AUDITOR'S REPORT

~c..:retary

E..:onomi..: Relations Div1sion {ERO) Mmistry of Finance

hcr-e-B.mgla ~agar, Dhaka-120.,.

Audit Completion Date: 25-1 1-2013.

l. We have audited the Finan..:ial Statcment of the "R ural Electrification and Renewable

Energy Development Project-lf' financed by ID under credit no. 5158 BD as of 30th Junc,

.':!O 13 ami for the year then ended. The preparation ,f the Financia) Statement is the

responsibility of the Management. Our responsibi lity is to cxpress an opinion on the Financia!

Statement based on our audit.

II. We ..:••nducted our audit fo llowing lntematicmal Stan ards on Auditing. Th se standards

rcquirc thal we plan and pcrforrn the audit to obtain reas nable assurance about whether the

f inancial Statement is free of material mi ·statement . An audit includes cxamining, on a test

b .isi~. e" 1d..:nce supp rting the amounts and disclo ures 11 the Financia! Statement. An audtt

nlso includcs asses ing the accounting principies used and significan! estimares made by

rnanagemi.:nt, as well as evaluating of the Finan..: ial Statement presentation. ~ e believe that

our audi t provides a reasonable basis of our opmion.

II. In iur opimon except non compliance of financ ia! mies and regulations stated m

~ubsequcnt observation along with the managemcnt letter following the Financia! Statem«nt

g1Yes a fair vie\\ in ali material aspects of the financia] position of "Rural Electrification and

Renewab/e Energy Development Project-IF' as at 3 J°· June, 2 13 and result of its

operations and it~ ca ·h flows for the year then ended in accordance with the cash basis of

accountmg followed by the Govemment of Bangladesh.

\' . Opinions Status: l 1nquahfi.:d.

O c,td A ..

,,, ., • ~ .... ( • { ::' 1 <>,

(.'.\-l st. Maksuda Begu m) Deputy Director

For Director General Foreign A1ded Projects Audit Directorate

105140

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

AL ra Electrilicat1on and Renewable Enerpy Development Project 11 tDA Credit # 5158 BD

Project Financia! Statement 30th June, 2013

Gov'mment of Bangladesh l - from Dt'velopmen Partner

Grar t from D ·velopment Partner

Ott1 • 1 esources

Cash Open n Balance

Total nesources

Expl'nditure and Ci•sh í _ S.Jo \oans (CAT-1

2 G m.. Consultants s service, Train1n;¡ and ncr" m ntal operating costs under Part A ol ltl pro ject ":AT-2) ,j _ Goods, Consultan s's service.

Notes

'

1_, 2.1

2.2

3

--

ra n1ng and lncrem1 ntal operating costs and . ub\j' 1111s u11der í art B of the project

'fAT 3)

~ ,.-,k -11a1 ; es al E"penditure

C,osina Balance

Ü¡ 1 \tll ¡ Accou11t (REPJ - A to E

Op ·ratmQ •\ccount ¡::i.EP) - HE

Q n rallng Account (.:.OB)

To tJI Expenditure ¡;, Cash

e // . /' 1 / ~)

?o~ - <-Á:./v J. J -

,~ ~ '"V . rr·" '

( -./

4. 1

4.2

- '

i

Cumulative 1 Current Period Prior Period

Cumulative ~urrent PeriQ_d

--

1 -

- -- --l

- 1

- +-- 700,000,000 1

- 700 ,000,000

- _?_Q.000,000 • 50 ,000,000 2,402,784 2,402,784

• 752,402,784 752,402,784

---:-~ -656~388 .576 - ~6.388 ,§76

- 1

11,1 58,451 11 ,158,451

-~

5,62 1,073 5 621,073

243, 2~3 243,233

673,411,333 673 411,333

34 254 ,878 3'- 254,878

--~4 ,736 , 573 1 44 736.573

752,402,784 752,402,784

\. M 1za r 1. r Ra hrn a n , '1~ud " • . nce & A ..1r.h

r D!!il "Jl...t iJi. Oe velo .,. - ent 1 '"' l "11 ted irDCl L1

IDA Credlt # 5158 BD ·Rural Electri fl cation nd Renewable Energy Oevelopment Project 11 NOTES TO FINANCIAL STATEMENT

30th Junlf, 2013

GOVERNMENT OF BANGLADESH íhere 1s no provision of GoB's share eligible for project expenditure

Disbur' ment by GOB Less: Rl'fund to GOB To•al

lnception to 30th ¡For the year 2012, 1 . June 2012 1 2013 ~ -- ---r t

lnception to 30th June 2013

2 LOAN ANO GRANT FROM DEVELOPMENT PARTNER

2.1 LOAN FROM DEVELOPMENT PARTNER IDCOL received the firs t payment against an withdrawal application (WA) for depositing the 1nitial advance of BDT 70 & BDT 5 crore respectively in the designated imprest account fT'a ntained w1tn Janata Bank Llmited. After utdizing the advance, the designated account (DA) is be 'ng replenished by subsequent withdrawal applications for replenishment. (in taka)

lnception to 30th For the year 2012· lnception to June 2012 1- 201 3 30th June 2013

·- - -- 700,000,000 1 -- 700,000,000 --· - - --- >- - -- -

-1n1tial Depos1 ·Repleri isr rne nt_ RPA SOE Procedu re)/I C~- __ _ -- ' __ ,__ ·--

700,000,000 Total 700,000,000 1

2.1 GRANT FROM DEVELOPMENT PARTNER lnception to

ln1t1al 1... positReplenisr en.!_ RPA ~OE Procedurel l~C9L Total

lnception to 30th For the year 2012 June .201 ~ _ 2013 __

50,00Q,_000

5 0 00 0 00 0

30th June 2013 50,000,00Q_

50,000,000

3 OTHEH RESOURCES lnterest ;:iccrues semi-annually, 31 December and 30 June of each ye ar, on the outstanding balancL and according to the operating proce:Jure of CONTASA SND Account, balance of the ntcresi is transferred to government treasury after making necessary adjustments for bark

cl'arge :.. if any. (in taka

b:,::::,":ZC # 0102136 0225ñ Sar• 11te1 est rA. C # 0102 · 002248¡ To ta l

lnceptiori to 30th For the ycar 201 2 lnception to 30th June 2013 June ~01 2 2011.__ _

·"" -

397,940 397,940

2.004 ,844

2,402,784

2,004,844

2,402,784

M. Mizanur Rahman .J r 1t He ad Fmance & Accoun•s nlrastructure Oevelopment "l)mpany l.imited llOCOL)

4 CASH (Closing Balance)

The pr o¡ect has one bank accounts of which 1'S SND Account (A/C # 010236002248) maintai..,ed with Janata Bank Ltd. and another is also SND Account (A/C # 0102336002256)

maintarned with Janala Bank

4.1 A1C # 010236002248

Opera\1n'] Account (RPA) Operat1n J Accmint (GOB Total - -

1

4.2 AiC # 1102336002256

Opera1 ''9 Account (HE) Opera•1ng Account (GOB'-Total -

lnception t ) 30th For the year 2012 ~June 20 1~ 201 3

- - 34,254,876

t - 34 254,~78 r

lnception 10 30th For the year 2012 June 2012 2013 -- - ·-- ---- 44 ,736,573

-- - _ 1 44 736 573

lnception to 30th Jurie 2013

34d 54,878

34.254 878

lnception to 30th June 201 3 - - _44,736,572_

44 736 573

M . M izanur Rahma n Untl Head Finance & Account!7-ln frastructure Oevel opment Company Urniled (I OCOL

AUDIT OPINION ON SOE

\\ " ha' auditcd the Stah:ment t f Expenditure (SOE) of the "Rural Electrífication

and Rea \\a ble F.ncrgy Dcvelopment Project-11" fmanced by IDA under credit no-

51588 ]) In the year cndt;d 3(1 11 June. 2013 submitted to the lntemational Development

Asso iati11n (ID A) for reimbursement of expenditure in accordance with the IDA credit no-

51 SSBD.

Thc audit was conducted following Intemational standards on auditing. Accordingly,

it included such tests of the accounting records and supporting documentation, review of

~ ystems f intemal control. So necessary audit procedure ¡, essential under the circumstan s.

\Vithdrawal/ SOE Partic ulars

·¡ · part1 ·ulars ,11 withdrawal on the basis of tatement of Expenditure (SOE) as

~ubmitteJ o auditare attached herewi th (.'\nnexure- A 1-2 1.

O PIN ION

In \l Ur opmion, thc SOE can be rehed upon for credit dishursement by the IDA against

expenditun: incurred for the purpose of th project as spec1fied in the particular of withdra\\al

a plicatw n.;.

Opinion ' tatus: nqualified.

, ! . Pf'aJf. 2. ?-; ll 2 ~

Yl~,~~ \· ( 1 ~ (M~t. 1\faksuda Begum)

Dcputy Director For Director General

Foreign ided Projects Audit Directorate

15

Summary of Withdrawal Applicatt ons (SOE)

FISCAL YEAR: 2012-2013

Project: Rural Electrification and Renewable Energy Oevelopment Project 11(REREDP11) - (A to E) IDA Credit # 5158 BD

LENDERIDONOR: IDA

W/A No Application Category Arnount Received Amount Clairned Difterence

Date Refinance 700,000,000 - 700,000,000

RE 001 30-Aor-13 -700,000,000

- 700,000,000 -Total

Annax-A - 1

Receiving Date Remarks

8-May-13 Advance

~ M Mízanur Rahman Ufill Ht~4 , F inance & Aceoont• 1Rltí!slt11c1ure Development é·ompa11y L1mited (IOCOL)

S!.lmrnary of Withdrawal Applicat ions (SOE)

FISCAL YEAR: 2012-2013

Project: Rural Electrií icalion and Renewable Energy Oevelopment Project 11 (REREDP 11) - (HE)

IDA Credit # 5158 BD

LENDERIDONOR: IDA

WJANo Application Category Amount Received

Date Refinance

RE 001 30-Aor-13 50,000 ,000

Total - 50,000,000

Amount Claimed

-

-

D1tference Receiving Date

5(1 ,000.000 8-May-13

50,000 ,000

rt ª~ M . Mizanur Rahm an ·J1'>1 Head . Finance & '-=nts nt rastructu re Development :omp~ny Limited (IDCOL)

Annex-A-2

Rernarks

Advance

Auditor's Report on Special Accou nt (CO~TASA)

\h: ha\c audited the O~TASA Statement ot thc "Rural Electrification and

Renewable Energy Development Project-ll" l,, r the year ended 30'h June 2012

under provision of IDA credit no-5158BD dated .. . .... .. . •h December 2012 .

11. Our audit was canicd out following lntemational Audi ting Guidelines. Accordingly,

our audit included such review of system of Interna) Control, test of the accounting

records & supporting documentation, verification of accounts balances and other

audi ting procedures that we consid red necessary under the circumstances.

Ill. Thc acc mpanying Special Account Statement \\ as preparcd on the basis of cash

depos1ts & withdr wab for purpose of complyi ng with thc above C'redit Agreement.

(,\nnt.'xure- "B 1-2" )

IV. I\ . In our opinion the reccipts are properly a.,countcd for and withdrawals were

made for the purpose of the project in accordance with the credit agreement and the

Special Account Statement givcs a true and fair view of the beginning & ending

balances and the account activity for the year endcd 30th June, 2013 on the basis of

cash deposits & ~ lthdrawals.

- ' ,J , f\ ..,,. 1 '">1 {¡ ~"l·\ '2

(\11. t. Vlak uda Begum) Deputy Director

For Director General Foreign \ ided Projccts udit Directorate

l!i

Annex

Rural El··ctrification and Renewable Energy Developmen t Project 11 (UEREDP11) . (l IDA Credit # 5158 BD

Special Account Statement

11 the )Car end u: 3U June 20 13 ~ Wlllll N 11 Jfi 02256

. l ·¡•nsiting Bank Janata Ban k, Local Office 1 111 '<Cl IDA-51 50 BD

irre11c) BDT l'art-A: ·'\ccount Activity

\ •1)(.:n ing falancc as 011 OJ July 20 2 .\r!d :

1, 1 olal t\mounl Deposiled by the IDA 1i Tot;1' i11 tercst carning if reported into account i11 1 olal amou nt refunded to covt: r incligiblc expenditure Dtd uct: '. « 10 1 amount withcl ·awn

l I •\ing Balance as nn 30 June 2013

'' 1rt -B: Account Rcconcilia tion

1. Arn ou nt adv,rnced by IDA - . L-.;.;s: Tot.i! ümoun t rccoven::tl by IDA . . Equals ou tc,t; nding amount aJvanced to the imprcst

il -~ 1unt at fü.;aJ ) edr endcd 30 June 2013

+. l~nd in g Hala .it:c uf imprcst J<.:count at fiscal Y"'ªr rn led 3() Ju11.~ _UJ ~

5. Plu~: Amou1 e claimed but not yet crediled

: Ni!

: Tk. 50,000,000 : Tk. 397,940 :Ni!

: Tk. 5,661,367 : Tk. 44,736,573

: Tk. 50,000,0 o :Ni!

: Tk. 50,000,000

: Tl:, 44,736,573 : Nil

(1 . Plus: 1\moun crcdi ted but n t yet claimcd : Tk. 5 ,621,073

~ . Le~' ; lnterc~, earn ing (if included in imprest :~croun(: Tk. 397,940 \l. Pl u : ScrvÍc< charg<-s ; Tk. 40,294 ' l . i::.qua ls pn;,1,en1 olllslanding amount advanced ' the

i m pre~t a e, unt .!l fiscal yi...ir : Tk. 50,000,000

M . M izanur Ra hma f' Unit He ad, Finante & Accoun1c. lnfra s.tructure Devé lop~• n• Company Lim•t<' d (IOCOI '

A nnex-B

Rural Electrification and Henewable E nergy Development Project II (REREDP II) - (A to IDA Credit # 5158 BD

Special Account Statement

thc year cnded : .irJ June 2013

llq n iti nI! Bank Janata Bank, Loi.:al Office I .1 !". <' IDA-51 58 BD CunL'llC) BDT

Par1- \ ; A u.:ou nt A ctivit.i::

Cpu1111g E.llanee as , in 01 July 2012 Add :

iJ fu • 1Amo 1nt Depusi ted by the IDA ii¡ T, 1,,1 intercst earning if reported into account iii J T 1. 1 amou nt refur1Jed to cover inLligible expenditure lJ1 duct:

Total <1111uunt withd n1 n

e IChllll! Baf ,11JL'C as nn 'º Ju ne 20 13

l'art-B: Accoun t R t concíliation

1. \mn11nt adv.mL d by IDA ~ . Le,s : T 1aJ amoum rci.:o ·ered bj IDA

-~ · b¡ual\ uutstandmg amount advanced to lile impres• •• cn11 11 r 11 fi~cal: car enJeJ 30 June 2nn , 11 lm ~1 llala11n •il imprc .. , account dt fiscal year n lt:d _1!J June ,21 112

il

: Tk. 700,000,000 : Tk. 2,00..: ,844 :Ni!

: Tk. 667,749,966 : Tk. 34,254,878

: Tk. 700,000,000 :Nil

: Tk. 700,00 ,000

: Tk. 34,254,878 l'l u. : J\111uunt c! .1imcd but not yet creditcd : Ni!

1i. l'lu · Am unt cr-· likd but no¡ yet cl .iimed : Tk. 667,547,027

- . I v .s; J11t ·rest earni ng (if includcd in imprest accour t': Tk. 2,004, 44 ·' J lus: ">,·rvicc chdr~L:~ • : Tk. 202,939 'J . l 11uaf\ pres ' nt ou: tanding amount <l dvanced to the

i1 ¡•re, ¡ .i ,·cuunt ilt li\C':!l \'l' r : Tk. 700,000,000