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Belcomtehinvest State Enterprise
Special purpose financial statements under
Additional Financing for Water Supply and Sanitation Project
No. 8352-BY
for the period from January 1, 2019 to December 4, 2019
Minsk 1 2019
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Additional Financing for Water Supply and Sanitation Project
Loan No. 8352-BY
TABLE OF CONTENTS
STATEMENT ON THE MANAGEMENT'S RESPONSIBILITY FOR PREPARATION AND
APPROVAL OF THE SPECIAL PURPOSE FINANCIAL STATEMENTS UNDER THE PROJECT
FOR THE PERIOD FROM JANUARY 01, 2019 TO DECEMBER 4, 2019.................................3
INDEPENDENT AUDITOR'S OPINION..............................................................................5
PROJECT SOURCES AND USES OF FUNDS STATEMENT FOR THE PERIOD FROM
JANUARY 1, 2019 TO DECEMBER 4, 2019.......................................................................6
USES OF FUNDS FOR THE PERIOD FROM JANUARY 1, 2019 TO DECEMBER 4, 2019..........7
STATEMENT OF WITHDRAWAL FOR THE PERIOD FROM JANUARY 1, 2019 TO DECEMBER
4 , 20 19...............................................1.............................................................. 11
DESIGNATED ACCOUNT STATEMENT FOR THE PERIOD FROM JANUARY 1, 2019 TO
DEC EM BER 4, 2019...................9-2................................................................... .12
NOTES TO THE SPECIAL PURPOSE FINANCIAL STATEMENTS FOR THE PERIOD FROM
JANUARY 1, 2019 TO DECEMBER 4, 2019.....................................................................13
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Additional Financing for Water Supply and Sanitation Project
Loan No. 8352-BY
STATEMENT ON THE MANAGEMENT'S RESPONSIBILITY FOR PREPARATION AND APPROVAL
OF THE SPECIAL PURPOSE FINANCIAL STATEMENTS UNDER THE PROJECT FOR THE PERIOD
FROM JANUARY 01, 2019 TO DECEMBER 4,2019
The Management of is responsible for preparation of the special purpose financial statements under the
Additional Financing for Water Supply and Sanitation Project (hereinafter - the Project) being implemented
by Belcomtehinvest State Enterprise, that present fairly in all material respects the financial position of the
Project as at December 31, 2018, as well as funds received and used under the Project for the period from
January 1, 2019 to December 4, 2019 in accordance with the International Public Sector Accounting
Standards (IPSAS).
While preparing the special purpose financial statements under the Project, the Management is responsible
for:
1 * adequate choice and application of accounting policies' principles;
* presentation of information including that on accounting policies in a form which ensures relevance,
reliability, comparability and transparency of such information;
* compliance with the requirements of IPSAS and disclosure of all significant deviations from IPSAS in the
Notes to the special purpose financial statements under the Project.
The Management is also responsible for:
* development, introduction and maintaining of effective and reliable internal control system under the
Project;
* maintenance of accounting in a form that allows to address the substance and explain transactions under
the Project, and also to provide information of sufficient accuracy on the financial position of the Project at
any date and ensure compliance with IPSAS;
* taking all possible reasonable steps to safeguard of the assets of the Project;
* detecting and preventing facts of financial and other irregularities.
The present special purpose financial statements under the Project for the period from January 01, 2019 to
i December 4, 2019 were approved by the Management on December 05, 2019.
On behalf of the Managem/en -
V.L. M.E, Obrazova
Dire (Chief Accountant
p00
FBK-BEL LLC PKr
Our ref, No. 05-011197 of December 9, 2019
INDEPENDENT AUDITOR'S OPINION
To the Management of the Water Supply and Sanitation Project and Belcomtehinvest State Enterprise
Opinion
We have audited the special purpose financial statements under the Water Supply and Sanitation Project
financed by the International Bank for Reconstruction and Development (hereinafter - IBRD) according to
Loan Agreement No. 8352-BY of April 8, 2014 between the Republic of Belarus and IBRD (hereinafter - the
Agreement) that include Project Sources and Uses of Funds Statement, Statement on Uses of Funds by the
Type of Activity, Statement of Withdrawal and Designated Account Statement as at December 04, 2019 and
for the period from January 01, 2019 to December 04, 2019, as well as notes to the special purpose financial
statements including disclosure of the fundamental principles of the accounting policies
In our opinion, the accompanying special purpose financial statements under the Project fairly in all material
respects represent the financial position of the Project as at December 04, 2019, as well as received and
used Project funds for the period from January 01, 2019 to December 04, 2019 in accordance with the
International Public Sector Accounting Standard "Financial Reporting under the Cash Basis of Accounting"
developed by the International Public Sector Accounting Standards Board of the International Federation of
Accountants.
Basis for Opinion
We conducted our audit in accordance with the requirements of Law of the Republic of Belarus of July 12,
2013 "On Auditing Activity", the National Rules on Auditing Activities effective in the Republic of Belarus, the
International Standards on Auditing (hereinafter - "ISAs"), Our responsibilities under these standards are
further described in the section "Auditor's Responsibilities for the Audit of the Special Purpose Financial
Statements" of this Auditors Report. We are independent of Belcomtehinvest State Enterprise in accordance
with the Code of Ethics for Professional Accountants of the International Ethics Standards Board for
Accountants ("IESBA Code"), and we have fulfilled our other ethical responsibilities in accordance with the
IESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our opinion
Restriction on Distribution and Use
This Auditors Report is intended solely for the use of Belcomtehinvest State Enterprise for presentation of
information to IBRD on the Project funds received and used. This Auditor's Report is not intended for the use
of third parties, and we do not bear any responsibility or liability to any other parties Belcomtehinvest State
Enterprise in respect of this Auditor's Report. In case of taking a decision by such parties based on the
contents of this Auditors Report, the third parties are liable for such decisions.
Responsibilities of the Management and Those Charged with Governance for the Special Purpose
Financial Statements under the Project
The Management of the Project is responsible for preparation and fair presentation of the special purpose
financial statements under the Project prepared in accordance with the International Public Sector Accounting
Standard "Financial Reporting under the Cash Basis of Accounting" developed by the International Public
Sector Accounting Standards Board of the International Federation of Accountants and for the internal control
system that the Management considers necessary for preparation of the special purpose financial statements
under the Project that is free from material misstatement, whether due to fraud or error.
FBK-Bel Limited Liability Company
201-22A Logoisky highway I Minsk | 220090 | Republic of Belarus
Telifax +375 (17) 355 42 23 1 E-mail fbk@fbk.by I www.fbk.by
TIN 690398039
FBK.Bel LLC is a member firm of the PKF intenational Limited family of legally independent firms
and does not accept any responsibility or liability for the actions or inactons of any individual member or correspondent firm or firms. 4
FBK-BEL LLC PKF
Auditor's Responsibilities for the Audit of the Special Purpose Financial Statements under the Project
Our objective is to obtain reasonable assurance on whether the special purpose financial statements 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 the 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 economic decisions of users taken on basis of these special purpose financial
statements.
Within the frames of the audit held in accordance with the ISAs, we apply professional judgment and maintain
professional skepticism throughout the audit. We also:
* identify and assess the risks of material misstatement of the special purpose financial statements whether
due to fraud or error; design and perform audit procedures responsive to those risks; 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 that resulting from an error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control system;
* obtain an understanding of the internal control system 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 internal control system;
* evaluate appropriateness of the accounting policies used and reasonableness of accounting estimates
and related disclosures made by the Management;
* evaluate presentation of the special purpose financial statements as a whole, their structure and contents,
including disclosures, as well as whether the special purpose financial statements present the underlying
A transactions and events in a manner that ensures their reliable representation.
We communicate with the Management and those charged with governance regarding, among other matters,
I the planned scope and timing of the audit as well ;Vr?S iat audit findings, including any significant
deficiencies in the internal control system that we idpNify jo the courd,of the audit.
Director of FBK-Bel LLC A.G. Reneisky
December 09, 2019
Audited organisation:
Belcomtehinvest State Enterprise;
Office 220, 25 Kalvarijskaya St., Minsk, 220079, the Republic of Belarus;
State registration: was registered by Minsk Municipal Executive Committee on September 9, 2008
in the Unified State Register of legal entities and individual entrepreneurs under No.191061556;
Taxpayers identification number - 191061556.
Auditing organisation:
I FBK-Bel Limited Liability Company (FBK-Bel LLC);
Office 201, 22A Logoisky highway, Minsk, 220090, Republic of Belarus;
State registration: was registered by Minsk City Executive Committee on February 6, 2009 in the Unified
State Register of legal entities and individual entrepreneurs under No.690398039;
Taxpayers identification number - 690398039.
Additional Financing for Water Supply and Sanitation Project
Loan No. 8352-BY
PROJECT SOURCES AND USES OF FUNDS STATEMENT
FOR THE PERIOD FROM JANUARY 1, 2019 TO DECEMBER 4,2019
(in US Dollars)
Period Cumulative
from January 1, 2019
to December 4, 2019
OPENING CASH BALANCES
Designated account 1,255,383
Current BYN account statement 0
TOTAL 1,255,383
PLUS: SOURCES OF FUNDS
IBRD's financing 7,579,912 89,580,402
TOTAL FINANCING 7,579,912 89,580,402
LESS: EXPENDITURES BY COMPONENTS
Additional Financing for Water Supply and Sanitation 8470437
Project
Support to the Preparation and Sustainability of 347,517 2,147,400
Investments
Capacity Building, Project Implementation and 17,31 58,977
Management, Monitoring and Evaluation
Front-end Fee of the Bank 225,000
TOTAL EXPENDITURES 8,835,295 89,580,402
CLOSING CASH BALANCES
Designated account 0
Current SYN account statement 0
TOTAL 0
On behalf of the Management:
V.L. Morozov u a > M.E. Obrazova
Director Chief Accountant
Belcomtehinvest 6 Belcomtehinvest State Enterprise
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Notes on pages 13-15 are an integral part of the present spedtal purpose financial statements li
Additional Financing for Water Supply and Sanitation Project
Loan No. 8352-BY
USES OF FUNDS
FOR THE PERIOD FROM JANUARY 1, 2019 TO DECEMBER 4,2019
Project components/Subcomponents/Activity Period Cumulative
from January 1,
2019
I _to December 4, 2019
Component 1: Additional Financing for Water Supply and
Sanitation Project
1.1. Rehabilitation of Water Supply and Sanitation
1.1.1. Reconstruction of treatment facilities in Gantsevichi, Brest 2,304.811
Oblast, 2nd start-up complex.
1.1.2. Sewerage in Verkhnedvinsk 2,350,819
1.1.3. Sewerage system in Glubokoe 5,854,998
1.1.4. Reconstruction and expansion of water supply networks
and facilities in Rogachev. 1st start-up complex (stage 2) 4,404,466
1.1.5. Reconstruction and expansion of water supply networks 949,978
and facilities in Rogachev. 2nd start-up complex (stage 2)
1.1.6. Reconstruction of the sewerage system of the sewer 7,796,083
basin No.4, Grodno. 2nd start-up complex.
1.1.7. Construction of waste water treatment facilities in
Berezino 306,805 5,984,286
1.1.8. Construction of water intake with iron removal station in
Smolevichi. 2nd Construction Phase 5,470,403
1.1.9. Construction of the main sewerage collector in Mogilev 1,213,357 9,384,322
I 1.1.10. Reconstruction of water supply networks and facilities in 5
Shklov. Construction phase 2 and 3 533,074
1.1.11. Reconstruction of water supply networks and facilities in
Bykhov. 658,122 4,017,370
1.1.12.Construction of an iron removal station in agro-town
Motel of Ivanovo District
1.1.13. Construction of water supply networks in settlements
Sokolniki, Senno and Ekiman, Vitebsk Oblast 45,499 1,819,941
1.1.14. Reconstruction of water intake "Belenok" In Drogichin (1 3
stages) 308,414
1.1.15. Reconstruction of water intake "Belenok" in Drogichin (2 1,225,732
stages)
1.1.16. Construction of new main wastewater pumping station
in Gantsevichl (correction) 33,216 1,328,622
1.1.17. Construction of water supply networks In Krichev.2nd
stage
1.1.18. Wastewater treatment facilities in Svisloch town 65,444 1,308,888
1.1.19. Construction of an iron removal station for underground 54,421 2,178,839
waters at the head water intake of Rechitsa Town
1.1.20. Construction of water supply networks in Krichev.1nd
stage15,984 639,377
1.1.21. Sewage treatment plant in Rogachev. I construction3,49694735
phase3448,960 9,497,358
1.1.22, Reconstruction of sewerage system in Logoisk, 3rd start-47,140352
up477,612 4,039,524
1.1.23. Sumarokovo" water intake networks and structures. Iron
removal stations In villages. 2 phase. 3,7 7,6
1.1.24. Sumarokovo" water intake networks and structures. Iron 3,3 2,9
removal stations in villages. 3 phase. 36,230 724,597
Notes on pages 13-15 are an Integral part of the present spedar purpose financial statements 7
Additional Financing for Water Supply and Sanitation Project
Loan No. 8352-BY
Project components/Subcomponents/Activity Period Cumulative
from January 1,
2019
to December 4, 2019
1.1.25. Construction of an iron removal station in Vyazje village
of Ocipovichi region. 124,039
1.1.26. Reconstruction of the sewage system in Borisov. 2nd
stage. Reconstruction of 2 pressure collectors with a diameter of
500 mm from main WWPS No.2 to the waste water treatment 80,359 2414,352
facilities
1.1.27. "Construction of water supply networks with iron removal
station in agro-town Svatoschitsy of Dubrovensky region (1st 49,878 311,220
phase)". (Project revision - cost estimates recalculation)
1.1.28. Construction of sewerage collector No.3 from Gorkogo 4,19,811
Str. to WWPS No.3 in Bobruisk. 2 stage. Correction5,988
1.1.29. Reconstruction of sewerage treatment facilities in 2,0
Mstislavl 2,0
1.1.30. Construction of sewerage collector No.3 from Gorkogo 45,5 ,4,1
Str. to WWPS No.3 in Bobruisk. 1 stage. Correction45,914981
1.1.31. Reconstruction of Iron removal station in residential area
Farinovo of Polotsk region 68,462 278854
1.1.32. Construction of war iron removal station in residential
area Usvizh-Buk of Tolochin region 149,878
1.1.33. Construction of water Intake with iron removal station in
residential area Bogdanovo of Senno region
1.1.34. Iron removal station in urban-type settlement Obol' of 6,662 133,234
Shumillno region6621324
1.1.35. Construction of water supply facilities and choice of
treatment technology near Molodezhnaya and UrItskogo streets 489,708 655,874
of Beshenkovichi municipal town of Vitebsk oblast
1.1.36. Construction of artesian well, iron removal plant, water
tower and water supply networks in residential area Koptevichi 112.201 422,109
of Chashniki region
1.1.37. Construction of iron removal plant in municipal town
Bolbasovo 14,814 592,558
1.1.38. Water intake with iron removal station In Marina Gorka,
including FS (second half of retention) 150,539
1.1.39. Water supply networks and facilities of "Zabomy Gumny" 3,583 143,322
residential district in Braslavl (II construction phase) 3,583 143,322
1.1.40. Reconstruction of water supply networks and facilities in5,2
Shklov (second half of retention)5,727
1.1.41. Reconstruction of two artesian wells with construction of72328,3
iron removal plant in the settlement of Yun'ki Postavy district 72,372 86,636
1.1.42. Construction of water supply facilities with iron removal 18,8 1,0
plant in the agro-town of Zaronovo Vitebsk district87,480 110,906
1.1.24. Sumarokovo" water intake networks and structures. Iron
removal stations in villages. 3 phase. 507,940 507,940
Total Component 1 8,470,303 87,148,581
Component 2: Support to the Preparation and Sustainablilty
of Investments
2.1. Development of Feasibility Study, all Stages of Design
and Cost-estimate Documentation and BIdding Documents,
Assistance in Conduct of Bidding procedure and Bid
evaluation
2.1.1. Treatment facilities of Pinsk. Modernization of waste water
sludge treatment system 240,240
Notes on pages 14-15 are an integral part of the present special purpose financial statements a
Additional Financing for Water Supply and Sanitation Project
Loan No. 8352-BY
Project componentulSubcomponentslActivity Period Cumulative
from January 1,
2019
____________________________________ to December 4, 2019
2.1.2. Engineering and economical comparison of waste water t
treatment in Borovuha (construction of waste water treatment
plants in Borovuha and pressure pipes for waste water transfer 232,140
g at SPS-1 in Novopolotsk) and further development of design
and cost-estimate
2.1.3. Reconstruction of water supply system of urban-type 113,060
settlement Oktiabrsky, Gomel Oblast 113,060
2.1.4. Construction of sewage treatment facilities in Oshmiany 234,540
2.1.5. Construction of facilities complex for waste water sludge
utilization in Gmdno (Municipal Utility Unitary Enterprise 84,084
"Grodnovodokanal")
2.1.6. Reconstruction and expansion of treatment facilities and
I sewage systems in Slutsk 159,911
2.1.7. Reconstruction of treatment facilities in Soligorsk 160,133
2.1.8. Construction of treatment facilities in Zaslavi 114,513
2.1.9. Reconstruction of water supply system with construction 111,892
of water intake and iron removal plant in Cherven 111,892
2.1.10. Treatment facilities of Pinsk. Modernization of waste
water sludge treatment system
2.1.11. Construction of sewage treatment facilities in Oshmiany
2.1.12. Construction of facilities complex for waste water sludge
utilization In Grodno (Municipal Utility Unitary Enterprise
"Grodnovodokanal")
2.1.13. Reconstruction of sewage networks and facilities in
Byhov
2.1.14. Water treatment and sewerage networks of Borovukha
rural settlement
2.1.15. Reconstruction and expansion of facility and sewage
system in Slutsk
2.1.16. Sewerage system of Zaslavl Town
2.1.17. Reconstruction of treatment facilities in Soligorsk
2.1.18. Reconstruction of water supply system of urban-type
settlement Oktiabrsky, Gomel Oblast
2.1.19. Reconstruction of water supply system with construction
of water Intake and Iron removal plant in Cherve
2.2. Investment Component Management and Monitoring of
its implementation
2.2.1. Development of the Client's technical requirements 70,059
(Berezino)
2.2.2. Technical assistance in contract management (Mogilev) 79,456 301,860
2.2.3. Water intake with iron removal station including Feasibility I
Study (Smolevichi)
2.2.4. Construction of the main sewerage collector in Mogilev
Town
2.3. Activities aimed at increasing the efficiency of the work
of water and sewage utilities
2.3.1. Analysis of engineering design norms with regard to
practices of Implementation of similar norms in European 84,780 84,780
countries and development of the drafts of the relevant
documents
2.3.2. Benchmarking 178,524 178,524
Notes on pages 14-15 are an Integral part of the present special purpose financial statements 9
Additional Financing for Water Supply and Sanitation Project
Loan No. 8352-BY
Project components/Subcomponents/Activity Period Cumulative
from January 1,
2019
to December4, 2019
2.3.3. Energy audit with potential analysis at 6 Housing and
Utilities enterprises
2.3.4. Individual consultant (translator) 4,692 61,035
Total Component 2 347,452 2,146,771
Component 3 :Capacity Building, Project Implementation
and Management, Monitoring and Evaluation
3.1. Training
3.1.1. Training of PCT specialists 5,881 33,101
3.2. Auditing
3.2.1. Audit of Reporting 9,600 24,000
3.3. Strengthening of Social Accountability regarding
water and sanitation services
3.3.1. Strengthening of Social Accountability regarding water
and sanitation services
3.4 Other (Profit Tax) 1,860 1,860
Total Component 3 17,341 58,961
Component 4: Front-end Fee of the Bank
4.1. Front-end Fee of the Bank
I4.1.1. Front-end Fee 225,000
Total Component 4 225,000
Component 5: Bank Fee
5.1. Bank's commission
5.1.1. Bank's commission 200 1,089
Total Component 5 200 1,089
Total Project Expenditure 8,835,296 89,580,402
On behalf of the Management:
V.L. Morozov M.E. Obrazova
Director Chief Accountant
BelcomtehinveN Belcomtehinvest State Enterprise
Notes on pages 14-15 are an integral part of the present special purpose financial statements 10
Additional Financing for Water Supply and Sanitation Project
Loan No. 8352-BY
STATEMENT OF WITHDRAWAL
FOR THE PERIOD FROM JANUARY 1, 2019 TO DECEMBER 4, 2019
(in US Dollars)
Withdrawal Date of Replenishment of Total Transaction
application, withdrawal from Designated Account type
No. the loan account
53 06.02.2019 2 900 000 2 900 000 DA-B
55 28.05.2019 1400000 1400000 DA-B
56 12.07.2019 2000000 2000000 DA-B
Total 6 300 000 6 300 000
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I On behalf of the Management:
V.L. Morozov -M.E. Obrazova
Director Chief Accountant
Belcomtehinvest S Belcomtehinvest State Enterprise
Notes on pages 14-15 are an integral part of the present special purpose financial statements 11
Additional Financing for Water Supply and Sanitation Project
Loan No. 8352-BY
DESIGNATED ACCOUNT STATEMENT
FOR THE PERIOD FROM JANUARY 1, 2019 TO DECEMBER 4,2019
(In US Dollars)
Account No. BY93BLBB36200191061556001004
Bank Belinvesbank JSC
Opening balance at January 1, 2019 1,255,383
Plus: IBRD transaction to the designed account 6,300,000
Less: Amount of eligible expenditures paid during the 7,551,498
present period
Less: Amount of funds transferred to the transit
account 3,885
Closing balance as at December 4, 2019 0
On behalf of the Man
V.L. Morozov M.E. Obrazova
Director Chief Accountant
Belcomtehinvest State etrse Belcomtehinvest State Enterprise
Notes on pages 13-15 are an integral part of the present special purpose financial statements 12
Additional Financing for Water Supply and Sanitation Project
Loan No. 8352-BY
NOTES TO THE SPECIAL PURPOSE FINANCIAL STATEMENTS FOR THE PERIOD FROM JANUARY 1,
2019 TO DECEMBER 4,2019
1. DESCRIPTION
In accordance with the Loan Agreement, signed on April 8, 2014 between the Republic of Belarus and the
international Bank for Reconstruction and Development, loan in the amount of 90 million US Dollars was
granted for the development of water supply and sanitation in the territory of the Republic of Belarus
(hereinafter - the Project).
The Project consists of the following components:
Component A: Rehabilitation of Water Supply and Sanitation
Provision of goods, works and consultants' services for: (a) rehabilitation and construction of deep wells,
pumping stations, transmission mains, distribution network, ground and elevated reservoirs and iron removal
plants, and other water supply facilities; and (b) rehabilitation and construction of wastewater collection
systems and wastewater treatment plants including upgrade of monitoring stations and laboratories, and
other water sanitation facilities.
Component B: Support to the Preparation and Sustainability of Investments
Provision of goods and consultants' services for, inter alia: (a) (i) preparation of feasibility studies,
preliminary designs and bidding documents; and (ii) carrying out of bids evaluation; all for activities
under Part A of the Project and/or future investments in the water and wastewater sector; (b)
construction management, including supervision, monitoring and evaluation of physical
implementation of activities under Part A of the Project; and (c) comparative analysis of
performance indicators of municipal companies and analysis of technical design standards.
Component C: Capacity Building, Project implementation and Management, Monitoring and Evaluation
(a) Provision of goods, consultants' services and training to the Project Coordination Team (PCT) to assist in
the implementation, management and auditing of the Project;
(b) Strengthening social accountability mechanisms on water and wastewater services through, inter alia the
provision of support to: (i) Selected Water and Wastewater Service Providers to develop communication
plans to improve their communication with their customers through, inter alia: (A) the development and/or
update of websites; and (B) the enhancement of the information contained in existing websites and/or
information displayed publicly in their premises; and (ii) strengthen existing grievance redress mechanisms to
enhance service delivery.
The Project is being implemented by Belcomtehinvest State Enterprise.
Belcomteh invest State Enterprise keeps accounting records and primary documents with respect of the funds
transferred to its accounts.
2. ACCOUNTING POLICIES
Fundamental accounting principles - these financial statements under the Project are prepared based on
the cash basis which complies with the International Public Sector Accounting Standards developed by the
International Public Sector Accounting Standards Board of the international Federation of Accountants.
Project funding is recognised to be the source of the Project funds at the moment of receipt of the funds
Project costs are recognised to be the use of Project funds at the moment of effecting the payment.
Transactions In foreign currencies - these financial statements are presented in US Dollars unless
otherwise stated. Transactions in other currencies are translated into US Dollars at the exchange rate
effective at the date of a transaction.
13
Additional Financing for Water Supply and Sanitation Project
Loan No. 8352-BY
Basis for preparation of the financial statements is the accounting data of Belcomtehinvest State
Enterprise. Accounting for transactions under the Project is separated from accounting for funds of other
funding sources of Belcomtehinvest State Enterprise.
3. DESIGNATED ACCOUNT
Designated account is an account in US Dollars in GOPERU Belinvestbank JSC (the Republic of Belarus),
intended to control payments related to the Project implementation in the established amounts that do not
require separate approval by IBRD in accordance with the terms of the Agreement.
4. SETTLEMENT ACCOUNT IN BYN
This is an account in BYN for credit, storage of funds received from sale of foreign currency - loan funds
5. BASIS FOR FINANCING
Expenses of Category 1 (Goods, works and consulting services) in the amount of 100% are financed from
proceeds of the IBRD Loan.
Category 2 represents a Front-end Fee in the amount of 225 thousand US Dollars withheld by IBRD for its
own benefit from the loan account in accordance with the Agreement.
PacnpegeneHme saima no e4am nOKpblBaeMbX pacxogoe npegacaaneHo cneAyoumm o6pa3om:
Category of expenses Loan ammount
Category 1 Goods, works and consulting services 89,775,000.00
Category 2 Front-end Fee 225,000.00
Total 90,000,000.00
The aforementioned planned indicators are established for the whole Project period as a whole, therefore
they are not presented in comparison with actual expenses for the period from January 1, 2019 to
December 4, 2019.
6. WITHDRAWAL METHOD
Withdrawal methods used within the reporting period include transfers from IBRD to the Designated Account
with further withdrawal by Belcomtehinvest State Enterprise and direct payments executed by IBRD on behalf
of Belcomtehinvest State Enterprise based on provided withdrawal applications.
14
Additional Financing for Water Supply and Sanitation Project
Loan No. 8352-BY
7. RECONCILIATION OF FINANCING RECEIVED FROM IBRD, WITH THE ACTUAL EXPENDITURES OF
THE PROJECT
Withdrawal applications
Expenses incurred from January 1, 2019 to December 4, 2019 8,835,295
Total expenses incurred for the period from January 1, 2019 8,835,295
to December 4, 2019
Funds received from IBRD for the period from January 1, 2019 to December 4, 2019:
Replenishment of the Designated Account 6,300,000
Direct payments 1,279,912
Plus: Balance on the Designated Account at January 1, 2019 1,255,383
Plus: Current BYN Account Statement at January 1, 2019 0
Less: Balance on the Designated Account at December 4, 2019 0
Less: Current BYN Account Statement at December 4, 2019 0
Total expenses incurred for the period from January 1, 2019 8,835,295
to December 4, 2019
On behalf of the Management:
V.L. Morozov M.E. Obrazova
Director Chief Accountant
Belcomtehinvest State Ent Belcomtehinvest State Enterprise
15