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CENTRAL POWER CORPORATIONDISTRIBUTION EFFICIENCY PROJECT

Financing Agreement No. Cr. 5156-VNGrant Agreement No. TFO13456-VN

AUDITED FINANCIAL STATEMENTSAND MANAGEMENT LETTER

For the year ended 31 December 2017

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UCENTRAL POWER CORPORATIONDistribution Efficiency ProjectFinancing Agreement No. Cr. 5156-VNGrant Agreement No. TF013456-VN

TABLE OF CONTENTS

CONTENTS PAGE(S)

PART I FINANCIAL STATEMENTS

Statement of the Executive Management 2

Independent Auditors' Report 3-5

Balance Sheet 6 R

Statement of Sources and Uses of Funds 7

Statement of Designated Account 8

Statement of Withdrawals 9U

Notes to the Financial Statements 10 - 14

PART II REPORT OF INDEPENDENT AUDITORS ON INTERNAL 15CONTROL

PART III INDEPENDENT ASSURANCE REPORT ON COMPLIANCE 16

PART IV MANAGEMENT LETTER 17 - 18

ANNEX I PROJECT IMPLEMENTATION PROGRESS AND WITHDRAWAL 19PROGRESS

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FINANCIAL STATEMENTS

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CENTRAL POWER CORPORATIONDistribution Efficiency ProjectFinancing Agreement No. Cr. 5156-VNGrant Agreement No. TF013456-VN

STATEMENT OF THE EXECUTIVE MANAGEMENT

The Executive Management of Central Power Corporation ("CPC") presents this report togetherwith the financial statements of the Distribution Efficiency Project - Financing Agreement No. Cr.5156-VN and Grant Agreement No. TF013456-VN - Portion implemented by CPC (the "Project") forthe year ended 31 December 2017.

The Chairman and Executive Management

Chairman and the members of the Executive Management of CPC who held office during the yearand to the date of this report are as follows:

Mr. Tran Dinh Nhan Chairman cum Chief Executive OfficerMr. Nguyen Sy Hung Executive OfficerMr. Le Nam Hai Executive OfficerMr. Nguyen Thanh Executive OfficerMr. Nguyen Duc Executive Officer (appointed on 15 September 2017)

The Executive Management' Statement of Responsibility

The Executive Management of CPC is responsible for preparing the financial statements of theProject, which comprise the balance sheet as at 31 December 2017, statement of sources anduses of funds, statement of designated account and statement of withdrawals for the year thenended and the notes to the financial statements, including a summary of significant accountingpolicies, which give a true and fair view of the financial position of the Project as at 31 December2017 as well as its receipts, disbursements and expenditures for the year then ended, inaccordance with the accounting convention and the accounting policies set out in Note 2 and Note3 of the notes to the financial statements and the covenants contained in Financing Agreement No.Cr. 5156-VN and Grant Agreement No. TF013456-VN. In preparing these financial statements, theExecutive Management is required to:

* Select suitable accounting policies and then apply them consistently;* Make judgments and estimates that are reasonable and prudent;

* State whether applicable accounting principles have been followed, subject to any material

departures disclosed and explained in the financial statements;* Prepare the financial statements on the going concern basis unless it is inappropriate to

presume that the Project will continue in operation; and* Design and maintain effective internal control over compliance with requirements that could

have a direct and material financial effect on the financial statements as well as over financial

reporting for the purpose of properly preparing and presenting the financial statements so as

to minimise errors and frauds; and take responsibility for its assertions as to the effectiveness

of such internal control.

The Executive Management is responsible for ensuring that proper accounting records are kept,which disclose, with reasonable accuracy at any time, the financial position of the Project and thatthe financial statements comply with the accounting convention and the accounting policies set outin Note 2 and Note 3 of the notes to the financial statements. The Executive Management isresponsible for using the Project's funds as intended for the Project and for complying with thecovenants of Financing Agreement No. Cr. 5156-VN and Grant Agreement No. TF013456-VN aswell as laws and regulations applicable to the Project. The Executive Management is alsoresponsible for safeguarding the assets of the Project and hence for taking reasonable steps forthe prevention and detection of frauds a other irregularities.

The Executive Management confirms hat they have complied with the above requirements inpreparing these financial statements.

For and on ehalf of the Executiv Management,

Tran Dinh NhanChief Executive Officer

27 June 20182

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Deloitte Vietnam Company Ltd.15thFloor, Vinaconex Tower,D elo itte 34 Lang Ha Street, Lang Ha Ward,Dong Da District, Hanoi, VietnamTel :+84 24 6288 3568Fax:+84 24 6288 5678Website: www.deloitte.com/vn

No. Wf VN1A-HN-BC

INDEPENDENT AUDITORS' REPORT

To: The Chairman and Executive Management of Central Power Corporation

Opinion

We have audited the financial statements of the Distribution Efficiency Project - Financing

Agreement No. Cr. 5156-VN and Grant Agreement No. TF013456-VN - Portion implemented by

Central Power Corporation (the "Project"), which comprise the balance sheet as at 31 December

2017, the statement of sources and uses of funds, statement of designated account, statement of

withdrawals for the year then ended and the notes to the financial statements, including asummary of significant accounting policies.

In our opinion:

* The accompanying financial statements, give a true and fair view of the financial position of

the Project as at 31 December 2017, and of its receipts, disbursements and expenditures for

the year then ended in accordance with the accounting convention and the accounting policies

set out in Note 2 and Note 3 of the Notes to the financial statements.

* The statement of designated account give a true and fair view of the balances of the

designated account as at 31 December 2017 and the Project's receipts and disbursements via

the designated account for the year then ended in accordance with the relevant covenants of

Financing Agreement No. Cr. 5156-VN and Grant Agreement No. TF013456-VN and prevailing

relevant regulations established by the World Bank.

The withdrawal applications were adequately reconciled to the statements of expenditures

(SOEs) prepared by the Project Management Unit for the year ended 31 December 2017 and

those SOEs were adequately supported.

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 Auditors' Responsibilities for the

Audit of the Financial Statements section of our report. We are independent of the Project in

accordance with the ethical requirements that are relevant to our audit of the financial statements,

and we have fulfilled our other ethical responsibilities in accordance with these requirements. We

believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis

for our opinion.

Basis of Accounting

We draw attention to Note 2 and Note 3 of the Notes to the financial statements, which describes

the accounting convention and the summary of the significant accounting policies. The financial

statements are prepared in accordance with the accounting convention and the accounting policies

set out in Note 2 and Note 3 of the Notes to the financial statements and the requirements of the

World Bank.

Other matter

The "Project implementing expenditures" item in the balance sheet as at 31 December 2017 and

"Others" item under "Disbursements" section in the statement of sources and uses of funds for the

year then ended included some expenditures amounting to VND 33,415,084,245 incurred by the

Project before the effective date of the Financing Agreement which have been financed by the

counterpart fund (as at 31 December 2016: VND 33,415,084,245).

Deloitte refers to one or more of Deloitte Touche Tohmatsu Ltd., a UK private company limited by guarantee("DTTL"), its network of member firms, and their related entities. DTTL and each of its member firms are legally

separate and independent entities. DTTL (also referred to as "Deloitte Global") does not provide services to clients.Please see www.deloitte.com/about for a more detailed description of DTTL and its member firms.

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INDEPENDENT AUDITORS' REPORT (Continued)

Responsibilities of the Chairman and Executive Management for the FinancialStatements

Management is responsible for the preparation of the financial statements in accordance with theaccounting convention and the accounting policies set out in Note 2 and Note 3 of the Notes to thefinancial statements, and for such internal control as management determines is necessary toenable the preparation of financial statements that are free from material misstatement, whetherdue to fraud or error.

In preparing the financial statements, management is responsible for assessing the Project's abilityto continue as a going concern, disclosing, as applicable, matters relating to going concern andusing the going concern basis of accounting unless management either intends to liquidate theProject or to cease operations, or has no realistic alternative but to do so.

The Chairman is responsible for overseeing the Project's financial reporting process.

Auditors' Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a

whole are free from material misstatement, whether due to fraud or error, and to issue an YAuditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is

not a guarantee that an audit conducted in accordance with International Standards on Auditing(ISAs) will always detect a material misstatement when it exists. Misstatements can arise from Mfraud or error and are considered material if, individually or in the aggregate, they could

reasonably be expected to influence the economic decisions of users taken on the basis of these

financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgment and maintain

professional skepticism throughout 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 risks, andobtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The

risk of not detecting a material misstatement resulting from fraud is higher than for one

resulting from error, as fraud may involve collusion, forgery, intentional omissions,misrepresentations, or the override of internal control.

* Obtain an understanding of internal control relevant to the audit in order to design audit

procedures that are appropriate in the circumstances.

* Conclude on the appropriateness of management's use of the going concern basis of

accounting and, based on the audit evidence obtained, whether a material uncertainty exists

related to events or conditions that may cast significant doubt on the Project's ability to

continue as a going concern. If we conclude that a material uncertainty exists, we are

required to draw attention in our Auditors' report to the related disclosures in the financial

statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are

based on the audit evidence obtained up to the date of our Auditors' report. However, future

events or conditions may cause the Project to cease to continue as a going concern.

* Evaluate the appropriateness of accounting policies used and the reasonableness of

accounting estimates, if any, and related disclosures made by management.

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DeloitteINDEPENDENT AUDITORS' REPORT (Continued)

Auditors' Responsibilities for the Audit of the Financial Statements (Continued)

We communicate with the Chairman and the Executive Management regarding, among othermatters, the planned scope and timing of the audit and significant audit findings, including anysignificant deficiencies in internal control that we identify during our audit.

Tran Thi Thuy Ngoc Le Anh SonDeputy General Director AuditorAudit Practising Registration Certificate Audit Practising Registration CertificateNo. 0031-2018-001-1 No. 1961-2018-001-1

DELOITTE VIETNAM COMPANY LIMITED

27 June 2018Hanoi, S.R. Vietnam

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CENTRAL POWER CORPORATIONDistribution Efficiency ProjectFinancing Agreement No. Cr. 5156-VN Financial statementsGrant Agreement No. TFO13456-VN For the year ended 31 December 2017

BALANCE SHEET

As at 31 December 2017

Ne 31/12/2017 31/12/2016VND VND

ASSETS

Expenditures 1,913,319,446,540 1,765,266,997,774

Project implementing expenditures 5 1,913,319,446,540 1,765,266,997,774

Current assets 71,519,407,497 95,151,120,824

Prepayments to suppliers 6 6,466,966,167 10,420,458,369

Other receivables 489,042,039

Cash 7 65,052,441,330 84,241,620,416

TOTAL ASSETS 1,984,838,854,037 1,860,418,118,598

RESOURCES

Funds 1,949,463,586,867 1,812,761,625,797

IDA fund 8 1,477,070,000,000 1,393,078,000,000

Counterpart fund 451,651,424,604 398,194,188,855

Grant fund 9 5,521,861,105 5,521,861,105

Other funds 795,926,841 795,926,841

Foreign exchange reserve 10 14,424,374,317 15,171,648,996

Current liabilities 35,375,267,170 47,656,492,801

Payables to suppliers 11 35,375,267,170 46,496,085,191

Other short-term payables - 1,160,407,610

TOTAL RESOURCES 1,984,838,854,037 1,860,418,118,598

OFF BALANCE SHEET ITEMS

31/12/2017 31/12/2016Foreign currencies

-USD 2.873,976 3.707.818

Vu Thi Kim Thoa Ho Thang Thu Tran Dinh NhanPreparer Chief Accountant Chief Executive Officer

27 June 2018

The accompanying notes are an integral part of these financial statements

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CENTRAL POWER CORPORATIONDistribution Efficiency ProjectFinancing Agreement No. Cr. 5156-VN Financial statements

Grant Agreement No. TF013456-VN For the year ended 31 December 2017

STATEMENT OF DESIGNATED ACCOUNT

Period : From 01 January 2017 to 31 December 2017

Account No. : 004.1370.164.270

Depository Bank : Joint Stock Commercial Bank for Foreign Trade of Vietnam - Da Nang Branch

Address : No.140-142 Le Loi, Hai Chau District, Da Nang City, Vietnam

Financing Agreement : Cr. 5156-VN

Currency unit : USD

PART A: ACCOUNT ACTIVITY

Opening balance (as at 01/01/2017) 3,707,818

Ad d:

- Total amount replenished by the World Bank to the designated account in the year 3,700,000

Deduct:

Total amount withdrawn from the designated account in the year 4,533,842

Closing balance (as at 31/12/2017) 2,873,976

PART 13: ACCOUNT RECONCILIATION

1. Opening advance balance by the World Bank 6,990,124

2. Add: Total amount advanced by the World Bank for the year 3,700,000

3. Deduct: Total amount claimed for advance clearance 6,770,114

4. Present outstanding amount advanced to the designated account as at 3,920,01031/12/2017

5. Closing balance of the designated account as at 31/12/2017 2,873,976

6. Add: Amount withdrawn but not yet claimed for advance clearance 1,046,034

7. Total present outstanding advance amount as at 31/12/2017 3,920,010

Vu Thi Kim Thoa Ho Thang Thu Tran Dinh Nhan

Preparer Chief Accountant Chief Executive Officer

27 June 2018


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STATEMENT OF WITHDRAWALS

(Financing Agreement No. Cr. 5156-VN)

For the year ended 31 December 2017

Withdrawal applications Amount claimed for Amount disbursed/accepted for

disbursement/advance clearance advance clearance

AmountU Advance Amount accepted forNo. Date Currency Advance Total Date

clearance disbursed advance Difference

clearance

Designated Account

22-CPC 06/11/2017 USD - 1,876,831 1,876,831 06/11/2017 - 1,876,831

21-CPC 13/09/2017 USD 2,200,000 409,601 2,609,601 13/09/2017 2,200,000 409,601

20-CPC 18/05/2017 USD - 1,201,375 1,201,375 18/05/2017 - 1,201,375

19-CPC 14/03/2017 USD 1,500,000 3,282,306 4,782,306 14103/2017 1,500,000 3,282,306

Total USD 3,700,000 6,770,113 10,470,113 3,700,000 6,770,113

Vu Thi Kim Thoa Ho Thang Thu Tran Dinh NhanPreparer Chief Accountant Chief Executive Officer

27 June 2018

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NOTES TO THE FINANCIAL STATEMENTSThese notes are an integral part of and should be read in conjunction with the accompanying financial statements

1. GENERAL INFORMATION

Distribution Efficiency Project operates under Financing Agreement No. Cr. 5156-VN, LoanAgreement No.TF013468-VN and Grant Agreement No. TF013456-VN signed on 08November 2012 between the Government of Socialist Republic of Vietnam and theInternational Development Association/International Bank for Reconstruction andDevelopment.

The objectives of the Distribution Efficiency Project are to improve the performance of theRecipient's Power Corporations in providing quality and reliable electricity services, and toreduce greenhouse gas emissions through demand-side response and efficiency gains.

The Distribution Efficiency Project consists of the following parts:

Part A: System Expansion and Reinforcement

Construction and reinforcement of 110 kilovolt, medium voltage, and low voltage electricitydistribution networks, including substations, of the Power Corporations.

Part B: Introduction of Smart Grid Technologies in Distribution

Automation, including through introduction of supervisory control and data acquisitionsystems, of electricity distribution network operations and of data collection by the PowerCorporations.

Introduction of advanced metering infrastructure systems, including two-way communicationsystems, as electricity distribution smart grid technologies for key substations andconsumers of selected Power Corporations.

Part C: Technical Assistance and Capacity Building

Provision of technical assistance to and capacity building of the Electricity RegulatoryAuthority of Vietnam for improvement of efficiency in electricity tariffs, enhancement ofefficiency of and incorporation of smart grid technologies in the grid and distribution codes,integration of renewable energy in the grid and distribution codes, development of demandresponse and smart grid programs, and Project management and monitoring and evaluation.

Provision of technical assistance to the Power Corporation for:

(i) Effective and timely Project implementation, capacity building in relation to financialmodeling and planning, carrying out of customer surveys and instituting of other suchmeasures to improve customer satisfaction; and

(ii) Implementation of advanced metering infrastructure systems, carrying out of programspromoting efficient electricity use such as a customer awareness campaign and demand

response programs and Project monitoring and evaluation.

Distribution Efficiency Project - Financing Agreement No. Cr. 5156-VN and Grant AgreementNo. TF013456-VN - Portion implemented by Central Power Corporation (the "Project") underthe sub-loan/sub-grant Agreement signed between Central Power Corporation (the"Corporation") and the Ministry of Finance dated 07 February 2013. Accordingly, theCorporation is granted a loan and a grant with the amount of USD 72,200,000 to implement

the Project.

Funds of Distribution Efficiency Project includes IDA fund, loan from Clean Technology Fund

("CTF"), grant from Australia trust fund ("AUSAID") with the amount of SDR 297,700,000,USD 30,000,000 and AUD 7,600,000 respectively, and counterpart fund.IDA fund andgrant from Australia trust fund for the portion implemented by CPC are within USD71,900,000 and USD 300,000, respectively. The Project is expected to be completed by 31December 2018.

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CENTRAL POWER CORPORATIONDistribution Efficiency ProjectFinancing Agreement No. Cr. 5156-VN Financial statementsGrant Agreement No. TF013456-VN For the year ended 31 December 2017

NOTES TO THE FINANCIAL STATEMENTS (Continued)These notes are an integral part of and should be read in conjunction with the accompanying financial statements

2. ACCOUNTING CONVENTION AND FINANCIAL YEAR

Accounting convention

The accompanying financial statements, prepared under the historical cost convention, areexpressed in Vietnam Dong (VND), except for the statement of designated account andstatement of withdrawals which are expressed in original currencies. The financialstatements are prepared on the going concern basis of accounting in accordance with therequirements of the World Bank and the accounting policies set out in Note 3 of the Notesto financial statements, which are set up in conformity with measurement and recognitioncriteria of Vietnamese Accounting Standards and accounting regime applicable toenterprises.

Financial year

The Project's financial year begins on 01 3anuary and ends on 31 December.

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The significant accounting policies, which have been adopted by the management in thepreparation of these financial statements, are as follows:

Recognition of funds and expenditures

Project's funds and expenditures are recognized when incurred.

Foreign currency translation

Transactions in foreign currencies are translated into Vietnam Dong (VND) at the exchangerate ruling at the transaction date. Closing balances of assets and liabilities denominated inforeign currencies are retranslated at the rate of commercial bank at the balance sheetdate.

Foreign exchange differences are neither receipts nor disbursements. However, foreignexchange differences are presented in a separate item on the statement of sources anduses of funds for the purpose of reconciling assets and liabilities balances in the balancesheet.

4. DESIGNATED ACCOUNTS

Designated accounts are deposit accounts opened at commercial banks for implementationof the Project's activities. Under the Project Appraisal Document, the Corporation openedtwo designated accounts to receive/manage funds from IDA and grant from AustralianTrust Fund.

Designated accounts are deposit accounts in USD opened at Joint Stock Commercial Bank

for Foreign Trade of Vietnam - Da Nang Branch for implementation of the Project's

activities. Payments out of the designated accounts are for expenditures in accordance

with the relevant covenants of Financing Agreement No. Cr. 5156-VN, Grant Agreement

No. TF013456-VN and relevant regulations established by the World Bank.

5. PROJECT IMPLEMENTING EXPENDITURESU Accumulated to2017 31/12/2017VND VND

Construction 99,587,245,904 559,487,110,629Equipment 48,465,202,862 1,011,328,542,980Other expenses - 342,503,792,931

148,052,448,766 1,913,319,446,540

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6. PREPAYMENTS TO SUPPLIERS 31/12/2017 31/12/2016VND VND

Quang Ngai Power Company 3,941,398,000

Ba Don Land Development Center 5,618,192 1,026,139,000

Bo Trach Land Development Center - 1,020,813,000

FPT Information System Company Limited - 3,506,438,214

Central Electrical Testing Company Limited - 750,840,843

Others 2,519,949,975 4,116,227,312

6,466,966,167 10,420,458,369

7. CASH

31/12/2017 31/12/2016VND VND

USD equivalent USD equivalent

Designatedaccount 2,873,976 65,052,441,330 3,707,818 84,241,620,416 .0

2,873,976 65,052,441,330 3,707,818 84,241,620,416

* 8. IDA FUND2017 Accumulated to 31/12/2017

Original VND Original VNDcurrency equivalent currency equivalent

(USD) (USD)

Designated 3,700,000 83,992,000,000 68,700,000 1,477,070,000,000account

83,992,000,000 1,477,070,000,000

* 9. GRANT FUND2017 Accumulated to 31/12/2017

Original VND Original VNDcurrUnDy equivalent currency equivalent

* ~(USD) (USD)___ _____ _______

Designated - 247,877 5,521,861,105account

-_ 5,521,861,105

10. FOREIGN EXCHANGE RESERVE31/12/2017 31/12/2016

VND VND

Realised foreign exchange difference 14,595,542,090 13,645,264,002Unrealised foreign exchange from revaluation (171,167,773) 1,526,384,994of cash balance denominated in foreigncurrencies

14,424,374,317 15,171,648,996

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CENTRAL POWER CORPORATIONDistribution Efficiency ProjectFinancing Agreement No. Cr. 5156-VN Financial statements

Grant Agreement No. TFO13456-VN For the year ended 31 December 2017


11. PAYABLES TO SUPPLIERS 31/12/2017 31/12/2016

VND VND

FPT Information System Corporation 14,510,398,744

Thuan An Construction company 3,094,132,162Da Nang Electric Construction Joint Stock Company 3,797,228,532 1,216,347,289

Quang Ngai Industrial Electric Construction Joint 2,519,093,440 219,042,326

Stock CompanyBinh Ha Joint Stock Company 2,114,495,959 -

Thanh Long Joint Stock Company - 7,355,443,402

Hai Van Nam Company Limited - 6,604,981,932

Energy Technology Co., Ltd. - 6,081,687,869Central Electrical Testing Company Limited - 4,745,615,395

Hai Phong Electric Contruction and Investment - 3,943,369,382

Joint Stock CompanyOthers 9,339,918,333 16,329,597,596

35,375,267,170 46,496,085,191

12. COMMIMENTS

As at 31 December 2017, the outstanding amount of contracts signed with suppliers was

approximately VND 83 billion (as at 31 December 2016: approximately VND 201 billion).

13. RELATED PARTY TRANSACTIONS AND BALANCES

Related party transactions and balances only relate to activities which were financed by

the counterpart funds.

List of related parties Relationship

Central Electrical Testing Company Limited Under CPC's management

Central Power Engineering Consulting Company Limited Under CPC's management

Central Load Dispatch Centre Under CPC's management

Central Grid Company Under CPC's management

Quang Ngai Power Company Subsidiary

Dak Lak Power Company Subsidiary

Dak Nong Power Company Subsidiary

Quang Binh Power Company Subsidiary

Quang Nam Power Company Subsidiary

Quang Tri Power Company Subsidiary

Phu Yen Power Company Subsidiary

Khanh Hoa Power Joint Stock Company Subsidiary

Binh Dinh Power Joint Stock Company Subsidiary

During the year, the Project entered into the following significant transactions with related

parties:2017 2016VND VND

Purchase of services

Central Electrical Testing Company Limited 3,539,017,273 18,477,773,810

Quang Binh Power Company 3,441,296,200 -

Quang Tri Power Company 1,354,549,533 -

Quang Nam Power Company 1,621,927,408 -

Phu Yen Power Company 342,134,607 -

Khanh Hoa Power Joint Stock Company - 1,830,665,416

Central Grid Company - 1,527,810,743

Central Load Dispatch Centre - 1,027,322,885

Central Power Engineering Consulting Company Limited - 268,579,50813

CENTRAL POWER CORPORATIONDistribution Efficiency ProjectFinancing Agreement No. Cr. 5156-VN Financial statementsGrant Agreement No. TF013456-VN For the year ended 31 December 2017


Significant related party balances as at the balance sheet date were as follows:

31/12/2017 31/12/2016VND VND

Payables to suppliers

Dak Lak Power Company 125,578,966 -

Dak Nong Power Company 69,169,000 -

Quang Binh Power Company 16,049,308 -

Quang Nam Power Company 160,828,049 -

Quang Ngai Power Company 3,941,398,000 -

Quang Tri Power Company 10,196,148 -

Central Electrical Testing Company Limited - 4,745,615,395

Central Power Engineering Consulting Company Limited - 2,752,838,742

Khanh Hoa Power Joint Stock Company - 198,526,846

Binh Dinh Power Joint Stock Company - 21,962,605

31/12/2017 31/12/2016Advances to suppliers VND VND

Dak Lak Power Company 140,827,492 -

Dak Nong Power Company 34,098,344 -

Quang Binh Power Company 1,076,147,841 -

Quang Tri Power Company 310,249,083 -

Central Power Engineering Consulting Company 900,720,218 -

Limited

Central Electrical Testing Company Limited - 750,840,843

14. COMPARATIVE FIGURES

Comparative figures are figures of the Project's audited financial statements for year ended31 December 2016.

Vu Thi Kim Thoa Ho Thang Thu Tan inih NhanPreparer Chief Accountant Chief Executive Officer

27 June 2018

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&REPORT or xNoEPENoENT AUoITORS ON %&INTERNAL coNTROL

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Deloitte Vietnam Company Ltd.15thFloor, Vinaconex Tower,D e lo witte 34 Lang Ha Street, Lang Ha Ward,Dong Da District, Hanoi, VietnamTel :+84 24 6288 3568Fax:+84 24 6288 5678Website: www.deloitte.com/vn

REPORT OF INDEPENDENT AUDITORS ON INTERNAL CONTROL

To: The Chaimarn and Executive Management of Central Power Corporation

We have audited, in accordance with International Standards on Auditing, the financial statementsof Distribution Efficiency Project - Financing Agreement No. Cr. 5156-VN and Grant Agreement No.TF013456-VN - Portion implemented by Central Power Corporation (the "Project") for the yearended 31 December 2017 and issued the independent auditors' report thereon dated 27 June 2018expressing an unmodified opinion on those financial statements.

In connection with our audit of the Project's financial statements, we also examined theeffectiveness of internal control over compliance with requirements that could have a direct andmaterial financial effect on the financial statements as well as of internal control over financialreporting.

As stated in the Statement of the Executive Management on page 2, the Executive Management isresponsible for designing and maintaining effective internal control over compliance withrequirements that could have a direct and material financial effect on the financial statements aswell as over financial reporting for the purpose of properly preparing and presenting the financialstatements so as to minimise errors and frauds; and take responsibility for its assertions as to theeffectiveness of such internal control, Our responsibility is to express an opinion on theeffectiveness of internal control over compliance with requirements that could have a direct andmaterial financial effect on the financial statements as well as internal control over financialreporting based on our examination.

Our examination was conducted in accordance with International Standard on AssuranceEngagements (ISAE) 3000. That standard requires that we comply with ethical requirements andplan and perform our procedures to obtain reasonable assurance about whether, in all materialrespects, the Executive Management has maintained effective internal control over compliancewith the requirements that could have a direct and material financial effect on the financialstatements as well as internal control over financial reporting.

Our examination included obtaining an understanding of internal control over compliance withrequirements that could have a direct and material financial effect on the financial statements aswell as of internal control over financial reporting, testing, and evaluating the design and operatingeffectiveness of the internal control, and performing such other procedures as we considerednecessary in the circumstances to obtain sufficient appropriate evidence on which to base ouropinion. Because of inherent limitations of internal control over financial reporting, including thepossibility of collusion or improper management override of controls, material misstatements dueto error or fraud may occur and not to be detected. Also, projections of any evaluation of theeffectiveness of the internal control over financial reporting to future periods are subject to the riskthat controls may become inadequate because of changes in conditions, or that the degree ofcompliance with the policies or procedures may deteriorate.

We believe that the evidence we have obtained is sufficient and appropriate to provide a basis forour opinion.

In our opinion, the Executive Management has maintained, in all material respects, effectiveinternal control over compliance with requirements that could have a direct and material financial

effect on the Project's financial statements as well as over financial repo ing for the year ended 31December 2017.

fTran Thi Th'" goc Le Anh Son

Deputy General Director Auditor

Audit Practising Registration Certificate Audit Practising Registration Certificate

No. 0031-2018-001-1 No. 1961-2018-001-1DELOITTE VIETNAM COMPANY LIMITED27 June 2018Hanoi, S.R. Vietnam

Deloitte refers to one or more of Deloitte Touche Tohmatsu Ltd., a UK private company limited by guarantee("DTTL"), its network of member firms, and their related entities. DTTL and each of its member firms are legallyseparate and independent entities. DTTL (also referred to as "Deloitte Global") does not provide services to clients.Please see www.deloitte.com/about for a more detailed description of DTTL and its member firms.

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Deloitte Vietnam Company Ltd.

15thFloor, Vinaconex Tower,D e lo itte 34 Lang Ha Streetf Lang Ha Ward,

Deng Da District, Hanoi, Vietnam

Tel :+84 24 6288 3568Fax:+84 24 6288 5678Website: www.deloitte.com/vn

INDEPENDENT ASSURANCE REPORT ON COMPLIANCE

To: The Chairman and Executive Management of Central Power Corporation

We have audited, in accordance with International Standards on Auditing, the financial statements

of the Distribution Efficiency Project - Financing Agreement No. Cr. 5156-VN and Grant Agreement

No. TF013456-VN - Portion implemented by Central Power Corporation (the "Project") for the year

ended 31 December 2017 and issued the independent auditors' report thereon dated 27 June 2018

expressing an unmodified opinion on those financial statements.

In connection with the audit of the financial statements, we also performed procedures on the

Project's compliance with Financing Agreement No. Cr. 5156-VN, Grant Agreement No. TF013456-

VN, laws and regulations that have a direct and material financial effect on the Project's financial

statements for the year ended 31 December 2017 (the "requirements").

The Executive Management is responsible for complying with Financing Agreement No. Cr. 5156-

VN, Grant Agreement No. TF013456-VN, laws and regulations applicable to the Project. Our

responsibility is to express an opinion on the Project's compliance with the requirements based on

our procedures. We limited our tests of compliance to the requirements, and we did not test

compliance with all laws and regulations applicable to the Project.

We performed our work in accordance with International Standard on Assurance Engagements

(ISAE) 3000. That standard requires that we comply with ethical requirements and plan and

perform our procedures to obtain reasonable assurance about whether, in all material respects,

the Project has complied with the requirements.

An assurance engagement to report on the compliance with the requirements at the Project

involves performing procedures to obtain evidence about whether the Project's activities are free

of material noncompliance with the requirements, including obtaining an understanding of the

internal control relevant to the Project's compliance with the requirements. The procedures

selected depend on the auditors'judgment, including the assessment of risks that the Project does

not comply with the requirements and whether such noncompliance could have a direct and

material financial effect on the Project's financial statements. Our procedures included testing the

compliance with the requirements that we consider necessary to provide reasonable assurance

that the requirements are complied by the Project.

We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for

our opinion.

In our opinion, the Project has complied, in all material respects, with Financing Agreement No. Cr.

5156-VN, Grant Agreement No. TF013456-VN, laws and regulations that could have a direct and

material financial effect on the Project's financial statements for the year ended 31 December

2017.

-4&

J

Tran Thi Thuy Ngoc Le Anh Son

Deputy General Director Auditor

Audit Practising Registration Certificate Audit Practising Registration Certificate

No. 0031-2018-001-1 No. 1961-2018-001-1

DELOITTE VIETNAM COMPANY LIMITED

27 June 2018

Hanoi, S.R. Vietnam

Deloitte refers to one or more of Deloitte Touche Tohmatsu Ltd., a UK private company limited by guarantee

("DTTL"), its network of member firms, and their related entities. DTTL and each of its member firms are legally

separate and independent entities. DTTL (also referred to as "Deloitte Global") does not provide services to clients.

Please see www.deloitte.com/about for a more detailed description of DTTL and its member firms.

16

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