"Second Dushanbe Water Supply Project" Grant No. H692-TJ, Grant No. D087-TJ, Credit No. 5709-TJ The project financial statements for the period from January 1, 2020 to March 31, 2020 and the grace period from April 1, 2020 to July 31, 2020 and independent auditors' report "SECOND DUSHANBE WATER SUPPLY PROJECT" GRANT NO. H692-TJ, GRANT NO. D087-TJ, CREDIT NO. 5709-TJ TABLE OF CONTENTS Page STATEMENT OF MANAGEMENT'S RESPONSIBILITIES FOR THE PREPARATION AND APPROVAL OF THE PROJECT FINANCIAL STATEMENTS 2 INDEPENDENT AUDITORS' REPORT 3-4 THE PROJECT FINANCIAL STATEMENTS FOR THE PERIOD FROM JANUARY 1, 2020 TO MARCH 31, 2020 AND THE GRACE PERIOD FROM APRIL 1, 2020 TO JULY 31, 2020 Summary of funds received and expenditures paid 5 Summary of expenditures paid by project components 6-7 Notes to the project financial statements 8-16 "SECOND DUSHANBE WATER SUPPLY PROJECT" GRANT NO. H692-TJ, GRANT NO. D087-TJ, CREDIT NO. 5709-TJ STATEMENT OF MANAGEMENT'S RESPONSIBILITIES FOR THE PREPARATION AND APPROVAL OF THE PROJECT FINANCIAL STATEMENTS The following statement, which should be read in conjunction with the independent auditors' responsibilities is made with a view to distinguish the respective responsibilities of management and those of the independent auditors in relation to the project financial statements of the Project "Second Dushanbe Water Supply Project", Grant No. H692-TJ, Grant No. D087-TJ, Credit No. 5709-TJ (the "Project"). Management is responsible for the preparation of the project financial statements that present fairly, in all material respects, the summary of funds received and expenditures paid and the summary of expenditures paid by project components of the Project for the period from January 1, 2020 to March 31, 2020 and the grace period from April 1, 2020 to July 31, 2020 in accordance with International Public Sector Accounting Standard "Financial Reporting Under the Cash Basis of Accounting" (the "IPSAS") issued by the International Public Accounting Standards Board of the International Federation of Accountants and the World Bank's Financial Management Sector Board's "Guidelines: Annual Financial Reporting and Auditing for World Bank Financed Activities" (the "WB Guidelines"). In preparing the project financial statements, management is responsible for: * selecting suitable accounting policies and applying them consistently; * making judgments and estimates that are reasonable and prudent; * stating whether IPSAS and WB Guidelines have been followed, subject to any material departures disclosed and explained in the project financial statements; and * preparing the project financial statements on a going concern basis, unless it is inappropriate to presume that the Project will be implemented in accordance with the established period. Management is also responsible for: * designing, implementing and maintaining effective and sound system of internal control and for revealing risks in system of internal control; * maintaining proper accounting records that disclose, with reasonable accuracy at any time, the financial position of the Project, and which enable them to ensure that the project financial statements of the Project comply with IPSAS and WB Guidelines; * compliance with laws and regulations of the Republic of Tajikistan, accounting system of the Project and the requirements of the World Bank; * taking such steps as are reasonably available to them to safeguard the assets of the Project; and * detecting and preventing fraud and other irregularities. The project financial statements for the period from January 1, 2020 to March 31, 2020 and the grace period from April 1, 2020 to July 31, 2020 were approved and authorized for issue on September 25, 2020 by the management of the Project. On behalf of the Management: UbaidzodaNI - Najofov Z Director Chief Accountant September 25, 2020 September 25, 2020 -Dushanbe, Republic of Tajikistan Dushanbe, Republic of Tajikistan 2 Ore bakertilly 65 Stefan cel Mare i SfAnt Blvd 7" Fcor, afice 715 Chisinau, MD-2001 Moldova T: +373 22 233003 F: +373 22 234044 info@bakert illy md w+vwhakert i l.Md INDEPENDENT AUDITORS' REPORT To the management of the Project "Second Dushanbe Water Supply Project" under the State Unitary Enterprise "Dushanbe Vodokanal" and the State Committee on Investments and Government Property Management of the Republic of Tajikistan: Report on the project financial statements Opinion [1] We have audited the project financial statements of the Project "Second Dushanbe Water Supply Project" (the "Project") which comprise the summary of funds received and expenditures paid and the summary of expenditures paid by project components for the period from January 1, 2020 to March 31, 2020 and the grace period from April 1, 2020 to July 31, 2020, and a summary of significant accounting policies and other explanatory information (the "project financial statements"). [2] In our opinion, the accompanying project financial statements present fairly, in all material respects, the summary of funds received and expenditures paid and the summary of expenditures paid by project components of the Project for the period from January 1, 2020 to March 31, 2020 and the grace period from April 1, 2020 to July 31, 2020 in accordance with International Public Sector Accounting Standard "Financial Reporting Under the Cash Basis of Accounting" (the "IPSAS") issued by the International Public Sector Accounting Standards Board of the International Federation of Accountants, and the World Bank's Financial Management Sector Board's "Guidelines: Annual Financial Reporting and Auditing for World Bank Financed Activities" (the "WB Guidelines"). Basis for opinion [3] We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the project financial statements section of our report. We are independent of the Project in accordance with the International Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants (IESBA Code) together with the ethical requirements that are relevant to our audit of the financial statements, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Emphasis of matter (4] Without further qualifying our opinion, we draw attention to Note 2 to the project financial statements, which describes the basis of accounting. These project financial statements were prepared for complying with the appropriate World Bank Guidelines and Financing agreements requirements. Other matter [5] The project financial statements are prepared to assist the Project to comply with the requirements of the World Bank. As a result the project financial statements may not be suitable for another purpose. 3 Responsibilities of management and those charged with governance for the project financial statements [6] Management is responsible for the preparation and fair presentation of the project financial statements in accordance with International Public Sector Accounting Standard "Financial Reporting Under the Cash Basis of Accounting" (the "IPSAS") issued by the International Public Accounting Standards Board of the International Federation of Accountants, and the World Bank's Financial Management Sector Board's "Guidelines: Annual Financial Reporting and Auditing for World Bank Financed Activities" (the "WB Guidelines"), and for such internal control as management determines is necessary to enable the preparation of the project financial statements that are free from material misstatement, whether due to fraud or error. Auditor's responsibilities for the audit of the project financial statements [7] Our objectives are to obtain reasonable assurance about whether the project financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the project financial statements. As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: * Identify and assess the risks of material misstatement of the project financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. * Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Project's internal control. * Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. * Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Project's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the project financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Project to cease to continue as a going concern. * Evaluate the overall presentation, structure and content of the project financial statements, including the disclosures, and whether the project financial statements represent the underlying transactions and events in a manner that achieves fair presentation. [8] We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. (91 We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate to them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. Baker Tilly Kfitou and Partners SRL Chisinau, Republic of Moldova September 25, 2020 4 "SECOND DUSHANBE WATER SUPPLY PROJECT" GRANT NO. H692-TJ, GRANT NO. D087-TJ, CREDIT NO. 5709-TJ SUMMARY OF FUNDS RECEIVED AND EXPENDITURES PAID FOR THE PERIOD FROM JANUARY 1, 2020 TO MARCH 31, 2020 AND THE GRACE PERIOD FROM APRIL 1, 2020 TO JULY 31, 2020 (in US dollars) Notes The grace For the For the year Cumulative period from period from ended April 1, January 1, December 31, 2020 to 2020to 2019 July 31, March 31, 2020 2020 Opening balance 4 19,988 20,697 873,996 - Funds received Grant No. H692-TJ 5 - - - 14,776,575 Grant No. D087-TJ 5 - - 1,247,563 4,608,494 Credit No. 5709-TJ 5 1,125,029 800,000 2,697,469 5,412,269 Co-financing by the Local State Executive Authority ("LSEA") 5 - - 4,430 3,999,877 Total funds received 1,125,029 800,000 3,949,462 28,797,215 Other income - - 3,623 54,622 Total receipts 1,125,029 800,000 3,953,085 28,851,837 Project expenses Works and non-advisory services 6 311,793 307,421 2,788,109 15,307,690 Goods and non-advisory services 6 252,784 307,867 1,423,212 6,396,644 Advisory services, including audit 6 251,785 172,047 538,612 6,006,590 Operating costs 6 4,058 12,632 45,990 419,059 Total project expenses 820,420 799,967 4,795,923 28,129,983 Foreign exchange loss 2,020 716 10,375 189,761 Other expenses 15 26 86 209,531 Closing balance 4 322,562 19,988 20,697 322,562 On behalf of the Management: Ubaidzoda M. Na Director Chief untant IV, September 25, 2020 September 25, 2020 D.u,shianbe, Republic of Tajikistan Dushanbe, Republic of Tajikistan The notes on pages 8-16 form an integral part of the project financial statements. The independent auditors' report is on pages 3-4. 5 "SECOND DUSHANBE WATER SUPPLY PROJECT" GRANT NO. H692-TJ, GRANT NO. D087-TJ, CREDIT NO. 5709-TJ SUMMARY OF EXPENDITURES PAID BY PROJECT COMPONENTS FOR THE PERIOD FROM JANUARY 1, 2020 TO MARCH 31, 2020 AND THE GRACE PERIOD FROM APRIL 1, 2020 TO JULY 31, 2020 (in US dollars) For the grace For the For the year Cumulative period from period from ended April 1, January 1, December 31, 2020to 2020to 2019 July 31, March 31, 2020 2020 Component 1: Metering and demand management 260,957 307,867 1,426,694 8,116,888 Purchase of 76,500 residential water meters - - - 2,901,173 Installation of 76,500 residential water meters - - 2,593,908 Mains replacement and network sectorization for loss reduction - - 1,086,608 216,253 Procurement and installation of equipment for energy savings - 126,900 331,398 1,358,075 Purchase and installation of bulk flow meters at water production facilities - - - 84,552 Customer satisfaction surveys 8,173 - 8,688 96,762 Communication strategy and public awareness campaigns to promote metering and demand management 252,784 180,967 - 803,544 Purchase of Network Information System - - - 31,500 Procurement of communication support and ICT-based reporting system - - - 30,121 Component 2: Water quality improvement 311,793 307,421 2,788,109 12,342,822 Partial renewal of filtration capacity at Samotechnaya Water Treatment Plant - - - 5,279,343 Reconstruction of additional 50% of SAM WTP filters 311,793 307,421 2,788,109 5,548,392 Design, build and installation of Rapid Sand Filters at sand - - - 691,330 Cleaning network sections and reservoirs - - - 294,334 Purchase of hydraulic excavator - - - 28 1,996 Purchase and installation of re-chlorination units at 5 reservoirs - - - 130,330 Purchase of laboratory equipment - - - 63,275 Purchase of the measuring equipment for leakage detection - - - 53,822 Component 3: Institutional strengthening and capacity-building 46,850 73,436 - 4,363,051 Technical assistance for operational improvements - - - 2,177,968 Technical assistance for corporate development and improvement of financial performance - - - 1,287,051 Consulting services on the elimination of issues based on the results of audit for 2018 6,985 7,426 - 14,411 Consulting services for staff development 6,965 7,405 - 14,370 Restructuring of water and sanitation tariffs 32,900 58,605 3,973 95,478 Modernization of accounting, billing and collection systems - - - 374,104 Training programs - 231,337 Institutional assessment - - - 168,332 6 "SECOND DUSHANBE WATER SUPPLY PROJECT" GRANT NO. H692-TJ, GRANT NO. D087-TJ, CREDIT NO. 5709-TJ SUMMARY OF EXPENDITURES PAID BY PROJECT COMPONENTS FOR THE PERIOD FROM JANUARY 1, 2020 TO MARCH 31, 2020 AND THE GRACE PERIOD FROM APRIL 1, 2020 TO JULY 31, 2020 (CONTINUED) (in US dollars) For the grace For the For the year Cumulative period from period from ended April 1, January 1, December 31, 2020to 2020to 2019 July 31, March 31, 2020 2020 Component 4: Project implementation support 200,820 111,243 577,147 3,308,222 Design and supervision of works 195,597 93,674 466,171 2,072,516 Project management operating costs 5,223 17,569 71,690 474,378 Annual audits - - 39,286 761,328 820,420 799,967 4,795,923 28,129,983 On behalf of the Management: Ubaidzoda M. N Director Chief untant September 25, 2020 September 25, 2020 Dushanbe, Republic of Tajikistan Dushanbe, Republic of Tajikistan The notes on pages 8-16 form an integral part of the project financial statements. The independent auditors' report is on pages 3-4. 7 "SECOND DUSHANBE WATER SUPPLY PROJECT" GRANT NO. H692-TJ, GRANT NO. D087-TJ, CREDIT NO. 5709-TJ NOTES TO THE PROJECT FINANCIAL STATEMENTS FOR THE PERIOD FROM JANUARY 1, 2020 TO MARCH 31, 2020 AND THE GRACE PERIOD FROM APRIL 1, 2020 TO JULY 31, 2020 (in US dollars 1. GENERAL INFORMATION According to the Financing Agreement between the Republic of Tajikistan and International Development Association (the "IDA") dated July 13, 2011, the IDA provided a Grant No. H692-TJ in the amount of 10,100,000 Special Drawing Rights to the Republic of Tajikistan. According to Financing agreements between the Republic of Tajikistan and IDA dated August 7, 2015 the IDA provided an additional financing in the form of Grant No.DO87-TJ in the amount of 3,300,000 SDR and Credit No. 5709-TJ in amount of 4,000,000 SDR. The Grant was provided for the implementation of the Project "Second Dushanbe Water Supply Project" (the "Project"). Effective date of the Project is February 7, 2013. Project completion date is March 31, 2020. Project purpose The purpose of the Project is to assist the State Unitary Enterprise "Dushanbe Vodokanal" (the "DVK") in improving the efficiency water services company activities and water supply services in certain districts of Dushanbe. The Project comprises the following components: Component 1: Metering and demand management; Component 2: Water quality improvement; Component 3: Institutional strengthening and capacity-building; Component 4: Project implementation support. Component 1. Metering and demand management The component finances consumption metering and bulk metering of water, for increased revenue, reduced wastage, and better tracking of losses, including: (i) supply and installation of 76,500 residential meters (i.e. approximately 46% of DVK users) and installation of 1,500 apartment building master meters in selected areas of the city; (ii) rehabilitation of 1,500 apartment building service connections; (iii) supply and installation of bulk flow meters at water production facilities; (iv) supply and installation of a Network Information System (NIS); (v) communication strategy and public awareness campaigns to promote metering and demand management; and (vi) installation of SCADA system. Component 2. Water quality improvement The component supports system upgrades for improved quality of water, including: (i) partial renewal of filtration capacity at Samotechnaya Water Treatment Plant("WTM"); (ii) network cleaning; (iii) installation of in-network re-chlorination systems; (iv) equipment for water quality monitoring; (v) reconstruction of pumping station and tanks at the Napornaya VVTP; and (vi) procurement of maintenance equipment. Component 3. Institutional strengthening and capacity-building The component finances activities to build institutional capacity and improve utility performance of DVK, which includes (i) carrying out an assessment of DVK's organizational and capacity-building needs; (ii) installation of modern accounting, billing and water revenue collection systems; (iii) provision of technical assistance to the management of DVK to improve its financial performance; (iv) provision of technical assistance, and carrying out of studies to improve the water supply operations of DVK, including studies for hydraulic modeling, and for design of pressure zones and SCADA system; and (v) implementation of training programs for DVK staff. 8 Component 4. Project implementation support The component provides project implementation support including (i) design and supervision of works; (ii) project implementation operating costs, and (iii) annual project audits. Project management The Management is implemented by the Project Administration Unit (the "PAU") within the scope of the State Unitary Enterprise "Dushanbe Vodokanal". 2. PRESENTATION OF THE PROJECT FINANCIAL STATEMENTS Basis of preparation These project financial statements have been prepared in accordance with the International Public Sector Accounting Standard (the "IPSAS") "Financial Reporting under the Cash Basis of Accounting" issued by the Public Sector Committee of the International Federation of Accountants, and incorporate the following principal accounting policies, which have been consistently followed in all material respects and comply with the World Bank's Financial Management Sector Board's "Guidelines: Annual Financial Reporting and Auditing for World Bank Financed Activities" (the "WB Guidelines"). Under the cash basis approach income (or expenditure) is recognized when cash is received (or paid) irrespective of when goods or services are received or provided. The Project's approved budget disclosed by categories of expenses is not publicly available and as such comparison of budget and actual amounts is not presented. These project financial statements consist of: * Summary of funds received and expenditures paid; * Summary of expenditures paid by project components; * Notes to the project financial statements, including short description of main statements of accounting policy and other descriptive notes. The reporting currency of these project financial statements is US dollars (the "USD"). 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Cash basis of accounting The project financial statements are prepared on a cash basis of accounting. The cash basis of accounting recognizes transactions and events only when cash (including cash equivalents) is received or paid by the Project. The project financial statements prepared under the cash basis provide readers with information about the sources of cash raised during the period, the purposes for which cash was used and the cash balances at the reporting date. The measurement focus in the project financial statements is balances of cash and changes therein. Foreign currency Operations in foreign currency initially are counted in functional currency by the currency exchange rate settled by the National Bank of Tajikistan (the "NBT") on a date of operation. Funds received are translated into US dollars at official exchange rate of Special Drawing Rights (the "SDR") at the date of funds receipt. All payments made in local currency are translated into US dollars at the official exchange rate defined by the NBT, at the date of transaction. Monetary assets and liabilities expressed in foreign currency are converted to functional currency at official exchange rate on a date settled by the NBT. All foreign exchange differences resulted from maturity or recounting are included in the summary of funds received and expenditures paid. Non-monetary items are valued according to their historic cost in foreign currency, which are recalculated on rates of the initial operation date. 9 Cash and cash equivalents Cash and cash equivalents include cash on hand and due from banks, which can be converted to the corresponding amount of cash in the short term. Balances of advances paid to employees at the end of the period are also part of closing cash position. Balances of advances paid to employees at the end of the period are also part of closing cash position. Taxes Calculation and payment of personal income tax and social security contributions from income of staff and consultants is made in accordance with the requirements and rates of the Tax Code of the Republic of Tajikistan and relevant legislation of the Republic of Tajikistan, Project expenses The expenses are recorded in the period when they were actually paid. Sources of funds The funds were provided by the World Bank to the Project by advance, reimbursement or through direct payment. LSEA funds represents funds provided by the Local State Executive Authority of the city of Dushanbe to facilitate the implementation of the Project in accordance to Financing and Grant agreements. 4. CASH AND CASH EQUIVALENTS Cash and cash equivalents as at July 31, March 31, 2020 and December 31, 2019 comprise Source of financing Currency July 31, March 31, December 31, 2019 2019 2019 Grant No. D087-TJ Designated account Credit No. 5709-TJ USD 270,619 270 - Grant No. D087-TJ Transit account Credit No. 5709-TJ TJS 17,145 1,046 1,419 Co-financing account Co-financing by LSEA TJS 3,386 3,508 18,170 Co-financing account Co-financing by LSEA USD 31,300 15,051 - Tender account Grant No. D087-TJ TJS - - 204 Cash on hand TJS - - 785 Advances to employees TJS 112 113 119 322,562 19,988 20,697 10 5. FUNDS RECEIVED The fund received are presented by the following financing methods and sources of financing: For the grace For the For the year Cumulative period from period from ended April 1, January 1, December 31, 2020 to 2020 to 2019 July 31, March 31, 2020 2020 Grant No. H692-TJ Reimbursement of expenses - 6,340,403 Direct payment - - - 5,489,001 Advance - 600,000 Special commitment - - - 2,347,171 - - - 14,776,575 Grant No. D087-TJ Reimbursement of expenses - 1,247,563 2,708,214 Direct payment - 1,300,280 Advance - - - 600,000 - 1,247,563 4,608,494 Credit No. 5709-TJ Reimbursement of expenses - 800,000 2,400,000 3,589,771 Direct payment 244,829 - 297,469 542,298 Advance 880,200 - - 1,280,200 1,125,029 800,000 2,697,469 5,412,269 Co-financing by LSEA Reimbursement of expenses - - 4,430 3,999,877 1,125,029 800,000 3,949,462 28,797,215 11 6. PROJECT EXPENSES The Project expenses on major categories are presented in the summary of funds received and expenditures paid. The Project expenses by components are presented in the summary of expenditures paid by project components. Breakdown of project expenses by nature is presented as follows: For the grace period from April 1, 2020 to July 31, 2020 Grant No. Grant No. Co-financing Total H692-TJ D087-TJ by LSEA Credit No. 5709-TJ Works - 337,962 6,731 344,693 Consulting services - 218,064 821 218,885 Goods - 227,468 25,316 252,784 Payroll and related taxes 3,576 - 3,576 Bank fees 309 5 314 Other . 168 - 168 - 787,547 32,873 820,420 For the period from January 1, 2020 to March 31, 2020 Grant No. Grant No. Co-financing Total H692-TJ D087-TJ by LSEA Credit No. 5709-TJ Works - 465,723 27,203 492,926 Consulting services - 113,442 - 113,442 Goods - 166,709 18,097 184,806 Payroll and related taxes - 6,274 - 6,274 Stationery - 262 - 262 Fuel expenses - 315 - 315 Communication - 299 - 299 Bank fees 233 27 260 Other - 1,383 - 1,383 - 754,640 45,327 799,967 12 For the year ended December 31, 2019 Grant No. Grant No. Co-financing Total H692-TJ D087-TJ by LSEA Credit No. 5709-TJ Works - 3,483,711 391,006 3,874,717 Consulting services - 478,154 12,409 490,563 Goods - 309,344 33,140 342,484 Payroll and related taxes - 25,447 - 25,447 Audit - 39,286 - 39,286 Business trips 8,591 - 8,591 Stationery - 522 - 522 Fuel expenses - 2,429 - 2,429 Trainings - 165 - 165 Communication - 1,545 - 1,545 Bank fees - 1,433 63 1,496 Advertising expenses - 788 - 788 Operating expenses - 6,931 296 7,227 Other - 663 - 663 - 4,359,009 436,914 4,795,923 Cumulative Grant No. Grant No. Co-financing Total H692-TJ D087-TJ by LSEA Credit No. 5709-TJ Works 6,806,283 6,683,532 2,593,357 16,083,171 Consulting services 3,499,101 1,925,637 13,230 5,437,968 Goods 3,358,051 1.078,525 817,424 5,253,999 Payroll and related taxes 131,303 73,653 - 204,956 Audit 133,920 83,111 - 217,031 Business trips 14,801 9,817 - 24,618 Stationery 18,848 1,091 - 19,939 Fuel expenses 16,832 5,932 - 22,764 Trainings 222,223 165 - 222,388 Communication 10,814 3,416 - 14,230 Bank fees 7,341 4,052 560 11,954 Advertising expenses 4,556 1,468 - 6,024 Operatingexpenses 560,700 31,790 329 592,819 Other 12,612 4,273 1,237 18,122 14,797,385 9,906,462 3,426,136 28,129,983 13 7. FINANCIAL POSITION Financial position as at July 31, 2020, March 31, 2020 and December 31, 2019 comprise: July 31, March 31, December 31, 2020 2020 2019 ASSETS AND EXPENDITURES Cash and cash equivalents 322,562 19,988 20,697 Cumulative expenses 28,129,983 27,309,563 26,509,596 Foreign exchange loss 189,761 187,741 187,025 Other expenses 209,531 209,516 209,490 TOTAL ASSETS AND EXPENDITURES 28,851,837 27,726,808 26,926,808 FINANCING Funds received 28.797,215 27,672,186 26,872,186 Other income 54,622 54,622 54,622 TOTAL FINANCING 28,851,837 27,726,808 26,926,808 8. WITHDRAWAL APPLICATIONS Withdrawal applications for the period from January 1, 2020 to March 31, 2020 comprise: Sources of Applications Date Advance Direct Reimburse- Total financing payment ment of expenses Credit No. 5709-TJ 70 February 12, 2020 - - 400,000 400,000 71 February 10, 2020 - - 400,000 400,000 - - 800,000 800,000 Withdrawal applications for the grace period from April 1, 2020 to July 31, 2020 comprise: Sources of Applications Date Advance Direct Reimburse- Total financing payment ment of expenses Credit No. 5709-TJ 73 April 16, 2020 - 244,829 - 244,829 79 June 24, 2020 280,200 - - 280,200 80 July 28, 2020 600,000 - - 600,000 880,200 244,829 - 1,125,029 14 9. STATEMENT OF DESIGNATED ACCOUNT Statement of designated accounts for the period from January 1, 2020 to March 31, 2020 and grace period from April 1, 2020 to July 31, 2020 comprise: Designated accounts Grant No. D087-TJ Credit No. 5709-TJ Currency US Dollars Bank account 20206840500240000113 Bank OJSC "Bank Eskhata" Bank's location 11 Adhamov str. Dushanbe, the Republic of Tajikistan Balance as at January 1, 2020 Reimbursement 800,000 Transfer between accounts 49,000 Total funds received to the designated account 849,000 Expenses paid 556,605 Bank charges 66 Transfer between accounts 292,059 Balance as at March 31, 2020 270 Advances 880,200 Transfer between accounts 15,000 Total funds received to the designated account 895,200 Expenses paid 567,116 Bank charges 69 Transfer between accounts 57,666 Balance as at July 31, 2020 270,619 10. UNDRAWN FUNDS As at July 31, 2020 undrawn funds are presented as follows: Grant No. Grant No. Credit No. H692-TJ D087-TJ 5709-TJ in SDR in SDR in SDR Approved financing amount 10,100,000 3,300,000 4,000,000 Disbursed during the period from July 13, 2011 to March 31, 2020 10,099,993 3,299,658 3,104,851 Disbursed during the grace period from April 1, 2020 to July 31, 2020 - - 808,832 Undrawn financing amount 7 342 86,317 Financing received as at January 1, 2020 10,099,993 3,299,658 2,521,193 Disbursed during the period from January 1, 2020 to March 31, 2020 - - 583,658 Disbursed during the grace period from April 1, 2020 to July 31, 2020 - - 808,832 Financing received as at July 31, 2020 10,099,993 3,299,658 3,913,683 15 11. COMMITMENTS In the normal course of activities, the Project concludes agreements with suppliers of goods and services in accordance with the established budget and procurement plan. Contract value of obligations valid as at July 31, 2020 was as follows: Counterparty Contract No. Contract Paid up to July Remaining value 31, 2020 amount to be paid LLC "Shahmaran" DWSP2AF/W-03 1,445,673 1,372,175 73,498 CES Consulting Engineers DWSP2AF- Salzgitter GmbH 14/ammendment 1,014,000 952,216 61,784 Ludwig Pfeiffer Hoch- und DWSP2AFAN-09 Tiefbau GmbH & Co.KG 5,75,573 5,548,392 27,180 LLC "Zumrut" DWSP2AF/G-04-1 47,275 44,771 2,504 Rui Cunha Marques DWSP2AF/IC-21 6,913 5,286 1,627 OJSC "Tojikkommunproekt" DWSP2AF/CS-08 34,169 32,642 1,527 Dewi Rogers DWSP2AF/IC-07 4,232 2,717 1,515 Irgashev Bakhtiyor DWSP2AF/IC-01 3,758 2,966 791 Zuvaydov Bahtiyor DWSP2AFI[C-05 2,146 1,393 753 Radjabov Z DWSP2AF/IC-18/1 1,536 1,024 512 Mirzoev Qiyomudin DWSP2AF/IC-19 1,525 1,021 503 Valiev Boymahmad DWSP2AF/IC-03 2,456 2,153 303 DWSP2AFW-09, Salohov Rashid DWSP2AF/W-03 2,431 2,153 278 Research Center "Zerkalo" DWSP2AF/CS-20.3 1,841 1,741 101 12. LEGAL CASES There were no any legal claims related to the Project. 16