. .. . . .гv _ . �А F . . .. . ' . .�1�.yйд���t.Rn п4`д� Hгt�frr'F ; >i � ., 7��;. r ' "�1� i�F`�� l�k�: l` С-Е. `�{ду,. -'� {t"` . У _ й Fи � й ц k �_ �-�н i t � � ьу �ду��� �'�f : . 1 � . � у�':� �, С . _ L � { S jk,'F ' ? '� ' ' -. _ . ( - " ' �. .�-; . �:ri .г,� . - у: - , . у �`����,���16с�м��.г.т� � � _ 1 ',` ",Г� п w - г г . �.у�., �` г, У � д�♦��� � � _ . � �� �� ���г Г г, .' _ �L' . �1ц�� �Иi��МΡ���j Ч� ,�л L' 7р.•'�\� У �£ W1� - Rf г .'::$У_9иа'P7��YF"� •t.�.4�'� гд - _ `1-,т 13} � - '\ � , �ч`- `�"у. � � ' _ _ ! ����vc:�?' *` Т< д ]� � � � �'-. - . > ..,:�":г�И�чм-YS :. - . ч. ,z • .. . .. . . . ... ....,. , . - . - . . . , . .- � .. .. F . � s-'. f r . � .. ' _; й1 ..�:.. - у' _ ;г _ � '=Ё' �, �.г `.. ъ ..:, ._ .;.. ,.: ' + а,� �;,цу � •-,,, , . . . .. .,.. ,. Independent Auditor's Reasonable Assurance Report To PIU Coordinator N,Bayartogtokh Additional Financing to Ulaanbaatar Clean Air Project According to the contract UAG/AA2022-106 made between Additional Financing to Ulaanbaatar Clean Air Project, and 'Inter Audit" LLC, we have audited the Financial Reports. the Statement of Expenditures (SOE). disbursement reports, and designated account statement of the Project for the year ended December 31, 2022, in accordance with International Standard on the International Standards on Auditing, We conducted Our audit in accordance with the International Standards on Auditing issued by the International Auditing and Assurance Standards Board of the International Federation of AccOUntants. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the project financial statements are free of material misstatement, An audit includes examining on a test basis, evidence supporting the arnounts and disclosures in the annual financial reports, An audit also includes assessing the accounting principles used and significant estimates made by rnanagernent as well as evaluating the overall statement presentation We believe Our audit provides a reasonable basis for our opinion. The management policy of the Additional Financing to Ulaanbaatar Clean Air Pro] . ect fs to prepare the projects Financial Statements on the cash receipts and payments basis in conformity with International Public Sector Accounting Standards (IPSAS). On this basis, cash receipts are recognized when received, and cash expenditures are recognized when paid rather than when incurred. In our opinion. the project Financial Statements have been prepared in accordance with the International Public Sector Accounting Standard issued by the Public Sector Committee of the Federation of Accountants, present fairly the cash receipts and payments ofthe project during the year ended December 31, 2022, and, in all material respects expenditure have applied to the purpose intended in the Financing Agreement Credit No. 6493.-MN MUNKHBAYAR CHULUUNBAATAR GENERAL DIRECT Ulaaribaatar, Mo I it a Date 07 Ot6,20 3 The Government of Mongolia The International Development Association Credit N2: 6493-MN Additional Financing to Ulaanbaatar Clean Air Project BALANCE SHEET For the period of Dec 31 2022 /In US Dollar/ Ba lance category Notes Dec 31, Jan 01, 2022 2022 ASSETS: Cash and cash equivalents 3 1,306,024.21 1,598,059,39 Designated account 3.1 Treasury sub-account /dollars/ 3.2 Treasury sub-account 3 3 1,294 500.16 1,578.786.01 Operation aCCOUnT 34 11,524 05 19 273.38 Cumulative Project Expenditures 4 6,693,987.86 480,099.50 Subsidies, goods, works. non-consuIting 4.1 4,191.487.65 1,832,568 62 services. consuIting services. and -Training foi Pat IA Non-consulting services, consulting 4.2 602,884.20 406,915 91 services, and Incremental Operating Costs for Part C' Good Work non-consulting services, 4.3 601,145.97 430,795 93 consulting services, and Training ftr Port D Goods, works. non-consulting services, 1.298.470.04 631.777.16 consulting services, and 1raining for Part B 4 4 Other expenditure 4,5 3,346 99 2 019 04 TOTAL ASSETS 4,905,483.04 4,902,136.05 FUNDS: 5 IDA s fund 5 1 8,000,000 00 4,900 000 00 Net interest-earning 5 2 Other incorne 53 3 359 06 2 136 05 TOTAL FUNDS 8,003, 359 .06 4,902,136.05 r red by: e 1A ISURENAY OKH PIU Fin n al managemet specialst PIIJ Coordinator The Government of Mongolia The International Development Association Credit NQ: 6493-MN Additional Financing to Ulaanbaatar Clean Air Project STATEMENT OF PROJECT SOURCES AND USES FUNDS For the period from Jan 01, 2022, to Dec 31, 2022 /n US Dol ar/ Cumulative Cumulative Sources and Uses Funds Notes to Dec 31, For 2022 to Jan 2022 01, 2022 SOURCES OF FUNDS: IDA's fund 5.1 8,000,000.00 3,100.000,00 4,900.000.00 Net interest earned 5,2 - Other income 5.3 3,359.06 1.223 01 2,136 05 TOTAL SOURCES OF FUNDS 8,003,359.06 3,101,223,01 4,902,136.05 USES OF FUNDS: Subsidies under part-A of the 41 4,19148765 235891903 183256862 Project Non-consulting services, consulting services, and Incremental Operating Costs for 4.2 602.88420 195.96829 406,91591 Prat C Goods works, non-consulting 483 services, consulting services (301,145,97 174.89848 453,247.49 and Training for Part D Goods, works, non-consulting services, consulting services 44 1 298470 04 666 692 88 631,777.16 and Training for Part B Other expenditure 4 5 3,6n 1.327.95 2,019.04 TOTAL SOURCES OF FUNDS 6,69733485 3,397,806,63 3,304,076.6 A SURPLUS OF FUNDS OVERUSES 1,306,024.21 (296,583.62) 1,598,059.39 rg ared by rov Y: DARISUREN N.B ARTOGTOKH PIU n cial Management specialist PlU Coordinator The Government of Mongolia The International Development Association Credit N2: 6493-MN Additional Financing to Ulaanbaatar Clean Air Project STATEMENT OF EXPENDITURES (IDA Withdrawals) For the year ended December 31, 2022 - g- - -- - - -~~ - - -_ __ - _______ __ __ m US_Dollar Numb A -pcation Claimed date credited Amount Amount ers type datle ciaimed credited Difference Up to May 20, 2022 (WAI 1) 1,0000,00m00 W,a-5 Repl-enishnhment 1,000,100.00 1 000 00000 Up to July 01, 2022 (WAI2) 400,000.00 Wa-6 Rep1e rn ent 500 000 00 400.000.00 Up to October 17, 2022 (WA13) 1,700,000.00 Wa_7 Replernjshment 1,400 000 00 1 700 000 00 For the reporting_period 222 3,100,0WOO Up to Decembe 31, 2022 3.100,000,00 p -pared b)y A oved D DARlSUREN N A ARTOGTOKH PliU i ncial management specialist PlU Coordinator bio. cl г: ' гз г_: � ,,,, г�; . �, П3',... � , .. �i �з г , i � � i � а !, �� � ;i ! �:� <; � �, �,_ �� - � � __ л �i, .:' ,_, ' �i . . , . � { : �гз � . � � - � ,..- � � � � � � � - . � {� О ('� . .. ¢ч � � . � t- П3 � у � � �, и �ц .- о : � � � (.�.�r � С3 �" � i ui . .. : �.. (� Т3 � � ГJ '� � � � Ci С7 � С� � � �; � � � �� ;г, j �.� �r) i � � с.� �.tз � ff� а.. � .м, � а,. C.I� �"`� ' � .. . _ _ � r�, , er мrз G'S � � � "� � �` tз � Qi � � (.-. ,�3 { � ri � � � � � � � i', : � � }q е� ,�. �'� Е� ау �� г&i id ЬJ � ьи 1 { � � У-- �i ' ' {'ьЗ ^�" �% � � �} . ( Cia '.'� -� � � �+ � _ � :У C9i � +�С � ,'�, ( -- . RV ��. � ��� t!' 1 � � � � ' ' t.; ц QF � i3 'м" �} '' � й j � � '„�, � � ��',,,г � _ cci •.' � и-л (� � � ��.3 �• � . � . �' �'} ���� д г�.� , r`i ,- Ci ,� � Sб У� - � �`�„, rЛ �°^ �, � ,. ,. ... � � Т" . . � � ` � ` �, ��.1 � ` � са,� � � � � � с� � ° . �а r� `��, �' `� � � са � �? tf7 гсз �'" ,� � ` _ оэ � ixi в�'э � �17 � '.� t , ._ `° г' �.t7 h� С�,. ПS '� _ �- ''Г'_ cv г�ч аз � "g� � �. . , - �. . � . ' xt i � � 4,- � � � � �С3 � . .. , .. :L> �t � � � r: с'i с�а fi.. ц �.-, � , _.. - i�3 er7 h. �, г�: гл �.,i � 1:� �... �, � . . ,- ч-. .. � � � �1- с�з га � .. . "з гt) а-- . � � � � , и`з h.. �. � - , c.b cL� iЧ . . . :i7 U'J ц? �.. . , . _ -� Гч+ сУ> ч�° ��. . . . _ С��_ i-._ цt '. . - . . . , , � - N9 ��. .. � � � , ,г,.° . <' ,_. ..-_ . ~. Ггt _ ,,. � С� � , г � �. т-- � , �� � А ` �,, _ И {� The Government of Mongolia The International Development Association Credit N2: 6493-MN Additional Financing to Ulaanbaatar Clean Air Project DESIGNATED ACCOUNT STATEMENT For the period Dec 31, 2022 /in US Dollar/ Notes Dec 31, 2022 Jan 01, 2022 PART A - Account transactions Beginning balance 213,383.38 Add 3,100,000.00 2,900,000.00 IDA Advance 3,100,000.00 2T90&000.00 Inteiest-Farning Transferred frorn Managemient Fee Account Deduct 3,100,000.00 3,113,383.38 SUbsidieS under parl-A of the project - Goods. Work. non-consulting services. 117-963,64 conSU!t1nq services, Training Part D Non--consulting services, consulting services, 90,00 90,00 and Incremental Operating Costs for Part C Bank charges - - Foreign Lxcharige Loss Transferred to 0 ' perating account Transferred to -Treasury sub-account /dollars/ 3,099,910.00 Z995,329.714 Transferred to'Treasury sub-account Ending balance PART B - Account reconciliations The amount advanced by the jDA 2 9WO00.00 2.900,000.00 Ending balance Add 3,100,000.00 3,113,383.38 Operating account and cash on hand Treasury sub-account 3,099 910.00 2 995 329,74 AiTiount withdrawn but not clairned yet K00 118,05364 Bank charges - Deduct Interest earning Other, incorne 2 V4 Total advance to Designated account for 3,100,000.00 2,900,000.00 Prepared !' V Approved by. DrF)ARII,-,' N N PIU Ftna ia M age: ient Specialist 041'06-04 The Government of Mongolia The International Development Association Credit N2: 6493-MN Additional Financing for Ulaanbaatar Clean Air Project TREASURY SUB ACCOUNT STATEMENT For the period Dec 31, 2022 /in US Doll r/ Notes Dec 31, 2022 Jan 01, 2022 PART A - Account transactions Beginning balance 167,578.13 1,302,180.03 Add 4,265,501.62 1,579,57342 Interest-Earning Transferred from Treasury sub-account /dollars/ 4,265,501 62 1,57957342 Other income Deduct 3,388,744.29 2,718,723.76 SUbsidies under part-A of the project 2,358 919 03 1,543,114 01 Goods, Work, non-consulting services, consulting services, and Training for Part D 174,898 48 288,886 97 Non-consulting services, consUlting services. and Incremental Operating Costs for Part C 25,90567 72,139 34 Goods, works, non-consulting services, consulting services, and Training for Part B 666.69288 631,777.16 Bank charges Foreign Exchange Loss Transferred to Operating account 162.328 23 182806 28 Ending balance 1,044,335.46 167,578 13 PART B - Account reconciliations The amouit advanced by the IDA Ending balance 1,044,335.46 167,578.13 ared by. A ved b DARISUREN BA RTOGTOKH PU F nar ial Margment Specialist PIU Coordinator O1 w The Government of Mongolia The International Development Association Credit Nq: 6493-MN Additional Financing to Ulaanbaatar Clean Air Project TREASURY SUB ACCOUNT /DOLLARS/ STATEMENT For the period Dec 31. 2022 /In US Do ar/ Notes Dec 31, 2022 Jan 01, 2022 PART A - Account transactions Beginning balance 1,415,756.32 Add 3,099,910.00 2,995,329.74 Interest-Earning Transferred from Designated Account 3,099 910 00 2.995,329 74 Other income Deduct Subsidies under part-A of the project Goods Work non-consulting services. consulting services, and Training for Part D Non-consulting services. consulting services and Incremental Operating Costs for Part C Goods, works. non-consulting services consulting services, and Training for Part B Bank charges Foreign Exchange Loss Transferred to Treasury sub-account 4,265,501.62 1, 579,57342 Ending balance 250,164.70 1,415,756.32 PART B - Account reconciliations The amount advanced by the IDA Ending balance 250,164.70 1,415,756.32 Notes to the financial statements 1. Project background The objectives of the Project are to enable consumers in ger areas to access heating appliances producing less particu ate matter emissions and to further develop selected medium-term particulate matter abatement measures in Ulaanbaatar in coordination with development partners The Project consists of the following parts subject to such modifications thereof, as the Recipient and the Association may agree upon from time to achieve the objectives of the Project. Part A. Ger Area Particulate Matter Mitigation Implementation of a stove replacement program and a low-pressure boiler replacement program, including 1. Provision of capital subsidies to eligible households for the purchase of selected heating appliances, inc luding stoves (beginning September 2013 or upon completion of the stove component of the Millennium Challenge Corporation s Energy and Environment Project. whichever comes earlier), stoves for heating walls and low-pressure boilers from eligible stove and pressure boiler producers and suppliers. and stove replacement 2. technical support to the stove and low-pressure boiler suppliers includina, a. goods,. technical assistance, and Operating Costs for the Stove Emissions and Efficiency Testing Laboratory: b. technical assistance arid equipment for technical advice in addressing problems with the design and production of the stoves and low pressure boilers c technical assistance in the development of emissions standards for stoves and low- pressure boilers; d, market development support and technical assistance to design and implement adjustments to the stove replacement program and for accommodating low-pressure boilers. and e technical assistance in the establishment of a system of monitoring the quality of products supported by the Project* f monitoring and evaluation, and g training for knowledge exchange. Part B Central Ulaanbaatar Particulate Matter Mit gation 1 Mitigation of fugitive dust from lack of city greening Preparation of an action plan for city greening, and preparation and implementation of the pilot, including (a) assessment of greening programs in Ulaanbaatar. evaluation of options and developing recommendations to improve green,ng, (b) preparation of a pilot project including support for bid document preparation and (c) investment support for the supply and installation of grass and other eligible plants and trees in Ulaanbaatar on a pilot basis 2. Mitigation of dust from power plant emissions and ash ponds Carrying out of feasibility study for (a) the installation of improved emission controls in Ulaanbaatar's combined heat and power plants- and (b) the mitigation of dust from power plan ash ponds, the study of their environmental impacts. and recommend cost-effective solutions 3 District heating feasibility study and knowledge building (a) Carrying out of feasibility study for rehabil!tation and sustainable expansion of district heating in Ulaanbaatar (b) Complementary training on district heating policy, regulation, and management 4 Affordable housing policy technica assistance (a) Carrying out assessments of current policies, laws, and practices for affordable housing provision in Ulaanbaatar evaluation of effectiveness towards meeting policy objectives. and introduction of lessons from international experiences on affordable housing. (b) Development of an affordable rhousing strategy for Ulaanbaatar. Part C. Public Awareness Raising, Program Coordination, and Project Management 5 Air quality monitoring. management. and analysis (a) Air quality monitoring and analysis equipment including for the Ulaanbaatar Air Quality Agency. (b) Improving urban air quality analysis arid management. 6 Program Coordination support (a) Consultants' services to assist Ufaanbaatar's air pollution program coordination, including maintaining links with stakeholders, collecting, synthesizing and archiving information on air quality for use by decision-makers and the public and provide to support to air quality working groups or coordination mechanism to improve effectiveness and shanng of information (b) Improving air quality managerent and policy-making. T Project management. public awareness and monitoring and evaluation. (a) Assistance with the development of a communication program for the Project (b) Management Fee for Project management services kc) Monitoring and evaluation. Part D. Additional component. D This component will enable ger households in the targeted area to access modern heating appliances such as ETS heaters. The target households are mainly those still using traditional coal-burning stoves The component will mainly finance (i) provision and installation of modern heating appliances at selected houses, along with needed distribution network upgrades, such as installation of two-tariff electric meters, power cable connection, and wire upgrade for the last mile distribution lines from meters to selected houses and (ii) technical assistance and capacity building on advanced heating technologies arid associated program design Under the component, the heating appliances are provided to program households under a rent-to- own model where the households pay a fixed monthly fee for the appliance(s) over a set number of months before the ownership of the appliance(s) is transferred to the households The Closing Date is Dec 31, 2023. 1The following table specifies the categories of Eligible Expenditures that may be financed out of the proceeds of the Financing ("Category") the alocations of the amounts of the Financing to each Category, and the percentage of expenditures to be financed for Eligible Fxpen iditures each &pj,(..0 Category /Ir US Dollar Amount of the Percentage of Category Financing Allocated Expenditures to be (expressed in USD) -manced (inclusive of Taxes) 1) Subsidies under part A of the 1 Pro ec7100,00 00 10 0 1/o Project 2) Goods works, non-consulting services consultIng services and 3,050 000 100%/ Training for Part B of the Project 2) Non-consulting services consulting services and incremental Operating Costs for 1 100 000 00 100% Part C (3) Goods, work, non-consulting services consulting services and 750 00000 100% Training for Part D TOTAL AMOUNT i 2,000,000.00 2. Summary of significant accounting policies a) Statement of compliance The financial monitoring reports comprise the balance sheet a sunimary of the source and use of funds. the statement of expenditures, and the special account reconciliation statement. These financial monitoring reports have been prepared in accordance with Financial Monitoring Reports for World Bank-financed Projects: Guidelines for Borrowers. b) Basis of preparation The financial monitoring reports are prepared in accordance with International Public Sector Accounting Standards (IPSASs) issued by the International Public Sector Accounting Standards Board (IPSASB) of the International Federation of Accountants and cash receipts and disbursement basis of accounting have been applied, On this basis, receipts are recognized when received or direct payments to creditors are made rather than when income is earned arid disbursements are recognized when paid rather than when expenses are incurred. c) Basis of measurement T he financial monitoring reports are presented in U.S.Dollar (USD). Cash balances denominated in currencies other than USD are translated into USD at year-end rates of exchange stated by the Bank of Mongola. Transactions denominated in currencies other than USD are translated at rates at the dates of the transaction stated by the depository bank, Any gains and losses are reflected in the statement of sources and uses of funds d) Basis of presentation IWI. 66.01 d) Basis of presentation The accounts balance in the Financial Monitoring Reports as of December 31, 2022 have been presented on December 31, 2021 e) Designated account According to the Disbursement Letter the project opened the Designated Account one segregated account for loan financing at the State Bank acceptable to the World Bank. The designated account presented in USD is acceptable to the World Bank NOTES TO THE PROJECT FINANCIAL STATEMENTS 3. Cash and cash equivalents The PlU opened the Designated, Treasury sub-account, Treasury sub-account /dollars/ and Operating account for carrying out project activities. As of December 31, 2022, the cash and cash equivalents are as follows /In US Dollar/ 31-Dec-2022 01-Jan-2022 Desi gnated -,Count Treas,, ury subh---a(CCout !c/ollarj 250,1164 70 i1, 4 1 '- 5 , 321 T rea, suLiry su-cont 1,044,335,46 167.5778 13 0perating ac count 11.524 05 1 !327338 1,306,024.21 1,598,059,39 4, Cumulative project expenditures 4.1 he expenditures for Subsidies under part-A of the Project /In US Dollar! Cumulativ Dec 31, 2022 Tce cumulative project expenditure prior to the reporting period ubs idies for Part A of the Project 4,191,487 65 Total 4,191,487.65 4.2 Goods, works. non-consuting services. consulting servic e and Training for Part D /in US Doll ar/ Cumuative Dec 31, 2022 The cumuia Ive proj ect expenditure prior to the reporting period Goods 474, 5J 12 Works 119,181 07 Consultants services 7433.88 Training and Vorkshops Operating Costs Total 601,145.97 4.3 The expenditures for Operating costs under Part C(3)(b) of the Project In US Doar Cunuiative Dec 31, 2022 The cumulative project expenditure prior to the reporting period PMU Sta Sar89.88 Statio na ry 8 1889 78 Transporat~iund Fuel Cost 3787 70 Renta 6 Communication and Telephone Cost 11 105.34 Office Supply and Admirn stra o 28 106 45 PMU Staff travel Cost PubLe Awareness Cost 2 605 7 Tender Expenditure 3 3460 99 Audif ng Good tor Project Management (offce equipment) Consu tants services 42.202.79 Tranng5 4499 Total 599 068.72 4.4 Goods, works non-consultng services consulting services and Traiing for P3a rt B3 Curnulative Dec 31, 2022 VVor6 1208,470A04 Consultants services Tra rning and Workshops O perating Costs Total 1,298,470.04 4.5 Other expendrture n1 US DQUar,1 Cumuative Dec 31, 2022 Curnulative Dec 31, 2021 Bank Servi Charges 20500 11500 Foreign Exchange 1oss enirde r expense Other expenditure Total 205.00 11500 5. Funds In the reporting year $ 3,100,000,00 was financed by the World Bank 5.1 Net interest earned /in US Dolar Cumulative Dec 31, 2022 Cumulative Dec 31, 2021 Net 1ere;t earned Total 5.2 Other income /In US D ollat/ Cumulative Dec 31. 2022 Cumulative Dec 31 2021 Foreign Exchang e Gain Other Funds 3,506 2.13605 Tota1 3,359.06 2,136 05 6. Procurement Agreement In the reporting year, 12 new contracts were concluded and USD 3 785.000.00 was paid. Other expenditures were audited, including supplier selection and initial documentation No inconsistencies were foUnd in the regulation of the audit procedures of the international Standards on Auditing 7. The Postreportng process The project completion date will continue to be held on 31 December, 2023 �а :. х �ь F,; �: ��. � �к У � �1 - .. . . , . . : 3 . ` F ,"� г "�� о ;з . ~,