“Second Public Employment for Sustainable Agriculture and Water Resources Management Project” Grant No. H823-TJ, Grant No. TF 013997, Grant No. D081-TJ, Credit No. 5697-TJ Special purpose project financial statements for the year ended December 31, 2016 and independent auditors’ report “SECOND PUBLIC EMPLOYMENT FOR SUSTAINABLE AGRICULTURE AND WATER RESOURCES MANAGEMENT PROJECT” GRANT NO. H823-TJ, GRANT NO. TF 013997, GRANT NO. D081-TJ, CREDIT NO. 5697-TJ TABLE OF CONTENTS Page STATEMENT OF MANAGEMENT’S RESPONSIBILITIES FOR THE PREPARATION AND APPROVAL OF THE SPECIAL PURPOSE PROJECT FINANCIAL STATEMENTS 2 FOR THE YEAR ENDED DECEMBER 31, 2016 INDEPENDENT AUDITORS’ REPORT 3-5 SPECIAL PURPOSE PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016: Statement of cash proceeds and disbursements 6 Statement of uses of funds by project components 7 Notes to the special purpose project financial statements 8-21 STATEMENT OF MANAGEMENT'S RESPONSIBILITIESFORTHEPREPARATIONAND APPROVAL OF THESPECIAL PURPOSE PROJECTFINANCIAL STATEMENTS F O RT H EY E A RE N D E D 3 1 .2 0 1 6 DECEMBER Thefollowingstatement, which shouldbe readin conjunction with the independent auditors'responsibilities statedin the independent auditors'report set out on pages3-5, is made with a view to distinguish the respectiveresponsibilitiesof management and those of the independent auditorsin relation to the special purpose project financial statementsof the Project"SecondPublic Employmentfor Sustainable Agriculture andWaterResourcesManagementProject", GrantNo. H823-TJ, GrantNo,TF 013997, GrantNo.D081-TJ, CreditNo. 5697-TJ (the"Project"). Management for the preparation is responsible of the specialpurpose that present projectfinancial statements fairly, in all materialrespects,cashproceeds anddisbursements andusesof fundsby projectcomponents of theProjectfor the yearended December 31,2016in accordance PublicSector with International Accounting Standard"Financial Reporting Under the Cash Basis of Accounting" (the "IPSAS") issued by the InternationalPublic Accounting Standards Board ofthe InternationalFederationof Accountantsand the World Bank'sFinancial Management SectorBoard's"Guidelines: AnnualFinancial ReporlingandAuditing for World Bank Financed Activities" (the"WB Guidelines"). In preparing projectfinancialstatements, purpose the special management for: is responsible . selectingsuitableaccountingpoliciesand applyingthemconsistently; . makingjudgmentsand estimates that are reasonableand prudent; . stating whether IPSAS and WB Guidelineshave been followed, subject to any material departures disclosedand explainedin the special purpose projectfinancialstatements; and . preparingthe special purposeproject financial statements on a going concem basis, unlessit is inappropriateto presumethat the Projectwill continueits activity for the foreseeable future. Management for: is alsoresponsible . designing, implementingandmaintainingeffectiveandsoundsystemof internalcontrolandfor revealing risks in systemof internal control; r maintainingproper accounting recordsthat disclose,with reasonableaccuracyat anytime, the financial position of the Project,and which enablethem to ensurethat the specialpurposeproject financial statements of the Projectcomplywith IPSASand WB Guidelines; . compliance with lawsandregulations of the Republicof Tajikistan, accountingsystem of theProject and the requirements of the World Bank; r takingsuchsteps as arereasonably availableto themto safeguard ofthe Project;and the assets r detectingand preventingfraud and other irregularities. urpose for the yearendedDecember projectfinancialstatements and 31,2016were approved issueon May 5,201'7by the management of the Project. of the Management: S. Karimzoda Yu. Narzul Director Chief accountant May 5,2017 May 5,2077 Dushanbe, Republicof Tajikistan Dushanbe, Republicof Tajikistan ..SECONDPUBLIC EMPLOYMENTFOR SUSTAINABLEAGRICULTUREAND WATER RESOURCES MANAG EMENTPROJECT'' GRANTNO. H823.TJ. GRANTNO. DO81.TJ. GRANTNO.TF 013997. CREDITNO.5697.TJ STATEMENT OFCASH ANDDISBURSEMENTS PROCEEDS FOR THEYEAR DECEMBER ENDED 31,2016 (inUSDollarsl Notes For the year Cumulative For the year Cumulative ended ended (restated) December 3L, December 31, 2016 201 5 (restated) Openingbalance 2,387,458 2 , 0 1 1 ,t3 0 Funds received IDA GrantNo. H823-TJ 5,869,395 13,325,504 3,796,305 7,456,109 GPAFSGrantNo. TF 013997 6,723,033 19,671,309 6,797,662 12,948,275 IDA GrANtNO.DO8I-TJ 1 , 6 1 038 ,3 I , 61 0 , 3 3 8 Total funds received 14,202,766 34,607,150 10,593,967 20,404,384 Otherincome A O)q 31,074 ) 141 27,045 Total receipts 14,206,795 34,638,224 10,596,7t4 20,431,429 Projectexpenses Worksunderpart A o 9,569,081 2l,719,863 6,667,886 t2,150,782 Goods, non-consulting services,andconsultancy sQrvlces b 3,706,980 85 8,161, 9 2,420,678 4,454,609 Works underpart B and training t) 681,053 7,559,770 867,211 878,717 Operating costs t) 301,083 834,709 )\\ \)7 533,626 Total projectexpenses 14,258,197 32,275,931 10,211,302 18,0r7,734 Non-operating 2,887 28,800 q oq7 25,913 expenses Foreignexchange rates differences 9,858 10,182 167 JZ+ Closingbalance 5 2,323,371 2,323,311 2,387,458 2,387,458 On behalf of the Manaqement: S. Karimzoda Chief accountant May 5,2017 of Tajikistan Dushanbe, Republicof Tajikistan form an integral part ofthe specialpurposeproject financial statements. Auditors' Report The Tndependent .,SECONDPUBLIC EMPLOYMENTFOR SUSTAINABLEAGRICULTUREAND WATER RESOURCES MANAGEMENT PROJECT'' GRANTNO. H823.TJ, CREDIT GRANTNO. DO81.TJ, GRANTNO.TF 013997, NO.5697.TJ OFFUNDS STATEMENT COMPONENTS BY PROJECT FORTHEYEAR DECEMBER ENDED 31,2016 lin l19 Dnllarcl For the year Cumulative For the year Cumulative ended ended (restated) December 31, December 31, 2016 2015 (restated) Component I. Generationof employment andrehabilitationof irrigationand drainageinfrastructure 11,704,942 26,668,136 8,347,620 t4,963,194 Component II. Assistancein water resource management, including technical assistancefor policy and institutionalreform 1,966,651 3,792,999 1,926,347 Component III. Project implementation 586,604 1,814,797 1,228,193 14,258,197 32,275,931 18,017,734 On behalfof the Management: Chief accountant M a y5 , 2 0 1 7 ic of Tajikistan Dushanbe, Republicof Tajikistan I fonn an integral part ofthe special purpose project financial statements. The Independent Auditors' Report “SECOND PUBLIC EMPLOYMENT FOR SUSTAINABLE AGRICULTURE AND WATER RESOURCES MANAGEMENT PROJECT” GRANT NO. H823-TJ, GRANT NO. TF 013997, GRANT NO. D081-TJ, CREDIT NO. 5697-TJ NOTES TO THE SPECIAL PURPOSE PROJECT FINANCIAL STATEMENTS FOR THE УEAR ENDED DECEMBER 31, 2016 (in US Dollars) 1. GENERAL INFORMATION According to the Agreement between the Republic of Tajikistan and International Development Association (the “IDA”) dated February 5, 2013, the IDA provided a Grant No. H823-TJ in the amount of Special Drawing Rights (the “SDR”) 11,700,000 to the Republic of Tajikistan. In accordance with the Agreement between the Republic of Tajikistan and the Global Agriculture and Food Security Multi- Donor Trust Fund (the “GPAFS”) dated February 5, 2013, GPAFS Trust Fund provided Grant No. TF 013997 in the amount of 27,900,000 US Dollars to the Republic of Tajikistan. According to the Agreement between the Republic of Tajikistan and International Development Association (the “IDA”) dated August 7, 2015, the IDA provided a Grant No. D081-TJ in the amount of Special Drawing Rights (the “SDR”) 3,900,000 to the Republic of Tajikistan. According to the Agreement between the Republic of Tajikistan and International Development Association (the “IDA”) dated August 7, 2015, the IDA provided a Credit No. 5697-TJ in the amount of Special Drawing Rights (the “SDR”) 4,700,000 to the Republic of Tajikistan. The Grants and the Credit were provided for implementation of the “Second Public Employment for Sustainable Agriculture and Water Resources Management Project” (the “Project”). Project purpose The objective of the Project is to improve food security:  In the short-run – by creation of temporary workplaces;  In the mid-run – by increasing crop production and farmers’ income due to the rehabilitation of the irrigation and drainage infrastructure;  In the long-run – by increasing the efficiency of water resources management. Initially the Project had to be implemented during 2013-2018, however in accordance to amendment to financing agreements No.H823-TJ and TF 013997 and the financing agreements No. D081-TJ and No. 5697-TJ the closing date of the Project was extended until February 28, 2020. The Project was also restructured in response to the devastating floods in the region of Gorno-Badakhshan Autonomous Oblast based on the proposal of the Government of the Republic of Tajikistan. The Project comprises 3 components: 1. Component I: Public works and rehabilitation of irrigation and drainage infrastructure; 2. Component II: Technical assistance for the purpose of Improvement of the Strategy and Implementation of Institutional reform in the sphere of Water Resources Management; 3. Component III: Project implementation. Component I: Public works and rehabilitation of irrigation and drainage infrastructure. This component consists of 3 subcomponents: Subcomponent Ia: This subcomponent finances creation of short-term employment for renovating and rehabilitating оn- fаrm irrigation canals in areas with food insecurity and the provision of equipment . This subcomponent finances manual cleaning of secondary and tertiary irrigation canals in fourteen districts of Khatlon region (A. Djomi, Dj. Rumi, Djilikul, Vose, Khuroson, N.Khusrav, MSA Khamadoni, Javon, Pyandj, Qabodiyon, Shahritus, Vakhsh, Qumsangir, and Dangara) and three districts of Republican Subordination (Vahdat, Rudaki and Hissar). Additional costs include payment of taxes which are 8 withheld from the employer to the social security fund (25% of salary), as well as procurement and allocation of instruments of labor to perform manual works, materials and services. Subcomponent Ib: This subcomponent finances the lease or procurement of machinery and equipment (excavators, bulldozers and equipment for subsurface drainage), the procurement and installation of an irrigation flow regulating valves, the reconstruction of buildings, repair of water supply systems, pumping stations, and vertical drainage and wells, mechanical clearing of collector and drainage network. Subcomponent Ic: This subcomponent finances the emergency restoration works of flood channel, which flows through the city of Kulyab and protects it from floods, and reduces the associated risks for agricultural land and irrigation systems, and emergency works on Pyanj river right bank in Hamadoni district and Gund river left bank in Shughnon district. Component II: Assistance in water resources management, including Technical assistance in implementation of Legislative and Institutional Reform. This component includes the following subcomponents: Subcomponent IIa: This subcomponent finances all activities associated with further improvement of the regulatory framework to introduce the integrated water resources management system and promote reforms in the water sector. It focuses on further development of the legal basis for integrated water resource management and water sector reform, preparation of a national integrated water resource management strategy to identify priorities for improving water resource management in Tajikistan and establishing a national water information system. Subcomponent IIb: This subcomponent finances provision of technical assistance and training to implement river basin management in Kafernigan river basin. Subcomponent IIc: The Project will help the Government of Republic of Tajikistan to form autonomous, financially independent entities – suppliers of hydrotechnical melioration services, responsible for management of interfarm hydrotechnical assets and water supply to Water consumers association; transform existing regional and district institutions into the new institutional units; and building and strengthening the capacity of Water consumers association. Component III: Project implementation This component ensures support in establishment and activities of Project Management Unit (PMU) in Dushanbe and regional Project Coordination Unit (PCU) in Kurgan-Tube city and the region of Rudaki. Project management The Project is implemented by Fergana Valley Water Resource Management Project Management Unit (the “PMU”) that has the status of a legal entity and was established based on the Regulation of the Government of the Republic of Tajikistan. Duration of the Project is from February 5, 2013 to February 28, 2020. 9 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 International Public Sector Accounting Standard (the “IPSAS”) “Financial Reporting under the Cash Basis of Accounting” issued by the Public Sector Committee of the Inter national Federation of Accountants, and incorporate the following principal accounting policies, which have been consistently followed in all material respects and comply with the World Bank’s Financial Management Sector Board’s “Guidelines: Annual Financial Reporting and Auditing for World Bank Financed Activities” (the “WB Guidelines”). Under the cash basis approach income (or expenditure) is recognized when cash is received (or paid) irrespective of when goods or services are received or provided. The Project’s approved budget disclosed by categories of expenses is not publicly available and as such comparison of budget and actual amounts is not presented. These special purpose project financial statements consist of:  Statement of cash proceeds and disbursements;  Statement of uses of funds by project components;  Notes to the special purpose project financial statements, including short description of main statements of accounting policy and other descriptive notes. The reporting currency of these special purpose project financial statements is US Dollars (the “USD”). 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Cash basis of accounting The special purpose project financial statements are prepared on a cash basis of accounting. The cash basis of accounting recognizes transactions and events only when cash (including cash equivalents) is received or paid by the Project. The special purpose project financial statements prepared under the cash basis provide readers with information about the sources of cash raised during the period, the purposes for which cash was used and the cash balances at the reporting date. The measurement focus in the special purpose project financial statements is balances of cash and changes therein. Foreign currency Operations in foreign currency initially are counted in functional currency by the official currency exchange rate settled by the National Bank of Tajikistan (the “NBT”) on a date of operation. Funds received are translated into USD at official exchange rate of Special Drawing Rights (the “SDR”) at the date of funds receipt. All payments made in local currency are translated into USD at the official exchange rate defined by National Bank of Tajikistan, at the date of transaction. Monetary assets and liabilities expressed in foreign currency are converted to functional currency at official exchange rate on a date settled by the NBT. All foreign exchange differences resulted from maturity or recounting are included in statement of cash proceeds and disbursements. Non-monetary items are valued according to their historic cost in foreign currency, which are recalculated on rates of the initial operation date. 10 Cash and cash equivalents Cash and cash equivalents include cash on hand and due from banks, which can be converted to the corresponding amount of cash in the short term. Taxes Calculation and payment of personal income tax and social security contributions from income of local staff and consultants is made in accordance with the requirements and rates of the Tax Code of the Republic of Tajikistan. Project expenses The expenses are recorded in the period when they were actually paid. Sources of funds The funds were provided by the World Bank to the Project by replenishment of special account. 4. PRIOR PERIOD RECLASSIFICATION In 2016 the Project made retrospective reclassifications to the special purpose financial statements for the years ended December 31, 2015, 2014 and 2013 due to corrections of costs for consultants, goods and services between components and categories of the Project expenses. Comparative amount in the previous periods have been adjusted. Effect of changes to the special purpose project financial statements for the years ended December 31, 2015, 2014 and 2013 is presented below: As previously reported Reclassified As reclassified amount Statement of cash proceeds and disbursements: For the year Cumulative For the year Cumulative ended ended December 31, December 31, 2015 2015 Works under part А 6,568,419 12,051,315 99,467 6,667,886 12,150,782 Goods, non- consulting services, and consultancy services 2,558,216 4,592,147 (137,538) 2,420,678 4,454,609 Works under part B and trainings 829,140 840,646 38,071 867,211 878,717 Statement of funds by project components: For the year Cumulative For the year Cumulative ended ended December 31, December 31, 2015 2015 Component I. 8,334,139 14,966,378 13,481 8,347,620 14,963,194 Component II. 1,280,685 1,774,190 34,163 1,314,848 1,826,347 Component III. 596,478 1,277,166 (47,644) 548,834 1,228,193 11 For the year Cumulative For the year Cumulative ended ended December 31, December 31, 2014 2014 Component I. 5,785,619 6,632,239 (11,730) 5,773,889 6,615,574 Component II. 442,438 493,505 15,471 457,909 511,499 Component III. 522,517 680,688 (3,741) 518,776 679,359 For the year Cumulative For the year Cumulative ended ended December December 31, 31, 2013 2013 Component I. 846,620 846,620 (4,935) 841,685 841,685 Component II. 51,067 51,067 2,523 53,590 53,590 Component III. 158,171 158,171 2,412 160,583 160,583 5. CASH AND CASH EQUIVALENTS Cash and cash equivalents as at December 31, 2016 and 2015 comprise: December 31, December 31, 2016 2015 (restated) Special account - Grant No. TF 013997 1,196,059 1,412,827 Special account - Grant No. H823-TJ 780,688 972,631 Special account - Grant No. D081-TJ 318,947 - Transit account - Grant No. H823-TJ 20,956 16 Transit account - Grant No. TF 013997 2,388 22 Cash on hand - Grant No. H823-TJ 236 60 Cash on hand - Grant No. TF 013997 131 88 Transit account - Grant No. D081-TJ 12 - Tender accounts 3,890 1,808 Account for interest accrued 4 6 2,323,311 2,387,458 12 6. CUMULATIVE PROJECT EXPENDITURES Project expenditures by components are presented in the statement of funds by project components. Project expenditures on major categories are presented in the statement of cash proceeds and disbursements. Breakdown of project expenses by categories and nature is presented as follows: Works under part A For the year ended December 31, 2016 Cumulative For the year ended December 31, 2015 Cumulative (restated) (restated) Grant Grant Grant Grant Grant Grant Grant Grant Grant Grant Grant Grant No. No. TF No. No. No. TF No. No. No. TF No. No. No. TF No. H823-TJ 013997 D081-TJ H823-TJ 013997 D081-TJ H823-TJ 013997 D081-TJ H823-TJ 013997 D081-TJ Mechanized works 1,948,240 2,116,166 - 6,220,233 6,420,744 - 2,219,473 2,245,731 - 4,271,993 4,304,578 - Hand works - 1,105,728 683,067 - 4,679,939 683,067 - 2,202,682 - - 3,574,211 - Restoration works of flood channel - Tebalai river 2,666,029 1,049,851 - 2,666,029 1,049,851 - - - - - - - 4,614,269 4,271,745 683,067 8,886,262 12,150,534 683,067 2,219,473 4,448,413 - 4,271,993 7,878,789 - Works under part B and trainings For the year ended December 31, 2016 Cumulative For the year ended December 31, 2015 Cumulative (restated) (restated) Grant Grant Grant Grant Grant Grant Grant Grant Grant Grant Grant Grant No. No. TF No. No. No. TF No. No. No. TF No. No. No. TF No. H823-TJ 013997 D081-TJ H823-TJ 013997 D081-TJ H823-TJ 013997 D081-TJ H823-TJ 013997 D081-TJ Construction of administrative offices of water users associations 225,157 225,322 214,635 593,006 593,178 214,635 367,849 367,856 - 367,849 367,856 - Trainings 7,170 8,769 - 66,082 92,869 - 53,015 78,491 - 58,912 84,100 - 232,327 234,091 214,635 659,088 686,047 214,635 420,864 446,347 - 426,761 451,956 - 13 Goods, non-consulting services, and consultancy services For the year ended December 31, 2016 Cumulative For the year ended December 31, 2015 Cumulative (restated) (restated) Grant Grant Grant Grant Grant Grant Grant Grant Grant Grant Grant Grant No. No. TF No. No. No. TF No. No. No. TF No. No. No. TF No. H823-TJ 013997 D081-TJ H823-TJ 013997 D081-TJ H823-TJ 013997 D081-TJ H823-TJ 013997 D081-TJ Consultancy services 408,138 689,384 388,592 938,109 1,486,295 388,592 232,720 350,387 - 529,971 796,911 - Services 406,037 747,821 24,343 1,253,968 2,020,029 24,343 463,943 696,479 - 847,931 1,272,208 - Fuel 247,758 396,295 - 247,758 396,295 - - - - - - - Payroll and related taxes 84,806 144,024 - 215,463 343,289 - 91,256 139,852 - 130,657 199,265 - Purchase of fixed assets 52,066 89,097 - 240,405 448,413 - 163,262 244,803 - 188,339 359,316 - Bank fees 6,998 11,733 - 31,380 48,944 - 15,172 22,802 - 24,382 37,211 - Other 4,022 5,866 - 31,391 46,915 - 2 - - 27,369 41,049 - 1,209,825 2,084,220 412,935 2,958,474 4,790,180 412,935 966,355 1,454,323 - 1,748,649 2,705,960 - Operating costs For the year ended December 31, 2016 Cumulative For the year ended December 31, 2015 Cumulative (Restated) (restated) Grant Grant Grant Grant Grant Grant Grant Grant Grant Grant Grant Grant No. No. TF No. No. No. TF No. No. No. TF No. No. No. TF No. H823-TJ 013997 D081-TJ H823-TJ 013997 D081-TJ H823-TJ 013997 D081-TJ H823-TJ 013997 D081-TJ Payroll and related taxes - 195,560 - - 493,907 - - 165,937 - - 298,347 - Fuel and maintenance of vehicles - 37,331 - - 105,103 - - 22,409 - - 67,772 - Business trips - 19,687 - - 45,048 - - 17,263 - - 25,361 - Stationery - 7,984 - - 22,241 - - 9,103 - - 14,257 - Communication - 5,243 - - 18,893 - - 6,928 - - 13,650 - Utilities - 4,587 - - 13,138 - - 5,053 - - 8,551 - Bank fees - 3,308 2,271 - 9,028 2,271 - 2,508 - - 5,720 - Purchase of computer equipment - 3,216 - - 13,949 - - 3,626 - - 10,733 - Repair and maintenance - 1,330 - - 49,694 - - 8,203 - - 48,364 - Other - 20,566 - - 61,437 - - 14,497 - - 40,871 - - 298,812 2,271 - 832,438 2,271 - 255,527 - - 533,626 - 14 7. FUNDS RECEIVED The funds received were presented by the following reimbursement methods: For the year ended December 31, 2016 Financing method / Grant No. Grant No. Grant No. Total sources of financing: H823-TJ TF 013997 D081-TJ Advances - - 1,000,000 1,000,000 Reimbursement of expenses 5,869,395 6,723,033 610,338 13,202,766 5,869,395 6,723,033 1,610,338 14,202,766 Cumulative Financing method / Grant No. Grant No. Grant No. Total sources of financing: H823-TJ TF 013997 D081-TJ Advances 1,200,000 1,800,000 1,000,000 4,000,000 Reimbursement of expenses 12,125,504 17,871,308 610,338 30,607,150 13,325,504 19,671,308 1,610,338 34,607,150 For the year ended December 31, 2015 (restated) Financing method / Grant No. Grant No. Grant No. Total sources of financing: H823-TJ TF 013997 D081-TJ Reimbursement of expenses 3,796,305 6,797,662 - 10,593,967 3,796,305 6,797,662 - 10,593,967 Cumulative (restated) Financing method / Grant No. Grant No. Grant No. Total sources of financing: H823-TJ TF 013997 D081-TJ Advances 1,200,000 1,800,000 - 3,000,000 Reimbursement of expenses 6,256,109 11,148,275 - 17,404,384 7,456,109 12,948,275 - 20,404,384 8. FINANCIAL POSITION Financial position as at December 31, 2016 and 2015 comprise: December 31, December 31, 2016 2015 (restated) ASSETS AND EXPENDITURES Cash and cash equivalents 2,323,311 2,387,458 Cumulative project expenditures 32,275,931 18,017,734 Other expenditures 28,800 25,913 Foreign exchange difference 10,182 324 TOTAL ASSETS AND EXPENDITURES 34,638,224 20,431,429 FINANCING Funds received 34,607,150 20,404,384 Other income 31,074 27,045 TOTAL FINANCING 34,638,224 20,431,429 15 9. WITHDRAWAL APPLICATIONS Withdrawal applications for the year ended December 31, 2016 comprise: Sources Application Date Advance Goods and Total of services, financing including audit, trainings and operating expenses Grant No. H823-TJ 16 March 15, 2016 - 160,439 160,439 17 March 25, 2016 - 381,456 381,456 18 April 26, 2016 - 621,283 621,283 19 May 20, 2016 - 570,093 570,093 20 June 24, 2016 - 649,719 649,719 21 July 25, 2016 - 620,212 620,212 22 August 25, 2016 - 641,158 641,158 23 September 20, 2016 - 465,868 465,868 24 October 27, 2016 - 611,887 611,887 25 November 21, 2016 - 567,427 567,427 26 December 22, 2016 - 579,853 579,853 - 5,869,395 5,869,395 Grant No. TF13997 16 March 15, 2016 - 386,743 386,743 17 March 25, 2016 - 818,520 818,520 18 April 25, 2016 - 922,041 922,041 19 May 31, 2016 - 1,072,167 1,072,167 20 June 24, 2016 - 415,620 415,620 21 July 25, 2016 - 440,435 440,435 22 August 25, 2016 - 527,775 527,775 23 September 20, 2016 - 392,862 392,862 24 October 27, 2016 - 547,621 547,621 25 November 21, 2016 - 544,001 544,001 26 December 22, 2016 - 655,248 655,248 - 6,723,033 6,723,033 Grant No. D081-TJ 1 March 9, 2016 450,000 - 450,000 2 March 31, 2016 550,000 - 550,000 3 April 25, 2016 - 318,398 318,398 4 May 23, 2016 - 291,940 291,940 1,000,000 610,338 1,610,338 1,000,000 13,202,766 14,202,766 16 10. SPECIAL ACCOUNT Special account for the year ended December 31, 2016 comprise: Special accounts Grant No. H823-TJ Grant No. TF 013997 Grant No. H823-TJ Grant No. TF 013997 Grant No. D081-TJ Currency US Dollars US Dollars US Dollars US Dollars US Dollars Bank account 20206840600000401325 20206840500000501325 20202840201009101000 20206840301061101000 20206840601010101000 Bank OJSC “Tojiksodirotbank” OJSC “Tojiksodirotbank” SSB of RT “Amonatbonk” SSB of RT “Amonatbonk” SSB of RT “Amonatbonk” Bank’s location 47 Bekhzod str., Dushanbe, 734013, Tajikistan 24 Lokhuti str., Dushanbe, 734013, Tajikistan Description US Dollars US Dollars US Dollars US Dollars US Dollars Total Balance as at January 1, 2016 972,631 1,412,827 - - - 2,385,458 Advances received - - - - 1,000,000 1,000,000 Reimbursement of expenses - - 5,869,395 6,723,033 610,338 13,202,766 Total funds received to a special account - - 5,869,395 6,723,033 1,610,338 14,202,766 The amount of expenditures paid 96,560 154,827 104,992 184,136 - 540,515 Transfer between accounts 387,924 954,007 5,471,862 5,646,831 1,291,391 13,752,015 Balance as at December 31, 2016 488,147 303,993 292,541 892,066 318,947 2,295,694 17 11. UNDRAWN FUNDS For the year ended December 31, 2016 undrawn funds with breakdown are presented as follows: Grant No. Grant No. Grant No. Credit No. H823-TJ TF 013997 D081-TJ 5697-TJ in SDR in USD in SDR in SDR Approved grant amount 11,700,000 27,900,000 3,900,000 4,700,000 Disbursed in 2013 910,717 2,121,599 - - Disbursed in 2014 1,496,493 4,029,014 - - Disbursed in 2015 2,728,627 6,797,662 - - Disbursed in 2016 4,235,142 6,723,033 1,148,542 - Undrawn amount 2,329,021 8,228,692 2,751,458 4,700,000 Grant No. Grant No. Grant No. Credit No. H823-TJ TF13997 D081-TJ 5697-TJ in USD in USD in USD in USD Opening disbursed amount 7,456,109 12,948,275 - - Disbursed in 2016 5,869,395 6,723,033 1,610,338 - Closing disbursed amount 13,325,504 19,671,308 1,610,338 - 18 12. COMMITMENTS In the normal course of activities, the Project concludes agreements with suppliers of goods and services in accordance with the established budget and procurement plan. As at December 31, 2016 the Project had following commitments: Counterparty Contract # Currency Contract Paid up to Remaining value December 31, amount to be 2016 paid LLC “Faizbakhsh D” PAMP II-NCB-046 Tajik somoni 4,389,455 877,891 3,511,564 LLC “Obi dekhot” PAMP II-NCB-101 Tajik somoni 5,165,980 2,002,475 3,163,505 LLC “Sozanda 2014” PAMP II-NCB-097 Tajik somoni 5,001,319 2,625,073 2,376,246 LLC “Shabruz” PAMP II-SHW-089 Tajik somoni 1,986,584 397,317 1,589,267 LLC “Terai 21” PAMP II-CQS-036 Tajik somoni 1,842,671 299,784 1,542,887 LLC “Shaikh Khusein” PAMPII-SHW-100 Tajik somoni 1,564,743 329,592 1,235,151 LLC “Khshin” PAMP II-NCB-048 Tajik somoni 7,295,292 6,130,662 1,164,630 OJSC “Ob sohtmon” PAMP II-NCB-070 Tajik somoni 1,962,501 947,174 1,015,327 LLC “Shafof” PAMP II-SHW-081 Tajik somoni 1,563,496 555,081 1,008,415 LLC “Anas Sohtmon” PAMP II-SHG-012 Tajik somoni 970,229 - 970,229 LLC “Sobir-Sam” PAMP II-NCB-047 Tajik somoni 6,894,541 5,934,761 959,780 LLC “Oyanda Sohtmon-2015” PAMP II-SHW-099 Tajik somoni 1,528,456 684,007 844,449 LLC “Bunyod Loikha” PAMP II-CQS-034А Tajik somoni 940,217 235,054 705,163 LLC “Bunyod Sohtmon” PAMP II-NCB-066 Tajik somoni 1,064,948 373,538 691,410 LLC “Sputnik 2015” PAMP II-SHG-027 Tajik somoni 534,992 - 534,992 LLC “Zumrut” PAMPII-NCB-098 Tajik somoni 4,828,214 4,310,213 518,001 LLC “Bunyod Loikha” PAMP II-SSS-005 Tajik somoni 452,840 - 452,840 LLC “Rizo 2011” PAMPII-SHW-098 Tajik somoni 1,480,291 1,101,078 379,213 LLC “Prioritet” PAMP II-SHW-086 Tajik somoni 950,514 619,368 331,146 LLC “Bunyodi Istiklol” PAMP II-NCB-079 Tajik somoni 1,886,824 1,649,447 237,377 LLC “Badakhshonrokh International” PAMP II-NCB-094 Tajik somoni 2,271,211 2,044,090 227,121 LLC “Inkishof 2013” PAMP II-SHW-078 Tajik somoni 670,798 463,787 207,011 LLC “Terai 21” PAMP II-CQS-037 Tajik somoni 1,075,800 870,230 205,570 LLC “Sharif ShS” PAMP II-NCB-095 Tajik somoni 2,034,593 1,831,134 203,459 LLC “Interproject” PAMP II-SSS-004 Tajik somoni 197,940 - 197,940 OJSC “Obrason” PAMP II-NCB-100 Tajik somoni 1,854,206 1,668,785 185,421 LLC “Duraksh” PAMP II-NCB-078 Tajik somoni 1,593,239 1,433,915 159,324 Branch of LLC “M-Vector” in the Republic of Tajikistan PAMP II -CQS-045 Tajik somoni 133,574 44,525 89,049 LLC “Khudoyor” PAMP II-SHW-082 Tajik somoni 760,148 696,432 63,716 LLC “Oyanda Sohtmon-2015” PAMP II-SHW-077 Tajik somoni 781,220 742,159 39,061 LLC “Muiraki” PAMP II-SHW-071 Tajik somoni 780,290 741,276 39,014 LLC “Sozanda 2015” PAMP II-SHW-079 Tajik somoni 776,488 737,664 38,824 LLC “Tichorat 16” PAMP II-SHW-080 Tajik somoni 775,082 736,328 38,754 LLC “Sozanda 2015” PAMP II-SHW-074 Tajik somoni 758,000 720,100 37,900 LLC “Dorstroi Invest” PAMP II-SHW-076 Tajik somoni 570,101 541,596 28,505 LLC “Dilofruz” PAMP II-SHW-066 Tajik somoni 458,274 435,361 22,913 LLC “Isk” PAMP II-NCB-085 US dollar 742,700 183,418 559,282 LLC “Kudrati Rudaki” PAMP II-NCB-087 US dollar 407,092 - 407,092 Public organization “Amon” PAMP II-SSS-003 US dollar 179,864 26,980 152,884 Public organization “Itochnik zhizni” PAMPII-SSS-002 US dollar 173,600 26,040 147,560 Public organization “Markazi tashabbusi chomeavii” – “Vasl” PAMP II-CQS-043 US dollar 128,850 24,830 104,020 LLC “Obi dekhot” PAMP II-NCB-086 US dollar 316,374 244,475 71,899 LLC “Kudrati Rudaki” PAMP II-NCB-082 US dollar 518,961 459,695 59,266 19 Counterparty Contract # Currency Contract Paid up to Remaining value December 31, amount to be 2016 paid Public organization “Rukhafzo” PAMP II-CQS-047 US dollar 64,859 20,112 44,747 Public organization “Marifat” PAMP II-СQS-046 US dollar 56,856 20,548 36,308 LLC “Loiha va kadastri zamin” PAMP II-CQS-042 US dollar 233,351 198,476 34,875 Kholmatov Matin PAMP II-IC-INT-012 US dollar 41,050 14,624 26,426 LLC “Kamrok Interneshnl” PAMP II-NCB-G001 US dollar 664,054 644,054 20,000 Water users association PAMP II-SHW-SG- “Panchrud” WUA-004/5 US dollar 4,554 4,093 461 Water users association PAMP II-SHW-SG- “Istiklol-2010” WUA-004/1 US dollar 4,554 4,093 461 Water users association PAMP II-SHW-SG- “Obchakoron” WUA-005/1 US dollar 4,554 4,093 461 Water users association PAMP II-SHW-SG- “Gairat” WUA-004/4 US dollar 4,554 4,098 456 Water users association PAMP II-SHW-SG- “Chaikhun” WUA-004/6 US dollar 4,554 4,098 456 Water users association PAMP II-SHW-SG- “Shabnam” WUA-004/2 US dollar 4,554 4,098 456 Water users association PAMP II-SHW-SG- “Chubek-13” WUA-006/01 US dollar 4,554 4,098 456 Water users association PAMP II-SHW-SG- “Khushob” WUA-002/01 US dollar 4,554 4,098 456 Water users association PAMP II-SHW-SG- “Khazorchashma-RK” WUA-005/02 US dollar 4,554 4,098 456 Water users association PAMP II-SHW-SG- “Zarnisof-F” WUA-005/03 US dollar 4,554 4,098 456 Water users association PAMP II-SHW-SG- “Chashmai Zulol” WUA-005/04 US dollar 4,554 4,098 456 Water users association PAMP II-SHW-SG- “Nakhri Dusti” WUA-005/05 US dollar 4,554 4,098 456 Water users association PAMP II-SHW-SG- “Korvon 2014” WUA-007/03 US dollar 4,554 4,098 456 Water users association PAMP II-SHW-SG- “Mekhnatobod-1” WUA-006/03 US dollar 4,554 4,098 456 Water users association PAMP II-SHW-SG- “Sairob-1” WUA-006/02 US dollar 4,554 4,098 456 Water users association PAMP II-SHW-SG- “Chashma” WUA-007/02 US dollar 4,554 4,098 456 Water users association PAMP II-SHW-SG- “Saikhun” WUA-007/01 US dollar 4,554 4,098 456 Water users association PAMP II-SHW-SG- “Mekhnati Sof” WUA-004/7 US dollar 4,554 4,098 456 Water users association PAMP II-SHW-SG- “Beshkent” WUA-007/04 US dollar 4,554 4,098 456 Water users association PAMP II-SHW-SG- “Khurramzamin” WUA-008/01 US dollar 4,554 4,098 456 Water users association PAMP II-SHW-SG- “Samarkandi” WUA-003/02 US dollar 4,554 4,120 434 Water users association PAMP II-SHW-SG- “Manbai Khayot” WUA-003/03 US dollar 4,554 4,120 434 20 13. LEGAL CASES There were no any legal cases related to the Project. 14. EVENTS AFTER THE REPORTING DATE During 2017 until the date of issue of these special purpose project financial statements, the World Bank has replenished the special account of the Project as follows: Date Application Grant No. Grant No. Grant No. H823-TJ TF 013997 D081-TJ in USD in USD in USD Reimbursement of expenses January 26, 2017 27 356,716 598,163 - February 23, 2017 28 603,529 724,685 - March 27, 2017 29 421,829 768,027 - April 28, 2017 30 537,565 409,248 - January 30, 2017 5 - - 678,378 March 9, 2017 6 - - 277,410 March 28, 2017 7 - - 325,300 April 28, 2017 8 - - 251,703 1,919,639 2,500,123 1,532,791 As at the date of issue of the special purpose project financial statements no other significant events or transactions occurred which should be disclosed in the special purpose project financial statements. 21