REPUBLIC OF TURKEY PRIME MINISTRY Undersecretariat of Treasury INDEPENDENT AUDITOR'S REPORT On PARTNERSHIP FOR MARKET READINESS Implemented by MINISTRY OF ENVIRONMENT AND URBANISATION Department Of Climate Changes And Financed Under World Bank Grant Agreement numbered TF-015591 (PMR-2) As of December 3 1, 2016 and For The Year Then Ended Report Number 82/12 - 32/14 Prepared by: Nuri ATES Selguk KIRBAS Senior Treasury Controller Junior Treasury Controller 16 June 2017 iii L-..... Li i6L i àii ii L i i L iLo i TABLE OF CONTENTS 1. EXECUTIVE SUMMARY 2. INDEPENDENT AUDITOR'S REPORT & FINANCIAL STATEMENTS OF THE PROJECT 2.1. Independent Auditor's Report 2.2. Statement of Sources and Uses of Funds 2.3. Statement of Cumulative Investments 2.4. Statement of Requests for Reimbursement (SOE Statement) 2.5. Statement of Special Account 2.6. Notes to The Project Financial Statements 1. Objectives and Nature of the Project 2. Main Accounting Policies 3. Financial Declarations 4. Grant Agreement 5. Cash Availability At December 31 December, 2016 、蘊螂轟醞～么祉益必蘊～必亂贏糁蘊鎰必溢么氤→〔讓編碧縊必認巡必錳公江必溢益兀口汰蕊誌必谿縊贏j以～j→益斗、“訕 EXECUTIVE SUMMARY i г г � г i i_ REPUBLIC OF TURKEY PRIME MINISTRY Undersecretariat of Treasury EXECUTIVE SUMMARY A. Project Summary The Grant Agreement for Turkey - Partnership For Market Readiness (PMR) (Implementation Phase) was put into effect being signed by The World Bank on December 17, 2013 and countersigned by the Undersecretariat of Treasury on behalf of Republic Of Turkey on December 30, 2013. The Implementation Phase of Partnership For Market Readiness covers the period spanning from the effective date of this Grant Agreement through its closing date which was determined to be June 30, 2017 originally and has been extended to June 30, 2018. The objective of the Grant is to assist the Republic of Turkey to implement its greenhouse gas Monitoring, Reporting, and Verification (MRV) pilot in the electricity sector, based on Turkey's MRV regulation, and to provide analytical information for the establishment of a carbon market in Turkey. The Grant Activities for the Implementation Phase consist of the following Parts: Part 1: Piloting the use of the MRV procedures within the electricity sector, and with other willing companies and stakeholders (such as accreditation bodies and verifiers) in other sectors including preparation of monitoring plans for the electricity sector, collection of data by the volunteering installations, and reporting and verification of such data, to identify potential problems in a timely fashion, Part 2: Conducting analytical studies to inform decision making on the use of market based instrument(s) (MBI), including, inter alia,(i) a study on use of an emission trading scheme for the electricity sector; (ii) a study on selection of MBIs and modeling for sectors covered and not covered by the MRV regulation; (iii) a study on Greenhouse Gas market modeling for selected sectors covered and not covered by the MRV regulation; and (iv) a synthesis report of the above mentioned studies for consideration by the CBCC and policy makers. Part 3: Carrying out stakeholder training, consultation/engagement and public awareness activities, including,, (i) conferences and workshops to support the activities under Parts I and 2; (ii) consultation meetings with stakeholders; and (iii) public awareness activities (media, high level public/private meetings, etc.). Part 4- Establishment of the project management unit to coordinate and support implementation of MRV and MBI activities. The International Bank For Reconstruction and Development, acting as administrator of grant funds provided by the contributors, has extended a grant in an amount of USD 3.000.000 to Republic of Turkey ("Recipient") for the Implementation Phase of the Partnership for Market Readiness. Out of the aforementioned amount provided by the Grant Agreement, USD 1.067.548,7S was spent during our audit period, namely the year 2016. The realized cumulative spending under the scope of the project as of December 31, 2016 occurred to be USD 1.440.211,98. �г г � I` B. Objectives of Audit The objectives of our audit are; a) To give an opinion on whether the financial statements, prepared as of December 31, 2016 and for the period then ended, present fairly, in all material respects, the financial position of the project in accordance with the cash receipts and disbursements basis of accounting, b) To determine, as of December 31, 2016, whether the Ministry of Environment And Urbanisation, Department of Climate Changes has complied, in all material respects, with the rules and procedures of the Grant Agreement numbered TF-015S91, c) To examine whether adequate supporting documentation has been maintained to support claims to the World Bank for reimbursements of expenditures incurred with respect to SOEs and evaluate eligibility of these expenditures for financing under the Grant Agreement. C. Scope of Audit We have performed an audit of financial statements of Partnership for Market Readiness as of December 31, 2016 and for the period then ended in accordance with the cash receipts and disbursements basis of accounting. We have also performed a compliance audit on whether project activities are in line with the Grant Agreement. Our audit was conducted in accordance with International Standards on Auditing published by International Federation of Accountants (IFAC) applicable to the audit of financial statements and compliance auditing. There was no limitation in our scope for the Project's audit. L D. Audit Results For the financial statements of project; our audit resulted with an unqualified opinion. As of December 31, 2016, Ministry of Environment and Urbanisation, Department of Climate Changes has complied, in all material respects, with the rules and procedures of the Grant Agreement numbered TF-01S591. In addition, with respect to SOEs, adequate supporting documentation has been maintained to support claims to the World Bank for reimbursements of expenditures incurred; and which expenditures are eligible for financing under the Grant Agreement numbered TF-015591. E. Management Recommendations A management letter, dated June 16, 2017, to the attention of the Ministry of Environment and Urbanization, Department of Climate Changes was issued separately г г г г г I I � ` from this report. The objective of this Management Letter is to enable the auditors to communicate appropriately to those charged with governance and management deficiencies in internal control that the auditors have identified during the audit and that, in the auditors' professional judgment, are of sufficient importance to merit their respective attentions. For this purpose, our recommendations are attached to the Letter. г г i INDEPENDENT AUDITOR"S REPORT & FINANCIAL STATEMENTS OF THE PROJECT г г i г i г г. � REPUBLIC OF TURKEY PRIME MINISTRY Undersecretariat of Treasury INDEPENDENT AUDITOR'S REPORT TO MINISTRY OF ENVIRONMENT AND URBANIZATION, Department Of Climate Changes, ANKARA Opinion We have audited the Statement of Sources and Uses of Funds, Statement of Cumulative Investments, Statement of Requests for Reimbursement (SOE Statement) and Statement of Speciai Account of the Partnership For Market Readiness as of December 31, 2016, and for the period then ended, and a summary of significant accounting policies and other explanatory information. The financial statements have been prepared by Ministry of Environment and Urbanization, Department of Climate Changes based on relevant provisions of the Grant Agreement Numbered TF-015591. In our opinion; a) The accompanying Statement of Sources and Uses of Funds, Statement of Cumulative Investments, Statement of Requests for Reimbursement (SOE Statement) and Statement of Special Account present fairly, in all material respects, the financial position and accounting policies of the Partnership For Market Readiness as of December 31, 2016 and for the period then ended in accordance with the provisions of the Grant Agreement Numbered TF-015591. b) Ministry of Environment and Urbanization, Department of Climate Changes, as of December 31, 2016 has complied with, in all material respects, the requirements of the Grant Agreement Numbered TF-0 15 59 1. c) With respect to SOEs, adequate supporting documentation has been maintained to support claims to the World Bank for reimbursement of expenditures incurred, and these expenditures are eligible for financing under the Grant Agreement Numbered TF-015591. Basis for Opinion 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 Financial Statements" section of this report. We are independent of the Ministry of Environment and Urbanization, Department Of Climate Changes within the meaning of ethical requirements and have fulfilled our other responsibilities under those ethical requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Basis of Accounting and Restriction on Distribution and Use We draw attention to Note "T' to the financial statements, which describe the basis of accounting. г г Г � � � г The financial statements are prepared to assist the Ministry of Environment and Urbanization, Department Of Climate Changes to comply with the financial reporting provisions of the World Bank Grant Agreement Numbered TF-015591. As a result, the financial statements may not be suitable for another purpose. Our report is intended solely for the Ministry of Environment and Urbanization, Department Of Climate Changes, Undersecretariat of Treasury, and World Bank, and should not be distributed or used by other parties. Responsibilities of Management and Those Charged with Governance for the Financial Statements Ministry of Environment and Urbanization, Department of Climate Changes is responsible for the preparation and fair presentation of these financial statements in accordance with Grant Agreement Numbered TF-015591, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Those charged with governance are responsible for overseeing the Ministry of Environment and Urbanization, Department of Climate Changes' financial reporting process. Auditor's Responsibilities for the Audit of the Financial Statements The objectives of our audit are to obtain reasonable assurance about whether the 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 these financial statements. As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the planning and performance of the audit. We also: Identify and assess the risks of material misstatement of the 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 entity's internal control. L _ .J L Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. * Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We are required to 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. We are also required to provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. IA Ahmet Umit SUCU Acting Chairman of Board of Treasury Controllers i CALISKAN udit Partner) Vice-Chairman Nuri ATE Selguk KIRBA Senior Treasury Controller Junior Treasury Controller Date June 16, 2017 Address: T.C. Ba bakanhk Hazine Miste5arligi, Hazine Kontrolbrleri Kurulu Ba kanligi, 06510 Ankara/TURKEY -n CZ 3E nLlW~ MINISTRY OF ENVIRONMENT AND URBANIZATION General Directorate of Environmental Management Department of Climate Change Grant Agreement for Market Readiness Proposal Partnership for Market Readiness (Implementation Fund/2.Phase) Grant/Project No. TF015591 STATEMENT OF SOURCES and USES of FUNDS As of December 31, 2016 and For The Year Then Ended (in US Dollars) Actualized Planned Variance Notes YTD Cumulative YTD Cumulative YTD Cumulative I- SOURCES OF FUNDS A- Government Contribution 0,00 0,00 0,00 0,00 0,00 0,00 B- Other Sources of Funds 0,00 0,00 0,00 0,00 0,00 0,00 C- World Bank Funds (Grant) 1.029.578,62 1.572.567,72 1.150.466,29 1.823.129,52 -120.887,67 -250.561,80 1- Direct Payment ' 0,00 0,00 0,00 0,00 0,00 0,00 2- Special Account 1.029.578,62 1.572.567,72 1,150.466,29 1.823.129,52 -120.887,67 -250.561,80 a- Advance 0,00 300.000,00 0,00 300.000,00 0,00 0,00 b- SOE Procedures 1.029.578,62 1.272.567,72 1.150.466,29 1.523.129,52 -120.887,67 -250.561,80 c- Summary Sheet 0,00 0,00 0,00 0,00 0,00 0,00 D- Refunds to Special Account 0,00 0,00 0,00 0,00 0,00 0,00 TOTAL FUNDS RECEIVED 1.029.578,62 1.572.567,72 1.150.466,29 1.823.129,52 -120.887,67 -250.561,80 II- USES OF FUNDS Component-A: Implementation of an MRV pilot in the eCtricit. . I aement or 525.967,99 691.864,34 525.967,99 691.864,34 0,00 0,00 electricity, rafinery and cement sector 1- Preperation of Monitoring Plans and Monitoring Reports- Sector I (Electricity Sector) (IMRV-1 1.1) 194.999,73 194.999,73 194.999,73 194.999,73 0,00 0,00 2- Preperation of Monitoring Plans and Monitoring Reports-Sector II (Refinery Sector) (IMRV-1 1.2) 25.204,80 42.008,00 25.204,80 42.008,00 0,00 0,00 3- Preperation of Monitoring Plans and Monitoring Reports-Sector III (Cement Sector) (IMRV-1 1.3) 38.704,00 96.760,00 38.704,00 96.760,00 0,00 0,00 4- Verification of Monitoring Reports-Sector I (IMRV-1 1.4) 183.741,55 183.741,55 183,741,55 183.741,55 0,00 0,00 5- Verification of Monitoring Reports-Sector 11 and Ill (IMRV-11.5) 83.317,91 174.355,06 83.317,91 174.355,06 0,00 0,00 r L L Component-B: Analytical Work to Inform Decision Making 331.543,66 360.543,34 375.043,18 404.042,86 -43.499,52 -43.499,52 on the Use of Market Based Instrument(s) (MBI) 1- Report on Consideration of ETS for the Electricity Sector ncluding emission benchmark study and ETS Design (DoMBI(s)-2 217.497,60 246.497,28 260.997,12 289.996,80 -43499,52 -43.499,52 2- Report on Recommendations for Selection of MBIs and Modelling (DoMBI(s)-3 114.046,06 114.046,06 114.046,06 114.046,06 0,00 0,00 3- Report on GHG Market Modelling Outcomes for Selected Sectors (DoMBl(s))-4 0,00 0,00 0,00 0,00 0,00 0,00 4- MBIs for GHG Emission Reduction Objective - Policy Options and Recommendations Report (DoMBI(s))-5 0,00 0,00 0,00 0,00 0,00 0,00 5- Consultancy for the training of Stakeholders (gov. and business representatives, operators, verifiers consultants, etc.)(DoMBI(s))-6 0,00 0,00 0,00 0,00 0,00 0,00 Component-C: Stakeholder Training, 77,006,83 91.029,77 109,623,51 123.646,45 -32.616,68 -32.616,68 Consultation/Engagement and Public Awareness Activities 1- Public Awareness Activities (Media activities, high level public/private meetings etc.) (Stakeholder Consultation/Engagement and Public Awareness Activities -web page) (DoMBI(s))-9 0,00 0,00 000 0,00 0,00 0,00 2- TA for Public Awareness and Communication (DoMBI(s)-9a) 0,00 0,00 0,00 0,00 0,00 0,00 3- Preparation of web page and visuals for PMR Project (DoMBI(s)-9b) 5.450,15 5.450,15 7.509,90 7.509,90 -2.059,75 -2.059,75 4- Project Introduction Meeting and Workshop (DoMBI(s)-7a) 0,00 13.083,03 0,00 13.083,03 0,00 0,00 5- PMR Project Coordination Workshop (DoMBI(s)-7b) 0,00 939,91 0,00 939,91 0,00 0,00 6- PMR Workshops (DoMBI(s)-2 and DoMBI(s)-3) and MRV Lessons Learnt Workshop (DoMBI(s)-7c) 38.372,99 38.372,99 38.372,99 38.372,99 0,00 0,00 7- Round Table Meetings for DoMBI(s) Contracts (DoMBI(s)-7d) 0,00 0,00 0,00 0,00 0,00 0,00 8- PMR Workshops for DoMBI(s) Contracts (DoMBI(s)-7e) 33.183,69 33.183,69 63.740,62 63.740,62 -30.556,93 -30.556,93 9- Logistical services for meeting with related stakeholders for consultation of iMRV and DoMBI(s) (Stakeholder Consultation/Engagement and Public Awareness Activities) (DoMBI(s)- 8) 1 0,00 0,00 0,00 0,00 0,00 0,00 г 'I i C) C) U) - CD Cli C:ý <::ý q q N q 0 C) C> (D LO CD m 0? LLI 0 LU CL C) (D CD l() CD å q q q 'q - q Leý M - U) Cý C) r- t'- OD (> oq Cý (1ý N m 19 M co LO rý (1) tr) N N Ln CO CD ýr wý r-ý Lq in c5ý Cý q rIý ,ýt r- co 16 LO (6 r, 00 N cý) 0) M m C> LD q CR cp co LO CD Ln co r- m m 0) M 00 (0 W) CN N lý- CD 10 N n m OC) In r,- CNý q øý q 1,4ý 1-ý tll:ý cq rIý. LO ;t Co W) 10 v) CD M G) 03 -4* " Ln C,ý r-ý CD Lq Lo 4ý<) CS co LI) r.ý c> w P- cr) ø 0 t 0 CL x LU E o r_ CL 2 0 a) 0 > CL > 0 M Z 0 0 q- ' 0 o 2 - 2 0 X cm 0 w u -u 0 C 0 0 ,, 11 Q) U) r- < E 76 0 CL b < E-"E cý CL CL 0 IL E 00 m m e) Lo � г. . С Е t 1� г �м �: � i, � �, i_� ,- � � �.�: Г > ' �д �_. �. а � 3 � Э I г � г � � W. 1 � 1 �..» � �«_i � •, �� - ��� . .... ...... 7-7 -7 -7 -7 MINISTRY OF ENVIRONMENT AND URBANIZATION General Directorate of Environmental Management Department of Climate Change Grant Agreement for Market Readiness Proposal Partnership for Market Readiness (implementation Fund/2.Phase) Grant/Project No: TF015591 STATEMENT OF CUMULATIVE INVESTMENTS As of December 31, 2016 and for the Year Then Ended (in US Dollars) 1- INVESTMENTS Component Name Actualized Planned Variance YTD Cumulative YTD Cumulative YTD Cumulative I- INVESTMENTS COSTS Component-A: Implementation of an MRV pilot in the electricity, 525.967,99 691.864,34 525.967,99 691.864,34 0,00 0,00 rafinery and cement sector 1- Preperation of Monitoring Plans and Monitoring Reports- Sector I (Electricity Sector ) (I M RV- 11. 1) 194.999,73 194.999,73 194.999,73 194.999,73 0,00 0,00 2- Preperation of Monitoring Plans and Monitoring Reports-Sector 11 (Refinery Sector) (IMRV-11.2) 25.204,80 42.008,00 25.204,80 42.008,00 0,00 0,00 3- Preperation of Monitoring Plans and Monitoring Reports-Sector I I I (Cement Sector) (IMRV-1 1.3) 38.704,00 96.760,00 38.704,00 96.760,00 0,00 0,00 4- Verification of Monitoring Reports-Sector I (IMRV-1 1.4) 183,741,55 183.741,55 183.741,55 183.741,55 0,00 0,00 5- Verification of Monitoring Reports-Sector 11 and III (IMRV-1 1.5) 83.317,91 174.355,06 83317,91 174.355,06 0,00 0,00 Component-B: Analytical Work to Inform Decision Making on the Use 331.543,66 360.543,34 375.043,18 404.042,86 -43.499,52 -43.499,52 of Market Based Instrument(s) (MBI) 1 - Report on Consideration of ETS for the Electricity Sector including emission benchmark study and ETS Design (DoMBI(s)-2 217.497,60 246.497,28 260.997,12 289.996,80 -43.499,52 -43.499,52 2- Report on Recommendations for Selection of MBls and Modelling (DoMBI(s)-3 114.046,06 114.046,06 114.046,06 114.046,06 0,00 0,00 3- Report on GHG Market Modelling Outcomes for Selected Sectors (DOMBI(s))-4 0,00 0,00 0,G0 0.00 0,00 0,00 4- M131s for GHG Emission Reduction Objective - Policy Options and Recommendations Report (DoMBI(s))-5 0,00 0,00 0.00 0,00 0,00 0,00 5- Consultancy for the training of Stakeholders (gov. and business representatives, operators, verifiers consultants, etc.)(DoMBI(s))-6 1 0,001 0,001 0,00 0,001 0,01) ＿誌～品編～必蘊么鵪→滷亂么縊上＿亡江＿＿遛訕弱訕氤易鎰贏〔鎰瓜蘊必』占二＿鎰么屆訕以j訕必J謐扁鄙→j諭嗣】U→ r 7, '__" F_' , - r" I .. I I 7_17 ___7 1 ............. 7-7 7-71 7-7 -7 -7 -7 Cornponent-C: Stakeholder Training, Cons u ltation/Engagement and 77.006,83 91.029,77 109.623,51 123.646,45 -32.616,68 -32.616,68 Public Awareness Activities I - Public Awareness Activities (Media activities, high level public/private meetings etc.) (Stakeholder Consultation/Engagement and Public Awareness Activities -web page) (DoMBI(s))-9 0,00 0,00 0,()0 0,00 0,00 0.00 2- TA for Public Awareness and Communication (DoMBI(s)-9a) 0,00 0,00 0,00 0,00 0,00 0,00 3- Preparation of web page and visuals for PMR Project (DoMBI(s)-9b) 5.450,15 5.450,15 7.509,90 7.509,90 -2.059,75 -2.059,75 4- Project Introduction Meeting and Workshop (DoMBI(s)-7a) 0,00 13.083,03 0,00 13.083,03 0.00 0,00 5- PMR Project Coordination Workshop (DoMBI(s)-7b) 0,00 939,91 0,00 939,91 0,()0 0,00 6- PMR Workshops (DoMBI(s)-2 and DoMBI(s)-3) and MRV Lessons Learnt Workshop (DoMBI(s)-7c) 38372,99 38.372,99 38.372,99 38,372,99 0,00 0,00 7- Round Table Meetings for DoMBI(s) Contracts (DoMBI(s)-7d) 0.00 0,00 0,00; o'00 0,00 0,00 8- PMR Workshops for DoMBI(s) Contracts (DoMBI(s)-7e) 33.183.69 33.183,69 63.740,62 63.740,62 -30.556,93 -30.556,93 9- Logistical services for meeting with related stakeholders for consultation of iMRV and DoMBI(s) (Stakeholder Cons u Itation/Engagem ent and Public Awareness Activities )(DoMBI(s)-B) 0,00 0,00 0.00 0,00 0,00 0,00 Component-D: Coordination and Expert Support for the 133.030,27 296.774,53 139.831,61 303.575,87 -6.801,34 -6.801,34 Implementation of MRV and MBIs I- Project Coordinator (PIU-1) 0,00 35.787,76 0,00 35.787,76 0.00 0,00 2- Project Technical Coordinator (PIU-1a) 48.205,95 86.028,56 48.205,95 8U28,56 0,00 0.00 3- Project Assistant (PIU-2) 25.393,52 67.835,52 25.393,52 67.835,52 0,00 0,00 4- Procurement expert (PIU-3) 17.795,43 17.795,43 27.271,98 27.271,98 -9.476,55 -9.476,55 5- Financial Management and Disbursement Specialist (PIU-1) 26,051,19 59.691,24 23.375,98 57.016,03 2.675,21 2,675,21 6- Operating Costs 15.584,18 29.636,02 15.584,18 29.636,02 0,00 0,00 TOTAL INVESTMENTS COSTS 1.067,548,75 1.440.211,98 1.150.466,29 1.523.129,52 -82.917,54 -82.917,54 11- RECURRING COSTS A- Financing Expenditures 0,00 0.00 0,00 0,00 0,00 0,00 B- General Management Expenditures 0,00 0,00 0,00 0,00 0,00 0,00 C- Exchange Rate Differences 0,00 0,00 0,00 0,00 0,001 0,0() TOTAL RECURRING COSTS 0,00 0,00 0,00 0,00 0,001 0,00 PROJECT INVESTMENTS 1.067.548,75 1.440,211,98 1.150.466,29 1.523.129,52 .82.917,541 -82.917,54 г 1. г i F", 7 7-7 7-7 7 -7 -7 2- INVESTMENTS BY SUB-CATEGORIES Category Name Actualized Planned Variance YTD Cumulative YTD Cumulative YTD Cumulative 1- CONSULTANTS SERVICES INCLUDING AUDIT, TRAINING AND WORKSHOPS AND STAKEHOLDER CONSULTATIONS 1.051.964,57 1.410.575,96 1.134.882,11 1.493.493,50 -82.917,54 -82.917,54 1.1- Preperation of Monitoring Plans and Monitoring Reports- Sector I (Electricity Sector) (I M RV-1 1. 1) 194.999,73 194.999,73 194.999,73 194M9,73 0,00 0,00 1.2- Preperation of Monitoring Plans and Monitoring Reports-Sector 11 (Refinery Sector) (IMRV-1 1.2) 25.204.80 42.008,00 25.204,80 42.008,00 0,00 0,00 1.3- Preperation of Monitoring Plans and Monitoring Reports-Sector III (Cement Sector) (IMRV-1 1.3) 38.704,00 96,760,00 38.704,00 96.760,00 0,00 0,00 1.4- Verification of Monitoring Reports-Sector I (IMRV-1 1.4) 183.741,55 183.741,55 183.741.55 183.741,55 0,00 0,00 1.5- Verification of Monitoring Reports-Sector JI and III (IMRV-1 1.5) 83.317,91 174,355,06 83.317,91 174.355,06 0,00 0,00 1.6- Report on Consideration of ETS for the Electricity Sector ncluding emission benchmark study and ETS Design (DoMBI(s)-2 217.497,60 246,497,28 260.997,12 289.996,80 -43.499,52 -43.499.52 1.7- Report on Recommendations for Selection of MBls and Modelling (DoMBI(s))-3 114.046,06 114.046,06 114.046,06 114,046,06 0,00 0,00 1.8- Report on GHG Market Modelling Outcomes for Selected Sectors (DoMBI(s))-4 0,00 0,00 0,00 0,00 0,00 0,00 1.9- MBls for GHG Emission Reduction Objective - Policy Options and Recommendations Report (DoMBJ(s))-5 0,00 0,00 0,00 0,00 0,00 0,00 1.10- Consultancy for the training of Stakeholders (gov. and business representatives, operators, verifiers consultants, etc.)(DoMBI(s))-6 0,00 0,00 0,00 0,00 0,00 0,00 1.11 - Public Awareness Activities (Media activities, high level public/private meetings etc.) (Stakeholder Consultation/Engagement and Public Awareness Activities -web page) (DoMBI(s))-9 0,00 0,00 0,00 0,00 0,00 0,00 1.12- TA for Public Awareness and Communication (Do BI(s)-ga) 0,00 0,00 0,00 0,00 0,00 0,00 1.13- Preparation of web page and visuals for PMR Project (DoMBI(s)-9b) 0,00 0,00 0,00 0,00 0,00 0,00 1.14- Project Introduction Meeting and Workshop (DoMBI(s)-7a) 5,450,15 5.450,15 7.509,90 7.509,90 -2.059,75 -2 059,75 1.15- PMR Project Coordination Workshop (DoMBI(s)-7b) 0,00 13.083,03 0,00 13.083,03 0,00 0,00 1,16- PMR Workshops (DoMBI(s)-2 and DoMBI(s)-3) and MRV Lessons Learrit Workshop (DoMBI(s)-7c) 0,00 939,91 0,00 939,91 0,00 0,00 ,1.17- Round Table Meetings for DoMBI_(s__Contracts__(DoMBI(s)-7d) 38,372,99 38.372,99 38.372,99 38,372,99 0,00 0,00 11.18- PMR Workshops for DoMBI(s) Contracts (DoMBI(s)-7e) 0,001 0,00 0,001 0,00 0,00, 0,00, Lii Lii Lii Lii Lii iiui r J. ~j - ―松 l, 1 ',' "" , '',"i j ý l - 1 L-- L-- 11--- L--i L---2 Lý-ý L--" 4-ý 11--2 MINISTRY OF ENVIRONMENT AND URBANIZATION General Directorate of Environmental Management Department of Climate Change Grant Agreement for Market Readiness Proposal Partnership for Market Readiness (Implementation Fundl2.Phase) GrantlProject No: TF015591 STATEMENT OF REQUESTS FOR DISBURSEMENT (SOE STATEMENT) For The Year Ended on December 31, 2016 (In US Dollars) I- REQUESTS REIMBURSED _________ Disbursement Categories App. Date Appl. No. 1- Consulting 2- Operating Total Amount Date of Services Cost Paid Payment 25.02.2016 MRV-6 118.928,01 10.746,12 129.674,13 129.674,13 04.03.2016 04.05.2016 MRV-7 143.556,29 2.209,05 145.765,34 145.765,34 12.05.2016 28.06.2016 MRV-8 125.297,74 1.970,47 127.268,21 127.268,21 30.06.2016 19.07.2016 MRV-9 159.986,44 3.156,00 163.142,44 163.142,44 28.07.2016 08.08.2016 MRV-10 99.269,21 0,00 99.269,21 99.269,21 19.08.2016 08.09.2016 MRV-11 187.047,16 0,00 187.047,16 187.047,16 27.09.2016 11.11.2016 MRV-12 75.836,76 973,77 76.810,53 76.810,53 22.11.2016 12.12.2016 MRV-13 98.809,24 1.792,36 100.601,60 100.601,60 28.12.2016 Sub total 1.008.730,85 20.847,77 1.029.578,62 1.029.578,62 I- REQUESTS PENDING REIMBURSEMENT Disbursement Categories 1 Appi. No. Consulting 2- Operating Total Amount Date of Appl. Date AplNoTta Services Cost Paid Payment 0,00 0,00 0,00 0,00 0,00 Sub total III- TOTAL AMOUNT REQUESTED S1- Consulting 2- Operating Total Amount Services Cost Paid 1.008.730,85 20.847,77 1.029.578,62 1.029.578,62 NOTES: No withdrawal request was made in the form of SOE during the year. Tu6ba i Li Mehra i ECER Bran ger Head of Department il li 'i il il MINISTRY OF ENVIRONMENT AND URBANIZATION General Directorate of Environmental Management Grant Agreement for Market Readiness Proposal Partnership for Market Readiness (Implementation Fund/2.Phase) (Grant/Project No: TF015591) NOTES TO THE PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016 1. OBJECTIVES AND NATURE OF THE PROJECT The objective of the Grant is to assist the Recipient to implement its greenhouse gas Monitoring, Reporting, and Verification (MRV) pilot in the electricity sector, based on Turkey's MRV regulation, and to provide analytical information for the establishment of a carbon market in Turkey. The Grant Activities consist of the following Parts: Part 1: Piloting the use of the MRV procedures within the electricity sector, and with other willing companies and stakeholders (such as accreditation bodies and verifiers) in other sectors including preparation of monitoring plans for the electricity sector, collection of data by the volunteering installations, and reporting and verification of such data, to identify potential problems in a timely fashion. Part 2: Conducting analytical studies to inform decision making on the use of market based instrument(s) (MBI), including, inter alia,(i) a study on use of an emission trading scheme for the electricity sector; (ii) a study on selection of MBIs and modeling for sectors covered and not covered by the MRV regulation; (iii) a study on Greenhouse Gas (GHG) market modeling for selected sectors covered and not covered by the MRV regulation; and (iv) a synthesis report of the above mentioned studies for consideration by the CBCC and policy makers. Part 3: Carrying out stakeholder training, consultation/engagement and public awareness activities, including,, (i) conferences and workshops to support the activities under Parts 1 and 2; (ii) consultation meetings with stakeholders; and (iii) public awareness activities (media, high level public/private meetings, etc.). Part 4: Establishment of the project management unit to coordinate and support implementation of MRV and MBI activities. The International Bank for Reconstruction and Development ("World Bank"), acting as administrator of grant funds provided by contributors ("Contributors") under the Partnership for Market Readiness Multi-Donor Trust Fund, has agreed to provide a grant amounting to three hundred and fifty thousand (3.000.000) United States Dollars. The Closing Date of the Project shall be 31 June 2017. Project is structured under General Directorate of Environmental Management Department of Climate Change and it is conducted through below mentioned officials with coordination of Head of Department. i г г г г i г � �. No Title Number of Employment Type personnel I Head of Division I Civil Servant 2 Environment and Urbanization I Civil Servant Expert 3 City Planner I Civil Servant 3 Project Technical Coordinator I Individual Consultant (Service Contract) 4 Project Assistant I Individual Consultant (Service Contract) 5 Procurement Specialist I Individual Consultant (Service Contract) 6 Financial Management and I Individual Consultant (Service Contract) Disbursement Specialist Total 7 2. MAIN ACCOUNTING POLICIES a) Project is financed by The International Bank for Reconstruction and Development ("World Bank"), acting as administrator of grant funds provided by contributors ("Contributors"). b) Payments under the Project are done directly to the enterprises from Special Account. c) Accounts arc kept according to "Regulation on accounting and disbursement principles for Proiect funds granted by the European Union or International Organizations to Public 'Administration" issued by Ministry of Finance on the Official Gazette dated November 27, 2007 and Nbr. 26713. d) All data and records of the Project, related to project activities and disbursements as well as the relevant documentation are kept in the Office of the Climate Change Management Department. 3. FINANCIAL DECLARATIONS (RESTRICTED USE OF FUNDS AND OTHER ASSETS) Pursuant to the Grant Agreement signed between the Undersecretariat of Treasury and the World Bank, the fimds in the Special Account can only be spent for the achievement of project objectives. The funds not disbursed as of project completion will be transferred to the Undersecretariat of Treasury to be returned to the World Bank in accordance with the provisions of Grant Agreement. 4. Grant Agreement Republic of Turkey is not obliged to any repayment in accordance with the Grant Agreement. 5. CASH AVAILABILITY AT DECEMBER 31,2015 Cash available at December 31, 2016, expressed in US dollars, included: Special Loan Account Balance (TCMB) 132.355,74 TOTAL 132.355,74 Tugba i C , Li ---- Mehrali ECER Bran ager Head of Department г г � �': i