O bakertilLy Attn. National Recovery Program Bureau T I' 44 Walter Nisbeth Road #57 www.bakertilly.sx Philipsburg Sint Maarten Sint Maarten, June 24, 2022 Dear Sirs, Please find enclosed a copy of the project financia statement of National Recovery Program Bureau for the year 2021 that has been initialled for identification purposes, and our auditor's report thereon dated June 24, 2022. We also send you one copy of the aforementioned auditor's report. We confirm our permission to include this auditor's report in copies of the project financial statement 2021 provided that they are identical to the enclosed copy that has been initialled for identification purposes. Publication of our auditor's report is only allowed together with the corresponding complete set of the project financial statements. If you wish to publish the project financial statements including the audited financial statements on the Internet, it is your responsibility to ensure proper separation of the project financial statements from other information on the website. For example, by presenting the project financial statements as a separate, read-only file, or by issuing a warning if readers switch from the web page containing the project financial statements ('You are now leaving the secured page containing the project financial statements, including the audited financial statements.'). Yours sincerely, Baker Tilly egen Initial for identification purposes: Special Purpose Project Financial Statements for the period ended December 31, 2021 Sint Maarten Emergency Recovery Project Management Project 1/ Grant no. P167339 Project Financial Statements For the period ended December 31, 2021 Sint Maarten Emergency Recovery Project I/Grant no. P167339/ TF A8079/ TF B5199 Sint Maarten Initialed on behalf Baker Tilly for Identification purp s Special Purpose Project Financial Statements for the period ended December 31, 2021 Sint Emergency Recovery Project 1/Grant no. P167339 Table of contents Statement of Management's responsibilities for the preparation and approval of the Special Purpose Project Financial Statements for the period ended 2 December 31, 2021 Independent Auditor's Report 3 Special Purpose Project Financial Statements for the period ended December 31, 2021 Designated Account Reconciliation Statement TF A8079 7 Sources and Uses of Funds TF A8079 8 Statement of Uses of Funds by Components TFA8079 9 Statement of Cumulative Investments (Expenditures)TF A8079 9 Designated Account Reconciliation Statement TF B5199 10 Sources and Uses of Funds TF B5199 11 Statement of Uses of Funds by Components TFB5199 12 Statement of Cumulative Investments (Expenditures)TF B5199 12 Notes to the Special Purpose Project Financial Statements 14 Other information 24 Page 1 Initialed on behalf o Baker Tilly for Identification purp s Special Purpose Project Financial Statements for the period ended December 31, 2021 Sint Emergency Recovery Project 1/Grant no. P167339 Statement of Management's responsibilities for the preparation and approval of the Special Purpose Project Financial Statements for period ended December 31, 2021 Management of the National Recovery Program Bureau, Sint Maarten Emergency Debris Management Project/Grant no. P167339 ("the Project") financed by World Bank ("WB") Credits Grant no. P1673391 TF A8079/ TF B5199 implemented by the National Recovery Program Bureau during the period 01-01-2021 to 31-12-2021 acknowledges and understands that have responsibility: * for the preparation and fair presentation of the special purpose project financial statements in accordance with the financial reporting provisions outlined in the respective legal agreements with the World Bank. ("reporting framework"). * for such internal control as management determines is necessary to enable the preparation of the special purpose project financial statements that are free from material misstatement, whether due to fraud or error; and In preparing the special purpose project financial statements, management is responsible for: selecting suitable accounting principles and applying them consistently. making judgements and estimates that are reasonable and prudent stating whether the reporting framework have been followed, subject to any material departures disclosed and explained in the special purpose financial statements; and preparing the special purpose project financial statements on a going concern basis, unless it is inappropriate to presume that the Project will continue its activity for the foreseeable future. Management is also responsible for: * designing, implementing, and maintaining effective and sound of internal control and for identifying risks in the internal control system. * 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 special purpose project financial statements of the Project comply with the reporting framework. * cbmpliance with laws and regulations applicable in Sint Maarten, 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 special purpose financial statements for the period ended December 31, 2021 were approved and authorized for issue on June 24, 2022 by the Director of the NRPB representing, Sint Maarten Emergency Recovery Project 1 /Grant no. P167339 Mr. Claret Connor (Director NRPB) Page 2 Initialed on behalf a Baker Tilly forI Identification purp 1 bakertitly Goldrfinch Roaj 12 Pointo Blanch( St. Maartoii T: '1727 52 0443 rnil@bakertillysxm corn INDEPENDENT AUDITOR'S REPORT www.bakertilly.sx To: The implementing Entity, the National Recovery Program Bureau (and its predecessor, The Interim Recovery Committee) A. Report on the audit of the project financial statements December 31, 2021 Our opinion We have audited the special purpose project financial statements of the Sint Maarten Emergency Recovery Project 1 ("ERP 1") during the period from January 1, 2021 to December 31, 2021, being part of the resources managed by the Interim Recovery Committee ('IRC') / National Recovery Program Bureau ('NRPB') under the Sint Maarten - Hurricane Irma Reconstruction, Recovery and Resilience Trust Fund. The ERP project is funded through a Grant Agreement with number TF OA 8079 and total facility of USD 55,200,000. hereafter 'the project financial statements'. In our opinion * the accompanying project financial statements as at December 31, 2021 of the resources managed by the National Recovery Program Bureau under the Sint Maarten - Hurricane Irma Reconstruction Recovery and Resilience Trust Fund are prepared and present fairly, in all material respects, the financial position of the project, the funds received and the disbursements made during the period audited, as well as the cumulative investments at the end of the period, in accordance with financial reporting provisions outlined in the respective legal agreements with the World Bank. * the reported expenditures recognized in these project financial statements for the period January 1, 2021 to December 31, 2021 have been realized in all material aspects in accordance with the Grant Agreement and the grand funds have been used only for specific project purposes and with the provisions included in the relevant legislation and regulations, as included in the individual Grant Agreement. * the Statement of the Designated Account and Project Accounts used for managing the funds provided by the Bank presents fairly the availability of funds at the end of the period audited, as well as the transactions made during the same period, in accordance with financial reporting provisions outlined in the project's legal agreements. AC JN iANCY - 1*X a. At NS RY R.~n 1'Air~ . i ' F keti v ill Kinmho ar r -i}a ii, k ob r fill% 4I:I.T~j . .I Qr) [K nl ji, .>1 r I r >' ri~ 'ic:.ri('[['v>r u~~ ~y(~It OIC> :I.'y ;I 0I)I'['; t . 0Iur~ri [:I2'[2( [ rIj. A '' )I tO >V'~ > 'r' ']',t i ~ti,l a~t[8 ,~ frerti ck r(I,I:te I.[[ar .rK0u bakertilty The project financial statements comprise: 1. the Designated Account Reconciliation Statement for the period ended December 31, 2021 2. the Statement of sources and use of fund for the period ended December 31, 2021 3. the Statement of cumulative investments for the period ended December 31, 2021; and 4. the notes comprising a summary of the accounting policies and other explanatory information. Basis for our opinion We conducted our audit in accordance with St. Maarten law and International Standards on Auditing ('ISA'). Our responsibilities under those standards are further described in the 'Our responsibilities for the audit of the project financial statements' section of our report. We are independent of the NRPB and World Bank in accordance with the Dutch Code of Ethics for Professional Accountants (ViO/VGBA), and we have fulfilled our other ethical responsibilities in accordance with this Code. We believe the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. B. Report on the other information included in the project financial statements In addition to the project financial statements and our auditor's report thereon, the reporting contains other information that consists of: * Statement of Management's responsibilities of the NRPB for the preparation and approval of the special purpose project financial statements for the period ended December 31, 2021; * Description of the components (if any); * Key project data. Based on the following procedures performed, we conclude that the other information is consistent with the project financial statements and does not contain material misstatements. We have read the other information. Based on our knowledge and understanding obtained through our audit or otherwise, we have considered whether the other information contains material misstatements. By performing these procedures, we comply with the requirements of ISA 720. The scope of the procedures performed is substantially less than the scope of those performed in our audit of the project financial statements Management is responsible for the preparation of the other information. Emphasis of the basis of accounting and restriction on use and distribution We draw attention to note 2 of the project financial statements, which describes the basis of accounting. The project financial statements are intended for the Implementing Entity, the National Recovery Program Bureau and are prepared to assist the NRPB to comply with the individual Grant Agreements and the Terms of Reference. As a result, the project financial statements may not be suitable for another C bakertilly purpose. Therefore, our auditor's report is intended solely for the World Bank and should not be distributed to or used by other parties than the World Bank. Our opinion is not modified in respect of this matter. C. Description of responsibilities regarding the project financial statements Responsibilities of project management for the project financial statements NRPB management is responsible for the preparation of the project financial statements in accordance with the financial reporting provisions of the individual Grant Agreements and the Terms of Reference (hereafter together 'the special purpose audit framework'). Furthermore, project management is responsible for such internal control as project 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. As part of the preparation of the project financial statements, project management is responsible for assessing the organization's and project's ability to continue as a going concern. Based on the financial reporting framework mentioned, management should prepare the project financial statements using the going concern basis of accounting, unless project management either intends to liquidate the project and/or organization or to cease operations, or has no realistic alternative but to do so Project management should disclose events and circumstances that may cast significant doubt on the organizations ability to continue as a going concern in the project financial statements. Our responsibilities for the audit of the project financial statements Our objective is to plan and perform the audit engagement in a manner that allows us to obtain sufficient and appropriate audit evidence for our opinion. Our audit has been performed with a high, but not absolute, level of assurance, which means we may not detect all material errors and fraud during our audit, 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 these project financial statements. The materiality affects the nature, timing and extent of our audit procedures and the evaluation of the effect of identified misstatements on our opinion. We have exercised professional judgement and have maintained professional skepticism throughout the audit, in accordance with International Standards on Auditing, ethical requirements and independence requirements. Our audit included among others: * identifying and assessing the risks of material misstatement of the project financial statements, whether due to fraud or error, designing and performing audit procedures responsive to those risks, and obtaining 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; * obtaining 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 entity's internal control; Ce bakertilly * evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by project management; * concluding on the appropriateness of project 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 organization'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 an organization to cease to continue as a going concern. * evaluating the overall presentation, structure and content of the project financial statements, including the disclosures. * evaluating whether the project financial statements represent the underlying transactions and events in a manner that achieves fair presentation. * Evaluating whether the expenditures reported are eligible for financing; and * Evaluating whether the grant funds have been used for the project only. We communicate with management regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant findings in internal control and non- compliance with the Grant Agreement (financial aspects only) that we identify during our audit. Sint Maarten, June 24, 2022 Baker Tilly eegen A.J col RA Special Purpose Project Financial Statements for the period ended December 31, 2021 Sint Emergency Recovery Project 1/Grant no. P167339 Special Purpose Financial Statements TF A8079 Designated Account Reconciliation Statement for the period ended on December 31, 2021 (Expressed in United States Dollars) -DES--ATED ACCOUNT RECONCILUATIONSTATEUEL1 LOAdVCREDITiPPFCOICO R N UMBER P167319; TFOA8079 CBCS 3912030020 -F---LISS TOTAL ADVANCED BY WORLD B9< (ORUS FLICIER) 40 827 37 2 LESS ELIGILE EXPEDff URE FOR T-F CURRENT YEAR ENDED DECEMBER 31 202 1 DOCUMENTED BY THE WORLD BWNX 17.015682 2LESS CUMULATIVE ELIGlE EXPENDITURE FOR THE PRIOR PERIODS ENDED DECEMBER 31 2020 DOCUMENTEDBY THE WORLD BN 14 152839 3 PRESENT OUTSTANDINGANIOUNT ADVANCED TOTHEDESIGN IATEDACCOUUNT 1 29 _6816 I- ________,__ ____________1___ __ 4 BALAlJCE OF USO DESIGiATEDACCOUNT PFR ATTACHED 8 II RECOICLATION STATELEIJT AS AT PERLOD END DECEMBER 31 221 BALANCE OF USD PROJECT ACCOUNT PER ATTACHED BNIK RECONCILIATION STATEMEN AS AT PERIOD E.D DECEMBER31 2021 6700 BALAICE OF NAF PROJECT ACCOUNT PER ATTA,HED BANK RECOitLIATOI STATEf.'ENTl AS AT PERIOD END DECEMBER 31 .2021 PLUS_ELIGIBLEEPENlDITURE FOR THECURRENT YEAR DOCUMELED AFTER PERIOD EiD-DECEMBER 31 2021 1,426024 6 PLUS TOTAL AMOUNT V1THDRAWI AND NOT YET CLAf.IED_ REASON RECLASSFICATION N BNKCHARGES FROM CATEGORY 2 TO CATEGORY 1 7 PLUS 9.10UNTS CLAJMED IN PREVIOUS APPLICA ET RE ED.AT DATE OF BANK STATEC ATS' WA WA______ SUBTOTAL OF PREMOUSAPPLICATIONSNOT YET CREIDITED 0 LESS INTEREST EARNED 9 TOTAL ADVANCE ACCOUNTED FOR (3 THROUGH 9) 6104729 10 DIFFERENCE (3 9) 994087 11 EXPLANATION OF ANY DIFFERENCE SHOWN IN LINE 10 RECEIVABLE FROM FRP 11GRANT NO TFC65199 ASOF 12f31 021 The accompanying notes are an integral part of these special purpose project financial statements. Explanation difference shown in line 10: The difference corresponds with the expenditures of TF 0B5199 that were paid by TF 0A8079. On January 26, 2022, the funds were transferred from TF OB5199 to TF 0A8079. Page 7 Initialed on behalf of S Baker Tilly for Identification purpos Special Purpose Project Financial Statements for the period ended December 31, 2021 Sint Emergency Recovery Project 1/Grant no. P167339 Statement of Sources and Uses of Funds TF A8079, for the period ended December 31, 2021 (Expressed in United States Dollars) _ P167339/ TF OA 8079 - Sint Maarten Emergency Recovery Pro ect I Sources and Uses of Funds For the Period Ending: December 31, 2021 Current Year Prior Year Current End End Period US$ Cumulative Cumulative RECEIPTS US$ US$ World Bank Advance 18,934,423 40,827,387 _ 21,892,964 Reimbursement 24,115 24,115 0 Direct Payment 1,998,973 5,682,464 3,683,491 Total Receipts (A) 20,957,511 46,533,966 25,576,455 LESS EXPENDITURES Component 1 Emergency measures 4,938,503 8,917,007 3,978,504 Component 2: Water and Electricity Infrastructure - 11425,981 1,425,981 Component 3: Housing and Public Buildings Repair 6,742,890 11,441,303 4,698,412 Component 4 institutional Support for Reconstruction 5,731 187 17,116,882 11,385,696 Total Expenditures (B) 17,412,580 38,901,173 21,488,593 RECEIPTS LESS EXPENDITURES Net Change in Cash (A - B) 3,544,931 7,632,793 4,087,862 Foreign Exchange Adjustment CASH BALANCES Opening Cash Balances______ _____ Designated Account Project Account 4,086,670 NAF PAYROLL ACCT. 1,192 Total Opening Balance 4,087,862 Closing Cash Balances Designated Account Project Account 6,678,705 6,678,705 4,086,670 NAF - PAYROLL ACCT - - 1,192 Total Closing Balance _6,678,705 6,678,705 4,087,862 The accompanying notes are an integral part of these special purpose project financial statements. Page 8 Initialed on behalf Baker Tilly for Identification purp s Special Purpose Project Financial Statements for the period ended December 31, 2021 Sint Emergency Recovery Project 1/Grant no. P167339 Statement of Uses of Funds TF A8079 by Components for the period ended December 31, 2021 (Expressed in United States Dollars) P167339 - Sint Maarten Emergency Recovery Project I Use of Funds by Components For the Period Ending: December , 2021 Current Year Previous Year Cumulative US$ Cumulative US$ Components Current Year US$ 2021 2020 Component 1: Emergency measures 4,938,503 8,917,007 3,978,504 Component 2: Water and Electricity Infrastructure - 1,425,981 1,425,981 Component 3: Housing and Public Buildings Repair 6,742,890 11,441,303 4,698,412 Component 4: Institutional Support for Reconstruction 5,731,187 17,116,882 11,385,696 Total 17,412,580 38901,173 21,488,593 The accompanying notes are an integral part of these special purpose project financial statements. Statement of Cumulative Investments (Expenditures) TF A8079 for the period ended December 31, 2021 (Expressed in United States Dollars) P167339 - Sint Maarten Emergency Recovery Project I Use of Funds by Disbursement Categories For the Period Ending: December, 2021 Current Year Previous Year Cumulative US$ Cumulative US$ Categories Current Year US$ 2021 2020 1. PREMIUM 0 1,363,711 1,363,711 2. GP, NCS, CS, TR, OP, under sub-Parts 1 (a)(iv), I (b), 1 (c), 2 (c), 3 (b),(ii) and 4(a)-(b) and (d), PART FEE, PREMIUM under sub-Part 4 (c) 9,222,715 20,790,038 11,567,323 3. Works under sub-Parts 1 (a) (i)-(iii), 2 (a)-(b), 3 (a), 3 (b) (i), 3 (c) and Cash Compensation land Assistance under Part 3 8,189,865 16,747,424 8,557,559 Total 17,412,580 38,901,173 21,488,593 The accompanying notes are an integral part of these special purpose project financial statements. Page 9 Initialed on behalf o Baker Tilly for . Identification purps Special Purpose Project Financial Statements for the period ended December 31, 2021 Sint Emergency Recovery Project 1/Grant no. P167339 TF B5199 Designated Account Reconciliation Statement TF B5199 for the period ended on December 31, 2021 (Expressed in United States Dollars) DESIGNATED ACCOUNT RECONCILIATION STATEMENT LOANICREDIT/PPFICOF[NANCIFR NUMBER P167339 TFOB5199 CBCS 3913030320 1 TOTAL ADVANCED BY WORLD BANK (OR COFINANCIER) 2,799300 2 LESS: ELIGIBLE EXPENDIfURE FOR THE CURRENT YEAR ENDED DECEMBER 31 2021 DOCUMENTED BY THE WORLD BANK 2 LESS: CUMULATIVE ELIGIBLE EXPENDITURE FOR THE PRIOR PERIODS ENDED DECEMBER 31 2020 DOCUMENTED BYTHE WORLD BANK 3 PRESENT OUTSTANDING AMOUNT ADVANCED TO THE DESIGNATED ACCOUNT(1 2) 2 .799300 4 BALANCE OF USO DESIGNATED ACCOUNT PER ATTACHED BANK RECONCILIATION STATEMENT AS AT PERIOD END DECEMBER31 2021 BALANCE OF USD PROJECTACCOUNT PER ATTACHED BANK RECONCILIATION STATEMENTAS AT PERIOD END DECEMBER 31 2021 2.458,373 BALANCE OF NAF PROJECT ACCOUNT PER ATTACHED BANK RECONCILIATION STATEMENT AS AT PERIOD END DECEMBER 31. 2021 1,170 5 PLUS: ELIGIBLE EXPENDITURE FOR THE CURRENT YEAR DOCUMENTED AFTER PERIOD END DECEMBER 31 2021 1 293 844 6 PLUS: TOTAL AMOUNT WITHDRAWN AND NOT YET CLAIMED REASON: RECLASSIFICATION BANKCHARGES FROM CATEGORY2 TO CATEGORY 1 7 PLUS: AMOUNTS CLAIMED IN PREVIOUS APPLICATIONS NOT YET CREDITED AT DATE OF BANK STATEMENTS APPLICATION NO. WA WA SUBTOTAL OF PREVIOUS APPLICATIONS NOT YET CREDITED 8 LESS' INTEREST EARNED 9 TOTAL ADVANCE ACCOUNTED FOR (3 THROUGH 9) 3,753,387 10 DIFFERENCE (3-9) (954,087) 11 EXPLANATION OF ANY DIFFERENCE SHOWN IN LINE 10: PAYABLE TO ERP 1/GRANT NO. TF0A8079 AS OF 12/31/2021 The accompanying notes are an integral part of these special purpose project financial statements. Explanation difference shown in line 10: The difference corresponds with the expenditures of TF OB5199 that were paid by TF 0A8079. On January 26, 2022, the funds were transferred from TF 0B5199 to TF OA 8079. Page 10 Initialed on behalf a Baker Tilly for Identification purp s Special Purpose Project Financial Statements for the period ended December 31, 2021 Sint Emergency Recovery Project 1/Grant no. P167339 Statement of Sources and Uses of Funds TF B5199 for the period ended December 31, 2021 (Expressed in United States Dollars) P167339/TFOB5199- Sint Maarten Emergency Recovery Project I Sources and Uses of Funds For the Period Ending_ De ember 31, 2021 Current Period US$ Current Year End RECEIPTS Cumulative US$ World Bank Advance 2,799,300 2799,300 Reimbursement _ 0 Direct Payment _______0_____ Total Receipts (A) 2799,300 2,799,300 LESS EXPENDITURES Component 1 Emergency measures 221,658 221,658 Component 2: Water and Electricity Infrastructure - 0 Component 3: Housing and Public Buddings Repair - 0 Component 4: insttutional Support for Reconstruction 1,072,186 1,072,186 Total Expenditures (B) 1,293,844 1,293,844 RECEIPTS LESS EXPENDITURES Net Change in Cash (A - B) 1,505,456 1,505,456 Foreign Exchange Adjustment CASH BALANCES Opening Cash Balances Designated Account Project Account NAF - PAYROLL ACCT. Total Opening Balance Closing Cash Balances Designated Account - Project Account 2,458,373 2,458,373 NAF - PAYROLL ACCT. 1,170 1,170 Total Closing Balance 2,459,543 2,459,543 The accompanying notes are an integral part of these special purpose project financial statements. Page 11 Initialed on behalf a Baker Tilly for Identification purp Special Purpose Project Financial Statements for the period ended December 31, 2021 Sint Emergency Recovery Project 1/Grant no. P167339 Statement of Uses of Funds by Components TF B5199 for the period ended December 31, 2021 (Expressed in United States Dollars) P167339/ TFOB5199 - Sint Maarten Emergency Recovery Project I Use of Funds by Components For the Period Ending: December , 2021 Current Year End Components Current Year US$ Cumulative US$ Component 1: Emergency measures 221,658 221,658 Component 2: Water and Electricity Infrastructure - - Component 3: Housing and Public Buildings Repair - - Component 4: Institutional Support for Reconstruction 1,072,186 1,072,186 Total 1,293,844 1,293,844 The accompanying notes are an integral part of these special purpose project financial statements. Statement of Cumulative Investments (Expenditures) TF B5199 for the period ended December 31, 2021 (Expressed in United States Dollars) P167339/TFOB5199 - Sint Maarten Emergency Recovery Project I Use of Funds by Disbursement Categories For the Period Ending: December, 2021 Current Year Cumulative US$ Categories Current Year US$ 2021 1. GP, NCS, CS, TR, OP, Participation Fees and Annual Premiums under Parts 1, 3, 4(b), 4(c) and 4(d) of the Project (excluding Cash Compensation) 1,293,844 1,293,844 Total 1,293,844 1,293,844 The accompanying notes are an integral part of these specal purpose project financial statements. Page 12 Initialed on behalf a Baker Tilly for Identification purpsI Special Purpose Project Financial Statements for the period ended December 31, 2021 Sint Emergency Recovery Project 1/Grant no. P167339 Notes to the Special Purpose Project Financial Statements for the period ended December 31, 2021 (Expressed in United States Dollars, unless otherwise stated) 1.1 Project Background Following the devastation caused by hurricanes Irma, the Government of Sint Maarten prepared a consolidated National Recovery and Resilience Plan (NRRP) that prioritizes immediate, short-, medium- and long-term needs for the recovery, reconstruction, and resilience of Sint Maarten. This Plan includes estimates of the financial requirements, costs and investments that are necessary to build Sint Maarten back better. Since January 2018, the World Bank has been assisting the Government of Sint Maarten in the establishment and implementation of a recovery and reconstruction program to implement the NRRP. A significant component of this program is financed through a Trust Fund financed by the Netherlands, managed by the World Bank, and implemented by Sint Maarten. In parallel to the establishment of the Trust Fund and the execution of the NRRP, the Government of Sint Maarten developed an institutional structure for the implementation of Trust Fund financed projects. This structure is materialized in the National Recovery Program Bureau (NRPB) and serves as the Project Implementation Unit (PIU) for Trust Fund projects for which the Government of Sint Maarten enters into a Grant Agreement Sint Maarten Emergency Recovery Project 1 TF A8079 (ERP 1). As such, the NRPB represents the Government of Sint Maarten vis-a-vis the World Bank. The Emergency Recovery Project ($55.2 million) TF A8079 approved on July 10, 2018, signed on July 11, 2018, and became effective on July 18, 2018, contributes to Sint Maarten's immediate emergency recovery needs. The project finances the repair of critical infrastructure (including shelters), emergency equipment and training, restoration of the electricity and water system, repairs of roofs and social housing, and the setting up of the NRPB. The Project has been restructured and the Grant Agreement was amended in consequence on April 19, 2019. Rationale for Restructuring The project was processed under emergency procedures in accordance with paragraph 12 of Section III of the Bank Policy on Investment Project Financing (IPF). The decision to defer the preparation of the safeguards instruments was taken at the Decision Meeting, held on May 7, 2018. As such, many details of project activities were not clearly defined during project preparation. While the implementation unfolds, new issues and demands for support emerge. These include the needs for resettlement and support on the associated costs, as well as extra demands for retroactive financing. In addition, as certain legal conditions have been met, the restructuring also proposes to adjust the withdrawal categories and update the legal conditions and covenants. Based on discussions with the Bank project team in this regard, the client requested on January 29, 2019 an early project restructuring to process the following changes and to amend the GA accordingly. Key changes to the project design inlude (a) modifying the scope of component 3 and 4, by including resettlement compensation under component 3, and a cross component management activity under component 4; (b) extending retroactive financing f goods andsrvices; (c) midifying withdrawal categories and removing soe of the withdrawal conditions; and (d) updating legal covenants where relevant. Change of Recipient TF A8079 On July 24, 2021, at the request of the Government of Sint Maarten it was established that the NRPB under the laws of Sint Maarten will act as the recipient of the Grant Agreement ERP 1 and the Government of Sint Maarten will continue to act as the guarantor for the ERP I Project. The Additional Financing for the Emergency Recovery Project ($45.0 million) TF 65199 approved on April 28, 2021, signed on July 16, 2021, and became effective on September 20, 2021, contributes to Sint Maarten's Page 13 Initialed on behalf of Baker Tilly for < Identification purp Special Purpose Project Financial Statements for the period ended December 31, 2021 Sint Emergency Recovery Project 1/Grant no. P167339 immediate emergency recovery needs. The project finances the repair of critical infrastructure (including shelters), emergency equipment and training, repairs of roofs and social housing, and the setting up of the N RP B The National Recovery Program Bureau (NRPB) entered directly into the Grant Agreement for the Sint Maarten Emergency Recovery Project 1 TFOB5199 (ERP 1) with the World Bank. This on request of the Government of Sint Maarten to the World Bank that Grant Agreements are directly signed between the National Recovery Program Bureau (NRPB) and the World Bank Page 14 Initialed on behalf a Baker Tilly for Identification purp' s Special Purpose Project Financial Statements for the period ended December 31, 2021 Sint Emergency Recovery Project 1/Grant no. P167339 1.2 Grant Agreement TF A8079 - Sint Maarten ("Recipient"), represented by its Minister of General Affairs, and the International Bank for Reconstruction and Development ('World Bank") acting as the administrator of the Sint Maarten Hurricane Irma Reconstruction Recovery and Resilience Trust Fund signed the agreement on December 21, 2018. The Recipient declares its commitment to the objectives of the project described in the Grant Agreement. To this end, the Recipient shall carry out the Project in accordance with the provisions of Article 11 in the Grant Agreement of the Standard Conditions. Without limitation upon the provisions of Section 2.01 of the Grant Agreement, and except as the Recipient and the World Bank shall otherwise agree, the Recipient shall ensure that the Project is carried out in accordance with the provisions of Schedule 2 of the Grant Agreement. The World Bank agrees to extend to the Recipient, on the terms and conditions set forth or referred to in this Agreement, a grant in an amount not to exceed fifty-five million two hundred thousand United States Dollars ($55,200,000) ("Grant") to assist in financing the Project, Additional Financing- TF B5199: Sint Maarten ("Recipient"), represented by the National Recovery Program Bureau (NRPB), and the International Bank for Reconstruction and Development ('World Bank") acting as the administrator of the Sint Maarten Hurricane Irma Reconstruction Recovery and Resilience Trust Fund signed the agreement on July 16. 2021. The Recipient declares its commitment to the objectives of the project described in the Grant Agreement. To this end, the Recipient shall carry out the Project in accordance with the provisions of Article 11 in the Grant Agreement of the Standard Conditions. Without limitation upon the provisions of Section 2.01 of the Grant Agreement, and except as the Recipient and the World Bank shall otherwise agree, the Recipient shall ensure that the Project is carried out in accordance with the provisions of Schedule 2 of the Grant Agreement. The World Bank agrees to extend to the Recipient, on the terms and conditions set forth or referred to in this Agreement, a grant in an amount not to exceed fifty-five million two hundred thousand United States Dollars ($45,000,000) ("Grant") to assist in financing the Project. 1.3 Project Description The object of the Project is to is to contribute to Sint Maarten's immediate emergency recovery needs and strengthen institutional capacity to manage resilient recovery and reconstruction. The Project consists of four main components, as described below: Part 1. Emergency measures for the recovery of disaster first responders and preparedness facilities.(US$ 16.45M) a) Critical disaster preparedness and response infrastructure repairs and improvements. Provision of support to improve the national emergency response and disaster preparedness system, including: (i) repairing and expansion of the fire and ambulance building; (ii) repairing of selected national police force office buildings infrastructure; (iii) repairing and provision of equipment to designated shelters; and (iv) reestablishment of the operational capacity of national meteorological services to support disaster risk management, through the provision of support in designing a resilient operations building and replacing damaged equipment. Page 15 Initialed on behalf a Baker Tilly for Identification purP(VsI Special Purpose Project Financial Statements for the period ended December 31, 2021 Sint Emergency Recovery Project 1/Grant no. P167339 b) First responder' emergency equipment. Provision of: (i) vehicles (including fire trucks, ambulances, support vehicles, and evacuation bus) and related equipment, and repairs to damaged equipment, that are necessary to support emergency services (including fire and ambulance services) and improve response and operational readiness; (ii) communication equipment, including satellite phones, to improve the national emergency communications network (including public warning systems); (iii) priority vehicles to replace vehicles destroyed by hurricane or where critical need is identified, which may include such vehicles to: (A) the Ministry of Tourism, Economic Affairs, Traffic and Telecommunication ("TEATT"); (B) Ministry of Finance; (C) Ministry of Public Health, Social Development and Labor ("VSA"); (D) Ministry of Public Housing, Spatial Planning, Environment and Infrastructure ("VROMI"); (E) Ministry of Education, Culture Youth and Sport ("MECYS") and (F) the MoGA; and (iv) a Lidar terrain and bathymetric survey Part 2: Restore and Increase Resilience of Water and Electricity Services US$ 11.6M) a) Restoration of Electricity Services. Restoration of electricity services and improvement of said services' performance in future disaster events through, inter alia expansion of the trenching program to move remaining utility cables and water supply pipes underground. b) Increasing Resilience of the Water System. Increasing of the water storage capacity to two (2) days, and strengthening of the Sint Maarten's water system's resilience to hurricane and other climate shocks through, inter alia repairing, upgrading, and increasing the water storage capacity. c) Technical Assistance to GEBE. Provision of technical assistance to improve GEBE's performance and accountability to users through, inter alia: (i) provision of institutional support; (iii) provision of technical assistance on financial, operational and commercial management; (iv) updating of GEBE's business plan; and (v) carrying out of feasibility studies and technical designs of key identified investments to be supported. Part 3: Housing and Public Buildings Repair and Reconstruction (US$ 39. 15M) a) Roof Repair Program. Provision of assistance to the Recipient, including Cash Compensation and Assistance, in support of making repairs to, and reconstruction of, damaged houses of the most vulnerable households selected based on administrative, socio-economic, and economic criteria and procedures acceptable to the World Bank, and with improved technical standards. b) Emergency Support to the Sint Maarten Iosing Development IFouindation ("SMiDF'). Provision of'assistance to SMI IDF, including Cash Compensation and Assistance, in support of: (i) severely damaged housing stock used by low-income families; and Page 16 Initialed on behalf of Baker Tilly for Identification purp Special Purpose Project Financial Statements for the period ended December 31, 2021 Sint Emergency Recovery Project 1/Grant no. P167339 (ii) providing technical assistance to support the design of a proposed housing complex. c) School Building Repairs. Provision of support to the Recipient to: (i) Repair damaged Public Buildings including schools, sports and communitycenters, national monuments, and other public buildings: (ii) Support the cost of temporary relocation and education continuity during construction. Part 4: Institutional Support for Reconstruction (US$ 33.0M) a) Support to the Interim Recovery Committee ("IRC"). Provision of technical capacity building and Operating Costs to the IRC for the management and implementation of projects financed by the Sint Maarten: Hurricane Irma Reconstruction, Recovery and Resilience Trust Fund, during the period of establishment of the NRPB, and for a transition period following the NRPB's establishment b) Support to the Recipient. Provision of support to the Recipient for the management and implementation of projects financed by the Trust Fund, including the provision of staffing, and Operating Costs acceptable to the World Bank, all necessary for timely and efficient implementation of the projects underthe Trust Fund, and for establishing a sustainable, long-term institutional framework c) Emergency Financial Protection Measures Provision of financing for the Government's costs to participate in the CCRIF SPC ("Participation Fee") and other regional and international organizations focusing on disaster risk management and resilience building, as well as the Government's costs of Annual Premiums for catastrophe risk insurance with CCRIF. Part 4 of the Project, as set forth in Schedule 1 to the Grant Agreement, is amended to include thefollowing additional sub-part (d), which shall read as follows: Project Management Provision of support to the Recipient in Project management, implementation, monitoring and evaluation, including technical assistance for technical assessments and studies, engineering design, and fiduciary and environmental and social safeguards support." Page 17 Initialed on behalf a Baker Tilly for Identification purp Special Purpose Project Financial Statements for the period ended December 31, 2021 Sint Emergency Recovery Project 1/Grant no. P167339 1.2 Categories of Eligible expenditures TF A8079: Categories of Eligible Expenditures Category Amount of the Grant Allocated Percentage of Expenditures tobe (expressed in USD) Financed (inclusive of Taxes) (1) Goods, non-consulting services, 1,363,711 100% consulting services, Training, and Operating Costsunder sub-Parts 1 (a) (iv), 1 (b), 1 (c), 2 (c), 3 (b) (ii), and4 (a)-(b) of the Project, and the Participation Fee and Annual Premiums under sub-Part 4 (c)of the Project. (2) Goods, non-consulting services, 18,086,289 100% consulting services, Training, and Operating Costsunder sub-Parts 1 (a) (iv), 1 (b), 1 (c), 2 (c), 3 (b) (ii), and 4 (a)-(b) and (d) of the Project, and the Participation Fee and Annual Premiums under sub-Part 4(c) of the Project (3) Works under 35,750,000 100% sub-Parts 1 (a) (i)-(iii), 2 (a)- (b), 3 (a), 3 (b) (i), and 3 (c) ofthe Project, and Cash Compensation and Assistance under Part 3 of the Project TOTAL AMOUNT 55,200,000 Page 18 Initialed on behalf of Baker Tilly for Identification purp? Special Purpose Project Financial Statements for the period ended December 31, 2021 Sint Emergency Recovery Project 1/Grant no. P167339 TF B5199: Categories of Eligible Expenditures Category Amount of the Grant Percentage of Allocated (expressedin Expenditures tobe USD) Financed (Inclusive of Taxes) (1) Goods, Works, non-consuting 45,000,000 100% services,consulting services, Traning, OperatingCosts, Participation Fees, and Annual Premiums under Parts 1, 3, 4(b), 4(c)and 4(d) of the Project (excluding Cash Compensation). TOTAL AMOUNT 45,000,000 1.3 Cumulative figures The figures published in this report represent the fifth published reporting of the Sint Maarten Emergency Debris Management Project. The published figures do represent cumulative figures for the project. Page 19 Initialed on behalf Baker Tilly for Identification purp se Special Purpose Project Financial Statements for the period ended December 31, 2021 Sint Emergency Recovery Project 1/Grant no. P167339 1.4 Activities The activities of the Projects consist of the following classified components of financing of World Bank Grant. TF A8079 Component USD Source (Million) Component I - Emergency measures for the recovery of disaster first 14.75 Trust Fund responders and preparedness facilities Component 2 - Restore and Increase Resilience in Water and Electricity 11. 6 Trust Fund InfrastruCture Component 3 - Housing and Public BUiildings Repair and Reconstruction 19.85 Trust Fund Component 4 Institutional Support for Reconstruction 9.0 Trust Lurd Project total 55.2 Trust Fund TF 115199 TF US) Source (Million) Component I - Emergency measures for the recovery of disaster first 1.7 Trust Fund responders and preparedness facilities Component 2 - Restore and Increase Resilience in Water and Electricity 0.0 TrUst Fund InfrastructUrc Component 3 Housing and Public Buildings Repair and Reconstruction 19.3 Trust Fund Component 4 Institutional Support for Reconstruction 24.0 TrUst Fund Project total 45.0 'trust Fund 1.5 Proposed Development Objective(s) The Project Developmcnt Objective (PD0) of the ERP-1 is to contribute to Sint Maarten's immediate emergency recovery needs and to strengthen institutional capacity to manage resilient recovery and reconstruction. The Project consists of four components: a) Component 1: Emergency measures for the recovery of disaster first responders and preparedness facilities. b) Component 2: Restore and increase resilience of Water and Electricity services c) Component 3: Housing and public buildings repair and reconstruction; and d) Component 4: Institutional support for reconstruction Page 20 Initialed on behalf Baker Tilly for Identification pur s Special Purpose Project Financial Statements for the period ended December 31, 2021 Sint Emergency Recovery Project 1/Grant no. P167339 2. Presentation of the Special Purpose Project Financial Statements Basis of preparation These special purpose project financial statements have been prepared in accordance with the financial reporting provisions outlined in the respective legal agreements with the World Bank ("reporting framework") using the cash basis of accounting. Statement of compliance These special purpose project financial statements consist of: Statement of Designated Account Reconciliation Statement Statement of Sources and Uses of Funds Statement of Uses of Funds by Component Statement of Cumulative Investments (Expenditures) Significant accounting policies and other explanatory information The reporting currency of these special purpose project financial statements is US Dollars ("USD"). Basis of measurement These special purpose project financial statements have been prepared on the historical cost basis. Functional and presentation currency The functional currency is United States Dollars (USD). The amounts expended in Netherlands Antillean Guilder ("NAF") are converted to United States Dollars ("USD") at exchange rate of 1.8 NAF for 1 USD. The reporting currency of the project is USD. Rounding-off The figures have been rounded off to the nearest whole digit. Going concern The Special Purpose Project Financial Statements have been prepared on a going concern basis, which assumes that the Project will continue in the foreseeable future, 3. Accounting Policies Funds received Funds are recognized on cash basis once received. Expenses Expenses are recorded on cash basis once paid. Sources of funds The funds were provided by the World Bank to the Project by replenishment of special account or through reimbursements to the end supplier of goods and/or services. Restricted use of funds and other assets The Credit, Loan and Grant agreement require that the funds available in the Designated Account be restricted to the Project use only. Any project funds available at the end of the Project should be returned to the World Bank Page 21 initialed on ehal of Baker'1 iy for Idenltification P1r Special Purpose Project Financial Statements for the period ended December 31, 2021 Sint Emergency Recovery Project 1/Grant no. P167339 Cash Cash include cash on hand and due from banks, which can be converted to the corresponding amount of cash in the short term. Cash include cash on hand and due from banks, which can be converted to the corresponding amount of cash in the short term. TF A8079 Account# Bank Currency Balance USD Equivalent ******20 CBCS US$ 0,00 0.00 ****1906 WIB US$ 6,678,705 6,678,705 TF B5199 Account # Bank Currency Balance USD Equivalent '**120 CBCS US$ 0.00 0.00 ***6110 WIB US$ 2,458,373 2,478,373 ****7507 WIB NAF 2,083 1,170 Resettlement Expenditures P167339/ TF A8079 - Sint Maarten Emergency Recovery Project I Resettlement Expenditures For the Period Ending December , 2021 Previous Current Year Year Cumulative Cumulative Component3 Current Year US$ US$ 2021 US$ 2020 Sub Component 3.1 280,400 617,641 337,241 Sub Component 3.2 0 0 0 Total Resettlement Exenditures 280,400 617,641 337,241 Retroactive Financing According to the TF A8079 GA Project funds can be used for reimbursement of Eligible Expenditures. (i) withdrawals for up to an aggregate amount not to exceed $5,000,000 may be made for payments made prior to April 19, 2019 but on or after December 13, 2017, for Eligible Expenditures under Category (2), except those related to the Participation Fee and Annual Premiums; and (ii) withdrawals up to an aggregate amount not to exceed $5,000,000 may be made for payments made prior to April 19, 2019 but on or after December 13, 2017, for Eligible Expenditures under Category (3), except those related to Cash Compensation andAssistance." Under the TF A8079, the amount of retroactive financing that was reimbursed to NRPB/GOVSXM was US$ 1,675,325,41, respectively for category 2 US$ 12,977.40 and category 3 US$ 1,662,348 01 for expenditures incurred between December 13, 2017 and July 10, 2018. Page 22 Initialed on behalf a Baker Tilly for Identification pur Special Purpose Project Financial Statements for the period ended December 31, 2021 Sint Emergency Recovery Project 1/Grant no. P167339 According to the TF B5199, no withdrawal shall be made for payments made prior July 16, 2021, except that withdrawals up to an aggregate amount not to exceed nine (9) million United States Dollars may be made for payments between July 16, 2020 and July 15 2021. Under the TF B 5199 the amount of retroactive financing reimbursed to NRPB/ GOVSXM was zero. Taxes The Project related taxes and mandatory payments are calculated and paid in accordance with tax regulations applicable in Sint Maarten. NRPB has been granted exemption of the 5% Turnover Tax on sales of goods and services levied by the Government for the Sint Maarten Emergency Recovery Project 1. Subsequent Events Management has evaluated the subsequent events between January 1, 2022 and June 24, 2022 the date when the Special Purpose Project Financial Statements were available to be issued and there are no subsequent events that would require adjustment or disclosure. Page 23 Initialed on behalf a Baker Tilly fo Identification pur s Special Purpose Project Financial Statements for the period ended December 31, 2021 Sint Emergency Recovery Project 1/Grant no. P167339 Other Information for the period ended December 31, 2021 (Expressed in United States Dollars, unless otherwise stated) Tracking implementation status and Annual Workplan (AWP): Since the approval of the project, the NRPB and WB teams have been holding teleconferences on a regular basis to monitor project implementation. Frequent communication and monitoring of start-up activities has been instrumental in developing the projects outlined. The Project Management Team ("PMT") together with the Procurement Team monitors and regular updates are held to ensure continuance and guidance on all levels together Table 1: Key Project Data TF A8079 Financing Approval Effectiveness Closing Date Date Date Sint Maarten Hurricane Irma Reconstruction, Recovery and Resilience Trust Fund; USD 55.2 July 11, 2018 July 18, 2018 June 1, 2023 million Disbursed to DA to Date: USD 40,827,387 Reimbursements (Project to date): USD 21,115 Direct Payments (Project to date): USD 5,682,464 Projected Disbursements Direct payments: USD 5,682,464 Projected Disbursement Withdrawals to Designated Account (by the end of December 2022): USD 55,200,000 Project Development Objective (PDO): to contribute to Sint Maarten's immediate emergency recovery needs and to strengthen institutional capacity to manage resilient recovery and reconstruction. Type Category Summary Curreny Amounts in USD Withdrawal DA DA-A USD 40,827,387 Total ExpenditffleS ] DI 1,363,71 1 Total Expenditures 2 U 1) 20,790,038 Iotal Expenditures 3 USD 16,7474 Page 24 Initialed on behalf o Baker Tilly for Identification purp s Special Purpose Project Financial Statements for the period ended December 31, 2021 Sint Emergency Recovery Project 1/Grant no. P167339 Table 2: Key Project Data TF B5199 Financing Approval Effectiveness Closing Date Date Date Sint Maarten Hurricane Irma Reconstruction, September Recovery and Resilience Trust Fund; USD 45 April 28,2021 20,2021 June 1, 2023 million Disbursed to DA to Date: USD 2,799,300 Projected Disbursement Withdrawals to Designated Account (by the end of December 2022): USD 37,000,000 Project Development Objective (PDO): to contribute to Sint Maarten's immediate emergency recovery needs and to strengthen institutional capacity to manage resilient recovery and reconstruction. Type Category Summary Currency Amounts in USD Withdrawal DA DA-A USID 2,799,300 Total ExpenditurCs I USD 1,293,844 Page 25 Initialed on behalf of Baker Tilly for identification purp