Public Disclosure Authorized. Public Disclosure Authorized. Public Disclosure Authorized. Public Disclosure Authorized I E RECEIVED IBDO

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1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized E RECEVED BDO

2 Government of Sierra Leone General nformation 1 CONTENTS PAGE Background nformation on the Project 2-3 Responsibility of the mplementing Unit 4 ndependent Auditors' Report 5-8 Consolidated Statement of Resources and Expenditure 9 Statement of Resources and Expenditure - Special Account 10 Statement of Resources and Expenditure - Counterpart Funding 11 Statement of Financial -Position 12 Statement of Cashflows 13 4 Notes to the Report of Auditors on the Special Account Statement (Account Number ) 9 18 Special Account Statement - Account

3 3Energy Government ofsierra Leone Access Project GENERAL NFORMATON OFFCE 3 Freetown PERMANENT SECRETARYMrZanbethBu-Kma 2nd Floor, Rentaw House 12 PuLtney Street NTERM GENERAL PROJECT COORDNATOR Mr Albert Patewa BANKERS Sierra Leone Commercial Bank (SL) Limited 29/31 Siaka Stevens Street Freetown Grant No. TF Donor Sierra Leone nfrastructure Development Fund (SLDF) DfD Regent House 12 Wilberforce Street Freetown GatN.:01 34

4 3 2 BACKGROUND NFORMATON ON THE PROJECT Government ofsierra Leone Ministry ofenergy Sierra Leone is one of the world's poorest countries. Despite a decade of peace since the end of the civil war, living conditions in Sierra Leone continue to be a challenge. During the period of the civil unrest ( ), Sierra Leone's physical and human capital was severely damaged. Physical infrastructure, particularly electricity, water, and sanitation, suffered widespread destruction and lack of maintenance. As of today, Sierra Leone ranks 180 out of 187 countries in the United Nations Human Development index and has an estimated GDP per capital of US$325, the fourth lowest in Sub-Saharan Africa. The latest poverty headcount estimates (2003) suggest that 67 percent of the population lives below the poverty line. The country has a territory encompassing approximately 72,000km, slightly smaller than the US state of South Caroline. This is home to a population of approximately 6 million, a large segment of which is concentrated in the Freetown areas, with one of the region's largest and poorest urban settlements. Poverty is even more severe in peri-urban areas outside the capital city and in rural areas. Annual population growth has averaged 3.4 percent during the last decade. The high unemployment rate also poses a major challenge, compounded by the very young population's age (43 percent between the ages of 0-14). Post-conflict recovery has been sustained, characterized by economic growth, infrastructure development, improvements in governance and public sector capacity building, and improved delivery of basic services. With a Country Policy and nstitutional Assessment (CPA) score of 3.3 in 2010, the country has moved beyond the threshold to be classified as fragile state. Also, it was ranked among the top ten global reformers in the 2012 Doing Business report. Sierra Leone has conducted two successful elections since the end of the conflict. The third post-war elections for National, Parliamentary and Local levels were held in 2012, and a smooth transition should put the Country on a more secure path to peace and prosperity. High Level Objectives to which the Project Contributes The proposed project is consistent with the second Poverty Reduction Strategy Paper for Sierra Leone (PRSP) an agenda for change covering the period 2008 to Expanding and improving electricity supply is one of the strategic priorities of the Government's National Development Program outlined in the PRSP and will continue to be a critical priority under the new Poverty Reduction Strategy-Agenda for Prosperity - for the period that is currently under preparation. The proposed project is also consistent with Sierra Leone's Country Assistance Strategy for Sierra Leone. A Joint Country Assistance Strategy (JCAS) for Sierra Leone covering the period was adopted by the World Bank, FC and the African Development Bank to support the PRSP with its two pillars, Human Development, and nclusive Growth (focusing on energy). A recent Country Assistance Strategy Progress Report has reiterated the focus on energy as a means to support growth in the extractive sector. Also, the Progress Report has added a third pillar on Managing the Extractive Boom and put emphasis on building capacity for improved governance and service delivery within the government and civil society.

5 1 3 BACKGROUND NFORMATON ON THE PROJECT (Contd) Government of Sierra Leone Activities under the project are well aligned with previous Bank's operations and support by other development partners. Both the proposed project and the upcoming DA operation build on and expand support provided through the power and water project that closed on 31st March nvestments under the power component of this project initiated the rehabilitation of the transmission and distribution network in the Freetown Capital Western Area, and financed initial installment of pre-paid meters. Priority investments in distribution network upgrade under the proposed project have been identified based on an Electricity Master Plan Study completed with support from the Japanese nternational Cooperation Agency (JCA) in 2009 (JCA Master Plan) and consultation with National Power Authority (NPA). n addition, the project complement similar investments undertaken or planned by National Power Authority with funding from JCA and slamic Development Bank (sdb). Finally, the proposed rural electrocution component complement the activities envisaged as part of UNDP's Multi- stakeholds Group on Energy Access in Rural and Peri-Urban Areas. Project Development Objectives The Project Development Objectives are to: (i) reduce losses in electricity supply in Freetown Capital Western Area; (ii) improve commercial performance of the National Power Authority; and (iii) increase 3 access to electricity in selected rural areas. Project Beneficiaries Project beneficiaries will be: (i) the electricity of NPA, who will benefit from the project through improved and more reliable electricity service; and (ii) the residents of the rural villages where photovoltaic systems will be installed on public buildings, who will benefit from living standards due to improved health care and education services. Overall, the project will contribute to enhance management, operation and financial viability of the electricity sector, thus laying solid foundations for expanding electricity services to Sierra Leone's people and firms. Also, the piloting of photovoltaic systems in selected villages will from the basis for scaling up access to modern and sustainable energy services in rural areas. Project Financing The project will be entirely financed under the Sierra Leone nfrastructure Development Fund (SLDF). The SLDF is administered by the World Bank based on an Administration Agreement (AA) entered into with DFD, which spells out terms and conditions of the Trust Fund, including activities and categories of expenditures eligible for financing. SLDF objectives, governance structures and relevant arrangements are included in Annex 3. Lending nstrument The Lending instrument for the proposed project is a Specific nvestment Loan. The Ministry of Finance and Economic Development (MoFED) will receive a grant in the amount of US$16 million established under the recipient-executed component of the SLDF.

6 RESPONSBLTY OF THE MPLEMENTNG UNT - ENERGY ACCESS PROJECT (EAP) Government ofsierra Leone Ministry ofenergy The Sierra Leone nfrastructure Development Fund Grant Agreement dated 20 June 2013, requires the Project Management Unit () of the in conjunction with the Bumbuna Hydro Project is to prepare financial statements comprising Statement of Comprehensive ncome, Statement of Financial Position and Statement of Cashflows for the year ended, which give a true and fair view of the state of affairs of the project for the year. The responsibility of the Project Management Unit of the also includes implementing and maintaining internal controls relevant to the preparation and fair presentation of the financial statements that must be free from material misstatements, whether due to fraud or error. n preparing the financial statements the Unit is required to: 3 Select suitable accounting policies and then apply them consistently; State whether applicable accounting standards have been followed, subject to any material 5 departures disclosed and explained in the financial statements. The Project Management Unit is also responsible for keeping proper accounting records, which disclose with accuracy at any time the financial position of the project and to ensure that the financial statements comply with nternational Financial Reporting Standards and/or nternational Accounting Standards. The Unit is also responsible for safeguarding the assets of the Project and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. The annexed 31st December financial statements disclose the financial activities of the Project for the year ended

7 BDO REPORT OF THE NDEPENDENT AUDTORS TO THE MEMBERS Government of Sierra Leone Opinion We have audited the financial statements of the, with comprise the consolidated statement of resources and expenditure, statement of resources and expenditure - SLDF funding, statement of resources and expenditure - counterpart funding, statement of income and expenditure, statement of financial position as at 31 st December 2016, the statement of comprehensive income, statement of changes in equity and statement of cashflows for the year then ended, and notes to the financial statements, including a summary of significant accounting policies. n our opinion, the accompanying financial statements present fairly, in all material respects, the state of affairs of the Project as at 31 December 2016 and its financial performance and its cashflows for the year then ended in accordance with the accounting policies adopted by the Project as stated in note 1 of the financial statements and the requirements of the Project Agreement Document. 3 Basis for Opinion We conducted our audit in accordance with nternational Standards on Auditing (SAs). Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the section of our report. We are independent of the Company in accordance with the nternational Ethics Standards Board for Accountants' Code of Ethics for Professional Accountants (ESBA Code), and we have fulfilled our other ethical responsibilities in accordance with the ESBA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Key Audit Matters Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. We have determined that there are no such matters to report. Other nformation Management is responsible for the other information. The other information comprises the * 5 BDO, a Sierra Leone partnership, is a member of BDO nternational Limited, a UK company limited by guarantee, and forms part of the international BDO network of ndependent member firms. BDO is the brand name for the BDO network and for each of the BDO Member Firms

8 Government of Sierra Leone REPORT OF THE NDEPENDENT AUDTORS TO THE MEMBERS (Contd) Responsibilities of Management and Those Charged with Governance for the Financial Statements The project's management is responsible for the preparation and presentation of these financial statements on the basis of accounting policies for the purpose of determining the eligible expenditure and results for the year for use by the World Bank and the Government of Sierra Leone. This includes determining whether the accounting policies described in note 1 form an acceptable basis for preparing and maintaining internal controls relevant to the preparation and presentation of financial statements that are free from material misstatement, whether due to fraud or error, selecting and applying appropriate accounting policies and making accounting estimates that are reasonable in the circumstances. Auditors' Responsibilities for the Audit of the Our Objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' 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 SAs 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 the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with SAs, we exercise professional judgement and maintain professional skepticism throughout the audit. We also: dentify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and 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 for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal controls 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 Project's internal control. * 6 BDO, a Sierra Leone partnership, is a member of BDO nternational Limited, a UK company limited by guarantee, and forms part of the international DO network of independent member firms. BDO is the brand name for the BDO network and for each of the BDO Member Firms

9 1st Floor, RenLaw House 12 Pultney Street To: The Financial Management Specialist World Bank Group Howe Street Freetown Sierra Leone 30th June, 2017 Dear Sir, RE: AUDTED FNANCAL STATEMENTS FOR THE ENERGY ACCESS PROJECT (MoE) Enclosed is a copy of the Audited for the year ended 3 1 st December, 2016 for the. thank you for your usual cooperation../u Mrim er atewa nterim General Project Coordinator/FMVS

10 BDO Government ofsierra Leone REPORT OF THE NDEPENDENT AUDTORS TO THE MEMBERS (Contd) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Project's ability to continue as a going concern. f we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the Project to cease to continue as a going concern. Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Project to express an opinion on the financial statements. We are responsible for the direction, supervision and performance of the Project audit. We remain solely responsible for our audit opinion. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditors' report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. 1 7 BDO, a Sierra Leone partnership, is a member of BDO nternational Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. BDO is the brand name for the BDO network and for each of the BDO Member Firms

11 BDO Government ofsierra Leone REPORT OF THE NDEPENDENT AUDTORS TO THE MEMBERS (Contd) Report on Other Legal and Regulatory Requirements There are no other legal and regulatory requirements. The engagement partner on the audit resulting in this independent auditors' report is Brinsley Johnson. Freetown, Sierra Leone 9 V BDO, a Sierra Leone partnership, is a member of BDO nternational Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. BDO is the brand name for the BDO network and for each of the BDO Member Firms

12 CONSOLDATED STATEMENT OF RESOURCES AND EXPENDTURE Government ofsierra Leone Ministry ofenergy Le'000 Resources $ Le'000 $ Balance brought forward 3,465, ,065 7,495,102 1,703,522 Prior year adjustment - - 4,027 SLDF funding 18,058,102 3,125,696 6,565,444 1,366,923 PAP's funding - - 2,500, ,159 GoSL funding 32,732 4, Special commitments 5,155, ,821 7,873,135 1,574,627 26,711,956 4,583,258 24,438,260 5,140,231 Other ncome 2,726,018 30,288 1,021,833 41,769 29,437,974 4,613,546 25,460,093 5,182,000 Disbursements Programme expenses 10,778,980 1,755,905 5,713,986 1,201,176 Local consulting services 1,202, ,472 1,088, ,640 nternational consulting services 555,876 91, , ,817 External consulting services 33,065 5,511 1,314, ,933 Operating costs 970, ,835 1,750, ,579 PAP's funding compensation 1,753, ,216 2,500, ,159 Special commitments 5,155, ,821 7,873,135 1,574,627 Bank charges 204,448 32, , ,004 20,653,284 3,358,575 21,994,113 4,489,935 8,784,690 1,254,971 3,465, ,065 Represented by Designated Account SLDF 8,729,707 1,247,101 1,684, ,345 Leone Account 54,983 7,870 1,781, ,720 8,784,690 1,254,971 3,465, ,065 The financial statements were approved on 2017 Permanent Secretary (MoE) ktha, nterim General Project Coordinator (EAP/MoE) 1 9

13 Government ofsierra Leone STATEMENT OF RESOURCES AND EXPENDTURE - SPECAL ACCOUNT Notes Le'000 $ Le'000 $ Resources: Balance brought forward 1,684, ,345 7,095,611 1,612,729 Prior year adjustment - - 4,027 - SLDF funding 2 18,058,102 3,125,696 4,064, ,764 3 SLDF funding (PAP's fund transferred to counterpart account) ,500, ,159 SLDF funding (special commitments) 5,155, ,821 7,873,135 1,574,627 24,898,003 4,216,862 21,538,217 4,554,279 Other ncome: nterest on SLDF 8,178 1,330 5,809 1,244 Other Exchange gain 2,515, ,665-2,523,313 1, ,540 1,260 Disbursements: Programme expenses 10,778,980 1,755,905 5,713,986 1,201,176 Local consulting services 1,200, ,195 1,057, ,416 nternational consulting services 555,876 91, , ,817 External consulting services 33,065 5,511 1,314, ,933 Operating cost 771, , , ,689 PAPs Compensation - - 2,500, ,159 Special commitments 5,155, ,821 7,873,135 1,574,627 Bank charges 196,309 30, , ,978 3 Result 18,691,609 2,971,091 20,850,998 4,265,795 for the period: 8,729,707 1,247,101 1,684, ,744 Represented by: SLCB USD Account 8,729,707 1,247,101 1,684, ,345 8,729,707 1,247,101 1,684, ,345 The financial statements were approved on 2017 Permanent Secretary (MoE) nterim General Project Coordinator (EAP/MoE) 10

14 Government ofsierra Leone NCOME AND EXPENDTURE STATEMENT - COUNTERPART FUNDNG Notes Le'000 $ Le'000 $ Resources Balance brought forward 1,781, , ,491 90,793 PAP's funding transferred ,500, ,159 GOSL funding transferred 32,732 4,676 1,813, ,396 2,900, ,952 Other ncome interest transferred 202,705 28,958 11,615 2,277 Sate of bids/cash deposit ,478 2,447 Refunds Exchange loss (4,855) 202,705 28,958 24,293 (92) Disbursements: Local staff cost 1, ,744 6,224 Operating cost 198,663 38,426 1,106, ,890 Compensation (PAP's) 1,753, ,216 Bank charges 8,139 1,565 5,231 1,026 1,961, ,484 1,143, ,140 Result for the period: 54,983 7,870 1,781, ,720 Represented by: SLCB Leone Account 54,983 7,870 1,781, ,720 54,983 7,870 1,781, ,720 The financial statements were approved on 2017 Permanent Secretary (MoE) *\"~"-f\'~ ~nterim General Project Coordinator (EAP/MoE) * 11

15 Government of Sierra Leone Ministry of Enery STATEMENT OF FNANCAL POSTON Notes Le'000 $ Le'000 $ Assets: 1 Cash and cash equivalents 4 8,784,690 1,254,971 3,465, ,065 8,784,690 1,254,971 3,465, ,065 Represented by Accumulated Fund 5 8,784,690 1,254,971 3,465, ,065 8,784,690 1,254,971 3,465, ,065 The financial statements were approved on 2017 Permanent Secretary (MoE) nterim General Project Coordinator (EAP/MoE) * 12

16 STATEMENT OF CASHFLOWS Government of Sierra Leone Energy Acesss Project Ministry ofenergy OPERATNG ACTVTES Notes Le'000 $ Le'000 $ Cash received from donors and GoSL 6 25,971,994 3,921,481 17,960,964 3,437,877 Cash paid to suppliers and employees 7 (20,653,284) (3,358,575) (21,994,113) (4,489,935) Cashflows from operating activities 5,318, ,906 (4,033,149) (1,052,058) NVESTNG ACTVTES Cashflows from investing activities - - FNANCNG ACTVTES Cashftows from DA and GoSL contributions - Net increase/(decrease) in cash and cash equivalents 5,318, ,906 (4,033,149) (1,052,058) Cash and cash equivalents at the start of the year 3,465, ,065 7,499,129 1,744,123 Cash and cash equivalents at the end of the year 8,784,690 1,254,971 3,465, ,065

17 NOTES TO THE FNANCAL STATEMENTS Government of Sierra Leone 1 SUMMARY OF SGNFCANT ACCOUNTNG POLCES The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied unless otherwise stated. 1.1 Basis of preparation The project accounts are prepared on the basis of nternational Financial Reporting Standards (FRS) and nternational Public Sector Accounting Standards (PSAS). The statement of resources and expenditure have been prepared on a cash basis of accounting, which means that income is recognised when received, and expenses are recognised when paid for. The project financial statements are presented in United States Dollars (USD) and have been prepared under the historical cost convention. The basis of income recognition is described in note 1.4 below. 1.2 Foreign currency transactions Assets and liabilities denominated in foreign currencies (other than US Dollars) are translated at the rates ruling at the balance sheet date. The local currency expenses pertaining to the SLDF and the GoSL counterpart funds are translated into USD at the rate of exchange prevailing on the date at which the transactions were recorded. All gains and losses arising are taken to the statement of income and expenditure. All government expenditure are incurred in local currency. For reporting purposes these expenses are converted into USD using an average exchange rate ruling for the year. The closing balances are converted into USD using an exchange rate ruling at the end of the year. 1.3 Fixed assets Fixed assets are expensed on acquisition but a comprehensive fixed asset register is maintained. 1.4 ncome Funding from the World Bank is held in a deferred income account when received and are only recognised in the Project's income statement when utilised. *14

18 Governent ofsierra Leone Energy Accsss Project Ministry ofenergy NOTES TO THE FNANCAL STATEMENTS (Contd) 2 SLDF DSBURSEMENTS Le'000 US$ Le'000 US$ Withdrawal Application EAP ,997 64,222 Withdrawal Application EAP , ,194 Withdrawal Application EAP ,755 99,279 Withdrawal Application EAP ,751 81,056 Withdrawal Application EAP013B ,855 28,446 Withdrawal Application EAP/ ,291 24,628 Withdrawal Application EAP/ ,909 66,285 Withdrawal Application WAPO ,974 30,429 Withdrawal Application EAP/ ,675 54,712 Withdrawal Application EAP/ ,970 59,194 Withdrawal Application EAP/ ,560 54,912 Withdrawal Application EAP/024-3,367, ,566 Withdrawal Application EAP/025 1,014, , Withdrawal Application EAP/026 1,131, , Withdrawal Application EAP/029 1,300, , Withdrawal Application EAP/030 1,954, ,416 Withdrawal Application EAP/031 1,583, ,985 Withdrawal Application EAP/032 1,195, , Withdrawal Application EAP/ ,360 28, Withdrawal Application EAP/034 2,040, ,383 Withdrawal Application EAP/ ,299 34,383 Withdrawal Application EAP/037 1,518, , Withdrawal Application EAP/039 5,534, ,689 - Withdrawal Application EAP/ ,963 29, Withdrawal Application EAP/ ,395 33, ,058,102 3,125,696 6,565,444 1,366,923 3 PAP'S FUNDNG TRANSFERRED Le'000 US$ Le'000 US$ SLDF Transfer to counterpart fund - - 2,500, , ,500, , CASH AND CASH EQUVALENTS Designated SLDF 8,729,707 1,247,101 1,684, ,345 Leone Account 54,983 7,870 1,781, ,720 8,784,690 1,254,971 3,465, , <

19 NOTES TO THE FNANCAL STATEMENTS (Contd) 5 DEFERRED NCOME Government ofsierra Leone Deferred income represents the unspent balance of funding received as at the end of the year. analysed as follows: This is Le'000 US$ Le'000 US$ Resources Balance brought forward 3,465, ,065 7,499,129 1,703,522 SLDF Funding 18,058,102 3,125,696 6,565,444 1,366,923 PAP's Funding - - 2,500, ,159 GoSL Funding 32,732 4, SLDF special commitments 5,155, ,821 7,873,135 1,574,627 Other income 2,726,018 30,288 1,021,833 41,769 Total 29,437,974 4,613,546 25,460,093 5,182,000 Expenditure Total expenses incurred during the year (20,653,284) (3,358,576) (21,994,113) (4,489,935) (20,653,284) (3,358,576) (21,994,113) (4,489,935) Released to income statement 8,784,690 1,254,970 3,465, ,065 Represented by: Cash and cash equivalents 8,784,690 1,254,970 3,465, , ,784,690 1,254,970 3,465, ,065 1

20 1 NOTES TO THE FNANCAL STATEMENTS (Contd) 6 CASH RECEPTS FROM DONORS AND COUNTERPART Government of Sierra Leone Le'000 US$ Le'000 US$ Grants received 23,245,976 3,891,193 16,939,131 3,396,108 nterest received 210,883 30,288 17,690 3,521 Other income ,478 2,502 Exchange gain 2,515, ,665 35,746 Total 25,971,994 3,921,481 17,960,964 3,437,877 7 CASH PAD TO SUPPLERS AND EMPLOYEES Expenditure 20,653,284 3,358,575 21,994,113 4,489,935 20,653,284 3,358,575 21,994,113 4,489, CONTNGENT LABLTES There were no contingent liabilities as at 31 December 2016 (2015 nil). * 17

21 BDO Government ofsierra Leone REPORT OF THE AUDTORS ON THE SPECAL ACCOUNT STATEMENT, DESGNATED ACCOUNT NUMBER Opinion We have audited the accompanying Special Account Statement Dollar Account No established under the provisions of SLDF Grant No. TF SL for the year ended 31 December 2016 n our opinion, the receipts were properly accounted for and the withdrawals were made for the purposes of the project in accordance with the project agreement. The accompanying Special Account Statement give fair view of the beginning and closing balances and the accounting activity for the year ended 31 December 2016 on the basis of cash deposits and withdrawals. We conducted our audit in accordance with nternational Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free of material misstatement and accordingly include such test of the accounting records, verification of assets and liabilities, review of systems of internal controls and other auditing procedures that we considered necessary in the circumstances. The accompanying special account statement was prepared on the basis of cash deposits and withdrawals for the purpose of complying with the project agreement. 1 We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Compliance with the terms of the SLDF and GoSL Counterpart Funding agreements n our opinion, payments made from the World Bank and GoSL Counterpart contributions were in compliance with the terms of the project agreement. Freetown Chartered Accountants 18 BDO, a Sierra Leone partnership, is a member of BDO nternational Limited, a UK company limited by guarantee, and forms part of the international BDO network of independent member firms. BDO is the brand name for the BDO network and for each of the BDO Member Firms

22 Government ofsierra Leone Enery Access Project SPECAL ACCOUNT STATEMENT - DESGNATED ACCOUNT Account No: Depository Bank: Address: Sierra Leone Commercial Bank (SL) Limited Siaka Stevens Street Freetown, Sierra Leone Grant Agreement No: TF Le'000 US$ Le000 US$ Add: Opening balance 1,684, ,345 7,099,638 1,653,330 SLDF 18,058,102 3,125,696 6,565,444 1,366,923 SLDF special commitments 5,155, ,821 7,873,135 - nterest received 8,178 1,330 5,809 1,244 Other income Exchange difference 2,515, ,665 Currency: United States Dollars (US$) 27,421,316 4,218,192 22,535,757 3,021,513 Deduct: Withdrawals (18,691,609) (2,971,091) (20,850,998) (2,691,168) Closing balance 8,729,707 1,247,101 1,684, ,345 Represented by: SLDF designated Account 8,729,707 1,247,101 1,684, ,345 19