Montenegro Energy Efficiency Project - MEEP Project ID: P LOAN AGREEMENT No ME

Transcription

1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Montenegro Energy Efficiency Project - MEEP Project ID: P LOAN AGREEMENT No ME Financial Statements for the period from 1 January 2014 to 30 April 2015 and Independent Auditor s Report Public Disclosure Authorized

2 Montenegro Energy Efficiency Project - MEEP Project ID: P Loan Agreement No 7637-ME CONTENTS Page INDEPENDENT AUDITOR S REPORT 1-2 PROJECT FINANCIAL STATEMENTS Statement of Sources and Uses of Funds Statement of Uses of Funds by Project Activities Special Account Statement Notes to the Project Financial Statements Annex 1 Project Financial Statements Annex 2 Supporting Documentation Special Purpose SOEs Used as the Basis for the Submission of Withdrawal Applications

3 INDEPENDENT AUDITOR S REPORT To the Ministry of Economy of Montenegro We have audited the accompanying financial statements of the Montenegro Energy Efficiency Project (hereinafter referred to as: MEEP), financed under International Bank for Reconstruction and Development (hereinafter referred to as: IBRD) Loan Agreement No ME as of 30 April 2015, and for the period from 1 January 2014 to 30 April These financial statements include Statement of Sources and Uses of Funds, Statement of Uses of Funds by Project Activities and Statement of Special Account. Management s Responsibility for the Financial Statements Management is responsible for the preparation of these financial statements in accordance with the World Bank Guidelines and procedures and contractual basis of the MEEP and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor s Responsibility Our responsibility is to express an opinion on MEEP financial statements based on our audit. We conducted our audit in accordance with International Standards on Auditing and to relevant World Bank guidelines. Those standards and World Bank guidelines require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the preparation of the financial statements 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 MEEP s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the MEEP s financial statements present fairly, in all material respects, the balance on the Special Account as of 30 April 2015 and the movements on the Special Account and the Sources and Uses of Funds of Project for the period from 1 January 2014 to 30 April 2015, in accordance with the World Bank guidelines and procedures and contractual basis of the Montenegro Energy Efficiency Project.

4 INDEPENDENT AUDITOR S REPORT To the Ministry of Economy of Montenegro (Continued) Basis of Accounting The MEEP s financial statements are compiled in accordance with cash basis of accounting, as stated in Note 2.1. (b) to the financial statements. Other Matters In addition, (a) with respect to SOE, adequate supporting documentation has been maintained to support claims to the World Bank for reimbursements of expenditures incurred; and (b) which expenditures are eligible for financing under the Loan Agreement No ME. Belgrade, 22 October 2015 Milovan Popovic Certified Auditor 2

5

6

7

8 NOTES TO THE PROJECT FINANCIAL STATEMENTS For the Period from 1 January 2013 to 30 April 2015 Montenegro Energy Efficiency Project - MEEP Project ID: P Loan Agreement No ME 1. GENERAL INFORMATION Montenegro on its way to European integrations follows international trend in the energy sector, recognizing energy as a product of a particular interest for the national as well as for the global economy. Montenegro as an Ecological state strives to develop its energy sector while at the same time respecting principle of sustainable development and ensuring maximum protection of environment. In 2005 the Government of Montenegro (hereinafter referred as to: GOM) adopted the Strategy of Energy Efficiency for Montenegro. The Strategy of Energy Efficiency is implemented through annual Action Plans that the Energy Efficiency Sector proposes to the ministry responsible for energy. The GOM adopted in December 2007 the Energy Development Strategy to be implemented by 2025 (hereinafter referred as to: the Strategy) and in the beginning of 2008 they adopted the Spatial Plan of Montenegro to be implemented by These two important documents are mutually harmonized, this being a basis for further development of the energy sector of Montenegro. Prior to the aforementioned documents, Montenegro signed the Treaty establishing the Energy Community for countries of the South East Europe in 2005 (ratified in 2006) and has ratified the Kyoto protocol for United Nations Framework Convention for Climate Changes (UNFCCC) in The White Book, Energy Development Strategy by 2025, prepared by the Ministry for Economy of Montenegro in cooperation with numerous individuals and institutions, sets out the framework and lines of activities in the energy sector and gives guidelines for making progress in the energy sector in order to ensure optimum use of available energy potential and to create preconditions for undisturbed development of all sectors of economy. The Strategy incorporates energy, ecological, economic, legislative, organizational, institutional, and educational dimensions. The Strategy is created to serve as a platform in the process of Montenegro s energy sector approaching to the EU. Successful implementation of the Energy Development Strategy should significantly improve safety of electricity supply in the country as well as in the regional electricity market. The GOM, during 2008, accessed the process of negotiating financial assistance with the World Bank, International Bank for Reconstruction and Development (hereinafter referred as to: IBRD) for the purposes of supporting energy efficiency project. The GOM and the IBRD agreed on financing the Montenegro Energy Efficiency Project MEEP on 10 November The overall MEEP costs have been budgeted in amount of EUR 6,500 thousand from IBRD Loan financing. The MEEP implementation period starts on 1 April 2009 and ending on 31 December The MEEP is extended on 22 March 2012 till 30 June 2013, on 26 April 2013 is extended till 30 March 2014 and on 28 February 2014 is extended till 20 December The MEEP will be realized by the GOM while implementation will be divided between Ministry of Economy, Ministry of Health and Ministry of Education. The GOM and the IBRD agreed on financing the Montenegro Energy Efficiency Project Additional Financing - MEEP AF in the amount of EUR 5,000 thousand. The MEEP AF implementation period starts on April 2014 and ending on 30 March MEEP AF is a continuation of the project MEEP. 6

9 NOTES TO THE PROJECT FINANCIAL STATEMENTS For the Period from 1 January 2013 to 30 April 2015 Montenegro Energy Efficiency Project - MEEP Project ID: P Loan Agreement No ME 1. GENERAL INFORMATION (Continued) The development objective of the Montenegro Energy Efficiency Project (MEEP) is to improve energy efficiency performance in targeted public sector buildings in order to provide a demonstrated basis for development of a sustainable energy efficiency improvement program in the public sector in Montenegro. There are two components to the MEEP. The first component of the MEEP is energy efficiency improvement in public sector buildings across Montenegro. This component will focus on financing energy efficiency retrofitting in public sector buildings and it is budgeted in amount of EUR 6,000 thousand. The second component of the MEEP is technical assistance for project implementation and it is budgeted in amount of EUR 500 thousand. In the following table, the acceptable categories of expenses that can be financed from the Loan are presented, as well as the allocated amount of the funds from the Loan for each Category and the percentage of costs that have to be financed for eligible expenses by each category: Category Amount of the Loan Allocated (expressed in EUR) Percentage of Expenditures to be financed 1. Goods, works and consultants services for the MEEP EUR 6,233, % 2. Operating Costs EUR 250, % 3. Front-end Fee EUR 16,250 Amount payable pursuant to Section 2.03 of the Agreement in accordance with Section 2.07 (b) of the General Conditions 4. Premia for Interest Rate Caps and Interest Rate Collars - Amount payable pursuant to Section 2.07(c) of the Agreement in accordance with Section 4.05(c) of the General Conditions Total amount EUR 6,500,000 7

10 NOTES TO THE PROJECT FINANCIAL STATEMENTS For the Period from 1 January 2013 to 30 April 2015 Montenegro Energy Efficiency Project - MEEP Project ID: P Loan Agreement No ME 1. GENERAL INFORMATION (Continued) During prior years (2012, 2011, 2010 and 2009) following Contracts are completed: Education buildings: Primary School Bosko Buha in Pljevlja, Primary School Olga Golovic in Niksic, Secondary Economy High School in Bijelo Polje, High School Ivan Uskokovic in Podgorica, Primary School Luka Simonovic in Niksic, Primary School Radomir Mitrovic in Berane, Primary School Bosko Strugar in Ulcinj, High school Cetinje and Health buildings: General Hospital in Berane, General Hospital and Health Center in Pljevlja, General Hospital Bijelo Polje, Special Hospital Risan, Special Hospital Brezovik. During 2013, following Contracts were completed: Institute for Children Disease in Clinic Centre of Montenegro - in Podgorica (contracted amount of works and goods EUR 419,506.76) Student Dormitory in Podgorica (contracted amount of works and goods EUR 221,567.12) Social Monitoring and Evaluation (contracted amount EUR 20,946.00). During 2014, remaining payments were made for Contracts completed during Contracted amount of works and goods EUR 5,220, Technical monitoring and evaluation is conducted during 2013 and 2014 in order to determine the actual energy savings. Total consulting services during 2014 were EUR 141,502.03, out of which EUR 124, was spent on technical monitoring and evaluation. Following major consulting services were completed: Institute for Children Disease in Clinic Centre of Montenegro,, General Hospital Danilo I Cetinje, Health Center Cetinje, General Hospital Kotor and Health Center Kotor - detailed energy audit and technical design consultation (contracted amount EUR 97,992.46), Institute for Children Disease in Clinic Centre of Montenegro, General Hospital Danilo I Cetinje, Health Center Cetinje, General Hospital Kotor and Health Center Kotor - technical control of main technical design documentation for energy efficiency retrofit (contracted amount EUR 9,520). During 2013 consulting services were EUR 213, and total in prior years (2012, 2011, 20 the clinic 10 and 2009) were EUR 489,

11 NOTES TO THE PROJECT FINANCIAL STATEMENTS For the Period from 1 January 2013 to 30 April 2015 Montenegro Energy Efficiency Project - MEEP Project ID: P Loan Agreement No ME 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The following significant accounting policies have been adopted in the preparation of the financial statements. These have consistently been applied with those of the prior year Basis of preparation (a) (b) (c) (d) General The MEEP Financial Statements have been prepared for the purpose of reporting to the IBRD on the activities of the MEEP related to funds received for the completion of the MEEP objectives in accordance with the IBRD Loan Agreement. Cash-basis for accounting Accounting records are maintained in accordance with cash basis of accounting, in accordance with the World Bank guidelines. Cash basis means a basis of accounting that recognizes transactions and other events only when cash is received or paid. However due to fact that project was closed as of 20 December 2014, there was a refund made at the end of April Reference currency The Technical Service Unit under the Ministry of Finance has adopted the EURO ( EUR ) as its reference and measurement currency for consistency with the reporting requirements, as it reflects the economic substance of the underlying events and transactions. The MEEP reporting currency is EUR. Going concern The accompanying financial statements have been prepared for the period starting from 1 January 2013 to the 31 December The MEEP implementation period starts on 1 April 2009 and ending on 20 December However there was a refund made at the end of April

12 NOTES TO THE PROJECT FINANCIAL STATEMENTS For the Period from 1 January 2013 to 30 April 2015 Montenegro Energy Efficiency Project - MEEP Project ID: P Loan Agreement No ME 3. SPECIAL ACCOUNT The Technical Service Unit (hereinafter referred as to: TSU) administers the Special Account. The TSU prepares withdrawal applications for replenishment of the Special Account which ought to be signed by designated signatories. Payments from the Special Account are executed by the means of payment orders. After all the procedures with respect to flow of documents, verifications and authorizations prescribed by internal controls are applied, payment orders signed by designated signatories are submitted for payments from either the Special Account or the Budget (for Government contribution) split in accordance with eligible percentages of financing. In the case of Direct Payment the application form for such method payment is submitted to the Bank with the same authorized signatories as described above. Boris Buskovic and Miodrag Radonjic, Deputy of Minister of Finance/Director General of Directorate General for State Treasury, had/has privileges to the Special Account of the MEEP. Disbursement of funds from the Special Account is done in respect of the written approval from the Senior Financial Officer, Project Coordinator and Deputy Minister of Finance/Director General of Directorate General for State Treasury. Disbursement of funds from the Special Account is done in respect of the written approval from the Senior Financial Officer and Project Coordinator since July, Details concerning the Special Account of the MEEP are as follows: Account No Depository Bank Crnogorska komercijalna banka a.d. Podgorica Address Moskovska bb, Podgorica Currency EUR Bank Accounts with Crnogorska komercijalna banka a.d. Podgorica are non interest bearing to the deposit made to the Special Account by the IBRD. Note: The GOM and the IBRD agreed on financing the Montenegro Energy Efficiency Project Additional Financing - MEEP AF. Because the MEEP AF is a continuation of the project MEEP, IBRD has allowed the use of the same Special Account for MEEP AF. 10

13 NOTES TO THE PROJECT FINANCIAL STATEMENTS For the Period from 1 January 2013 to 30 April 2015 Montenegro Energy Efficiency Project - MEEP Project ID: P Loan Agreement No ME Number of withdrawal application 4. SUMMARY OF EXPENDITURES IBRD s initial payment to the MEEP designated account amounted to EUR 400,000 and it was paid as of 4 August With every further withdrawal application for replenishment of the Special Account, TSU submits to the IBRD Summary of expenditures made by the date of application. The review of submitted summary is presented in the table below, and detailed summaries are shown in the Annex 2 of the report: Date of withdrawal application Application amount Goods, Works and Consultants' Services Operating Costs Total Approved amount WA , , , , , WA , , , , , WA , , , , , Total , , , , , WA , , , , , WA , , , , WA , , , , , WA , , , , , WA , , , , Total , , , , , WA , , , , , WA , , , , , WA , , , , , WA , , , , , WA , , , , WA , , , , , WA , , , , , WA , , , , , Total ,686, ,449, , ,463, ,647, WA , , , , WA , , , , WA , , , , WA , , , , WA , , , , WA , , , , WA , , , , Total ,672, ,668, , ,672, ,580, WA , , , , WA , , , , , WA , , , , Total , , , , , Total 2010, 2011, 2012, 2013 and ,689, ,371, , ,466, ,418, The approved amount is lower than amount in the application, as some contracts covered by the applications were not entered into the WB Operational System i.e. Data Base and related payments subsequently excluded. In FY 2014 the reductions are due to the end of project and the World Bank s practice to reduce the Initial Allocation as Closing Date approaches 11

14 NOTES TO THE PROJECT FINANCIAL STATEMENTS For the Period from 1 January 2013 to 30 April 2015 Montenegro Energy Efficiency Project - MEEP Project ID: P Loan Agreement No ME 4. SUMMARY OF EXPENDITURES (Continued) During 2014, 2013 and 2012 IBRD made no direct payments. IBRD made direct payments in 2011 of expenditures amounting to EUR 109, and in 2010 direct payment expenditures were EUR 615, The major expenditures in 2014 relate to the following: CONTRACTOR / SUPPLIER DESCRIPTION Invoice/Contract Ref # Works IGP Fidija d.o.o. VHM - VH MONTENEGRO M-ENERGO inzenjering d.o.o. Consultants' Services Indikator d.o.o. Ing invest d.o.o. Vinca Institute of Nuclear Sciences Total invoiced amount /EUR/ Paid from SA WB Credit /EUR/ Reconstruction of Children's Hospital and Disease Institute in Clinic Centre Podgorica MNE-EE-7637-ICB-W-12-B6 LOT1 49, , Civil construction works for reconstruction of Special Hospital for Pulmonary Disease Dr Jovan Bulajic, Brezovik, Niksic; Civil construction works for reconstruction of General Hospital Bijelo Polje; Civil Construction Works for New Student Dormitory Podgorica, Phase II and Partial Replacement of Joinery in the Students Restaurant; Civil construction works for reconstruction of Special Hospital Vaso Cukovic, Risan. MNE-EE-7637-ICB-W-11-B4: LOT I MEN-EE-7637-ICB-W-11-B1: LOT I MNE-EE-7637-ICB-W-12-A.11 MNE-EE-7637-ICB-W-11-B5: LOT I 25, , Thermo-technical installations with related electrical works for Special Hospital Vaso Cukovic, Risan MNE-EE-7637-ICB-W-11-B5: LOT II 9, , Detailed Energy Audit and Technical Design Consultant for the Children's Hospital and Disease Institute in Clinic Centre of Montenegro and I set of Buildings MNE-EE-7637-CQ-CS-13-C , , Technical Control of Main Technical Design Documentation for Energy Efficiency Retrofit of Thermal and Electrical Installations in Children's Hospital and Disease Institute Clinic Centre of Montenegro MNE-EE-7637-CQ-CS-13-C , , Technical Monitoring and Evaluation for the Clinic Center of Montenegro MNE-EE-7637-CQ-SSS-12-C.1.1.a 7, , Biljana Maslac Project coordinator Paid salaries, taxes and contributions 8, , , , Other 22, , Total 231, ,

15 NOTES TO THE PROJECT FINANCIAL STATEMENTS For the Period from 1 January 2013 to 30 April 2015 Montenegro Energy Efficiency Project - MEEP Project ID: P Loan Agreement No ME 5. UNDISTRIBUTED FUNDS Undistributed funds for the MEEP as of 30 April 2015 are shown as follows: Date of payment Amount Total amount of the loan 6,130, Disbursed 2009 Payments to Designated account: WA-01 4 August , Payments to Designated account: WA July , WA October , WA December , Payments to Designated account: WA January , WA March , WA June , WA November , WA December , Payments to Designated account: WA January , WA March , WA May , WA July , WA September , WA October , WA November , WA December , Payments to Designated account: WA January , WA February , WA March , WA May , WA August , WA September , WA September , Payments to Designated account: WA January , WA September , WA November ,

16 NOTES TO THE PROJECT FINANCIAL STATEMENTS For the Period from 1 January 2013 to 30 April 2015 Montenegro Energy Efficiency Project - MEEP Project ID: P Loan Agreement No ME 5. UNDISTRIBUTED FUNDS (Continued) Date of payment Amount 2010 Direct payments: WA June , WA June , WA July , WA October , WA August , WA July , WA October , Direct payments: WA March , Front-end Fee 16, Undisbursed (369,799.73) The undisbursed amount of the loan is reconciled with confirmation received by IBRD. 14

17 NOTES TO THE PROJECT FINANCIAL STATEMENTS For the Period from 1 January 2013 to 30 April 2015 Montenegro Energy Efficiency Project - MEEP Project ID: P Loan Agreement No ME 6. INTERNAL ORGANIZATION AND INTERNAL CONTROL SYSTEM 6.1. MEEP Management The GOM, throughout the duration of the MEEP, maintains the MEEP Steering Committee which is headed by the Ministry of Economy, who is responsible for the overall MEEP oversight and coordination and for preparing MEEP Reports. For purposes of Component 1 of the MEEP, the Ministry of Education and the Ministry of Health are responsible for preparing, designing and implementing energy efficiency measures in, respectively, schools and student dormitory and hospitals, and for coordinating with the MEEP Steering Committee. The Ministry of Economy appointed as Project Coordinator Biljana Maslac with respect to qualifications and terms of reference acceptable to the Bank. The Project Coordinator is responsible for supporting the MEEP Steering Committee, the Ministry of Economy, Ministry of Education and the Ministry of Health in the implementation, coordination, monitoring and evaluation of the MEEP, and for coordinating with the MEEP Steering Committee and the Technical Service Unit (TSU) under the Ministry of Finance of Montenegro Ministry of Finance of Montenegro - Technical Services Unit (TSU) The TSU has been established within the Ministry of Finance to support implementation of all World Bank financed projects. The TSU is responsible for the following functions: (i) procurement; (ii) financial management; and (iii) disbursement and auditing arrangements. The TSU will provide these services to the implementing entities of the projects financed by World Bank. The roles and responsibilities of the TSU and the MEEP implementing entities are regulated in accordance with a Memorandum of Understanding. The TSU staff comprising of the Senior Procurement Specialist/Director, Procurement Specialist, Senior Financial Specialist and Financial Specialist Explanation on Internal Control System Adequate system of internal controls has been instituted within the TSU for projects under implementation and is also applied to this MEEP. Defined controls and procedures are applied in practice which has been verified by the Bank s financial management supervision and annual audits by private audit firms for prior audit engagements. In general, key internal controls applied for the MEEP include: Existence of appropriate authorizations and approvals; Good segregation of duties; Different persons being responsible for different phases of transaction; Reconciliations between records and actual balances, as well as with third parties are performed on regular basis; Complete original documentation exists to support all MEEP transactions. 15

18 Montenegro Energy Efficiency Project - MEEP Project ID: P Loan Agreement No 7637-ME Annex 1: Project Financial Statements

19 Montenegro Montenegro Energy Eficiency Project Loan No.: IBRD ME & IBRD 8324 ME Project Sources & Uses of Funds For the Quarter (Q4) Period ending [in Euro] Actual Planned Variance Current Year-To Cumulative Current Year-To Cumulative Current Year-To Cumulative Quarter Date To-Date Quarter Date To-Date Quarter Date To-Date Opening Cash Balance (DA) 762, , , , Add: Sources of Funds GoM-contribution to payments from DA GoM-contribution to Direct Payments IBRD Funds-payments to DA 128, , ,280, , , ,280, IBRD Funds-contribution to Direct Payments , , Total 890, ,125, ,005, , ,125, ,005, Less: Uses of Funds IBRD ME Works - 86, ,220, , ,220, Goods Consultants' Services 12, , , , , , Training & WS & ST , , Operating Costs , , , , Total 12, , ,109, , , ,109, Less: Uses of Funds IBRD 8324 ME Works Goods Consultants' Services 11, , , , , , Training & WS & ST Operating Costs , , , , Total 12, , , , , , Closing Cash Balance (DA*) 865, , , , , , Note: * Amount of 1,730.10, withdrawn as per pro-forma invoice, accounts will be reconciled. Prepared By: Vesna Jestrovic TSU Senior Finance Officer Technical Services Unit - Ministry of Finance Tel: Fax: Mob: : vesna_tsu@yahoo.com 2: vesna.jestrovic.tsu@t-com.me Page 1

20 Montenegro Montenegro Energy Eficiency Project Loan No.: IBRD ME & IBRD 8324 ME Uses of Funds By Project Activities For the Quarter (Q4) Period ending [in Euro] Actual Planned Variance PAD Project Activities Current Year-To Cumulative Current Year-To Cumulative Current Year-To Cumulative Life of Quarter Date To-Date Quarter Date To-Date Quarter Date To-Date Project (a) 1. Ministry of Education and Science (Works & Goods) - 7, ,821, , ,821, Ministry of Health (Works & Goods) - 79, ,398, , ,398, Project Management/Technical Assistance 12, , , , , , Ministry of Health (Works & Goods) Project Management 11, , , , , , Technical Assistance , , , , Total Project Expenditure 25, , ,138, , , ,138, Page 2

21 Montenegro Montenegro Energy Eficiency Project Loan No.: IBRD ME & IBRD 8324 ME Bank Reconciliation as of DECEMBER 31, 2014 [in EUR] Opening balance at the beginning of the quarter 762, Plus: Advances during the quarter 128, Interest earned and retained on account - Less: Refund to IBRD from DA during the quarter - Amount of eligible expenditures paid during the quarter 25, , , Closing balance as at the end of the quarter 865, Balance as of as per Special Account Bank Statement 865, Discrepancies (list and explain below) 0.00 * Page 3

22 Montenegro Montenegro Energy Eficiency Project Loan No.: IBRD ME & IBRD 8324 ME Project Sources & Uses of Funds For the Quarter (Q2) Period ending [in Euro] Actual Planned Variance Current Year-To Cumulative Current Year-To Cumulative Current Year-To Cumulative Quarter Date To-Date Quarter Date To-Date Quarter Date To-Date Opening Cash Balance (DA) 859, , , , Add: Sources of Funds GoM-contribution to payments from DA GoM-contribution to Direct Payments IBRD Funds-payments to DA (357,210.27) (357,210.27) 5,923, (357,210.27) (357,210.27) 5,923, IBRD Funds-contribution to Direct Payments , , Total 502, , ,648, , , ,648, Less: Uses of Funds IBRD ME Works - - 5,220, ,220, Goods Consultants' Services , , Training & WS & ST - - 6, , Operating Costs , , Total - - 6,109, ,109, Less: Uses of Funds IBRD 8324 ME Works 366, , , , , , Goods Consultants' Services 16, , , , , , Training & WS & ST Operating Costs 1, , , , , , Total 385, , , , , , Closing Cash Balance (DA*) 117, , , , , , Note: * Amount of 1,730.10, withdrawn as per pro-forma invoice, accounts will be reconciled. Prepared By: Vesna Jestrovic TSU Senior Finance Officer Technical Services Unit - Ministry of Finance Tel: Fax: Mob: : vesna_tsu@yahoo.com 2: vesna.jestrovic.tsu@t-com.me Page 1

23 Montenegro Montenegro Energy Eficiency Project Loan No.: IBRD ME & IBRD 8324 ME Uses of Funds By Project Activities For the Quarter (Q2) Period ending [in Euro] Actual Planned Variance PAD Project Activities Current Year-To Cumulative Current Year-To Cumulative Current Year-To Cumulative Life of Quarter Date To-Date Quarter Date To-Date Quarter Date To-Date Project (a) 1. Ministry of Education and Science (Works & Goods) - - 2,821, ,821, Ministry of Health (Works & Goods) - - 2,398, ,398, Project Management/Technical Assistance , , Ministry of Health (Works & Goods) 366, , , , , , Project Management 8, , , , , , Technical Assistance 9, , , , , , Total Project Expenditure 385, , ,529, , , ,529, Page 2

24 Montenegro Montenegro Energy Eficiency Project Loan No.: IBRD ME & IBRD 8324 ME Bank Reconciliation as of JUNE 30, 2015 [in EUR] Opening balance at the beginning of the quarter 859, Plus: Advances during the quarter (357,210.27) Interest earned and retained on account - Less: Refund to IBRD from DA during the quarter - Amount of eligible expenditures paid during the quarter 385, , , Closing balance as at the end of the quarter 117, Balance as of as per Special Account Bank Statement 117, Discrepancies (list and explain below) * Page 3

25 Montenegro Energy Efficiency Project - MEEP Project ID: P Loan Agreement No 7637-ME Annex 2: Supporting Documentation Special Purpose SOEs Used as the Basis for the Submission of Withdrawal Applications

26

27

28

29

30

31

32

33

34

35

36

37

38

39

40

41

42

43

44

45

46