1 1 I I I I I I I I I I

Transcription

1 Public Disclosure Authorized Public Disclosure Authorized 1 1 Public Disclosure Authorized Public Disclosure Authorized H2 NFRASTRUKTURA d.o.o., Zagreb SUSTANABLE CROATAN RALWAYS N EUROPE PROJECT NTERNATONAL BANK FOR RECONSTRUCTON AND DEVELOPMENT PROJECT FNANCAL STATEMENTS AND SPECAL ACCOUNT STATEMENT TOGETHER WTH NDEPENDENT AUDTORS REPORT FOR THE YEAR ENDED 31 December 2015

2 SUSTANABLE CROATAN RALWAYS N EUROPE PROJECT NTERNATONAL BANK FOR RECONSTRUCTON AND DEVELOPMENT CONTENTS Page ndependent Auditors Report on Project Financial Statements 1-2 Statement of Assets and Liabilities 3 Statements of Sources and Uses of Funds 4-5 Statement of Uses of Funds by Activity 6-7 Summary Reports and Statement of Expenditure 8 Designated Account Statement 9 Notes to the Project Financial Statements Reconciliation of the Loan account 15 Management Letter Checklist 18

3 Tel: BDO Croatia d.o.o. Fax: Zagreb B D O bdo-croatia.hr Trg J. F. Kennedy 6b NDEPENDENT AUDTORS REPORT 1. We have audited the accompanying Financial Statements of the SUSTANABLE CROATAN RALWAYS N EUROPE PROJECT (hereinafter: the "Project) financed under the NTERNATONAL BANK FOR RECONSTRUCTON AND DEVELOPMENT (Loan), which comprise the Statement of Assets and Liabilities, the Statements of Sources and Uses of Funds, the Statement of Uses of Funds by Activities, Statement of Expenditure (SOE) and Designated Account Statement for the year ended 31 December 2015 (all together, the "Project Financial Statements"). 2. The Project Financial Statements are the responsibility of the Projects management. Our responsibility is to express an opinion on the Project Financial Statements based on our audit. 3. We conducted our audit in accordance with nternational Standards on Auditing issued by the nternational Auditing and Assurance Standards Board of the nternational Federation of Accountants. These standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management as welt as evaluating the overall statement presentation. We believe our audit provides a reasonable basis for our opinion. The Project managements policy is to prepare the accompanying statements on the cash receipts and payments basis in conformity with nternational Public Sector Accounting Standards issued by the Public Sector Committee of the nternational Federation of Accountants. On this basis, cash receipts are recognized when received and cash expenditures are recognized when paid rather than when incurred n our opinion, Financial Statements of the SUSTANABLE CROATAN RALWAYS N EUROPE PROJECT present fairly in all material respects the cash receipts and payments of the Project during the year ended 31 December 2015 in accordance with nternational Public Sector Accounting Standards issued by nternational Federation of Accountants. the Public Sector Committee of the Registrirano kod Trgova6kog suda u Zagrebu pod brojem O1B

4 Tel: Fax: bdo-croatia.hr BDO Croatia d.o.o Zagreb Trg J. F. Kennedy 6b 5. With respect to Summary Statement of Expenditure ("SOE") - Application for Loan Withdrawal: (a) adequate supporting documentation has been maintained to support claims for reimbursements of expenditures incurred; (b) the Summary Statement of Expenditure has been reconciled to the other Project Financial Statements and (c) the expenditure disbursements underlying the Summary Statement of Expenditure have been made in accordance with the purposes intended in the Loan Agreement No HR. 1 BDO CROATA d.o.o., Zagreb Trg J. F. Kennedy 6b Zagreb BDO Republic of Croatia ---- A)O 92R0Croalia dl.o.o. Za pr 10j r i/o,rskih,.konzalling i rauno oi i 4) N elfibl usluga Zdenko Balen, certified auditor, Member of the Management Board Zagreb, 26 March 2016 Registrirano kod Trgovakog suda u Zagrebu pod brojem OlB

5 STATEMENT OF ASSETS AND LABLTES For the years ended 31 December December December 2014 EUR EUR Assets Front end fee Project expenditures TOTAL Liabilities BRD Loan No HR TOTAL Project is effective as of 4 August SUSTANABLE CROATAN RALWAYS N EUROPE PROJECT NTERNATONAL BANK FOR RECONSTRUCTON AND DEVELOPMENT

6 STATEMENT OF SOURCES AND USES OF FUNDS - CUMULATVE For the year ended 31 December 2015 Actual in HRK Plan in HRK Cumulative in HRK till 31 n the year December Plan for Completion project life progress in % Sources of Funding % Counterpart funding % BRD Loan Funds % Front-end Fee Advances to Designated Account - - Reimbursement Direct Payments -... Less: Use of funds - project expenditures by loan categories % 1. Goods, non-consulting services, consultants services and training for Part A of the Project Retrenchment Payments Goods, works, non-consulting services, consultants services and training for Part D of the Project % 4. Front-end fee % Designated account balance is not included in the statement. The report presents counterpart funds used for the project and the loan funds used for eligible project expenditures. The Croatian National Bank middle exchange rate for EUR as of 31 December 2015 of is applied for the data in the column Plan for project life. Disbursement categories are included in the Loan agreement and overall loan amount of EUR 79 million includes front end fee. Front end fee which is not predicted as a separate disbursement category in the Project appraisal document (PAD) is deducted from the planned disbursement under category goods, works, non-consulting services, consultants services and training in the column Plan Project Life in order to make balance with the loan amount. SUSTANABLE CROATAN RALWAYS N EUROPE PROJECT NTERNATONAL BANK FOR RECONSTRUCTON AND DEVELOPMENT 4

7 STATEMENT OF SOURCES AND USES OF FUNDS - CUMULATVE For the year ended 31 December 2015 Actual in EUR Plan in EUR Cumulative in EUR n the year till 31 Plan for Completion 2015 December 2015 Project Life Progress in % Sources of Funding % Counterpart funding % BRD Loan Funds % Front-end Fee Advances to Designated Account - - Reimbursement Direct Payments Less: Use of funds - project expenditures by loan categories % 1. Goods, non-consulting services, consultants services and training for Part A of the Project Retrenchment Payments Goods, works, non-consulting services, consultants services and training for Part D of the Project % 4. Front-end fee -category % Designated account balance is not included in the statement. The statement presents counterpart funds used for the project and the loan funds used for eligible project expenditures. SUSTANABLE CROATAN RALWAYS N EUROPE PROJECT NTERNATONAL BANK FOR RECONSTRUCTON AND DEVELOPMENT

8 , _ Z L i а й w с С - р сс с С fc о а N а + ае ае ае 3е г2 С G1, N о м N О г0 о о Е и и Gj О }, О L i,, i i v С Ш гб + й v N n и и м О оо и N м гб Ср,С О О D N ^ й О м.о й ^ Ш. м о р О р а0 м.мо ^ рр L и.j ш У.о г:i.о N. о о; оо й +-+ _. = о v ` а о ^ с г+,v - м C с Г. р О CQ О го а С - д +-+ С г0 "" N ^ Е Е а С и, о et и ^ о j 1 и г N _ О > р И о О Н О о м и, ^ со о " О W гб о м v У м.о ь И о " дш i. о о. 1 О " Г О с о - м и,с о Ё cv пs v aci д о о Е,, n й N N Г и L С л! о м о? р ь N Т У О.,. о о О С О Z М s 2 О + " м 1 м w О С г0. L ` i с.- и + й О и G1 W Е V С i ш ( ш W `о v с v о о а а + L Ё а г С С _ у и,, с_ О Л П1 Ф V с С at.+ р р V Н N fб С U LaJ а и v о U ; г } р р ~++ > й L Й т N t с и L1 и v " Е У v Q О Е о >м > л с Е г л J г и 3 и = W С _ с v У i и О LL Ш + L и С го гио v С Ri гб DЛ Н о С и О na д а д го с с ор "" гб _Q У W` т й Е о с 3 Ё г о й " F- Z и с а с р и W w С N с L а Q й о с. с tc " i+ ш о О т С " Ё Т Jro. л L Ё с г v а Ua0 V, г оа р t а р Ф `` с с Ф гб N С С J 00 ш j, Е с }. U С v й w оп [ [ л w о L, д с а о, с гv го, i.:+ г0 ` J С^ Ш р а О W и а р,,, гlа й ш с о, й й Ш Z а Z Н о а й о > д Е а ш й и LL L а `о о " с а ^ г;, й = й о Н ш о _ й Q и li. а ^ Q ni G С w й ni м v iri Li Н д р з 3 Й г О

9 ш ш й ^, с с г С о С 4J Q 1] О + а ш,., а м С ) Ё cr м г О,., Ё, о о w -v - а, й : о о о о о о о о о о о о go о о й о й о о О ^ и О, v G1 о о c.i о ^ а и : v о. о о о о о ^ J i+-i ci о о Г - м ` c i с: й Г ^ и 0., с а о с -- а О, С б.ё Ё,,,, r.мо й О.о n Е > м о ` и.,, _ г ri м ^ и _ О О С`! W U 7 _ д v м Ш = N Г И aei ш t Q и О С Е + и с v г а о 0 й г,. г,. о _, U1 м О ги.i й D L С л гi р О > F L о W о N Г.- О С Z N Г ао = л + о лй ао w W и. v > `о с й N с р о aei ol л а а о й о д Z о й о О F - г ^о ш С V У ш Е ш 3, а О О Н > ^ г Й т N c.i Q ь о и + и Z д и с о v? о QO г у 0 г Ф 3,, г С и 3 W о с >м Е л с гс >. J v а ` 2 i С v ш и О $ НQ о о, га о л г с О о _ д Q С а т i, л "0 +. Z 1i WM v v `^ Е о с л з v Ё о й и " 1-Z v гсо о 0 - и v С П- v а а - о и `о с, С t, у и о л о 4; N о о _ о, " с Ё ` v го. с Ё с й д V а о с л v Е + 3 о ш _ а,, +, W г ~ гб оа о г Ло о t а р га О с с J о0 ш Е ; й с ; а ол У У ii с ш о ао v `о й ; гсо й Ш Ш Z Q О W. д ш у о и с G v rts ш J L а Z F- + ш 7 й v ri й С N ++ Q 7 С L - W Z Q i и Q а г ; и N й w l р Н д,_ И Q Й L а Q N о С ш г i м v iri i з 3 й г О W

10

11 DESGNATED ACCOUNT STATEMENT for the year ended 31 December, 2015 (EUR) Account No. Depository Bank Address HR Hrvatska pogtanska banka d.d., Zagreb Jurigi6eva 4, Zagreb Loan BRD Loan No For the year From the beginning of the Project 1 Opening balance at the beginning of the period EUR EUR Add: 2 World Bank advances into DA during the period 3 nterest earned (if credited into DA) Funds available during the period Less: 4 Payments for eligible expenditures during the period 5 Refund to World Bank from the DA during the period 6 Service charges (if debited to DA) 7 Closing balance at the end of the period All Payments from the WB Special Account for the project expenditures Description /supplier/contract Date EUR Amount in HRK 7 Total. /v There were no transactions recorded on the designated account in the period from 4 August 2015 tit( 31 December SUSTANABLE CROATAN RALWAYS N EUROPE PROJECT NTERNATONAL BANK FOR RECONSTRUCTON AND DEVELOPMENT 9

12 NOTES TO THE PROJECT FNANCAL STATEMENTS for the year ended 31 December GENERAL NFORMATON n May 2015 nternational Bank for Reconstruction and Development approved three loans to railway sector totalling to EUR million, of which EUR 43 million to the company HZ PUTNCK PRJEVOZ d.o.o., Zagreb, EUR 41,5 million to the company H2 CARGO d.o.o., Zagreb and EUR 79 million to the company HZ NFRASTRUKTURA d.o.o., Zagreb. Granted loans are part of the "Sustainable Croatian Railways in Europe Project" (SUCRE) which became effective on 4 August The objective of the Project is to improve the operational efficiency and the financial sustainability of the public railway sector in the Republic of Croatia. The Project consists of the following parts: Part A Support to the Sector Restructuring and Coordination 1. Finalizing asset management separation among the railway companies and clarifying the legal status of their main assets, through the provision of consulting services and non-consulting services to Ministry of Maritime Affairs, Transport and nfrastructure. 2. Project coordination support, sector reform monitoring, and definition of railway services obligations with H2 NFRASTRUKTURA d.o.o., Zagreb and H2 PUTNCK PRJEVOZ d.o.o., Zagreb through the provision of consulting services, non-consulting services, Training, and Operating Costs to Ministry of Maritime Affairs, Transport and nfrastructure. Part B Zagreb Support to restructuring of the company H2 PUTNK PRJEVOZ d.o.o., 1. Retrenchment. Provision of the retrenchment payments for the company HZ PUTNCK PRJEVOZ d.o.o., Zagreb, including job outplacement and retraining services, counseling and advisory support. 2. nvestment to contribute to the restructuring plan of the company HZ PUTNCK PRJEVOZ d.o.o., Zagreb (a) Rehabilitating rolling stock to improve efficiency of the fleet. (b) Modernizing and integrating information technology. (c) Preparing studies to adapt business processes to reorganize operations and improve energy efficiency of operations. (d) Capacity building on management and restructuring. Part C Support to the restructuring of the company HZ CARGO d.o.o., Zagreb 1. Retrenchment -provision of the retrenchment payments for the company HZ CARGO d.o.o., Zagreb, including job outplacement and retraining services, counseling and advisory support. SUSTANABLE CROATAN RALWAYS N EUROPE PROJECT NTERNATONAL BANK FOR RECONSTRUCTON AND DEVELOPMENT 10

13 NOTES TO THE PROJECT FNANCAL STATEMENTS for the year ended 31 December nvestment to contribute to the restructuring plan of the company HZ CARGO d.o.o., Zagreb (a) (b) (c) Rehabilitating rolling stock to improve efficiency of the fleet. Modernizing and integrating information technology. Capacity building on management and restructuring. Part D Support to the restructuring of the company HZ NFRASTRUKTURA d.o.o., Zagreb rand enabling investment to increase system efficiency 1. Retrenchment Provision of the retrenchment payments for the company H2 HZ NFRASTRUKTURA d.o.o., Zagreb including job outplacement and retraining services, counseling and advisory support. 2. nstalling railway safety crossings based on prioritization criteria set forth in Supplemental Letter Undertaking other railway safety works, including: (a) (b) Reinforcing cuts and slope on the two corridors from Rijeka; Rehabilitating or replacing the Klostar and Ljubosina bridges on the Zagreb-Rijeka axis. 4. Undertaking emergency infrastructure investments, including: (a) Rehabilitating the Ogulin - Moravice line; (b) Rehabilitating the Varazdin-Cakovec line; and (c) Replacing switches, electrical, and support systems (for safety and signaling) on international and national corridors selected pursuant to criteria set forth in Supplemental Letter #4; and (d) Constructing and improving the Borongaj, Rijeka-Brajdica, and Vinkovci railway stations. 5. Capacity building on management and restructuring. The Company is responsible for the management of the activities including procurement, disbursement, financial management, monitoring, reporting and coordination. The objective of this components is to support operational and financial restructuring of the Company and to contribute in restoration of the physical infrastructures conditions. The Company has also fiduciary responsibility for implementation of the component A in the amount of EUR 2,6 million granted on behalf to the Ministry of Maritime Affairs, Transport and nfrastructure provided under the same loan. 11 SUSTANABLE CROATAN RALWAYS N EUROPE PROJECT NTERNATONAL BANK FOR RECONSTRUCTON AND DEVELOPMENT

14 NOTES TO THE PROJECT FNANCAL STATEMENTS for the year ended 31 December NTERNATONAL BANK FOR RECONSTRUCTON AND DEVELOPMENT LOAN AGREEMENT H2 NFRASTRUKTURA d.o.o., Zagreb (the Company) signed a Loan Agreement with the nternational Bank for Reconstruction and Development (the Bank) in the amount of EUR 79 millions on 6 May 2015 for the financing of the Sustainable Croatian Railways in Europe Project. Principal, charges, fees and interest are the obligations of the Company as a Borrower. t was agreed that the Company will pay to the Bank a front-end fee in the amount of 0,25% from the total loan amount or EUR The Commitment charge payable by the Company is 0,25% per annum on the unwithdrawn loan balance. The interest payable by the Company is at a rate equal to reference rate for the loan currency plus the variable spread. nterest, commitment charges on the unwithdrawn loan balance and other charges shall be repayable semi-annually in arrears on 1 June and 1 December in each year. The principal amount of the loan repayable on each principal payment date is determined by multiplying: withdrawn loan balance as of the first principal payment date; by the instalment share for each principal payment date as shown in the table below: Principal payment date nstallment share (Expressed as a percentage) 1 June % 1 December % 1 June % 1 December % 1 June % 1 December % 1 June % 1 December % 1 June % 1 December % 1 June % 1 December % 1 June % 1 December % SUSTANABLE CROATAN RALWAYS N EUROPE PROJECT NTERNATONAL BANK FOR RECONSTRUCTON AND DEVELOPMENT 12

15 NOTES TO THE PROJECT FNANCAL STATEMENTS for the year ended 31 December 2015 Pursuant to the finance contract, the Company has to ensure documents on the assets/funds usage and shall purchase goods, procure services and order works for the Project in accordance with the current edition of the BRD Guide to Procurement. Pursuant to the finance contract the Company will engage management consultant with international experience for the purpose of generally supporting the investment planning, management of contracts and technical support. Furthermore, the Company shall engage consultants - designers and supervisors under selection procedures satisfactory to the Bank. The Company has to use funds approved by and remitted from the loan exclusively for the purpose they were intended. The Bank is authorized to cancel further assets usage if they establish that the approved assets are not used for designated purposes. 3. SUBSDARY AGREEMENT The Company has signed a subsidiary agreement with the Republic of Croatian on 7 May 2015, pursuant to which the Republic of Croatia committed to compensate the Company for the amount of the loan paid under the component A "Support sector restructuring and coordination" in the amount of EUR 2.6 million. The objective of this component is to assist the Ministry of Maritime Affairs, Transport and nfrastructure as coordinator of the railway sector to increase its institutional capacity. 4. PROJECT COST AND FNANCNG Goods, works, Goods, works, non-consulting non-consulting services, and services, and Retrenchment consultants consultants Capitalization Payments services for services for of interest Sources of funds under Part D Part A of the Part D of the charges ft (in EUR million) Total of the Project Project Project front-end fee BRD loan 79 13,7 2,6 62,7 0,1 Government funds Total 79 13,7 2,6 62,7 0,1 5. PROJECT MANAGEMENT Project implementation unit ("PU") has been established within the the Company and is in charge for the project implementation. SUSTANABLE CROATAN RALWAYS N EUROPE PROJECT NTERNATONAL BANK FOR RECONSTRUCTON AND DEVELOPMENT 13

16 NOTES TO THE PROJECT FNANCAL STATEMENTS for the year ended 31 December ACCOUNTNG RECORDS AND BASE FOR PRESENTATON Within the business books (general Ledger) of the Company are recorded all Project transactions. Project accounting records are also kept in supporting tables (excel), based on which the enclosed Financial Statements of the Project have been made. n order to realize the Project, special account in kunas and foreign currency accounts is opened in Hrvatska pogtanska banka d.d., Zagreb. 7. DEVATONS FROM AGREED CONDTONS There were no deviations from the contracted terms. 8. PROJECT EXPENDTURES 31 December Expenditures in HRK 2015 Works Goods and non-consulting Total VALUE ADDED TAX Value Added Tax (VAT) is calculated under the valid regulations and is paid from the loan funds. 14 SUSTANABLE CROATAN RALWAYS N EUROPE PROJECT NTERNATONAL BANK FOR RECONSTRUCTON AND DEVELOPMENT

17 Reconciliation of the Loan account in EUR in HRK Loan disbursed until 31 December Amount on Designated account - - Add: total expenditures stated in the Statement of sources and Uses of funds Add: Front-end fee Add: Foreign exchange differences Total recorded SUSTANABLE CROATAN RALWAYS N EUROPE PROJECT NTERNATONAL BANK FOR RECONSTRUCTON AND DEVELOPMENT