Hubei Provincial Audit Office of the People's Republic of China Audit Report W*L$ # C 2020) 46 - HB AUDIT REPORT C 2020) NO.46 Project Name: Hubei Yichang Three Gorges Modem Logistics Center Infrastructure Project Financed by the World Bank t t: 8766-CN Loan No.: 8766-CN Project Entity: Yichang Transportation Investment Co., Ltd :t 2019 Accounting Year: 2019 { 目录 :Contents 一、审计师意见．.................................．……，,.....................．……，..........．……1 1 .Auditor&5 Opinion ..................................................................．···········……3 二、财务报表及财务报表附注．.................................................．……，．……5 11 .Financial Statements and Notes to the Financial Statements.........．……5 （一）资金平衡表．...............................................................．……，.,.．…5 1 .Balance Sheet ..............................................................................．……5 （二）项目进度表．.......................................．……，........................．……7 11.Summary of Sources and Uses ofFunds by Project Component.．…7 （三）贷款协定执行情况表．.....................．……，........................．……10 111.Statement oflmplementation ofLoanAgreement.................．……10 （四）专用账户报表．................．……，.........................................．……11 iv.Speeial Accouni Statement ......................................................．……11 （五）财务报表附注．.................................................................．……13 v.Notes to the Financial Statements ..................．……，..................．……16 三、审计发现的问题及建议．...........................................................．……19 且1 .Andit Findings and Recommendations .......．……，..............．……，...．……21 一、审计师意见 审计师意见 宜昌市交通投资有限公司： 我们审计了世界银行贷款三峡现代物流中心基础设施项目2019 年12月31日的资金平衡表及截至该日同期间的项目进度表、贷款协 定执行情况表和专用账户报表等特定目的财务报表及财务报表附注 （第5页至第18页）。 （一）项目执行单位及湖北省财政厅对财务报表的责任 簖制上述财务报表中的资金平衡表、项目进度表及贷款协定执行 情况表是你公司的责任，簖制专用账户报表是湖北省财政厅的责任， 这种责任包括： 1．按照中国的会计准则、会计制度和本项目贷款协定的要求编 制项目财务报表，并使其实现公允反映； 2．设计、执行和维护必要的内部控制，以使项目财务报表不存 在由于舞弊或错误而导致的重大错报。 （二）审计责任 我们的责任是在执行审计工作的基础上对财务报表发表审计意 见。我们按照中国国家审计准则和国际审计准则的规定执行了审计工 作，上述准则要求我们遵守审计职业要求，计划和执行审计工作以对 项目财务报表是否不存在重大错报获取合理保证。 为获取有关财务报表金额和披露信息的有关证据，我们实施了必 要的审计程序。我们运用职业判断选择审计程序，这些程序包括对由 于舞弊或错误导致的财务报表重大错报风险的评估。在进行风险评估 时，为了设计恰当的审计程序，我们考虑了与财务报表相关的内部控 制，但目的并非对内部控制的有效性发表意见。审计工作还包括评价 所选用会计政策的恰当性和作出会计估计的合理性，以及评价财务报 表的，悠体列报。 1 …一 { 我们相信，我们获取的审计证据是适当的、充分的，为发表审计 意见提供了基础。 l （三）审计意见 …准贝l产雪井霸、薰采篡暨鬓矍氛练鲁擎豪氰杏套夏聋翼害昙肇豪其 贷款三峡现代物流中心基础设施项目2019年12月31日的财务状况 …’及截至该日同期间的财务收支、项目执行和专用账户收支情况。 } （四）其他事项 我们审查了本期内由湖北省财政厅报送给世界银行的第03号提 款申请书及所附资料。我们认为，这些资料均符合贷款协议的要求， 可以作为申请提款的依据。 本审计师意见之后，共同构成审计报告的多翅夔内容：财务报 ’及财’&’附注”&”的问题及愁念 中华盟戳缪析 地址：中国湖北省武汉市天鹅路3号 邮政簖码：430071 电话：86一027一87236025 传真：86一027一87236025 2 1. Auditor's Opinion Auditor's Opinion To Yichang Transportation Investment Co., Ltd. We have audited the special purpose financial statements (from page5 to page 18) of Hubei Yichang Three Gorges Modem Logistics Center Infrastructure project financed by the World Bank, which comprise the Balance Sheet as of December 31, 2019, the Summary of Sources and Uses of Funds by Project Component, the Statement of Implementation of Loan Agreement and the Special Account Statement for the year then ended, and Notes to the Financial Statements. Project Entity and Hubei Provincial Finance Department's Responsibility for the Financial Statements The preparation of the Balance Sheet, the Summary of Sources and Uses of Funds by Project Component and the Statement of Implementation of Loan Agreement is the responsibility of your entity, while the preparation of the Special Account Statement is the responsibility of Hubei Provincial Finance Department, which includes: i. Preparing and fair presenting the accompanying financial statements in accordance with Chinese accounting standards and system, and the requirements of the project loan agreement; ii. Designing, implementing and maintaining necessary internal control to ensure that the financial statements 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 the Government Auditing Standards of the People's Republic of China and 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 3 internal control relevant to the entities' 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. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of 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 appropriate and sufficient to provide a basis for our audit opinion. Opinion In our opinion, the financial statements identified in the first paragraph present fairly, in all material respects, financial position of Hubei Yichang Three Gorges Modern Logistics Center Infrastructure project financed by the World Bank as of December 31, 2019, its financial receipts and disbursements, the project implementation and the receipts and disbursements of special account for the year then ended in accordance with Chinese accounting standards and system, and the requirements of the project loan agreement. Other Matter We also examined No.03 withdrawal application and the attached documents submitted to the World Bank during the period. In our opinion, the documents comply with the project loan agreement and can serve as basis for loan withdrawal. The audit report consists of the Auditor's Opinion and two more parts hereinafter: Financial Statements and Notes to the Financial Statements, Audit Findings and Recommendations. Hubei Provincial Audit Office of the People's Republic of China June 28, 2020 Address: No. 3 Tian'e Road, Wuhan City, Hubei Province, P.R. China, Postcode: 430071 Tel.: 86-027-87236025 Fax: 86-027-87236025 The English translation is for the convenience of report users; Please take the Chinese audit report as the only official version. 4 二、财务报表及财务报表附注 11 .Financial Statements and Notes to the Financial Statements （一）资金平衡表 1.Balance Shcet 资金平衡表 BALANCE SHEET 2019年12月31日 (As ofDecember 31,2019) 项目名称：世界银行贷款湖北宜昌市三峡现代物流中心基础设施项目 Project Name:Hubei Yichang ThLree Gorges Modern Logistics Center hifrastructure Project Financed by the World Bank 簖报单位：宜昌市交通投资有限公司货币单位：人民币元 挤n 5 Vq, _L&M/\a wf-& WIT-fflk 13 171,886,544.89 95,748,881.85 IV 40 Cash in Bank Appropriation of Investment Loan A IP: To RK Y' A r P : I t A J1 I T VV 14 21,129,172.36 31,217,627.23 111 a 41 Including: Special Including: World Account Bank Loan 2. JU! 15 0.00 0.00 K, A-AffiRMCk 42 Cash on Hand Bond Fund )%, J79144R )NI VPAH Lffl it 16 149,373,534.58 110,478,177.19 Construction 43 Total Prepaid and Expenditures to be Receivable Offset -A rp: I'm & ft ff Including: World 17 Total Payable 44 79,592,995.02 43,092,225.55 Bank Loan Interest Receivable A IP: YNLflft b- World Bank Loan 18 Including: World 45 Commitment Fee Bank Loan Interest Receivable Pavable RMUT 11 v VK 41, N M v World Bank Loan 19 World Bank Loan 46 Service- Fee Commitment Fee Receivable Payable 20 47 Marketable Securities World Bank Loan Service Fee Pavable Al 21 Al 48 Total Fixed Assets Other Payables h, Fixed Assets, Cost 22 Appropriation of 49 Fund 9: TZ it N I H +1 Less: Accumulated 23 Retained Earnings 50 188,570.66 203,535.12 Depreciation 24 Fixed Assets, Net IN t i 16-- MA A Fixed Assets Pending 25 Disposal 4 A if IM i Fixed Assets Losses in 26 Suspense 5i 2z 1 Total Application of 27 812,792,743.23 872,843,976.74 51 812,792,743.23 872,843,976.74 Fund Total Sources Of Fund ( ::-) * A ii. Summary of Sources and Uses of Funds by Project Component SUMMARY OF SOURCES AND USES OF FUNDS BY PROJECT COMPONENT I *MAI 2019 # 12 ] 31 H (For the period ended December 31, 2019) Project Name: Hubei Yichang Three Gorges Modem Logistics Center Infrastructure Project Financed by the World Bank Prepared by: Yichang Transportation Investment Co., Ltd. Currency Unit: RMB Yuan *M V it Current Period Cumulative Current Period Current Period Current Period % Cumulative Cumulative % Life of PAD Budget Actual Completed Actual Completed WAi*Ji#i Total Sr of Fund654,000,000.00 70,869,038.53 10.84% 3,034,538,200.00 829,548,216.08 27.34% Sources of Funds 293,000,000.00 70,869,038.53 24.19% 1,362,000,000.00 122,343,038.53 8.98% International Financing 293,000,000.00 70,869,038.53 0.00% 1,362,000,000.00 122,343,038.53 8.98% IBRD Ziit ± Counterpart 361,000,000.00 0.00 0.00% 1,672,538,200.00 707,205,177.55 42.28% Financing Total Application of 654,000,000.00 149,416,253.94 22.85% 3,034,538,200.00 666,616,917.70 21.97% Funds (by Project Component) Iyn Logititics Park399,199,514.14 32,236,838.20 8.08% 1,852,272,500.00 376,032,871.26 20.30% Baiyang Logitics Park Baiyang Port and 186,328,789.33 63,857,116.70 34.27% 864,559,400.00 149,903,762.49 17.34% Operations Area Transport Connection 46,302,356.97 30,086,101.43 64.98% 214,841,300.00 83,875,110.69 39.04% Infrastructure 4. £fttP JI U-t.ql 'tt Baiyang Logitics Infrain Ltfm 17,530,513.29 23,165,576.84 132.14% 81,341,000.00 56,221,887.49 69.12% Information Platform and Facilities 7 5.MH% -M 4,638,826.28 70,620.76 1.52% 21,524,000.00 583,285.76 2.71% Capacity Building -78,547,215.42 162,931,298.38 Difference 1. JAM R -38,895,357.39 110,478,177.19 Change in Receivables 2. SE4&WM 36,500,769.47 43,092,225.55 Change in Payables 3. Mili1A -76,137,663.04 95,748,881.85 Change in Cash and Bank 4. -'A IL-14,964.46 -203,535.12 Others 8 ．少。 } !；斗 ( 99 ) *M *P 4A iv. Special Account Statement -t #1 * A, 4 A SPECIALACCOUNT STATEMENT *,4q;k 3- 2019 * 12 A 31 Depository Bank: Bank of China,Wuhan Wuchang Branch Project Name: World Bank Loan Hubei *- r: 576873961620 Yichang Three Gorges Modem Logistics Account No. 576873961620: Center hifrastructure Project * i P # 41,-: x J15 8766-CN Currency: USD LoanNo. : 8766-CN Prepared by:Hubei Provincial Deparu-nent of Finance Part A-Account Activity for the Current Period Amount M+0*0 Beginning Balance 3,078,619.19 Add: *MVTN*t0 10,158,709.90 Total Amount Deposiiett this Period by ADB 1,918.25 Total Interest Earned this Period if 2M iwd in Special Account Total Amount Refunded this Period to Cover Ineligible Expmditures Deduct: 8,764,348.73 Total Amount Withdrawn this Period * M 1 z t 9 E A i-Oi rp (h h R YT t j 1%, Total Service Charges this Period ifnot Included in Above Amount Withdrawn 22.00 4,474,975.61 Ending Balance ITo be continued) Part B-Account Reconciliation Amount Amount Advanced by World Bank 9,000,000.00 Deduct: 2. tM ! Total Amount Recovered by World Bank 3. t*tT*IlFl%K X4V*Mh# Outstanding Amount Advanced to the Special Account at the End of this Period 9,000,000.00 4. --(Jfl PM**M Ending Balance of Special Account 4,474,875.61 Add: 5. *iH *0 ki Amount Claimed but not yet Credited at the End of this Period Application No. Amount 6. #11r4itUKl Amount Withdrawn but not yet Claimed at the End of this Period 4,527,526.36 7. Jfl 4fit5Efl (fll*M# 5 Al6 tP) Cumulative Service Charges (If not Included in Item 5 or 6) 32.00 Deduct: 8. Mftt.4A(4 tsn5) Interest Earned (If Included in Special Account) 2,433.97 9,000,000.00 Total Advance to the Special Account Accounted for at the End of this Period 12 （五）财务报表附注 财务报表附注 1．项目概况 世行贷款湖北宜昌市三峡现代物流中心基础设施项目贷款号为 8766一CN，旨在通过该项目的实施，提升湖北宜昌市货物运输和物流服务。 世行贷款湖北宜昌市三峡现代物流中心基础设施项目建设内容包括白洋 物流园区、白洋港口作业区、道路交通基础设施、三峡现代物流信息中心 以及项目管理与机构能力五个子项。项目协议于2017年9月1日签订， 2017年12月27日生效，预计2023年9月30日前关闭。项目计划总投资 为人民币3,034,538,200.00元，其中世界银行贷款总额为200,000,000.00美 元，折合人民币l,362,000,000.00元。 2．财务报表编制范围 本财务报表的簖制范围包括湖北省宜昌市项目办的财务报表及省财 政厅专用账户报表。 3．主要会计政策 3.1本项目财务报表按照财政部《世界银行贷款项目会计核算办法》 （财际字〔2000〕13号）的要求编制。 3.2会计核算年度采用公历年制，即公历每年1月1日至12月31日。 3.3本项目会计核算以‘，权责发生制’，作为记账原则，采用借贷复式记 账法记账，以人民币为记账本位币。 3.4按照中国人民银行2019年12月31日的汇率，即USD卜人民币 6 .9762元。 4服表科目说明 4.1项目支出 l3 2019年项目支出人民币149,416,253.94元，累计支出人民币 666,616,917.70元，占总投资计划的21.97％。 4.2货币资金 20 19年12月31日货币资金余额为人民币95,745,581.55元，比上年 减少人民币76,137,663.04元，其中专用账户存款折合人民币31,217,627.23 元。 4.3预付及应收款 2019年12月31日余额为人民币110,478,177.19元，主要是预付中铁 幼州工程局集团有限公司工程款人民币14,740,747.80，预付高新区国土局 的土地征拆履约保证金人民币11,080,000.00元及应收宜昌市交通投资有限 公司的项目贷款资金人民币75,095,696.88元。 4.4项目配套资金 地方计划配套资本金总额人民币1,672,538,200.00元，累计到位人民币 707,205,1 77.55元，占计划的42.28％。 4.5项目借款 20 19年12月31日余额为人民币462,343,035.53元，其中：国际复兴 开发银行贷款额为人民币122,343,038.53元。 …截至2019年12月31日，累计提取世界银行贷款资金17,158,697.90 粎元。 4.6应付款 2019年12月31日余额为人民币43,092,225.55元，主要是应付宜昌 市交通投资有限公司的垫付前期项目款人民币32,484,375.55元。 4.7留成收入 20 19年12月31日余额人民币203,535.12元，是项目资金账户存款利 息收入。 14 … 5．专用账户使用情况 本项目专用账户设在中国银行武昌支行，账号为576873961620，币种 为粎元。2019年专用账户收到世行预付周转金2,000,000.00美元，从世行 回辛1、金额为10,158,709.90粎元。本期支出8,764,348.73美元，其中工程支 出s,732,343.05粎元，出国考察费支出犯，005.65美元。期末余额 4,474,875.61粎元（含存款利息收入l,915.25美元） l5 } v. Notes to the Financial Statements Notes to the Financial Statements 1. Project overview The Loan No. of Hubei Yichang Three Gorges Modem Logistics Center Infrastructure Project is 8766-CN. It aims to improve freight transport and logistics services in Yichang, Hubei Province through project implementation. The Three Gorges Modem Logistics Center Infrastructure Project comprises five components, which are Baiyang Logistics Park, Baiyang Port and Operations Area, Transport Connection Infrastructure, Baiyang Logistics Inforination Platform and Facilities and Capacity Building. The Project Agreement was signed on September 1, 2017 and became effective on December 27, 2017. The account of the project is expected to be closed before September 30, 2023. The total investment of the project was R1\413 3,034,538,200.00 yuan, among which the total World Bank loan amount was USD 200,000,000.00, equivalent to RMB 1,362,000,000.00 yuan. 2. Consolidation Scope of the Financial Statements Consolidation scope of the financial statements covers the financial statements of the project prepared by Yichang Transportation Investment Co., Ltd, as well as the Special Account set in the Provincial Finance Department. 3. Accounting Policies 3.1 The Financial Statements of the project were prepared according to the requirements of Accounting Methods for the World Bank Financed Project (Caijizi[2000]N6. 13 ) . 3.2 In accounting practice, the Gregorian calendar year is adopted as the fiscal year from January I to December 3 1. 3.3 The accrual basis and the debit/credit double entry bookkeeping method are adopted. RMB is used as the recording currency of bookkeeping. 3.4 The exchange rate adopted in the financial statements was the exchange rate 16 on December 31, 2019 of the People's Bank of China, which is USD1= RMB6.9762 yuan. 4. Explanation of Subjects 4.1 Total Project expenditures The project expenditure in 2019 was RMB149,416,253.94 yuan, and the cumulative expenditures were RMB666,616,917.70 yuan, which accounted for 21.97% of the total investment plan. 4.2 Cash and Bank On December 31, 2019, the balance was RMB95,748,881.85 yuan with a decrease of RMB76,137,663.04 yuan compared with that of the last year. And the funds in the Special Account were converted to RMB31,217,627.23 yuan. 4.3 Prepaid and Receivable Its balance on December 31, 2019 was RMB110,478,177.19 yuan, mainly the prepayment RMB14,740,747.80 yuan to China Railway Guangzhou Engineering Group Co., Ltd for the works, the performance bonds RMB11,080,000.00 yuan prepaid to Land Bureau of High-tech Industry Development Zone for land requisition and the loan receivables RMB75,095,696.88 yuan of Yichang Transportation Investment Co., Ltd. 4.4 Project counterpart funds The total amount of local counterpart funds was RMB1,672,538,200.00 yuan, and the accumulated amount in place was RMB707,205,177.55 yuan, which accounted for 42.28% of the plan. 4.5 Project Loan The balance on December 31, 2019 was RMB462,343,038.53 yuan, including the IBRD loan RMB122,343,038.53 yuan. By the end of December 31, 2019, accumulated USD17,158,697.90 of the World Bank loan had been withdrawn. 4.6 Payable 17 The balance on December 31, 2019 was RMB43,092,255.55 yuan, mainly payable preliminary project expenditures RMB32,484,375.55 yuan to Yichang Transportation Investment Co., Ltd. 4.7 Retained Earnings The balance on December 31, 2019 was RMB203,5 35.12 yuan, mainly interest earned of bank deposit. 5. Special Account The Special Account of this project is set in Wuchang Branch, China Bank, with the account number of 576873961620, and USD as currency Unit. The advance proceeds withdrawn from the World Bank in 2019 was USD2,000,000.00, and the reimbursement in the year was USD10,158,709.90. This year the disbursement was USD8,764,348.73, including construction expenditures USD8,732,343.08 and overseas study expenditures USD32,005.65. The ending balance was USD4,474,885.61 (including the interest earned USD1918.25). 18 三、审计发现的问题及建议 审计发现的问题及建议 除对财务报表进行审计并发表审计意见外，审计中我们还关注了项目 执行过程中相关单位国家法规和项目贷款协定遵守情况、内部控制和项目 管理情况。宜昌市交通投资有限公司（以下简称“交投公司”）在推动项 目建设进程、保证建设质量、协调建设各方关系等方面发挥了积极作用， 但我们还发现项目管理及工程招投标方面存在如下问题： （一）项目管理方面存在的问题 1．项目进展缓慢。 项目贷款协定于2017年9月1日签订，总投资为人民币 3,034,538,200.00元。截至2019年末，项目应完成投资人民币 2,580,793,500.00元，实际完成投资人民币666,616,917.700元，占应完成投 资的25.83%，进展簓慢的主要原因是2019年度审计查出的征地拆迁问题 未整改到位及建材涨价等导致的道路施工合同纠纷所致。 以上行为不符合《项目协议》‘,2. 01．项目实施单位承诺完成本项目的相 关目标。为此目的，项目实施单位应根据通则第V部分条款规定，对项目 进行实施，且应根据项目的需要，及时提供资金、设施、服务以及其他所 需资源”等规定。建议你公司落实业主责任，加快项目进度。你公司已接受 …审计建议。 2．少计银行贷款利．息成本人民币25,668,000.00元。 截至2019年末，交投公司为世行贷款三峡现代物流中心基础设施项 ｝目向中信银行等3家商业银行共计贷款人民币36,000,000.00元，贷款期限 12一19年，年利率4.9％一5.39%，当期已支付利息人民币25,668,000.00元， 计入交投公司往来款科目。审计发现，交投公司未将上述贷款当期利息支 出在本项目核算，少计项目成本人民币25,668,000.00元。 以上行为不符合《财政部关于印发＜国际金融组织和外国政府贷款赔 19 … 款项目财务管理办法＞的通知》（财国合【2017〕28号）第二十一条“项目实 施单位应当……，加强项目准备及实施环节的成本费用管理，做好项目成 本费用的概算、确认、支付、控制及核算等财务工作”的规定。建议你公司 加强财务管理，及时准确核算项目借款利息。你公司已接受审计建议。 （二）招投标管理方面的问题 询价采购程序不规范，涉及金额人民币217,804.00元。· 2019年8月，交投公司以询价方式采购白洋港水铁联运发光字制作安 装项目，要求参加询价企业提供相关资质及完成类似制作的业绩证明材 料，中标单位是宜昌市华宇幼告责任有限公司，合同金额人民币 217,804.00元。审计发现，交投公司未对相关参与询价企业资格进行严格 审核，参与询价的三家企业均未提供资质证明材料，业绩证明也均未反映 企业是否完成过类似的安装制作。 建议你公司建立健全询价采购管理制度，严格依照询价制度执行。你 公司已接受审计建议。 （三）项目采购检查情况。 按照世界银行要求，我们对4个采购后审合同开展了检查，合同金额 合计10,144,556.45粎元（折合人民币70,770,664.00元），分别占应检查合 同数和应检查合同金额的100％和100%（详见附表2）。此次检查为项目 生效后的首次检查，应检查后审合同数的统计期间是2019年，检查中我 们关注了采购过程、合同管理和治理情况，未发现上述合同存在需进行澄 清、调查和整改的问题（详见附表1）。 （四）上年度审计发现问题整改情况。 审计发现，2019年度审计报中披露的因征地拆迁工作滞后影响项目工 程进度问题未整改到位，截至审计日，仍有17个移民安置户房屋未拆除， 影响项目建设。建议你公司协调相关部门落实《移民安置计划》，加快征 地拆迁进度，推进项目工程进度。你公司已接受审计建议。 20 EEL Audit Findings and Recommendations Audit Findings and Recommendations In addition to performing the audit and expressing an opinion on the financial statements, we also make observations with respect to compliance with applicable provisions of state laws and regulations and the loan agreement of the relevant entities, its internal financial control and project management during the project implementing process.The project implementation is of great significance to improve the transportation capacity of the Three Gorges Transportation Hub and promote the development of the Three Gorges logistics industry. Yichang Transportation Investment Co., Ltd. (hereinafter referred to as the "YTIC") has played an active role in promoting project construction process, ensuring the construction quality and coordinating the relations among all parties involved.But we also found the following problems with the project: Issues on project management I.The progress of the project is slow. The loan agreement was signed on September 1, 2017 and the total investment was RMB3,034,538,200 yuan. By the end of 2019, the completed investment of the project should be RMB2,580,793,500.00 yuan. Due to the unfinished land acquisition and road construction contract disputes, the actual completed investment was RMB666,616,917.700 yuan, accounting for 25.83% of the investment planned. The main reason for the slow progress is that in the year of 2019 we found the land acquisition was not rectified in place and the road contract disputes caused by building materials price rising and other issues. The above behavior was not in compliance with terms of project agreement 2.01 The Project Implementing Entity declares its commitment to the objectives of the Project. To this end, the Project Implementing Entity shall carry out the Project in accordance with the provisions of Article V of the General Conditions, and shall provide, promptly as needed, the funds, facilities,services and other resources required for the Project. We suggested that your company should implement the responsibility and accelerate the progress of the project.Your company accepted the suggestion. 2.The omission of bank loan interest of RMB25,668,000 yuan. By the end of 2019, YTIC got a total of RMB 36,000,000.00 yuan loan to Three Gorges Modem Logistics Center Infrastructure Project from three commercial 21 banks including China Citic Bank, with a term of 12 to 19 years and an annual interest rate of 4.9% to 5.39%. The interest paid in the current period was R1VIB 25,668,000 yuan, which was included in the YTIC current account. The audit found that YTIC did not calculate the current interest expense of the above-mentioned loan in the project. The bank loan interest of RMB25,668,000 yuan was excluded in the the project cost. The above behavior was not in compliance with the article 21 of The Financial Management Measures for Loan and Indemnity Projects oflnternational Financial Organizations and Foreign Governments (Caiguohe [2017] No. 28) which stipulates that The project implementation unit shall......, strengthen the cost management of project preparation and implementation stage, and strive to estimate, confirm, pay, control and calculate the project cost and expenditure well. We suggested your company strengthen financial management and calculate loan interest of the project timely and accurately. Your company accepted the suggestion. The existing problems in bidding management The procurement procedures were not standard, with RMB217,800 yuan involved In August 2019, YTIC purchased luminous character production and installation of Baiyang Port Water-Railway transportation by inquiry, and required participating enterprises to provide relevant qualifications and performance proof materials for similar activities. The winning bidder was Yichang Huayu Advertising Co., LTD., with the contract amount of RMB217,800 yuan. The audit found that YTIC did not strictly review the qualifications of the enterprises involved in the inquiry. None of the three enterprises involved in the inquiry provided qualification certificates. Further, the performance certificates could not reflect whether the enterprises had accomplished similar installation and production or not.We suggested your company should establish and perfect the inquiry purchasing management system and follow the inquiry system strictly .Your company accepted the suggestion. The findings of project procurement review In accordance with the requirements of the World Bank, we have reviewed four post-review contracts with a total contract amount of USD10,144,586.45 (equivalent to RMB70,770,664.00 yuan), accounting for 100% and 100% respectively of the number of contracts subject to review and the amount of 22 contracts subject to review (see Schedule 2 for details). This is the first review after the project come into effect, and the statistical period of post-review contracts was 2019. During the review, we paid attention to the procurement process, contract management and governance, and found that there were no problems requiring clarification, investigation and rectification of the above contracts (see Attached Table 1 for details). The Followed-up of previous recommendations The audit found that the problem that the delayed project progress due to the land acquisition revealed in the 2019 annual audit report has not been rectified. As of the audit date, there are still 17 households that have not been demolished, which is affecting project construction. We suggested that your company should coordinate with relevant departments to carry out Resettlement Plan, accelerate the progress of land acquisition, and promote the progress of the project.Your company accepted the suggestion. 23 frt&i: in Wt#E Annex I : Procurement Post Review Sheet 1. $RNMAFindings on the Review of Procurement Processes ( f"7,R 2. 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