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MInD1.X rASt roNtTiI APRICA rt'iAluCr
Financial Statements of Projects Funded By the International BankFor Reconstruction and Development - Loan #8137 LE(Additional Financing for the Cultural Heritage and UrbanDevelopment Project)
And Auditor's Report
Council for Development and ReconstructionYear Ended December 31, 2016
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Contents
Page
Independent Auditor's Report 3
Statement of Special Account of Projects Funded by the International Bank For Reconstructionand Development - Loan #8137 LE (Additional Financing for the Cultural I leritage and Urban 4Development Project)
Statement of Project Expenditures of Projects Funded by the International Bank ForReconstruction and Development -Loan #8137 LE (Additional Financing for the CulturalHeritage and Urban Development Project)
Notes to the Financial Statements/ Project Expenditures 6-9
MENAFmilni VA*-t NE1TIt AFRICA FINAWCF
INDEPENDENT AUDITOR'S REPORT
PresidentCouncil for Development and ReconstructionWorld Bank Loan No. 8137 LECultural Heritage and Urban Development Project - Additional FinancingBeirut, Lebanon
We have audited the accompanying financial statements comprising of the statement of Special Account,Project Expenditures, and Statement of Expenditures of Project Funded by the International Bank forReconstruction & Development, Loan #8137 LE for the year ending and cumulatively as at December31, 2016. The Project financial statements are the responsibility of the Council for Development andReconstruction's management. Our responsibility is to express an opinion on these financial statementsbased on our audit.
We have also audited compliance with the laws, regulations, guidelines and provisions governed by theLoan Agreement for the year ended December 31, 2016.
We conducted our audits in accordance with International Standards on Auditing. Those Standardsrequire that we plan and perform the audits to obtain reasonable assurance about whether the financialstatements are free of material misstatement and about whether the "Additional Financing for theCultural Heritage and Urban Development Project" has complied with the laws, regulations, guidelinesand provisions governed by the Loan Agreement. An audit includes examining, on a test basis, evidencesupporting the amounts and disclosures in the financial statements. An audit also includes assessing theaccounting principles used, as well as evaluating the overall financial statement presentation. We believethat our audits provide a reasonable basis for our opinion.
In our opinon:
(a) The accompanying Financial Statements present fairly, in all material respects, the cash receipts andpayments of the Additional Financing for the Cultural Heritage and Urban Development Projectforthe year ending December 31, 2016 and showing cumulative balances as at December 31, 2016 inaccordance with the International Public Sector Accounting Standards(IPSAS), under the cash basis ofaccounting;
(b) Internal control over financial reporting involved in the preparation of replenishments, directpayments, payments through special commitments, and reimbursements ie. expenditures reimbursedon the basis of Statements of Expenditures can be relied upon to support the related withdrawals as ofDecember 31, 2016;
(c) The project was in all material respects in compliance with the laws, regulations, guidelines andprovisions governed by the Loan agreement.
May 17, 2017MENAF
Jihad AnoutiManaging Partner
Council for Development and ReconstructionCultural Heritage and Urban Development Project - Additional Financing, Loan 8137 LEFinancial Statements31 December 2016
4
Statement of Special Account (8137 LE)
Note USD
Balance as ofJanuary 1, 2016 1,577,878
Add:
World Bank replenishments 4,675,218
Direct Payment 65,520
Deduct:
Payments for project expenditures funded by the loan:
Works, Goods and Equipment, Consultant's Services 3 (5,024,942)
(5,024,942)
Balance December 31, 2016 1,293,673
See accompanying notes to the financial statements.
Council for Development and ReconstructionCultural Heritage and Urban Development Project - Additional Financing- Loan 8137 LEFinancial Statements31 December 2016
Statement of Project Expenditures
Note USD
Works, Goods and Services 3 5,024,942
5,024,942
See accompanying notes to the financial statements.
Council for Development and ReconstructionCultural Heritage and Urban Development Project - Additional Financing- Loan 8137 LEFinancial Statements31 December 2016
6
Notes to the Financial Statements
1. Project Background
A LOAN #8137 LE (Additional Financing for the Cultural Heritage and Urban Development Project)for the amount of USD 27,000,000 was signed on August 9, 2012 between the International Bank forReconstruction and Development and the Lebanese Republic (the borrower) for the purpose ofproviding additional financing for the original project "Cultural Heritage and Un.an DevelopmentProject). The objective of the Project are o assist the borrower in: (a) creating the conditions forincreased local economic development and enhanced quality of life in the historic centers of the cities ofBaalback, Byblos, Saida, Tripoli and Tyre; and (b) improving the conservation and management of thecountry's cultural heritage.
The table below sets forth categories of items to be financed out of the proceeds of the Loan underCDR's management (USD 27,000,000) and the allocation of the amounts of the loan to each category:
Category USD
Works, Goods and non-consulting Consultants' service and training services,Consultants' services and training and In. operating Costs 26,932,500Front-end Fee 67,500Interest Rate Cap 0
27,000,000
The closing date for this Loan is December 31, 2016 as per the amendment signed on January 5, 2016,with a Grace period of four months.
The front-end fee amounting to USD 67,500; being 0.25% of loan amount under CDR's managementwas settled to the Lender as of February 13, 2013 (the effective date) in the form of deduction from theloan proceeds booked in the accompanying statement of project expenditures.
The Payment Dates areJanuary 15 and July 15 in each year.
The effectiveness Deadline is the date one hundred and eighty (180) days after the date on thisagreement.
2. Summary of Significant Accounting Policies
The accompanying statement of special account, project expenditures and statement of expenditures areprepared on the cash basis of accounting. On this basis, disbursements from loan are recognized whenreceived and expenses are recognized when paid rather than when incurred.
Council for Development and ReconstructionCultural Heritage and Urban Development Project - Additional Financing- Loan 8137 LEFinancial Statements31 December 2016
7
3. Details of Expenditures
Expenditures paid from the Additional Financing for the Cultural I leritage and Urban DevelopmentSpecial account and direct payments paid during the year 2016 are detailed as follows:
Gesco~.n ainnde afeome lean proG roccPHAEs
Contractor's Name DescriptionAmutfncefrmlnpocd
Works, Goods and Services
Building Facades and Parkig m6Al Bonan Engmnenng and Contractmn Baalbeck Old City Phase 2 - lot 1 1.02,081
Nabil h anu Archiect P'lanner 5,350Ba2lbak and Tyr archeological
Gesco and atcher jean Loup project PHASE 1 949,150Comp Works for the Rch of abo ah
M.A. contractmng and tradmng Est River and Tnpolh old eity 764,466
Copy Tech Purchase of Plhotocopy Machmne 14,830Children and Youth Developmentfor Khan El Askar Cormunity and
Enjaz Lebanon Development project 36,(KX)Production for Documentary film
Vantascope Production for CHUD Project 69,035
Michel Labban financial Officer 3.210
Lana Shhade Archeological program officer 3,014Complementary Works for theRchabilitation of Abou Ali River
MA. contracting and trading Est Banks in Tripoli Old City 44.370
loseph Gaouch Municipal Engneer in Byblos 4.066
Maher Bakir MIU-Procurement/c specialist 5,350
Ahmad El Meshed Municipal Engineer in Tripoli 4,013
Adnan Khanfour Municipal Engnneer in Baalbak 4,013Municipal Engineer in
NidalShhayeb Baalbak/Saida and Sour 4.013
Consultation and reaserch institute Opening Survey 65,7(X)
)ean Yasnn PlU/DGA Project Manager 5,3501-21ADeghayli Procurement Specialist 4.60)
Supervision of Bawabe Square inRaficKhoury 3 IYR 23,432
Women Capacity Building andSouk Al tayeb Income Gencration 36,0X00
Middle East Development Co.Sal Supply of 2 water tank trucks 1017()
UDC Rehabilitation of Bybos Old City 861,686Rehabilitation of Bawabe Square
Ward 2 and Parking in Tyr - Phase 3 547,993Amount paid from special account 4,959,422
Direct Payment
Payments io Dr. David ThrsbyDr David Throsby for the assessment of the economic
impact of the cultural hentage and 65,520urban deveopment project
Direct Payment 65,520
Total 5,024,942
Council for Development and ReconstructionCultural Heritage and Urban Development Project - Additional Financing- Loan 8137 LEFinancial Statements31 December 2016
4. S.O.E Withdrawals During the Year 2016
Withdrawal Works, Goods and Services
USD
27 78,73128 9,45031 121,04443 36,000
S.O.E withdrawals 31.12.2016 245,225
5. Cumulative Statement of Special Account
The cumulative drawings and payments made in this account since inception up to December 31, 2016are detailed as follows:
USD
World Bank initial deposit 2,000,000World Bank replenishments 9,994,943Increase of the special account
Interest earned
11,994,943
Payments for project expenditures funded by the Loan:
Works (10,432,146)Consultants' services and training (269,124)
(10,701,270)Balance - December 31, 2016 1,293,673
Council for Development and ReconstructionCultural Heritage and Urban Development Project - Additional Financing- Loan 8137 LEFinancial Statements31 December 2016
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6. Cumulative Statement of Project Expenditures
USD
Works, Goods and Services 21,237,164
21,237,164