REPUBLIC OF TURKEY PRIME MINISTRY Undersecretariat of Treasury INDEPENDENT AUDITOR'S REPORT On PARTNERSHIP FOR MARKET READINESS Implemented by MINISTRY OF ENVIRONMENT AND URBANISATION Department Of Climate Changes And Financed Under World Bank Grant Agreement numbered TF-015591 (PMR-2) As of December 31, 2017 and For The Year Then Ended Report Number 90/2 -130/5 Prepared by: Nuri ATES Ethem AKIN Senior Treasury Controller Senior Treasury Controller 13 June 2018 TABLE OF CONTENTS 1. EXECUTIVE SUMMARY 2. INDEPENDENT AUDITOR'S REPORT & FINANCIAL STATEMENTS OF THE PROJECT 2.1. Independent Auditor's Report 2.2. Statement of Sources and Uses of Funds 2.3. Statement of Cumulative Investments 2.4. Statement of Requests for Reimbursement (SOE Statement) 2.5. Statement of Special Account 2.6. Notes to The Project Financial Statements 1. Objectives and Nature of the Project 2. Main Accounting Policies 3. Financial Declarations 4. Grant Agreement 5. Cash Availability At December 31 December, 2017 EXECUTIVE SUMMARY REPUBLIC OF TURKEY PRIME MINISTRY Undersecretariat of Treasury EXECUTIVE SUMMARY A. Project Summary The Grant Agreement for Turkey - Partnership For Market Readiness (PMR) (Implementation Phase) was put into effect being signed by The World Bank on December 17, 2013 and countersigned by the Undersecretariat of Treasury on behalf of Republic Of Turkey on December 30, 2013. The Implementation Phase of Partnership For Market Readiness covers the period spanning from the effective date of this Grant Agreement through its closing date which was determined to be June 30, 2017 originally and has been extended to June 30, 2018. The objective of the Grant is to assist the Republic of Turkey to implement its greenhouse gas Monitoring, Reporting, and Verification (MRV) pilot in the electricity sector, based on Turkey's MRV regulation, and to provide analytical information for the establishment of a carbon market in Turkey. The Grant Activities for the Implementation Phase consist of the following Parts: Part 1: Piloting the use of the MRV procedures within the electricity sector, and with other willing companies and stakeholders (such as accreditation bodies and verifiers) in other sectors including preparation of monitoring plans for the electricity sector, collection of data by the volunteering installations, and reporting and verification of such data, to identify potential problems in a timely fashion. Part 2: Conducting analytical studies to inform decision making on the use of market based instrument(s) (MBI), including, inter alia,(i) a study on use of an emission trading scheme for the electricity sector; (ii) a study on selection of MBIs and modeling for sectors covered and not covered by the MRV regulation; (iii) a study on Greenhouse Gas market modeling for selected sectors covered and not covered by the MRV regulation; and (iv) a synthesis report of the above mentioned studies for consideration by the CBCC and policy makers. Part 3: Carrying out stakeholder training, consultation/engagement and public awareness activities, including,, (i) conferences and workshops to support the activities under Parts 1 and 2; (ii) consultation meetings with stakeholders; and (iii) public awareness activities (media, high level public/private meetings, etc.). Part 4: Establishment of the project management unit to coordinate and support implementation of MRV and MBI activities. The International Bank For Reconstruction and Development, acting as administrator of grant funds provided by the contributors, has extended a grant in an amount of USD 3.000.000 to Republic of Turkey ("Recipient") for the Implementation Phase of the Partnership for Market Readiness. Out of the aforementioned amount provided by the Grant Agreement, USD 571.585,65 was spent during our audit period, namely the year 2017. The realized cumulative spending under the scope of the project as of December 31, 2017 occurred to be USD 2.011.797,63 B. Objectives of Audit The objectives of our audit are; a) To give an opinion on whether the financial statements, prepared as of December 31, 2017 and for the period then ended, present fairly, in all material respects, the financial position of the project in accordance with the cash receipts and disbursements basis of accounting, b) To determine, as of December 31, 2017, whether the Ministry of Environment And Urbanisation, Department of Climate Changes has complied, in all material respects, with the rules and procedures of the Grant Agreement numbered TF-015591, c) To examine whether adequate supporting documentation has been maintained to support claims to the World Bank for reimbursements of expenditures incurred with respect to SOEs and evaluate eligibility of these expenditures for financing under the Grant Agreement. C. Scope of Audit We have performed an audit of financial statements of Partnership for Market Readiness as of December 31, 2017 and for the period then ended in accordance with the cash receipts and disbursements basis of accounting. We have also performed a compliance audit on whether project activities are in line with the Grant Agreement. Our audit was conducted in accordance with International Standards on Auditing published by International Federation of Accountants (IFAC) applicable to the audit of financial statements and compliance auditing. There was no limitation in our scope for the Project's audit. D. Audit Results For the financial statements of project; our audit resulted with an unqualified opinion. As of December 31, 2017, Ministry of Environment and Urbanisation, Department of Climate Changes has complied, in all material respects, with the rules and procedures of the Grant Agreement numbered TF-015591. In addition, with respect to SOEs, adequate supporting documentation has been maintained to support claims to the World Bank for reimbursements of expenditures incurred; and which expenditures are eligible for financing under the Grant Agreement numbered TF-015591. E. Management Recommendations Since we have not identified any findings during our audit, we have not issued a Management Letter. INDEPENDENT AUDITOR'S REPORT & FINANCIAL STATEMENTS OF THE PROJECT REPUBLIC OF TURKEY PRIME MINISTRY Undersecretariat of Treasury INDEPENDENT AUDITOR'S REPORT TO MINISTRY OF ENVIRONMENT AND URBANIZATION, Department Of Climate Changes, ANKARA Opinion We have audited the Statement of Sources and Uses of Funds, Statement of Cumulative Investments, Statement of Requests for Reimbursement (SOE Statement) and Statement of Special Account of the Partnership For Market Readiness as of December 31, 2017, and for the period then ended, and a summary of significant accounting policies and other explanatory information. The financial statements have been prepared by Ministry of Environment and Urbanization, Department of Climate Changes based on relevant provisions of the Grant Agreement Numbered TF-015591. In our opinion; a) The accompanying Statement of Sources and Uses of Funds, Statement of Cumulative Investments, Statement of Requests for Reimbursement (SOE Statement) and Statement of Special Account present fairly, in all material respects, the financial position and accounting policies of the Partnership For Market Readiness as of December 31, 2017 and for the period then ended in accordance with the provisions of the Grant Agreement Numbered TF-015591. b) Ministry of Environment and Urbanization, Department of Climate Changes, as of December 31, 2017 has complied with, in all material respects, the requirements of the Grant Agreement Numbered TF-015591. c) With respect to SOEs, adequate supporting documentation has been maintained to support claims to the World Bank for reimbursement of expenditures incurred, and these expenditures are eligible for financing under the Grant Agreement Numbered TF-015591. Basis for Opinion We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the "Auditor's Responsibilities for the Audit of the Financial Statements" section of this report. We are independent of the Ministry of Environment and Urbanization, Department Of Climate Changes within the meaning of ethical requirements and have fulfilled our other responsibilities under those ethical requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Basis of Accounting and Restriction on Distribution and Use We draw attention to Note "2" to the financial statements, which describe the basis of accounting. The financial statements are prepared to assist the Ministry of Environment and Urbanization, Department Of Climate Changes to comply with the financial reporting provisions of the World Bank Grant Agreement Numbered TF-015591. As a result, the financial statements may not be suitable for another purpose. Our report is intended solely for the Ministry of Environment and Urbanization, Department Of Climate Changes, Undersecretariat of Treasury, and World Bank, and should not be distributed or used by other parties. Responsibilities of Management and Those Charged with Governance for the Financial Statements Ministry of Environment and Urbanization, Department of Climate Changes is responsible for the preparation and fair presentation of these financial statements in accordance with Grant Agreement Numbered TF-015591, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. * Those charged with governance are responsible for overseeing the Ministry of Environment and Urbanization, Department of Climate Changes' financial reporting process. * Auditor's Responsibilities for the Audit of the Financial Statements The objectives of our audit are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional skepticism throughout the planning and performance of the audit. We also: * Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. * Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. * Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. * Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We are also required to provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. Ahmet mit SUCU Acting Chairman of Board of Treasury Controllers Akif BClent BOYACIOGLU (Audit Partner) Vice-Chairman Nur ATES Ethem AKIN Senior Treasury Controller Senior Treasury Controller Date : June 13, 2018 Address: T.C. Baybakanhk Hazine Miiste§arhgi, Hazine Kontroldrleri Kurulu Ba kanligi, 06510 Ankara/TURKEY MINISTRY OF ENVIRONMENT AND URBANIZATION General Directorate of Environmental Management Department of Climate Change Grant Agreement for Market Readiness Proposal Partnership for Market Readiness (Implementation FundI2.Phase) Grant/Project No. TF015591 STATEMENT OF SOURCES and USES of FUNDS As of December 31, 2017 and For The Year Then Ended (In US Dollars) Actualized Planned Variance Notes YTD Cumulative YTD Cumulative YTD Cumulative I- SOURCES OF FUNDS A- Government Contribution 0,00 0,00 0,00 0,00 0,00 0,00 B- Other Sources of Funds 0,00 0,00 0,00 0,00 0,00 0,00 C- World Bank Funds (Grant) 615.753,18 2.188.320,90 525.921,06 2.266.133,04 89.832,12 -77.812,14 1- Direct Payment 0,00 0,00 0,00 0,00 0100 0,00 2- Special Account 615.753,18 2.188.320,90 525.921,06 2.266.133,04 89.832,12 -77.812,14 a- Advance 0,00 300.000,00 0,00 300.000,00 0,00 0,00 b- SOE Procedures 615.753,18 1.888,320,90 525.921,06 1.966.133,04 89.832,12 -77.812,14 c- Summary Sheet 0,00 0,00 0,00 0,00 0,00 0,00 D- Refunds to Special Account 0,00 0,00 0,00 0,00 0,00 0,00 TOTAL FUNDS RECEIVED 615.753,18 2.188.320,90 525.921,06 2.266.133,04 89.832,12 -77.812,14 II- USES OF FUNDS Component-A: Implementation of an MRV pilot in the elecricty, afiery nd emen setor0,00 691 .864,34 0,00 691 .864,34 0,00 0,00 electricity, rafinery and cement sector 1- Preperation of Monitoring Plans and Monitoring Reports- Sector I (Electricity Sector) (I M RV-11.1) 0,00 194.999,73 0,00 194.999,73 0,00 0,00 2- Preperation of Monitoring Plans and Monitoring Reports-Sector II (Refinery Sector) (IMRV-1 1.2) 0,00 42.008,00 0,00 42.008,00 0,00 0,00 3- Preperation of Monitoring Plans and Monitoring Reports-Sector III (Cement Sector) (IMRV-1 1.3) 0,00 96.760,00 0,00 96.760,00 0,00 0,00 4- Verification of Monitoring Reports-Sector I (IMRV-1 1.4) 0,00 183.741,55 0,00 183.741,55 0,00 0,00 5- Verification of Monitoring Reports-Sector II and III (IMRV-11.5) 0,00 174.355,06 0,00 174.355,06 0,00 0,00 Component-B: Analytical Work to Inform Decision Making 361.736,02 722.279,36 384.409,10 744.952,44 -22.673,08 -22.673,08 on the Use of Market Based Instrument(s) (MBI) 1- Report on Consideration of ETS for the Electricity Sector ncluding emission benchmark study and ETS Design (DoMBI(s)-2 43.499,52 289.996,80 43.499,52 289.996,80 0,00 0,00 2- Report on Recommendations for Selection of MBls and Modelling (DoMBI(s)-3 171.069,08 285.115,14 171.069,08 285.115,14 0,00 0,00 3- Report on GHG Market Modelling Outcomes for Selected Sectors (DoMBI(s))-4 87.300,83 87.300,83 69.840,50 69.840,50 17.460,33 17.460,33 4- MBIs for GHG Emission Reduction Objective - Policy Options and Recommendations Report (DoMBI(s))-5 29.997,96 29.997,96 50.000,00 50.000,00 -20.002,04 -20.002,04 5- Consultancy for the training of Stakeholders (gov. and business representatives, operators, verifiers consultants, etc.)(DoMBI(s))-6 29.868,63 29.868,63 50.000,00 50.000,00 -20.131,37 -20.131,37 Component-C: Stakeholder Training, Conuon/eng.t nd Puic 87.515,74 178.545,51 155.226,85 246.256,62 -67.711,11 -67.711,11 Consultation/Engagement and Public Awareness Activities 1- Public Awareness Activities (Media activities, high level public/private meetings etc.) (Stakeholder Consultation/Engagement and Public Awareness Activities -web page) (DoMBI(s))-9 0,00 0,00 0,00 0,00 0,00 0,00 2- TA for Public Awareness and Communication (DoMBI(s)-9a) 0,00 0,00 0,00 0,00 0,00 0,00 3- Preparation of web page and visuals for PMR Project (DoMBI(s)-9b) 2.144,14 7.594,29 2.144,14 7.594,29 0,00 0,00 4-Design and preparation of outreach documents such as broschures, posters, and reports (DoMBI(s)-9c) 0,00 0,00 29.114,06 29.114,06 -29.114,06 -29.114,06 5- Project Introduction Meeting and Workshop (DoMB[(s)-7a) 0,00 13.083,03 0,00 13.083,03 0,00 0,00 6- PMR Project Coordination Workshop (DoMBI(s)-7b) 0,00 939,91 0,00 939,91 0,00 0,00 7- PMR Workshops (DoMBI(s)-2 and DoMBI(s)-3) and MRV Lessons Learnt Workshop (DoMBI(s)-7c) 0,00 38.372,99 0,00 38.372,99 0,00 0,00 8- PMR Workshops for DoMBI(s) Contracts (DoMBI(s)-7e) 2.529,97 35.713,66 2.529,97 35.713,66 0,00 0,00 9- Meetings with private sector, NGOs, media representatives and academicians to increase public awareness by introducing the outcomes of PMR Project (DoMBI(s)-7f) 0,00 0,00 30.000,00 30.000,00 -30.000,00 -30.000,00 10- Workshops for DoMBI(s)-3, DoMBI(s)-4 and Paris Agreement (Article 6) Discussions (DoMBI(s)-7g) 42.216,69 42.216,69 42.216,69 42.216,69 0,0,0 0,00 О О С7 С? 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CL, iL О Q п�5 t�t5 г �э U ао {а ��- cv м � ui и t- U U MINISTRY OF ENVIRONMENT AND URBANIZATION General Directorate of Environmental Management Department of Climate Change Grant Agreement for Market Readiness Proposal Partnership for Market Readiness (implementation Fund/2.Phase) Grant/Project No: TF01 5591 STATEMENT OF CUMULATIVE INVESTMENTS As of December 31, 2017 and for the Year Then Ended (in US Dollars) 1- INVESTMENTS Component Name Actualized Planned Variance YTD Cumulative YTD Cumulative YTD Cumulative I- INVESTMENTS COSTS Component-A: Implementation of an MRV pilot in the electricity, 0,00 691.864,34 0,00 691,864,34 0,00 0,00 rafinery and cement sector 1 - Preperation of Monitoring Plans and Monitoring Reports- Sector I (Electricity Sector) (I MRV-1 1. 1) 0,00 194.999,73 0,00 194,999,73 0,00 0,00 2- Preperation of Monitoring Plans and Monitoring Reports-Sector 11 (Refinery Sector) (IMRV-1 1.2) 0,00 42.008.00 0,00 42.008,00 0,00 0,00 3- Preperation of Monitoring Plans and Monitoring Reports-Sector III (Cement Sector) (IMRV-11.3) 0,00 96.760,00 0,00 96.760,00 0,00 0,00 4- Verification of Monitoring Reports-Sector I (IMRV-1 1.4) 0,00 183,741,55 0.00 183.741,55 0,00 0,00 5- Verification of Monitoring Reports-Sector 11 and 111 (IMRV-1 1.5) 0,00 174,355,06 0,00 174,355,06 0,00 0,00 Component-B: Analytical Work to Inform Decision Making on the Use 361.736,02 722.279,36 384,409,10 744.952,44 -22.673,08 -22.673,08 of Market Based Instrument(s) (MBI) I - Report on Consideration of ETS for the Electricity Sector ncluding emission benchmark study and ETS Design (DoMBI(s)-2 43.499,52 289.996,80 43.499,52 289.996,80 0,00 0,00 2- Report on Recommendations for Selection of MBls and Modelling (DoMBI(s)-3 171.069,08 285.115,14 171,069,08 285.115,14 0,00 0,00 3- Report on GHG Market Modelling Outcomes for Selected Sectors (DoMBI(s))-4 87.300,83 87.300,83 69.840,50 69.840,50 17,460,33 17.460,33 4- M131s for GHG Emission Reduction Objective - Policy Options and Recommendations Report (DoMBI(s))-5 29.997,96 29,997,96 50.000,00 50.000,00 -20.002,04 -20.002,04 5- Consultancy for the training of Stakeholders (gov. and business representatives, operators, verifiers consultants, etc.)(DoMBI(s))-6 1 29.868,63 29 868,631 50.000,00 50.000,00, -20,131,37 -20.131,371 Component-C: Stakeholder Training, Consultation/Engagement and 87.515,74 178.545,51 155.226,85 246.256,62 -67.711,11 -67.711,11 Public Awareness Activities 1- Public Awareness Activities (Media activities, high level public/private meetings etc.) (Stakeholder Consultation/Engagement and Public Awareness Activities -web page) (DoMBI(s))-9 0,00 0,00 0,00 0,00 0,00 0,00 2- TA for Public Awareness and Communication (DoMBI(s)-9a) 0,00 0,00 0,00 0,00 0,00 0,00 3- Preparation of web page and visuals for PMR Project (DoMBI(s)-9b) 2.144,14 7.594,29 2.144,14 7.594,29 0,00 0,00 4-Design and preparation of outreach documents such as broschures, posters, and reports (DoMBI(s)-9c) 0,00 0,00 29.114,06 29.114,06 -29.114,06 -29.114,06 5- Project Introduction Meeting and Workshop (DoMBI(s)-7a) 0.00 13,083,03 0,00 13.083,03 0,00 0,00 6- PMR Project Coordination Workshop (DoMBI(s)-7b) 0,00 939,91 0,00 939,91 0,00 0,00 7- PMR Workshops (DoMBI(s)-2 and DoMBI(s)-3) and MRV Lessons Learnt Workshop (DoMBI(s)-7c) 0,00 38.372,99 0,00 38.372,99 0,00 0,00 8- PMR Workshops for DoMBI(s) Contracts (DoMBI(s)-7e) 2.529,97 35.713,66 2.529,97 35.713,66 0,00 0,00 9- Meetings with private sector, NGOs, media representatives and academicians to increase public awareness by introducing the outcomes of PMR Project (DoMBI(s)- 7f) 0,00 0,00 30.000,00 30.000,00 -30.000,00 -30.000,00 10- Workshops for DoMBI(s)-3, DoMBI(s)-4 and Paris Agreement (Article 6) Discussions (DoMBI(s)-7g) 42.216,69 42.216,69 42.216,69 42.216,69 0,00 0,00 11- Logistical services for meeting with related stakeholders for consultation of iMRV and DoMBI(s) (Stakeholder Consultation/Engagement and Public Awareness Activities )(DoMBI(s)-8) 40.624,94 40.624,94 49.221,99 49.221,99 -8.597,05 -8.597,05 Component-D: Coordination and Expert Support for the 122.333,89 419.108,42 118.640,85 415.415,38 3.693,04 3.693,04 Implementation of MRV and MBIs 1- Project Coordinator (PIU-1) 0,00 35.787,76 0,00 35.787,76 0,00 0,00 2- Project Technical Coordinator (PIU-1 a) 44.839,58 130.868,14 43.188,56 129.217,12 1.651,02 1.651,02 3- Project Assistant (PIU-2) 23.628,68 91.464,20 22.758,46 90.593,98 870,22 870,22 4- Procurement expert (PIU-3) 18.091,55 35.886,98 17.237,11 35,032,54 854,44 854,44 5- Financial Management and Disbursement Specialist (PIU-1) 18.694,90 78.386,14 18.377,54 78.068,78 317,36 317,36 6- Operating Costs 17.079,18 46.715,20 17.079,18 46.715,20 0,00 0,00 TOTAL INVESTMENTS COSTS 571.585,65 2.011.797,63 658.276,80 2.098.488,78 -86.691,15 -86.691,15 II- RECURRING COSTS A- Financing Expenditures 0,00 0,00 0,00 0,00 0,00 0,00 B- General Management Expenditures 0,00 0,00 0,00 0,00 0,00 0,00 C- Exchange Rate Differences 0,00 0,00 0,00 0,00 0,00 0,00 TOTAL RECURRING COSTS 0,00 0,00 0,00 0,00 0,00 0,00 PROJECT INVESTMENTS 571.585,65 2.011.797,63 658.276,80 2.098.488,78 -86.691,15 -86.691,15 2- INVESTMENTS BY SUB-CATEGORIES Category Name Actualized Planned Variance YTD Cumulative YTD Cumulative YTD Cumulative 11- CONSULTANTS SERVICES INCLUDING AUDIT, TRAINING AND WORKSHOPS AND STAKEHOLDER CONSULTATIONS 554.506,47 1.965.082,53 641.197,62 2.051.773,58 -86.691,15 -86.691,05 1.1- Preperation of Monitoring Plans and Monitoring Reports- Sector I (Electricity Sector) (IMRV-11.1) 0,00 194.999,73 0,00 194.999,73 0,00 0,00 1.2- Preperation of Monitoring Plans and Monitoring Reports-Sector II (Refinery Sector) (IMRV-1 1.2) 0,00 42.008,00 0,00 42.008,00 0,00 0,00 1.3- Preperation of Monitoring Plans and Monitoring Reports-Sector Ill (Cement Sector) (IMRV-1 1.3) 0,00 96.760,00 0,00 96.760,00 0,00 0,00 1.4- Verification of Monitoring Reports-Sector I (IMRV-1 1.4) 0,00 183.741,55 0,00 183.741,55 0,00 0,00 1.5- Verification of Monitoring Reports-Sector II and Ill IMRV-11.5) 0,00 174.355,06 0,00 174.355,06 0,00 0,00 1.6- Report on Consideration of ETS for the Electricity Sector ncluding emission benchmark study and ETS Design (DoMBl(s)-2 43.499,52 289.996,80 43.499,52 289.996,80 0,00 0,00 1.7- Report on Recommendations for Selection of MBls and Modelling (DoMBI(s))-3 171.069,08 285.115,14 171.069,08 285.115,14 0,00 0,00 1.8- Report on GHG Market Modelling Outcomes for Selected Sectors (DoMBI(s))-4 87.300,83 87.300,83 69.840,50 69.840,50 17.460,33 17.460,33 1.9- MBIs for GHG Emission Reduction Objective - Policy Options and Recommendations Report (DoMBI(s))-5 29.997,96 29.997,96 50.000,00 50.000,00 -20.002,04 -20.002,04 1.10- Consultancy for the training of Stakeholders (gov. and business representatives, operators, verifiers consultants, etc.)(DoMBI(s))-6 29.868,63 29.868,63 50.000,00 50.000,00 -20.131,37 -20.131,37 1.11- Public Awareness Activities (Media activities, high level public/private meetings etc.) (Stakeholder Consultation/Engagement and Public Awareness Activities -web page) (DoMBI(s))-9 0,00 0,00 0,00 0,00 0,00 0,00 1.12- TA for Public Awareness and Communication (DoMBI(s)-9a) 0,00 0,00 0,00 0,00 0,00 0,00 1.13- Preparation of web page and visuals for PMR Project (DoMBI(s)-9b) 2.144,14 7.594,29 2,144,14 7.594,29 0,00 0,00 1.14-Design and preparation of outreach documents such as broschures, oosters, and reports (DoMBl(s)-9c) 0,00 0,00 29.114,06 29.114,06 -29.114,06 -29.114,06 :ы,,... , о о о о о о и о с�ь с� � ш а о о о о цэ ;'Т . г о о о о о о о о c.i v гз �ь о о о о о ,?ь О о О С7 до О � С7 � О � г С} о С] О© �r � С7 lГЭ fQ � 00 М � .�-. 1S1 о ai s,ti �У ш � � "� � i _ т с� о r� о о о сга о cv с� tr ся о о о �о о и �" �ёа а с7 о сз о о о с� сэ о cv � м, о сз о о о s- `'< �� а сз г� о о о г� о о � г� а�© о о �- еу о � с`�s� о�'-о � со cD� ��� О OQ г ',,, � N � � 2 � :� С`7 м СЛ fD Q � б) Ci) N IX3� �1' 00 СЭ {Ч �' N CV 4' дС Q f37 67 fD О lS? б? f+ ч�- О�' �С7 f`� �у �П 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С и С � � У� U,��. � а � �i (� � i ` i L S] i f1 С+- Z пу Q -� р а О {3 Q и_ О х сгз с� cti и�� р � v р � о� � � С1 � �' и и �,иу т о с� ^ г� - т� - ш т ш � С- а� J." �. ш� и т С т т т С т � ш.�тм� Q аз� и ��.� ��� � � п�� �Ф � И� � i� � и р и 3 r- а��, г� р-�з г� �с � гз 3- � а С � С а � ш а- ,} т� о р� С® С С С а С С� с,г� С-о Г� т� ц ш t�- � и ч- .� [� sв � сц гв L гв � с� ��� cll а о и г и � � � rл ° - `л С ¢ а � - � ,...» � Q � а� ? � � х гз а с� а� о а, аэ ._.. ❑ т � tв и�0 t� � СС С LY ц �_ сл � Q cll С� ���❑��_ �т `о Q '�� ш а�'�� �� °'� с��т �и �О а i� и и• .��'��] ш� С ��sч-•глч- �ч- �ч-Uр � х� _- а.� а.� 3 а о� и� �°а О�, О� сэ ш а� с3 � сб Ш С '�� о в� о и�® о и пs й� U� F° � Q �� � са � г в~ о L j CL � х� � С �у й о � � U а �ч а t'а � а�г.� Ш 'п �. .а(�i� о[���•'�.аэУ�rл .� о ц.ais�°�.c-�s Ut т�4 �.в_ с-�пс tL L�L � � д � [з � � 4 п s5 � ,� � ,и а .� а ,и � .� � � С -о � сз � С [��д�д,�[L�i.L�u� �Z �с��п � i в � С � 4' � гЛ � С Q., � � i � ь ,({� я � � � CL . i ~,� Н ц5 С4 1�- � 00 f}? �� О[j г С Т3 N+-' С"� +--� 'д' �--° li� +-� SS а--� (} �� i i г�r г г Т � l^J С�Е N и N и N и' CV и N и_ г 4 3�7 т Т г J г Т(а43 д r(f� г� П} г LL1 г LЭJ г L1J г LE'� г Ш N N N N{`r9 � MINISTRY OF ENVIRONMENT AND URBANIZATION General Directorate of Environmental Management Department of Climate Change Grant Agreement for Market Readiness Proposal Partnership for Market Readiness (implementation Fund/2.Phase) Grant/Project No: TF015591 STATEMENT OF REQUESTS FOR DISBURSEMENT (SOE STATEMENT) For The Year Ended on December 31, 2017 (in US Dollars) I- REQUESTS REIMBURSED Disbursement Categories Appl. Date Appl. No. I- Consulting 2- Operating Total Amount Date of Services Cost Paid Payment 19.01.2017 MRV-14 162.161,73 5.482,53 167,644,26 167.644,26 14 02.2017 31,05.2017 MRV-15 226 999,91 1.386,96 228.386,87 228.386,87 09.06.2017 24.08.2017 MRV-16 101.217,63 2.417,67. 103.635,30, 103.635,30 14.09.20i7 07.12.2017 MRV-17 1 104.435,31 11.651,441 116,086,751 116.086,751 20.12.20 17 _§ub total 1 594.814,58 20.938,601 615.753,181 615.753,181 [I- REQUESTS PENDING REIMBURSEMENT Disbursement Categories Appl. Date Appl. No. I-Consulting 2-Operating Total Amount Date of Services Cost Paid Payment 0,00 0,00 0,00 0,00 0,00 Sub total III- TOTAL AMOUNT REQUESTED 1 - Consulting 2- Operating Total Amount Services Cost Paid 594.814,58 20.938,60 615.753,18 615.753,18 NOTES: No withdrawal request was made In the form of SOE during the year. Tu§ba il;MELi Mehrali ECER Branch Managerl. Head of Department MINISTRY OF ENVIRONMENT AND URBANIZATION General Directorate of Environmental Management Department of Climate Change Grant Agreement for Market Readiness Proposal Partnership for Market Readiness (Implementation Fund/2.Phase) Grant/Project No: TF015591 SPECIAL ACCOUNT STATEMENT ACCOUNT NO AT CENTRAL BANK: 94 07 01 023 For the Year Ended December 31, 2017 (in US Dollars) Opening Balance 132.355,74 Reimbursements to SA 615.753,18 a) Advance 0,00 b) SOE Procedure 615.753,18 c) Summary Sheet 0,00 Refunds to Special Account 0,00 Available Funds 748.108,92 Payments Made for Expenditures 571.585,65 Service charges for the account 0,00 Total Project Investments 571.585,65 Closing Balance 176.523,27 Tugba iQMELi Mehrali ECER Branch ManagerY Head of Department MINISTRY OF ENVIRONMENT AND URBANIZATION General Directorate of Environmental Management Grant Agreement for Market Readiness Proposal Partnership for Market Readiness (Implementation Fund/2.Phase) (Grant/Project No: TF015591) NOTES TO THE PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2017 1. OBJECTIVES AND NATURE OF THE PROJECT The objective of the Grant is to assist the Recipient to implement its greenhouse gas Monitoring, Reporting, and Verification (MRV) pilot in the electricity sector, based on Turkey's MRV regulation, and to provide analytical information for the establishment of a carbon market in Turkey. The Grant Activities consist of the following Parts: Part 1: Piloting the use of the MRV procedures within the electricity sector, and with other willing companies and stakeholders (such as accreditation bodies and verifiers) in other sectors including preparation of monitoring plans for the electricity sector, collection of data by the volunteering installations, and reporting and verification of such data, to identify potential problems in a timely fashion. Part 2: Conducting analytical studies to inform decision making on the use of market based instrument(s) (MBI), including, inter alia,(i) a study on use of an emission trading scheme for the electricity sector; (ii) a study on selection of MBIs and modeling for sectors covered and not covered by the MRV regulation; (iii) a study on Greenhouse Gas (GHG) market modeling for selected sectors covered and not covered by the MRV regulation; and (iv) a synthesis report of the above mentioned studies for consideration by the CBCC and policy makers. Part 3: Carrying out stakeholder training, consultation/engagement and public awareness activities, including,, (i) conferences and workshops to support the activities under Parts 1 and 2; (ii) consultation meetings with stakeholders; and (iii) public awareness activities (media, high level public/private meetings, etc.). Part 4: Establishment of the project management unit to coordinate and support implementation of MRV and MBI activities. The International Bank for Reconstruction and Development ("World Bank"), acting as administrator of grant funds provided by contributors ("Contributors") under the Partnership for Market Readiness Multi-Donor Trust Fund, has agreed to provide a grant amounting to three hundred and fifty thousand (3.000.000) United States Dollars. The Closing Date of the Project shall be 31 June 2017. Project is structured under General Directorate of Environmental Management Department of Climate Change and it is conducted through below mentioned officials with coordination of Head of Department. No Title Number of Employment Type personnel I lead of Division I Civil Servant 2 Environment and Urbanization Civl Servant Expert 3 City Planner I Civil Servant 3 Project Technical Coordinator I Individual Consultant (Service Contract) 4 Project Assistant I Individual Consultant (Service Contract) 5 Procurement Specialist I Individual Consultant (Service Contract) 6 Financial Maniagenent and I Individual Consultant (Service Contract) Disbursement Specialist r--T Total 7 2. MAIN ACCOUNTING POLICIES a) Project is financed by The International Bank for Reconstruction and Development ("World Bank"), acting as administrator of grant funds provided by contributors ("Contributors"). b) Payments under the Project are done directly to the enterprises from Special Account. c) Accounts are kept according to "Regulation on accounting and disbursement principles for Project funds granted by the European Union or International Organizations to Public Administration" issued by Ministry of Finance on the Official Gazette dated November 27, 2007 and Nbr. 26713. d) All data and records of the Project, related to project activities and disbursements as well as the relevant documentation are kept in the Office of the Climate Change Management Department. 3. FINANCIAL DECLARATIONS (RESTRICTED USE OF FUNDS AND OTHER ASSETS) Pursuant to the Grant Agreement signed between the Undersecretariat of Treasury and the World Bank, the funds in the Special Account can only be spent for the achievement of project objectives. The funds not disbursed as of project completion will be transferred to the Undersecretariat of Treasury to be returned to the World Bank in accordance with the provisions of Grant Agreement. 4. Grant Agreement Republic of Turkey is not obliged to any repayment in accordance with the Grant Agreement. 5. CASH AVAILABILITY AT DECEMBER 31, 2017 Cash available at December 31, 2017, expressed in US dollars, included: Special Loan Account Balance (TCMB) :176.523,27 TOTAL :176.523,27 Tuaba iCMELi Mehrali ECER Branch Manager f. Head of Department