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Published Audit Report of Preparation Advance for Industrial Waste and Management Clean-Up Project in Montenegro

Podgorica, 29th July 2015 – At the request of the World Bank and Decision of the relevant Auditing Board, composing of a leader of the Auditing Board, Milan Dabović, PhD and member of the Auditing Board, Dragiša Pešić, the State audit institution has performed audit of Preparation advance for the “Industrial waste and management clean-up Project in Montenegro”, financed by the International Bank for Reconstruction and Development (IBRD) – Preparation advance no. IBRD P4600-ME for the period from 23rd March 2011 until 15th December 2014.

The Audit Report of Project Preparation Advance for Industrial Waste and Management Clean-Up Project in Montenegro consists of an overview of the usage of credit funds for the period from 23rd March 2011 until 15th December 2014, i.e. from signing Advance Agreement No. IBRD P4600-ME till final refinancing date approved by the World Bank.

The audit did not determine irregularities in implementation of the regulations related to performance of the project activities for which the advance was provided. The contracts for consultants’ services were prepared and realized in line with the Advance Agreement for Project Preparation “ Industrial waste and management clean-up in Montenegro” (Preparation Advance No. IBRD P4600-ME), Standard Conditions for Advances Made by the World Bank under its Project Preparation Facility (dated July 2010), Disbursement Letter for the Advance and World Bank Disbursement Guidelines for Projects (dated May, 2006). The activities envisaged by the contracts of consultants’ services were realized in line with defined project tasks and refinancing dates approved by the World Bank.

The public procurement procedure for selection of the consultants based on quality and costs (QCBS) and public procurement procedure for selection of the consultants based on consultants’ qualifications (QBS) are carried out in line with the Guidelines of the World Bank for Selection and Employment of Consultants under IBRD Loans and IDA Credits by World Bank Borrowers.

The revenues and expenditures of the Project “Industrial waste and management clean-up in Montenegro” and financial situation of the Project were presented, in all material aspects, in real and objective manner. The revenues and payments were executed in line with the relevant World Bank Disbursement Guidelines for Projects, for the period from 23rd March 2011 until 15th December 2014 and therefore, the relevant Auditing Board has expressed unqualified audit opinion with emphasis of matter:

  • The Environmental Protection Agency with the Ministry of finance should determine concrete amount of withdrawn funds which will be included in the loan amount aligned with the Loan Agreement for the Project “Industrial waste and management clean-up in Montenegro”, which total value is 50.000.000,00€;
  • In line with the World Bank Disbursement Guidelines for Projects and Standard Conditions for Advances Made by the World Bank under its Project Preparation Facility, the Environmental Protection Agency should furnish the records and supporting documents as evidence for eligible costs and performance of the activities for the following projects and retain them within prescribed deadline;
  • In line with the Loan Agreement, the Environmental Protection Agency is obliged to submit to the World Bank interim un-audited financial reports on revenues and expenditures of the Project.

The final Audit Report of Preparation Advance for Industrial Waste and Management Clean-Up Project in Montenegro has been officially published at the web site of the State audit institution.

Excerpt from the Audit Report of Project Preparation Advance for Industrial Waste and Management Clean-Up Project in Montenegro

Audit Report of Project Preparation Advance for Industrial Waste and Management Clean-Up Project in Montenegro