World Bank Document

Audit of Project Financial Statements 
Due date 
Project Financial Statements 
The Project Financial Statements include Project Balance Sheet, Sources and Uses of 
Funds, Uses of Funds by project activities, Statement of Expenditures Withdrawal 
Schedule, Designated Account Statement, Notes to the financial statements, and 
Reconciliation Statement. 
No Entity audit (i.e. audit of UZAIFSA) will be required under the project.
Within 6 months of the end 
of each fiscal year and also 
at the closing of the project
16. 
Disbursement. UZAIFSA will be in charge of planning and managing project disbursements, as well as preparation 
and submission of withdrawal applications to WB. For this purpose, UZAIFSA shall have additional account created in the 
WB Client Connection platform. The details, such as the ceiling for the Designated Account, would be provided in the 
Disbursement and Financial Information Letter/Disbursement Letter. The project would use standard disbursement 
methods, including Advances (Designated Account), Direct payments, Reimbursements and Special Commitments. A 
designated account will be opened and maintained in the commercial bank/financial institution acceptable to WB for the 
Credit/Loan and the project related funds flows and payments of eligible expenditures and will not be pooled with other 
funds not related to Credit/Loan and/or Project. Eligible project expenditures, consisting of regular goods, consulting 
services, non-consulting services, training and operating costs, would be documented to WB using Statements of 
Expenditure and full documentation. 
Procurement 
17. 
Procurement risk assessment. Procurement capacity assessment was performed by WB using the Procurement 
Risk Assessment and Management System (P-RAMS). The overall Procurement risk is assessed as Moderate. The key risks 
concerning procurement for implementation of the project include generic and systemic weaknesses in the areas of: (i) 
weak implementation capacity in PIUs and inefficient procurement processes; (ii) delays in procurement processes 
resulting from the complex and time-consuming Government internal approval of procurement decisions; (iii) poor 
capacity, practice and tools for efficient contract management and monitoring; and (iv) procurement malpractices and 
weak integrity safeguards particularly in the water sector. Preliminary Risk mitigation measures are: (i) strengthen and 
promote consolidation of overall procurement capacity of the implementing entities and particularly for technical 
specifications preparation and efficiency of managing procurement processes; (ii) agree with Borrower for the hiring of 
a procurement consultant to manage the procurement processes for high-value contracts for Works. The terms of 
reference for key consulting services will be prepared in advance and procurement processes will be launched early, to 
ensure immediate start-up of such activities soon as the project becomes effective.
The consultant will carry out the 
detailed engineering designs, prepare technical specifications, cost estimates, procurement documentation, and other 
associated support to enable timely tendering and contract award. During construction, the consultant will act as the 
Engineer (employers’ representative) under FIDIC-based contract and carry out supervision and contract administration 
procedures with reference to quality, cost and time controls, to support implementation of the infrastructure activities. 
The Consultant will also be tasked with management of environmental and social safeguards procedures to help ensuring 

---