<1 bakertiLLy
                                                                                         65 Stefan cel Маге Gi Sfant Blvd
                                                                                         7'h Floor, Office 715
                                                                                         Chisinau, MD-2001
                                                                                          Moldova

                                                                                         Т: +373 22 233003
                                                                                         F: +373 22 234044

INDEPENDENT AUDITORS' REPORT                                                             info@bakertilly.md
                                                                                         www.bakertilly.md
То the management of the OJSC "Barqi Tojik" {"ВТ")



Opinion

We have audited the special purpose financial statements of "Nurek Hydropower Rehabllitation Project,
Phase I and Phase 11" ("Project") financed Ьу Financing Agreements Юд Credit Number 6024-ТJ, IDA
Credit Number 6025-TJ and IDA Grant Number D179-TJ dated 2 June 2017, Юд Grant Number D685-TJ
dated 3 December 2020, Loan AIIB С1470 dated 1 August 2017, and EADB lnvestment loan No7 dated 4
July 2019, which comprise the statement of cash receipts and payments, and the statement of
expenditures рег components for the уеаг ended 31 December 2023, and notes to the special purpose
financial statements, including а summary of significant accounting policies ("special purpose financial
statements").

ln our opinion, the accompanying special purpose financial statements for the уеаг ended 31 December
2023 аге prepared, in all material resect, with lnternational PuЫic Sector Accounting Standard: Financial
Reporting Under the Cash Basis of Accounting, ("IPSAS-Cash Basis") and World Bank's Financial
Management Sector Board's "Guidelines: Annual Financial Reporting and Auditing for World Bank
Financed Activities" ("WB Guidelines").

Basis for Opinion

We conducted our audit in accordance with the lnternational Standards оп Auditing ("ISAs") as issued Ьу
lnternational Auditing and Assurance Standards Board ("IMSB"). Our responsibllities under those
standards аге further described in the Auditor's Responsibllities for the Audit of the Financial Statements
section of our report.

We аге independent of the Project and of the ВТ in accordance with the lnternational Ethics Standards
Board for Accountants' Code of Ethics for Professional Accountants ("IESBA Code"), and we have fulfilled
out other ethical requirements in accordance with IESBA Code.

We believe that the audit evidence we have oblained is sufficient and appropriate to provide а basis for
our opinion.
Emphasis of Matter

Front-end fee /оап А/1В С1470

Without modifying our opinion, we draw attention to Note 4, Section 5, Frontage and Fees, which states
that loan servicing fees were not reflected in the lenders' system for the AIIB С1470 loan of $150,000.

Cash Basis of Accounting

Without modifying our opinion, we draw attention to Note 2 to the special purpose financial statements,
which describes that financial statements аге prepared in accordance with cash basis framework, as а
result, they may not Ье suitaЫe for other purposes.


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Responsibllities of the Management for the Financial Statements
Management of the PRG ВТ is responsiЫe for the preparation of the special purpose financial statements
in accordance with IPSAS-Cash Basis issued Ьу the lnternational PuЫic Sector Accounting Standards
Board ("IPSASB"} and World Bank's Financial Management Sector Board's "Guidelines: Annual Financial
Reporting and Auditing for World Bank Financed Activities" ("WB Guidelines"}, and for such internal
control as management determines is necessary to епаЫе the preparation of special purpose financial
statements that аге free from material misstatement, whether due to fraud ог error.

Auditor's Responsibllity for the Audit of the Special Purpose Financial Statements
Our objectives аге to oblain геаsопаЫе assurance about whether the special purpose financial
statements as а whole are free from material misstatement, whether due to fraud or error, and to issue ап
auditor's report that includes our opinion. ReasonaЬle assurance is high levei of assurance but is not а
guaranty that ап audit conducted in accordance with ISAs will always detect а material misstatement
when it exists. Misstatements arise from fraud and еггог and аге considered material if, individually or in
the aggregate, they could reasonaЫy Ье expected to influence the economic decisions of users taken
based оп these special purpose financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgement and maintain
professional scepticism throughout the audit. We also:

         •   ldentify and assess the risks of material misstatement of the special purpose financial
             statements, whether due to fraud ог error, design and perform audit procedures responsive
             to those risks, and oЬtain audit evidence that is sufficient and appropriate to provide а basis
             for our opinion. The risk of not detecting а material misstatement resulting from fraud is
             higher than for опе resulting from error, as fraud may involve collusion, forgery, intentional
             omissions, misrepresentations, ог the override of internal control.
         •   OЬtain ап understanding of internal control relevant to the audit to design audit procedures
             that аге appropriate in the circumstances, but not for the purpose of expressing ап opinion
             оп the effectiveness of the internal control.
         •   Evaluate the appropriateness of accounting policies used and the reasonaЫeness of
             accounting estimates and related disclosures made Ьу management.
         •   Conclude оп the appropriateness of management's use of the going concern basis of
             accounting and, based оп the audit evidence oЬtained, whether а material uncertainty exists
             related to events or conditions that may cast significant douЬt оп the Project's abllity to
             continue as а going сопсегп. lf we conclude that а material uncertainty exists, we are
             required to draw attention in our auditor's report to the related disclosures in the project
             financial statements ог, if such disclosures are inadequate, to modify our opinion. Our
             conclusions аге based оп the audit evidence oЬtained up to the date of our auditor's герогt.
             However, future events ог conditions may cause the Project to cease to continue as а going
             concern.




Baker Tilly Klitou and Partners
Chisinau, the RepuЬlic of Moldova
June 1 О, 2024


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