“Agricultural Commercialization Project” Grant No. H964-TJ, Grant No. D259-TJ, Credit No. 6167-TJ The project financial statements for the year ended December 31, 2020 and independent auditors’ report “AGRICULTURAL COMMERCIALIZATION PROJECT” GRANT NO. H964-TJ, GRANT NO. D259-TJ, CREDIT NO. 6167-TJ TABLE OF CONTENTS Page STATEMENT OF MANAGEMENT’S RESPONSIBILITIES FOR THE PREPARATION AND APPROVAL OF THE PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2020 2 INDEPENDENT AUDITORS’ REPORT 3-5 PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2020 Summary of funds received, and expenditures paid 6-7 Summary of expenditures paid by project components 8 Notes to the project financial statements 9-22 “AGRICULTURAL COMMERCIALIZATION PROJECT” GRANT NO. H964-TJ, GRANT NO. D259-TJ, CREDIT NO. 6167-TJ SUMMARY OF FUNDS RECEIVED AND EXPENDITURES PAID FOR THE YEAR ENDED DECEMBER 31, 2020 (in US dollars) Notes For the year ended December 31, 2020 For the year ended December 31, 2019 Cumulative AED PMU MOF PMU Total AED PMU MOF PMU Total Opening balance 4 432,825 612,996 1,045,821 496,490 229,809 726,299 - Funds received Grant H964-TJ 5 1,814,538 - 1,814,538 3,258,391 1,328,122 4,586,513 19,933,285 Grant D259-TJ - 2,366,481 2,366,481 - 507,181 507,181 2,973,662 Credit 6167-TJ - 1,188,296 1,188,296 - - - 1,188,296 Total funds received: 1,814,538 3,554,777 5,369,315 3,258,391 1,835,303 5,093,694 24,095,243 Reallocation of funds 50,000 (50,000) - - - - - Other income 309 - 309 10 - 10 6,563 Total receipts 1,864,847 3,504,777 5,369,624 3,258,401 1,835,303 5,093,704 24,101,806 Project expenses Sub-loans under Component II. A 6 - 2,445,599 2,445,599 - 983,980 983,980 9,735,690 Matching grants under Component II of the Project - 40,647 40,647 - - - 40,647 Commercialization Grants under Component II. B 6 492,305 - 492,305 1,187,788 - 1,187,788 3,079,150 Goods, works, operating costs, training, non-consulting services and consultants’ services 6 1,538,842 1,150,532 2,689,374 2,128,714 468,130 2,596,844 10,471,148 Total project expenses 2,031,147 3,636,778 5,667,925 3,316,502 1,452,110 4,768,612 23,326,635 6 “AGRICULTURAL COMMERCIALIZATION PROJECT” GRANT NO. H964-TJ, GRANT NO. D259-TJ, CREDIT NO. 6167-TJ NOTES TO THE PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2020 (in US dollars) 1. GENERAL INFORMATION According to the Agreement between the Republic of Tajikistan and International Development Association (the “IDA”, “World Bank”) signed on July 30, 2014, the IDA provided a Grant No. H964-TJ in amount of 14,300,000 Special Drawing Rights to the Republic of Tajikistan. The period of duration of the Grant is from July 30, 2014 to June 30, 2021. The Grants were provided for the Project “Agricultural Commercialization Project” (the “Project”). On January 18, 2018 was signed the Financing Agreement for additional financing for the Project “Agriculture Commercialization Project” between the Republic of Tajikistan and IDA. IDA provided the Grant No. D259-TJ in amount of 5,400,000 Special Drawing Rights and the Credit No. 6167-TJ in amount of 7,500,000 US dollars. According to Financing Agreement there were changes in the objective of the Project, in the component II and III of the Project and were added new Component IV. The name of Component II was amended to “Component II: Access to finance” and were added new sub- component II.D. In Component III there were amendment in sub-component III.E and sub-component III.F is hereby replaced in its entirety. The period of duration of the Grant and Credit is from January 18, 2018 to June 30, 2022. Project purpose The objectives of the Project are to increase the commercialization of farm and agribusiness products and support micro, small and medium enterprise development in Project areas by providing better access to finance and strengthened capacity of Project beneficiaries. The Project comprises the following components: Component I: Improvement of technical knowledge and skills in support of commercialization. Component II: Access to finance. Component III: Institutional capacity building and project management. Component IV: Entrepreneurship training and business development services to micro, small and medium size enterprises Component I: Improvement of technical knowledge and skills in support of commercialization Improving of technical knowledge and skills of participants in key agricultural value chains and productive partnerships by: a. Supporting building value chains and productive partnerships under the project, by providing research and improvement of technical knowledge and skills of project beneficiaries on a variety of agriculture- related subjects, and assistance in identifying and pursuing market opportunities. Provision of advisory services and training by a reputable consulting firm with relevant expertise acceptable to the Association, to assist with value chain development activities under Component I, II.B and III of the Project. b. Providing training and advisory services at the producer level. Establishing a network of demonstration plots, to conduct comparisons and testing between various agricultural production practices and supporting participation of farmer groups in trade fairs and other events. c. Providing training and advisory services for agro processors and agribusiness enterprises on a variety of subjects related to their business operations. Providing training on issues relating to child and forced labor. Supporting attendance at trade fairs and providing mentoring services. Component II: Access to finance Enhancing access to medium and long-term finance for agribusiness enterprises and small-scale commercial farms by: 9 a. Establishing and operating of a credit line facility through PFIs to support: (a) medium-term loans and leases for investment for financing modern technological plant and equipment; and (b) value chain financing products and value chain and productive linkage support, and (c) investment and working capital needs for a broad range of micro, small and medium enterprises in Project areas. b. Providing Commercialization Grants to support investment and input needs by smaller farmers in producer groups or productive partnerships unable to qualify for a commercial loan. c. Supporting the value chain development by providing capacity building of the PFIs related to new financial products in lending for value chain and productive partnership development activities, accessing suitability and effectiveness of new financial products, and on mitigation of the related risks. Providing training to the PFIs on environmental and social safeguard issues. d. Providing Matching Grants to Sub-borrowers on terms and conditions set forth in the Matching Grant Program Manual to complement Sub-loans under Part A of this Component II. Component III: Institutional capacity building and project management. Strengthening the critical elements of the institutional framework and agricultural sector’s academic knowledge base required to support commercial activity by: a. Supporting curriculum modernization of the Tajikistan Agrarian University. b. Supporting expansion of the farmer training programs at the agricultural colleges through updating of curricula and teaching materials, in conjunction with curriculum modernization under Component III. (a) above; upgrading equipment and upgrading of facilities of the Agricultural Colleges. c. Improving market information systems for farmers and agribusinesses by: (i) supporting the establishment of a public-private partnership between the Tajikistan National Statistics Agency, other relevant state agencies and private service providers on facilitating delivery of commercial market information; and (ii) providing related technical assistance to the Tajikistan National Statistics Agency, other relevant state agencies and private service providers. d. Strengthening the MOA’s capacity for policy and regulatory reform in the field of agriculture by funding selected studies on critical issues concerning agricultural commercialization. e. Supporting the Agricultural Entrepreneurship Development Project Management Unit (“AED PMU”) and Ministry of Finance Project Management Unit (“MOF PMU”) for the effective implementation of the Project, through provision of goods, works, consultants’ services, audit, training and operating costs, for purposes of Project management and implementation, including monitoring and evaluation. (ii) establishing and maintaining for the duration of the Project, the Grievance Redress Mechanism f. Building capacity of financial intermediaries acting in rural areas of the Recipient, including: (i) provision of trailing to PFI’s on start-up business financing modalities, including risk identification and appraisal, and structuring of financing repayment, as well as on key environmental aspects associated with rural business financing; and (ii) provision of technical assistance to selected smaller microfinance institutions with good potential to grow and expand the opportunities for access to finance for small rural and agricultural businesses. Component IV: Entrepreneurship training and business development services to micro, small and medium size enterprises a. Provision of entrepreneurship training and business development services to start-ups with more intensive support to youth led, women-led enterprises and enterprises led by, and/or employing, persons with disabilities. b. Carrying out innovative approaches to promote start-up growth and job creation, including opening an entrepreneurship hub in a selected location and development and implementation of business mentoring and training programs. Project management The Project is implemented by the Agricultural Entrepreneurship Development Project Management Unit (the “AED PMU”) and Ministry of Finance Project Management Unit ( the “MOF PMU”) within the scope of the Ministry of Agriculture and Ministry of Finance of the Republic of Tajikistan, respectively. Duration of the Project is July 30, 2014 to June 30, 2022. 10 2. PRESENTATION OF THE PROJECT FINANCIAL STATEMENTS Basis of preparation These 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 International 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 system 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 project financial statements consist of: • Summary of funds received and expenditures paid; • Summary of expenditures paid by project components; • Notes to the project financial statements, including short description of main statements of accounting policy and other descriptive notes. The reporting currency of these project financial statements is US dollars (the “USD”). 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Cash basis of accounting The 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 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 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 NBT, 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 the summary of funds received and expenditures paid. Non-monetary items are valued according to their historic cost in foreign currency, which are recalculated on rates of the initial operation date. 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. Balances of advances paid to employees at the end of the period are also part of closing cash position. 11 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 and relevant legislation 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 advance, reimbursement or through direct payment to the end supplier of goods and/or services. 4. CASH AND CASH EQUIVALENTS Cash and cash equivalents as of December 31, 2020 comprise: December 31, 2020 Grant Currency AED PMU MOF PMU Total Cash and cash equivalents Designated account H964-TJ USD 29,372 49,829 79,201 Designated account D259-TJ & 6167-TJ USD 29,773 430,946 460,719 Transit account H964-TJ TJS 1 14 15 Transit account D259-TJ & 6167-TJ TJS - 150 150 Advance paid to employees D259-TJ & 6167-TJ TJS - 25 25 59,146 480,964 540,110 Restricted cash and cash equivalents Transit account H964-TJ TJS 178,875 - 177,633 178,875 - 177,633 238,021 480,964 718,985 Restricted cash and cash equivalents present cash balances in CJSC TJSC IBRR “Tajprombank” (the “Bank”) in the amount of 2,021,290 Tajik somoni (178,875 US dollars) as of December 31, 2020. The National Bank of Tajikistan revoked license of this Bank on February 24, 2017. The Bank is in the process of liquidation. Therefore, the Project has no access to its bank accounts in CJSC TJSC IBRR “Tajprombank” as at date of issuing this project financial statements. Cash and cash equivalents as of December 31, 2019 comprise: December 31, 2019 Grant Currency AED PMU MOF PMU Total Cash and cash equivalents Designated account H964-TJ USD 225,463 298,189 523,652 Designated account D259-TJ USD - 285,918 285,918 Transit account H964-TJ TJS 1 1 2 Transit account D259-TJ TJS - 28,888 28,888 225,464 612,996 838,460 Restricted cash and cash equivalents Transit account H964-TJ TJS 207,361 - 207,361 207,361 - 207,361 432,825 612,996 1,045,821 12 5. FUNDS RECEIVED The funds received are presented by the following financing methods: For the year ended December 31, 2020 AED PMU MOF PMU Total Grant No. H964-TJ Advances - - - Direct payments 218,497 - 218,497 Reimbursement of expenses 1,596,041 - 1,596,041 1,814,538 - 1,814,538 Grant No. D259-TJ Advances - 350,000 350,000 Reimbursement of expenses - 2,016,481 2,016,481 - 2,366,481 2,366,481 Credit No. 6167-TJ Advances - 349,998 349,998 Reimbursement of expenses - 838,298 838,298 - 1,188,296 1,188,296 1,814,538 3,554,777 5,369,315 For the year ended December 31, 2019 AED PMU MOF PMU Total Grant No. H964-TJ Direct payments 483,948 - 483,948 Reimbursement of expenses 2,774,443 1,328,122 4,102,565 3,258,391 1,328,122 4,586,513 Grant No. D259-TJ Advances - 300,000 300,000 Reimbursement of expenses - 207,181 207,181 - 507,181 507,181 3,258,391 1,835,303 5,093,694 Cumulative AED PMU MOF PMU Total Grant No. H964-TJ Advances 600,000 400,000 1,000,000 Direct payments 1,459,689 - 1,459,689 Reimbursement of expenses 9,262,631 8,210,965 17,473,596 11,322,320 8,610,965 19,933,285 Grant No. D259-TJ Advances - 750,000 750,000 Reimbursement of expenses - 2,223,662 2,223,662 - 2,973,662 2,973,662 Credit No. 6167-TJ Advances - 349,998 349,998 Reimbursement of expenses - 838,298 838,298 - 1,188,296 1,188,296 11,322,320 12,772,923 24,095,243 13 6. PROJECT EXPENSES The Project expenses by components are presented in the summary of expenditures paid by project components. The Project expenses on major categories are presented in the summary of funds received and expenditures paid. Breakdown of project expenses by categories and natures is presented as follows: Sub-loans under Component II. A For the year ended December 31, 2020 For the year ended December 31, 2019 Cumulative AED PMU MOF PMU Total AED PMU MOF PMU Total AED PMU MOF PMU Total Grant No. H964-TJ CJSC MDO "Imon International" - - - - 200,670 200,670 - 2,549,171 2,549,171 CJCS “Arvand” - - - - 252,320 252,320 - 2,221,029 2,221,029 LLC MDO "Humo" - - - - 530,990 530,990 - 2,025,127 2,025,127 LLC MDO "Dastras" - - - - - - - 319,934 319,934 OJSC "Bank Eskhata" - - - - - - - 87,615 87,615 LLC MDO "Muzaffariyat" - - - - - - - 70,885 70,885 CJSC "AccessBank Tajikistan" - - - - - - - 16,330 16,330 - - - - 983,980 983,980 - 7,290,091 7,290,091 Grant No. D295-TJ CJSC MDO "Imon International" - 370,606 370,606 - - - - 370,606 370,606 CJCS “Arvand” - 348,686 348,686 - - - - 348,686 348,686 LLC MDO "Humo" - 775,351 775,351 - - - - 775,351 775,351 - 1,494,643 1,494,643 - - - - 1,494,643 1,494,643 Credit No. 6167-TJ CJSC MDO "Imon International" - 294,778 294,778 - - - - 294,778 294,778 CJCS “Arvand” - 158,571 158,571 - - - - 158,571 158,571 LLC MDO "Humo" - 497,607 497,607 - - - - 497,607 497,607 - 950,956 950,956 - - - - 950,956 950,956 - 2,445,599 2,445,599 - 983,980 983,980 - 9,735,690 9,735,690 14 Commercialization Grants under Component II.B For the year ended December 31, 2020 For the year ended December 31, 2019 Cumulative AED PMU MOF PMU Total AED PMU MOF PMU Total AED PMU MOF PMU Total Grant No. H964-TJ Grants 492,305 - 492,305 1,187,788 - 1,187,788 3,079,150 - 3,079,150 492,305 - 492,305 1,187,788 - 1,187,788 3,079,150 - 3,079,150 Matching Grants under Component II For the year ended December 31, 2020 For the year ended December 31, 2019 Cumulative AED PMU MOF PMU Total AED PMU MOF PMU Total AED PMU MOF PMU Total Grant No. D295-TJ CJSC MDO "Imon International" - 19,204 19,204 - - - - 19,204 19,204 LLC MDO "Humo" - 21,443 21,443 - - - - 21,443 21,443 - 40,647 40,647 - - - - 40,647 40,647 15 Goods, works, operating costs, training, non-consulting services, and consultants’ services For the year ended December 31, 2020 For the year ended December 31, 2019 Cumulative AED PMU MOF PMU Total AED PMU MOF PMU Total AED PMU MOF PMU Total Grant No. H964-TJ Trainings 775,379 - 775,379 1,073,898 - 1,073,898 2,953,300 29,290 2,982,590 Payroll and related taxes 288,917 133,279 422,196 317,260 124,903 442,163 1,588,463 640,456 2,228,919 Consulting services 212,808 - 212,808 491,724 - 491,724 1,750,395 14,533 1,764,928 Goods 19,398 52,534 71,932 392 - 392 324,266 98,419 422,685 Consultants' services 78,039 - 78,039 84,276 - 84,276 371,065 37,226 408,291 Trainings for PMU - - - - - - 14,265 295,922 310,187 Business demos 1,379 - 1,379 89,638 - 89,638 150,875 - 150,875 Agribusiness forum 62,695 - 62,695 - - - 136,561 - 136,561 Stationery 5,426 1,225 6,651 6,794 2,500 9,294 110,699 11,869 122,568 Business trips 1,852 3,002 4,854 8,305 1,875 10,180 76,186 10,587 86,773 Purchase of vehicle - 49,989 49,989 - - - 21,967 49,989 71,956 Fuel expenses 6,605 4,565 11,170 - 4,853 4,853 39,708 19,935 59,643 Translation services - - - 1,601 - 1,601 58,650 - 58,650 Vehicle maintenance 4,238 2,853 7,091 25,229 1,631 26,860 43,045 7,996 51,041 Communication 6,960 242 7,202 6,840 1,803 8,643 41,139 9,177 50,316 Audit costs 6,857 - 6,857 9,859 - 9,859 45,617 - 45,617 Office renovation - - - - - - 44,017 - 44,017 Transportation - - - - - - 22,444 9,850 32,294 Printing handouts - - - - 32,025 32,025 - 32,025 32,025 Apple storage 25,886 - 25,886 25,886 - 25,886 Utility 6,672 - 6,672 - - - 19,749 - 19,749 Bank services 1,368 631 1,999 2,480 748 3,228 11,223 3,888 15,111 Business model 13,853 - 13,853 13,853 - 13,853 Non-consulting services - - - - - - 12,333 - 12,333 Advertising expenses - - - - - - 3,294 453 3,747 Other 292 - 292 10,418 5,434 15,852 88,603 17,142 105,745 1,518,624 248,320 1,766,944 2,128,714 175,772 2,304,486 7,967,603 1,288,757 9,256,360 16 Goods, works, operating costs, training, non-consulting services, and consultants’ services (continued) For the year ended December 31, 2020 For the year ended December 31, 2019 Cumulative AED PMU MOF PMU Total AED PMU MOF PMU Total AED PMU MOF PMU Total Grant No. D259-TJ Trainings - 411,678 411,678 - 111,480 111,480 - 523,158 523,158 Goods - 230,921 230,921 - 6,875 6,875 - 237,796 237,796 Consulting services - 111,166 111,166 - 106,566 106,566 - 217,732 217,732 Payroll and related taxes 17,251 92,508 109,759 - 56,919 56,919 17,251 149,427 166,678 Technical support - 15,449 15,449 - 8,800 8,800 - 24,249 24,249 Stationery - 4,183 4,183 - 260 260 - 4,443 4,443 Audit costs - 3,002 3,002 - - - - 3,002 3,002 Vehicle maintenance 1,046 1,621 2,667 - - - 1,046 1,621 2,667 Business trips 755 785 1,540 - 323 323 755 1,108 1,863 Communication - 1,393 1,393 - 106 106 - 1,499 1,499 Bank services 82 962 1,044 - 431 431 82 1,393 1,475 Fuel expenses 1,084 136 1,220 - - - 1,084 136 1,220 Utility - 674 674 - - - - 674 674 Other - 27,734 27,734 - 598 598 - 28,332 28,332 20,218 902,212 922,430 - 292,358 292,358 20,218 1,194,570 1,214,788 1,538,842 1,150,532 2,689,374 2,128,714 468,130 2,596,844 7,987,821 2,483,327 10,471,148 17 7. FINANCIAL POSITION Financial position as of December 31, 2020 comprise of: December 31, 2020 AED PMU MOF PMU Total ASSETS AND EXPENSES Cash and cash equivalents 238,021 480,964 717,743 Cumulative expenses 11,066,971 12,259,664 23,326,635 Foreign exchange losses/(gains) 73,891 (17,705) 57,428 TOTAL ASSETS AND EXPENSES 11,378,883 12,722,923 24,101,806 FINANCING Funds received 11,322,320 12,772,923 24,095,243 Other income 6,563 - 6,563 50,000 (50,000) - TOTAL FINANCING 11,378,883 12,722,923 24,101,806 Financial position as of December 31, 2019 comprise of: December 31, 2019 AED PMU MOF PMU Total ASSETS AND EXPENSES Cash and cash equivalents 432,825 612,996 1,045,821 Cumulative expenses 9,035,824 8,622,886 17,658,710 Foreign exchange losses/(gains) 45,387 (17,736) 27,651 TOTAL ASSETS AND EXPENSES 9,514,036 9,218,146 18,732,182 FINANCING Funds received 9,507,782 9,218,146 18,725,928 Other income 6,254 - 6,254 TOTAL FINANCING 9,514,036 9,218,146 18,732,182 18 8. WITHDRAWAL APPLICATIONS Withdrawal applications for the year ended December 31, 2020 comprise: Implementation Sources of Application Value date Advances Direct Goods, works, Total unit financing payments operating costs, training, non- consulting services and consultants’ services AED H964-TJ 47 January 22, 2020 - 36,216 - 36,216 48 January 22, 2020 - 36,216 - 36,216 49 February 10, 2020 - - 218,271 218,271 50 March 13, 2020 - - 190,065 190,065 51 April 27, 2020 - - 172,045 172,045 52 April 28, 2020 - 146,065 - 146,065 53 June 19, 2020 - - 304,365 304,365 54 July 17, 2020 - - 236,649 236,649 55 September 10, 2020 - - 252,168 252,168 56 October 16, 2020 - - 222,478 222,478 - 218,497 1,596,041 1,814,538 MOF D259-TJ 4 February 10, 2020 - - 378,483 378,483 5 March 6, 2020 - - 255,357 255,357 6 April 1, 2020 300,000 - - 300,000 7 April 6, 2020 - - 289,153 289,153 8 May 1, 2020 - - 305,886 305,886 9 May 6, 2020 - - 302,556 302,556 10 May 26, 2020 - - 303,674 303,674 11A June 16, 2020 - - 174,194 174,194 12 June 24, 2020 50,000 - - 50,000 14 October 16, 2020 - - 7,178 7,178 350,000 - 2,016,481 2,366,481 MOF 6167-TJ 1 October 12, 2020 190,846 - - 190,846 2 October 21, 2020 159,152 - - 159,152 3 October 22, 2020 - - 171,727 171,727 4 October 30, 2020 - - 318,049 318,049 5 December 29, 2020 - - 348,522 348,522 349,998 - 838,298 1,188,296 699,998 218,497 4,450,820 5,369,315 19 Deleted withdrawal applications for the year ended December 31, 2020 comprise: Implementation Sources of Application Value date Advances Direct Goods, works, Total unit financing payments operating costs, training, non- consulting services and consultants’ services MOF D259-TJ 11 June 1, 2020 - - 50,000 50,000 13 September 2, 2020 - - 240,836 240,836 - - 290,836 290,836 9. STATEMENT OF DESIGNATED ACCOUNT Statement of designated account for the year ended December 31, 2020 comprises: Designated accounts Grant No. H964-TJ Grant No. D295-TJ Grant No. H964-TJ Grant No. D259-TJ & Total Credit 6167-TJ Implementation agency AED PMU AED PMU MOF PMU MOF PMU Bank CJSC “The First Micro CJSC “The First Micro CJSC “Spitamen Bank” OJSC “Eskhata Bank” Finance Bank” Finance Bank” Currency US Dollars US Dollars US Dollars US Dollars Bank account 20206840818210031476 20206840118050056735 20206840880800000257 20206840400020100469 Bank’s location 113 Shevchenko str., 113 Shevchenko str., 4, Shamsi str, Dushanbe, 16 N. Karaboev str, Dushanbe, Dushanbe, the Republic of Tajikistan Dushanbe, the Republic of Tajikistan the Republic of Tajikistan the Republic of Tajikistan Balance as of January 1, 2020 225,463 - 298,189 285,918 809,570 Reimbursement of expenses 1,596,041 - - 3,554,777 5,150,818 Reallocation of funds - 49,991 - - 49,991 Transferred from cash desk 1,020 - - - 1,020 Total funds received 1,597,061 49,991 - 3,554,777 5,201,829 Expenses paid 20,726 - - 2,965 23,691 Transferred to transit account 1,772,426 20,218 248,360 3,406,784 5,447,788 Balance as of December 31, 2020 29,372 29,773 49,829 430,946 539,920 20 10. UNDRAWN FUNDS For the year ended December 31, 2020 undrawn funds are presented as followsr: Grant Grant Credit No. H964-TJ No. D259-TJ No.6167-TJ in SDR in SDR In USD Approved financing amount 14,300,000 5,400,000 7,500,000 Disbursed during the period from July 30, 2014 to December 31, 2020 (AED PMU) 8,115,726 - - Disbursed during the period from July 30, 2014 to December 31, 2020 (MOF PMU) 6,184,274 2,168,407 1,188,296 Undrawn financing amount - 3,231,593 6,311,704 Financing received as of January 1, 2020 12,989,664 441,219 - Disbursed in 2020 (AED PMU) 1,310,336 - - Disbursed in 2020 (MOF PMU) - 1,727,188 1,188,296 Financing received as of December 31, 2020 14,300,000 2,168,407 1,188,296 11. 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. Contract value of obligations valid as of December 31, 2020 was as follows: Counterparty Contract No. Currency Contract Paid up to Remaining value December 31, amount 2020 to be paid MOF PMU “Agro-service Consulting” LLC ACPAF/MOFPIU/CQS-03 USD 149,818 137,833 11,985 “Latif” LLC ACPAF/MOFPIU/CQS-04 USD 148,575 89,145 59,430 “Peshsaf” LLC ACPAF/MOFPIU/CQS-05 USD 144,340 75,842 68,498 National Association of Managers and Marketers ACPAF/MOFPIU/CQS-02 USD 154,485 15,449 139,037 AED PMU USD International Company AED/PMU/QCBS/2015- “Niras” (Sweden) 01 USD 1,679,748 1,461,362 218,385 Gent University (Belgium) AED/PMU/CQS/2016-04 USD 277,654 180,480 97,174 LLC “OBRU” TJ-AED PIU-113851 USD 201,465 120,849 80,616 “Sokhtmoni makhsus – TJ-AEDPIU-173742 GO- 2017” LLC RFQ USD 18,053 10,611 7,443 As of December 31, 2020, the AED PMU had contractual obligations in the amount of 403,618 US dollars under Grant No. H964-TJ, which as of December 31, 2020 was fully disbursed. 12. LEGAL CASES There were no legal claims related to the Project. 21 13. EVENTS AFTER THE REPORTING DATE Project Financing During 2021 until the date of issue of these project financial statements the World Bank provided financing to the Project as follows: Financing source Application Implementation Financing method Date Total unit Grant No. D259-TJ 15 MOF Reimbursement of expenses March 15, 2021 255,169 16 MOF Reimbursement of expenses April 13, 2021 112,739 17 MOF Reimbursement of expenses April 16, 2021 89,776 Credit No. 6167-TJ 6 MOF Reimbursement of expenses February 15, 2021 171,331 7 MOF Reimbursement of expenses February 23, 2021 300,859 8 MOF Reimbursement of expenses March 5, 2021 198,390 9 MOF Reimbursement of expenses March 18, 2021 272,685 10 MOF Reimbursement of expenses April 13, 2021 204,880 11 MOF Reimbursement of expenses April 16, 2021 134,626 As at the date of issue of the project financial statements no other significant events or transactions occurred, except for the events or transactions described above. 22