MINISTRY OF INTERNALLY DISPLACED PERSONS FROM THE OCCUPIED TERRITORIES, LABOUR, HEALTH AND SOCIAL AFFAIRS SPECIAL PURPOSE PROJECT FINANCIAL STATEMENTS EMERGENCY COVID-19 RESPONSE PROJECT (IBRD Loan 9113-GE, IBRD Loan 9273-GE and AIIB co-financing Loan L0388A) Together with Independent Auditor’s Report For the period from 1 January 2024 to 30 July 2024 CONTENTS INDEPENDENT AUDITOR’S REPORT .................................................................................... 5 SPECIAL PURPOSE PROJECT FINANCIAL STATEMENTS STATEMENT OF CASH RECEIPTS AND PAYMENTS .................................................................... 5 STATEMENT OF EXPENDITURE PER COMPONENT .................................................................... 7 NOTES TO THE SPECIAL PURPOSE PROJECT FINANCIAL STATEMENTS 1. General information ............................................................................................. 9 2. Summary of significant accounting policies ................................................................. 11 3. Summary of Summary Reports and SOEs ..................................................................... 12 4. Statement of Designated Accounts ........................................................................... 14 5. Statement of Financial Position (Statement of Fund Balances) .......................................... 16 6. Reconciliation Between The Amounts Shown As Received From The IBRD And AIIB To Actual Expenditures Of The Project ......................................................................................... 17 7. Commitments and Contingencies ............................................................................. 17 8. Georgian operating environment.............................................................................. 17 9. Events after the reporting period ............................................................................. 17 The notes on pages 9-17 form an integral part of these special purpose project financial statements. Emergency Covid-19 Response Project IBRD Loan Number 9113-GE, IBRD Loan 9273-GE and AIIB Loan Number L0388A STATEMENT OF CASH RECEIPTS AND PAYMENTS For the period from 1 January 2024 to 30 July 2024 (Amounts are shown in EUR) Actual Budget* (Unaudited) Variance For the year ended Cumulative as at For the year ended Cumulative as at For the year ended Cumulative as at 31 December 2023 31 December 2023 31 December 2023 31 December 2023 31 December 2023 31 December 2023 Opening Working Capital Cash and cash equivalents 1,560,351 - - - - - Prepayments - - - - - - Payables to GOG (196,386) - - - - - 1,363,965 - - - - - Sources of Funds IBRD 91130 593,609 72,675,677 - - - - AIIB C1670 729,351 89,617,951 - - - - IBRD 92730 770,779 22,303,326 - - - - 2,093,739 184,596,954 - - - - Project Expenditures Goods, Works, Non-Consulting services, Consulting services, Operating Costs, and Training for Parts 1 and 3 2,185,190 85,287,436 2,500,000 104,204,000 314,810 18,916,564 of the Project Cash Transfers and Unemployment Benefits for Part 2 of - 89,519,777 - 64,339,650 - (25,180,127) the Project FRONT END FEE - 482,850 - 254,500 - (228,350) TOTAL EXPENDITURES 2,185,190 175,290,063 2,500,000 168,798,150 314,810 (6,491,913) Foreign Exchange loss, net** 15,673 (8,018,704) Closing Working Capital Cash and cash equivalents 1,886,801 1,886,801 Prepayments - - Payables to GOG*** (598,614) (598,614) TOTAL CLOSING WORKING CAPITAL 1,288,187 1,288,187 * The budget figures are updated several times during the year. Planned figures for the year ended 31 December 2023 included in the IFR (Interim Financial Report) have not been audited. ** Foreign Exchange difference-is unrealized exchange rate loss as period expenditure is translated into EUR based at the exchange rate prevailing at the date of the transaction as issued by the National Bank of Georgia (NBG) and the translation of monetary assets and liabilities are reported at year-end official exchange rates. *** Payables to GOG is amount of reporting period eligible expenditure which is paid by the Government of Georgia (“GOG”) dur ing reporting period and will be reimbursed by IBRD and AIIB. The notes on pages 9-17 form an integral part of these special purpose project financial statements. Page 6 - 17 The notes on pages 9-19 form an integral part of these special purpose project financial statements. Emergency Covid-19 Response Project IBRD Loan Number 9113-GE, IBRD Loan 9273-GE and AIIB Loan Number L0388A STATEMENT OF EXPENDITURE PER COMPONENT For the period from 1 January 2024 to 30 July 2024 (Amounts are shown in EUR) Actual Budget* (Unaudited) Variance For the year ended Cumulative as at For the year ended Cumulative as at For the year ended Cumulative as at 31 December 2023 31 December 2023 31 December 2023 31 December 2023 31 December 2023 31 December 2023 Component 1: Emergency COVID-19 Response 2,185,190 85,287,436 2,500,000 104,204,000 314,810 18,916,564 Component 2: Enabling health measures to contain the COVID-19 outbreak through temporary income support for poor - 89,519,777 - 64,339,650 - (25,180,127) households and vulnerable individuals FRONT END FEE - 482,850 - 254,500 - (228,350) Total Project Expenditure 2,185,190 175,290,063 2,500,000 168,798,150 314,810 (6,491,913) * The budget figures are updated several times during the year. Planned figures for the year ended 31 December 2023 included in the IFR (Interim Financial Report) have not been audited. The notes on pages 9-17 form an integral part of these special purpose project financial statements. Page 8 - 17 Emergency Covid-19 Response Project IBRD Loan Number 9113-GE, IBRD Loan 9273-GE and AIIB Loan Number L0388A NOTES TO THE SPECIAL PURPOSE PROJECT FINANCIAL STATEMENTS For the period from 1 January 2024 to 30 July 2024 (Amounts are shown in EUR) 1. General information 1.1. The Project The Financing Agreement IBRD Loan Number 9113-GE was signed on 1 May 2020 between Georgia and the International Bank for Reconstruction and Development (“IBRD”) , The Financing Agreement IBRD Loan Number 9273-GE was signed on 9 June 2021 between Georgia and the International Bank for Reconstruction and Development (“IBRD”) and The Financing Agreement AIIB co-financing Loan L0388A was signed on 21 May 2020 between Georgia and Asian Infrastructure Investment Bank (AIIB) according to which IBRD provided financing to the Georgia in the amount of 73,100,000 EUR and 28,700,000 EUR and AIIB provided 91,340,000 EUR. The financing was provided for the implementation of Georgia Emergency Covid-19 Response Project. The payment currency of IBRD Loan Number 9113-GE, IBRD Loan Number 9273-GE and AIIB L0388A is GEL. Loan Project Data is as follows: Project Data: IBRD 9113-GE: EUR (million) Original Loan Amount 73 Total Disbursements 73 Disbursements in WB Fiscal Year - Total disbursement excluding advance 73 Effectiveness Date 28-May-20 Closing Date 30-Apr-22 Revised Closing date 30-Apr-24 Project Data: AIIB L0388A EUR (million) Original Loan Amount 91 Total Disbursements 90 Disbursements in WB Fiscal Year - Total disbursement excluding advance 90 Effectiveness Date 17-Jun-20 Closing Date 30-Apr-22 Revised Closing date 30-Apr-24 Project Data: IBRD 9273-GE: EUR (million) Original Loan Amount 29 Total Disbursements 22 Disbursements in WB Fiscal Year - Total disbursement excluding advance 20 Effectiveness Date 7-Sep-21 Closing Date 7-Dec-22 Revised Closing date 30-Apr-24 The Grace Period for submitting withdrawal application for expenditures incurred before the Closing date is four months following the Closing date. Page 9 - 17 Emergency Covid-19 Response Project IBRD Loan Number 9113-GE, IBRD Loan 9273-GE and AIIB Loan Number L0388A NOTES TO THE SPECIAL PURPOSE PROJECT FINANCIAL STATEMENTS For the period from 1 January 2024 to 30 July 2024 (Amounts are shown in EUR) 1. General information (continued) 1.2. The Project objectives The objective of the Project is to prevent, detect, and respond to the threat posed by the COVID-19 pandemic and strengthen national systems for public health preparedness in Georgia. The Project is a part of the MPA Program and consists of the following parts: Part 1: Emergency COVID-19 Response Assistance in the provision of urgent efforts to slow down and limit the spread of COVID-19 through: (a) supporting Georgia’s health sector by strengthening disease surveillance systems and epidemiological capacities of selected public health laboratories to facilitate early detection and confirmation of COVID-19 cases by increasing overall testing capacity and expanding the availability of critical medical supplies and equipment; (b) strengthening the preparedness planning and clinical care capacity of Georgia’s health systems through inter alia, establishing specialized care units, increasing availability of isolation facilities, increasing availability of critical medical supplies, equipment, and other related goods, and mobilizing additional resources to public and private health care facilities for effective management of cases including non-severe cases and ensuring readiness for forthcoming COVID-19 cases and treatment. Part 2: Enabling Health Measures to Contain the COVID-19 Outbreak Through Temporary Income Support for Poor Households and Vulnerable Individuals Assistance in the provision of social assistance and financial support to households and individuals affected directly or indirectly by COVID-19, through: a) providing financial assistance, in addition to the expansion of the assistance provided by the Targeted Social Assistance Program to additional poor and vulnerable households; b) providing temporary financial assistance to selected Formal Workers and Self-Employed Persons, whose employment is directly or indirectly affected due to the measures adopted to contain the COVID-19 pandemic and who are not otherwise covered by other social protection programs. Part 3: Project Management and Monitoring Carrying out Project management activities, including carrying out the following: a) financial management and procurement requirements; b) monitoring and evaluation activities related to the Project including inter alia monitoring, impact evaluation assessments, data collection, and spot checks of the provision of financial assistance; c) other tasks related to overall administration, procurement, financial management, environmental and social aspects, and communication and outreach. 1.3. The Project Budget The project is financed by IBRD Loan 9113, Original Loan Amount is EUR$73,100,000, IBRD Loan 9273, Original Loan Amount is EUR$28,700,000 and AIIB co-financing Loan L0388A, Original Loan Amount is EUR 91,340,000. Co- financing Shares for IBRD Loan 9113 and AIIB co-financing Loan L0388A is 45%-55%. IBRD Loan 9273 is fully financed by IBRD and does not include co-financing component. IBRD Loan 9113-GE: Percentage of Amount of the Loan Expenditures to be Category Allocated (expressed financed (inclusive in EUR) of Taxes) (1) Goods, Works, Non-Consulting services, Consulting services, Operating Costs, and Training for Parts 1 and 3 of 29,065,379 45% the Project (2) Cash Transfers and Unemployment Benefits for Part 2 of 43,851,871 45% the Project (3) Front-end Fee 182,750 TOTAL AMOUNT 73,100,000 Page 10 - 17 Emergency Covid-19 Response Project IBRD Loan Number 9113-GE, IBRD Loan 9273-GE and AIIB Loan Number L0388A NOTES TO THE SPECIAL PURPOSE PROJECT FINANCIAL STATEMENTS For the period from 1 January 2024 to 30 July 2024 (Amounts are shown in EUR) 1. General information (continued) AIIB co-financing Loan L0388A: Percentage of Amount of the Loan Expenditures to be Category Allocated (expressed financed (inclusive in EUR) of Taxes) (1) Goods, Works, Non-Consulting services, Consulting services, Operating Costs, and Training for Parts 1 and 3 of 37,099,688 55% the Project (2) Cash Transfers and Unemployment Benefits for Part 2 of 54,011,962 55% the Project (3) Front-end Fee 228,350 TOTAL AMOUNT 91,340,000 IBRD Loan 9273-GE: Percentage of Amount of the Loan Expenditures to be Category Allocated (expressed financed (inclusive in EUR) of Taxes) (1) Goods, Works, Non-Consulting services, and Consulting 28,628,250 100% services, Operating Costs, and Training for the Project (2) Front-end Fee 71,750 (3) Interest Rate Cap or Interest Rate Collar premium - TOTAL AMOUNT 28,700,000 1.4. Project Implementation The Project is implemented by Ministry of Internally Displaced Persons from the Occupied Territories, Labour, Health and Social Affairs (“MoILHSA”) and is responsible for all project implementation. MoILHSA address is: 144, Ak. Tsereteli Ave. 0119 Tbilisi, Georgia 2. Summary of significant accounting policies 2.1. Statement of compliance The special purpose project financial statements are prepared in accordance with the International Public Sector Accounting Standard: Financial Reporting Under the Cash Basis of Accounting (IPSAS-Cash Basis), issued by the International Public Sector Accounting Standards Board (IPSASB) within the International Federation of Accountants (IFAC), and presented in accordance with Loan Handbook for World Bank Borrowers. The purpose of these special purpose project financial statements is to provide information to the international Bank for Reconstruction and Development (IBRD) and Asian Infrastructure Investment Bank (“AIIB”) to assist them in evaluating the Project implementation. The principal accounting policies applied in the preparation of these special purpose project financial statements are set out below. These policies have been consistently applied to all the periods presented. 2.2. Cash basis of accounting Project financing is recognized as a source of project funds when the cash is received. Project expenditures are recognized as a use of project funds when the payments are made. 2.3. Presentation currency The national currency of Georgia is the Georgian Lari (GEL). These special purpose project financial statements are presented in EUR, in conformity with World Bank Guidelines. All financial information in EUR has been rounded to the nearest EUR unless otherwise stated. The expenditures and prepayments made in local currency, Georgian Lari (GEL), are translated into EUR based at the exchange rate prevailing at the date of the transaction as issued by the National Bank of Georgia (NBG). Cash and Payables are reported at year-end official exchange rates of NBG. Page 11 - 17 Emergency Covid-19 Response Project IBRD Loan Number 9113-GE, IBRD Loan 9273-GE and AIIB Loan Number L0388A NOTES TO THE SPECIAL PURPOSE PROJECT FINANCIAL STATEMENTS For the period from 1 January 2024 to 30 July 2024 (Amounts are shown in EUR) 2. Summary of significant accounting policies (continued) The closing official rate of the National Bank of Georgia of exchange used for translating balances in GEL to EUR was: EUR Exchange rate as at 30 July 2024 2.9426 Exchange rate as at 31 December 2023 2.9753 2.4. Designated account Designated account is a designated disbursement account of the Project that is maintained in EUR at the state treasury to ensure the payment of eligible expenditure within defined limits, which do not require individual authorization in accordance to loan agreements. 2.5. Methods of withdrawals The methods of withdrawal used from the inception of the loan to 30 July 2024 were as follows: Designated account MoILHSA withdraws the eligible amounts from the Designated account and prepares and sends replenishment requests to the World Bank with authorized signatures. The replenishment requests and respective documentation are reviewed by the World Bank and an approved amount is transferred to the Designated account. Direct Payment Available amounts are drawn from time to time within limits determined under the loan agreement for direct payments of eligible expenditures. Direct payments are made by IBRD and AIIB directly to third parties. The MoILHSA forms withdrawal applications for request of direct payments and sends it to the Bank, for settlement. Reimbursement IBRD and AIIB reimburses MoILHSA for expenditures eligible for financing pursuant to the Financing Agreements (eligible expenditures) that MoILHSA has prefinanced from GOG resources. 2.6. Taxes According to the Georgian Tax Legislation, the Organization pays all the taxes on unified treasury code applicable for all taxes. Taxes are paid in accordance with the tax regulation of Georgia. 3. Summary of Summary Reports and SOEs 3.1 SOEs submitted and approved during the period from 1 January 2024 to 30 July 2024 can be presented as follows: IBRD Loan 9113-GE: Expenditure categories Withdrawal Withdrawal Goods, Works, Non-Consulting services, Cash Transfers and Application application Total Consulting services, Operating Costs, and Unemployment Benefits N date Training for Parts 1 and 3 of the Project for Part 2 of the Project WA-042 02-May-2024 60,429 - 60,429 WA-041 20-Mar-2024 86,606 - 86,606 WA-040 07-Mar-2024 277,289 - 277,289 424,324 - 424,324 AIIB Loan L0388A: Expenditure categories Withdrawal Withdrawal Goods, Works, Non-Consulting Cash Transfers and Application application services, Consulting services, Total Unemployment Benefits for N date Operating Costs, and Training for Part 2 of the Project Parts 1 and 3 of the Project WA-043 12-Mar-2024 179,539 - 179,539 WA-042 21-Mar-2024 160,654 - 160,654 WA-041 28-May-2024 105,818 - 105,818 WA-040 05-Jul-2024 339,085 - 339,085 785,096 - 785,096 Page 12 - 17 Emergency Covid-19 Response Project IBRD Loan Number 9113-GE, IBRD Loan 9273-GE and AIIB Loan Number L0388A NOTES TO THE SPECIAL PURPOSE PROJECT FINANCIAL STATEMENTS For the period from 1 January 2024 to 30 July 2024 (Amounts are shown in EUR) 3. Summary of Summary Reports and SOEs (continued) Direct Payment submitted and approved during the period from 1 January 2024 to 30 July 2024 can be presented as follows: IBRD Loan 9273-GE: Expenditure categories Withdrawal Withdrawal Goods, Works, Non-Consulting Cash Transfers and Application application services, Consulting services, Total Unemployment Benefits for N date Operating Costs, and Training for Part 2 of the Project Parts 1 and 3 of the Project WA015 16-Jul-2024 13,004 - 13,004 13,004 - 13,004 3.2 SOEs submitted and approved during the year ended 31 December 2023 can be presented as follows: IBRD Loan 9113-GE: Expenditure categories Withdrawal Withdrawal Goods, Works, Non-Consulting services, Cash Transfers and Application application Total Consulting services, Operating Costs, and Unemployment Benefits N date Training for Parts 1 and 3 of the Project for Part 2 of the Project WA-039 22-Aug-2023 273,540 - 273,540 273,540 - 273,540 AIIB Loan L0388A: Expenditure categories Withdrawal Withdrawal Goods, Works, Non-Consulting Cash Transfers and Application application services, Consulting services, Total Unemployment Benefits for N date Operating Costs, and Training for Part 2 of the Project Parts 1 and 3 of the Project WA039 05-Sep-2023 339,759 - 339,759 339,759 - 339,759 Direct Payment submitted and approved during the year ended 31 December 2023 can be presented as follows: IBRD Loan 9113-GE: Expenditure categories Withdrawal Withdrawal Goods, Works, Non-Consulting Cash Transfers and Application application services, Consulting services, Total Unemployment Benefits for N date Operating Costs, and Training for Part 2 of the Project Parts 1 and 3 of the Project WA035 04-Jan-2023 18,108 - 18,108 WA036 02-Mar-2023 19,694 - 19,694 WA037 22-Mar-2023 22,320 - 22,320 WA038 28-Jun-2023 259,946 - 259,946 320,068 - 320,068 AIIB Loan L0388A: Expenditure categories Withdrawal Withdrawal Goods, Works, Non-Consulting Cash Transfers and Application application services, Consulting services, Total Unemployment Benefits for N date Operating Costs, and Training for Part 2 of the Project Parts 1 and 3 of the Project WA035 03-Feb-2023 22,731 - 22,731 WA036 07-Mar-2023 23,958 - 23,958 WA037 03-Apr-2023 26,844 - 26,844 WA038 28-Jun-2023 316,059 - 316,059 389,592 - 389,592 Page 13 - 17 Emergency Covid-19 Response Project IBRD Loan Number 9113-GE, IBRD Loan 9273-GE and AIIB Loan Number L0388A NOTES TO THE SPECIAL PURPOSE PROJECT FINANCIAL STATEMENTS For the period from 1 January 2024 to 30 July 2024 (Amounts are shown in EUR) 3. Summary of Summary Reports and SOEs (continued) IBRD Loan 9273-GE: Expenditure categories Withdrawal Withdrawal Goods, Works, Non-Consulting Cash Transfers and Application application services, Consulting services, Total Unemployment Benefits for N date Operating Costs, and Training for Part 2 of the Project Parts 1 and 3 of the Project WA014 05-Jun-2023 132,944 - 132,944 WA013 11-May-2023 116,592 - 116,592 249,536 - 249,536 EUR 521,243 was received under WA015 as DA-A advance payment. 4. Statement of Designated Accounts Financing Agreement IBRD Loan 9113-GE, IBRD Loan 9273-GE and AIIB Loan L0388A Bank account number GE65NB0331100001150207 Bank National Bank of Georgia Bank location 2 Sanapiro street, Tbilisi, Georgia, 0114 Account currency EUR IBRD Loan 9113-GE: For the year ended Cumulative as at 30 July 2024 30 July 2024 1 Opening Balance: - - Add: 2 Cumulative unexplained discrepancy - - 3 IBRD advance/replenishment during the current semester - - Less: Refund to IDA/PHRD from DA during the current 4 - - semester 5 Present outstanding amount advanced to DA - - DA closing balance as at 30/07/24 carried forward to next 6 - - period Add: Amount of eligible expenditures paid during the current 7 - - semester 8 Service charges (if debited into DA) - - 9 Less: Interest earned (if credited into DA) - - 10 Total advance accounted for - - 11 Discrepancy (5)-(10) to be explained /II - - For the year ended Cumulative as at AIIB Loan L0388A: 30 July 2024 30 July 2024 1 Opening Balance: - - Add: 2 Cumulative unexplained discrepancy - - 3 IBRD advance/replenishment during the current semester - - Less: Refund to IDA/PHRD from DA during the current 4 - - semester 5 Present outstanding amount advanced to DA - - DA closing balance as at 30/07/24 carried forward to next 6 - - period Add: Amount of eligible expenditures paid during the current 7 - - semester 8 Service charges (if debited into DA) - - 9 Less: Interest earned (if credited into DA) - - 10 Total advance accounted for - - 11 Discrepancy(5)-(10) to be explained /II - - Page 14 - 17 Emergency Covid-19 Response Project IBRD Loan Number 9113-GE, IBRD Loan 9273-GE and AIIB Loan Number L0388A NOTES TO THE SPECIAL PURPOSE PROJECT FINANCIAL STATEMENTS For the period from 1 January 2024 to 30 July 2024 (Amounts are shown in EUR) 4. Statement of Designated Accounts (continued) IBRD Loan 9273-GE: For the year ended Cumulative as at 30 July 2024 30 July 2024 1 Opening Balance: 1,875,178 - Add: 2 Cumulative unexplained discrepancy - - 3 IBRD advance/replenishment during the current semester - 1,875,178 Less: Refund to IDA/PHRD from DA during the current 4 1,806,075 1,806,075 semester 5 Present outstanding amount advanced to DA 69,103 69,103 DA closing balance as at 30/07/24 carried forward to next 6 - - period Add: Amount of eligible expenditures paid during the current 7 69,103 69,103 semester 8 Service charges (if debited into DA) - - 9 Less: Interest earned (if credited into DA) - - 10 Total advance accounted for 69,103 69,103 11 Discrepancy(5)-(10) to be explained /II - - IBRD Loan 9113-GE: For the year ended Cumulative as at 31 December 2023 31 December 2023 1 Opening Balance: - - Add: 2 Cumulative unexplained discrepancy - - 3 IBRD advance/replenishment during the current semester - - Less: Refund to IDA/PHRD from DA during the current 4 - - semester 5 Present outstanding amount advanced to DA - - DA closing balance as at 31/12/23 carried forward to next 6 - - period Add: Amount of eligible expenditures paid during the current 7 - - semester 8 Service charges (if debited into DA) - - 9 Less: Interest earned (if credited into DA) - - 10 Total advance accounted for - - 11 Discrepancy (5)-(10) to be explained /II - - AIIB Loan L0388A: For the year ended Cumulative as at 31 December 2023 31 December 2023 1 Opening Balance: - - Add: 2 Cumulative unexplained discrepancy - - 3 IBRD advance/replenishment during the current semester - - Less: Refund to IDA/PHRD from DA during the current 4 - - semester 5 Present outstanding amount advanced to DA - - DA closing balance as at 31/12/23 carried forward to next 6 - - period Add: Amount of eligible expenditures paid during the current 7 - - semester 8 Service charges (if debited into DA) - - 9 Less: Interest earned (if credited into DA) - - 10 Total advance accounted for - - 11 Discrepancy(5)-(10) to be explained /II - - Page 15 - 17 Emergency Covid-19 Response Project IBRD Loan Number 9113-GE, IBRD Loan 9273-GE and AIIB Loan Number L0388A NOTES TO THE SPECIAL PURPOSE PROJECT FINANCIAL STATEMENTS For the period from 1 January 2024 to 30 July 2024 (Amounts are shown in EUR) 4. Statement of Designated Accounts (continued) IBRD Loan 9273-GE: For the year ended Cumulative as at 31 December 2023 31 December 2023 1 Opening Balance: 1,560,351 - Add: 2 Cumulative unexplained discrepancy - - 3 IBRD advance/replenishment during the current semester 521,243 1,560,351 Less: Refund to IDA/PHRD from DA during the current 4 - - semester 5 Present outstanding amount advanced to DA 2,081,594 2,081,594 DA closing balance as at 31/12/23 carried forward to next 6 1,875,178 1,875,178 period Add: Amount of eligible expenditures paid during the current 7 206,416 206,416 semester 8 Service charges (if debited into DA) - - 9 Less: Interest earned (if credited into DA) - - 10 Total advance accounted for 2,081,243 2,081,594 11 Discrepancy(5)-(10) to be explained /II - - 5. Statement of Financial Position (Statement of Fund Balances) The Statement of Financial Position discloses assets, liabilities and net assets of the Project as at reporting date. 30 July 2024 31 December 2023 ASSETS Cash - 1,886,801 Prepayments - - - 1,886,801 LIABILITIES Payables to GOG* - (598,614) - (598,614) Net Assets - 1,288,187 Funds received Fund received from IBRD 91130 73,100,000 72,675,677 Fund received from AIIB C1670 90,403,047 89,617,951 Fund received from IBRD 92730 22,316,330 22,303,326 Refund to IDA/PHRD from DA during the current semester (1,806,075) - 184,013,302 184,596,954 Expenditures Project expenses 175,985,562 175,290,063 175,985,562 175,290,063 Foreign Exchange difference (8,027,740) (8,018,704) Total net assets - 1,288,187 *Payables to GOG is amount of reporting period eligible expenditure which is paid by the Government of Georgia (“GOG”) during reporting period and will be reimbursed by IBRD and AIIB. Page 16 - 17 Emergency Covid-19 Response Project IBRD Loan Number 9113-GE, IBRD Loan 9273-GE and AIIB Loan Number L0388A NOTES TO THE SPECIAL PURPOSE PROJECT FINANCIAL STATEMENTS For the period from 1 January 2024 to 30 July 2024 (Amounts are shown in EUR) 6. Reconciliation Between The Amounts Shown As Received From The IBRD And AIIB To Actual Expenditures Of The Project For the year ended For the year ended 30 July 2024 31 December 2023 Application of Withdrawals Schedule Expenses incurred as per Application of Withdrawal schedule (96,885) (1,586,576) Expenses incurred without Application of Withdrawal schedule (598,614) (598,614) (695,499) (2,185,190) Funds received: IBRD 91130 424,324 593,609 AIIB C1670 785,096 729,351 IBRD 92730 13,004 770,779 Refund to IDA/PHRD from DA during the current semester (1,806,075) - (583,651) 2,093,739 Foreign exchange difference (9,037) 15,673 Add: Opening Balance Designated account: IBRD 91130 - - AIIB C1670 - - IBRD 92730 1,875,178 1,560,351 Other account 11,623 - Prepayments** - - Payables to GOG (598,614) (196,386) 1,288,187 1,363,965 Less: Closing Balance Designated account: IBRD 91130 - - AIIB C1670 - - IBRD 92730 - 1,875,178 Other account - 11,623 Prepayments - - Payables to GOG - (598,614) - 1,288,187 Total Expenditure incurred 695,499 2,185,190 7. Commitments and Contingencies Management is not aware of any commitments and contingencies which would have a material impact on this special purpose project financial statements as at 30 July 2024 for the period then ended. 8. Georgian operating environment MoILHSA operations are located in Georgia. Consequently, MoILHSA is exposed to the economic and financial markets of Georgia, which display characteristics of an emerging market. The legal, tax and regulatory frameworks continue development, but are subject to varying interpretations and frequent changes which together with other legal and fiscal impediments contribute to the challenges faced by entities operating in Georgia. The special purpose project financial statements reflect management’s assessment of the impact of the Georgian operating environment on the operations of the MoILHSA. The future operating environment may differ from management’s assessment. 9. Events after the reporting period As of the date of issuance of these special purpose project financial statements, no significant events or transactions have occurred. Page 17 - 17