Audited Project Financial Statements

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 Access to Information Policy and as agreed between ADB and the Ministry of Transport.

Project Number: 41444-013 Loan Number: 3317 - VIE Period covered: 01 January 2020 to 30 June 2020

Viet Nam: Second Northern Greater Mekong Subregion Transport Network Improvement Project – Additional Financing

Prepared by Thang Long Project Management Unit

For the Asian Development Bank Date received by ADB: 31 December 2020

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Project'Second Northern Grcater ilekong Sub-Region Transport Network Improyement(Addiuonal Fanancing)"

Audited Financial Statements

Under Loan Agreement No. 3317-VIE between the AsianDevelopment Bank and the Government of the SocialistRepublic of Vietnam

Period from 1 January 2020 to 30 June 2020

Project "Second Northern Greater ilekong Sub-Region Transpott iletworkImprovement (Additional Financing)"

Under Loan Agreement No, 3317-WE between the Asian Development funk and theGovernment of the Socialist Republic of Viebam

Contents

STATEMENT OF THE PROJECT MANAGEMENT UNIT.............. .........3

INDEPENDENT AUDITORS' REPORT......... ...............5

INDEPENDENT AUDIIORS' REPORT......... .....,,,....,,.7

BALANCE SHEET........... ...................9

SrATEMENTOFFUNDSANDEpENDrruRES.,............. ...............10

STATEMENT OF ADVANCE ACCOUNT...... ..............11

STATEMENT OF LOAN WTIHDRAWATS - ACCOUNT NO 1400206029593.............12

sI'ATEMENT OF BUDGET VERSUS ACTUAL EPENDTruRES ..........13

NOTES TO THE FINANCIAL STATEMENTS ....,.......,.14

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Project'Second Nort{rern Greater Mekong Sub-Region Transport NetworkImprcvement (Additional Financing)"

Under Loan Agreement No. 3317-WE between the Asian Development funk and theGovemment of the Socialrst Republic of Weham

STATEMENT OF THE PROJECT I.IANAGEMEilT UNIT

]h3n-g Long Project Management unit implemented the project "second Northern Greater Mekong

sub-Region Transport Network Improvement (Additional Financing),, (.the project ManagementUnif) and was responsible for the Financial Statements of the Projeci "second NortherricreaterMekong sub-Region Transport Network Improvement (Additional Financing),, f.the projecf) forperiod from I January 2020 to 30 June 2020.

- lnsraorlg approximately 45 km of National Highway No. 2r7 from cam Thuy district tro BaThuoc distric!

- &Jilding a new overpass bridge at Ha Trung district; and- Measuring to improve traffic safety.

The Project was carried out at the Ministry of rransport and Ministries, Deparunents, and provinceswhich were responsible for suFprojects gianted under the projecfs framewo*.

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\Project Management Unit

Members of the Project Management Unitperiod and up to the reporting date were:

responsible for the management of the project during the

Mr. Duong Viet RoanMr. Nguyen Van HuanMr. Tran Van Chien

Mr. Nguyen Doan Huy

Director of Thang Long project Management UnitVice Director of Thang Long project Management UnitHead of Finance and Accounting DepartmentAccountant

Audlbrs

The.accompanying Financial statemenb for period from I January 2o2o to 30 June 2020 have beenaudited by NDOA STT Co., Ltd.

The Proiect

The Project "second Northern Greater Mekong suFRegion Transport Network Improvement

lAdgiljgn_al Financin_g)" was impremented by the Ministry of rransport - the Government of the

socialist Republic of vietnam. The project was granted 6y the Asian Development Bank under LoanAgreement No. 3317-vIE dated 19 February 2016 with amounts equivalent to 50,440,000 spec;iD-rawing Rights C'SDR') and counterpart funds from the Govemment ofthe socijtist iepuutic otvietnam for the years from 2016 to 2020. on 2g May 2019, the project was approved to extend until30 June 2020.

]h9 objg{jve of the Project was.to further improve the efficiency of transportation capacity ofNational Highway No. 217 in vietnam, a part of the project area rinking Laos and vietnam.'

The Project included the following contents:

3

Project"second Northern Grcater Mekong sub-Region Transport NetworkImployement (AddiUona! Financing).

under Loan Agreement No, 3312-wE betwen the Asian Development funk and theGovemment of the Socialist Repubtic of Webram

STATEMENT OF THE PROJECT HAilAGEMENT UNIT (CONTINUED)

Responsabllity of the project Management unit in respect of the Financial statements

The Project Management Unit was responsible for ensuring the Financial statements which give a trueand fair.view of the.financial position and advance accoun[ bahnce of the project as at 30 Jine 2020and of its funds and expenditures, opemtions of the advance ac@unt and total funds withdrawn for theperiod from I January zo2o to 30 lune 2020. In preparing the Financiar statements, u,e proraManagement Unit was required to select suitable a.count-ing policies and then apply them consistenfly.

The Proiect Management Unit was responsible for ensuring that proper accounting records were keptwhich enabled the Financiar statements tote pJepared ini"rpri.n& with the adounting poli.io,"tout in Note 2 to the Financiar statements..The project Management unit was atso responiibte rorsafeguarding the assets of the Project and hence for taking ieisonable steps for ttrelrevinuon anadetection of fraud and other irregularities

The Project Management Unit was also responsible for maintaining an effective internal control asmanagement determines was necess.rry to enable the preparation-of the Financial statem;nG th;twas free from materiar misstatemen! whether due to rraub oi uiror, ana compried with rerevanilaws, regulations and other provisions of the Loan egreemeni that courd have a direct and materiarfinancial effect on the projecfs Financial StatemenBl

19 PpJ".t Management unit assumed the responsibirity to provide, and has provided, the auditorswith all accounting records, supporting and other docunienLt ,inrto, any pertinent informauon ando(planations, either orally or by written mnfirmation, necessary ior the audit.

-j75:Approval of the Financial Statements

We hereby approve the accompanying Financial Statements of the project',Second Northern GreaterMekong Sub-Region Transport Network Improvement (Additional Financi ng)" on pages 9 to 22 which

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give a true and fair view of the financial position and advance account balance as at 30 June 2O2O andits sources and uses of funds, operations of the advance account and total funds withdrawn during the lol:

period from I January 2O2O and 30 June 2020 in accordance with the accountin g policies as describedin Note 2 to the Financial Statements and withdrawal applications have been adequately reconciled tothe statements of expenditures and summary sheeLs prepared by the Project during the period, andsuch statements of expenditures were adequately supported. The Financial statements were preparedin compliance with the Applicable provisions of the Loan Agreement and other guidance from the AsianDevelopment Ba

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THANG LONG

A,ru,y'l/ifr g"a"

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Hanoi, 30 December 2020

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19" Fl., C Land ToBer, l55 Xa Dan ll, Dong Da. Hanoi

P: '84 {241 I 955 o99o - F: +84 l24l 5 935 0991

Hd Phong Ofnc.245 Each Dang, Thuong Ly, HorA Bang, Hai Phong

P:.84(22s) 3559969/666/s55 - F: +84122s) 5s59 789

Hod|iml ctyoric.9- Fl. Estar Bldg.,1zr7-149 VoVah Tan, DistricL 5, Hochiminh City

P: +84€8) 59 30O 4a8 - F: +84 (28159 3oo 4E4

E: n€dasftarcrb.vn W: wwy.nexia.vn

INDEPET{DENT AUDITORS' REPORT

On Project Financial Statements

We have audited the accompanying Balance Sheet as at 30 June 2020 and the Statement of Funds andExpenditures, the Statement of the Advance Account, the Statement of loan withdrawals - Account No.1'100206029593 and the Statement of Budget versus Actual Expenditures for the period from l January2020 to 30 lune 2020 (collectively referred to as the "Financial Statements') of the project'secondNorthern Greater Mekong sub-Region Transport Network Improvement (Additional rinincing),,implemented by the Asian Development Bank and counterpart funds, and summary of signiicantaccounting policies and other explanatory information (.the projecf).

In our opinion, in all material respects:

a) The Balance Sheet, the Statement of Funds and Expenditures, and the Statement of budget versusactual expenditures give a true and fair view of the financial position of the project as at

-30 June

2020 and of its sources and uses of funds for the period from 1 January 2020 to 30 June 2OZO inconformity with the accounting policies described in Note 2; and

b) The Statement of the Advance Account and the Statement of Loan Withdrawals give a true and fairview of the Advance Account balance as at 30 June 2020, operations of the adva-nce account, and ofthe funds withdrawn for the period from I January 2020 to 30 June 2020, in conformity with theaccounting policies described in Note 2.

Basis for Opinion

we conducted our audit in accordance with Internauonal standards on Auditing (..ISAs). ourresponsibilities under those standards are further described in the Auditot s R*pnsibii:ties for the Audttof the Fnanctel Sbtements section of our report. We are independent of the project in accordance withthe ethical requirements that are relevant to our audit of the iinancial StatemenG in accordance withInternational Ethics Standards, and we have fulfilled our other ethical responsibiliHes in accordance withthese requirements. We believe that the audit evidence we have obtainei is sufficient and appropriate toprovide a basis for our opinion.

Tor Thang Long Project tlanagement Unit

Audit Opinion

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Responsibilities of Management for the Financial Statements

J.he Proiect Management Unit is responsible for the preparation and fair presentation of the Financial

statements in accordance with Note 2 and for such intemal control as management dete-in*linecessary to enable the preparation of the Financial statements that is free irom material misstaiement,whether due to fraud or error.

Auditors' Responsibilities for the Audit of the Financial Statements

our objectives are to obtain reasonable assurance about whether the Financial statements as a wholeare free from material misstatement, whether due to fraud or eiror, and to issue an auJitors,-report thatincludes our opinion. Reasonable.assurance is a high level of aisurance, but is not a guarantee that anaudit conducted in accordance with ISAS wifl arwais detect; ..t"ri"t ,irrtut"rent when it exists.Misstatements can arise from fraud or error and ui" *nriao"a ,uteriar it individu;trv o, i, $," -

9sslesgte, they could reasonably be expected to influence the economic decisions of users taken on thebasis of these Financial Statements.

A further description of the auditors' responsibilities for the audit of the Financial statements are includedin Appendix I of this auditors' report. This description, wtricrr is iepresented at page 23. forms part of ourauditoB' report.

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Deputy @neml DiretorAudit Practicing Registrahbn Certificate

No. 2041-2018-225-t: 37 l2O2O-HNl AUD/ADB-GMS


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Project'Second Nodlrern Grcater lrlekong Sub-Region Transport Netn orkImprcvement (Addltional Financing)"

Under Loan Agreement No. 3317-WE between the Asian Development hnk and theGovemment of the fucblist Republic of Weblam

BAI.ANCE SHEET

As at 30 June 2020

ASSETS

Current assetsCash in bank

Advance to contractorsOther advances

Internal receivables

TOTAL ASSETS

RESOURCES

Current liabiliUesPayables to suppliers

Other payables

Fund balanceFund balance

TOTAL RESOURCES

Prepared by:

Nguyen Doan HuyA60unbnt


Note

As at3tl6l2o2O

VND

r5,184,993,04475,43t,823,507

264,003,018

489,056,519

As at3tlt2l20t9

VND

70,464675,2tAs2,984,571,054

6,236,t64,65310,752,883,018

489,0s5,519

3

4

5

16,184,883,044 7O,452F75244

6

7

133,233r276,55!t03,979,4t5,88229,273,860,669

(117,O68,393,506)(117,068,393,s06)

941769,066,9O365,728,398,234

29,039,658,669

(24,305,391,659)(24,305,391,559)

16rl84rgg3,o44 7O,462,675,2U

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Tran Van Chien

Head of Finance and AcountingDeparunent

BAN OUAN LI

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The accomrynying notes fom an intqral pft of the Finandal Sbtements

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Project'Second Northem GreaEr l,lekong Sub-Region Transport Netn orkImprovement (AddiUonal Financing)"

Under Loan Agreement No. 3317-WE between the Asian Development funk and theGovemment of the fucialbt Republrt of Vietnam

STATEMENT OF FUI{DS AND EXPENDITURES

For the period from 1 January 2020 to 30 June 2020

Note

perlod

from UU2O20 to30 l6l2O2o

VI'ID

78,661,686,603

8,4t0,267,373

Periodfrom 10/5/2016

ro 3Lltzl2OI9VND

627 344,L53,q7

46,492,921,453

Periodtrom LOl5l2O,.6

to 30l6l2o2OVND

706,005,8rrc,004

54,933,188,766

FUI{DS

Funds received from the AsianDevelopment Bank

Counterpart funds

EXPElIDITURES

Clvil works

ftoject management unit and othercosts

Consulting services

Land acquisition and resetUement

Uno<ploded ordinance clearance

Interest during @nstructionExpenditures for phase 1 under

Loan Agreement No. 2703-VIE(coL)

Others

Nguyen Doan HuyAEountant


87,tOL,953,9t7 673,837,074,854 760,939,02A,771

10 779,375,435,194

8

9

L6 ,763 ,420 ,73437,584,024,000

6,r40,363,107

358,639,303,325

8,264,223,#L

34,273,630,3t9

255,447,776,982

6,245,O73,000

12,993,009.150

478,074,738,5t9

8,264,223,461

50,977,051,053

293,031,740,982

5,24s,073,000

19,t33,372,257

28.890,3sr,485 28,890,351,48s

149,3t7,184 749,3t7,784

L79,863,243,O35 70,4,842,024,906 8U,7O5,267,94L

Deficit of funds against expenditures (92,761,289,tt8) (31,004,9s0,0s2) (123,766,89,170)

Foreign exchange (losses)/gains (1,7t2,729) 6,699,ss8,393

FUND BALANCE. BEGINNING OFTHE PERIOD (24,305,391,659)

FUND BALANCE, END oFTHE PERTOD (117,068,393,505) (24,30s,39r,059) (117,068,393,500)

Prepared

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Head of Finance and AccountingDeparunent

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|he acampanying notes form an intqml pft of the Financial Statemenb

Project "Second Nor{lrern Greater i{ekong Sub-Region Transport NetworkImprcvement (Additional Financing)"

Under Loan Agreement No. 3317-WE between the Asian Devetopment funk and theGovemment of the Socialist Republic of Wettam

STATEMENT OF ADVANCE ACCOUNT

For the peraod from 1 lanuary 2020 to 30 June 2020

A@unt No.:Amuntholfur:

tunk:Addrcss:LEn Agtement lvo.:

Part A - Account Activity

Balan@ as at 31 Deaember 2019

Add:

Deduct:

Total amount withdrawn

Ending balance as at 30 June 20ZO

PanB - Account Reconciliation

Amount advanced by the Asian Development Bank

Add:

Amount credited by the Asian Development Bank

Deduct:

Amount recovered by the Asian Development Bank

Outstanding amount advanced to the Advance Acaountas at 30 Jun€ 2020

Ending balance of Advance Account as at 30 June 2O2O

Add:

Amount claimed and not yet credited

Amount withdrawn and not yet claimed

Total advance to the Advance Account as at 30 June 2O2O

Prepared by:

14002M029593THANG LOIVG PROJECT MANAGEMENT UNITProjet "fund lvotthern Greater Mekong Sub-Region Transport lfietwort<Improvement (Add onal Financing)"Vietnam funk for AgnCulture and Rural Developmentilo. 24 Lang Ha stret, Dong Da distriq Hanoi city, Viebam3317-WE

NoteFrcmLlLl2O2O

to 30l6l2O2OUSD

2,29O,L13.97

7,405,945.59

(3,031,s80.9s)

664,479,6L

4,273,t61.12

(4,273,16t.12)

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664,479.57

13 6,335,520,39

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Tran Van Chien

Head of Financ and Ac@untingDeFrtnent

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BAN QUAN LY

THANG

The accompanying notes form an intqral pft of the nnanciat Statemenb11

Total amount credited by the Asian Development Bank during the year

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Project'second Nort{rern Grcabr Mekong sub-Region Transport NetworkImproyement (Additional Financing)-

under Loan Agreement No. 3317-wE between the Asian Deveropment tunk and theGovemment of the Socialist Repubtic of Vietnam

1

NOTES TO THE FINANCIAL STATEMENTSPeriod from 1 January 2020 to 30 Jun 2020

Basis for pr€parauon of the Financia! Statements

Proiect background

Project "second Northern Greater Mekong sub-Region Transport Network Improvement (AdditionalFinancing)"was impremented by the Ministry of rrinsport - fhe Government or the sociaiistRepublic of vietnam. The project was granted by the Rsian oiveropment aant unoerl;n

-

Agreement No. 3317-vIE dated 19 rebluary z0io wrth amouns equivarent to so,+o,ooo speciatD-rawing Rights I'sDRJ and counterpart funds from the Governmeht or the socialist R6,b1ffivietnam-for the years from 2016 to iOl8. on 28 Nay 2019, u," p.j"c ,ru. approved tJ

"rtunJuntil 30 June 2020.

].tt9. ouj91iv9 of the Project was-to further improve the emciency of transportation capacity ofNational Highway No. 217 in Vietnam, a part of the proieAiieu'linfins do, und Vi"ii;.,

-

The Project included the following contents:

- Upgrading about 45 km of National Highway No. 217 fromcam Thuy district to Ba Thuocdistrict- 8rlilding a new overpass bridge at Ha Trung district; and- Measuring to improve traffrc safety.

The Project was ca'ied out at the-Ministry of rransport and Ministries, Departnents, andprovinces which were responsibre for subjprojects giantea unueitre iro;ecrs rrameiuo*.

Summary of significant accounting policies

The significant accounting poricies, which.have been adopted by the project Management unit inthe preparation ofthe Financial Statements. are as follolis '

Reporting currency

The Financial Statements are exDressed inVietnam Dong CVND,), except for the Statement ofthe. Advance Account and the Statement of Loan witnarirLir ]L.ount No. 1400206029593which are expressed in United States Dollar CUSD,).

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The Financiar statements are prepared and presented by the project in accordance withrequirements of the Asian Devetopm:i,t g:n! (.ADB), .orpfying ;itt Circutar tto.-rSi/rOrZfn_BTC dated 15 November 2012 issued by ttre uinistry oi ri'nJnE guiaing ttre accountr.rig sysiemapplicable for the Investor unit. The Financiar stutur.ns ui. pripared on modified cash basic ofaccounting. This basis of accounting is considered appropriateio ltre op"ruu* or-p.iJ iv tiJ'management.

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Project "Second Nordtern Greater Mekong Sub-Region Transport NetworkImprovement (Additionat Financing)"

Under Loan Agreement No. 3317-WE between the Asian Development funk and theGovemment of the Socralrst Republic of Wetnam

Funds

Funds from the Asian Development Bank (ADB) are recorded when payments are made direcHyfrom ADB to contractors/suppliers or credited to the projecfs Advance Account.

The counterpart funds of the Government of vietnam are recorded when payments are madedirectly from the Government of Vietnam to contractors/suppliers of the pioject or when received.

Expenditur€s

Expenditures financed by ADB are recorded when the obligation to pay them arises rather thanwhen actually paid.

Expenditures financed by the counterpart funds are recorded when they are approved by thestate Treasury except for expenditures to contractoc/suppliers which ire uasea on comiletion ofwork or contracts, advances to staffs, and advances to iontractors/suppliers.

Overall management expenses are recognizd and monitored by Thang Long projectManagement unit for all projecG managed by Thang Long project Manlgemlnt Uni! thenallocated to individual projects in accordance with their mrresponding arinual budgel, ensuringthat accumulated management expenses of each project do nbt exceea its overallipproved

-budget.

Forcign exchange diffierenes

Funds received from ADB in United states Dollar CUSD') are onverted into vietnam DongC'VND') using actual exchange rdtes of the Ministry of Finance ruling at the transaction dates.

Transactions incurred in the period via the Advance Account are converted into vND using actualo<change rates of Vietnam Bank for Agriculture and Ruml Development at the transactiori datesfor oeenditures denominated in USD.

Foreign exchange differences are taken up in the statement of Funds and Expenditures.

Actual expenditures incurred period from 1 January 2020 to 30 June 2020 were converted intousD at the o(change rate of vietnam Bank for Agriculture and Rural oevelopment at the balancesheet date (i.e.: USDI = VND23,210).

Fixed assets

Expenditures for acquisition of fixed assets are recognized as expenditures in the statement ofIy"d: "."9

Expenditures for the period. Accordingly, fixed assets are not presented in the Balancesheet at the end of the period. Memorandum listings are kept for control and managementpurposes.

\

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15

Project'Second Nordrern Greater Mekong sub-Region Transport NetworkImprovement (Additional F-nancing).

under Loan Agreement No, 37lz-wE between the Asian Devetopment Bank and theGovemment of the Socialist Repubtt? of Vbblam

Advance Account and interests of the Adyance Account

Advance Account is a deposit account in USD opened at vietnam Bank for Agriculture and RuralDevelopment for settlement of the projecfs activities. payments made via thl Advance Accountare for e]igible expenditures of th-e project in accordance with provisions of Loan Agreement No.3317-VIE dated 19 February 2016

Interests on the Advance Account are presented as other payables in the galance sheet and areused to cover bank charges as regulated in circular ruo. tds/iotzlrr-BTc dated 15 November2012 issued by the Ministry of Finance guiding the accounting system of the Investor units.

Cash in bank

This represented the barance of the Adv_ance Account at rhang Long project Management unitthat was converted into vietnam Dong c'vND') as at:o:une ioiO. The triginar .u-rr"n.y uutin*of this account was USD 664,479.b1 a1 at 30 June 2020.

4. Other advances

As at30l612o2o

VND

As at3Ur2l2019

VND

Unit of compensation, support, resettlement toimplement the project .'Upgrading

Highway 217 inThanh Hoa province, belonged to the projectSecond Northern Greater Mekong Sub-RegionTransport Network Improvement phase 2; _ BaThuoc district

Unit of compensaton, suppoG resetuement toimplement the project ',Upgrading Highway 217 inThanh Hoa province, belonged to ttrJero;ectSecond Northern Greater Mekong Sub-RegionTransport Network Improvemenf phase 2; _ CamThuy district

Unit of compensation, support, resettlement toimplement the project ..Upgrading

Highway 217 inrnanh Hoa province, belonged to the projectS€cond Northern Greater Mekong Sub-RegionTransport Network Improvemenf phase 2; _ HaTrung district

5,473,707,000

5,2216,313,000

264,003,018 32,863,018

\,\Itf*

7

264,003,018 10,752,883,018

Interna! rceiyables

This represented the internar receivabres from Thang Long project Management Board for theamount of funds arlocated to the proiect Managemeit Unit of tie projeci"second Northern

-

Greater Mekong Sub-Region Tmnsport Networ[ Improvement laaOitionat financlng;; for'management costs.

5.

16

3.

Project'Second Northern Greater Mekong Sub-Region Transport NetworkImprovement (Additional Financing)"

Under Loan Agreement No. 3317-WE between the Asian Development Bank and theaovemment of the Socialrst Republic of Wetnam

6. Payablestosuppliers

As at30l6l2O2O

VT{D

Thang Long Corporation - JSC.Petroleum Conskuction and Investrnent JSC.Tan Thanh JSC.

Thong Nhat Construction JSC.

Association of Hoang Long Invesunent and Construction -Corporauon - No. I Civil Engineering ConstructionCorpordton

Association of Kunhwa Engineering & Consulting Co., Ltd. -Jinwo Design Co., Ltd.

Nexia STT Co., Ltd.Construction Consulting and Design Survey Co., Ltd.Road Technical CenterCenter for Community support for sustainable developmentConsulting and Environmental protection E.p.C Co., Ltd

7. Otherpayables

Bank fees - AgribankExpenditures for Phase 1 - Technical design (*)Expenditures for Phase I - DTM Envkonmlntai Impact

Assessment Report (*)Unit of compensation, support, resetflement to implement

the Project "Upgrading Highway 217 in Thanh ioaprovince, belonged to the project Second NorthernGreater Mekong Sub-Region Transport NetworkImprovement Phase 2', - Cam Thuy district

4,885,997,2L79,627,382,920

26,407,656,0U19,t3s,897,L42

As at3U12l20te

VND

2,33r,823,3741,444,272,001

18,419,960,902

11,013,153,319

35,721,52r,069 32,264,575,638

6,570,840,635

268,290,000 134,145,000

120,468,000420,727,435473,05L,700473,051,700

103,979,415,882 65,728,398,234

As at30l6l2O2O

VND

149,377,784

28,577,35t,485

313,000,000

As at3Utzl20t9

VND

149,3t7,78428,577,351,485

313,000,000

f): This represented the expenditures for phase 1, which was transferred to phase 2 of theProject and will be finalized upon the project closuie.

234,t92,000

29,273,860,669 29,039,568,569

t7

Proiect'Second Norttrern Greater Mekong Sub-Region Transport NetworkImprovement (Additional Financing)"

Under Loan Agreement No, 3317-WE between he Asian Devetopment Bank and theGovemment of the fucialist Republt of Vieblam

8. Funds received fiom the Asian Devetopment Bank

Advance Account (*)Loan InteresLs from ADB

PeriodtromUU2O2Oto 3Ol612020

VITD

72,527,323,4956,t40,363,107

Periodfrom 10/5/2015ta3Ut2l2Ot9

vilD

614,35t,t44,25112,993,009,150

Periodfrom 10/5/2016

to30l6l2O2oVND

685,872,467,747

t9,t33,372,257

78,661,686,603 627,344,1s3,401 706,005,840,004

(*): Details of funds received from the Asian Development Bank for period I Jan 2020 to 30 Jun 2020were as follows:

Receipts under withdrawal applications

No Date

A0022 11412020

Total funds replenished to Advance Account

Payments under withdrawal applicauons

Date

201212020

201212020

8lsl202081s12020

8lsl202081s12020

Lsl6l202026/sl2020191612020

Periodtrom llU2O2O to 3Ol612020

Amount Equivalent toUSD VND

1,405,9215.59 32,551,703,605

1,405,946.59 32,65t,703,606 (a)

No

A0023

40024

40025

A0026

A0o27

40028 (+)

A0030

40031

A0032

Total direct payments from the Asian DevelopmentBank

Total (a) and (b)

193,206.81

85,929.83

315,537.72

203,580.36

168,051.05

323,169.13

203,230.00

131,417,73

90,990.01

4,485,702,795t,994,775,1737,337,514,0424,734,057,7853,907,859,085

7,574,974,9744,726,3L6,880

3,054,410,9222,114,608,232

1,7t5,112.54 39,859,619,890 (b)

3,t2r,059.23 72,52t,323,496

{o

arl

*o

(*): withdrawal application No. Ao0o29 was cancelled and replaced with withdrawal applicauonNo. A00032.

18

9. Counterpart funds

Civil works

Project management costs and othercosts

Consulting servicesUno<ploded ordinance clearance

PeriodfromU,.l202oto30l6l2O2o

VND

7,530,872,851

Periodfiom 10/5/2016to3urzlzorg

VND

27,278,334,792

8,632,811,980

4,396,701,6816,245,073,000

Periodfrom 10/5/2016to3Utol2O2O

vilD

34 ,749 ,207 ,643

8,632,811,980

5,306,096,143

6,245,073,000

909,394,462

8,440,257,313 46,492,921,453 54.933,188,766

Fc0

AACll I

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19

Project "Second Northern Greater Mekong Sub-Region Transport NeturorkImprovement (Additional Financing),,

Under Loan Agreement No. 3317-WE between the Asian Devetopment funk and theGovernment of the Socialist Repubtic of Vietnam

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Project'Ssond Northern Grcater Mekong Sub-Region Transport NetworkImprovement (AddiUonal Financing)"

Under Loan Agreement No, 3317-WE between the Asian Development funk and theGovemment of the Soctalbt Republic of Wetnam

t2, Land acquisidon and resettlement

Period Periodfrom UU2O2O to 30 l6l2o2o from 10/5/2016 to 30 1612020

Ba Thuoc districtCam Thuy districtHa Trung district

FundsADBVND

19,509,707,000

15,980,505,000

2,093,812,000

TotalVND

19,509,707,000

15.980,505,000

2,093,812.000

FundsADBVND

72,036,000,000

150,934,192,000

70,060,948,982

TotalVND

37,584,024,000 37,584,024,000 293,03L,t40,982 293,031,140,982

13. Amount withdrawn and not yet claimed

These represented payments for the Projecfs activities. These expenses will be claimed in thenext Statement of Loan Withdrawals,

Prepared by;

Doan Huy Tran Van Chien

Head of Finane andAccounttngDepartment

AGountant


I

flAt{ t'T

erAr'aodc

A,ngAA fi"ar'

THANG

N

BAN OUAN LY

))

72,036,000,000

150,934,192,000

70,060,948,982

Project "Second Nortsrern Gteater Mekong Sub-Region Transport l{etworkImprovement (Additional Financing)"

Under Loan Agreement No. 3317-WE between the Asian Development funk and theGovemment of the Socrblist Republic of Wetnam

Appendix I - Auditorc' ResponsibiliUes for the Audit of the Financial Statements

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

' Identiff and assess the risk of material misstatement of the financial statements, whether dueto fraud or enor, design and perform audit procedures responsive to those risks, and obtain auditevidence that is sufficient and appropriate to provide a basis for our opinion. The risk of notdetecting a material misstatement resulting from fraud is higher than for one resulting from error,as fraud may involve collusion, forgery, intenuonal omissions, misrepresentations, or lhe overrideof 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 &pressing anopinion on the effectiveness of the Projecfs internal control.

' Evaluate the appropriateness of accounting policies used and related disclosures made by themanagement,

. Evaluate the overdll presentation, structure and content of the financial statemenb, includingthe dixlosures, and whether the financial statements represent the underlying transactions anidevents in a manner that achieves fair presentation.

we communicate with those charged with the project Management unit regarding, among othermatters, the planned scope and timing of the audit and significant audit fintings, including anysignificant deficiencies in intemal control that we idenuff during our audit.

we also provide those charged with the project Management unit with a statement that we havecomplied with relevant ethical requirements regarding independence, and to communicate withthem all relationships and other matters that may reasonably be thought to bear on ourindependence, and where applicable, related safeguards.

From the matters communicated with those charged with the project Management unit. wedetermine those matters that were of most significance in the audit of the financial statements ofthe current period and are therefore the key audit matters. we describe these matters in ouraudito/s report unless law or regulation precludes publlc disclosure about the matter or when, inextremely rare circumstances, we determine that a matter should not be communicated in ouirercrt because the adverse consequences of doing so would reasonably be expected to outweighthe public interest benefits of such communication.

23

Documents

Audited Project Financial Statements