Ningbo Municipal Audit Office of the People's Republic of China

Audit Report

$k h%# [2016] 59 -#

NINGBO AUDIT REPORT [2016 D NO.59

Project Name: Ningbo Municipal Solid Waste Minimization and Recycling

Project Financed by the World Bank

W : 8250-CN

Loan No.: 8250-CN

Project Entity: World Bank Loan Project Management Office of Ningbo

S-, 4 : 2015

Accounting Year: 2015

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目 录ColltentS

一、审计师意见．...... ．一 ，,............. ．一 ，,,,, ，二，,........ ．⋯⋯，,.，⋯ ，二I

1 .Auditor&5 Opinion.... ．⋯ ⋯ ，., ．⋯ ，，二，.... ．⋯ ⋯ ‘,.,.,. ，二，，⋯，.... ．⋯ ⋯ ，⋯ ，.,，二3

二、财务报表及财务报表附注．⋯⋯，.,.,.,. ．⋯，,,..... ．⋯⋯，.,.．⋯，.....．⋯⋯6

11 .Financial Statements and Notes to the Financial Statements ．⋯，.,.... ．⋯⋯ 6

（一）资金平衡表．.．⋯⋯‘二，.,,,.．⋯，.,...... ．⋯⋯＿⋯ ，．⋯，,，⋯⋯，.．⋯，⋯6

1 .Balance Sheet, ，二，二，,....... ．⋯ ⋯ ，.，二，,.,, ，二，..... ．⋯ ⋯ ，_，⋯ ，,．⋯ ，.．⋯ ⋯ ，6

（二）项目进度表．⋯“.,,,,, ，二，........... ．⋯⋯，.,.,,.,....... ．⋯⋯＿⋯，,.8

11.Sulnmary of Sources and Uses of Funds by Project Component...．⋯⋯，8

（三）贷款协定执行情况表．,.,.,.......... ．⋯⋯ ，.,,，二，.........．⋯⋯，,,.．⋯10

1 11.Statement of Implementation of Loan Agreement.,........... ．⋯ ⋯ ，,,,,10

（四）专用账户报表．,.......... ．⋯⋯＿,.,,，⋯⋯，......．⋯⋯ ，,.,.，⋯⋯，.．⋯11

iv.SpecialAccount Statement ．⋯ ⋯ ，二，⋯，.．⋯ ⋯ ‘.... ．一 ，⋯，.,.,.,... ．⋯⋯ 11

（五）会计报表附注．⋯，.,,，⋯⋯，....．⋯⋯，二，⋯，.,......... ．⋯⋯，,,.,.．⋯13

v.Notes to the Financial Statements ... ．⋯ ⋯ ，．⋯ ，,.,.,.,.,....... ．⋯ ⋯ ，_.,, ，工6

三、审计发现的问题及建议．⋯‘.．⋯⋯，_,.,,.,.,.......．⋯⋯，二，.，二，.,.,.．⋯‘.]9

111.Audit Findings and Recommendations ．一 ，,,.,. ．⋯，..... ．⋯⋯，二 ，.,．⋯⋯20

一、审计师意见

审计师意见

宁波市世界银行贷款项目管理办公室：

我们审计了世界银行贷款宁波城镇生活废弃物收集循环利用项目20巧年 12月 31日的资金平衡表及截至该日同年度的项目进度表、贷款协定执行情况表和专用账户报表等特定目的财务报表及财务报表附注 （第 6页至第 铭页）o

（一）项目执行单位及宁波市财政局对财务报表的责任

簖制上述财务报表中的资金平衡表、项目进度表及贷款协定执行情况表是你办的责任，簖制专一用账户报表是宁波市财政局的责任，这种责任包括：

1，按照中国的会计准则、会计制度和本项目贷款协定的要求编制项目财务报表，并佼其实现公允反映；

2．设计、执行和维护必要的内部控制，以使项目财务报表不存在由于舞弊或错误而导致的重大错报。

（二）审计责任

我们的责任是在执行审计工作的基础上对财务报表发表审计意见。我们按照中国国家审计准则和国际审计准则的规定执行了审计工作，上述准则要求我们遵守审计职业要求，计划和执行审计工作以对项目财务报表是否不存在重大错报获取合理保证。为获取有关财务报表金额和披露信息的有关证据，我们实施了必要的

审计程序。我们运用职业判断选择审计程序，这些程序包括对由于舞弊或错误导致的财务报表重大错报风险的评估。在进行风险评估时，为了设计

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恰当的审计程序，我们考虑了与财务报表相关的内部控制，但目的并非对内部控制的有效性发表意见。审计工作还包括评价所选用会计政策的恰当性和作出会计估计的合理性，以及评价财务报表的总体列报。我们相信，我们获取的审计证据是适当的、充分的，为发表审计意见

提供了基础。

（三）审计意见

我们认为，第一段所列财务报表在所有重大方面按照中国的会计准则、会计制度和本项目贷款协定的要求编制，公允反映了宁波城镇生活废弃物收集循环利用项目2015年 12月 31日的财务状况及截至该日同年度的财务收支、项目执行和专用账户收支情况。

（四）其他事项

我们还审查了本期内由宁波市财政局报送给世界银行的第 NB3号提款申请书及所附资料。我们认为，这些资料均符合贷款协议的要求，可以作为申请提款的依据。

本审计师意见之后，共同构成审计报告的还有两项内容：财务报表及财务报表附注和审计发现的问题及建议。 ，一 、、

· 、 、、气 介宁谁币币浦

二么一六年六牙什三日

地址：中国宁波市江东区宁穿路 2。沮号 2号楼 7楼邮政簖码：31 5 066电话：86一0574一891 86079传真：86一0574一87279659

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1. Auditor's Opinion

Auditor's Opinion

To The World Bank Loan Proiect ManaRement Office of Ningbo

We have audited the special purpose financial statements (from page 6 to page18) of Ningbo Municipal Solid Waste Minimization and Recycling Projectfinanced by the World Bank, which comprise the Balance Sheet as of December3 1 2015, the Summary of Sources and Uses of Funds by Project Component,the Statement of Implementation of Loan Agreement and the Special AccountStatement for the year then ended, and Notes to the Financial Statements.

Project Entity and Ningbo Municipal Finance Bureau's Responsibility for theFinancial Statements

The preparation of the Balance Sheet, the Summary of Sources and Uses ofFunds by Project Component and the Statement of Implementation of LoanAgreement of the financial statements is the responsibility of your entity, whilethe preparation of the Special Account Statement is the responsibility of NingboMunicipal Finance Bureau, which includes:i. Preparing and fair presenting the accompanying financial statements 'naccordance with Chinese accounting standards and system, and therequirements of the project loan agreement;ii. Designing, implementing and maintaining necessary internal control toensure that the financial statements are free from material misstatement,whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to express an opinion on these financial statements basedon our audit. We conducted our audit in accordance with the GovernmentAuditing Standards of the People's Republic of China and InternationalStandards on Auditing. Those standards require that we comply with ethicalrequirements and plan and perform the audit to obtain reasonable assuranceabout whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about theamounts and disclosures in the financial statements. The procedures selected

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depend on the auditor's judgment, including the assessment of the risks ofmaterial misstatement of the financial statements, whether due to fraud or error.In making those risk assessments, the auditor considers internal control relevantto the entity's preparation and fair presentation of the financial statements inorder to design audit procedures that are appropriate in the circumstances, butnot for the purpose of expressing an opinion on the effectiveness of the entity'sinternal control. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of accounting estimates madeby management, as well as evaluating the overall presentation of the financialstatements.

We believe that the audit evidence we have obtained is appropriate andsufficient to provide a basis for our audit opinion.

Opinion

In our opinion, the financial statements identified in the first paragraph presentfairly, in all material respects, financial position of Ningbo Municipal SolidWaste Minimization and Recycling Project Financed by the World Bank as ofDecember 31, 2015, its financial receipts and disbursements, the projectimplementation and the receipts and disbursements of the special account forthe year then ended in accordance with Chinese accounting standards andsystem, and the requirements of the project loan agreement.

Other Matter

We also examined the withdrawal applications from No.NB3 and the attacheddocuments submitted to the World Bank during the period. In our opinion thosedocuments comply with requirements of the project loan agreement and canserve as basis for loan withdrawals.

The audit report consists of the Auditor's Opinion and two more partshereinafter: Financial Statements and Notes to the Financial Statements, AuditFindings and Recommendations.

Ningbo Municipal Audit Office of the People's Republic of China

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June 13, 2016Address: 7F, No.2 Building, No.2001, Ningchuan Road, Jiangdong District,Ningbo City, Zhejiang province, R.P. ChinaPostcode: 315066Tel: 86-0574-89186079Fax: 86-0574-87279659

The English translation is for the convenience of report users; Please take theChinese audit report as the only official version.

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II. Financial Statements and Notes to the Financial Statements

( -) *4$f**i. Balance Sheet

BALANCE SHEET2015 - 12 9 31 E

(As of December 31, 2015)

Project Name: Ningbo Municipal Solid Waste Minimization and Recycling Project financed by the World Bank

Prepared by: World Bank Loan Project Management Office of Ningbo Currency Unit: RMB Yuan

Apphiaton of Fund LiN Beginning Balance Ending Balane 1 o nd li e Balance Ending Ralance

Total Project Expenditures l 104,161,394.76 201,364,579.86 Total Project 28 200.538,846.48 330,422,968 39Appropriation Funds

Fxed Asses Transfered Prject Capital and Capital 29Surplus

Construction Expenditures 3to e DspoedIneluding: Glratisto be Ojs ose

Tota ftwee Loaný 4P C å 31 1 9,580,800.00 27,313,364.15Inyestments Transferred-out Total Pro ject Loan31 950800 273,645

Construction in Progress 5 104,161,394.76 201364,579.86 Total Project 32 19,580,800.o 27,313,364.15nvestment Loan

rý i iMý ýR b ýK 6 1 ,f 3 1QW800 733341Investment Loan Reecivable Foreign Loan 33 19,580 800.u0 27,313,36415

Ineluding: World Bank 7 - ,4Investment Loan Receivable neludrng DA

Appropiationof Investment 8 35 19580,800.00 27,313,364.15Loatn

9 41 :X t 1,9 -,trkIneluding :Appropriation of 9 - Teeknical 36

World Bank InvestmentLoan

LoaniCooperationkg 1,1 10

37Fqaiprnent Co- Financing

Including: Equipment Losses Il 12 38in Suspense Domestic Loan

Toa C n Bank 12 117,734,210.64 144,290,554.89 39Total Cash und Bank Other Loan

Cash in Bank 13 117,728,672.64 144,285,954,09 Appropriation of 40Cashin _-- InvesTnent Loan

4nlui: -tSýr1pi Aeou4K14 15,774,116.43 5,499,859.78 4[neludirg: Seci Account Including: World Bank Loan

Jå 0t ( To be continued)

6

Cash on Hand 15 4,600.80 Bond Fund 42

Total Prepaid and Rece735456.00 3504898.40 Construction Expendnures 431 : T-lik ead and Rit f l to be Offset

including: World Bank [ oan 17 - -IRlåa iab 44 2 51 L414.92 11,423..700.(,Interest Reecivable Ttal Paable-

World Bank Loan 4t I k ond an 4Commitment Fee Includig: Workd Bank 4j

Receivable Loan Interest Payable

World Bank Loan Service- 1 9 World Bank Loan 46Fee Receivable Commitment Fee

Pavable

Ms 0 47Marketable Secunnes 'World Bank LoanService Fee Payable

Total Fixed Assets Other Payables 48

-9 f ±- 491 t41 -4-

Fixed Assets, Cosi Appropnation of Fund

Less: Accumrulaied 23 -45Depreciation Retained Earnings

-k4 -4 2

Fixed Assets, Net

25 -i-Fixed Assets Pending Disposal

Fixed Assets Losses in 26 - -

Suspense

otal Apicato o27 222 63t,061,40 369,160,033.15 4 O 51 222,631,06140 369,160.033.15ital Application of Fund [otal Sources of Fund 6

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( - ) -RWO:tx

ii. Summary of Sources and Uses of Funds by Project Component

SUMMARY OF SOURCES AND USES OF FUNDSBY PROJECT COMPONENT 1

$ 2015 4 12 ) 31 H

(For the period ended December 31, 2015)

Project Name: Ningbo Municipal Solid Waste Minimization and Recycling Projeet financed by the World BankX lå -C kE: Tt $ tI YK R4 t !k J7" ffl_'t' z}ýt'",f Ž t 5 : kKi itPrepared by: World Bank Loan Project Management Office of Ningbo Currency Unit: RMB Yuan

*4A T,itCurrent Period Cunulative

Periodt ý.ti1 0t 14qtki hCurrent Period CurrentPeriod Period% life of PAL) Cu i uuine

Budget Aclual Comnpleted Actual Comnpleted

Total Sources of Funds 391,063,200.00 137,616,686.06 35 19 1,526,000,0000 357,736,332,54 23.44

InemationdlF1inancino 91,760,000.00 7732,56415 8.43 496,000,000.0i 27,313,364.15 5.51

IBl«D 91,760,000.00 7,732,564. 15 8.43 496,100.006 00 27,3! 3,364.15 5.51

Counterpart Fnancng 299,303,200.00 129,884,121.91 43.40 1,030,000,000.00 330,422,968 39 32.08

Poet A1 pia' (n F94 578,0000 129 884 21.91 66,75 910,000,000.00 330,422,968.39 36.31Pfrojeci AppIropu-alion Funds

2, - -1 4r Enterprise self-ruised 104,725,000.00 1 20,00000000

9?tto]&t† (kr0FWJr

Total Application of Funds (by Proeci 391,063,20.00 97,203185,10 24.86 1,526,000,000,00 20 1,364,579.86 13.20Component)

Municipal Solid Wasie Separation. 288,164.400.00 66,126,704.87 22.95 1,107.800.000.00 l35 .903,887.45 12 27Collection, Sorting and Transporlation

Ki.hen Waste Treatment 80,330,000.00 20,944,25396 2607 259500,000.00 46,768,333.53 18.02

Project Implementation Suppor 18208,800.00 9.036,237.56 19.63 150 000,000.00 13,033,796.27 8.69

Capacity Building and Projee! Managernent 4,360,000.00 1,095,98871 25.14 8,700,000.00 5,658,562 61 65.04Support

40,413,500 96 156,371,752.68[Diffeience

Change in Rceie 22,769,442.40 23,504,898.40

2. åäitKk t-,1,256 1,43706Change in Payables -8,9(2 285.69 -I1,423,700.6I

Change in Csh and Bank 26,556,344,25 144,290,554.894. -X

___(Other ____________

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iv. Special Account Statement

SPECIAL ACCOUNT STATEMENT

*kik -ý9 2015 4 12 ý 31 H

(For the period ended Deceniber 31, 2015

0 t fY: tý 11 iR Y ä ýÄ å & 4

t X ffi IT, f TM t ýýt f5jý Kl

Project Name: Ningbo Municipal Solid Waste Depository Bank: China Everbright BankMinimization and Recycliiig PrqJect Financed Ningbo Branch

by the World Bank 76801488000009243

q,rjk-!ý: 8250-CN Account No. : 76801488000009243

Loan No-8250-CN rý ýý #-

äý $ wý ifk07, Currency: USDPrepared by Någbo Municipal Financial

Bureau

Pari A-Account Aclj\,jty ffir ihe Currenl Period ÄJTLount

BC-MIär.-- Balance

,9 lip:

19 R 9' fflf 1,006,197 51loial Anrount 6eposited this Period by World Bank

t- 1ý fil 0, Ivk 0 ( tt ý, 4 Jli uk Jý, i15 ,ý- )1 otal Intei est Eårned this Period if D2osited in Special Account

# M -i- Å-t

Total Amoum Refunded this Period to Cover Ineiiiklý_tý.ýpendittires

4, ',J, :

Deduct:

t, k -t

folal Amount Witfidrawn ihis Period

411 A _* fl- Jý- 11,y ýd 10, 't, (t åRVoial Serviec Char es this Period if not Included in Above. Aa-nount Wähdraýý n

846,966.21

(ä-ý'ftTb be continue)

Part B-Account Reconcilation Amfiunt

Amnouit \dvanced bv World Bank 3.000 000 00

Deduct:

Total Amount Recovered bv World Bank

Outstanding Amount Advanced to the Spec al Account at the End of ths Per od 3.000 000.00

4. T]WPMè&End Iing Balance of Special Account 86962

Add:

5. J Bi {1I' 5Amottnt Claimed but not vet Credited at the End of this Period

Application No.

6 (7* 3 1 F †1 i 4i3.k W 2 15333.79Amnt WitDrawn btnoy amat the End of this Period

7. ýt -5,011 ýB 4 5 ý] 6 t-Cuttlative Service Chart.es (if not Incuded in hem 5 o 6)

Deduct:

Interest Earned (If included in Special Account)

9. P P t 3X ‡ 4O 4 o 3,000,000.00lotal Advance to the Special Account Accounted for at the End of this Period

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（五）会计报表附注

财务报表附注

1．项目概况世行贷款宁波市城镇生活废弃物收集循环利用示范项目贷款号为

8250一CN，项目发展目标是通过进行垃圾源头分类和循环利用帮助宁波市在所选定的区内增加生活废弃物回收利用的数量和比例。该项目由生活垃圾分类、收集、分拣和运输，厨余垃圾处理，项目实施支持，能力建设和项目管理支持四个子项组成。项目协定于2013年7月4 日签订，2013年9月3日生效，预期贷款关账

日期为2019年3月31日。项目计划总投资为人民币1 5.26亿元，其中世界银行贷款总额为8,0oo万美元。

2．财务报表编制范围本财务报表由宁波市生活垃圾分类管理中心（简称 “市分类中心”）有关

宁波市生活垃圾分类项目则一务报表、厨余垃圾处理项目财务报表及宁波市财政局专用账户报表合并而成。

3．主要会计政策3 .1 本项目会计核算执行 《世行贷款宁波城镇生活废弃物收集循环利用示

范项目财务管理暂行办法》。

3.2会计核算年度采用公历年制，即公历每年 1月 1日至 12月31日。

3 .3本项目会计核算以“权责发生制”作为记账原则，采用借贷复式记账法记账，以人民币为记账本位币。

3.4按照中国人民银行2015年 12月31日汇率，即USD卜人民币6.4936元。

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4．报表科目说明4.1在建工程20巧 年年末在建工程余额 201,364,579.86元，累计完成项目总计划的

13.20％。其中生活垃圾分类、收集、分拣和运输项目135,903,887,45元、累计完成项目总计划的 1227%；厨余垃圾处理项目46,768,333.53元，累计完成项目总计划的 18.02%；项目实施支持 13,033,7%,27元，累计完成项目总计划的8.69%；能力建设和项目管理支持 5,658,562.61元，累计完成项目总计划的65.04％。

4.2货币资金20巧年年末货币资金余额 144,290,554.89元，其中世行专用账户存款额

846,%6.21粎元，折合人民币5,499,859.78元。

4.3预付及应收款2015年年末预付及应收款余额23,504,898.40元。

4.4项目拨款20巧年年末项目拨款余额 330,422,968 .39元。其中（l ）市级配套资金即

宁波市则一政局拨至市分类中心，用于生活垃圾分类、收集、分拣和运输项目103,000,000.00元；用于厨余垃圾处理项目50,000,000.00元；(2）区级配套资金即海曙区财政局拨至海曙区子项目办 21,702,000.00元；江东区财政局拨至江东区子项目办 56,6 42,111.38元；江北区财政局拨至江北区子项目办41,50仪000.00元；勤州区财政局拨至勤州区子项目办27,640,2 17.24元；镇海区财政局拨至镇海区子项目办 12,850,000.00元；北仑区财政局拨至北仑区子项目办4,228,8 10.07元；东钱湖财政局拨至东钱湖子项目办 10,194,829.70元；高新区财政局拨至高新区子项目办2,665,000.00元。

4.5项目借款20 15年年末项目借款余额 4,206,197.51美元，折合人民币 27，引3,364,15

元，全部为国际复兴开发银行贷款额。

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截至20巧年 12月31日，累计提取世界银行贷款资金4,206,197.51美元，占贷款总额的5.26％。其中：货物和非咨询服务累计提款 l,006,197.51美元，占该类计划的4.40％。先征费累计提款200,000.00美元，占该类计划的1 00.00％。

4.6应付款2015年年末应付款余额 n,423,700,61元。

5．专用账户使用情况本 项 目专 用 账 户设 在 中 国 光 大银 行 宁 波 分 行 ，账 号 为

76801488000009243，币种为粎元。专用账户首次存款300万美元。20巧年期初2,577,899.40粎元，20巧年世界银行回补1,006,1 97.51美元，支付2,737,130,70粎元，年末余额 846,9 66.21美元。

6，其他需要说明的事项项目资金平衡表中国际复兴开发银行贷款期末数与期初数之差与贷款协

定执行情况表人民币本期提款数不一致是由于历年汇兑损益造成的。

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v. Notes to the Financial Statements

Notes to the Financial Statements

1. Project overviewThe Uan No. of Ningbo Municipal Solid Waste Minimization and Recycling Projectis 8250-CN. The project development objective is to assit selected districts in NingboMunicipality to increase the volume and proportion of municipal solid wasterecycled with processes for waste separation at source and recycling. The project Iscomposed of four components: Municipal Solid Waste Separation, Collection,Sorting and Transportation, Kitchen Waste Treatment, Project ImplementationSupport, Capacity Building and Project Management Support.The Project Agreement was signed on July 4, 2013 and came into effect onSeptember 3, 2013. The account of the project will be closed before March 31, 2019.The total 'investment of the project was RMB 1,526,000,000-00 yuan, including USD80,000,000.00.

2. Consolidation Scope of the Financial StatementsThese financial statements encompass the consolidated financial statements ofNingbo Domestic Solid Waste Separation Project Management Office (SYVTMO)for Ningbo Municipal Solid Waste Separation Project financial statement, KitchenWaste Treatment Project financial statement as well as the Special AccountStatement set in the Ningbo Municipal Finance Bureau.

3. Accounting Policies

3.1 The Financial Statements of the project were prepared according to therequirements of Interim Measures for Financial Management of Ningbo MunicipalSolid Waste Minimization and Recycling Project Financed by the World Bank.

3.2 In accounting practice, the Gregorian calendar year is adopted as the fiscal yearfrom January I to December 3 1.

3.3 The accrual basis and the debit/credit double entry bookkeeping method areadopted. RMB is used as the recording currency of bookkeeping.

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3.4 The exchange rate adopted in the financial statements was the exchange rate onDecember 31, 2015 of the People's Bank of China, which is USDI= RMB6.4936yuan.

4. Explanation of Subjects4.1 Construction in ProgressThe balance for construction in progress by the end of 2015 was RM-B201,364,579.86 yuan, which accounted for 13.20% of total investment plan,among which RMB 135,903,887.45 yuan was for Municipal Solid Waste Separation,Collection, Sorting and Transportation, which accounted for 12.27% of thecomponent's investment plan; RMB 46,768,333.53 yuan was for Kitchen WasteTreatment, which accounted for 18.02% of the component's investment plan; RMB13,033,796.27 yuan was for Project Implementation Support , which accounted for8.69% of the component's investment plan; and RMB 5,658,562.61 yuan was forCapacity Building and Project Management Support, which accounted for 65.04%of the component's investment plan.

4.2 Cash and BankOn December 31, 2015, the balance was RMB 144,290,554.89 yuan including USD846,966.21 in the Special Account of the World Bank, which equivalent to RMB5,499,859.78 yuan.

4.3 Prepaid and ReceivableThe balance of prepaid and receivable by the end of 2015 was RMB 23,504,898.40yuan.

4.4 Project Appropriation FundsThe project appropriation funds on December 31, 2015 was RMB 330,422,968.39yuan, including 1)RMB 103,000,000.00 yuan was the counterpart funds allocated toSWPMO by Ningbo Municipal Finance Bureau for Municipal Solid WasteSeparation, Collection, Sorting and Transportation Project; RMB 50,000,000.00 yuanwas for Kitchen Waste Treatment Project. 2)RMB 21,702,000.00 yuan was thecounterpart funds allocated to Haishu Sub-SWPMO by Haishu District FinanceBureau; RMB 56,642,111.38 yuan was the counterpart funds allocated to JiangdongSub-SWPMO by Jiangdong District Finance Bureau; RMB 41,500,000.00 yuan wasthe counterpart funds allocated to Jiangbei Sub-SWPMO by Jiangbei DistrictFinance Bureau; RMB 27,640,217.24 yuan was the counterpart funds allocated toYinzhou Sub-SWPMO by Yinzhou District Finance Bureau; RMB 12,850,000.00yuan was the counterpart funds allocated to Zhenhai Sub-SWPMO by Zhenhai

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District Finance Bureau; RMB 4,228,810.07 yuan was the counterpart fundsallocated to Beilun Sub-SWPMO by Beilun District Finance Bureau; RMB10,194,829.70 yuan was the counterpart funds allocated to Dongqian Lake TourismResort Sub-SWPMO by Dongqian Lake Tourism Resort Finance Bureau; RMB2,665,000.00 yuan was the counterpart funds allocated to the National Hi-tech ZoneSub-SWPMO by the National Hi-tech Zone District Finance Bureau.

4.5Project LoanBy the end of 2015 the project loan amount withdrawn from the World Bank wasUSD4,206,197.51, equivalent to RMB27,313,364.15yuan.As of December 31, 2015, accumulated USD 4,206,197.51 of grant had beenwithdrawn from the World Bank, accounting for 5.26% of the total grant. Amongthose grant, goods, non-consulting service took USD 1,006,197.51 accumulatively,accounting for 4.40% of the category plan, front-end fee took USD 200,000.00accumulatively, accounting for 100.00% of the category plan.

4.6 PayableThe balance on December 31, 2015 was RMB 11,423,700.61 yuan.

5. Special AccountThe Special Account of this project was set up in China Everbright Bank NingboBranch with account number of 76801488000009243 (Currency Unit: USD). Theinitial deposit of the Special Account was USD 3,000,000.00. The beginningbalance of 2015 was USD 2,577,899.40, the amount deposited in the year by theWorld Bank was USD 1,006,197.51 and the disbursement of the year was USD2,737,130.70. Hence, the ending balance of 2015 was USD 846,966.21.

6. Other Explanation for the Financial StatementsDue to the change of foreign exchange rate, there are discrepancies between thedifference of the beginning and ending balance of the IBRD loan in the BalanceSheet and Uses of Funds by Project Component and the amount of current year'swithdrawals (disclosed in RMB) in the Statement of Implementation of LoanAgreement.

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