financial statements of projects funded by for ...documents.worldbank.org/curated/en/... ·...

MiDIX FAST NOUTH APRkCA C

Financial Statements of Projects Funded By the International BankFor Reconstruction and Development - Loan #IBRD#8443(The Water Supply Augmentation Project)

And Auditor's Report

Council for Development and ReconstructionYear Ended December 31, 2016

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

Page

Independent Auditor's Report 3

Statement of Special Account of Projects Funded by the International Bank For Reconstruction 4and Development - Loan #IBRD#8443 (The Water Supply Augmentation Project)

Statement of Project Expenditures of Projects Funded by the International Bank ForReconstruction and Development -Loan #IBRD#8443 (The Water Supply Augmentation 5Project)

Statement of Expenditures of Projects Funded by the International Bank For Reconstruction 6and Development -Loan #IBRD#8443 (The Water Supply Augmentation Project)

Notes to the Financial Statements/ Project Expenditures 7-8

MENAFAn IDDLE EANT NORTO APWCA KSANC.

INDEPENDENT AUDITOR'S REPORT

PresidentCouncil for Development and ReconstructionWorld Bank Loan No. IBRD#8443The Water Supply Augmentation ProjectBeirut, 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 #IBRD#8443 for the year ending and cumulatively as atDecember 31, 2016. The Project financial statements are the responsibility of the Council forDevelopment and Reconstruction's management. Our responsibility is to express an opinion on thesefinancial statements based 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 "The Water Supply AugmentationProject" has complied with the laws, regulations, guidelines and provisions governed by the LoanAgreement. An audit includes examining, on a test basis, evidence supporting the amounts anddisclosures in the financial statements. An audit also includes assessing the accounting principles used, aswell as evaluating the overall financial statement presentation. We believe that our audits provide areasonable basis for our opinion.

In our opinion:

(a) The accompanying Financial Statements present fairly, in all material respects, the cash receipts andpayments of the Water Supply Augmentation Project for the year ending December 31, 2016 andshowing cumulative balances as at December 31, 2016 in accordance with the International PublicSector Accounting Standards(IPSAS), under the cash basis of accounting;

(b) Internal control over financial reporting involved in the preparation of replenishments, directpayments, payments through special commitments, and reimbursements i.e. 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 ReconstructionThe Water Supply Augmentation Project - Loan IBRD # 8443Financial Statements31 December 2016

4

Statement of Special Account (IBRD#8443)

Note USD

Balance as of January 1, 2016

Add:

World Bank replenishments 30,500,000

Deduct:

Difference in Foreign Exchange

Payments for project expenditures funded by the Loam

Works 3

Goods & Equipment 3Consultant's Services 3 (36,982)

(36,982)

Balance December 31, 2016 30,463,018

See accompanying notes to the financial statements.


Statement of Project Expenditures

Note USD

Works 3Goods & Equipment 3Consultants' services and training 3 36,982

36,982

See accompanying notes to the financial statements.


Statement of Expenditures

No withdrawals against the statement of expenditures were made during 2016.


7

Notes to the Financial Statements

1. Project Background

A Loan #IBRD#8443 (The Water Supply Augmentation Project) for the amount of USD 474,000,000 wassigned on January 21, 2015 between the International Bank for Reconstruction and Development and theLebanese Republic (the borrower) to increase the volume of water available to the Greater Beirut andMount Lebanon area. The project consists of the following parts:

Part I: Construction and Construction Supervision of the Bisri Dam and Associated Infrastructure

a- Supporting construction and construction supervision of the Bisri Dam and the associatedaccess road.

b- Supporting construction and construction supervision of the conveyor pipelines to theexisting Joun reservoir and the associated access road; two(2) hydropower plants, generating0.2 megawatt (MW) and 10 MW respectively; and expansion of the Quardaniyeh watertreatment plant.

Part II: Sustainability of Service Delivery

a- Strengthening the capacity of MOEW, CDR, and BMLWE on the operation and maintenanceof dams through provision of technical assistance.

b- Strengthening the capacity of MOEW and BMLWE on management of water resourceswithin the Beirut Mount Lebanon area, through provision of technical assistance.

c- Developing and implementing an awareness raising program to prepare for eventualvolumetric metering of water supply.

d- Implementing environmental mitigation measures set out in the ESMP, including. (i) theconstruction of sewage networks in the upstream catchment villages; and (i) otherenvironmental and social mitigation measures set out in the ESMP.

Part III: Project Management and Quality Assurance

a- Strengthening the capacity of the Project Management Unit (PMU) to implement the Project.

b- Supporting the work of the Dam Safety panel of Experts and independent Environment andSocial Panel of Experts.

c- Supporting the social and environmental safeguards supervision.

Part IV: Land Acquisition and Resettlement Compensation

a- Implementing the Resettlement Action Plan, including, inter alia, providing Land Acquisitionsand Resettlement Compensations to the Displaced Persons.

b- Supporting livelihood rehabilitation and benefit sharing activities.

c- Monitoring and evaluating the implementation of the Resettlement Action Plan.


8

The table below sets forth categories of items to be financed out of the proceeds of the Loan underCDR's management (USD 474,000,000) and the allocation of the amounts of the Loan to eachcategory.

Category USD

Works, Goods and non-consulting services, Consultants' services and Training andIncremental Operating Costs 317,815,000Land Acquisition and Resettlement Compensations 155,000,000

Front-end Fee 1,185,000

Interest Rate Cap

474,000,000

The closing date for this Loan is June 30, 2024.

2. Summary of Significant Accounting Policies

The accompanying statement of special account, project expenditures and statement ofexpenditures are prepared on the cash basis of accounting. On this basis, disbursements from Loanare recognized when received and expenses are recognized when paid rather than when incurred.

3. Details of Expenditures

Expenditures paid from the Water Supply Augmentation Special account paid during the year 2016are detailed as follows:

Amount financedContractor's Name Description from loan proceeds

(100%)Consultants' Services

Maya Hachem Finance Officer 27,000Elissar El Oraibi Project Engineer 9,982Total Consultants' Services 36,982Total 36,982

4. S.O.E Withdrawals During the Year 2016

No withdrawals against the statement of expenditures were made during 2016.

financial statements of projects funded by for ...documents.worldbank.org/curated/en/... ·...

Documents