Audited Project Financial Statements

The audited project financial statements are documents owned by the borrower. The views expressed herein do not necessarily represent those of ADB’s Board of Directors, Management, or staff. These documents are made publicly available in accordance with ADB’s Public Communications Policy 2011 and as agreed between ADB and Communal Services Agency "Kommunkhizmat" (CSA) formerly Uzbekistan Communal Services Agency "Uzkommunkhizmat".

Project Number: 42489-053 Loan Number: 3064 Period covered: 5 September 2014 to 31 December 2015

UZB: Water Supply and Sanitation Services Investment Program - Tranche 4

Prepared by Mazars Vietnam Co. Ltd. (Uzbekistan)

For the Asian Development Bank Date received by ADB: 2 March 2018

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Water Supply and SanitationServices Investment Program -Tranche 4

Audited Special Purpose FinancialStatements

Under the Loan Agreement No. 3064-UZB (COL)between Republic of Uzbekistan and AsianDevelopment Bank

For the period from 5 September 2014to 31December 2015

MAZARS VIETNAM

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Water Supply and Sanitation Services Investment Program - Tranche 4

Under the Loan Agreement No. 3064-UZB (COL) between Republic of lJzbekistan and AsianDevelopment Bank

Gontents

STATEMENT OF THE PROJECT MANAGEMENT. . . . . . . . . . . . . . , , . . . . . . . . 1

INDEPENDENT AUDITORS' REPORT . . . . . . . . 3

STATEMENT OF CASH RECEIPTS AND PAYMENTS.. . . . . . . . . . . . . . . . .7

STATEMENT OF USES OF FUNDS BY CATEGORIES , . . . . . . . . . . . . . . . 9

STATEMENT OF IMPREST ACCOUNT. . . . . . . . . . . . . . . . . . . . . . . 10

STATEMENT OF LOAN WITHDRAWALS.. . . . . . . . . . . . . . . . . . . 11

NOTES TO THE SPECIAL PURPOSE FINANCIAL STATEMENTS . . . . . . . . . . . . . . . 13

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Water Supply and Sanitation Services lnvestment Program - Tranche 4

Under the Loan Agreement No. 3064-UZB (COL) between Republic of Uzbekistan and AsianDevelopment Bank

STATEMENT OF THE MANAGEMENT OF PROJECT COORDINATION UNIT

The Management of Program Coordinat ion Unit ("PCU") of Uzkommunkhizmat agency of the WaterSupply and Sanitation Services Investment Program - Tranche 4 ("the Project Management") isresponsible for the Special Purpose Financial Statements of Water Supply and Sanitation ServicesInvestment Program - Tranche 4 ("the Project") for the period from 5 September 2014 to 31December 201 5.

The Project

Water Supply and Sanitation Services Investment Program - Tranche 4 operates under the LoanAgreement No. 3064-UZB (COL) dated 27 February 2014 between Republic of Uzbekistan andAsian Development Bank. According to the Loan Agreement, the ADB's Special Funds resourcesprovided tor 27,977,000 Special Drawing Rights (SDR) (or USD40 mil l ion) and the counterpart fundprovided for USD10.6 mi l l ion ( including USDB.lB mi l l ion in the form of tax and customs dutyexemption).

The physical completion of the Project was scheduled for 30 September 2017 with financial closingby 31 March 2018.

The objective of the Project is to provide safe, reliable and sustainable sewerage services in theProject Area.

The Project shal l comprise:

Part 1. Seweraqe Infrastructure lmprovement

(a) rehabilitation and expansion of the sewerage system, and provision of spare parts andoperation and maintenance equipment for the rehabilitated sewerage system, and in ProjectArea;

(b) promotion of good hygiene and practices in selected schools in Fergana and Margilan cities;

Part 2. Capacitv Development and Investment Proqram Manaqement

(c) implementation of institutional strengthening and capacity development for vodokanals in theProject Area; and

(d) provision of technical , f inancial , audit ing and consult ing support for program preparat ion,implementat ion and management, including the detai led design and civi l works supervision ofthe physical investments referred to in paragraph (a) of Part I above.

The executive agency for the Project is Uzbekistan Communal Services Agency ("CSA") orUzkommunkhizmat Agency.

PCU office of the Uzkommunkhizmat Agency is located at No. '1, Niyozbek yuli street, TashkentUzbekistan.

The Management of Project Goordination Unit

Mr. Shavkat Norkobi lovMr. Bakhrom Mavlyanov

Auditor

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The accompanying Special Purpose Financial Statements for the period from 5 September 2014 to31 December 2015 have been audited by Mazars Vietnam Co , Ltd.

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Under the Loan Agreement No. 3064-UZB (COL) between Republic of Uzbekistan and AsianDevelopment Bank

STATEMENT OF THE MANAGEMENT OF PROJEGT GOORDINATION UNIT (cont inued)

Responsibi l i ty of the Project Management in respect of the Special Purpose FinancialStatements

The Project Management is responsible for preparation of the Special Purpose Financial Statementswhich give a true and fair v iew of the f inancial posi t ion, balance of imprest accounts, and fundbalance of the Project as at 31 December 2015 and of its activities of imprest accounts, receipts,disbursements and fund withdrawals for the period from 5 September 2014 to 31 December 2015. Inpreparing the Special Purpose Financial Statements which give a true and fair view, the ProjectManagement is required to select sui table account ing pol ic ies and then apply them consistent ly.

The Project Management is responsible for ensuring that proper account ing records are kept whichenable the Special Purpose Financial Statements to be prepared in compl iance with the basis ofaccounting set out in Note 2 to the special purpose financial statements. The Project Management isalso responsible for safeguarding the assets of the Project and hence for taking reasonable steps forthe prevention and detection of fraud and other irregularities.

The Project Management is responsible for ensuring that al l expenditure was disbursed only foragreed project objectives under the Loan Agreement and the Project is in compliance with thef inancial covenants of the Loan Agreement.

The Project Management assumes the responsibi l i ty to provide, and has provided, the auditors withal l account ing records, support ing and other documents, minutes, any pert inent information andexplanations, either orally or by written confirmation, necessary for the audit.

Approval of the Special Purpose Financial Statements

We hereby approve the accompanying statements on pages 7 to 17 which give a true and fair viewof the financial position and the balance of the imprest accounts of the Project as at 31 December2015, and act iv i t ies of imprest accounts and the fund received, disbursed and fund withdrawals forthe period from 5 September 2014 to 31 December 2015 in accordance with the accounting policiesas described in Note 2 to the Special Purpose Financial Statements.

On behalf of the Project Management

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M A Z A R S

Reference: HN-AU/17lADB-L3064-UZB (COL) 1

INDEPENDENT AUDITORS' REPORTOn Project Special Purpose Financial Statements

To: Project Management of Water Supply and Sanitation Services Investment Program -

Tranche 4

Opinion

We have audited the accompanying Statement of Cash Receipts and Payments, the Statement ofUses of Funds by categories for the period from 5 September 2014 to 31 December 2015 of theWater Supply and Sanitation Services Investment Program - Tranche 4 ("the Project"). We havealso audited the Statement of lmprest Account and the Statement of Loan Withdrawals for theperiod from 5 September 2014 to 31 December 2015 (collectively referred to as the "SpecialPurpose Financial Statements") and the notes thereto.

In our opinion, in al l mater ial respects:

a) the Statement of Cash Receipts and Payments, the Statement of Uses of Funds by categoriesgive a true and fair view of the financial position of the Project as at 3'1 December 2015, of thef u n d s r e c e i v e d a n d d i s b u r s e d f o r t h e p e r i o d f r o m 5 S e p t e m b e r 2 0 1 4 t o 3 1 D e c e m b e r 2 0 l 5 i nconformity with the accounting policies described in Note 2.

b) the Statement of lmprest Account and the Statement of Loan Withdrawals give a true and fair

_ view of the balance of the imprest account as at 31 December 20'15 and activities of theimprest account, and of the loan withdrawn for the period from 5 September 2014 to 31December 2015 in conformity with the account ing pol ic ies descr ibed in Note 2.

c) Withdrawal Applications were adequately reconciled to the statements of expenditures("SOEs") prepared by the Project Management for the period from 5 September 2014 to 31December 2015 and those SOEs were adequately supported by accounting vouchers.

Basis for opinion

We conducted our audit in accordance with Internat ional Standards on Audit ing (" lSA"). Ourresponsibilities under those standards are further described in the Auditor's Responsibilities for theAudit of the Special Purpose Financial Statements sect ion of our report . We are independent of theProject in accordance with the ethical requirements that are relevant to our audit of the SpecialPurpose Financial Statements in Uzbekistan, and we have ful f i l led our other ethical responsibi l i t iesin accordance with these requirements.

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

Management 's Responsibi l i ty for the Special Purpose Financial Statements

The management is responsible for the preparat ion and fair presentat ion of the Special PurposeFinancial Statements in accordance with basis of accounting practices as described in Note 2 to theSpecial Purpose Financial Statements and for such internal control as management determines isnecessary to enable the preparation of the Special Purpose Financial Statements that is free frommaterial misstatement, whether due to fraud or error.

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G L O E A L A L L I A T I C F C Il r u c i E i l n E u r F t R i l s

M A Z A R S

In preparing the Special Purpose Financial Statements, management is responsible for assessingthe Project 's abi l i ty to cont inue as a going concern, disclosing, as appl icable, matters related togoing concern and using the going concern basis of account ing unless management ei ther intendsto liquidate the Project or to cease operations, or has no realistic alternative but to do so.

Auditor 's Responsibi l i ty

Our objectives are to obtain reasonable assurance about whether the Special Purpose FinancialStatements as a whole are free from material misstatement, whether due to fraud or error, and toissue an auditor 's report that includes our opinion. Reasonable assurance is a high level ofassurance, but is not a guarantee that an audit conducted in accordance with lSAs will alwaysdetect a material misstatement when it exists. Misstatements can arise from fraud or error and areconsidered material if, individually or in the aggregate, they could reasonably be expected toinf luence the economic decisions of users taken on the basis of these Special Purpose FinancialStatements.

As part of an audit in accordance with lSAs, we exercise professional judgment and maintainprofessional skepticism throughout the audit. We also:

r ldentify and assess the risks of material misstatement of the Special Purpose FinancialStatements, whether due to fraud or error, design and perform audit procedures responsive tothose risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for ouropinion. The risk of not detecting a material misstatement resulting from fraud is higher than forone result ing from error, as fraud may involve col lusion, forgery, intent ional omissions,misrepresentations, or the override of internal control;

. Obtain an understanding of internal control relevant to the audit in order to design auditprocedures that are appropriate in the circumstances, but not for the purpose of expressing anopinion on the effectiveness of the Project's internal control;

o Evaluate the appropriateness of accounting policies used and the reasonableness of accountingestimates and related disclosures made by management;

r Conclude on the appropriateness of management's use of the going concern basis of accountingand, based on the audit evidence obtained, whether a material uncertainty exists related toevents or condit ions that may cast s igni f icant doubt on the Project 's abi l i ty to cont inue as a goingconcern. lf we conclude that a material uncertainty exists, we are required to draw attention inour auditor's report to the related disclosures in the Special Purpose Financial Statements or, ifsuch disclosures are inadequate, to modify our opinion. Our conclusions are based on the auditevidence obtained up to the date of our auditor's report. However, future events or conditionsmay cause the Project to cease to continue as a gorng concern

Audit ParlnerAudit Practicing Registration CertificateNo. 1102-2013-177-1

Hanoi. Vietnam. 28 November 2Q17

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Reference: HN-AUi1 7/ADB-L3064-UZB(COL) 2

INDEPENDENT AUDITORS' REPORTOn Compliance with the Provisions of theLoan Agreement

To: Project Management of Water Supply and Sanitation Services Investment Program -Tranche 4

We have audited the accompanying Statement of Cash Receipts and Payments, the Statement ofUses of Funds by categories for the period from 5 September 20141o 31 December 2015 of theWater Supply and Sanitation Services Investment Program - Tranche 4 ("the Project"). We havealso audited the Statement of lmprest Account and the Statement of Loan Withdrawals for theperiod from 5 September 2014lo 31 December 2015 (collectively referred to as the "SpecialPurpose Financial Statements") and the notes thereto and have issued our report thereon. As partof the audit of the Project Special Purpose Financial Statements per the Terms of Reference, wehave examined the Project's compliance with the provisions of the Loan Agreement No. L3064-UZB(COL) dated 27 February 2014 between Republic of Uzbekistan and Asian Development Bank ("theLoan Agreement").

Management's Responsibility for the compliance of the Project

Management of the Project is responsible for the compliance of the Project with laws, regulations,the Loan Agreement and other guidance from ADB.

Auditors' responsibilities

Our responsibi l i ty is to express an opinion on the Project 's compl iance with the requirements basedon our procedures. We conducted our engagement in accordance with International Standards onAssurance Engagement 3000, "Assurance Engagements other than Audits or Reviews of Histor icalFinancial Information", issued by the Internat ionalAudit ing and Assurance Standards Board. Thisstandard requires that we comply with relevant ethical requirements, plan and perform ourprocedures to obtain reasonable assurance about whether, in all material respects, the Project hascomplied with req uirements.

An assurance engagement to report on the compliance with the regulatory and contractualrequirements at a project, involves performing procedures to obtain evidence about whether theproject's activities are free of material noncompliance with the requirements. The proceduresselected depend on the auditor's judgment, including the assessment of risks that the Project doesnot comply with the requirements. Our procedures included testing the compliance with therequirements that we consider necessary to provide reasonable assurance that the requirementsare complied with by the Project.

We believe that the evidence we have obtained is sufficient and appropriate to provide a basis forour oo tn ton .

t o r H & t t r H F L o o R , V r E T D R A c o N T o w E R , r 4 r N c u Y E N D u S r n t : r , D t s r n t c r t - H o C s t M t l u C t r v

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G L O B A L A L L I A N C E O FI N D E P E N D E N I F I F [ 4 S

M A Z A R S

Opinion

In our opinion, in all material respects:The Project was in compliance with the financial covenants of the Loan Agreement No.13064-UZB(COL) dated 27 February 2014 between Republic of Uzbekistan and AsianDevelopment Bank for the period from 5 september 2014 to 31 December 2015;The Project's loan proceeds were utilized for the period from 5 September 2014 to 31December 2015 for the purposes defined by the Loan Agreement.

tIII No. 1 1 02-20 13-177 -1

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TEL: +84 243936 tq1 - F^xi +84243573 9706 - contact-hanoi@mazars.vn - www.mazars.vn

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Water Supply and Sanitation Services Investment Program - ProjeCt 4

Under the Loan Agreement No. 3064-UZB (COL) between Republic of Uzbekistan and AsianDevelopment Bank

STATEMENT OF USES OF FUNDS BY CATEGORIESFor the period from 5 September 2014 to 31 December 2015

Uses of funds under the Asian Development Bank financing:WorksGoodsDetailed DesignIncremental AdministrationInterest Charge

Total uses of funds

Prepared by:

Currency: USD

Cumulative to31 December

2015

1 ,069 ,915555,246573,89680,6938,226

2,287,876 2,297,976

Abdullaeva NIGORAChief Accountant

Tashkent, Uzbekistan, 28 November 2017

For the periodfrom 5 September

2014 to 31December 2015

1 ,069 ,815555,246573,89680,6938,226

Approved by:

The accompanying notes form an integral paft of the special purpose financial statements

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water supply and sanitation services Investment program - project 4

U_nde1 the Loan Agreement No. 3064-UZB (COL) between Republic of tJzbekistan and AsianDevelopment Bank

STATEMENT OF IMPREST ACCOUNT (USD)For the period from 5 September 2014 to 31 December 2015

Account No.:Bank:

2021 0840 6048 5173 8010Open Joint Stock lnnovation Commerciat Bank - lpak yuli

Loan Agreement No.: 3064-\JZB (COL) dated 27 February 2014

Part A - Account Transaction

Opening balance

Add:Totalamount advanced to imprest accountTotalamount replenished to imprest account

Deduct:Total amount withdrawn

Ending balance

Part B - Account Reconciliation

Opening balanceAdd:

Amount advanced by Asian Development BankTotalamount replenished to imprest accountTotal amount claimed

Outstanding amount advanced to imprest accountas at the period end

Ending balance of imprest account

Add:Amount withdrawn and not yet claimed forreplenishment

Total advance to imprest account accounted for asat the period end

Prepared by:

Abdullaeva NIGORAChief Accountant

Tashkent, Uzbekistan, 28 November 2017

Currency: USDFor the period

from 5 September2014 to 31

December 2015

100,00034,109

(80,720)

100,00034 ,109

(34,109)

100,000

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46,611

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The accompanying notes form an integral part of the speciat purpose financiat statements1 0

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Water Supply and Sanitation Services Investment Program - Project 4

Under the Loan Agreement No. 3064-UZB (COL) between Repubtic of lJzbekistan and AsianDevelopment Bank

NOTES TO THE SPEGIAL PURPOSE FINANCIAL STATEMENTSFor the period from 5 September 2014 to 31 December 2015

Project background

The Project

Water Supply and Sanitation Services Investment Program - Tranche 4 operates under the LoanAgreement No. 3064-UZB (COL) dated2T February 2014 between Republic of Uzbekistan and AsianDevelopment Bank. According to the Loan Agreement, the ADB's Special Funds resources providedfor 27,977,000 Special Drawing Rights (SDR) (or USD40 million) and the counterpart fund provided forUSD10.6 mil l ion ( including USD8.18 mil l ion in the form of tax and customs duty exemption).

The physical completion of the Projectwas scheduled for30 September 2017 with financial closing by31 March 2018.

The objective of the Project is to provide safe, reliable and sustainable sewerage services in theProject Area.

The Project shall comprise:

Part 1. Sewerage Infrastructure lmprovement

(e) rehabilitation and expansion of the sewerage system, and provision of spare parts andoperation and maintenance equipment for the rehabilitated sewerage system, and in ProjectArea;

(f) promotion of good hygiene and practices in selected schools in Fergana and Margilan cities;

Part 2. Capacity Development and Investment Program Manaoement

(g) implementation of institutional strengthening and capacity development for vodokanals in theProject Area; and

(h) provision of technical, financial, auditing and consulting support for program preparation,implementation and management, including the detailed design and civil works supervision ofthe physical investments referred to in paragraph (a) of Part I above.

The executive agency for the Project is Uzbekistan Communal Services Agency ("CSA") or"Uzkommunkh izmat" Agency.

1 3

2.

Water Supply and Sanitation Services Investment Program - Pro.lect 4

Under the Loan Agreement No. 3064-UZB (COL) between Republic of Uzbekistan and AsianDevelopment Bank

NOTES TO THE SPECIAL PURPOSE FINANCIAL STATEMENTS (cont inued)

For the period from 5 September 2014 to 31 December 2015

Summary of s igni f icant account ing pol ic ies

Basis of accounting

The accompanying Projects' Special Purpose Financial Statements, which are expressed in UnitedStates dol lar ("USD") are prepared in accordance with the Internat ional Publ ic Sector Account ingStandards ( ' IPSAS') "Financial Report ing under the Cash Basis of Account ing" issued by the Publ icSector Committee of the International Federation of Accountant and based on the Asian DeveloomentBank's financial reporting requirements.

The Special Purpose Financial Statements were prepared and presented based on cash method ofaccount ing. Cash method of account ing is the account ing pr inciple, according to which changes in thef inancial posi t ion of the Project are recognized only at the t ime when cash is paid or obtained.

The Special Purpose Financial Statements prepared based on cash method presents information onthe source of cash, application of funds objectives and cash balances at the reporting date. Themeasurement focus in the Special Purpose Financial Statements is balances of cash and changestherein.

Foreign currency transaction and translation

Cash receipts and payments arising from transactions in a foreign currency are recorded in theProject's reporting currency by applying to the foreign currency amount the exchange rate between thereporting currency and the foreign currency at the date of the receipts and payments. Foreignexchange rate is the actual rate used for each transaction.

Cash balances held in a foreign currency are reported using the closing rate. The amount of exchangedifferences is included as reconciling items between opening and closing cash balances for the period.

Funds provided

The Project is provided by two sources: 90.5o/o of works, goods, training and capacity building, detaileddesign, other consult ing services, incremental administrat ion and interest charge (during grace period)are f inanced by the ADB and the remaining 9.5o/o by the Government of Republ ic ofUzbekistan("GOU").

ADB financing:

Funds from the ADB are recognized when: (i) direct payments are made to suppliers/contractorsaccounts; (ii) funds are transferred to the Project's imprest account; and (iii) the ADB withdraws interestpayable from the Loan Account and pays i tsel f the amounts due during grace period, semi-annual ly on15 June and 15 December .

Government financing:

According to the Resolut ion No. PP-2214 of the President of the Republ ic of Uzbekistan dated 18 July2014, the contr ibut ion of GOU is USD10.6 mi l l ion, including USD8.18 mil l ion in the form of tax andcustoms duty exemption. Financing from the GOU is received when the direct payments are made tosu ppl iers/contractors accou nts

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Water Supply and Sanitation Services Investment Program - Project 4

Under the Loan Agreement No. 3064-UZB (COL) between Republic of lJzbekistan and AsianDevelopment Bank

. NOTES TO THE SPECIAL PURPOSE FINANCIAL STATEMENTS (continued)

or the period from 5 September 2014 to 31 December 2015

- Project expenditures

. The Project expenditures are recognized when payments are made to suppliers/contractors. Thepayments are made either from the ADB/GOU (under direct payment) or from the imprest account

l (under advance fund procedure).

' lmprest account

' lmprest account is a deposit account denominated in USD opened at the Open Joint Stock Innovation

, Commercial Bank - lpak Yuli to serve the projects' activities. The payments from the imprest accountshall be effected only in accordance with the relevant provisions of the Loan Agreement No. 3064-UZB

. (COL) dated 27 February 2014 and the relevant provisions of the Asian Development Bank.

. Fixed assefs

' Fixed assets include office furniture, equipment and project equipment's. There is no capitalization of

. fixed assets. All expenses and income from purchases or disposal of fixed assets are recorded as 1ii leceipts or disbursements in the period incurred. Memorandum listings are kept for control and

H

r management purposes.

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. l 3. Gomparison of budget and actual cash disbursements

r The table below presents comparison of budget and actual cash disbursements from the ADB funding

j and the GOU funding separately.

The budget of the Project agreed between the parties relates to the whole period of the Project, which! is determined 5 years. At the end of the Project, final variance will be presented between budget andi cumulative actual cash payments under the Project

r Budget related to the ADB financing

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Currency: USDGumulative to 31 December 2015

ActualBudget payments

WorksGoodsTraining and Capacity BuildingDetai led DesignOther Consult ing ServicesI ncremental Administrationlnterest ChargeUnallocated

Total cash disbursements 38,823,591 2,297,976

Variance

17,747,881 1 ,069,81512,792,345 555,246

1 1 7 , 9 4 31,204,207 573,896

385,744690,205 80,693

1,625,558 8,2264.259.708

16,678,06612,237,099

117,943630 ,311385,744609 ,512

1,617 ,3324,259,708

36,535,715

As at 31 December 2015, undrawn borrowing faci l i t ies comprised USD36,535,715.

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Water Supply and Sanitation Services lnvestment Program - Project 4

Under the Loan Agreement No. 3064-UZB (COL) between Republic of Uzbekistan and AsianDevelopment Bank

NOTES TO THE SPECIAL PURPOSE FINANCIAL STATEMENTS (continued)

For the period from 5 September 2014 to 31 December 2015

Budget related to the GOU financing

Currency: USDGumulative to 31 December 2015

Budget(.)

Actualpayments

Variance

4.

Works 2,420,000 2,420,000

(*) According to the Resolution No. PP-2214 of the President of the Republic of Uzbekistan dated 18July 2014, the contr ibut ion of GOU is USD10.6 mi l l ion, including USD8.1B mil l ion in the form of tax andcustoms duty exemption.

Cash

Currency: USDAs at3111212015

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ll s

l

USD lmprest Account at the Open Joint Stock InnovationCommercial Bank - loak YuliUZS Account at the Open Joint Stock InnovationCommercial Bank - lpak Yuli

TOTAL

Cash receipts from the Asian Development Bank

53,389

27

53.416

Init ial advanceAdvance fund procedure

Direct payment

I nterest capitalization

TOTAL

For the periodfrom 5

September 2014to 31 December

2015

100,00034 ,109

2,198,957

8,226

Currency: USD

Cumulative to31 December

2015

100,00034,1 09

2,198,957

8,226

2,341,292 2,341,292I

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6.

Water Supply and Sanitation Services lnvestment Program - project 4

Under the Loan Agreement No. 3064-UZB (COL) between Republic of uzbekistan and AsianDevelopment Bank

NOTES To THE sPEclAL PURPOSE FINANGIAL STATEMENTS (continued)For the period from 5 September 2014 to 3'1 December 2O1S

Loan No. 3064-UZB (COL) from the ADB

The loan bears an interest rate of 2o/o per annum during the grace period and thereafter on the amountof the Loan withdrawn from the Loan Account and outstanding. The payments of principal commenceafter the grace period starting from December 2018.

The interest charge on the Loan shall be payable semiannually on 15 December and 1S June in eachyear. The ADB withdraws interest payable from the Loan Account and pays itself the amounts dueduring the grace period. For the period from 5 September 2014 to 31 December 2015, two semi-annualinterest payments were withdrawn by the ADB in amount of USD8,226. The interest charge will becovered by the GOU after the grace period.

Prepared by: Approved by:

Crt.-Abdullaeva NIcORAChief Accountant

Tashkent, Uzbekistan, 28 November 2017

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