“Environmental land management and rural livelihoods project” Grant No. GEF TF 014521, Grant No. PPCR TF 014523, Grant No. IDA D085-TJ, Grant No. PPCR TF 0A0431 Special purpose project financial statements for the year ended December 31, 2016 and independent auditors’ report “ENVIRONMENTAL LAND MANAGEMENT AND RURAL LIVELIHOODS PROJECT” GRANT NO. GEF TF 014521, GRANT NO. PPCR TF 014523, GRANT NO. IDA D085-TJ, GRANT NO. PPCR TF 0A0431 TABLE OF CONTENTS Page STATEMENT OF MANAGEMENT’S RESPONSIBILITIES FOR THE PREPARATION AND APPROVAL OF THE SPECIAL PURPOSE PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31, 2016 2 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 8-19 STATEMENT OF MANAGEMENT'S RESPONSIBILITIES FOR THE PREPARATION AND APPROVAL OF THE SIPECIAL PURPOSE PROJECT FINANCIAL STATEMENTS FOR THE YEAR ENDED DECEMBER 31. 2016 The following statement, which should be read in conjunction with the independent auditors' responsibilities stated in the independent auditors' report set out on pages 3-5, is made with a view to distinguish the respective responsibilitier; of management and those of the independent auditors in relation to the special purpose project financial statements of "Environmental land management and rural livelihoods project", Grant No. GEF TF 01452I, Grant No. PPCR TF 014523, Grant No. IDA D085-TJ, Grant No. PPCR TF 04043 I (the "Project"). Management is responsible for the preparation of the special purpose project financial statements that present fairly, in all material respects, cash proceeds and disbursements and uses of funds by project components of the Project for the year ended December 3I,2016 in accordance with International Fublic Sector Accounting StandaLrd "Financial Reporting Under the Cash Basis of Accounting" (the "IPSAS") issued by the International Public Accounting Standards Board of the International Federation of Accountants and the World Bank's Financial Management Sector Board's "Guidelines: Annual Financial Reporting and Auditing for World Bank Financed Activities" (the "WB Guidelines"). In preparing the special purpose project financial statements, management is responsible for: o selecting suitable accounting policies and applying them consistently; . making judgments and estimates that are reasonable and prudent; o stating whether IPSAII and WB Guidelines have been followed, subject to any material departures disclosed and explained in the special purpose project financiai statements; and o preparing the special purpose project financial statements on a going concern basis, unless it is inappropriate to presurne that the Project will continue its activity for the foreseeable future. Management is also responsible for: . designing, implementing and maintaining effective and sound system of internal control and for revealing risks in system of internal control; maintaining proper accounting records that disclose, with reasonable accuracy at any time, the financial position of the Project, and which enable them to ensure that the special purpose project financial statements of the Project comply with IPSAS and WB Guidelines; compliance with lawr; and regulations of the Republic of Tajikistan, accounting system of the Project and the requirements of the World Bank; a taking such steps as are reasonably available to them to safeguard the assets ofthe Project; and a detecting and preventirrg fraud and other inegularities. The special purpose project financial statements for the year ended December 31,2016 were approved and authorized for issue on March 3,2017 by the Management of the Project. If of the Managemen Chief accountant March 3,2077 Republic of Tajikistan Dushanbe, Republic of Tajikistan ,.ENVIRONMENTAL L/IND MANAGEMENT AND RURAL !.IVELIHOODS PROJECT'' GRANT NO. GEF TF 0114521, GRANT NO. PPCR TF 014523, GRANT NO. IDA DO8s-TJ, GRANT NO. PPCR TF OAO431 STATEMENT OF CASH PIROCEEDS AND DISBURSEMENTS FOR THE YEAR ENDED IDECEMBER 31,20'16 (in US Dollars) Notes For the year Cumulative For the year Cumulative ended ended December 31, December 31, 2016 2015 Opening balance 128,954 371,029 Funds received Grant No. GEF TF 014521 6 1,892,743 3,239,521 946,778 1,346,779 Grant No. PPCR TF 014523 6 3,463,934 5,405,393 1,321,958 tr,941,559 Grant No. D085-TJ 6 35 1,1 59 35 l,159 Grant No. PPCR TF 040431 6 Total funds received 5.707.736 8.996.073 2,269,736 3,299,337 Project expenses Goods, works, consultants' services and training 5 5,079,470 2,205,333 2,450,992 Incremental operating costs and training (except for vehicles) ) 313,887 310,746 602,936 Incremental operating costs for purchase of vehicles 5 i 10.710 Total project expenses __s3e33s1_ ___2,5163'9 _3J64,O8_ Foreign exchange rates (losses)/gain (15,347\ 5,269 5,245 Closing balance 427.986 427.986 _1289s4_ 128.954 ii "'v*t''t Chief accountant March 3,2017 March 3,2017 Dushanbe, Republic of Tajikistan Dushanbe, Republic of Tajikistan The notes on pages 8-19 form an integral part ofthe special purpose project financial statements. The Independent Auditors' Report is on pages 3-5. ..ENVIRONMENTAL LA'ND MANAGEMENT AND RURAL LIVELIHOODS PROJECT'' GRANT NO. GEF TF 014521, GRANT NO. PPCR TF 014523, GRANT NO. IDA DO8s.TJ, GRANT NO. PPCR TF OAO431 STATEMENT OF USES OF FUNDS BY PROJEGT COMPONENTS FOR THE YEAR ENDED DECEMBER 31,2016 (in US Dollars) For the year Cumulative For the year Cumulative ended ended December 31, December 31, 2016 2015 Componnent I: Rural Production and Land Resource Management Investments 3,726,712 947,065 Componnent II: Knowledge Management and Institutional Support r,352,759 r,259,267 Componnent III: Project Management and Coordination 3 13,887 310,746 5,393,357 ::r-: 2.5r6.079 On behalf of the Management: Chief accountant March 3,2017 Dushanbe, Republic of Tajiikistan Dushanbe, Republic of Tajikistan The notes on pages 8-19 form an integral part ofthe special purpose project financial statements. The Independent Auditors' Report is on pages 3-5. “ENVIRONMENTAL LAND MANAGEMENT AND RURAL LIVELIHOODS PROJECT”- GRANT NO. GEF TF 014521, GRANT NO. PPCR TF 014523, GRANT NO. IDA D085-TJ, GRANT NO. PPCR TF 0A0431 NOTES TO THE SPECIAL PURPOSE PROJECT FINANCIAL STATEMENTS FOR THE YEAR 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”) acting as an Implementing Agency of the Global Environment Facility (the “GEF”) dated June 11, 2013, the IDA provided a Grant No. TF 014521 in the amount of 5,400,000 US Dollars (the “USD”) to the Republic of Tajikistan. In accordance with the Agreement between the Republic of Tajikistan and International Bank for Reconstruction and Development (the “IBRD”) acting as an Implementing Entity of the Pilot Program for Climate Resilience of the Strategic Climate Fund (the “PPCR”) dated June 11, 2013 and January 22, 2016, the IBRD provided to the Republic of Tajikistan a Grant No. TF 014523 and Grant No. TF 0A0431 in the amount of 9,450,000 USD and 2,000,000 USD, respectively. According to the Agreement between the Republic of Tajikistan and International Development Association (the “IDA”) on January 22, 2016 the IDA provided additional financing Grant No. IDA D085-TJ in the amount 600,000 Special Drawing Rights (“SDR”). The Grants were provided for implementation of the “Environmental Land Management and Rural Livelihoods Project” (the “Project”). The effective date of the Project is October 3, 2013. Project purpose The objective of the Environmental Land Management and Rural Livelihoods Project for Tajikistan is to enable rural people to increase their productive assets in the ways that improve natural resource management and resilience to climate change in the selected climate vulnerable sites. The Project is implemented during 2013-2018, and comprises 3 components: 1. Component I: Rural Production and Land Resource Management Investments 2. Component II: Knowledge management and institutional support 3. Component III: Project management and coordination Component I: Rural Production and Land Resource Management Investments This component consists of 2 subcomponents: Subcomponent 1.1.: Sustainable village-based rural production and land resource management (financing from IDA in the amount of 2,010,000 US Dollars; financing from IBRD in the amount of 4,500,000 US Dollars; financing from beneficiary in the amount of 1,627,500 US Dollars). This subcomponent provides small-scale Sub-grants at the village level to Common Interest Groups to implement: i. rural production investments; ii. land resource management investments; iii. related small-scale infrastructure investments 8 Subcomponent 1.2.: Larger-scale initiatives in sustainable community land management (financing from IDA in the amount of 490,000 US Dollars; financing from IBRD in the amount of 1,110,000 US Dollars; financing from beneficiary in the amount of 400,000 US Dollars). This subcomponent provides: i. Sub-grants to Jamoat-level Pasture User Groups to implement participatory pasture and livestock management plans and for Training and provision of office equipment and furnishings for Pasture User Groups; ii. Sub-grants to Water User Associations to implement plans for sustainable on-farm water management practices in irrigated cropland and for Training and provision of office equipment and furnishings for Water User Associations. Component II: Knowledge Management and Institutional Support Subcomponent 2.1.: Facilitation support and technical advice. This subcomponent includes: i. Preparation, appraisal, implementation and monitoring or rural investment and pasture and on-farm water management plans for Subprojects financed under Component I of the the Project; ii. Supporting community-based agencies to provide technical advisory service to farmer groups and other village-based organizations Subcomponent 2.2.: Training, analysis, dissemination and networking. This subcomponent includes: i. Supporting Project orientation phase to share Project goals, approaches and activities with Project partners and key stakeholders, including field visits; ii. Improving skills and knowledge in key topics such as environmental assessment and monitoring, integrated land, water and grazing management, integrated pest management, soil quality and climate change adaptation; iii. Supporting analytical work to provide guidance for the design and sustainability of rural investments and Project evaluation at project mid-term and completion; iv. Supporting of dissemination of Project information and networking among stakeholders to increase awareness of sustainable land management (SLM) knowledge through exchange and learning between Project sites and with similar initiatives, including farmer to farmer exchanges, the use of information and communications technology (ICT) tools, and the use of regional SLM platforms; v. (a) Supporting an initial assessment of the ICT environment and infrastructure; and (b) Conducting a needs-assessment training to ensure that capacity building interventions are designed and targeted appropriately for the range of participants; vi. Supporting the preparation and implementation of a plan to ensure financial, technical and organizational sustainability of th Project. The total financing for Component II from IDA in the amount of 2,400,000 US Dollars, financing from IBRD in the amount of 2,340,000 US Dollars. On January 22, 2016 were signed agreements for additional financing of the Sub-Component 1.2 and Sub-Component 2.1 of the project for total amount of 600,000 SDR from IDA and Sub-Component 2.2 of the project for total amount of 2,000,000 US Dollars from IBRD. 9 Component III: Project Management and Coordination This component provides support for the Project Implementation through financing Incremental Operating Costs of the Implementation Group within CEP and its district offices to carry out procurement, financial management, coordination, reporting, and Project monitoring and evaluation (financing from IDA in the amount of 500,000 US Dollars; financing from IBRD in the amount of 1,500,000 US Dollars). Project management The Committee on Environmental Protection is the authorized body responsible for the preparation and implementation of the Project. Duration of the Project is from June 11, 2013 to May 31, 2018. 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 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 approach income (or expenditure) is recognized when cash is received (or paid) irrespective of when goods or services are received. 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. 10 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. 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 or through direct payment to the end supplier of goods and/or services. 4. CASH AND CASH EQUIVALENTS Cash and cash equivalents as at December 31, 2016, and 2015 comprise: December 31, December 31, 2016 2015 Special account Grant No.PPCR TF 014523 202,435 138 Special account Grant No. GEF TF 014521 173,465 128,800 Special account Grant No. IDA D085-TJ 52,069 - Cash on hand Grant No.PPCR TF 014523 6 9 Cash on hand Grant No.GEF TF 014521 5 4 Transit account Grant No. IDA D085-TJ 2 - Transit account Grant No.GEF TF 014521 1 1 Transit account Grant No.PPCR TF 014523 1 1 Cash on hand in foreign currency Grant No. GEF TF 014521 1 - Cash on hand in foreign currency Grant No. PPCR TF 014523 1 1 427,986 128,954 11 5. 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 grants is presented as follows: GOODS, WORKS, CONSULTANTS' SERVICES AND TRAININGS FOR SUBCOMPONENT 1.1 For the year ended December 31, 2016 Cumulative Grant Grant Grant Grant Total Grant Grant Grant Grant Total No. GEF No. PPCR No. IDA No. PPCR No. GEF No. PPCR No. IDA No. PPCR TF 014521 TF 014523 D085-TJ TF 0A0431 TF 014521 TF 014523 D085-TJ TF 0A0431 Small grants to project beneficiaries on farm productivity 396,199 871,639 - - 1,267,838 429,246 944,330 - - 1,373,576 Small grants to project beneficiaries on land resource management 344,760 758,471 - - 1,103,231 370,815 815,800 - - 1,186,615 Small grants to project beneficiaries on rural infrastructure 124,768 274,490 - - 399,258 146,051 321,312 - - 467,363 865,727 1,904,600 - - 2,770,327 946,112 2,081,442 - - 3,027,554 For the year ended December 31, 2015 Cumulative Grant Grant Total Grant Grant Total No. GEF No. PPCR No. GEF No. PPCR TF 014521 TF 014523 TF 014521 TF 014523 Small grants to project beneficiaries on farm productivity 33,047 72,691 105,738 33,047 72,691 105,738 Small grants to project beneficiaries on land resource management 26,055 57,329 83,384 26,055 57,329 83,384 Small grants to project beneficiaries on rural infrastructure 21,283 46,822 68,105 21,283 46,822 68,105 80,385 176,842 257,227 80,385 176,842 257,227 GOODS, WORKS, CONSULTANTS' SERVICES AND TRAININGS FOR SUBCOMPONENT 1.2 For the year ended December 31, 2016 Cumulative Grant Grant Grant Grant Total Grant Grant Grant Grant Total No. GEF No. PPCR No. IDA No. PPCR No. GEF No. PPCR No. IDA No. PPCR TF 014521 TF 014523 D085-TJ TF 0A0431 TF 014521 TF 014523 D085-TJ TF 0A0431 Grants for Pasture management Plans 103,139 226,906 - - 330,045 188,780 415,382 - - 604,162 Grants for Water management Plans 102,266 224,986 299,088 - 626,340 231,582 511,392 299,088 - 1,042,062 205,405 451,892 299,088 - 956,385 420,362 926,774 299,088 - 1,646,224 12 For the year ended December 31, 2015 Cumulative Grant Grant Total Grant Grant Total No. GEF No. PPCR No. GEF No. PPCR TF 014521 TF 014523 TF 014521 TF 014523 Grants for Pasture management Plans 85,641 188,476 274,117 85,641 188,476 274,117 Grants for Water management Plans 129,316 286,406 415,722 129,316 286,406 415,722 214,957 474,882 689,839 214,957 474,882 689,839 GOODS, WORKS, CONSULTANTS' SERVICES AND TRAININGS FOR SUBCOMPONENT 2 For the year ended December 31, 2016 Cumulative Grant Grant Grant Grant Total Grant Grant Grant Grant Total No. GEF No. PPCR No. IDA No. PPCR No. GEF No. PPCR No. IDA No. PPCR TF 014521 TF 014523 D085-TJ TF 0A0431 TF 014521 TF 014523 D085-TJ TF 0A0431 Facilitation support 592,345 569,115 - - 1,161,460 1,210,864 1,161,705 - - 2,372,569 Trainings 22,804 21,933 - - 44,737 90,958 89,849 - - 180,807 Study tours 28,828 27,697 - - 56,525 57,571 55,313 - - 112,884 Workshop and seminars 13,966 13,418 - - 27,384 42,525 40,851 - - 83,376 Dissemination 7,385 7,096 - - 14,481 22,544 21,660 - - 44,204 Analytical researches 24,567 23,604 - - 48,171 32,045 30,789 - - 62,834 689,895 662,863 - - 1,352,758 1,456,507 1,400,167 - - 2,856,674 For the year ended December 31, 2015 Cumulative Grant Grant Total Grant Grant Total No. GEF No. PPCR No. GEF No. PPCR TF 014521 TF 014523 TF 014521 TF 014523 Facilitation support 529,831 509,053 1,038,884 618,519 592,590 1,211,109 Trainings 37,775 36,293 74,068 68,155 67,916 136,071 Study tours 28,743 27,616 56,359 28,743 27,616 56,359 Workshop and seminars 24,311 23,358 47,669 28,559 27,433 55,992 Dissemination 15,158 14,564 29,722 15,158 14,564 29,722 Analytical researches 5,898 5,667 11,565 7,478 7,185 14,663 641,716 616,551 1,258,267 766,612 737,304 1,503,916 13 INCREMENTAL OPERATING COSTS AND TRAINING (EXCEPT FOR VEHICLES) For the year ended December 31, 2016 Cumulative Grant Grant Grant Grant Total Grant Grant Grant Grant Total No. GEF No. PPCR No. IDA No. PPCR No. GEF No. PPCR No. IDA No. PPCR TF 014521 TF 014523 D085-TJ TF 0A0431 TF 014521 TF 014523 D085-TJ TF 0A0431 Payroll and related taxes 57,103 162,542 - - 219,645 145,664 414,600 - - 560,264 Fuel and vehicle maintenance 9,437 26,858 - - 36,295 20,060 57,401 - - 77,461 Business trips 3,532 10,072 - - 13,604 7,273 20,719 - - 27,992 Audit cost 2,687 7,646 - - 10,333 5,373 15,292 - - 20,665 Trainings for Implementation Group 2,062 5,870 - - 7,932 17,632 50,444 - - 68,076 Communications (mobile and internet) 1,791 5,099 - - 6,890 5,268 14,993 - - 20,261 Stationery 930 2,648 - - 3,578 2,798 8,087 - - 10,885 Bank fees 1,113 1,600 - - 2,713 2,491 4,322 - - 6,813 Advertising and postal expenses 239 682 - - 921 823 2,345 - - 3,168 Purchase of goods and software 192 546 - - 738 27,822 79,186 - - 107,008 Translation services - - - - - 194 553 - - 747 Other 2,922 8,316 - - 11,238 3,667 9,816 - - 13,483 82,008 231,879 - - 313,887 239,065 677,758 - - 916,823 For the year ended December 31, 2015 Cumulative Grant Grant Total Grant Grant Total No. GEF No. PPCR No. GEF No. PPCR TF 014521 TF 014523 TF 014521 TF 014523 Payroll and related taxes 47,064 133,950 181,014 88,561 252,058 340,619 Purchase of goods and software 6,778 19,291 26,069 27,630 78,640 106,270 Trainings for Implementation Group 11,714 33,344 45,058 15,570 44,574 60,144 Fuel and vehicle maintenance 6,292 18,217 24,509 10,623 30,543 41,166 Business trips 2,677 7,619 10,296 3,741 10,647 14,388 Communications (mobile and internet) 1,722 4,900 6,622 3,477 9,894 13,371 Audit cost 2,686 7,646 10,332 2,686 7,646 10,332 Stationery 499 1,542 2,041 1,868 5,439 7,307 Bank fees 845 1,561 2,406 1,378 2,722 4,100 Advertising and postal expenses 156 445 601 584 1,663 2,247 Translation services - - - 194 553 747 Other 625 1,173 1,798 745 1,500 2,245 81,058 229,688 310,746 157,057 445,879 602,936 14 6. FUNDS RECEIVED The funds received were presented by the following reimbursement methods: For the year ended December 31, 2016 Cumulative Financing method / Grant Grant Grant Grant Total Grant Grant Grant Grant Total sources of financing: No. GEF No. PPCR No. IDA No. PPCR No. GEF No. PPCR No. IDA No. PPCR TF 014521 TF 014523 D085-TJ TF 0A0431 TF 014521 TF 014523 D085-TJ TF 0A0431 Advances - 150,000 200,000 - 350,000 351,212 550,000 200,000 - 1,101,212 Reimbursement of expenses 1,892,743 3,313,834 151,159 - 5,357,736 2,888,309 4,855,393 151,159 - 7,894,861 1,892,743 3,463,834 351,159 - 5,707,736 3,239,521 5,405,393 351,159 - 8,996,073 For the year ended December 31, 2015 Cumulative Financing method / Grant Grant Total Grant Grant Total sources of financing: No. GEF No. PPCR No. GEF No. PPCR TF 014521 TF 014523 TF 014521 TF 014523 Advances - - - 351,212 400,000 751,212 Reimbursement of expenses 946,778 1,321,958 2,268,736 995,566 1,541,559 2,537,125 946,778 1,321,958 2,268,736 1,346,778 1,941,559 3,288,337 15 7. FINANCIAL POSITION Financial position as at December 31, 2016, and 2015 comprise of: December 31, December 31, 2016 2015 ASSETS AND EXPENDITURES Cash and cash equivalents 427,986 128,954 Cumulative project expenditures 8,557,985 3,164,628 Foreign exchange loss 10,102 - TOTAL ASSETS AND EXPENDITURES 8,996,073 3,293,582 FINANCING Grants received 8,996,073 3,288,337 Foreign exchange gain - 5,245 TOTAL FINANCING 8,996,073 3,293,582 8. WITHDRAWAL APPLICATIONS Withdrawal applications for the year ended December 31, 2016 comprise: Sources of No. Dates Advances Goods, Goods, Incremental Total financing works, works, operating consultants’ consultants’ costs and services and services and trainings for training for training for Component component I component II III (except vehicles) GEF TF 014521 8 February 12, 2016 - 121,039 82,583 20,408 224,030 9 March 17, 2016 - 71,510 231,209 11,038 313,757 10 May 5, 2016 - 132,934 36,833 5,834 175,601 11 July 11, 2016 - 143,650 158,050 13,773 315,473 12 August 18, 2016 - 179,210 102,123 11,740 293,073 13 September 23, 2016 - 148,717 14,536 6,442 169,695 14 October 19, 2016 - 83,570 39,408 6,882 129,860 15 December 5, 2016 - 72,579 60,138 9,246 141,963 16 December 19, 2016 - 110,349 9,308 9,634 129,291 - 1,063,558 734,188 94,997 1,892,743 PPCR TF 014523 8 January 8, 2016 150,000 - - - 150,000 9 February 11, 2016 - 266,280 79,344 57,777 403,401 10 March 17, 2016 - 157,321 222,142 31,341 410,804 11 May 5, 2016 - 292,455 35,388 16,479 344,322 12 July 11, 2016 - 316,029 151,852 38,920 506,801 13 August 18, 2016 - 394,261 98,118 33,106 525,485 14 September 26, 2016 - 327,176 13,990 18,165 359,331 15 October 19, 2016 - 183,855 37,863 19,479 241,197 16 December 5, 2016 - 159,675 57,780 26,132 243,587 17 December 19, 2016 - 242,767 8,943 27,196 278,906 150,000 2,339,819 705,420 268,595 3,463,834 16 Sources of No. Dates Advances Goods, Goods, Incremental Total financing works, works, operating consultants’ consultants’ costs and services and services and trainings for training for training for Component component I component II III (except vehicles) IDA D085-TJ 2 November 9, 2016 200,000 - - - 200,000 3 December 19, 2016 - 151,159 - - 151,159 200,000 151,159 - - 351,159 350,000 3,554,536 1,439,608 363,592 5,707,736 9. SPECIAL ACCOUNT Special account for the period from January 1, 2016 to December 31, 2016 comprise: Special accounts GEF TF 014521 PPCR TF 014523 IDA D085-TJ Bank State saving bank “Amonatbank” CJSC “Kazkommertsbank Tajikistan” Currency US Dollars US Dollars US Dollars Bank account 20206840200220101000 20206840900106101000 20206840351101155007 Bank’s location 4 Lokhuti str., Dushanbe, 734013, Tajikistan 24 A Ayni str, Dushanbe, 734012, Tajikistan Description US Dollars US Dollars US Dollars Total Balance as at January 1, 2015 199,043 171,925 - 370,968 Reimbursement of expenses 946,778 1,321,958 - 2,268,736 Total funds received 1,145,821 1,493,883 - 2,639,704 The amount of expenditures paid 1,018,116 1,497,963 - 2,516,079 Foreign exchange rate differences (1,049) (4,219) - (5,268) Movements between accounts (46) 1 - (45) Balance as at December 31, 2015 128,800 138 - 128,938 Advances received - 150,000 200,000 350,000 Reimbursement of expenses 1,892,743 3,313,834 151,159 5,357,736 Total funds received 2,021,543 3,463,972 351,159 5,836,674 The amount of expenditures paid 1,843,035 3,251,234 299,088 5,393,357 Foreign exchange rate differences 5,041 10,306 - 15,347 Movements between accounts 2 (3) 2 1 Balance as at December 31, 2016 173,465 202,435 52,069 427,969 10. UNDRAWN FUNDS For the year ended December 31, 2016 undrawn funds with breakdown by grants are presented as follows: For the period from June 11, 2013 to December 31, 2016 in USD in USD in SDR in USD Grant Grant Grant Grant No. GEF No. PPCR No. IDA No. PPCR TF 014521 TF 014523 D085-TJ TF 0A0431 Approved grants amount 5,400,000 9,450,000 600,000 2,000,000 Disbursed during the period from June 11, 2013 to December 31, 2016 3,239,521 5,405,393 257,351 - Undrawn grants amount 2,160,479 4,044,607 342,649 2,000,000 17 For the year ended December 31, 2016 in USD in USD in SDR in USD Grant Grant Grant Grant No. GEF No. PPCR No. IDA No. PPCR TF 014521 TF 014523 D085-TJ TF 0A0431 Grants received as at 1,346,778 1,941,559 - - January 1, 2016 Disbursed in 2016 1,892,743 3,463,834 257,351 - Grants received as at December 31, 2016 3,239,521 5,405,393 257,351 - 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 at December 31, 2016 was as follows: Counterparty Contract # Contract Paid up to Remaining value December 31, amount to be (in USD) 2016 paid National Asociation of Dehkan farms ELMARL.CS.QCBC.03-2015 621,635 435,144 186,491 Consulting Engeneering Services LLC EPMRLP CS.QCBS.01-2013 612,403 489,922 122,481 Public Organization “Latif” ELMRLP.CS.QCBS.02-2013 970,300 873,270 97,030 PO “Agroservice Khovaling” ELMRLP.CS.CQS.02-2013 Amendments -1, 2 438,691 401,152 37,539 Water User Association (WUA) “Obshoroni Yovon” ELMARL.CDD-09-2015 100,000 90,000 10,000 Water User Association (WUA) “Sitorai Yovon” ELMARL.CDD-10-2015 100,000 90,000 10,000 PO Youth ecological center ELMARLP.CS.CQS.04-2016 21,700 10,850 10,850 Counterparty Contract # Contract Paid up to Remaining value December 31, amount to be (in TJS) 2016 paid Water User Association (WUA) “Sangak Safarov” ELMARL.CDD.O4-2014 628,000 565,200 62,800 Water User Association (WUA) “Buston” ELMARLP. CDD.15-2016 785,000 706,500 78,500 Water User Association (WUA) “Chubek” ELMARLP.CDD.16-20016 786,000 589,500 196,500 Water User Association (WUA) “Elyor” ELMRLP.CDD.03-2016 783,562 587,672 195,890 Water User Association (WUA) “Kavsari kandi kuhan” ELMARL.CDD. 02-2016 850,000 510,000 340,000 Water User Association (WUA) “Mirzomalik” ELMARL.CDD. 01-2016 850,500 680,400 170,100 Water User Association (WUA) “Tutak” ELMRLP.CDD.04-2016 769,975 577,481 192,494 Pasture User Group “Soyaru” ELMARL.CDD.05-2015 695,500 634,700 60,800 Pasture User Group “Umed” ELMARLP.CDD.07-2015 617,000 555,300 61,700 Pasture User Group “Navrooz” ELMARL.CDD.08-2015 624,000 561,600 62,400 Pasture User Group “Sayod” ELMARL.CDD.06-2015 600,500 540,450 60,050 Pasture User Group “Dusti” ELMARLP.CDD.12-2016 780,502 468,301 312,201 Pasture User Group “Ozod” ELMARLP.CDD.11-2016 786,000 707,400 78,600 Pasture User Group “Sorkho” ELMARLP.CDD.14-2016 786,965 550,876 236,089 Pasture User Group “Obi Garm” ELMARLP.CDD.13-2016 713,358 285,343 428,015 18 12. LEGAL CASES There were no any legal cases related to the Project. 13. EVENTS AFTER THE REPORTING DATE From January 1, 2017 until the date of issue of these special purpose project financial statements the World Bank provided financing to the Project as follows: Source of financing Financing method Date Application Grant No. GEF TF 014521 Grant No. TF 014521 Reimbursement of expenses January 31, 2017 17 174,344 Grant No. TF 014521 Reimbursement of expenses February 28, 2017 18 103,515 277,859 Source of financing Financing method Date Application Grant No. PPCR TF 014523 Grant No. TF 014523 Reimbursement of expenses January 30, 2017 18 340,851 Grant No. TF 014523 Reimbursement of expenses February 28, 2017 19 201,599 542,450 Source of financing Financing method Date Application Grant No. IDA D085-TJ January 17, Grant No. IDA D085-TJ Reimbursement of expenses 2017 4 147,929 147,929 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, except for the events or transactions described above. 19