FICADEX ALBANIA Ltd INDEPENDENT AUDITORS' REPORT With audited financial statements for the year ended December 31, 2015 Energy Sector Cleanup and Land Reclamation Project (MESP) (IDA Credit No. 5240 - XK and DUTCH Grant No. TF013509) Project, "Energy Sector Clean - Up and Land Reclamation" (MESP) Project (IDA Credit No. 5240 - XK and Grant No. TF13509) Project ID P096181 Status Active Approval date January 10, 2013 and May 15, 2013 Effective date April 19, 2013 Closing date December 31, 2014, extended August 31, 2016 Country Kosovo Audited by, "FICADEX ALBANIA" Ltd Jacques COLIBERT Maria DUSHI www.ficadex.com "SARACEVE" street; Buildingno 6, No. 1 MunicipalUnit no. 8, Tirana-Albania "Migin street ,147 0. 4, Durres-Albania; Te/lfr - 3555237859 Mission, Audit of Financial Statements Report, Date: July 05, 2016 Version: Final report Declaration of responsibility The entire documentation was provided by the management of the Project and MoF of Kosovo. Independent Auditors' Report Page With Audited Financial Statements of the project * Statement of Sources and Uses of Funds for the year ended 31 December 1 2015 * Statement of expenditures for the year ended 31 December 2015 2-3 * Notes to the Financial Statements as at 31 December 2015 4-13 Supplementary schedule to the Financial Statements: * Accumulated statement of expenditures for the period April 19, 2013 (inception date) up to December 31, 2015 1-11 "FICADEX ALBANIA" Ltd Mobile: + 355 69 40 52 787 " SARACEVE" street-, Building no. 6, No. Tel/fax: + 355 52 2 37 859 1; Municipal Unit no. 8, Tirana-Albania E-mail: alficadex@gmail.com; alficadexabotmail.com; "Migjeni" street ,147 Q. 4, Durres - Albania Web site: www.ficadex.com INDEPENDENT AUDITORS' REPORT To the Minister of Finance, Republic of Kosovo We have audited the accompanying financial statements of "Energy Sector Clean - Up and Land Reclamation" Project (MESP), financed under World Bank (IDA Credit No. 5240 - XK and DUTCH Grant No. TF013509), which comprise the statement of cash receipts and payments and the statement of expenditures for the year ended December 31, 2015 and the related notes to the financial statements. Statements Management's Responsibilityfor the Financial Management is responsible for the preparation and fair presentation of these financial statements in accordance with the cash basis of accounting described in note 2 to the Financial Statements; this includes determining that the cash basis of accounting is an acceptable bases for the preparation of the financial statements in the circumstances. Management is also responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements, and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements 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. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements referred to above, presents fairly in all material respects, the funds received and expenses paid by the "Energy Sector Clean - Up and Land Reclamation" Project (MESP) financed under World Bank (IDA Credit No. 5240 - XK and DUTCH Grant No. TF013509) for the year ended December 31, 2015 in accordance with the cash receipts and disbursements basis as described in note 2 to the financial statements. "FICADEX ALBANIA" Ltd Mobile: + 355 69 40 52 787 " SARACEVE" street Building no. 6, No. Tel/fax: + 355 52 2 37 859 1; Municipal Unit no. 8, Tirana-Albania E-mail: alficadex@Zmail.com; alficadex(ql,hotmail.com; " Migjeni" street,147 Q. 4, Durres - Albania Web site: wwwficadex.com Basis ofAccounting We draw attention to note 2 of the financial statements, which describe the basis of accounting. The financial statements are prepared on the cash basis of accounting, which is a basis of accounting other than accounting principles generally accepted in the Republic of Kosovo. Our opinion is not modified with respect to this matter. Kosovo July 05, 2016 Albo "6FI Ltd Jacqfues Marije DUSHI 217 P- "Energy Sector Clean-up and Land Reclamation" (MESP) Project (IDA Credit No. 5240 - XK; DUTCH Grant No. TF013509) Statement of Sources and Uses of Funds For the year ended 31 December 2015 (In EUR unless otherwise stated) Cumulative from Sources and uses Year ended April 19, 2013 Notes (inception date) to: December December December December 31, 31, 2015 31, 2014 31, 2013 2015 Sources of funds: IDA funding (IDA Credit No. 4 324,788.11 827,132.53 - 1,151,920.64 5240 - XK) DUTCH funding (Grant No. TF 5 160,797.50 45,721.29 - 206,518.79 013509) Temporary advances received by 6 253,789.86 66,411.31 62,724.95 382,926.12 Government Total sources - 739,375.47 939,265.13 62,724.95 1,741,365.55 Uses of funds: Training 8 (12,379.66) (32,030.38) (5,333.50) (49,743.54) Goods 9 - (24,931.00) (9.062.81) (33,993.81) Retroactive Reimbursement Air 13 - (326,492.00) - (326,492.00) Quality Monitoring Equipment Consulting services 10 (723,516.69) (550,403.23) (46,744.41) (1,320,664.33) Incremental operating costs 11 (3,479.12) (5,408.52) (1,584.23) (10,471.87) Total uses 12 (739,375.47)* (939,265.13) (62,724.95) (1,741,365.55) Cash on hand and at banks at the end of the year - - - The Statement of Sources and Uses of Funds is to be read in conjunction with the notes set out on pages 4 to 13 and forming an integral part of the financial statements. The annual financial statements of the Project were authorized for issue by the management of Energy Sector Cleanup and Land Reclamation Project on July 8, 2016 and signed on its behalf by: 11 b JINOLLI Mirja SA oec oordinator Financial management specialist *There is a difference between expenditure reported as per KFMIS reports and expenditure reported in the Financial Statements, in the amount of 9,722 Euro. This amount represents a payment executed directly by the Treasury Department as a court decision against the Ministry of Environment and Spatial Planning. Please see Note 15. lIP age o Lr-3 " 0c Q m -< o 00 CD GM2 Nfl N cug sCl S00 ra 00 -0 m0 r) 00 rlî 00 cc roo? o - - 00 00 00 en0 r a Cl e cu ifl ifvn ýO e~ en 00 if f l t Cl Cl fI ~ 8~e 00 0 2l el e - • r~ oe c 0 e] o o ~~- L. 0 i 0 t kn 04 "D 0 u-- t- 00 0 CN O~ O~ 00 00 i 0 0t 0 0 t- c4 00 od j ~e - - 00 00 C ~ 00 ti - O CD~ 00 Qc o ei CxI I I ' ' .4 C t- cq 00 - mm Energy Sector Clean-up and Land Reclamation (MESP) Project (IDA Credit No. 5240 - XK; DUTCH Grant No. TF013509) Notes to the Financial Statements for the year ended 31 December 2015 (in EUR unless otherwise stated) 1. General The Financing Agreements for the Energy Sector Clean-up and Land Reclamation Project ("CLRP") (IDA Credit No. 5240 - XK; Grant No. TF 013509) ("Agreements'), were signed between the International Development Association ("IDA") and Republic of Kosovo ("Recipient") on January 10, 2013 and May 15, 2013. The Project funding Agreements are ratified by Assembly of Republic of Kosovo with Law No. 04/L- 210 on July 31, 2013. 19 April 2013 is the effective date of the project (Grant TF 13509) while 08 October 2013 is the effective date for IDA Credit 5240. On January 10, 2013 International Development Association, acting as administrator of grant funds provided by the Netherlands Minister for European Affairs and International Cooperation agreed a grant to the Recipient, in an amount not to exceed Euro 854,000 ("Grant") on the terms and conditions set forth or referred in the letter agreement ("Agreement"). On May 15, 2013 the Republic of Kosovo and International Development Association ("Association") agreed to provide additional financing for activities related to the ESCLR Project. The Association agrees to extend to the Recipient on the terms and conditions set forth or referred to the Agreement, a credit in an amount equivalent to two million eight hundred thousand Special Drawing Rights (SDR 2,800,000) Financing") to assist in financing the project. The closing date of the project was December 31, 2014. It has been extended to February 29, 2015, and a further extension was granted up to August 31, 2016. At 31 December 2015, the Project had 4 employees (full time, Project Coordinator, Procurement Officer and Communication Specialist and part time, Financial Management Specialist) The objectives of the Project are: i. to address environmental legacy issues related to the open dumping of ashes on land from KEK's Kosovo A thermal power plant; ii. to enable KEK to free land for community development purposes currently taken by overburden material and to enable KEK to remediate the Kosovo A ash dump; and iii. to support KEK and MESP to implement continued clean-up operations and environmental good practice in the mining and energy sector. The Project consists of the following parts: PartA: Preparation ofMirash Open Pit Mine for Ash Management Preparation of the Mirash mine, including installation of a base liner and construction of lateral dam structures, to develop the proper conditions for safe and sustainable storage of ash and over burden materials collected from KEK's Kosovo A and B thermal power plants, as well as from lignite mining developments, through the provision of works. Part B: Environmental Remediation ofKosovo A Ash Dumps The existing dump site with ashes from Kosovo A and overburden materials from existing lignite mines will be remediated to mitigate environmental impacts, in particular dust emissions, and take away geotechnical instabilities of disposed materials that create risks for nearby houses, through the provision of technical assistance, equipment and works. 4 |P ag e Energy Sector Clean-up and Land Reclamation (MESP) Project (IDA Credit No. 5240 - XK; DUTCH Grant No. TFO 13509) Notes to the Financial Statements for the year ended 31 December 2015 (in EUR unless otherwise stated) 1. General (continued) The objectives of the Project (continued) Part C: Reclamation of Overburden Dump Areas Reclamation, reshaping and re cultivation of KEK's South Field overburden dunp and the overburden dump west of KEK's Bardh mine to release approximately 6.5 square kilometers of land for community development purposes, including (i) the construction of roads, (ii) a surface drainage system, and (iii) the planting of trees and mixed vegetation, through the procurement of technical assistance, goods and works. Part D: Project Management Provision of technical assistance to KEK and MESP for the purposes of Project implementation, including the financing of Training and Incremental Operating Costs such as Project management, short-term experts, office equipment for MESP and audits. Part E: Hazardous Materials Clean-up at the Kosovo A Gasification Site i. Removal and disposal of tar deposits and tar sludge from the Kosovo A gasification site; ii. Monitoring the implementation of tar deposits and tar sludge removal and disposal from the Kosovo A gasification site. Part F: Environmental Monitoring and Management by MESP Improving the review and monitoring function of MESP in relation to the environmental and social implications of large power plant projects, through the provision of goods, works and technical assistance, including: i. air monitoring equipment to measure baseline air quality data; ii. soil and water monitoring to collect data on current pollution baseline data; iii. preparation of an Environmental and Social Impact Assessment("ESIA") for the proposed Kosovo Power Project; iv. monitoring of implementation of the existing RAP; v. panels of experts established to advise the Recipient on preparation of the ESIA and implementation of the RAP; and vi. Preparation of a low carbon growth energy strategy. Part G: Repair of Trepca Stan Terg mine Slurry Pump Repairing slurry pump to reduce water consumption for returning mine waste materials at Trepca Stan Terg mine. Part H MESP Environmental Monitoring and Management Improving the review and monitoring function of MESP in relation to the environmental and social implications of large power plant projects, through the provision of consultancy services and technical assistance in the following areas: (i) review of environmental impact assessments: (ii) permitting tasks; and (iii) inspections to monitor compliance with permit conditions 5|Page Energy Sector Clean-up and Land Reclamation (MESP) Project (IDA Credit No. 5240 - XK; DUTCH Grant No. TFO 13509) Notes to the Financial Statements for the year ended 31 December 2015 (in EUR unless otherwise stated) IDA Credit No. 5240 - XK In accordance with the Financing Agreement dated May 15, 2013 between the International Development Association (the "IDA" or the "Association"), a division of the World Bank, and Republic of Kosovo ("the Recipient") the Project received an additional Financing of Special Drawing Rights ("SDR") 2,800,000 ("Credit") The following table specifies the categories of Eligible Expenditures that may be financed out of the proceeds of the Financing ("Category"), the allocations of the amounts of the Credit to each category, and the percentage of expenditures to be financed for Eligible Expenditures in each category: No. Category Amount of credit % of expenditures to be allocated (expressed in financed SDR) 1 Goods, works, non - consulting services and 1,200,000 100% consultants' services under Part C (iii) and E 2 Goods, works, non - consulting services and 1,521,000 100% consultants' services under Part F 3 Goods, works, non - consulting services and consultants' services and Incremental Operating Costs under Part D a. KEK 15,000 100% b. MESP 64,000 100% Total 2,800,000 Amounts translated using exchange rates on inception date of the project. As at 31 December 2015 EUR 1,151,920.64 or SDR 981,768.19 (2014: EUR 827,132.53) were disbursed from the Credit. The maximum Commitment Charge Rate payable by the Recipient on the unwithdrawn Financing Balance shall be 0, 5% (1/2 e 1%) per annum. The service charge payable by the Recipient on the withdrawn Financing Balance shall be equal to three - fourths of one percent (3/4 of 1%) per annum. The interest charge payable by the Recipient on the Withdrawn Credit balance shall be equal to one and quarter percent (1.25%) per annum. The Government of Kosovo will repay the principal amount of the Credit in semi-annual instalments payable as of described in the following table: Date Payment Due Principal Amount of the Credit repayable (expressed as a percentage) On each January 15, and July 15: each instalment shall be commencing July 15, 2018 to and including 1.65% January 15, 2025 commencing July 15, 2028 to and including 3.35% January 15, 2038 The payment currency is Euro 6|Page Energy Sector Clean-up and Land Reclamation (MEESP) Project (IDA Credit No. 5240 - XK; DUTCH Grant No. TF013509) Notes to the Financial Statements for the year ended 31 December 2015 (in EUR unless otherwise stated) DUTCH Grant No. TF013509 In accordance with the Financing Agreement dated January 10, 2013 between the International Development Association (the "IDA" or the "Association"), a division of the World Bank, and Republic of Kosovo ("recipient") the Project received a grant of Euro 854,000 ("Grant"). The following table specifies the categories of Eligible Expenditures that may be financed out of the proceeds of the grant to each category, and the percentage of expenditures to be financed for Eligible Expenditures in each category: No. Category Amount of grant allocated % of expenditures to (expressed in EUR) be financed 1 Goods, works, non - consulting services and 204,000 100% consultants' services under Part E* 2 Goods, works, non - consulting services and 600,000 100% consultants' services under Part G and H** 3 Goods, works, non - consulting services and consultants' services under Part D and Incremental Operating Costs a. KEK 25,000 100% b. MESP 25,000 100% Total 854,000 Pursuant to the letter dated June 23, 2014, requesting reallocation of EURO 350,000 from category 2 "Goods, works, non-consulting services and consultants' services under part G and H" to category I "Goods, works, non-consulting services and consultant's services under part E", the International Development Association (Association), acting as administrator of grant funds provided by the Netherlands Minister for Foreign Trade and Development Cooperation (formerly the Minister of European Affairs and International Cooperation), under the Kosovo Energy Sector Clean-up and Land Reclamation, the Association has established the following amendments to Article 3.01 of Annex to the Letter Agreement (expressed in EUR): No. Category Original amount of the New amount of the Grant allocated Grant reallocated 1 Goods, works, non - consulting services and 204,000 554,000 consultants' services under Part E* 2 Goods, works, non - consulting services and 600,000 250,000 consultants' services under Part G and H** 3 Goods, works, non - consulting services and consultants' services under Part D and Incremental Operating Costs a. KEK 25,000 25,000 b. MESP 25,000 25,000 Total 854,000 854,000 7|Pa2e Energy Sector Clean-up and Land Reclamation (MESP) Project (IDA Credit No. 5240 - XK; DUTCH Grant No. TFO 13509) Notes to the Financial Statements for the year ended 31 December 2015 (in EUR unless otherwise stated) DUTCH Grant No. TF013509 (continued) Amounts translated using exchange rates on inception date of the project. As at 31 December 2015 EUR 206,518.79 (2014: EUR 45,721.29) were disbursed from the Grant. The commitment to the objectives of the project is: * Part E of the Project shall be carried out through KEK ** Part G and H of the Project shall be carried out through MESP The project management activities for Part G and H under part D of the project through MESP, and The project management activities for Part E under part D by KEK 2. Basis of preparation The financial statements of the project for the year ended 31 December 2015 have been prepared for the purpose of complying with the provisions of the Project's objectives, the World Bank guidelines and terms and conditions of the DUTCH Grant No. TF13509 and IDA Credit No. 5240 - XK The financial statements comprise the statement of sources (cash receipts) and uses (payments); the statement of expenditure used as the basis for the submission of withdrawal applications for the year ended December 31, 2015 and a summary of significant accounting policies and other explanatory notes. The cumulative statements of expenditure used as the basis for the submission of withdrawal applications for the period from inception on 19 April 2013 till December 31, 2015 are presented as supplementary schedules. Cumulative information on receipts and disbursements from the Project's inception date to December 31, 2015 is presented in the statement of sources and uses of funds for information purposes only. The financial statements have been prepared in accordance with cash basis IPSAS - Financial Reporting under the Cash Basis of Accounting, which differs from Kosovo and International Financial Reporting Standards. On this basis, income is recognised when received rather than when earned and expenses are recognised when paid rather than when incurred. Accordingly, direct and indirect payments of the Project's expenses, which are made from the proceeds of the grants and credit, are recognised as sources and uses of funds at the time the payment is made. The financial statements are presented in Euros ("EUR"), unless otherwise stated. 3. Summary of significant accounting policies A summary of significant accounting policies underlying the preparation of the Project's financial statements is presented below 3.1 Foreign currency transactions The project accounts are maintained in Euros ("EUR") the legal currency of Kosovo. The Project deals predominantly in EUR, while the foreign currencies the Project deals with are predominantly in Special Drawing Rights ("SDR") and United State Dollars ("USD") Transactions in foreign currencies are translated to the functional currency at exchange rates on the dates of the transactions. 81P age Energy Sector Clean-up and Land Reclamation (MESP) Project (IDA Credit No. 5240 - XK; DUTCH Grant No. TF0 13509) Notes to the Financial Statements for the year ended 31 December 2015 (in EUR unless otherwise stated) 3. Summary of significant accounting policies (continued) 3.1 Foreign currency transactions (continued) Initial grant amount are maintained at the historical exchange rates. The project translates the undrawn grant balance at the rates in effect on the year end. The exchange rates in effect as at December 31, 2014 and 2013 were as follows: Currency 2015 2014 USD/ XDR 0.72 0.69 XDR /USD 1.39 1.45 EUR /XDR 0.79 0.84 XDR /EUR 1.27 1.19 EUR/ USD 1.09 1.22 3.2 Recognition of income and expenses Income is recognised when received rather than when earned, and expenses are recognised when paid rather than when incurred. 3.3 Taxation The Project is exempt from income Tax, Value Added Tax (VAT) and Custom Duties for the grant part (funding source TF13509), but is subject to both VAT and Customs for the Credit part (Funding source IDA5240). The local employees of the project are liable for personal tax and social security contributions. 4. IDA Credit No. 5240 - XK funding IDA funding is composed as follows: Item Year ended Year ended 31 December 2015 31 December 2014 Reimbursements 82,549.83 506,714.40 Direct payments 242,238.28 320,418.13 Total 324,788.11 827,132.53 Reimbursements represent the IDA funds for cover the payments already made by Government of Kosovo for this project using withdrawal applications prepared by the Project. Direct payments represent amounts paid directly by IDA based on contracts between the Project and contractors. 91 Page Energy Sector Clean-up and Land Reclamation (MESP) Project (IDA Credit No. 5240 - XK; DUTCH Grant No. TF013509) Notes to the Financial Statements for the year ended 31 December 2015 (in EUR unless otherwise stated) 5. DUTCH Grant No. TF013509 funding IDA funding is composed as follows: Item Year ended Year ended 31 December 2015 31 December 2014 Reimbursements 60,987.20 45,721.29 Direct payments 99,810.30 - Total 160,797.50 45,721.29 Reimbursements represent the IDA funds covering the payments already made by Government of Kosovo for this project using withdrawal applications prepared by the Project. Direct payments represent amounts paid directly by IDA based on contracts between the Project and contractors. 6. Temporary advances received by government of Kosovo The temporary advances by Government of Kosovo financing are composed as follows: Year ended Year ended Cumulated till 31 December 2015 31 December 2014 31 December 2015 IDA Credit No. 5240 - XK -Temporary advances received by Government 314,777.06 9,750.45 352,904.65 IDA Grant No. TF 13509 - Temporary advances received by Government (60,987.20) 56,660.86 30,021.47 Total Temporary advances 253,789.86 66,411.31 382,926.12 7. Training Training is detailed as following: Item Year ended Year ended 31 December 2015 31 December 2014 Procurement workshop 2,506.50 - Poland study visit - 30,021.47 Environment Training 9,873.16 2,008.91 Total 12,379.66 32,030.38 8. Goods Expenditures for goods are detailed as follows: Item Year ended Year ended 31 December 2015 31 December 2014 Vehicle - 24,931.00 Total - 24,931.00 101P a g e Energy Sector Clean-up and Land Reclamation (MESP) Project (IDA Credit No. 5240 - XK; DUTCH Grant No. TFO 13509) Notes to the Financial Statements for the year ended 31 December 2015 (in EUR unless otherwise stated) 9. Retroactive R reimbursement Air Quality Monitoring Equipment The amount of 326,492.00 Euros was paid in several payments made by the Ministry of Economic Development in year 2012, under the agreement that it would be later reimbursed by the CLRP - MESP Project because the project was not yet effective. The reimbursement was made in 2014 to the Treasury Account. The Financing Agreement for IDA Credit No. 5240 -XK stipulates under Schedule 2 Implementation Arrangements, Section IV -Withdrawal of the Proceeds of Financing, that "Notwithstandingthe provisions of PartA of this Section, no withdrawal shall be made for payments prior to the date of this Agreement, except that withdrawals up to an aggregate amount not to exceed five hundred sixty thousandSpecial DrawingRights (SDR 560. 000) may be made for payments made prior to this date, but on or after June 1, 2012,for Eligible Expenditures". 10. Consulting services Expenditures for Consultant services are detailed as follows: Item Year ended Year ended 31 December 2015 31 December 2014 PMU project manager 17,580.00 17,580.00 Preparation of TS for Trepca Pump Repair 7,088.10 Financial management specialist 10,800.00 10,800.00 Procurement Specialist 13,200.00 19,618.50 Communications Specialist 12,000.00 11,850.00 Geological and Environmental Expert - 1,060.00 Services for Soil and Water Monitoring Program - 143,960.00 Environmental and Social Impact Assessment 406,514.81 231,099.18 Monitoring Resettlement Action Plan 7,982.62 28,131.20 Panel of Experts ESIA and RAP 13,520.96 11,431.05 Website - 5,110.00 Audit service 1,688.00 1,688.00 Strengthening of review, monitoring and management 80,982.00 8,998.00 function of MESP in the field of energy Low Carbon Growth strategy 140,420.00 - Consulting Services for Capacity Building Program and 18,828.30 51,989.20 Study Tour on Resettlement for the GOK Total 723,516.69 550,403.23 I1 P ag e Energy Sector Clean-up and Land Reclamation (MESP) Project (IDA Credit No. 5240 - XK; DUTCH Grant No. TFO 13509) Notes to the Financial Statements for the year ended 31 December 2015 (in EUR unless otherwise stated) 11. Incremental operating costs Expenditures for Incremental operating costs are detailed as follows: Item Year ended Year ended 31 December 2015 31 December 2015 Mobile phone and postal expenses 822.06 817.65 Advertisements - 150.00 Office supplies 9.99 338.22 Office equipment - 126.00 Printing 11.60 416.60 Fuel 445.00 577.33 Translation - 650.48 Vehicle repair 246.82 698.00 Vehicle insurance 1,160.24 233.46 Business lunches 783.41 1,400.78 Total 3,479.12 5,408.52 12. Expenditures by category components and sources of funds Expenditures by category and sources of financing are composed as follows: Temporary Temporary IDA Credit Grant No. TF advance received advance received Item No, 5240 13509 funding by GOK Credit by GOK Grant Total funding No, 5240 No. TF 13509 Training 2,506.50 - 9,873.16 - 12,379.66 Consultants' services 320,676.83 99,810.30 303,029.56 - 723,516.69 Incremental operating costs 1,604.78 - 1,874.34 - 3,479.12 Total 31.12.2015 324.788.11 99,810.30 314,777.06 - 739,375.47 Total 31.12.2014 827,132.53 45,721.29 9,750.45 56,660.86 939,265.13 12| P a g e Energy Sector Clean-up and Land Reclamation (MESP) Project (IDA Credit No. 5240 - XK; DUTCH Grant No. TFO 13509) Notes to the Financial Statements for the year ended 31 December 2015 (in EUR unless otherwise stated) 13. Expenditures by parts and category: The expenditures by Project Parts are as follows: Retroactive Reimbursemen Incremen Total 31 Parts Training Goods t Air Quality Consultant tal December Monitoring services operating 2015 Monitringcosts Equipment Part D ProjectManagement 12,379.66 53,580.00 3,479.12 69,438.78 HazardousMaterials Part E Clean-tp at the Kosovo A - - - - GasificationSite PartF EnvironmentalMonitoring 570,126.39 - 570,126.39 and Management by MESP part G Repair of Trepea Stan Terg mine Slurry Pump MESP Environmental Part H Monitoringand - - - 99,810.30 - 99,810.30 Management Total 2015 12,739.66 - - 723,516.69 3,479.12 739,375.47 Total 2014 32,030.38 24,931.00 326,492.00 550,403.23 5,408.52 939,265.13 14. Un-drawn grant facilities. The balance of the undrawn grant and funds facilities from DUTCH Grant No. TF 13509 as of 31 December 2015 is EUR 0 (2014: 229,278.71 EUR); The balance of the undrawn Credit and funds facilities from IDA Credit No. 5240 - XK as of 31 December 2015 is XDR 750,632.57 or EUR 955,032.89 (2014: XDR 2,076,424.75 or EUR 2,474,883.75); 15. Court Decision executed by Treasury Department. On August 18, 2015, a payment was executed against the budget amount for the Clean Up and Land Reclamation - MESP Project in the amount of 9,722 Euro. This payment was not initiated by the CLRP Project office nor executed and approved by the Ministry of Environment and Spatial Planning Finance Office. It was later found that the Treasury Department directly executed the claimed amount for a court decision in favor of an economic operator, against the Ministry of Environment and Spatial Planning. This payment is not part of the CLRP - MESP Project expenditure, and therefore it was not included in the present financial statements as CLRP - MESP Project expenditure. 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