FINANCIAL SCHEDULES Moldova Energy Sector Reform and

Efficiency Improvements Project

financed under Sida Contribution TF no. 099139

as of and for the twelve months period ended 31 December 2013

prepared in accordance with cash receipt and disbursements basis of accounting

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

Pub

lic D

iscl

osur

e A

utho

rized

CONTENTS:

Independent Auditors' Report

Summary of Sources and Users Funds by Category as of31 December 2013

Users Funds by Project Activities as of31 December 2013

Designated Account Statement

Statement of Expenditure ("SoE") Withdrawal schedule for the year ended 31 December 2013

Explanatory Notes to the Financial Schedules of Moldova Energy Sector Reform and Efficiency Improvements Project as of and for the twelve months period ended 31 December 2013

2

3

4

6

KPMG Moldova SRL Str. Stefan eel Mare 202 Et. 9, MD-2004 Chisinau Moldova

Independent Auditors' Report

Tel: +373 (221 580 580 Fax: +373 (221 540 499

www.kpmq.md

To: The Management of Moldova Energy Sector Reform and Efficiency Improvements Project

We have audited the accompanying financial schedules of Moldova Energy Sector Reform and Efficiency Improvements Project, financed under Sida Contribution TF no. 099139 which comprise the Summary of Sources and Users Funds by Category, Users Funds by Project Activities, Designated Account Statement and SOE Withdrawal schedule as at 31 December 2013 and notes, comprising a summary of the accounting policies ("the financial schedules") prepared in accordance with cash receipt and disbursements basis of accounting as described in the Explanatory Notes to the Financial Schedules as of and for the twelve months period ended 31 December 2013.

Management's Responsibility for the Financial Schedules

The management of Moldova Energy Sector Refmm and Efficiency Improvements Project is responsible for the preparation and fair presentation of these financial schedules in accordance with the cash disbursements basis of accounting as described in the Explanatory Notes to the Financial Schedules as of and for the twelve months period ended 31 December 2013 and for such internal control as management determines is necessary to enable the preparation of the financial schedules that are free from material misstatement, whether due to fraud or error.

Auditors ' Responsibility

Our responsibility is to express an opinion on the financial schedules based on our audit. We conducted our audit in accordance with International Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial schedules are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial schedules. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the financial schedules, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the entity's preparation and presentation of the financial schedules 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 entity's internal control. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial schedules. 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 schedules.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

<!:)2014 KPMG Moldova SAL, a Moldovan l1m1ted liabrhty company and a member f1rm of the KPMG network. of Independent member f ilmS attllratod With KPMG InternatiOnal Cooperatrve r KPMG lnternanonal'l, a SWISS ent1ty. All nghts reserved.

Page 1 of2

ION0:1002600046371

Opinion

In our opinion the accompanying Financial Schedules as of and for the twelve months period ended 31 December 2013, have been prepared, in all material respects, in accordance with the cash receipts and disbursements basis of accounting as described in the Explanatory Notes to the Financial Schedules as of and for the twelve month period ended 31 December 2013.

Basis of Accounting and Restriction on Use and Distribution

Without modifying our opinion, we draw attention to Note 1 to the Financial Schedules as of and for the twelve months period ended 31 December 2013 which describes the basis of accounting. These Financial Schedules are prepared solely for the purpose of complying with the terms of the Grant Agreement No. TF 099139 between the Ministry of Finance ("the Ministry") on one side and International Bank for Reconstruction and Development and the International Development Association (together "World Bank") acting as administrator of grant funds provided by Sweden and represented by the Swedish International Development Cooperation Agency ("Sida") under the Administration Agreement for the Swedish Trust Fund for the project, on the other side, signed on 29 June 2011 . As a result, the Financial Schedules may not be suitable for any other purpose. Our report is intended solely for the use of Management of Moldova Energy Sector Reform and Efficiency Improvements Project, World Bank, Sida and the M inistry. To the fullest extent permitted by law, we do not accept or assume any responsibility to anyone other than the Management of Moldova Energy Sector Reform and Efficiency Improvements Project, World Bank, Sida and the Ministry, for our work, for this report, or for the opinion we have formed.

KPMG Moldova SRL

Chisinau, Moldova

25 March 20 14

Ref.: 14014

Page 2 of2

ESREI Project for Moldova ATTACHMENT 4.1

Summary of Sources and Users Funds by Category as of December 31, 2013 EURO

Opening cash balance(s): TF099139 Local currency Account Amount in Designated Account

Sourses of funds, inclusiv: SOE Procedures

Direct Payments

SA Advance payment

Closing cash balance(s) : TF099139 Local currency Account Amount in Designated Account

Uses of Funds, inclusiv : TF099139

Goods (supply and instalation) under Part 1 of the Project Consultants services Operating costs

Date:

Ludmila Burlui Project Director

25-Mar-14

Actual Period-To

Date

26,064

26,064 425,234

51,400

373,835

24,870

24,870

426,428 -

419,325 7,104

Cumulative To-date

26,064 1,471,111

95,810

1,275,302

100,000

24,870

24,870

1,446,241 825,264 606,069

14,909

Page 1/6

ESREI Project for Moldova

Users Funds by Project Activities as of December 31, 2013 EURO

Rehabilitation of the heating engineering system of the Center for Mother and Child

Technical study to identify urgent priority rehabilitation and investments in Chisinau district heating system

Implementation Support for Corporate Restructuring of Termocom, CHP 1 and CHP 2

Project Management and Administration

Total

Date:

Ludmila Burlui Project Director

25-Mar-14

ATTACHMENT 4.2

Actual Period-To Cumulative

Date To-date

- 825,264

161,240 281,522

212,595 212,595

52,594 126,861

426,428 1,446,241

Page 2/6

For year ending Account No.

Depository Bank

Address

ESREI Project for Moldova Grant no. TF099139

Designated Account Statement EURO

31 December 2013 227170197816

Trezoreria Teritoriala Chisinau- bugetul de stat (Banca de Economii branch no.1)

Republic of Moldova

Local currency Account Amount in Designated Accow Petty cash

TOTAL

Add: World Bank replenishments during the year

DA-18 DA- 20 DA- 21 DA - 23

TOTAL

Deduct: Account payments for goods and services

Date: 25-Mar-14

Ludmila Burlui Project Director

DA -20 DA -21 DA- 23 DA-24

TOTAL

Local currency Account Amount in Designated Accow Petty cash

TOTAL

26,064

26,064

17,358 8,655

14,000 11,387

51,400

8,655 16,784 11 ,387

ATTACHMENT 4.3

15,768 Not reported yet as at 31 Dec 2013

52,594

24,870

24,870

Page 3/6

W/0 Number

W/0 Number

DA- 18 DA-20 DA- 21 DA -23

W/0 Number

DA -18 DA- 20 OA- 21 DA- 23

Date:

Ludmila Burlui Project Director

TN

TN

TN0018 TN0020 TN0021 TN0023

TN

TN0018 TN0020 TN0021 TN0023

25-Mar-14

ESREI Project for Moldova ATTACHMENT 4.4 Grant no. TF099139

SOE Withdrawal schedule for the year ended 31 December 2013

EURO

Disbursement Cate9_ory 1

Goods Consultants

Operating costs services

0

Disbursement Catefl.OfY 2

Goods Consultants

Operating costs services

14,045 7,214

14,679 10,104

46,041

Disbursement Category 3

Goods Consultants

Operating costs services

3,313 1,442 2,105 1,283

8,143

54,183

Page 4 / 6

WID Number

DA- 24

WID Number

DA- 24

WID Number

DA- 24

Date:

Ludmila Burlui Project Director

TN 24

TN 24

TN 24

ESREI Project for Moldova ATTACHMENT 4.5 Grant no. TF099139

SOE Withdrawal schedule for the year ended 31 December 2013

EURO (disbursed from DA in 2013 to be reimbursed in 2014)

Disbursement Category 1

Goods Consultants Operating

services costs

0

Disbursement Category 2

Goods Consultants Operating

services costs 13,494

13,494

Disbursement Category 3

Goods Consultants Operating

services costs 2,274

2,274

15,768

25-Mar-14

Page 516

Explanatory Notes to the Financial Schedules of Moldova Energy Sector Reform and Efficiency Improvements Project

as of and for the twelve months period ended 31 December 2013

Note 1 - Basis o(Accounting

Basis of accounting used in the preparation of the enclosed financi al schedules is cash receipt and disbursement basis. On this basis sources of funds are recognized when received rather than when earned and funds used are recognized when paid rather than when incurred.

page 6 I 6