Upload
others
View
1
Download
0
Embed Size (px)
Citation preview
MINISTRY F TRMURY AND FINANCEBOARD OF TREASURY CONTROLLERS
RENEWABLE ENERGY INTEGRATION
Implemented by
TURKISH ELECTRICITY TRANSMISSION COMPANY
Financed Under World Bank Loan Agreement Numbered 83710-TR
As of December 31, 2018 and For the Year Then Ended
Prepared by
jBilgehan GOKMEN - Mustafa Emre BAYKALSenior Treasury Controller Treasury Controller
Report's Number
123/32 65/4
Jne Al,S 10O1
June 18, 2019
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
REPUBLIC OF TURKEYMINISTRY OF TREASURY AND FINANCE
Board of Treasur Controllers
CONTENTSEX ECUTIVE SUM MAR Y ........................................... ........................... ....................................................................................... O
A. Project Sum m ar y ................................................................................................................................................................... 3
B . Obj jectives of Audit ................................................................................................................................................................. 4
C. Scope of Audit ........................................................................................................................................................................... 4
D. Audit Results ............................................................................................................................................................................. 5
E. M anagem ent Recom m endation .................................................. .......................... .......................................................... 5
INDEPENDENT AUDIT REPOR T' S & F IN ANCIAL STATEMENTS OF THE PROJECT .................................. 2
IN DEPENDENT AUD ITO R'S SREPORT ................................................................................................................................. 7
O p in io n .............................................................................................................................................................................................. 7
Bas is for Opinion ..................................................................................... ..................................................................................... 7
Em phasis of M atter in the Financi al Statem ent t............................................................................................................ 8
Go ing Concern ................................................................................................................................................................................ 8
Responsibilities of Management and Those Charged with Governance or other appropriate termsfor the Financial Statem ents ................................................................................................................................................... 8
Auditor's Responsibilities for the Audit of the Financial Statem ents...............................................................8
E. Mnageent ecomendaion1
EXECUTIVE SUMMARY
REPUBLIC OF TURKEYMINISTRY OF TREASURY AND FINANCE
Board of Treasury Controllers
EXECUTIVE SUMMARY
A. Project SummaryThe Loan Agreement for "Renewable Energy Integration Project No 83710-TR" has beensigned between the International Bank for Reconstruction and Development, acting in itscapacity as an implementing entity of the Clean Technology Fund (CTF) and TurkishElectricity Transmission Company on 10 July 2014.
The objective of the Project is to assist the Republic of Turkey in meeting its increasedpower demand by strengthening the transmission system and facilitating large-scalerenewable energy generation.
The project consists of the following parts:
1- Development of transmission infrastructure: Construction and equipping ofhighly digitalized substations, namely Can Basin 380 kV, Izmir Basin 380 kV, Vize Basin380 kV substations and any other substations agreed with the Bank, together withassociated grid connection structures for evacuation of wind power in the SelectedProvinces.
2- Smart-grid investments: Carry out investments that enable the Borrower tomonitor the transmission grid network status in real-time and to operate the entirenetwork reliably and securely, including:
(a) Upgrading of the hardware and software of the existing Supervisory Control andData Acquisition ("SCADA"] system at National Control Center, the Emergency NationalControl Center and nine Regional Control Centers and the addition of a Renewable EnergyResource ("RER") Operator Desk on the SCADA system.
(b) Installation of Remote Terminal Units (RTU) in substations and power plants tofacilitate acquisition of real-time transmission network data.
(c) Installation of digital protection relays in the power grid to accelerate faultclearing and minimize network disturbances and outage area.
(d) Installation of shunt reactors in the bulk-transmission network to control loadflow and to secure appropriate system voltage.
3- Lapseki-Sutluce submarine power cable: Construction of a second double-
circuit submarine cable across the Dardanelles Strait.
4- Strengthening of transmission networks: Carry out investments to
3
REPUBLIC OF TURKEYMINISTRY OF TREASURY AND FINANCE
Board of T'reasury Controllers
strengthen the transmission networks, including:
(a) Construction of an underground cable to connect the Yeni Ambarli substation tothe Yeni Bosna substation.
(b) Construction of four [4) 380/154/33 kV substations and related facilities in theprovince of Istanbul, Antalya and Urgup.
(c) Construction of four (4) 154/33 kV substations and related facilities in theprovinces Istanbul and Antalya.
(d) Construction of four (4] 154 kV underground cables in the provinces of Istanbul
and lzmir.
Through the Loan Agreement dated 10 July 2014, a loan of 217.600.000 Euro is envisagedto be used by Turkish Electricity Transmission Company within the framework of the"Renewable Energy Integration Project". As of 31.12.2018, Turkish ElectricityTransmission Company has used an amount of 156.758.621,30 Euro and an amount of60.841.378,70 Euro has not been used yet. Turkish Electricity Transmission Company hasused an amount of 42.537.458,90 Euro from World Bank sources between 01.01.2018 and31.12.2018.
B. Objectives of AuditThe objectives of our audit are;
a) To give an opinion on whether the financial statements, prepared as of December
31, 2018 present fairly in all material respects the financial position of the Project inaccordance with the cash receipts and disbursements basis of accounting,
b) To determine, as of December 31, 2018, whether the Turkish Electricity
Transmission Company has complied, in all material respects, with the rules andprocedures of the Loan Agreement,
c) To examine whether adequate supporting documentation has been maintained tosupport claims to the World Bank for reimbursements of expenditures incurred withrespect to Statement of Expenditures and evaluate eligibility of these expenditures for
financing under the World Bank Loan Agreement.
C. Scope of AuditWe have performed an audit of financial statements of the project as of December 31, 2018and for the year then ended in accordance with the cash receipts and disbursements basis
4
REPUBLIC OF TURKEY11 MINISTRY OF TREASURY AND FINANCEBoard of Treasury Controllers
of accounting. We have also performed a compliance audit on whether Project activities are
in line with the Loan Agreement and related World Bank Guidelines.
Our audit was conducted in accordance with the International Standards on Auditing
published by International Federation of Accountants and related World Bank guidelines.
There was no limitation in our scope for the Project's audit.
D. Audit Results
For the financial statements of the project; our audit resulted with an unqualified opinion.
In addition, as of December 31, 2018, Turkish Electricity Transmission Company hascomplied, in all material respects, with the rules and procedures of the Loan Agreement.
In our audit period, there was not any disbursement under the Statement of Expenditures
(SOE).
E. Management Recommendation
A management letter, dated June 18, 2019, to the attention of the Turkish ElectricityTransmission Company was issued separately from this report. The objective of thisManagement Letter is to enable the auditors to communicate appropriately to thosecharged with governance and management deficiencies in internal control that the auditorshave identified during the audit and that, in the auditors' professional judgment, are ofsufficient importance to merit their respective attentions. For this purpose, ourrecommendations in order of priorities are attached to the Letter.
5
INDEPENDENT AUDIT REPORT'S & FINANCIALSTATEMENTS OF THE PROJECT
REPUBLIC OF TURKEYMINISTRY OF TREASURY AND FINANCE
Board of Treasury Controllers
INDEPENDENT AUDITOR'S REPORT
TO TURKISH ELECTRICITY TRANSMISSION COMPANY
Opinion
We have audited the Statement of Sources and Uses of Funds, Statement of Cumulative
Investments and Statement of Special Account of the Renewable Energy Integration Projectas of December 31, 2018, and for the period then ended, and a summary of significant
accounting policies and other explanatory information. The financial statements have been
prepared by Turkish Electricity Transmission Company based on financial reporting
provisions of the Loan Agreement Numbered 83710-TR.
In our opinion;
a) The accompanying Statement of Sources and Uses of Funds, Statement of Cumulative
Investments and Statement of Special Account present fairly, in all material respects, thefinancial position and cash flows of the Renewable Energy Integration Project as of
December 31, 2018 and for the period then ended in accordance with the provisions of the
Loan Agreement Numbered 83710-TR.
b) Turkish Electricity Transmission Company, as of December 31, 2018 has complied with,
in all material respects, the requirements of the Loan Agreement Numbered 83710-TR.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs).
Our responsibilities under those standards are further described in the "Auditor'sResponsibilities for the Audit of the Financial Statements" section of this report. We are
independent of the Turkish Electricity Transmission Company within the meaning of "IFACCode of Ethics for Professional Accountants" ethical requirements and have fulfilled our
other responsibilities under those ethical requirements. We believe that the audit evidence
we have obtained is sufficient and appropriate to provide a basis for our opinion.
7
REPUBLIC OF TURKEYMINISTRY OF TREASURY AND FINANCE
Board of Treasury Controllers
Emphasis of Matter in the Financial Statement
Without modifying our opinion, we draw attention to Note 2 to the financial statements,which describe the basis of accounting. The financial statements are prepared to assistTurkish Electricity Transmission Company to comply with the financial reportingprovisions of the contract referred to above. As a result, the financial statements may notbe suitable for another purpose.
Going Concern
The Projects financial statements have not been prepared using the going concern basis ofaccounting. The project will not be finished on June 30, 2019. It has been requested that theloan completion date is revised as March 31, 2021.
Responsibilities of Management and Those Charged with Governance or otherappropriate terms for the Financial Statements
Turkish Electricity Transmission Company is responsible for the preparation and fairpresentation of these financial statements in accordance with Loan Agreement Numbered83710-TR, and for such internal control as management determines is necessary to enablethe preparation of financial statements that are free from material misstatement, whetherdue to fraud or error.
Those charged with governance are responsible for overseeing the Turkish ElectricityTransmission Company's financial reporting process.
Auditor's Responsibilities for the Audit of the Financial Statements
The objectives of our audit are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement, whether due to fraud or error,and to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance, but is not a guarantee that an audit conducted in accordance with ISAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if, individually or in the aggregate, they couldreasonably be expected to influence the economic decisions of users taken on the basis ofthese financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgment andmaintain professional skepticism throughout the planning and performance of the audit.We also:
* Identify and assess the risks of material misstatement of the financial statements,whether due to fraud or error, design and perform audit procedures responsive to those
8
REPUBLIC OF TURKEYMINISTRY OF TREASURY AND FINANCE
Board of Treasury Controllers
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 higherthan for one resulting from error, as fraud may involve collusion, forgery, intentionalomissions, misrepresentations, or the override of internal control.
* Obtain an understanding of internal control relevant to the audit in order to designaudit procedures that are appropriate in the circumstances, but not for the purpose ofexpressing an opinion on the effectiveness of the entity's internal control.
* Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.
* Evaluate the overall presentation, structure and content of the financial statements,including the disclosures, and whether the financial statements represent the underlyingtransactions and events in a manner that achieves fair presentation.
We are required to communicate with those charged with governance regarding, amongother matters, the planned scope and timing of the audit and significant audit findings,including any significant deficiencies in internal control that we identify during our audit.
We are also required to provide those charged with governance with a statement that wehave complied with relevant ethical requirements regarding independence, and tocommunicate with them all relationships and other matters that may reasonably bethou t to bear on our independence, and where applicable, related safeguards.
Ahmet TUTActing Chairman ofBoard of Treasury Controllers
Akif Bllent BOYACIOGLU(Audit Partner)Vice F"rm an
Bilge KMEN Mustafa Emre BAYKALSenior Treasury Controller Treasury ControllerDate: June 18, 2019Address: Ministry of Treasury and FinanceBoard of Treasury Controllers06510, Emek, ANKARA/TORKIYE
9
TURKISH ELECTICITY TRANSMISSION CO.83710-TR (RENEWABLE ENERGY INTEGRATION PROJECT)
Statement of Sources and Uses of FundsAs of December 31, 2018 and For The Year Then Ended
(EURO)
Actual PAD Planned VarianceNotes YTD Cumulative YTD Cumulative YTD Cumulative
I-Sources of FundsA- Government Contributions 8 974,957,30 26.436.343,45 0,00 0,00 0,00 0,00
1- General Budget 8.975.529,99 28.437.987,70 0,00 0,00 0,00 0,002- Interest Income (-) 6 572,69 1.644,25 0,00 0,00 0.00 0,00
B- IBRD Loans 42.537.458,90 156.758.621,30 0,00 0.00 0,00 0,001- Direct Payments 263.433,50 40,197.710,18 0,00 0,00 0,00 0,002- Special Account 42.274.025,40 116.560.911,12 0,00 0,00 0,00 0,00
a) Advance 34.145.025,40 79,898.790,09 0,00 0.00 0,00 0,00b) SOE Procedures 0,00 0,00 0.00 0,00 0,00 0,00c) Summary Sheet 8.129.000,00 36,662.121,03 0,00 0,00 0,00 0,00
C- Refunds to Special Accounts 0,00 0,00 0,00 0,00 0,00 0,00D- Net Interest Income 6 572,69 1,644.25 0,00 0,00 0,00 0,00E- Foreign Exchange Gains 7 206.319,03 41.901,80 000 0,00 0,00 0,00
Total Sources of Funds 51.719.307,92 185.648.510,80 0,00 0,00 0,00 0,00
fl- Uses of FundsA- Direct Project Expenses1-Development of transmission infrastructure 9.329.895,48 10.997.322,90 0,00 29.343.503,47 0,00 18.346.180,57
VIZE HAVZA Substation 3.702.321,74 4.332.486,09 0,00 8.593.995,00 0,00 4,261.508,92IZMIR HAVZA Substation 1.197.536,84 1.653.149,91 0,00 9.116.508,47 0,00 7.463.358,56QAN Substation 4430.036,91 5.011.686,91 0,00 11.633.000,00 0,00 6.621.313,10
2-Smart-grid investments 1.127.387,25 11.157.126,91 0,00 26.795.321,20 0,00 15.638.194,29SCADA/EMS 8 429.748,75 3.112.144,11 0,00 6.920.171,20 0,00 3.808.027,092015-1D/11 a 30.140,00 5.841.134,30 0,00 12.509.900,00 0.00 6.668.765,70RTU 323,433,50 521.283,50 0,00 3.995.000,00 0,00 3.473.716,50Numerical Protection Relay 344.065,00 1.682.565,00 0,00 3.370.250,00 0,00 1.687.685,00
3-Lapseki 2-Sutluce 2 submarine power cable 0,00 69.025.912,98 0,00 58.577.490,00 0,00 -10.448.422,98Lapseki 2-SUtl0ce 2 Submarine Cable 0,00 69.025.912,98 0,00 58.577.490,00 0,00 -10.448.422,98
4-Strengthening of transmission networks 49.390.084,26 93.197.374,60 0,00 125.893.185,06 0,00 32.695.810,56Yeniambarli-Yenibosna Underground Cable 576.018,56 15A27221,77 0,00 12.037.931,35 0.00 -3.389.290,42Hadimkay OSB GIS Substation 22.403.737,20 30.380.252,63 0,00 25.860.149,12 0,00 -4.520.103,51K.Bakkalkby-Kadik6y Underground Cable 40,021,34 7.392.349,94 0,00 6.717.189,14 0,00 -675,160,80Yakuplu GIS-Ambarli DGKQS Underground Cal 1.360.271,66 5.712.509,63 0,00 4.992,421,00 0.00 -720.088,63Yakuplu GIS Substation 5.884.650,03 8.777.441,15 0,00 6.581.117,09 0,00 -198.324,06Omraniye GIS-Dudullu Metro GIS-Dudulku Subs 1.144.056,73 9.165.258,29 0,00 8.551.950,13 0,00 -613.308,16Selguk GIS Substation 2.885.357,87 3.248.370,22 0,00 3.665.732,38 0,00 419.362,14KarabaoIar-Buca Underground Cable 5.712.970,08 5.712.970,08 0,00 7,372.780,00 0,00 1.659.809,92Gbksu GIS Substation 916.849,61 918.849,61 0,00 4.977.786,91 0,00 4.060.937,30Manavgat Substation 3 950.471,40 3.950.471,40 0,00 12.440.000,00 0,00 8.489.528,60Atl§alani-Aksaray Underground Cable 1.923.221,46 1.923.221,46 0,00 7.158.105,00 0,00 5.234,883,54Org0p Substation 2.592.458,32 2.592.458,32 0,00 25.538.022,96 0,00 22.945.564,64
Sub-total 59.847.366,99 184,377.737,29 0,00 240.609.499,73 0,00 56,231.762,44
B- Indirect Project Expenses1-Front and Fee 0,00 544.000,00 0,00 0,00 0.00 -544.000,002-Loan Fee o,00 239360,00 0.00 0,00 0,00 -239.360,003-Foreign Exchange Loses 7 89.976,42 266.410,40 0,00 0,00 0,00 -266,410,40Sub-total 89.976,42 1.049.770,40 0,00 0,00 0,00 -1.049.770,40
Total Project Investments 69.937.343,40 185.427.507,68 0,00 240.609.499,73 0,00 55.181.992,05
Opening Balance 8.439.038,60Closing Balance 4 221.003,12 221.003,12
Mu AG1i v Z
TURKISH ELECTICITY TRANSMISSION CO.83710-TR (RENEWABLE ENERGY INTEGRATION PROJECT)
STATEMENT OF CUMULATIVE INVESTMENTSAs of December 31, 2018 and For The Year Then Ended
(EURO)
Actual PAD Planned Variance
A- DIRECT PROJECT COSTS YTD cumulative YTD Cumulative YTO Cumulative
1-Development of transmission infrastructure 9.329.895,48 10.997.322,90 0,00 29.343.503,47 0,00 27.676,076,05
VIZE HAVZA Substation 3.702.321,74 4.332.486,09 0,00 8.593.995,00 0,00 7.963,830,65
IZMIR HAVZA Substation 1.197.536,84 1.653.149,91 0,00 9.116.508,47 0,00 8.660.895,40
QAN Substation 4.430.036.91 5.011.686,91 0,00 11.633.000,00 0,00 11.051.350,00
2-Smart-grid investments 1.127.387,25 11.157.126,91 0,00 26.118.071,20 0,00 15.628.442,79
SCADA/EMS 429.748,75 3.112.144,11 0,00 6.920.171,20 0,00 3.808.027,09
2015-ISD/1 1 30.140,00 5.841.134,30 0,00 12.509.900,00 0,00 6.668.765,70
RTU 323.433,50 521.283,50 0,00 3.995.000,00 0,00 3.797,150,00
Numerical Protection Relay 344.065,00 1.682.565,00 0,00 2.693.000,00 0,00 1.354.500,00
'I-Lapseki 2-Sutluce 2 submarine power cable 0,00 69.025.912,98 0,00 58.577.490,00 0,00 -10.448.422,98
Lapseki 2-SOtlOce 2 Submarine Cable 0,00 69.025.912,98 0,00 58.577.490,00 0,00 -10.448.422,98
4-Strengthening of transmission networks 49.390.084,26 93.197.374,50 0,00 125.893.185,06 0,00 32.695.810,56
Yeniambarli-Yenibosna Underground Cable 576.018,56 15.427.221,77 0,00 12.037.931,35 0,00 -3.389.290,42
Hadimkby OSB GIS Substation 22.403.737,20 30.380.252,63 0,00 25.860.149,12 0,00 -4.520.103,51
K.Bakkalk6y-Kadikoy Underground Cable 40.021,34 7.392.349,94 0,00 6.717.189,14 0,00 -675.160,80
Yakuplu GIS-Ambarli DGKQS Underground C 1.360.271,66 5.712.509,63 0,00 4.992.421,00 0,00 -720.088,63
Yakuplu GIS Substation 5.884.650,03 6.777.441,15 0,00 6.581.117,09 0,00 -196.324,06
Omraniye GIS-Dudullu Metro GIS-Dudullu Su 1.144.056,73 9.165.258,29 0,00 8.551.950,13 0,00 -613.308,16
Sequk GIS Substation 2.885.357,87 3.246.370,22 0,00 3.665.732,36 0,00 419.362,14
Karaba§lar-Buca Underground Cable 5.712.970,08 5.712.970,08 0,00 7.372.780,00 0,00 1.659.809,92
G6ksu GIS Substation 916.849,61 916.849,61 0,00 4.977.786,91 0,00 4.060.937.30
Manavgat Substation 3.950.471,40 3.950.471,40 0,00 12.440.000,00 0,00 8.489.528.60
Ati§alani-Aksaray Underground Cable 1.923.221,46 1.923.221,46 0,00 7.158.105,00 0,00 5.234.883,54
Orgop Substation 2.592.458,32 2.592.458,32 0,00 25.538.022,96 0,00 22.945.564,64
Sub-Total 59.847.366,99 184.377.737,29 0,00 240.609.499,73 0,00 56.231.762,44
TOTAL DIRECT PROJECT COSTS 59.847.366,99 184.377.737,29 0,00 240.609.499,73 0,00 56.231.762,44
'DIRECT PROJECT COSTS
1-Front and Fee 0,00 544.000,00 0,00 0,00 0,00 -544.000,00
2-Loan Fee 0,00 239.360,00 0,00 0,00 0,00 -239.360,00
3-Foreign Exchange Loses (net) 89.976,42 266.410,40 0,00 0,00 0,00 -266.410,40
TOTAL INDIRECT PROJECT COSTS 89.976,42 1.049.770,40 0,00 D,00 0100 -1.049.770,40
TOTAL PROJECT INVESMENTS 59.937.343,40 185.427.507,68 0,00 240.609.499,73 0,00 55.181.992,05
TEiASRENEWABLE ENERGY INTEGRATION PROJECT
8371 0-TRSPECIAL ACCOUNT STATEMENT
ACC.NO: 58000157AT HALK BANK
For The Year Ended December 31, 2018(EURO)
NotesOpening Balance 8.439.038,60
Reimbursement to SA 42.274.025,40a) Advance 34.145.025,40b) SOE Procedure 0,00c) Summary Sheet 8.129.000,00
Refunds to SA 0,00Intrest Income (net) 6 572,69
Available Funds 50.713.636,69
Payments made for Expenditures 50.492.060,88
Commisions 0,00
Transfer to the general budget 6 572,69
Service charges for the account 0,00
Total Project Investments 50.492.633,57
Closing Balance 4 221.003,12
AN0(
GENERAL MANAGEMENT OFTURKISH ELECTRICITY TRANSMISSION COMPANY
"RENEWABLE ENERGY INTEGRATION PROJECT LOAN NO 83710-TR"NOTES TO PROJECT FINANCIAL STATEMENTS AS OF THE END OF THE FISCAL
YEAR 31.12.2018
1. THE OBJECTIVES AND DESCRIPTION OF THE PROJECT
The Loan Agreement for "Renewable Energy Integration Project No 83710-TR" has beensigned between the International Bank for Reconstruction and Development and Tiirkiye Elektrikl1etim A.$. (TEIA$) on 10 July 2014.
The objective of the Project is to assist the Republic of Turkey in meeting its increased( power demand by strengthening the transmission system and facilitating large-scale renewable
energy generation.
The project consists of the following parts:
1- Development of transmission infrastructure; Construction and equipping of highlydigitalized substations, namely Can Basin 380 kV, lzmir Basin 380 kV, Vize Basin 380 kVsubstations and any other substations agreed with the Bank, together with associated gridconnection structures for evacuation of wind power in the Selected Provinces.
2- Smart-grid investments; Carry out investments that enable the Borrower to monitor thetransmission grid network status in real-time and to operate the entire network reliably andsecurely, including:
(a) Upgrading of the hardware and software of the existing Supervisory Control and DataAcquisition ("SCADA") system at National Control Center, the Emergency National ControlCenter and nine Regional Control Centers and the addition of a Renewable Energy Resource("RER") Operator Desk on the SCADA system.
(b) Installation of Remote Terminal Units (RTU) in substations and power plants tofacilitate acquisition of real-time transmission network data.
(c) Installation of digital protection relays in the power grid to accelerate fault clearing andminimize network disturbances and outage area.
(d) Installation of shunt reactors in the bulk-transmission network to control load flow andto secure appropriate system voltage.
3- Lapseki 2-Sutluce 2 submarine power cable; Construction of a second double-circuitsubmarine cable across the Dardanelles Strait.
4- Strengthening of transmission networks; Carry out investments to strengthen thetransmission networks, including:
(a) Construction of an underground cable to connect the YeniAmbarli substation to theYeniBosna substation.
(b) Construction of four (4) 380/154/33 kV substations and related facilitiesin the province ofIstanbul, Antalya and Urgup.
(c) Construction of four (4) 154/33 kV substations and related facilities in the provinces Istanbuland Antalya.
1
(d) Construction of four (4) 154 kV underground cablesin the provinces of Istanbul and Izmir.
Through the Loan Agreement dated 10 July 2014, a loan of 217.600.000 Euro isenvisaged to be used by TEIAS within the framework of the "Renewable Energy IntegrationProject". As of31.12.2018, TEIAS has used an amount of 156.758.621,30 Euro and an amount of60.841.378,70 Euro has not been used yet. TEIAS has used an amount of 42.537.458,90 Eurofrom World Bank sources between 0 1.01.2018 and 3 1.12.2018.
As of 31.12.2018, some 116.560.911,12 Euro out of the total loan has been used throughthe Special Account and some 40.197.710,18 Euro has been used through DirectPayment/Reimbursement. 544.000 Euro as the Front-end Fee and 239.360 Euro as loan payablehave been paid from own funds.
2. MAIN ACCOUNTING POLICIES
In TEIAS, a separate accounting system has not been established for the World Bankprojects. TEIAS obtains a number of loans from the Bank, and other international organizations,by which it utilized a substantial amount of funds at total.
Financial statements of the project has been established according to the accountingprinciples based on cash collection and payment.
3. LIMITATIONS ON THE USE THE FUNDS AND OTHER ENTITIES
In accordance with the Loan Agreement between the Turkish Government and the WorldBank, the use of the funds in the Special Account is limited to the project objectives. Projectfunds left in the Account at the end of the project will be returned to the World Bank.
4. CASH BALANCE AS OF 31 DECEMBER 2018
The cash balance in Euro as of 31 December 2018 is as follows:
Loan Funds Counter Part TotalFunds
Special AccountSpecil Acount221.003,12 0,00 221.003,12(Halkbank Ankara Corporate Branch)Fixed Funds 0,00 0,00 0,00Checking Accounts (Local Bank 0,00 0,00 0,00Account)
Total 221.003,12 0,00 221.003,12
5. AMOUNTS PLANNED IN PAD
The cumulative amounts for the financing of TEIAS projects under REIP (837 10-TR) arenot included in PAD, however the project amounts in the Table of Sources and Utilization ofFunds have been taken from the relevant Departments in TEIAS.
2
Ar-1_
6. INTEREST INCOME
The interest is charged by Halk Bank to the Special Account at Ankara Corporate Branch
of Halkbank. Since the net interest of 572,69 Euro earned which was acquired from TEIAS's
Special Account belonging to year 2017, was accrued on 08.01.2018, it is shown in the Table of
Sources and Utilization of Funds belonging to year 2018 and the beginning of 2018, mentioned
interest income has been transferred to our running account in the same Bank with the
instructions of our Company. However, since the interest income belonging to year 2018 wasaccrued on 07.01.2019, it hasn't shown in the current period. Those gains are not used for the
Project's purposes, they are used to finance ordinary business activities of TEIAS and accountedin the accounting system of TEIAS.
7. EXCHANGE RATE
The currency of the credit no. 83710-TR is Euro. However contracts for projects involveone or more currency. Therefore, payments are made the currency specified in the contract. Dueto the time and parity difference between invoice amounts and payments dates may occurfavorable or unfavorable foreign exchange gain or loss. Related issues has been given a place inthe Statement of Sources and Uses of Funds.
8. UNDER DISBURSEMENT
The project "2015-!$D/1 1 reference Shunt Reactor Supply" of 2.390.408,75 Euro and"SCADA/EMS System Upgrade" of 38.551,19 Euro were made under payment under 837 10-TR.Paying the invoices at %100 for these projects under 83710-TR until providing the disbursementequality under and over payment between 83710-TR and 16958-TR was found appropriate byWorld Bank. In 2017, the inequality was eliminated in the project "SCADA/EMS SystemUpgrade". As of 31.12.2018, 237.701,10 Euro from the project "2015-ISD/11 reference ShuntReactor Supply" has remained under disbursement from 83710-TR.
04k .AA -
3V