provision of technical assistance to selected smaller miсrоfiпапсе institutions with good potential to grоw and expand the opportunities for access to finance for small rчrаl and agricultural businesses. СОmропепt lV: Entrepreneurship training andbusiness dеуеIорmелf selvices to mlсrо, small апd medium size enterprises а. Рrоvisiоп of епtrерrепечrshiр training and business development services to start-ups with mоrе intensive 9чрРоrt to youth led, women-led enterprises апd епtеrрrisеs led Ьу, and/6r employing, реrsопs with disabilities. Ь. Саrryiпg out innovative аррrоасhеs to promote start-up grойh and job creation, including opening an ВПtrерrепеurshiр hub in а selected location and development and implementation of business mепtоriпg and training рrоgrаms Project mапаgеmепt The Pюject is implemented Ьу the Agriculture Епtrергепечrshiр Development Project Management Unit (t|e'AED PMU') and Ministry of Fiпапсе Project lmplementation Unit (the "МОF irtU"1 wltПГп the scope of the Ministry of Agriculture and Ministry of Fiпапсе of the Repub|ic of Tajikistan, respectively. Duration of the Project is July 30, 20,14 to June 30,2022 and the grace period is from July 1, 2022lo October 31,2022, 10 2, PRESENTAT|ON OF ТНЕ PROJECT SPECIAL PURPOSE FINANC|AL STATEMENTS Ваgig of preparation These project spBcial рчrроsе financial statements have Ьееп рrораrеd iп ассоrdапсе with the |пtеrпаtiопаl РчЬliс Sector Accounting Standard (the "lPSAS") "Fiпапсiа| Reporting under the Cash Basis of Accounting" issued Ьу the Public Sесtоr Committee of the lnternationalFederatbn of Дссочпtапts, апd iпсоrроrаtе the following рriпсiраl accounting policies, which have been consistently fo|lowed iп all material respects and comply with the World Bank's Financial Management Sector Board's "Guidelines: Дппчаl Financial Rерогtiпg and Auditing for Wоrld Bank Fiпапсеd Activities" (the "WB Guidelines"). UПdеr the cash Ьаsis system iпсоmе (оr expenditure) is recognized when cash is received (оr paid) irrespective of whеп goods оr services аrе гесеiчеd оr provided. The Project's approved budget disclosed Ьу categories of expenses is not publicly available and аs such соmраrisоп of budget and actualamounts is not presented. These project special рчrроsе financialstatements consist of: о summau of funds received and expenditures paid; . summau of expenditures paid Ьу components; . Notes to the project special рurроsе financial statements, including short description of mаiп statements of accounting policy and other descriptive notвs. The rероrtiпg сurrепсу of these project special рчrроsе financial statements is US dоllаrs (the "USD"). 3. SUMMARY оF SlGNlFlcANT AccoUNTlNG PoLlclES Cash basis of accounting The project special рurроsе financial statements are рrераrеd оп а cash basis of accounting. The cash baBis of accounting recognizes trапsасtiопs and events опlу when cash (including cash equivalents) is гесеivеd оr paid Ьу the Pýect. The рюjесt special purpose financial statements рrераrеd чпdеr the cash basis provide readers with information about the sочrсеs of cash raised during the period, the purposes fоr which cash was used and the саsh balances at the rерогtiпg date. The measurement focus in the рФесt special рчrроsе financial statements is Ьаlапсеs of cash and changes thеrеiп. Fоrеigп счrrепсу Operations in foreign счrrепсу initially аrе counted iп functional счrrепсу Ьу the official счrrепсу exchange rate settled Ьу the National Bank of Tajikistan (the "NBT") оп а date of ореrаtiоп. Funds received аrе translated into USD at official ехсhапgе rate of Special Drawing Rights (the "SDR") at the date of funds rесеiрt. All payments made iп local сiчrrепсу аrб translated i;to USD at the official exchange rate defined Ьу NBT, at the date of transaction. Monetary assets and |iabilities expressed iп foreign счrrепсу аrе converted to functional счrrепсу at official ехсhапgе rate on а date settled Ьу the NBT. All fоrеigп exchange differences rеsчltеd frоm maturity оr recounting are included in the summary of funds received and expenditures paid. Non,monetary items аrе valued according to their historic cost iп fоrеigп счrrепсу, which аrе recalculated оп rаtеs of the initial ореrаtiоп date. Cash and cash equivalents cash and cash equivalents include cash оп hand and due from banks, which сап Ье convorted to thе.соrrеsропdiпg amount of саsh iп the shогt term, Balances of advances paid to employees at the end of the реriоd аrе аlsо рагt of closing cash position. 11 Тахез Calculation and paymont of реrsопаl income tax and social ýBcurity сопtriЬчtiопs frоm iпсоmе of local staff and consultants is madв iп ассоrdапсв with the requirements and rates of the Тах Code of the Republic of Tajikistan and rеlечапt legislation of the Republic of Tajikistan, ProJect ехрепsез ThB ехрепsеs аrе rесоrdеd iп the pвriod whвп they wеrе actually paid. sочrсеэ of fчпds The funds were provided Ьу the World Bank to the Project Ьу advance payments to the end supplier of goods апd/оr services, Comparative information The рriоr pariod corresponding figures iп the Special Рчrроsе Fiпапсiаl Statements are fоr the уеаr ended DесеmЬеr 31, 2021 , as compared to the period from January 1, 2022 to June 3О, 2О22 (and the grасе period from July 1,2022 to October 31, 2022). As а result, the соrrвsропdiпg figureý may not Ье соmраrаЬlе to the figures for the period from January 1,2022 to June 30,2022 (and the grасе peiiod frоm July 1, 2022to October 31,2022), 4. GASH AND CASH EQUIVALENTS Cash and cash equivalents аs of October 31,2022 соmрrisе: CCY Grапt ОсtоЬвr 31,2022 МОF PIU AED PMU Total Designated account USD H964-TJ Designated account USD D259-TJ & 6167-TJ 249 249 Тrапsit account TJS H964-TJ Transit aocount TJS D259-TJ & 6167-TJ 1 ; Cash TJS H964-TJ Advance paid to employees TJS H964-TJ Escrow account USD D259-TJ & 6167_TJ u,ooo 6,400 -----------q,65q ----_----------- ------_ý,6ý9 Cash and cash equivalents as of June 30,2022 соmрrisе: CCY Grant June 30, 2022 моF PlU AED PMU Total Designated account USD H964-TJ DBsignated account USD D259-TJ & 6167_TJ 246,7; 246,7; тrапsit ассочпt TJS H964-TJ Transit account TJS D259_TJ & 6167_TJ 8 . ,1Б Cash TJS H964-TJ Advance paid to employees TJS H964_TJ Escrow ассочпt USD D259-TJ & 6,167-TJ 12,000 - 1r,ооо _____зý&z19 : 258,727 Cash and саsh equivalents as of December 31,2021соmрrisе: ccY Grant December 31,2021 моF PlU AED PMU Total Designated account USD H964-TJ 4 4 Designated account USD D259_TJ & 6,167-TJ 257,380 4,034 261,414 тгапsit account TJS H964-TJ 179,767_ 179,767 Transit account TJS D259_TJ & 6,167-TJ ,: JJ Cash TJS H964-TJ Advance paid to еmрlоуееs TJS H964-TJ , ru_ 188 Еsсrоw account USD D259_TJ & 6167-TJ ' 2б7,601 183,805 441,406 12 -:- 5. FUNDS RECEIVED Fоr the grace реriоd from July 1,2022 to October 31,2022 there was по financing frоm the Wоrld Вапk, Fчпds received for the period frоm January 1,2022 to June 30, 2022 comprise: Fоr the period from Jenuary 1,2022 to June 30,2022 моF PlU AED PMU Total Flпапсlпg mothod / sочrсев of flпапсlпg: Grant No. H964.TJ Dirвct рауmепts Advance рауmвпt Grant No. D259-TJ Dirесt рауmепts Advance payment 2,651,56; 2,651,56; 2,651,566 ---____1,65týý9 Credlt No.6167.TJ Direct payments Advance paymBnt 1,423,27; 1,423,277 _________1,423,й7 _J,423,277 __lgzlJд _lдзд9 Reallocation of funds 4,925 (4,925) ______4,079Jqq (4,925) ____t,074,!lg 13 Fоr tho уеаr ended DесеmЬеr 31,2021 моF PlU AED PMU Total i Flпапсiпg method / вочrсеs of flnanclng: Grапt No. H98.1-TJ Dirgct paymentý Advance paymBnt Grant No. D259.TJ Diroct payments Advance payment 1,850,577 1,s5о,57; ____1дý9€ц 1,8бO,б77 Credlt No. 6167-TJ Direct payments Advance payment 4,888,427 4,вsв,42; : 4,888,427 -__---* ----_-6,Z99,09l Е 6,739,004 Reallocation of funds (91,150) 91,1 50 *_____6,ý!Zд! 91,1б0 6,739,004 cumulative моF PlU AED PMU Total Fiпапсiпg method / sources of financing: Grant No. H964-TJ Direct payments ,1,459,689 1,459,689 Advance payment 8,610,965 - 9,862,631 18,473,596 .l1,322,320 19,933,285 -_------_8,61-9дф Grant No. D259-TJ Direct payments Advance payment 7,475,805 7,475,sо; _-,r*, ____ltzý.999 Credit No.6167-TJ Dirесt payments Advance рауmепt 7,500,000 7,500,000 ____zЁ99дq ____JЕ99дq9, 23,586,770 11,322,320 34,909,090 Grant No. D259.TJ Reallocation of funds (136,225) 136,225 _________(19ýла ______1qщ?q 14 9 *Ё*l1ч l!ll Ф |л Ф ьЕ о)о аи F- l а} Uo g: ,gp Ео trФ сЕ, оФ ll Urс fl йб ФФ J яЕ Ьо- _ = о- о fi,e Fя* цц Ч Eýý ýЕ Е:в qP olk9 llllll| |---Ф р=) Ёg -о бб Ёý'= l,д о Ё**|чч е.а !+б Е Lо о> Oif ои) ФФ ,FQ ll хБ *о- >х -оФ Б рfi Б яб |- Еь_ эо Lц '=- Е; Фо llllll lal to о- Tf xlz tl.lФ J чФ 9й Е Е ц а:9о Фэ rЁ Е Е tr: З9о ý ,Еп(\ Ч э 9a (, Фбr Р о.оF sEЗ o.1 sfi ыфР HJE ьэЕ llIllal т, о о5 5,о >= =ооо Е рш о о- Fo € Е333э3ý3 ý333 ь--э {, (л (л (л оооо tr' E8ýýEHEl Ell H8El Ell ýftEl Ё|l -|| uuul *|| **ý| Е ýýý*,-,l ul| u,, 1 lllllll э Е (L о tц Ф д о Е EBýýEýEl Ell EEEl Ell Е $ýý*,*,| uчlчч lll 1--] 1 ъ о F **1чч (o lllI Е э Е 0- тtF я ER Фýt ч = Ф- ;Б Фh >Ёlll| Фё 9о) оо lLo о = ц о **чч1 Е ЁьЕЕ gЁдýд*ýЁвЁддgЁдд ЕзgзЕзЕз Е333 Езвв г.- Ф (nl (vl ll (ог oll 1\ll $_ Ф_ co_I |- N(oФl (oсоФl о Elн]l о oti -| ýil ol crll оэ Pl 9ll оэ цJ= <о. чЕ ýl Ф Ф $ш !tr д ý l ll э Е Е г'- (а с) l Огоll о о J чll Ьэ ýл са_ Ф_| N(ocol хЕ Ец Ill (o со Lf)l со ч -_l г| Ёil Фюсоl Ф(о@l ý_ со_ lll г.-_| о(oюl ýll о о со (о Ol Ncoюl l-_ l зll Ек оэ ЕЕ оэ ЕR lll цl= Ф- <о- ER Ф- чЕ ;Б ;Б l }д чЕ gЁ (f,lo Фl Фll с) (o (ol (oll _сtr 9Ф ЁБ Ьэ ý_Ф_Г*_| Ф_|| lll оФ gЁ LО Ец юl гll cD (o Ф(oоl lдо 8Е ^ (oll -,| :|| о ц) lol oll ct cl Nl (oll ф_Ф_(o_l Ф_|| lll l- a9l Ф 1\l о)п ro Ф tl о |- о lo ,| Фll i|| г-. Е*ý оэ Ео оэ ;нR lлЕ tЕ о _-- Е;т <о l Ёýн ll| _.бс о lo |l)l с)ll Ё= (o|l Еъв (Y) о лll Ф_1о_Ф_l býs Ьэ Ф }*l Olll 6r_|| 'll iý-' (f) toб)\fl Фп q ll =ц to Ф| чll l |-ll с Ф с о B*N 'ENo оэ Е*п оэ цJ= tЕ Ill cL ooN <ц ll ФNс, ' Е cLýl - ll _ cl.cl N 8;Б ,ll п Б Ёtt о - -.N - о gэg пgчJ э oj8 Е ЕЕЁ Ф t ll Е ЕЕб Ьэ lL_ э Еб gЁ Ео о Е*9 ll Y lдч б Ф (9 т, tr .9 ,с о э =л9 : Е 5g Ф tf '7 .ц Ф tE Е б ,6 (r) Е о ооЕоо с-,lг= i]\ ц Ф z о El) cio Ьоо z>E>= Е gl4 trё Е о Е о gE б Ёв Ёвв о оо o(Jsdd = О о' l.- to r г\ r) (о - ý to (о г О ь о' ь ь ý lo (o Ф Ф (') Ф Г- ol l o)N Фо)со г* Е too) tоФ Е r Е о)NфNсо lf)(о t Г-l Z lо_F_ 1,o О_ q q - г* Ф Ф lf) Ф Ф \t Ф о ь (о О_N_о_Ф_о_'о_Ф_ф_г*_Ф_| Ё N;Ф N odo о =>>Е=Е=Е оооо ц_ ц lJ- lJ- J (а с ц(Lо-ц(Lо-(Lо_о- э .э ооооооооо цоO*о- оооо Ф _о э о о Е с) с о L о о э Ф 9 б> J э N о ц Е9 gts Е ц с! о .пя z: Е Еr, д< щ .,l Ё ц о N J оё Е l_ ;* ts 9; J Е Jc о tE ц.о сr, Е ! о (! Е о Jъ- Е g Ф о- о Ф о =Ф о 9э Ф ý Еб э о) tЕ ц! з|? ац) Ool |т д Ф Ф зз ýl о .э о [д с' о, о |г.* | l г.- t ýl (o ý N Е о N l._ N о 1ýЁlчвý-|1ý|- N -j с) L лФ о Е 3 ll llll о _ъ о f Е ЬчБ о ; ,Ё,, я:; с о N N о х ц.9а : ъц Ё ббй* * д i tr Ф L хБ : = iъ; : о ,U) ; gF N - п б' tл Е " Ёд = Ё fi Е э 6 Ё 8:Ё ]]1вý| э -) Е о L Е о ,Е |ý|l ЕЕъ llll о Ф ,f Ё; Ф о т Ё f Е ь Ф+ Ф с о) Е Е Ёз ё ý Ё Ё баЁ о Ф Е ,ь, о ; Е ЕЁ а ý дЁ э о F aл т, 6 .р F R::з ё-о N il N о N |(\ ýl |NI (о о с/) . Q;ъ Q >,9 oJ ý{ N с, ct с! Ф с Ё * 9qЕl qa с! - iэБ = с о 9ЕсO<эSБý_О б .9 ýl оl с! N _у ,6- ol Ё ý *З о Ё ý Ёё F- оl N эl о :, (olPc - ]ý-l1Ё| oz.a } Ф N.лэ RYо э с Ф -э (o Ф l(9 |Lг) (o-Ех (v) (о | сr) г-- с{ со Е э\tи- l.r)_ с{_ |о о Ё - Q ъ.9 (o L ю ý .о Е (o N ýl zФ F,E ý ; frя ý ý Ё ЁяS эа- оФ б5 iЕfiЗаЕЁЁЁi о oF ýЕЁ 1ýý-l1 l шз |_о zБ оо (л9 ENP э d.Е Ё в d. j Ё а ЁЁ цJФ ос ,; \ в г lд U) вý ýФ Ё В об ,т) оь оФý Е =Ё Ё ()ьчб ч. Ё *Е Е zb l,U F =Б шЁ Ф х, в,Е Еý ýБ -вý аЕý Б Ё Ё ЕЯ Ё B;Eg Е ЁЁ ё вýвЁ f; ?Е F_ý сл (л Ёýн ýЁЁ Е ý*ýЁЁЁЕЁЕýýЁЁЁЁЕЁý* о; 10. UNDRAWN FUNDS Fоr the реriоd from January 1,2022 to June 30,2022 and for the grace period frоm July 1,2022to ОсtоЬег 31,2022 чпdrаwп funds аrе presented as fol|owsr: Grant No. Grant No. Credit No. H9640.TJ D29бO.TJ 6167-TJ lп SDR in ýDR in USD Approved grапt amount 14,300,000 5,400,000 7,500,000 Disbursed duгiпg the реriоd from July 30, 20,14 to ОсtоЬеr 31,2022 (AED PMU) 8,115,726 Disbursed during the реriоd frоm July 30, 2014 to ОсtоЬеr 31,2022 (МОF PlU) 6,184,274 5,400,000 7,500,000 undrawn amount Fiпапсiпg received as at January 1,2022 14,300,000 3,468,202 6,076,723 Disbursed fоr the реriоd frоm January 1, 202.2to June 30, 2022 (AED PMU) Disbursed for the period frоm January 1, 2022to June 30, 2022 (МОF P|U) 1,93,1,798 1,423,277 Fiпапсе received as at June 30,2Q22 ___1_4,300,qqq 7,500,000 Disbursed fог the grасе реriоd frоm July 1, 2022 |о ОсtоЬеr 31 , 2022 (AED РМ U) Disbursed fоr the grace реriоd fгоm July 1, 2Q22to ОсtоЬеr 31,2022 (МОF PlU) Fiпапсе гесеiчеd as at осtоЬеr 31 ,2022 14,300,000 5,400,000 7,500,000 11. CoMMITMENTS ln ihe поrmаl course of activities, the projBct concludes аgrееmепts with suppliars of goodý and services iп ассоrdапсе with the established budget and рrосчrеmепt рlап, Сопtrаёt value of obligations valid as of october 31,2о22 was as follows: Сочпtеrраrtу Contract # ccy contract value PaId up to Remaining ОсtоЬеr 31, аmочпt to Ье 2022 paid lnternational Company "Niras" (Sweden) AED/PMU/QсBS/20,15-01 USD 1,679,748 1,559,5,10 120,238 Ghent University (BeIgium) AED/PMU/сQS/2016-04 USD 277,654 249,889 27,765 Audit organization "Кrеstоп Tashkent" Consulting Services USD 5,599 5,599 1,809,398 _______щ!,602 --_l-,9ý3,991 12, LEGAL CASES Тhеrе were по legal claims related to the Pýect. 13. EVENTS AFTER ТНЕ REPORTING DATE As at the date of issueof these financial Statements по significant events оr transactions happened which should Ье disclosed in ассоrdапсе with lAS '10 "Events аfiеr the rероrtiпg реriоd". 23